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DOG FOOD

Aarohi Dhir PGP 180 01

Aditi Mehrotra PGP 180 04

Alina Hasan PGP 180 07

Kirti Nuwal PGP 180 32

Kshama Singh PGP 180 33

Pooja Jha PGP 180 45

Prabhat Gupta PGP 180 46

Rebecca Toms PGP 180 55

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CATEGORIES OF DOG FOOD

PREPARED Dog Treats and Mixers

Dog Mixers

Dog Treats

Dry Dog Food Economy Dry Dog

Food

Mid-Priced Dry DogFood

Premium Dry DogFood

Wet Dog Food Economy Wet Dog

Food

Mid-Priced Wet Dog

Food Premium Wet Dog

NON PREPARED

Home Cooked

ScrapsRaw

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TREATS AND MIXERS

Dog treats and mixers are specialtypes of dog food given as a

reward, not as a staple food

source.

Examples: Stylam Choostix,

Dentastix

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TREATS AND MIXERS-SEMI MOIST

Commercial dog foods shaped like porkchops, burgers, or other meaty foods arecalled semi-moist foods.

These kinds of foods are the leastnutritional of all dog foods and containmany artificial flavours and colourings.

They can be given to your dog as anoccasional treat, but they should not be

considered a diet in themselves, as theydo not provide the nutrition that the puprequires.

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DRY/KIBBLE

Dry food is the most economical type ofcommercial dog food, and this is thereason that many owners choose it fortheir dog.

It also lasts for a long time and doesnot need to be refrigerated.

Dry food can also help to keep thedogs teeth healthy, since chewingcrunchy dry food helps to reduce tartarbuild up.

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WET/CANNEDMost dogs love canned, or wet, food, and it has

a long shelf life, and is easy to find at anysupermarket, but it can be expensive.

For some owners, its definitely worth theexpense, but not every brand of commercialcanned food provides the protein that the pup

needs.

Indigestible protein will pass through the dogssystem without being broken down intoabsorbable nutrients, so it's pretty much uselessto him.

Also, most canned food is about 75 percentwater. The higher the water content, the lessnutrient content, so the more food your dog mustconsume in order to get the nutritional value hisbody needs.

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HOME COOKED

Some dog owners value the ability to be incomplete control of their dogs diet.

A home-cooked diet allows the owner to know forcertain exactly what is in every thing their dog eatsand to be absolutely sure that his nutritional needsare being met.

Feeding the dog a home-cooked diet is timeconsuming and expensive, but many owners thinkthe extra effort is worth the peace of mind theygain.

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RAW

A raw diet consists of raw meat,preferably with some bones (nevercooked bones, only raw) and organsmixed in, as bones are a natural

source of phosphorus and calcium.

This type of diet works well for manydogs, since dogs have shortintestinal tracts and strong stomachacids, both of which make it easy forthem to consume and digest rawfood

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Dog food is expected to grow by a strongpositive constant retail value CAGR of 14%

Although many players are already there in

the market, Indian pet-food market is still inits nascent stage. Almost all global playerslike Nestle, Royal canine, Hill, Lams, Ralstonare fighting it out in the market. Pedigree isconsidered to be the brand that is expectedto lead this market.

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Competitor analysis is done keeping in mind

1) marketing segmentation

2) product differentiation

3) Communication strategy

4) Product line 5) Price

6) distribution

Leading brands used for analysis- pedigree (marsfood), royal canine(mars food)and petcare (tetragonchemie pvt. Ltd.)

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1) Pedigree

Market leader, still competes with home-

cooked food

market segmented into high-end, mid-

range, and low-end categoryPush strategy in use

Product differentiation: quality of food

Communication: focuses on the fact thatdogs have a different digestive system and

should not be fed home-cooked food

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The slogan used for many years forPedigree dog food is "Top breeders

recommend it" with a current slogan of

"We're fordogs internationally

However, when launched in India the tagline was we care for the dogs

Call their product as really good food,

hence value proposition is the quality offood.

TV commercials used for communication

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Products- all the products are available for

adults and puppies separately.Pedigree launched vegetarian dog food in

India.

1. daily dry food for dogs2. daily wet food for dogs

3. Pedigree professional- specific food for

weaning, active, small and large breed dogs

4. snacks and treats- dentastix, rodio, springo5. Gravy range- new category recently

introduced, not available with competitors.

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pricing-

1 kg dry dog food costs Rs.130(average).Special meals cost more

Distribution-Pedigree when entered Indianmarkets used pet stores as a point of sale.

Retail store owners were made to advocate

the product.

Now it is available in retail stores (Big

Bazar), pet-stores and medical stores.

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2) Royal Canin

Market segmentation- only for high end customers

Product differentiation- Focus on the nutritional

value (carbohydrates, lipids, vitamins, proteins etc.)

emphasis on clinical formulation, testing,manufacturing and marketing of a wide range of

breed-specific and symptom-specific diets for dogs

and cats

Composition of food ensures well-being and health

of every dog, according to his age, his size, his

physiological condition and his breed.

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Pricemore expensive than pedigreeeg. 2 kg of Royal Canin Mini Adult costs Rs. 766,

which is a little more than twice the price of adult

dog food by pedigree.

