Abstract
People in the world are keen to involve pets in their lives, especially in the developed countries. People having particular lifestyle and standard of living are eager to have pets like dogs to maintain their standards in order to compete in the society up to a certain level. The dog food industry has grown rapidly in the last couple of years around the globe. There is tremendous competition among the suppliers of the dog food industry. The top five players operating at a global level in the industry are Nestle, Mars, Procter and Gamble, Del Monte and Colgate.
Background of the Industry
During the last decade, dogs were the most famous pets, especially in the year 2004. There were about more than 200 million dogs at global level and approximately 72 million dogs in the United States. People in the United States care and give importance to the dogs a lot, as compared to any other animal. 37.2% of the dog lived in the U.S households, and the figure is rapidly increasing as well. Several factors presently prejudice the American pet food market; some of them are similar in the context of affecting food trends. The United States has a major pet food market and a noticeable pet population as well. The pet food suppliers have a major interest in the U.S. Dog food market. The dog food market is a growing industry for the suppliers in the United States.
There are various kinds of breeds of dogs, with different size, temperament and stature. The American Kennel Club identified that there were more than 150 different breeds in the region. Mostly dogs in the United States were consisting of mixed breeds. The Chihuahua has been the smallest dog with a weight just under three pounds if grown at consideration. The Irish Wolfhound was the tallest dog having more than three feet; the heaviest dog among all was an English Mastiff, which has weight around more than 300 pounds. In the United States in 2004, there were about 43 million dog owners in their households. Mostly in these households, had just one dog. The average number of dogs per owning household was 1.7%. The female also consist a major portion of owner households, i.e. 75%.
Problem Statement
In given case it has to find out, which strategy would be the best option to grow in the crushing business. The basic theme of this case is to examine those regular challenges which are being faced during the process of business establishment strategies such as business growth, advertising and cause marketing are the basic road map for such challenges. The problems in a given case relate to marketing strategy, advertising, fast moving pet food and branding of established businesses. The brand manager for dog food manufacturer Pedigree Julie Smith, has to determine which strategic option is best the choice to pursue brand building and to focus on growth strategy. Unfortunately, Smith had no big innovations to leverage in 2005 and 2006. Although the Mars research and development team was actively developing a line of healthier products that would match the Beneful formulations, it would be at least another year until they were ready for launch.
Analysis
SWOT Analysis
Strengths:
Now days purchasing dog food are as easy as we are going to order a pizza, through internet or telephone anyone easily order dog food, it makes the life of dog owner easy saved their time and money both. This is the clear evidence that there is potential growth in Pet food industry, especially in countries like the United States, there are approximately 500 pet stores in the US such as Petco, Pet store, Pet Smart, according to a survey of Alta Vista.com, industry growth rate is 4% to 7% in the year according to George Fahey, an animal scientist in the University of Illinois states, but the growth of the other animal market is going downward. The US pet market is an attractive market for the producers would they want to supply pet foods to US and Canadian market, obviously this is just because as this market is showing potential signs of growth, as everyday people of US are willing to spend more money on pets.
According to a report of The American Pet Products Manufacturers Association (APPMA) it is estimated that in 2002 on average Americans spending on pet foods, veterinary and other services for their pets approximately $29.5 billion. The estimated pet food and supplies industry growth for the year 2007 is 19% with an annual increase of 3%, these figures are based on a survey of APPMA.
Opportunities:
Presently in the US more than 70% dogs die because of heart attack, the reason behind this is overweight. It is best opportunity for the Pet Food firm that they introduce healthy food with different flavors such as organic ................
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