Tyler Pet Food
Tyler Pet Food
Important elements for the brand would be 1) Notions of Premium quality product 2) Use of the Tyler Pet Foods name to establish it as a name 3) Professional quality product (reference to the dog show quality of this product would have to be dependent on the results of the market research)
Information Booklets. Because the product is new and it’s benefits are deep and real, the consumer decision process will have to be a reasoned one. One way to convey a lot of information is by attaching a holder to the freezer with information booklets that outline the advantages of DOGourmet food and have more complete medical evidence of it’s benefits and customer testimonials. It could even have information on dog shows. The booklets could have coupons to incentivitize the consumer into that difficult first purchase. The booklet paradigm can also be a way to stay in touch with the consumer about product developments and other information, and be a way of soliciting customer feedback via a business reply mail surveys. Drawbacks: There will be ongoing costs to publishing and distributing the booklets; store managers may resent the clutter in the store. 5. Use of breeders. Some marketing budget should be spent on a program to solicit endorsements from successful dog breeders and show people who know the product well and would be willing to endorse the product. With careful negotiation, these endorsements could be inexpensive as the relationships are likely already in place. Moreover, freezers could be installed at dog shows, hopefully capturing the attention. TPF has the opportunity to be “The Name” in dogshow and breeder food food and enjoy the full benefits of in-store promos Drawbacks: Again, ongoing costs. Because breeders are independent, there is the possibility of negative sentiment from which could hurt the reputation of the product. 6. Coupons. Coupons distributed in the booklets and in newspapers will incentivize people to buy. In addition, direct mailings to dog owners in areas near the stores that have had successful installation of a freezer in the neighborhood grocery store. This would allow very specific geographic targeting. Drawbacks: Mailings are a lot slower; rapid deployment is difficult to impossible. Decision Because there is no proof that the mass market will accept this product, this report recommends a more organic introduction of Tyler Pet Foods’ new product. We do not know if there is a non-professional market for a frozen dog food, and common sense of gut feeling is not sufficient to justify a launch and costly advertising campaign. Moreover, educating the consumer to look for their dog food in a section of the store they are not used to is risky at best and inadvisable in all cases. Moreover, a television ad campaign while the product is not completely installed in all outlets within the television market’s reach will result in potential customers being unable to find the product because it’s not in their local store. Spending the bulk of the budget on a blanket media advertising campaign is very risky. However, If we begin with rigorous market research, segment carefully, brand creatively, cohesively and powerfully, rollout in targeted areas, monitor results continuously, and stay in contact with our customers, we should enjoy a successful launch of this high quality yet unproven product into the consumer space. Almost as dangerous is the opposite problem: a successful launch will immediately attract the attention of the major producers and they will seek to eliminate TPF by predatory pricing and channel dominance. Therefore it is crucial to establish a niche that is impossible for the major labels to compete in or distribute in the same manner. Specialization around a professional image, reputation and close connection with the market are the key to a successful rollout and defensible market position.
Competition The competition is a set of massive corporations with well established distribution mechanisms. These companies have a global reach and are well entrenched. Their economies of scale allow them to have low operating costs as well as low unit costs for their products. Their products are heavily advertised. Grocery stores trust them to maintain reliable demand through their large scale advertising budgets.