Tyler Pet Foods
I. SUMMARY
Tyler Pet Food Inc. is a major distributor of dog food for show-dog kennels in the United States. After some researches and discussions, Tyler Pet Foods (TPF) decided to enter into the household dog food market in the Boston, Massachusetts metropolitan area. TPF hired a consulting firm to help it promote and distribute its product. The programs included situational and competitive analysis, the problems and opportunities of the company, and creative strategies to promote its product.
II. INDUSTRY
The sales of dog food will total almost $5.6 billion this year, with $3.1 billion in sales coming from supermarket chains. The Boston area has 1.5% of the U.S. population, and 1.5% of the dog population. The dog food industry has been growing rapidly because of owners desire for companionship or need for protection. Dog owners are generally price sensitive, yet they spend more than $10 billion annually for veterinary fees and medications for dogs. Supermarkets make approximately 55% of all dog food sales. Typically, all pet foods are located in one area of the store, separate from human foods. The following graph shows the detailed market potential of Show Circuit dog food.
Category Share of Dog Food Total Sales of Dog Food Boston Market Potential Supermarket % Show Circuit Market Potential
Canned 23.7% $5.6 billion 1.5% 55% $10,949,400
Dry 58.6% $5.6 billion 1.5% 55% $27,073,200
Semimoist 2.2% $5.6 billion 1.5% 55% $1,016,400
Treats 15.5% $5.6 billion 1.5% 55% $7,161,000
III. COMPETITION
There are about 50 dog food manufacturers and 350 dog food brands in the United States. Ralston Purina, Kal-Kan, Heinz, Nestlé USA, and Nabisco, together capture 83% of all supermarket sales...
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...natives that TPF has with their marketing campaign. After looking at all the alternatives, I believe that TPF should continue with trying to market to supermarkets. The ground has already been broken with another product, so there should be less resistance than if TPF were pioneers. However, I believe that TPF should rethink some of their promotional techniques. They should not have commercials during late night television shows and should focus more earlier time slots for the commercials.
I believe that TPF should choose the $400,000 budget, with the $30,000 slotting fee, and try to get 8.36% of the market of canned dog food. I think that this is reasonable and more attainable than 12.6% of the market with the premium priced canned dog food with the $600,000 budget and $30,000 slotting fee.
Bibliography:
Case study from Marketing Text Book
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