Show Circuit Pet Food Case Analysis
1. What is the total and category dog food supermarket sales potential in Boston at manufacturing prices?
| (1) | (2) | (3)=(1) x (2) | (4) | (5)=(3) x (4) | Dog Food Category | Share of Total Dog Food | % of Dogs in Boston Area | Estimated Dog Food Category Sales | Super Market % | Estimated Dog Food Super Market Sales | Dry | 65% x $10 billion= $6.5 billion | 1.2% | $78 million | 36% | $28,080,000 | Canned | 15% x $10 billion= $1.5 billion | 1.2% | $18 million | 36% | $6,480,000 | Treats | 20% x $10 billion= $2 billion | 1.2% | $24 million | 36% | $8,640,000 | Total | $10 Billion | | | | | | | Total Dog Food Category Sales Potential in Boston Area | $120 million | Total Dog Food Super Market Sales Potential | $43,200,000 |
2. Which dog food category should Show Circuit target and why?
According to the information above, the dog food category that Show Circuit should target is the Dry Food Category because the highest sales potential in the Boston Area and in the super markets. Also, the characteristics of dry dog food are more appealing.
Characteristics of dry dog food are as follow: * Produced as flakes, small pellets, or large chunks * Contains 15% moisture and 85% solids * Chewy, usually well rounded, and more economical than canned foods 3. Identify the various competitor prices on your target market and calculate the unit contribution at the case and tub level.
| Per Case | Per Tub | Manufacturing (First In Show Pet Foods) | 6.16 (6.62-.46) | 6.16/12=.51 | Wholesaler (Food Broker) | 6.62 x .07=.46; | .46/12=.038 | Retailer (Super Markets) | 6.62 (8.49 x .78) | 6.62/12=.55 | Consumer | 8.49 | 8.49/12=.71 | Contribution per case= 6.16-7.87= -1.71 Contribution per tub= -1.71/12= -.14
| Per Case | Per Tub | Manufacturing (First In Show Pet Foods) | 6.51 (7.01-.50) | 6.51/12=.54 | Wholesaler (Food Broker) | 7.01 x .07=.50; | .50/12=.042 | Retailer (Super Markets) | 7.01 (8.99 x
| (1) | (2) | (3)=(1) x (2) | (4) | (5)=(3) x (4) | Dog Food Category | Share of Total Dog Food | % of Dogs in Boston Area | Estimated Dog Food Category Sales | Super Market % | Estimated Dog Food Super Market Sales | Dry | 65% x $10 billion= $6.5 billion | 1.2% | $78 million | 36% | $28,080,000 | Canned | 15% x $10 billion= $1.5 billion | 1.2% | $18 million | 36% | $6,480,000 | Treats | 20% x $10 billion= $2 billion | 1.2% | $24 million | 36% | $8,640,000 | Total | $10 Billion | | | | | | | Total Dog Food Category Sales Potential in Boston Area | $120 million | Total Dog Food Super Market Sales Potential | $43,200,000 |
2. Which dog food category should Show Circuit target and why?
According to the information above, the dog food category that Show Circuit should target is the Dry Food Category because the highest sales potential in the Boston Area and in the super markets. Also, the characteristics of dry dog food are more appealing.
Characteristics of dry dog food are as follow: * Produced as flakes, small pellets, or large chunks * Contains 15% moisture and 85% solids * Chewy, usually well rounded, and more economical than canned foods 3. Identify the various competitor prices on your target market and calculate the unit contribution at the case and tub level.
| Per Case | Per Tub | Manufacturing (First In Show Pet Foods) | 6.16 (6.62-.46) | 6.16/12=.51 | Wholesaler (Food Broker) | 6.62 x .07=.46; | .46/12=.038 | Retailer (Super Markets) | 6.62 (8.49 x .78) | 6.62/12=.55 | Consumer | 8.49 | 8.49/12=.71 | Contribution per case= 6.16-7.87= -1.71 Contribution per tub= -1.71/12= -.14
| Per Case | Per Tub | Manufacturing (First In Show Pet Foods) | 6.51 (7.01-.50) | 6.51/12=.54 | Wholesaler (Food Broker) | 7.01 x .07=.50; | .50/12=.042 | Retailer (Super Markets) | 7.01 (8.99 x