MBA 565 Final Exam

Question 1 (1 point)
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 like 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 of 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 [standard] pet aisle without the
requirement of the refrigeration unit. As the company progresses forward with this product,
[several marketing issues], 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, a [particular] target market group for this product 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
ounces 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%
markup and many retailers maintain a 25% [increase] as well. Following this channel and based
solely on the calculations, what will be the price that the [average] 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
(cost) 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 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 [motto]. Then show how it should be incorporated [into]
the brand image and integrated marketing communication plan.

“Consumers can see the brand from any angle. For many companies, the right
packaging, such as a flat-bottom bag, [compliments] the marketing campaign the brand has
invested in, according to Mark Liberman, vice president of sales and marketing for Peel Plastic
Products Limited. “There is an expectation from the consumer today that when they purchase a
premium food, they will have a premium experience from the first feeding to the last,” he said.
Branding, design presentation, and product differentiation are all important aspects [of] the pet
food packaging market. By bringing together these key elements, pet food companies are able to
provide innovative and premium products that respond to what consumers are looking for in a
package. Pet food market trends are continuously shifting towards innovative packaging
solutions to enhance the consumers’ experience.” (Beaton, 2015)

Figure 1. U.S. Pet Food Spending 2014

Pet treats hold a small share of US pet food spending when compared to most pet food; however
the 16% treats held in 2014 did beat out value pet food spending (Beaton, 2015).

Figure 2. U.S. Monthly Pet Treat Spending 2015

While monthly treat spending for pet-owning households varies, much of both cat and dog
owners say they spend US$19 or less on treats per month (Beaton, 2015).
Figure 3. U.S. Pet Treat Purchasing by Type 2015

Unsurprisingly, the percentage of cat owners who purchase traditionally dog-centric treats, such
as jerky or rawhide, is far smaller than that of dog owners. However, much of both cat and dog
owners say they have purchased some type of treat for their pets in 2015 (Beaton, 2015),
 References
Beaton, L., (2015, May 21). Packaging as branding in pet food marketing, Watt Global
Media, Retrieved from, http://www.petfoodindustry.com/articles/5193-packaging-as-branding-
in-pet-food-marketing .
Beaton, L., (2015, June 17). Trends in pet treats, Watt Global Media, Retrieved from,
http://www.petfoodindustry.com/articles/5232-trends-in-pet-treats .

Today’s consumers face richer information environments than ever before. Whether it is the
13,798 mutual funds on Quicken’s Web site or the 1,057 PDAs on Amazon’s Web site, it is clear
that today’s consumers have many choices. Several researchers (e.g., Jacoby, Speller, and Kohn
1974a, 1974b; Keller and Staelin 1987; Malhotra 1982; Scammon 1977) have found evidence
that increasing the number of alternatives or attributes in a choice set leads to a decline in the
quality of consumers’ choices. (See Keller and Staelin [1987] for a review.) Other research has
shown that consumers are less likely to purchase a product when a store offers an extensive
selection of that product than when the selection is reduced (Iyengar and Lepper 2000). What
factors affect the amount of information that consumers are asked to process and the likelihood
that they will be overloaded with information?
Traditional approaches to measuring the amount of information provided to consumers (e.g.,
Bettman et al. 1990; Jacoby et al. 1974a, 1974b; Keller and Staelin 1987; Malhotra 1982; Payne
1976; Payne et al. 1988; Wright 1975) involve simple counts of the number of alternatives and
attributes in a choice set. These counts are then used to make predictions about decision
processes and the quality of consumers’ choices. Such an approach assumes that more
alternatives mean more information. However, is it possible to provide consumers with more
alternatives but less information?
From the general proposition that information overload is a function of the amount of
information I(A) in a choice set, come the following testable hypotheses: H1a: The even
(uniform) distribution of attribute levels across alternatives lowers decision quality relative to the
uneven (nonuniform) distribution of attribute levels; H1b: An increase in the number of attribute
levels lowers decision quality. H2: Information structure mediates the relationship between the
number of alternatives and decision quality. Hypothesis 1 suggests that choice sets with attribute
levels distributed evenly across alternatives, or those with more attribute levels, are more likely
to be associated with information overload than those for which attribute levels are not evenly
distributed across alternatives. Hypothesis 2 suggests that information structure, not just the
number of alternatives or attributes, is the primary determinant of information overload. In
particular, a choice set with more alternatives but unevenly distributed attribute levels may in
fact lead to decision outcomes that are not significantly worse than a set with fewer alternatives
with an even distribution of attribute levels across alternatives.

