Problem: Breeder’s Own Pet Foods, Inc. is a major producer of dog food for show dog kennels in the United States. Breeder’s Own Executives are trying to transition from the kennel market to the retail market with its Breeder’s Mix frozen Dog food. Breeder’s Own Pet Food Inc. executives must decide on a program budget of $500,000 or $700,000 for Breeder’s Mix frozen dog food. Strength •Strong brand Name in the kennel market •Dog food contains 85% of fresh meat and 15% of high quality fortified cereal Weaknesses
•No brand recognition in the retail market •Only 10% of dog owners buy refrigerated or frozen dog food on a regular basis •Breeder’s mix is one of the costliest dog foods to prepare Opportunities •15 % of dog owners are interested in buying frozen dog food •First to market frozen dog food in the Boston Metropolitan area Threats •Competition from bigger and more well known brands such as Nestle Purina, IAMS, and MasterFoods USA •Lack of appeal for frozen dog food Alternatives
Alternative Pro ConsCost $500,000 budget for advertisement Less cases and dollar amount to break even. Lower fix cost associated with advertisement. Not as much ad-time on television or in magazines. $500,000 $700,000 For advertisement More ad-time devoted to television and magazines. Higher fix cost devoted to advertisement. $700,000 Recommendation Frozen dog food account for 1% of all dog food sales in the United States with only 10% of dog owners who buy frozen dog food.
However there is an additional 15% percent who would buy frozen dog food if it were more readily available, bringing the total to 25%(Exhibit 5) because of this I recommend choosing the $700,000 advertisement plan. In the article it states that the percentages are the same across the Boston market, in this case 15% more Bostonians would be interested in frozen dog food if it were available and with the potential of going nation wide with Breeder’s Mix the $700,000 ad campaign should suffice.
The Business plan on Situation Analysis On Dr. Tim's Dog Food
Internal: What’s going on inside the company? -Momentum dog food created and directly distributed for mushers What are the company’s goals and objectives? * Increased distribution to retail stores, the Internet, and global distribution What boundaries have the company set? * Not many boundaries, other than concern for brand identity, and not wearing the company resources too thin What is my ...
