Breeder’s Own per food Inc.
Key Facts that are in the case:
1. Breeder’s Own Pet foods is a major producer of dog food for show- Dog Kennels in the United States, the company has prospered a unique dog food for show dogs.
2. Fresh meat constitutes 85% of the product’s volume, and the highest quality fortified cereal accounts for the remaining 15 percent.
3. The ingredients, with not additives or preservatives, are packaged frozen to prevent spoilage of the fresh uncooked meat.
4. Executives recognized that modifications in the packaging of Breeders Mix would be necessary in order to make the transition from the kennel market to the retailer.
5. Breeder’s Mix would be packaged in a one- pound stand up pouch, 12 pouches in each case. The cost of production, freight and packaging the meal was $7.87 per case which was a representation of variable costs
6. Distribution with food brokers indicated that distribution through supermarkets represented a growth opportunity for Breeder’s Own Pet Foods Inc.
7. Food brokers would represent Breeder’s Mix to supermarkets and would receive a 7% commission based on the price to retailers, which had yet to be determined.
8. Supper markets typically received a 22% percent of their selling price for dog foods.
9. The cost of the proposed plan could be $500,000 to $700,000, exclusive of slotting fees, which company executives considered reasonable, although it would certainly stretch their promotional budget.
10. Breeders own will be the only dog food located next to the “people food’ in the frozen food section of the super market, is a huge advantage.
11. Sales of dog food will total about 14 billion in 2011 at manufacture’s prices at manufacture prices.
12. 36% of all dog food sold in the U.S, representing $5 billion in sales at manufactures prices, 64% sold is sold by mass merchandiser’s such as Walmart, Pet supper stores, , veterinarians and internet retailers and independent pet stores.
13. The Boston area is ideal for launching a new dog food, it has 1.2% of the U.S population.
14. Companies such as Del Monte, Nestle Purina, IAMS, Hills pet nutrition, master foods USA account roughly 75% of the U.S dog food.
State the problem or problems to be solved in the case:
There are two major concerns that have come up in this case. The first being that Breeder’s own is trying to sell their products in a difficult section of the grocery stores. They are not the average type of dog food company. They are trying to overcome the struggle of introducing their product that is going to be sold...