First in Show Case Study

First in Show Pet Foods, Inc

Problem Statement

First in Show Pet Foods, Inc is examining whether to enter into the retail dog food market with its frozen dog food product- Show Circuit. Specifically the issues they need to determine are: (1) which market (dry, can, or organic) has the best potential for success in the Boston metropolitan area and (2) what amount of promotion is required

to introduce the product.

Background/Trends

The dog food industry can be considered a mature industry characterized by lower costs, dropping prices, lots of competition, and peaking sales with lower profits. However because almost half of dog owners don’t routinely use prepared dog food, the $10 billion industry has untapped potential and could return to the growth stage identified by increasing sales and profits, particularly for those companies that can differentiate their product to maintain or increase market share or as in the case of First in Show, Inc, introduce a new product that provide the needs, wants, and expectations of customers with the value they seek. The current market trends indicate profitable opportunities exist. Not only is dog ownership increasing and expected to continue growing, but dog owners assign their pets with human qualities and treat them like family members. And like most family members, pet owners spend a significant amount of money on their pets for vet visits, medicine, toys, clothing, and other items including pet food. Again because owners treat their pets like children, many are concerned about what their pets eat and as a result, there has been an increase in sales of premium dog foods and those considered all-natural, with no additives or preservatives, and vitamin and mineral enriched.

Opportunities/Challenges

First in Show is faced with several challenges including customer unfamiliarity with frozen dog food, questions pertaining to which market to target, positioning questions, and pricing concerns. However, they have...