Breeder’s Own Pet Food Inc. Case Study

Read the case study of Breeder’s Own Pet Food Inc. and learn about the dog food market, trends, SWOT analysis, and alternatives. Get insights into the company's objectives and visions.

Running head: BREEDER’S OWN PET FOOD INC 1
Breeder’s Own Pet Food Inc. Case Study
Student’s Name
Institution Affiliation
October 13, 2018

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Introduction
Over the years, Breeders Own Pet has been the chief producer of dog show circuits feeds
over the world. The main operational areas where the company has established its markets
include the metropolitan region, Massachusetts, Boston, and consequently the countrywide
marketing zones. The company has several objectives and visions that it ought to achieving as it
is venturing in the pet industry that exist vast number of competitors. Some of the objectives
include domination of the forth category and the introduction of the frozen dog feeds. Therefore,
the company introduced about 85% of national scrutinized frozen feed (uncooked meat), while
15% comprised of top quality prepared cereals sold in the neighboring supermarkets and shops
national wide. The company’s product will be the first to be aligned next to food targeted for
human consumption. Intermediaries who are operating within Breeder’s marketing mix consider
the company’s products as untouched since they are naturally made and of high quality which
suites every customers taste and preferences (Pulido Polo, 2018). For that reason, the company
annual value return on sales is targeted to be about 15%.
Problem Statement
The company main strategic objective is aiming at bringing in a brand new frozen dog
feed through the implementation of a premeditated promotional scheme, which will aid in
instigating the product awareness. Various issues involved in the process, in which the company
should chip in include resolving the retail control units, their main targets, the position of
purchasing their items, maximum budget allocated for the project initiation, and the techniques
used in promoting the frozen dog feed with the unclear knowledge of the product by its

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consumers. The Breeder’s Own Pet Foods, Inc. managers are taking into consideration of
launching brand new show circuit brand dog food within Boston although they should make a
decision whether they should accept or decline the anticipated marketing sketch presented by the
marketing momentum unlimited board.
Dog Food Market
U.S Market
It is projected that in 2020, the sales of food dogs for the Breeder’s Own Pet Foods Inc.
will rise to about $14 billion (Gagne, 2012). The stated value takes into account the number of
dogs that are fed and catered for daily. The gradual of this sector is reliant on the view or
awareness of the possession of dogs. In the US, there are an increasing number of breaded dogs
approximating to about 78.2 million in number. Based on the computational analysis shown
below it is deduced that the total expenses for dogs feed is approximately $179 per year.
Figure 1: Average dog spending per dog in a year.
On the other hand, as illustrated in table I below it is shown that the average sales of the
dog feed sin the supermarket approximates to about $5.04 billion (36%) with the mass
merchandisers constituting to about $8.96 (64%). Within the merchandiser’s, mass there are

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other accounts such that for independent stores and Internet retailers (6%), Veterinarians (6%),
feed stores (7%), Superstores (20%), and Wal-Mart which is (25%) as shown in table 2 below.
Table 1: Distribution of dog food sales in U.S market
Table 2: Dog food sales by Mass Merchandisers (U.S Market)
Boston Market
The dog’s market in Boston is relatively small compared to the one in the U.S since it
comprises of about 938,400 dogs in its markets. Generally, the overall sales of the number of
dogs feed sales in the Boston markets estimates to being about $168 million respectively. Just as
national market trends, Boston pursue the same inclination, which is relatively similar to that of
the US markets (Grewal & Levy, 2017). The computational formula of finding the totals sales of

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dog feeds in the Boston markets are should below together with the values of different markets
of Boston.
Figure 2: Total sales of dog food in Boston market
Table 3: Distribution of dog food sales in Boston market
Table 4: Dog food sales by Mass Merchandisers (Boston market)

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Four Major Trends within Dog Food Industry
Increasing Dog Ownership
Currently within the US there are an increasing number of dog owners with the current
number ranging to about 78.2 million which is projected to rise rapidly in the forthcoming years.
Pets as Family Members
In most families they consider their pets as a member of their family which makes them consign
them some human features which are a sign of love. According to research analysis it has been
found out that about 95% of individuals who own dogs hug them on a daily basis while 75% of
the owners call them mom and dad which is so companionate of them. Due to this reason most
individuals who harbor dogs in their homesteads utilize a maximum of $25 billion annually in
catering for, their furniture, accessories, clothing, medications, dog toys, and their dog vet bills
(Jia & Pathak, 2011).
Premium and Super Premium Dog Foods
The main reason, which has resulted to an increase in the prices of dog-related foodstuff,
is due to customer’s demanding for high quality dog foods, which has emanated different classes
of dog food brands, which premium and super premium food types sold in the marketplace
(Chiang et al., 2012).

