Should Breeder's Own Pet Food accept the proposal as written by Marketing Momentum Unlimited?
Breeder's Own Pet Food should accept the proposal from MMU, and proceed with selling the Breeder's Mix dog food in supermarkets. The decision was made by these relevant decision factors.
Market Opportunity: This is a new market. Regardless if there could be a small loss in the first year, the dog food market is rapidly growing, as shown by the case. This is their opportunity to take a leadership position in said new market. The current market is divided into the three primary categories; dry food, canned food, and treats. The frozen food that Breeder’s ...view middle of the document...
This is also lower than treats, but treats are a different market to compete with, as treats aren’t purchased frequently.
Profit Potential: The total estimated canned dog food market in Boston is $33.6 million. I went with canned food, as it’s the most comparable option for sales potential. MMU’s plan for Breeder’s Own has two advertising options, at $500,000 and $700,000 respectively. The second option contains all of the first advertising plus more television commercials and magazine inserts for more aggressive marketing. We don’t know all of the costs for transport or everything else, solely the advertising. So a true break-even analysis can’t be achieved, but we can know a break-even for advertising alone. Table 4 details these amounts.
Effective Marketing Plan: MMU has a well-made and detailed plan for convincing buyers that their new product Breeder’s Mix is the best dog food for dogs that are “members of the family”. They’re focusing as a premium brand, so the price isn’t the focus, the quality of the food is. Doing so puts them in a leadership position as a premium dog food in this category, instead of a low-cost alternative. The media plan for television is aggressive and one of the key focuses, targeting the older audience from age 21-55, the target audience most likely to buy the product, at multiple points in the day and night. The rest of the plan is targeting key member who would buy, for example, the quality conscious buyers would see the ad they have planned in Dog Fancy. Based on the industry standard, both of the plans (at $500,000 and $700,000) are high for the Boston market. However, they considered this, and this a product launch for a new product in a new market. Breeder’s Own must cement their position for the initial market share. The Media plan’s most effective point, that overcomes one of the most difficult issues, it tells the consumer where to find...