Gill Zenith pet Foods, Inc Zenith Pet Foods is a major distributor of dog food for show-dog kennels in the US. They are a unique distributor in the way that their food is primarily for show dogs known as Show Circuit. The food helps improve the quality of the dogs coats and the Show Circuit products are federally inspected which forces Zenith Pet Foods to meet specific requirements and regulations. Fresh meat constitutes 85% of Show Circuit’s product volume and cereal accounts for the remaining 15%.
Market Potential Despite expected sales being $7 billion this year, less than half the dogs in the US are regularly fed prepared dog food which means this industry is far from hitting its highest potential. This is good news for a company like Zenith Pet Foods, which only really sells to dogs competing in dog shows. There is a lot of market potential and also there are critical decisions to be made for this company at the same time.
There have been four trends indicated about dog owners in the US that contribute to the optimism around market potential in the dog food industry. These include an increase in the household dog population in the IIS due to ownership and protection, an increase in nonviolence foods in households which limit dogs’ intake on foods, an amount of $20 billion spent collectively by Americans every year on their dogs, and an increase in premium dog food trends.
Higher quality dog foods have soared in prices and sales along with the increase in dog ownership which is attractive news for Zenith Pet Foods. Supermarket distribution consists of the largest retail channel for dog food. They dispense 36% of all dog food sold in the IIS while the other 64% of dog food is sold by mass merchandisers such as Walter, Petcock, Pederast, and Veterinarians. The goal of Zenith Pet Foods is to promote their high quality product that is sold at dog shows and to eventually sell large quantities to supermarkets.
Show Circuit is one of the costliest dog food products but also the highest quality so it is important to promote their well-earned reputation so far and make the public aware. It is crucial for customers to learn what the packaging looks like and also directing them to the frozen food sections of supermarkets. Competition The dog food market is a highly competitive industry. The largest five companies include Procter, Gamble, Mars and Nestle who own up on 75% of he market.
Observing and utilizing trends in human foods such as intellectuals and convenience factors, the competitors long history Of producing well-known brands such as Pedigree and Dog Chow will produce competition in this market for Zenith pet foods. The household pet food market is a huge valuTABLE target market for Zenith pet foods as it shows very steady growth rates in recent years as well as having a very promising future. However, Zenith will need an efficient and effective marketing strategy for placing Show Circuit successfully in this highly competitive market.
SOOT Analysis For Zenith pet Foods to expand outside their current market, they must build on their strengths, eliminate their weaknesses, seek opportunity, and avoid threats. A SOOT analysis enTABLEs Zenith to look at its big marketing picture and find a secure place among a market with already recognizTABLE brands. The SOOT analysis will identify the strengths, weaknesses, opportunity’s and threats both internally and externally that Zenith may face prior to transition into the household dog food market. Strengths: Zenith Pet Foods, Inc. Livers high quality dog food Freshness is a unique selling point within the dog food market Zenith has a story of blue ribbon winners Weakness: The high proposed costs could stretch promotional budget Not a familiar product Consumers must go to the freezer section to purchase Can only be sold in stores equipped to sell frozen products Zenith has no experience selling to the household market Kept frozen to maintain freshness Opportunities: Increase in the number of dog owners Increase popularity of high quality dog food Only dog food in frozen people food section Already an established group of pet owners buying frozen dog food in other markets The Boston area is ideal for launch relating to the high population Of go owners Threats: High competition from big name manufacturers Increase in production costs and ingredients Distribution Zenith has to define an effective distribution strategy. Traditional pet stores will not have a freezer in their premises. Supermarkets do have freezers but more than likely will not agree to sell this unknown product in their frozen food section. Therefore, the recommendation is to use the Internet as a distribution channel.
Additionally, Zenith could place its own refrigerators in pet stores, reducing the risk for the stoneware and therefore, increasing acceptance of Show Circuit among stoneware. Buying Process So far, dog foods fall into the four categories Of Dry, Wet, Semiotic, and Treats. Dry dog food consists of 67% of total share of dog food while Treats are the closest behind at 18% footfall share of dog food. Introducing Show Circuit’s frozen dog foods will be somewhat concerning as initially there may be a lack of appeal for frozen as opposed to canned. This can be seen as an opportunity as well because it brings up advertising to promote this new product.
Decision Zenith Pet Foods has the opportunity to be the first company selling a omelet frozen food product in Boston supermarkets and we feel that they should take on Exhibit 3 and the Media Plan. Dog food in general is already heavily advertised so the general strategy based off of Exhibit 3 is to create awareness of their new brand, carry out distribution through supermarkets, use coupon redemption to motivate consumers, and also further television to create an emotional impact. This will cost less money than targeting certain age groups and geographic locations as described in Exhibit 2 and also the use of newspaper/magazine coupons will benefit the consumer’s motivation to buy.
