First in Show Pets

First in Show Pet Foods, Inc.

Situation Analysis

First in Show Pet Foods, Inc. (FSPF) would like to introduce their brand of frozen dog food, Show Circuit, to the general Boston, Massachusetts market. FSPF is known for its luxurious brand of dog foods, specifically for show dogs. This introduction would be a push to the mainstream market, as well as the frozen dog food segment.

The Market

The US dog population is 65 million. The Boston, Massachusetts dog population is 1.2% of US population (780,000 dogs). Total US sales of dog food annually is $10 billion, and 2% of sales is spent on the advertising budgets ($200 million). Top competitors that dominate 75% of the dog food industry include Nestle Purina Petcare, Hill’s Pet Nutrition, MasterFoods USA, and Del Monte Foods, Inc. They offer a variety of dog food types, prices, and packages.

Challenges

Perception and pricing would be the biggest challenges externally. The perception of frozen dog food is an ideology that would have to be introduced into the Boston, Massachusetts market. Frosty Paws, a frozen dog treat, is sold in some supermarkets in Boston. Some 15% of new products introduced to supermarkets each year are aimed at the freezer case, and 80% of these products fail. Image and Packaging will be key to the success of the Show Circuit. A creative strategy will have to be utilized that will ensure that the product and perception match.

A positive attribute to combat this challenge is brand recognition. Because FSPF is known for offering affluent dog foods, it might not come as a surprise to consumers that the company would introduce a frozen option for “consumers who want their dogs to eat like them.” If the company is successful at marketing this frozen dog food product, location in supermarkets and mass merchandisers (the leaders in dog food sales) is key. This means that the slotting allowance is extremely important. The case notes that $50,000 is suggested as...