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Conclusion for pet food industry
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To the Marketing Manager
Introduction
The pet food market has experienced steady growth for years and
despite a slight decline in pet ownership, pet food sales have
increased. This is especially true for cat food sales, which reflects
the fact that cats are outpacing dogs slowly but steady.
As the trend is going towards pets being treated as a part of the
family, they deserve food that is equal in the way to human dishes.
These and other factors are the foundation of our report on entering
the promising cat food market.
Main
The current cat food market is dominated by 2 multinational players,
namely Mars (Masterfoods) with a share of 40% of the market and Nestlè
(Friskies UK) with 41 %. (Mintel, 2002). As these firms have
established their position on a solid basis, it is recommended to
avoid direct competition with these brands. Therefore a strategy based
on pure specialisation seems to be the best way to enter the market,
therefore introducing a niche product.
We would suggest entering with a highly-specialised, super-premium
product for the cat food market, as cats are generally fussy eaters
and their owners are willing to spend a great amount of money in order
to satisfy their pet’s needs. (Keynote, 2003)
Recent statistics have revealed that the trend is going towards
focusing on health issues and functionality. The product should
include a certain amount of vitamins and minerals, as well as special
medical ingredients to strengthen the cat’s immune system. Furthermore
the product should contain purely of organic ingredients. (PFMA)
Concerning the product design, there’s recently the trend of
‘humanisation’ even when it comes to the recipe. Culinary choices
should be made available to the consumer, such as pasta and rice
dishes and consideration should be taken to suit different
expectations of pet owners living in different countries, thus having
a different attitude due to their culture.
Additionally different age types should be targeted separately, as
young kittens have different needs and desires than older cats.
Kittens may need less food, resulting in smaller portions, whereas old
cats need special nutrition to stay healthy and live longer. This
should be a further element of our specialisation process. (Mars,
2003)
Great emphasis has been placed on the convenience of the product
package and design, for example single serve trays have proven to be
widely accepted amongst pet owners, as they are easy to store and can
provide the right amount for one meal. Re-sealable package, such as
foil sachets, are also very popular, as they provide the owner with
control and keeps the freshness of the food.
In order to underline the natural and organic ingredients of the
... look out for high profile contacts and good image building activities especially due to the on going outsourcing concern. As community theatre boards include executive level staff these consulting companies could get high visibility and a sophisticated image by pairing up with something as ?cultured? as theatre. These companies can be requested by the boards of community theaters to sponsor the building and maintenance of the theatre websites in exchange for good PR and contacts.
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
A loyalty program is best seen by the consumer when benefits are clear, bringing more value than the costs of participation. A membership card could be a relationshi...
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
...rs since the reward is tangible. Since 80 percent of profit comes from a small percentage of customers, programs should be developed to retain them. Companies will use resources that aren’t available to the entire customer base to ensure they are retaining their most valuable customers and offering incentives to encourage others to move up.
Universal financial hypotheses refer to land, area, regular assets, work and populace as determinants in focal point. The Diamond Model utilizes a more proactive approach as a part of recognizing elements, for example the firm method, structure and contention, demand conditions for items, related supporting businesses, and factor conditions. The Diamond Model shows that nations can get focused paying little respect to whether they have common variable gifts, for example, area and regular assets. In the Diamond Model, the part of government is to energize and push associations and organizations to a more intense level, subsequently expanding execution and eventually the aggregate joined together profit.
Net Promoter Score is becoming an increasingly popular tool used by many companies who try to assess customer loyalty. The Net Promoter Score is based from a model developed by Frederick Reichheld in the book, “The Ultimate Question” (Beyond 2). The system helps measure customer loyalty between an organization and a consumer. The Net Promoter score was designed on an 11-point scale from (0 to 10) and it separates the customers into promoters, passives and detractors (beyond 2). Promoters are people who score 9’s and 10’s on the Net Promoter Score scale. The passives are the people who are 7’s and 8’s on the Net Promoter Score scale. The detractors are the people that are from 0 to 6 on the promoter score scale. One of the main goals of the Net Promoter Score scale is to recognize what each of the companies customers are defined as and to try and convert the detractors and passives to Promoters. The promoters are people who feel their lives are being enriched by their relationship with the company. They are very loyal to the company and have multiple purchases with the company. They tell many different people about the company to try and influence others to shop or use the company. They offer good feedback on how to stay successful or even become more successful in the future. The passive customers are people who make few recommendations to others about the company. Bring little energy to the company and are likely to go to a competitor if they offer a great discount on a product. The detractors are customers who feel that their lives are not enriched by shopping or affiliating with that particular business (Freimark 21). The detractors become dissatisfied with the company or experiences they have had with the company. They ta...
Unilever’s Dove is part of the consumer goods company’s many brands which have historically lacked global identity amongst its many products. The lack of global identity resulted in issues such as diverse marketing standards, varied product development, and lack of brand recognition by consumers worldwide. Unilever’s solution to this problem was to group similar product lines under a few recognizable umbrella corporations. This initiative gave birth to the one of the most controversial marketing strategies in the history of business.
Today the retailing sector is one of the fastest growing sectors in the world. Retailers nowadays understand the importance of satisfying customer needs as essentially customers determine how successful an organisation will be. Retailers such as Tesco and Aldi today continually aim to provide Superior quality merchandise to customers whilst enforcing quality control thus this area could be said to be central to a retail company’s success. In addition retail firms are also constantly striving for the best quality customer service possible to gain a completive edge over rivals, customer loyalty and the quality of their customer service is at the forefront of the minds of some of the leading retailers. This is due the understanding that those factors play a large part in the success of retail companies as ultimately it all comes down to whether or not the customer is satisfied. What constitutes customer loyalty and what makes up loyalty has been a much debated topic of recent with no definitive answer. However customer loyalty could be seen as a continuity level of a customer related to a product that involves the relationship between an individual’s relative attitude and repeat patronage (Dick and Basu, 1994) within this essay I aim to identify how the quality of merchandise effects customer loyalty and how customer loyalty can be maximise. However I also aim to identify how organisations can provide the best quality customer service whilst making sure customers receive the best possible service.
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.
When I entered my sophomore year speech class, I went in assuming it would be the worst class of my life. The first assignment was an impromptu speech in which I had to sell an item in the room. Much to my shock, it went fantastically. I had so much fun with the speech and fell in love with selling stuff to people. Eventually I started working in retail and realized that marketing was the perfect career for me. After researching and learning about the career of a marketing manager, I knew it was the career I desired. A marketing manager’s goal is to create a desire in consumers for the product or service you are marketing. A few years have gone by since I discovered my love for business, and here I am now, pursuing that career.
Our aim is to save ourselves a few pennies on our shopping and the goal of the loyalty card is to reap the optimum financial benefit from us by using their armoury of data to keep us shopping with them without checking out their competitors’ prices.
According to Lovelock (2011), customer loyalty was defined as consumer's “willingness to continue patronizing a business over a long term, purchasing and using its goods and services on a repeated and preferably exclusive basis, and voluntarily recommending the firm's products to friends and associates” (Lee et al., 2011, pp. 3- 4). In other words, it represents irrational behavior as a result of “a deeply held commitment to repatronize a preferred product/ service consistently (Oliver, 1997, p. 392).
Putra, I. (2013). The effects of quality and service value on customer loyalty. Interdisciplinary Journal of Contemporary Research in Business, 5(5), 488-504. Retrieved from http://journal-archieves35.webs.com/488-504.pdf
Feature, Michael. "Chronic Sleep Deprivation and Health Effects." WebMD. WebMD, n.d. Web. 13 Mar. 2014. .