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All Natural Dog Foods
Lately, in the markets most consumers have been demanding for an introduction of dog
feed which are rich in minerals, vitamins, no preservatives, and all natural which may meet their
tastes and preferences. Notwithstanding the fact that there has been a huge intensification of the
dog food industry, it has been discovered that not all dogs are given dog food. Therefore, it is
evident that the dog food industry has not achieved its purposed objectives and aims.
Frozen Dog Food Industry
Approximately the dog food stored in the refrigerators is about one percent which is also
estimated to be about 1% of America’s sales of dog feeds. Based on the 2008 and 2010 market
trends on frozen dog foods sales it was noticed that there was a considerate increase in the
demand of frozen dog food in the market. Scholars show that about 1/10 families who own dogs
always buy frozen dog feed which is about $7.82 million per family annually. Besides, study has
shown that about 15% of people owning dogs are engrossed in venturing in to the use of dog
feeds although they have not started using currently which is estimated to be about $11.73
million (Clemmitt, 2010). Consequently, it is validated that there is significant growth for the
demand of dog feed in this section.
Number of Firms
The number of firms is an essential factor since in the US the total numbers of dog food
producers are 50 while the dog food brands are about 350. However the primary firms that
account about 75% of America’s dog food sales are Del Monte foods, Master Foods USA, Nestle

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Purina Pet Care, Hill’s Pet Nutrition, and Iams. Due to the coverage of these 5 firms in the dog
food industry it creates stiff competition to other small firms like Breeder’s Own Pet Foods, Inc.
with their aim in creating awareness of their newly introduced product, the “Breeder’s mix”
which the consumers are not familiar with it yet (Pulido Polo, 2018).
Major Sections of Dog Food Market
There are four divisions in the dog-food market sector, which are Frozen foods, treats,
canned food, and the dry food.
1. The dry dog food
 This is the most profitable alternative for the owners.
 About 95% dogs are fed by their owners annually
 60% of American dog food mainly comes from the dry foods as shown in table 5 below
Table 5: Sales distribution of various sections in U.S market
 While Boston’s general market share is about $100.8 million (table 6)
Table 6: Sales distribution of various sections in Boston market

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2. Canned dog feed
 In the market the product is provided in complete and as a supplementary form
 Roughly 33% of people rearing dogs feed them with canned food (Polo et al., 2005)
 About $2.8 billion US sales is accounted for by canned products for the dogs as
shown in table 5
 On the other hand $33 million Boston sales is accounted for by the canned dog feeds
(table 6)
 Canned dog food is thus shown to be relatively high in terms of price compared to
treats and dry food
3. Treats
 Unpreferred to be consumed as a absolute dog food
 80% of dog owners give their pets this product
 In the US treats is reported to be about 20% ($2.8 million) of the dog feed which is
similar to the canned dog products (table 5)
 $33.6 million is accounted in Boston’s market sales (table 6)

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4. The use of refrigerated food
 It is estimated that almost 10%of people who have dogs always use refrigerated food for
the dogs
 According to research analysis the frozen feed comprises of about 1% of the total sales in
America
 While Boston countries constitutes about $1.68 million averagely
SWOT Analysis
Strength
 The use of excellent quality products
 Highly suggested by experts who own dogs
 Sold together with other people’s food in the supermarkets
 Comprises of not preservatives and additives in the dog foods
Weakness
 Expensive manufacturing process
 May require more freezer space
 Low demand on frozen dog food by the consumer
 Small scope for other prospective retailers

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Opportunities
 There has been a drastic increase between 2008 - 2010 which is about 133% of the
market value
 The accounted number of dog food should be meeting accordingly
 Increase in super premium and premium market shares
 There has been an increasing number of organic and natural dog foods
 High rise of dog possession in America
 Dogs becoming family members
 Prospecting to be the leader in the Boston markets
Threats
 The 5 chief manufacturers of dog food possess about 75% of the market value
 Rivals do much promotion
 Additionally people who have dog always are keen about the prices
 Unease of persuading the retailers for the provision of frozen dog feed
From a close look of the SWOT analysis presented above, it evident that there are several
occasions where the company should aim at capitalizing the dog food market thus attaining a
high trend in the market place (Vaněk, Mikoláš & Žváková, 2012). Additionally, based in the
frozen food market place it has been noted that there exists about 2 rivals which exhibits that
there is an increasing number of competitors in the marketplace. Insufficiency of the frozen dog
feed is a major threat for the nourishment of the firm success. Although, professionals have
shown that this dilemma is thought to be an asset during the marketing advertising process (Seth,

