case study on dog food market

1. OPPORTUNITY IN THE DOG
FOOD MARKET

2. Company Profile
• General Foods Corporation was a company whose direct
predecessor was established in the USA by Charles William Post as
thePostum Cereal Company in 1895.
• The name General Foods was adopted in 1929, after several corporate
acquisitions.
• In November 1985, General Foods was acquired by Philip Morris
Companies (now Altria Group, Inc.) for $5.6 billion, the largest non-oil
acquisition to that time.
• In December 1988, Philip Morris acquired Kraft, Inc., and, in 1990,
combined the two food companies as Kraft General Foods (KGF).
• "General Foods" was dropped from the corporate name in 1995 and now
exists only as part of a brand name for a flavored coffee-based beverage

3. Introduction
to case study
• In march 1970.Mr. steven Wald was the new product manager for the pet
food group of general food corporations Post division.
• Reviewing base line data on consumption
• food concept
• There would be high level of commitment to whatever product developed .
• To take advantage of strategic flexibility
• A wrong choice might mean much wasted of money and time.
• Information about the competitive environment .
• Interested in market segmentation

4. • Identified segment of demand
• Demand based on owner attitude about their pets rather than demographic,
socioeconomic,number and types of owner
• General food identified canned dog food category
• Product concept of canned brand strategy
• In the dry and soft-moist category of the dog food market
• Eleven new product concept had been generated.

5. Persons
best friend
• Study of pet ownership conducted by Prominent category magazine
audience research firm
• 26 million dogs owned by household in 1968
with average growth of 5%.
• 38% household of united states owned one or more than two.

6. Tabular Analysis
• Dog ownership least of lover income group
• Met central city and a family which is having no child not prefer to have
pet
• Lover income family group prefer non commercial food for its pet
• Heavy user of dry dog food In education which belongs to high school
• Feeding by reason of acquisition
• Feeding by breed
• Feeding by length of ownership

7. The Changing Canine
Role In The Society
• Ownership of feeding pattern was expected to change due to some
sociological trend that had been identified by Mr wald.
• The number of single dog and multiple dog household has increased
steadily over 1960

8. Affecting factor
• Multi family dwelling
• Increased rate of urban growth
• Crime
• Decreasing family size
• Increasing level of education
• Dictionary income
• Increase in leisure time
long range
outlook
for dog
food in US

9. Factor which affect most
• Shifting single house hold to multiple house hold
• Us trade departmement of commerce figure out
single household decreased from 64.5% to 53.3%

10. Primary reason
• Legal restriction For owning a dog
• Decrease In family size was expected in 1970s
But it did not affect the no of dog owned it was expected to
increase
• Effect dew to decrease in no. of children its harder to
anticipate
• Traditional role of owning a pet
• Level of education
• Professional source of education
• Socio-economic environment

11. The Dog Food Market
The dog food market growing at annual rate that usually exceeds 10%
throughout the middle 1960.
The retail value of dog food sale estimate $780 million in 1968.
The Four categories of dog food:-
1) Canned dog food
2) Dry dog food
3) Semi- moist dog food
4) Biscuits and Snacks

12. Sales of Dog Food
canned dog food
50%
dry dog food
25%
semi-moist dog
food
13%
special Biscuits
and snacks
12%

13. Dollar Sales of Dog Food(in millions)
Total Sales of Dog Food in 1968:- $780
canned, $360
dry, $285
semi-moist,
$100
whole biscuits
and snacks, $35

14. General foods brands well represented in the Dry and Semi- moist category.
General foods doesn’t have Canned category to compete with their competitors.
The company “Gaines burger” brand had pioneered in the semi moist category
and still the dominant in its category in 1966 to a sale of $34.5 million.
Alpo was the most heavily advertised Canned product in 1968.
In the Dry product Raiston Purina is the leading company.
Three other general category Semi-moist brands has the company achieved over
70% share of the category sale 1968.

15. Brand Sales of Semi-moist Dog
Food

16. The Dry Food category was dominated by Ralston Purina which had nearly
40% of the $285 million.
The General Food “Gravy Train and Gaines Meal” lead the company to 2nd
place with 15% category share.
‘The Canned product category was headed by Leggett and Myers’Alpo brand,
which had overtaken Quaker Oats’ Ken-L-Ration at the top canned brand in
1967.

17. Importance of Selected Factors in
Choice of Dog Food

26. New Product Concept

27. • Reveille- first complete feeding regimen meant to be fed at breakfast hour.
Cereal,high meat protein, a complete range of supplementary nutrients,and possibly,
cottage cheese solids and egg yolks.
• Prime slices- all meat dog food. Meat plus other needed nutrients in a digestible
casing.
• Control- a balanced nutrition sauce or gravy meant to be added to table scraps.
Available in powdered form and in multipack boxes.
• Dog days- first hot weather thirst drink for dogs. Replace the natural salts, body
sugars and high protein nutrients a dog loses through perspiration and activity.
• Puppy prime- designed as a high protein, extra calcium regimen for puppies.
Taking the form of a cereal-based, high protein product incorporating the probable
additives of powdered whole eggs, cod liver oil and dried milk solids.
• Prenatum- unique dietary food for the pregnant bitch. It is mild so as not to upset
the digestive sentivities that occur with pregnancy

28. • Suppertime- designed as a complete self-sustaining feeding
program for the active dog.
• Weight watcher- designed as a complete self-sustaining feeding
program for the inactive dog.
• Senior- designed as a complete feeding program for the older more
mature dog.
• Gaines thirty- the first freeze-dried food for dogs.fresher tasting,
more natural tasting. It’s portable and available at a premium price.
• Max- the first 100% fresh dog food. So fresh, its not sold in the
supermarket. Packaged and delivered everyday door to door.priced
at slightly premium levels to store-bought dog foods