iams - marketing study

Gabriel Valdivia | Design Marketing | Spring ‘09

Marketing PlanPrepared by Gabriel Valdivia


The Iams Company Marketing PlanGabriel Valdivia | Design Marketing | Spring ‘09


Table of Contents

Project Background

History

Corporate Timeline

Visual Boards

SWOT Analysis

Competitors

Competition Overview

Hill’s Pet Nutrition

Purina

Pedigree

How Iams Differs From Competitors

Target Demographic

Target Audience

Goals & Objectives

Problem Identification

Statistic Research

Primary & Secondary Goals

Tactical Implementations

Print & Interactive


Project BackgroundHistory

Corporate Timeline

Visual Boards

SWOT Analysis


History

The Iams Company was named for its founder, Paul Iams, the son of a humble feed store owner. Iams worked with his father during the great depression, peddling his father’s inexpensive dogo food to area kennels an veterinary clinics. In 1946 he founded the Iams Company. Paul was convinced pet owners would pay more for a better product and came out with its first premium dog food, Iams 999, in 1950.

Inspired by a visit to a mink ranch, Paul Iams was convinced that dogs were in need of a higher protein, higher fat food than was commercially available. Iams noticed that the dogs in the mink ranch were exceptionally healthy, with beautiful and shiny coats. This became the thesis that separated Iams from every other pet food brand. He based his product in the mink’s diet, researching pet diets and methods of processing protein.

In 1961, Iams came up with an improved brand, Iams Plus. Called the pet food’s industry’s first complete diet because it did not require any additives. As a result of Paul Iams development, the new food was both high in protein and low in harmful minerals, giving them a lead amongst their competitors which seemed to have ignored that at the time.

With many ups and downs, the company continued a successful career throughout the years. The ownership and marketing strategies changed a few times, giving the company a bit of an identity crisis. Iams was first conceived as an elitist pet food brand not to be sold at supermarkets, this is evident in their 1993 marketing slogan: “If you’re in the market for the best pet food, get out of the supermarket!”.

Later in its corporate life, Iams was bought by Proctor & Gamble and thus remodeled their marketing strategy, positioning the brand in over 25,000 new retail outlets. While this increased the market share and sales of the company, it diminished their credibility and loyalty to the consumer. Some even questioned their research methods, involving organizations such as PETA and the ASCPA in the process.

By 2006, Iams teamed up with 1900 to find loving homes for more than 32,8000 orphaned pets. The company increased the awareness on pet owners of a good, well balanced pet diet and continued to successfully brand their product among their key demographics.


Corporate Timeline

Paul Iams founded the Iams Company.

First Premium Dog Food, Iams 999.

Paul Iams created the Iams Company in Dayton Ohio.

Iams Plus.

Iams selling at a loss. Gave Mathile opportunity to buy 50 percent share of the company. Mathile bought a quarter-page ad in Dog World magazine and promoted the product at dog shows.

Company no longer in danger. Distribution increased worldwide.

Sales doubled twice after Mathile changed the dog food’s appearance to appear like the more traditional pellet-shaped dog food.

Paul Iams retired and sold his half of the company to Clay Mathile and his wife.

The company’s annual sales were estimated at $210 million and profits were growing at 25 percent.

Iams advertised in newspapers with the slogan, “If you’re in the market for the best pet food, get out of the supermarket!”

The company changed its target. The new campaign tried to reach the millions of pet owners that adopted animals from shelters.

Iams’s sales were estimated to stand at more than $300 million.

Iams started construction on its first overseas plant.

Iams bought by Proctor & Gamble.

Procter & Gamble distributed its premium Iams brand to 25,000 new retail outlets.

Sales were over $800 million with more than 2000 employees worldwide.

Iams teamed with 1,900 animal shelters to find loving homes for more than 328,000 orphaned pets.

1946

1956

1959

1961

1073

1975

1979

1981

1990

1993

1990

1996

1997

1999

2000

2001

2006


Visual Boards


SWOT Analysis

Strengths

The Iams Company focuses on being sensitive to the needs of their internal and external customers and they guarantee to fulfill the promises they make. Also, they try to be environmentally responsible in the process. Another important strength is that they support community betterment for the mutual improvement of the communities where they operate.

Opportunities

Because of it’s hisory and reputation, the Iams Company has many opportunities available for them. Their involvement on pet adoption campaigns is raising eyeborws and turning heads over the new initiative of the company. A new environmentally conscious company can emerge out of difficult times like these.

Weaknesses

Iams is often accused of unfair treatment to animals during testings for their products. This has led to multiple boycotts made to the company, threating their reputation and credibility within its market. Iams is also a company that although offers premium quality products fails to compete in prices with cheaper brands that are sold massively in several grocery stores around the U.S.

Threats

The Iams Company is constantly threatened by lower-priced brands available in the mass market. Iams needs to react to the rumors of animal abuse during product testing as well. Companies like Purina and Pedigree are very well diversed in advertising vehicles and campaigns. The Iams Company needs a slight advantage within those companies to make their brand name a synonym of pet food.


CompetitorsHill’s Pet Nutrition

Purina

Pedigree

How Iams differs


The three leading brands in pet food right now are Hill’s Pet Nutrition, Purina & The Iams Company. Hill’s Pet Nutrition currently hit sales and recorded revenue at $1.4 billion at the end of its fiscal year in 2002, ranking the company as second in the dry dog food industry, tying along side Proctor & Gamble’s The Iams Company, which had sales of around $1.5 billion. Hill’s also currently holds a solid 12% of the market share, along with The Iams Company holding another 12% and Purina with 30%, all three holding a combined total of a 54% share of the entire market industry while the other 46% is held by terciary competitors.