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2015). Due to minimal margins for all retailers of these items, most intermediaries always
encounter difficult moments so that most frozen dog food in the supermarkets can be sold to the
buyer at a lower rate. Therefore, this will increase the campaign process that directly explains the
business’s weaknesses and strengths (Gillin & Schwartzman, 2011).
Alternatives
The Breeder’s Own Pet Foods, Inc. comprises generally of three alternatives because it is
adjusting to various schemes, which are instituted in moving into the marketplace.
1. Alternative A – Compliance with a $500000 deal market proposal
2. Alternative B - Agreeing to a marketing proposal that is about $70000
Evaluating the Alternatives
In the process of going through the suitable alternatives, various priorities should be considered
such as advantages, implications, and some probable sales which are required to attain a potential
breakeven point.
1. Alternative A – Compliance with a $500000 deal market proposal
Advantages
 The Breeder’s Own Company is in a position of presenting its product to the marketplace
and it will be advertised internationally
 The cost of promotion has the capability of producing about $2.5 million in total.

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Total market share and sales required to create a breakeven point
 For the company to attain a breakeven point successfully, it should extract about 53% of
the total market shares for the dog food in Boston (Straka, 2010)
 On the other hand for the Breeder’s mix to get to about 1.48% in Boston countries
 Additionally, the company should put up for sale about 459,471 units in order to acquire
a suitable breakeven point.
 Also the Breeder’s mix should attain about 53% of the marketing potentials of the sales
2. Alternative B - Agreeing to a marketing proposal that is about $70000
Advantages
 The eradication of the promotional expenses and increase in various prospects which
would produce awesome marketing ideas.
Disadvantages
 Rescheduling the commencement of their brand new commodity which will consume
much time and additional expenses will be incurred in the process.
Conclusion and Recommendation
Conclusively it can be deduced that about I would $500,000 can be allocated for marketing offer
inclusive of a $30,000 slotting fee. As per information at hand, the Boston market go after the
US market, 1%of total dog food sales is contributed from the frozen dog food market, a realistic
market target of$1,680,000 is met as stated before. Breeder's Mix is required to reach a Target of

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53% of the market share (in frozen food market) in order to meet the desired smash point. Since
Breeder's Mix have no direct opposition to challenge them for the 1% market share in Boston, it
is evidently that Breeder's Mix can reach their Target without much demanding. Moreover, the
association make 28% return on sale by endorsing this method if able to meet the full market
budding (Zwickel et al., 2016)
Comparing the results, it is estimated that if the company may decide to use around $700,000
then the targeted value it will achieve will be around 16% on all sales. Consequently, the present
research exerts a great risk and problems when the firm experiences various technical burdens.
Such approximations are always computed focusing on the fact that the marketing share value of
the frozen dog food is about 1%. For the fact that majority of the consumers are in need of the
dog food products, the Breeder’s Own breeder’s mix has the capability of diverting most
customers in purchasing the newly introduced products in the marketplace.
It clearly exhibits that there is continuous buying based on the customer perspectives. Therefore,
the company has the capability of moving in so that it can persuade and convince any
prospective customer who is willing to buy their commodities. Therefore, through the diversion
of this discernment, it is said that sales per year of the frozen food always rises to an optimum
level. According research analysis 15% of people who have dogs are fascinated in venturing in
the use of frozen dog that don’t purchase the item. This provides a clear chance for most
customers to buy the dog food so that their market value can rise. Therefore through the approval
of the present promotional objective this item would be initiated based on their proposed
timetable. Thus, if this proposal was cancelled it would raise alarm so that another brand new

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proposal could be designed. Thus the Breeder’s Own company would come up with a risk which
other rivals who are in the marketplace.
Reference
Gagne, T. (2012). Dog care. Mankato, Minn.: Capstone Press.
Gillin, P., & Schwartzman, E. (2011). Social marketing to the business customer. Hoboken, N.J.:
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Grewal, D., & Levy, M. (2017). Marketing. NY: McGraw-Hill Higher Education.
Jia, P., & Pathak, P. (2011). The Costs of Free Entry. Cambridge, Mass: National Bureau of
Economic Research.
Seth, C. (2015). Swot analysis. Namur: 50minutes.
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Chiang, J., Lin, C., Fu, T., & Chen, C. (2012). Using Stated Preference and Prior Purchase
Intention in the Estimation of Willingness to Pay a Premium for Genetically Modified
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Appendices
Appendix 1 : Supermarket margin
Appendix 2: Net income before advertising
Appendix 3: Net income and Return on sales after plan A
Appendix 4: Net income and Return on sales after plan B

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Appendix 5: Break even and contribution margin for plan A
Appendix 6: Break even and contribution margin for plan A

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