NICHOLAS H. LURIE, Decision Making in Information-Rich Environments: The Role of

Information Structure, 2004 by JOURNAL OF CONSUMER RESEARCH, Inc. ● Vol. 30 ●
March 2004,
http://marketing.business.uconn.edu/wp-content/uploads/sites/724/2014/08/decision-making-in-
information-rich.pdf

http://marketing.business.uconn.edu/wp-content/uploads/sites/724/2014/08/decision-
making-in-information-rich.pdf

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

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 [goodies] offered on the market currently by
such companies as FreshPet, one of the biggest differences is the packaging approach. One of
the limitations [of] 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 [standard] pet aisle without the
requirement of the refrigeration unit. As the company progresses forward with this product,
[several marketing issues], 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:

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.

IN 2006, when Freshpet introduced dog food that required refrigeration, a

novelty in the pet food aisle, retailers were skeptical that they should remodel
to accommodate the free refrigerators the brand offered. But after widespread
pet food recalls in 2007 linked to contaminated wheat gluten from China,
consumers and retailers both warmed to the brand’s promise of fresh
ingredients without preservatives, and distribution today has grown to about
9,200 stores, including Walmart, Target, Whole Foods and Petco.

Commercials for Freshpet over the last three years have featured dogs with
placards hanging from their necks, the messages occasionally relating to their
breeds, like “Pug off, preservatives” and “Propylene Glycol is Shih Tzu.”

A new Freshpet commercial takes a patriotic turn, with an American flag

backdrop and “The Battle Hymn of the Republic” playing. It opens with a
Portuguese water dog (the same breed as Bo, the first family’s dog) wearing a
placard that says, “I want veggies from Virginia.”

Other alliterative signs also highlight that the brand uses domestic
ingredients, including a beagle who wants chicken from Charleston and a
Weimaraner who wants beef from Boise.

“Do you know where the ingredients in your dog food come from?” asks a
voice-over. “We make Freshpet from fresh meats, and fresh veggies farmed
right here in the U.S.A.” The spot closes with the slogan: “Freshpet, fresh food
for Fido.”

The commercial will be introduced Monday and will run widely, including
during the Macy’s Fourth of July fireworks broadcast on NBC.

The campaign, which also includes online and print advertising, is by the
Terri & Sandy Solution in New York. Guerrilla marketing posters feature
figures from American history, including a painting of Abraham Lincoln and
his dog, with the text, “If you said Honest Abe fed his pooch processed foreign
ingredients, he would call you a liar.”
Freshpet will spend an estimated $10 million on the campaign.

While the brand and the agency dismissed the device of talking dogs as
gimmicky, ascribing thoughts to them with the placards was a way “of letting
dogs speak out,” said Sandy Greenberg, a founder of the Terri & Sandy
Solution.

With no people in the commercial and only dogs looking into the camera,
added Terri Meyer, the other agency founder, the perspective of the viewer
mirrors that of dog owners accustomed to intent canine gazes.

“If you don’t show an owner with the pet, you can be the owner of the pet,”
Ms. Meyer said. “You can put yourself in that situation with the dog.”

Cameron Woo, [the] publisher of The Bark, a quarterly dog magazine, said
that having only dogs in the commercial also underscored that it was
advertising a pet product, which is not always obvious nowadays.

“It’s a creative distinction because there are so many products that don’t have
anything to do with dogs but have dogs in their commercials to sell cars, beer,
anything,” Mr. Woo said.

The pet food maker Merrick also promotes American ingredients, including a
2012 online video, “Tails From the Revolution,” in which a talking dog
wearing a beret sits in front of an American flag.

“The new goal of the bowl is that it should runneth over with real, wholesome
food,” says the dog, adding that it should be “locally sourced.” The video is by
Carmichael Lynch Spong, a public relations firm in Minneapolis.

Merrick also held a mock protest demanding “better food for the 99 percent”
in Union Square Park in Manhattan in October, calling it a “Doggupy
movement,” a reference to Occupy Wall Street protests.

