Breeder's Own Pet Food Case Study

The Problem(s):

Should Breeder's Own Pet Food accept the proposal as written by Marketing Momentum Unlimited?

Recommendation(s):

Breeder's Own Pet Food should accept the proposal from MMU, and proceed with selling the Breeder's Mix dog food in supermarkets. The decision was made by these relevant decision factors.

Market Opportunity: This is a new market. Regardless if there could be a small loss in the first year, the dog food market is rapidly growing, as shown by the case. This is their opportunity to take a leadership position in said new market. The current market is divided into the three primary categories; dry food, canned food, and treats. The frozen food that Breeder’s Own is getting into only has 1% of the market share, but that market has experienced 133% growth over the past two years. There are a limited number of people in this market, and this market can be expanded to take some of the market share from the three primary categories. This is a prime opportunity to take a position as a premium brand. Not directly related to Breeder’s Own, but the organic dog food has grown by 64% as well. This isn’t directly in their market as their food isn’t organic, but it shows that the trend for moving towards dog owners looking for healthier foods for their dogs is increasing.

Product Positioning: The case study shows that Breeder’s Mix compares favorably to both dry and canned foods. However, on average canned food has a better price potential than dry food (See Table INSERT HERE). The table shows the price per ounce on every food, including the similar organic and premium food sold in other areas. So, I chose priced based on that. I went with a final sales price of $60 per case, or $0.23 per ounce cost after all margins. This puts it above the all of the dry food costs, and most of the lower end canned food. This puts it in a unique spot of being premium, yet being an alternative to canned food. This is also lower than treats, but treats are a...