OPPORTUNITY IN THE DOG

FOOD MARKET

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

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

• 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.

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.

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

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

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

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%

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

The Dog Food MarketThe 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

Sales of Dog Food

canned dog food50%

dry dog food25%

semi-moist dog food13%

special Biscuits and snacks

12%

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

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.

Brand Sales of Semi-moist Dog

Food

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.

Importance of Selected Factors in

Choice of Dog Food

New Product Concept

• 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

• 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.pricedat slightly premium levels to store-bought dog foods