Even after the 2007 recalls, dog and cat food imports from China have grown
every year since, from 58.8 million pounds in 2008 to 85.8 million pounds in
2011, an increase of 46 percent, according to the Food and Drug
Administration.

An article in the current issue of The Bark about pet food safety emphasizes
that ingredients from the United States are far from immune, noting
numerous recalls in 2012 of domestically sourced dog treats based on
evidence of salmonella contamination.

In supermarkets, mass-market department stores and club stores, Freshpet

sold $48.1 million in dog food and $3.5 million in cat food in the 52 weeks
ending April 21, an increase of more than 44 percent over the previous year,
according to data from SymphonyIRI Group, a market research firm whose
 data does not include pet stores. Pet stores account for as much as 25 percent
of Freshpet revenue, according to the brand.

Scott Morris, the president and a founder of Freshpet, which is based in

Secaucus, N.J., said that although the company used no ingredients from
China, it did occasionally buy carrots from Canada.

The brand has had to convince retailers not just to let it install branded
refrigerators in the pet aisles, which tend to be far from electrical outlets in
the center of stores, but also to accept deliveries via meat distribution
systems, meaning “either the meat or dairy guy has to put it in the pet aisle,”
said Mr. Morris.

What has convinced supermarkets, along with earning higher margins than
on lower-priced food, is that Freshpet is sold in smaller quantities and that
most products must be used within seven days of opening. That means it can
more often be the reason for the trip to the supermarket, and shoppers
buying other items.

“You buy 40 pounds of kibble, and you don’t come back for a month or two,”
Mr. Morris said of large packages of dry food. “But we’re like milk and eggs.”

With so many over-the-top pet products and services like doggy day spas
today, television advertising helps promote Freshpet as a mainstream
product rather than a laughable luxury.

“TV is the main way to show that Freshpet is here to stay,” said Mr. Morris,
“and not some weird thing the neighbor down the street who’s a dog kook is
buying.” (Newman, 2013)

Newman, A., (2013, June 13). Freshpet Dogfood promotes products sourced in the U.S.,
The New York Times, Retrieved from,
http://www.nytimes.com/2013/06/14/business/media/freshpet-dog-food-promotes-products-
sourced-in-the-us.html

In an age of intensely consumer-driven marketing, pet food packaging has become a

key player [in need] to catch sales opportunities at store shelves.

“Good packaging engages the consumer on every possible level, according to Stefan
Hartung, executive creative director for Kick, which focuses on packaging design.
“Great design elevates every touchpoint to a delightful experience—creating lasting
relationships.” With more pet food options on store shelves than ever before, and with
consumers increasingly savvy about what they’re feeding their pets, it’s vital for pet food
manufacturers to make sure they stand out. The best way to do that is marketing, and
the most visible form of marketing is the very packaging consumers must look at before
they buy a product.
“The pet food packaging industry has come a long way from the days of just serving as
a vessel for conveyance of the food—it is now a vehicle for on-shelf advertisement,”
said Dave Long, North America pet market director; Loic Sebileau, global pet
coordinator; and Chris Swalm, marketing manager, all with Coveris. “This advertisement
is not only of the brand message, but also the pet food company’s vision and direction.
The package plays a [significant] role in distinguishing the brands on the shelves and at
home. One of the best opportunities for pet food producers to make the food attractive
to the consumer is to play with packaging styles, changing colors and decorative
aspects, and offering improved features. In these ways, the brand can customize the
message.”

Appealing to the emotional aspect of pet food buying is part of that marketing. “Many
times, food packaging is the first introduction of your product to a potential customer, so
their perception of your brand is part of the decision-making process on whether or not
they will try or purchase your product,” said William Schueddig, director of marketing
for PBFY Packaging. “Using colors and imagery will affect the emotions of the
consumer, but customers need to connect emotionally to your packaging. You never
see snarling dogs or hissing cats on [the] packaging. Pets are shown running, eating or
looking at you with happy expressions. That same emotion is what pet owners want to
feel when they give a product to their pet.”
As such, packaging can be used to convey subtle marketing ideas that consumers are
looking for. Unique-shaped packaging can cue a premium product while driving shelf
and [merchandising] appeal, according to Angela Adams, director of innovative
packaging solutions at Sonoco. Clear packaging windows can communicate trust,
authenticity, freshness, quality and a healthy or more nutritious product. Reliable
resealing technology promotes freshness and product integrity while delivering
convenience.
Functionality in pet food packaging has taken on a more complex meaning in recent
years—not only must it speak to ease-of-use for potential customers, but
manufacturers are now eyeing the space options provided by innovative packaging
design as [the] potential for their branding messages. “We’re seeing a trend among pet
food manufacturers towards the use of [square bottom] bags, which can be printed on
six sides including the bottom,” said Kevin Young, president, consumer goods
packaging, at Mondi North America. “This gives [pet food] manufacturers 360 degrees
of real estate to present their logos and brand promotions. Smaller square bags will
stand upright on shelves, while larger ones can lay horizontally on pallets in big box
stores. Consumers can see the brand from any angle.”

