Fresh Dog Treats is a newly developed company that is focusing on catering to th

Question

Fresh Dog Treats is a newly developed company that is focusing on catering to the premium pet market. Specifically, the company is creating gourmet/organic grain-free fresh dog treats. While these treats are similar to some treats offered on the market currently by such companies as FreshPet, one of the biggest differences is the packaging approach. One of the limitations to FreshPet products is the product must be refrigerated in the store, which limits the number and types of retailers that will adopt the product. Most stores do not want to put a refrigeration unit in the middle of their pet food aisle. Fresh Dog uses aseptic packaging that only requires the product to be refrigerated after opening. This will allow the product to be displayed in the normal pet aisle without the requirement of the refrigeration unit. As the company progresses forward with this product, there are several marketing issues that have not been resolved.

Your task is to assist them in this decision-making process. Please respond to the following decision points for the company:

a: Identify for this product a specific target market group they should focus on. In your description of the target market, you also need to address where you believe this group of individuals would most likely purchase this type of dog treats.

b: After calculating the cost of goods sold, the company has determined that the cost per 8 ounce bag of treats is approximately $2.97. The company desires a 40 percent contribution margin on each package sold. They also know that most wholesalers in this industry use a 32% mark-up and many retailers maintain a 25% mark-up as well. Following this channel and based solely on the calculations, what will be the price that the normal retailer will charge for the product? Reflecting on the psychological aspects of pricing and specific pricing tactics theories, what would your final price recommendation be? Support your answer. How would the price vary based on a price elasticity of 0.3?

c: Design for the company an appropriate promotional campaign for this product based upon your described target market. Be specific in your discussion. Be sure to address the influence of the brand will have on this component of the marketing strategy.

d: Discuss how the aspects of differentiation and positioning will impact the acceptance of this product by the desired target market. What must the company consider in terms of its products and the competitor products when entering the market?

e: Create a slogan for the business, less than 20 words, which captures the essence of the brand. Explain your rationale for the slogan. Then show how it should be incorporated within your brand image development and integrated marketing communication campaign.

Explanation / Answer

Summary:

(Fresh Dog Treats Newly Opened, Focus - packaging, limitations -Store in refrigerator) Nowadays, mostly the pets are been kept by upper class people. and they dont mind spending anything for their food. There are people who are middle class and keep the pets so the product should have all sizes of packets so that all can prefer to buy Fresh Dog Product. The target audience and target shops where Fresh Dog Product can be kept can be Malls, expensive areas, Retails Stores, Small Shops, as most of the shops have fefrigerators with them who keep for storing icecream, so they can store the product there too. The availability for the product should be the positive point.

The price is offcourse the main thing, but if we are giving the product in all sizes we can recover our price and margin properly, we can convince the retailer or wholesaler for some gift policy. We can also keep the best convincing sales executives who cannot come empty handed.

We can promote the product through advertisements, banners, pamplets, and word of mouth, we can initially can give free small samples with any specific product and then can sell individually. Can promote through social sites and can create a very attractive advertisement which can show the beautiful relation between the human and dog.

Competitors product and fresh dog product can be differentiated based on components present in the product which can be healthy to the dog. Also can focus on the positive points of the product like packaging. The thing which is leading to struggle in market of storing, we can use that as our advertisement tool and can say that as we eat the healthy food why not dogs.

The slogan can be "If you love your dog feed him the fresh dog product"

The incorporationn can be done by various ways:

Advertisements can be very attractive, which will only show the love the human has and the love which dog has to human.

Pamplets, brochers, word of mouth, social media, hoardings, all should depict only the love between the human and dogs.Can advertise by visiting collegues, Corporates and so on. as many people from all parts of world is having a pet in house and surely love the pet which they have.

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