Food & Beverage

Case Study: Pet Food Manufacturer

Situation
A manufacturer of pet food was faced with a number of long-term threats related to growing demand for higher quality pet foods. Increasing consumer expectation for taste and nutrition could be traced to the growth in premium priced pet foods which were sold primarily through pet/feed stores.

Solution
We worked with a small management team assembled from all functional disciplines to create a long-term vision and growth strategy that was consistent with the pet manufacturer’s leading position in the grocery/mass channel and took into account the changing and growing influence of premium products in pet owner's lives. Our strategy development process consisted of examining consumer needs, channel needs, key competitor strategies, and key product trends in both the premium and mass channels.

Results
We recommended a strategy for competing in the premium channel with a separate company which would not be associated with the mass channel company. This dual branding approach allowed the overall company to experience the growth of premium products in the pet/feed store channel, learn from the experience, and be in a position to introduce premium products into the mass channel as these needs grew. Overtime, the pet manufacturer aggressively "cannibalized" their core grocery brands with higher profit premium brands, while limiting the dangers of the premium products from growing strong enough to "jump" channels (either by design or by purchase via a mass competitor) and challenge their leadership position in the mass channels.

Contact John Hawkins for more information.