For many companies, the right packaging, such as a flat-bottom bag, [compliments] the
marketing campaign the brand has invested in, according to Mark Liberman, vice
president of sales and marketing for Peel Plastic Products Limited. “There is an
expectation from the consumer today that when they purchase a premium food, they
will have a premium experience from the first feeding to the last,” he said. “The flat-
bottom side-gusset package offers the brand owner the maximum of number panels to
share the brand’s message, important feeding tips, and other pertinent information, and
provides brand recognition from any number of display positions.”

Convenience, however, is the trump card of pet food packaging, combining the
desired functionality manufacturers require for their products with the ease-of-use
experience consumers crave. A product packaged in a resealable bag, for example,
can nearly serve as its own branding pitch. “Branding, design presentation, and product
differentiation are all important aspects [of] the pet food packaging market,” said APLIX
Inc.

“By bringing together these key elements, pet food companies are able to provide
innovative and premium products that respond to what consumers are looking for in a
package. Pet food market trends are continuously shifting towards innovative
packaging solutions to enhance the consumers’ experience.”

opening and closing, carrying and handling, to properly reflect the product’s quality.”
Among those features are specialized closures. “Maintaining freshness is critical to
consumers,” said Young. “Years ago you bought a bag, tore it open and poured out
some dog food. Now you have zip lock, Velcro, easy sliders and more to help seal in
freshness. For wet petfood, manufacturers are going to retort packaging that helps
ensure long-term freshness and shelf life.”
Pet food packaging is expected to continue to evolve with these key trends in mind,
according to the industry. “As technology improves, so will the convenience and
functionality of pet food packaging,” said Schueddig. “It will be an interesting journey to
see what type of packaging consumers accept for their pets.”
Consumers are always looking for the next big thing, according to Coveris. “Positive
changes attract attention in the first moment when a consumer is trying to decide on
which product to buy,” said the company. “Standing out on the retail shelf is critical in
that moment. Pet food manufacturers are increasingly listening to the feedback of their
customers and providing new food science options and visual packaging changes to
cater to the ever-changing preferences of that audience.”
And if proper attention isn’t paid to that audience, valuable marketing opportunities
might be lost. “I have heard several times, ‘I am not selling a package, I am selling the
food inside’,” said Treliving. “If this strategy was effective, we would only be faced with
aisles of products in black and white packages. Ask yourself: how many times has a
really innovative package launched a product ahead of the competition?”
Packaging, according to Adams, should enable the brand promise and product’s use
occasion. Packaging needs to connect with and educate the shopper on shelf or online
at the moment of purchase, but it also needs to deliver quality and freshness from first
opening through functional storage to using the last treat.
“The packaging solutions provided by converters who are uniquely committed to the pet
food industry continue to evolve to emulate or exceed the solutions and trends we see
on the human food side of the aisle,” said Liberman. “The most progressive converters
are consistently investing in new technology to offer solutions which address brands
owners’ needs to stand up and out on shelf, deliver a functional packaging, offer new
textures or finishes and most importantly keep the product safe and fresh throughout
the supply chain.” (Beaton, 2015)

Beaton, L., (2015, May 21). Packaging as branding in pet food marketing,Watt Global Media,
Retrieved from, http://www.petfoodindustry.com/articles/5193-packaging-as-branding-in-pet-
food-marketing

Pet treats continue to be a diversified, growing segment of the pet food market.

