PEDIGREE GROWTH STRATEGY (A) Case Study Analysis
Pedigree is a dog food brand which isinitiated in Great Britain and thensucceeded around the world. In 1988, it was launched in U.S. It was recognized as the world’s top dog food seller. The company has changed its brand name from Kal Kan to Pedigree through a process of step-by-step transition. It offers more than forty five products that includes dry food, wet food and dog treats. The most popular product is the 40 lb. bag of dry dog food. It has extensively spent on the marketing of its products which is more than any competitor or brand of dog food. Its advertising strategy was based on two key messages first one is that Pedigree is made with meat as a basic ingredient and next one is that it is the choice of breeders and recommended by them. During 2003 and 2004, it has added an emotional feeling in its advertising campaign as “made with vets and recommended by breeders”.
Although, Pedigree has shown a little growth in operating profits during 2003 and 2004 that is 2.3 percent and 0.4 percent respectively, but the company is facing a reduction in the shelves of stores and slacking off its market share due to the extensive competition in the market. The brand manager of Pedigree, Julie Smith has to determine its growth strategy that will increase its growth and save the falling-off business. Now, she has to decide which type of growth strategy will work best for their business’s success.
STP analysis hasbeen performed to identify the Pedigree’s segmenting, targeting and positioning aspects in this competitive world.
Pedigree segment their target market according to the choices of the food of the owners of different types of dogs withdiversification in thebreeds of dogs. The target market is further categorized under three major segments. The first segment’s dog owner treats their dogs as their family members and are highly concerned about dog’s health. They prefer high quality food and sometime purchase dog health insurance.
The second segment is comprising of the dog owners who treat their dogs as their companions and keep friendly relationship. They want their dog to provide friendship and good relationship.
The third segment see dogs as their protectors or the property. They play functional roles and the owners are crucial about their food because they want healthy dogs as their protectors. Dogs should be skill full. Only 1% dog owners have such type of dogs.
Pedigree is the world’s largest brand with having 14.5% market share in the U.S. It has targeted all type of dog lovers by providing wet food, dry food and treats. But the most selling food is dry food because it does not require huge investment and quick process as compared to wet food which require quick process. Pedigree targeted its customer by providing product line such as dry food, wet food and treats; treats are special food which is used to provide appreciation for dog’s achievement, it covers only 1% of market share while the dry food has the largest market. Pedigree falls under mainstream category………………
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