Preview

First in Show Pet Food Case

Good Essays
Open Document
Open Document
653 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
First in Show Pet Food Case
BACKGROUND AND PROBLEM DEFINATION:
First in Show Pet Foods, Inc. is a major producer of dog food for show-dog kennels in the U.S, and is now a supplier of a high quality dog food for show dogs called Show Circuit. The situation facing First in Show Pet Foods currently is one of expansion. First in Show wants to break into the world of retail branded pet food. The company has to choose the best suitable Advertisement and Trade Strategy.
INDUSTRY AND MARKET ANALYSIS:
The dog foods are distributed through two major channels, supermarket and mass merchandiser, in Boston area (See Exhibit A); each account for 36% and 64% of the total market share separately. The introductory program targets the supermarket as its distribution channel due to the need for refrigeration. Under the channel, the market is divided into three major categories. Dry dog foods account for 23.4% of the total market share. In this category, five major competitors hold 68% of the market. The second category, canned dog foods, account for 5.4% of the total market share with four major competitor; they capitalize on 88% of the market. For the treats category, there are three major competitors. They control 73% of the market, which account for 7.2% of the total market. There are five major competitors in the market through the major three forms of dog foods in 2008. They are Nestle, Iams, Hill`s Pet Nutrition, MasterFoods USA, and DelMonte Foods, Inc. They account for 75 percent of U.S. dog food sales in 2008.

STRATEGY ALTERNATIVE: Based on the analysis, there are two alternatives for the First in Show Pet Foods- Introduce the program with a budget of $500,000, or introduce the program with a budget of $700,000.
Alternative 1: If the company takes the introductory program with a budget of $500,000, First in Show has to sell 381,295 cases of Show Circuit to achieve the break-even. At the 15% of gross margin per unit, the break-even sales volume for the company is $4,859,137. That is to say,

You May Also Find These Documents Helpful

  • Good Essays

    b. What is the dollar sales volume the firm must achieve in order to reach the break-even point?…

    • 687 Words
    • 3 Pages
    Good Essays
  • Good Essays

    According to Martinez and Kaufman’s “Twenty Years of Competition Reshape the U.S. Food Marketing System,” the food market is becoming increasingly competitive. Over the last 20 years there have been tremendous changes in the way food is bought in the retail market. Consumers are looking for value and differentiation and the retailers are working hard to follow.…

    • 559 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ms6000 Midterm

    • 909 Words
    • 4 Pages

    The break-even point is the volume that equates total revenue with total cost and profit is zero. Student Response True Score: 2/2 Value 100% Correct Answer True…

    • 909 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    First in Show Pet Foods

    • 1350 Words
    • 6 Pages

    The dog food market is an enormous $10 billion market. Positioning within this market will require some careful consideration of the market dynamics. Due…

    • 1350 Words
    • 6 Pages
    Good Essays
  • Better Essays

    This product will be easily incorporated in our strategy as it will stand on the current brand name. Future plans will also include a lines of cat food.…

    • 888 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Swot Analysis Of Pawganic

    • 1068 Words
    • 5 Pages

    Customers tend to return to a place where they were treated justly. New products that have financial guarantee can gain consumer loyalty for future purchases. The ability to sell only from our flagship stores and online is not a complete loss. The large advertisement budget reaps opportunity to push sales via coupons, pet store reward cards (if applicable), price matching, and instore sales for the Pawganic line will entice consumers. Developing a clientele amongst similar competitor products as well as highly advertised inexpensive products is the key…

    • 1068 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Capsim Approach

    • 443 Words
    • 2 Pages

    I predict their profits mostly to come from the Traditional segment selling 2,700 units at $26.50 with a margin of 32%, the profit would be $22,896,000 in this segment. The may make around $12,000,000 in the Low end market. This gives them a profit of about $34,896,000 in round 3. Their low end sales at $19.00 with 2,100 units sold at 30% margin…

    • 443 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Bus 630 Week 1 Discussion

    • 1023 Words
    • 5 Pages

    5. Determine the necessary sales in unit and dollars to break-even or attain desired profit using the break-even formula.…

    • 1023 Words
    • 5 Pages
    Good Essays
  • Good Essays

    accounting 460

    • 1241 Words
    • 5 Pages

    8.sale: 100,000,variable cost: 70,000, fix cost: 50,000,will reach its break-even point if sales are increase by 20,000. F 50,000/0.3=166,666 for breakeven…

    • 1241 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Show Circuit Dog Food

    • 621 Words
    • 3 Pages

    Many adults, single or married, that are between the ages of 21 and 54 consider their pet to be a part of the family. This is why Show Circuit Dog Food's target market will consist of this age group.…

    • 621 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Case 2 Breeder s Own

    • 1234 Words
    • 4 Pages

    Breeder’s Own Pet Food, Inc. is currently missing out on potential revenues from retail sales because they have not entered that market. Sales of dog food will total about $14 billion in 2011 at manufactures’ prices. There is a huge market and growth opportunity that they are missing out on. They need to make the public aware of the Breeder’s Mix brand name, what the packaging looks like, and the fact that Breeder’s Mix is a high-quality dog food. As well as direct dog owners to shop for dog food in the frozen-food section of supermarkets. They will have to overcome some key challenges such as overcoming potential objections to frozen dog food, lack of appeal of frozen food, pricing, and introducing a new food to a new market for their company.…

    • 1234 Words
    • 4 Pages
    Good Essays
  • Good Essays

    breeders mix

    • 434 Words
    • 2 Pages

    Advertising – Advertising will be a key component to the successful introduction of Breeder’s Mix. Breeder’s Own should focus on the benefits of the Breeder’s Mix Dog Food in comparison to other brands. It is also critical that the advertisements clearly show that Breeder’s Mix is found in the freezer section. Initial strategies should include focusing on product and brand identification. The media plan should include advertising in local newspapers and magazines such as Dog Fancy along with coupon promotions. The television ads should be adjusted to reach the target audience. Rather than advertising during late night timeslots such as during the Late Show with David Letterman television advertisements should run during family programming evening news and channels such as HGTV and Animal Planet to reach the target audience. Online advertising is also a vital medium for Breeder’s Own to consider. Internet campaigns have the potential to reach a wider market than television since many people change the…

    • 434 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The Greek Cosmobob

    • 571 Words
    • 2 Pages

    The food industry is an area of business that many people and corporations often find success. Food plays a major part in human survival because it is one of the basic necessity needs, to survive, you must eat. In the food industry, there is a variety of food chains with different menus and different types of food. However, to be highly successful and sustain durability and consistency in the food industry, you have to have a product that is unique and that people love. A product that is exclusive in the beginning making the demand to rise. It has to be something that people find delicious and continue to buy.…

    • 571 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Bus 630 Week 2 Assignment

    • 404 Words
    • 2 Pages

    * If 12,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income or loss? The company is considering paying the store manager of Shop 48 an incentive commission of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales?…

    • 404 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Husky PPT

    • 303 Words
    • 2 Pages

    Husky’s Strategy : husky entered in to PET packaging nice in plastic item market further…

    • 303 Words
    • 2 Pages
    Satisfactory Essays