“Pet treats have always been a much-talked-about segment of pet food production.
They have yet to gain the market share numbers of pet food for either cats or dogs, for
many reasons—they can be seen by consumers as an “extra” in terms of their pets’
nutrition; there are so many options out there that no single type can hope to dominate
the treat market; price points can vary quite a bit depending on what type of treat and
companion animal manufacturers are aiming for.
Regardless of these challenges, treats continue to provide a growth opportunity for the
pet food market. According to Packaged Facts data (presented by David Sprinkle at
2015 Petfood Forum’s Petfood Innovation Workshop Opening Session, “Form and
function trends in pet treats”), in 2014 treats made up 16% of US pet food spending,
actually beating out value pet food (12%), though remaining behind regular and
premium pet food (see Figure 1).
Pet treats hold a small share of US pet food spending when compared to most pet food; however the 16% treats held
in 2014 did beat out value pet food spending.

This isn’t to say that pet owners aren’t purchasing treats. In 2004, 77.2% of US dog-
owning households purchased treats for their pets, while 40.2% of cat-owning
households bought treats for their felines (see Table 1). These numbers fluctuated
slightly in both directions between 2004 and 2014, settling on 78.1% of dog-owning
households and 46.5% of cat-owning households in 2014. According to IRI multi-outlet
retail data on mass-market growth for pet food segments, in 2014 dog
biscuits/treats/beverages grew 6.4% in dollar amount and 0.5% in volume, while cat
treats grew 7.7% in dollar amount and a significant 10.2% in volume.
The purchase of dog and cat treats by pet-owning households in the US has fluctuated in the last decade, but in the
long-term the numbers have increased—from 77.2% to 78.1% of dog-owning households and from 40.2% to 46.5%
of cat-owning households.

US consumers who purchase treats for their pets fall all over the spending spectrum.
According to Packaged Facts data, 28% of cat owners and 15% of dog owners spend
less than US$5 per month on treats (see Figure 2). But another 15% of cat owners and
17% of dog owners spend more than US$30 per month. The majority of cat and dog
owners, however, spend less than US$20 per month.
While monthly treat spending for pet-owning households varies, the majority of both cat and dog owners say they
spend US$19 or less on treats per month.

Overall, consumers say they’re spending more on pet products—a fact which may be
an advantage for pet treat manufacturers looking to increase profits. According to
Packaged Facts data, 51% of respondents to the statement, “I am spending more on
pet products than I used to,” said they somewhat or strongly agree with the statement.
Only 19% somewhat or strongly disagreed, with the remaining 31% stating that they
neither agreed nor disagreed—suggesting that if those consumers aren’t spending
more, they aren’t necessarily spending less, either.
The types of treats being purchased range from jerky to chews to functional treats and
beyond. According to Packaged Facts, 12% of cat owners and 27% of dog owners have
purchased pet jerky in 2015 (see Figure 3). Eight percent of cat owners and 31% of dog
owners gravitate towards rawhide/natural chews, 13% of cat owners and 36% of dog
owners purchase dental chews for their pets, and 56% of cat owners and 77% of dog
owners have purchased some other type of treat in 2015.
Unsurprisingly, the percentage of cat owners who purchase traditionally dog-centric treats, such as jerky or rawhide,
is far smaller than that of dog owners. However, the majority of both cat and dog owners say they have purchased
some type of treat for their pets in 2015.

Even the shape of pet treats can play a role in purchasing decisions. According to 2014
Packaged Facts data, 65% of cat owners and 39% of dog owners have purchased bite-
size bits/kibble-shaped treats for their pets. That shape is the largest purchase for cat
owners, with round/disc/cookie-shaped coming in at a distant second (14%). Dog
owners, however, are more varied: 47% of dog owners have purchased bone-shaped
treats, 29% have purchased stick-shaped treats and 28% have purchased biscuit/wafer-
shaped treats for their pets.
Plenty of pet food companies continue to take up the challenge of profiting in the pet
treat market.
Charlee Bear Products’ (www.charleebear.com) grain-free bear crunch dog treats are
disc-shaped and are wheat, grain, soy and corn free. A special manufacturing process
makes them less dense, offering a calorie-light crunchy treat suitable for training as well
as for fun.
Pet Tao LLC (www.pettao.com) offers food therapy Harmony treats and supplements
for both cats and dogs. These functional supplements focus on health and include Pork
Lung for pets with lung disease and skin allergies; Beef Spleen for pets with vomiting
and diarrhea and muscle problems; and Kidney for pets with kidney disease, arthritis
and hearing problems.