Distribution- The company shifted its marketingand distribution focus away from the supermarket

circuit

And shifted the appeal to specialist retail pet storecircuit and garden and hardware centers, many of

which featured large pet departments, while also

continuing to target breeders and veterinarians.

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3) Tetragon Chemie Pvt. Ltd (PETCARE)

PETCARE is an independent business division ofTetragon Chemie Pvt. Ltd., that exclusively caters

to the needs of dogs and cats and specific

demands of pet lovers across the countryIndian company to export pet care products in 30

countries

Acquired by Provimi first and then later by pfizer.These International brands instead of competing

with the Indian brands decided to overtake them.

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Market segmentation- serve only dog lovers.Treats all the dog- lovers equally

Product differentiation- PETCARE holds the

distinction of being the first to introduce

binomial anthelmintics, acaricides, nutritionals,

therapeutic supplements and pet food in IndianMarket.

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Communication- Do not believe in traditional

marketing and communication means, but

rely building emotional relationships with

customer and the pet.

Highly dedicated to pet care. Form pet clubsfor active involvement of pets and pet lovers.

Encourage involvement of pet lovers by pet

astrology clubs, sharing pet bulletiens, givingbreeding information, FAQs for new dog

owners, have dog memberships and

competitions.

motto is "YOUR PET. OUR CARE.

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Product- they manufacture pet care

products(shampoo, soaps) , pet medicines

(Drontal Plus worm killer tablet)as well as pet

food

dry dog food available as nutirpet infant,

nutripet junior, nutripet adult, nutripetsupra(international standard protein and

calcium rich pet food)

Price- Rs 440 for 3kg. Therefore, cheaper

than royal canine, but comparable to pedigree

dry dog food.

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product Dry & wet food,

snacks, treats

Dry food,

shampoos,

medicines

Nutritional food

price 130/kg approx 110/kg approx 250/kg approx

segment Low, medium,

high range

No segmentation Only for elite

Retail valueshare

%

42.4 11.1 4.4

Tag line We care for the

dogs

Your pet, our

care

Breed health and

nutrition

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MARKET ANALYSIS

Market Demand

Table 1 Dog Owning Households: % Analysis 2005-2010

Source: Official statistics, trade associations, trade interviews, Euromonitor International estimates

Table 2 Dog Population 2005-2010'000s of animals

Source: Official statistics, trade associations, trade interviews, Euromonitor International estimates

Year 2005 2006 2007 2008 2009 2010

Households (%) 2.7 2.8 2.8 2.9 3.0 3.2

Year 2005 2006 2007 2008 2009 2010

Dog

Population

5972.8 6241.5 6480.4 6824.4 7296.8 8026.4

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MARKET

Potential Market: potential market is the set ofcustomers who possess some interest in a product or towhom the product is potentially relevant

The Population of India = 1155347700 (source : world bank)

Number of members per household = 4 (assumption) Number of households owning a dog = 3.2 % (Euromonitor

International : Country sector briefing)

Hence number of people owning a dog = potential market =

(1155347700/4)*(3.2/100) =9242781.6

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Target Market: consumers represent potential prospects for the product plusexisting customers

The dog food market is divided into 3 major markets Dry Dog Food

Wet Dog Food

Dog Treats & Mixers

Total volume of market = 1.3 % of dog owners use prepared food(table 3) = (1.3 /100 ) * (9242781.6) = 120156.1608

Total volume of consumption (table 4) = 14383.4 Market of each category :

dry = 12892.9 / 14383.4 = 89.6%wet = 65.5 / 14383.4 = 0.5 %treats = 1425 / 14383.4 = 9.9 %

Other Features: dry dog food preferred over wet dog food as it is perceived to be healthier,

cheaper, convenient in serving, more brands n variety available, stored forlonger period

dog treat expected to grow by 13% due to growing awareness

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Current Market: consumers who are currently purchasing inthe mark Current Consumers = 1.3 % of dog owners = (1.3 /100 ) * (9242781.6)

= 120156.1608

assumption : entering values in Rupees instead of Dollars , takenaverage cost across brands

Dry = Rs250/- ; Wet = Rs300/-; Treats = Rs1500/-

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Current Competition: firms who are currentlyserving existing customers in the market.

Top 3 Firms

Total Volume(2010) = 14383.4 tons Mars = 6098.6 tons(42.4%)

Tetragon = 1596.56 tons(11.1%)

Ruskin = 1165.05 tons(8.1%)

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Total Sales(2010) = 2087.1m

Total Sales for Mars = 884.93m (42.4%)

Total Sales for Tetragon = 231.67m (11.1%)

Total Sales for Ruskin = 169.05m (8.1%)

Total Customers = 120156.1608 (Table 1)

Mars =50946.212

Tetragon = 13337.34

Ruskin = 9732.65

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TOOL ANALYSIS RESULTS

The current market penetration is very low as compared to its

size.

This implies that future market potential is very high.

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The dry dog food market makes for 93% of the total market value.

However, the best opportunity lies with the treats market as itgrowing at a very high rate of 13%.

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Customer Share

Mars

Tetragon

Market share

Dollar Share