Pedigree Growth Strategy (A) Case Solution

Situation Analysis

Situation analysis is one of the most important tool that can help Julie Smith to devise her marketing plan in an effective way. Basically situation analysis gives insight regarding not only the internal and external environment of a firm but also its resources and competence (Gerrie E. Du Rand, 2003). Under the following heads Pedigree’s PESTEL, Porter’s five forces model, SWOT and VRIN analyses have been discussed to make the magnificent marketing plan for the potential growth of a firm.

External environment can be evaluated with the help of PESTEL analysis. There are five factors of this analysis i.e. political, economic, social, technological, environmental and legal. Commercial restrictions and political firmness are the harbingers that directly influence the Pedigree’s success and failure. Furthermore, changes in taxation policies, rule regulations and laws can augment the cost of production and disturb the patterns of distribution. On the other hand Pedigree may gain the government grants or support to accelerate its growth. While rising cost of commodity and interest rates might affect the Pedigree’s consumer buying power. Moreover, social pattern can enhance the acceptability of Pedigree’s dog food products because rising level of education among different communities and societies enhance the awareness regarding nutritional food for their pets. Apart from this, technological advancement can also give the number of opportunities to Pedigree to increase its target market, productivity and profitability. What is more sustainable competitive advantages are also in high demand and legal restrictions as well as regulations for the maintenance of quality standard cannot be over sighted (Yüksel, 2012)

Porter’s five forces model is another method used to gauge the external environment of a Pedigree. The first force of this model is competitive rivalry according to which dog food market is largely fragmented, choice of products is high and brand management techniques are being intensely used that it highly competitive. Second, multiple products are being offered due to which power of buyer is moderate to high. Third, numerous independent retailers and distributors in the market decline the bargaining power of suppliers but still Pedigree faced the issue of local labels promotions by retailers. Lastly, threat of new entrants and alternative to the products is high (Porter, 2008).

Internal analysis of Pedigree has been done with the help of SWOT and VRIN analyses. The first and foremost strength of Pedigree is its reputation in the dog food industry as it is one of the globally renowned dog food brands with mammoth distribution channels. Another strength of Pedigree is that despite unfavorable circumstances Pedigree is persistent in generating gross profit. On the other hand, premium prices and standardized business procedures and regulations for almost all portfolio items is its weakness. But it also has opportunities such as expansion of business in other countries, utilization of advanced technology and integration with potential distributors, retailers and other stakeholders. What is more, Pedigree must be ready to face the anticipated threats e.g. price war, cut-throat competition and inclining cost production (Wright, 1998).

VRIN analysis has also been used to know the Pedigree’s resources and is basically based on four indicators such as valuable, rare, inimitable and non-substitutable (Pratami Wulan Tresna, 2018). International distribution channel, experience of accretion in potential market, marketing skills and research and development make Pedigree valuable. Innovative methods of production, unique product portfolio and advanced methods of cropping and harvesting and firm’s tactful usage of resources to maintain economies of scale make Pedigree rare. The inimitable factors of Pedigree include innovation, demonstrative human resource management, cost control tactics and research and developments. While brand equity, brand value, brand recognition and fulfilment of not only functional but also psychological requirements of customers make Pedigree non-substitutable in the dog food industry.

Possible Solutions

On the basis of detailed situational analysis of Pedigree, the most prolific possible solutions will be offered in the following headings that would assist the Pedigree not only to avoid the forthcoming threats by minimizing its weaknesses, enhancing strengths and exploiting the opportunities but also to improve its profitability.

Strengthen Distribution Network

It is highly recommendable that Pedigree must take firm hold on its distribution channels. These channels include brokers, wholesalers and retailers that directly impact the sale of a product (Sunil Chopra, 2003). Due to the stringent control on these distribution channels would help the firm to escalate its product dissemination nationally as well as globally. Not only this, strong and direct distribution network can also aid the Pedigree to build strong cordial relation with its end customers.

Develop Unique Marketing Tactics

It is imperative for Pedigree to target the market segment that is highly prone to purchase dog foods. This strategic suggestion will guide the Pedigree to penetrate in new market segments that ultimately increase the number of its customers and consumers. It is blatant that large number of consumers and customers directly influence the firm’s productivity.  More, unique marketing tactics should be used to establish the amicable relation with customers and high end consumers. Modern modes of communication can be exploited to reach out the large number of consumers situated in different regions and countries. What is more, partnership in term of co-branding can be adopted to gain the attention of potential consumers.

Adapt To Different Cultural Aspects of Different Markets

Each target market and market segment has different characteristics that impact the saving and buying behavior of consumers. Therefore it is also suggested that Pedigree must evaluate each target market in term of diversified cultures and social patterns and preferences to serve each market segment according to their preferences which ultimately augment the product acceptability at large scale.

Expand into New Regions

It is also advisable that Pedigree must expand its market into new regions that have never been served before. In doing so, it can increase its consumption rate that will positively impact the income statement as well. This market expansion can either be national or international. But this is not the only way of expansion, Pedigree can also expand its operation by diversification of product line (lgal Ayal, 1979).Through the product diversification Pedigree can penetrate more deeply in the existing target market by exploring new consumers. This form of expansion can also give hefty financial return to Pedigree…………..


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