Courtesy Pet Tao LLC

Pet Tao’s treats and supplements focus on cat and dog health, including varieties to cover a number of ailments such
as lung disease, kidney disease, liver disease, allergies and arthritis.

Vets Plus Inc. (www.vets-plus.com) offers gluten-free Smart Fido USA supplements and
treats for dogs. The veterinarian-formulated lines include a range of gluten- and soy-free
products aimed at overall nutrition, joint and digestive support, calming or skin and coat,
and other common conditions.
Addiction Foods LLC’s (www.addictionfoods.com) Awesome Possum treats are suitable
for both cats and dogs. These kibble-shaped bites are all-natural, GMO-free and high in
omega-3.
Courtesy Addiction Foods LLC
Awesome Possum pet treats are made out of Brushtail, an agricultural pest in New Zealand with meat high in omega-
3 and -6 fatty acids. The animal is highly palatable and a quality protein alternative.

Delightibles (www.delightibles.com) offers gourmet cat treats made with wholesome

ingredients and natural antioxidants. The center-filled treats are crispy on the outside
and have a soft, creamy center. They are soy and wheat free.
Courtesy Delightibles
Delightibles gourmet cat treats come in chicken, turkey, tuna, salmon, beef and dairy flavors.

Caru Pet Food Company (www.carupetfood.com) offers bite-sized all-natural dog treats.
The chewy, baked treats are made with antibiotic- and hormone-free meat as their first
ingredient, plus blueberries and cranberries. The treats help promote strong muscles
and a healthy heart, according to the company.
Courtesy Caru Pet Food Company

Caru’s all-natural dog treats are formulated without grain, wheat, gluten, corn, soy, animal byproducts or GMO
ingredients”. (Beaton, 2015)

Beaton, L., (2015, June 17). Trends in pet treats, Watt Global Media, Retrieved from,
http://www.petfoodindustry.com/articles/5232-trends-in-pet-treats
References:

Beaton, L., (2015, June 17). Trends in pet treats, Watt Global Media, Retrieved from,
http://www.petfoodindustry.com/articles/5232-trends-in-pet-treats

Answer

Question 1. 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.

Generally, gourmet regular grain free new canine treats will have a great demand in exquisite
districts. Reasons being its costly, and premium brand which is in every practical sense not
inside the compass of middleclass or lower class people. Unmistakable people have better
purchasing power and they are more arranged to have varieties of pets. The change that the thing
is to be refrigerated exactly when it's open, will to certain degree support the explanation behind
offer of the thing.

Question 2. 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 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 be? Support your answer. How would the price vary
based on a price elasticity of 0.3?

There are certain demonstrates are be considered before the cost is settled. The association needs
40% advantage that suggests – 8 ounces of canine treat costs $ 2.97+ the association needs 40%
advantage so it gets the chance to be particularly after checks 4.17 $'s. A segment of the shippers
require 32% expansion that again if included gets the chance to be $ 5.17. Couple of various
traders require 25% expansion in this way making the advantage $ 4.89. As demonstrated by me
the cost should be $ 4.55. The conditions elucidated here show that the cost is less adaptable, in
light of the way that it's under 1(as said 0.3).

Question 3. 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.

Logo of the association should be a sound pooch having the sustenance in its mouth. Appealing
packaging, kids similarly love pets. Give a game plan of booklet with the pet care headings. Give
a complimentary bowl with the sack to manage the pet. Inside the given esteem structure its
sensible. Have distributions, measures, plugs on TV, electronic person to person communication,
web, go up against book, twitter, google notwithstanding et cetera.
Question 4. Discuss how the aspects of differentiation and the market?

The target market will be acquired by the association however two concentrations ought to be
seen as, that seems to be, and the thing is unmistakable. By and by a day’s everyone can't deal
with the cost of normal things. Refrigeration issue is also troublesome. So passing on the thing
wherever as pined for would be troublesome.

Remembering the ultimate objective to match the contenders the association should go for even
non-common however engaged things which are inside the traverse of normal nationals also.
Once the quality thing is hovered in the market mouth consideration does whatever is left of the
work.

Question 5. 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
the brand image and integrated marketing communication plan.

“Enjoy every bit of Pet hood”

- With Dog Treat

Should be the trademark as demonstrated by me since I think the association will give the whole
satisfaction to the customers.