Competition


Hill’s Pet Nutrition

Hill’s Pet Nutrition also takes a great part in being highly involved in Animal Welfare. Hill’s only supports and conducts research under strict rules that no animal be harmed for any reason. Their quality scientific research, compassion and love for animals remain, and have the same guidelines; to help improve pet’s lives by making them healthier.


Purina

Purina is currently advertising to pet owners to take the Purina 30-day challenge, which is feeding your dog only Purina brand dog food and seeing if you notice a difference in your dog in just one month’s time. They believe you will, and have posted scorecards to help you keep on track and actual online testimonials of dogs that have previously taken the Purina Challenge.


Pedigree At Mars Inc. is a name globally known as a high quality and trustworthy family business making it the largest “small family business” in the world. Their brand name Pedigree holds a market share of 12% in the dry dog food market. Pedigree brought in a total of around $1.4 billion sales as well in the end of 2002. Pedigree strives to provide dogs with a full balanced diet of vitamins, minerals, essential fatty acids, fiber and protein. Pedigree dry dog food helps make it more convenient for the consumer at home, but also helps fight and stop the accumulation of dental tartar and plaque with each bite a dog takes.

Pedigree


How Iams Differs from Competitors

For many years, Iams has differentiated itself from competitors by producing nutritionally complete pet foods with heavy reliance on animal protein, instead of the grain proteins found in many of its competitors' products, giving Iams the edge.

Today, the dry adult dog foods contain complete nutrition, with more chicken, egg and fish than the leading competitors. Iams brand contains high quality ingredients to help dogs live a healthy life.

If food and water wasn’t enough, the product also contains a special scoop bag for one’s dog and a disposable litter box for cats, complete with liter.

Creative Weekly

“The food and water are both stored in sealed bags that maintain freshness and prevent leakage.”


Target Demographic


Target AudienceThe new marketing initiative will be addressed to adults between the ages of 30 to 40 years old. Men and women who are proud family pet owners and are conscious about the benefits of feeding their pet a healthy nutritious diet. These individuals take pride in their pets and are concerned about their health. They are very family oriented; sometimes the pet owners are the children in the family. As decision makers, the parents need to educate their children of the benefits of Iams Pet Food.


Goals & Objectives


Problem IdentificationIams Company, although succesful, fails to be the leader in the dry pet food industry. With 12% Iams shares the second spot along with Hill’s Pet Nutrition, falling behind Purina who controls the market with an astounding 30%. This is due to the failure in differentiating its key points in contrast to their competitors. Iams is also wrongly thought of as an elitist pet food, limiting their target audience to “those who can afford it”. This is very limiting to their progress due to the current economic downfall that the U.S. is undergoing.

Iams needs a complete overhaul of its image in order to reinvent the conception of the brand. In order to gain more market share, Iams needs to address the decision-making adults between 30 to 40 years old and appeal to their needs. Iams will create the need for a pet owner to feed their pet quality food at a price that is affordable.

30%

12%

12%

11%

10%

7%

4%

14%

Dry Pet Food Market Share

Purina

Ol’Roy

Iams

Kibbles ‘n Bites

Hill’s

Nutro

Pedigree

Others


Statistic ResearchIn the United States today there are over 175 pet food manufacturers, bringing in constant total revenue of around $12 billion annually. There being only six different categories of pet food available to purchase, dry dog food is the market leader carrying above the rest with a share of 58.5%. Listed below are the few top dry dog food competitors in the pet food industry today.

U.S. Sales for Dry Food in U.S. $ Billions

Dog Food Brands

Purina

Iams

Hill’s

Pedigree

Ol’ Roy

Kibbles ‘N Bits

Nutro

Other Brands

Total

2008 Sales

3.8

1.5

1.4

1.4

1.2

1.0

0.5

1.7

12.3

2009 Sales Estimated

3.7

1.6

1.5

1.4

1.3

0.9

0.5

1.7

12.5


Primary Goals

Secondary Goals

Create a new product positioning to obtain unique, differentiating value proposition.

Focus repositioning initiative on core target audience psychograph and demograph discussed previously.

Change media placements to reach core target audience psychograph.

Re-imagine the company’s public image by eliminating any suspicion of animal cruelty within animal testings.

Communicate the benefits of Iams Pet Food more clearly.

Create a need to feed your pet quality food, even during difficult economic times.

Raise awareness of the importance of healthy pet food.

Create a transparency in the process of developing the food to avoid any kind of missconception or assumption.


Tactical Implementations


PrintPackage Re-designThe package, although effective; is very generic and lacks personality. This is something that Iams will explored within their re-branding. Package layout will remain the same with the addition of photography that highlights the many different personalities of the Iams pet.

Pet Peeps Iams will take dog food and bring it to a different level. It will create a need for consumers to choose Iams among the many generic pet food brands. It will engage with the consumer by providing collectible trade cards called Pet Peeps. Each card will feature a different pet personality as well as humorous insight about the pet’s “lifestyle“.

Billboard Ads A series of billboard adveritising will be created proposing the question: Which Iams pet are you? Each billboard will feature a different pet that portrays a personality easy to relate to and it will also raise awareness of the Iams Pet Peeps Campaign.

iams - marketing study

Documents

historythe iams company

corporate timelinepaul

marketing planprepared

marketing slogan

marketing strategies

marketing strategy

best pet food

elitist pet food brand