Zenith Pet Foods
Marketing Management
ZENITH PET FOODS, INC. Synopsis The opportunity for Zenith Pet Foods to pursue a market development strategy for Show Circuit Frozen Dog Dinner is described in this case. Food brokers had approached Zenith Pet Foods about the possibility of entering the household dog food market in Boston. They had heard of a similar product being sold in selected pet stores in the southwestern United States and believed that potential existed in selling Show Circuit through supermarkets. The company has been successful in selling Show Circuit to the kennel market and contracted a consulting firm to develop a market entry program for introducing the product on a limited basis through supermarkets to the household dog food market in the Boston metropolitan area, The apparent decision facing the company is to accept, reject, or modify the proposed introductory marketing program. An implicit question is whether the household dog food market represents an opportunity for the company.
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Marketing Management
1.
How would you describe the household dog food market?
1. Dog food sales in the United States total $7.0 billion at manufacturer’s prices. Nevertheless, fewer than one-half of dogs are regularly fed prepared dog food. About 36 percent of total dog food sales are made in supermarkets. The remaining 64 percent is sold through pet superstores, discount and mass merchandisers, warehouse clubs, pet stores, and veterinarians. These percentages also apply to the Boston market. There are about 50 dog food manufacturers and 350 dog food brands sold in the U.S. However, five firms [Ralston Purina, Kal Kan Foods, Nestle USA, Heinz, and Nabisco] capture 83 percent of dog food sales. The household dog food industry consists of four categories of food. These categories and the percent of total dog food sales of each are shown below:
CATEGORY PERCENT OF DOG FOOD SALES
2.
3.
4.
Dry Dog Food Wet Dog Food Dog Biscuits/Treats Semi-Moist
ZENITH PET FOODS, INC. Synopsis The opportunity for Zenith Pet Foods to pursue a market development strategy for Show Circuit Frozen Dog Dinner is described in this case. Food brokers had approached Zenith Pet Foods about the possibility of entering the household dog food market in Boston. They had heard of a similar product being sold in selected pet stores in the southwestern United States and believed that potential existed in selling Show Circuit through supermarkets. The company has been successful in selling Show Circuit to the kennel market and contracted a consulting firm to develop a market entry program for introducing the product on a limited basis through supermarkets to the household dog food market in the Boston metropolitan area, The apparent decision facing the company is to accept, reject, or modify the proposed introductory marketing program. An implicit question is whether the household dog food market represents an opportunity for the company.
Page: 1 of 13
Marketing Management
1.
How would you describe the household dog food market?
1. Dog food sales in the United States total $7.0 billion at manufacturer’s prices. Nevertheless, fewer than one-half of dogs are regularly fed prepared dog food. About 36 percent of total dog food sales are made in supermarkets. The remaining 64 percent is sold through pet superstores, discount and mass merchandisers, warehouse clubs, pet stores, and veterinarians. These percentages also apply to the Boston market. There are about 50 dog food manufacturers and 350 dog food brands sold in the U.S. However, five firms [Ralston Purina, Kal Kan Foods, Nestle USA, Heinz, and Nabisco] capture 83 percent of dog food sales. The household dog food industry consists of four categories of food. These categories and the percent of total dog food sales of each are shown below:
CATEGORY PERCENT OF DOG FOOD SALES
2.
3.
4.
Dry Dog Food Wet Dog Food Dog Biscuits/Treats Semi-Moist