2.1 Discussion: Devotional – The Bible on Segmentation and Target Marketing
1. You identified a company or industry of interest to use throughout your degree. As you think about these changing opinions and societal pressures, respond to the following questions.
a. How does that company or industry market differently to men vs women?
b. Is personal preference becoming both more important with more choices in the market of that company or industry while at the same time being an anachronism under the pressure that we should all be the same without distinction? Why?
c. How does marketing in that company or industry balance individuality with the range of ethical foundations in today’s highly diverse but also interconnected world?
2.2 Discussion: Research-based Peer Alternative Response to 1.3
1. Review the initial market analysis from your peer as submitted to the
1.3 Discussion
.
2. You will need to do appropriate research on the industry and category so that you understand them in order to make an educated analysis and recommendation for this section of the consultant’s report. It is important to start out with a thorough understanding of the category and industry. You should not rely on the original writer’s research and description of the industry.
3. You will provide a 250- to 350-word review to your peer as a post in the discussion forum. Your review must provide a different or alternative perspective, interpretation, conclusion, and/or recommendation for at least one (1) of the seven (7) elements noted in the assignment (these should be the 7 titled sections from the
Market Analysis Report Template
), based on your personal objective analysis of the category using credible sources. You do not need to have an alternative for all seven elements of the assignment, but your alternative may involve more than one element since many of them are related.
4. You will not discuss the original writer’s analysis or recommendation; all of your comments must be focused on your objective interpretation and analysis. You must have a distinctly different perspective and/or recommendation in your alternative response. In other words, you are looking at the same scenario in the same industry and/or category, but you are coming to a different conclusion such that any form of “I agree” in your review is not an option.
5. You must cite at least 2 credible sources that were not used by the original writer to support your interpretation and recommendation.
6. Cite your work per current APA standards, however, indenting of the references is not required due to the discussion board format. (See the
APA Style Guide.
)
2.3 Discussion: Research-based Marketing Plan Initial Proposal – Product Development and Market Demand
1. Construct a proposal to NextEra Energy Resources Inc. of 1000 words (+/- 50 words) using at least 4 credible and objective sources not provided as resources in the course in your analysis, plus at least one source provided in the course reading list.
2. Use the titles in the Market Analysis Report Template to provide structure for the following four elements in your consultants’ report:
a. Product Development
i. Key differentiating characteristics of the offering
ii. Analysis of demand in the market
b. Market Segment Demand
i. Quantitative data used to determine projected demand
ii. Methodology used to determine demand
3. Detailed Requirements:
a. Product Development
i. Fully describe the offering that fits the positioning from the prior proposal. You need to state the specifications, characteristics, and/or features of the offering which will differentiate it from other competitors. You should focus on what your product is, not what the competitive offerings are because that was covered in the prior section.
ii. Remember that these weekly sections form one larger consultant’s report. Each section must be internally consistent with other sections of the paper regarding where and how your proposed offering fits the identified opening in the market. If you find that your prior positioning was incorrect or not suitable, you are allowed 100 additional words in this section of the report as an introduction to state what is being changed and why it was changed
iii. Do not describe the product development process except as you describe the product. This means there is no introduction to or discussion of the theory of the product development process. You are writing a report to executives who understand the process, so it does not need to be discussed. Your consultant’s report immediately discusses the proposed product and why it is being offered as designed. You should briefly discuss how the offering will be finalized if you believe your initial idea is not final.
b. Market Segment Demand
i. Provide a quantitative analysis to determine demand in the segment of the market that your proposed offering will fill. Your client does not want market demand for the entire industry or category; it only wants the demand for the segment that is being targeted. For example, a company introducing a new diet cola would not discuss the demand for all beverages, it would only discuss the demand for diet colas. This section of your report will be highly quantitative and multiple charts and graphs are likely to be helpful in conveying your data; one chart or graph is required. Your analysis can be in dollars or units sold but it must result in a specific forecasted demand in the same type of measurement.
ii. Include at least one chart or graph indicating the current and projected demand
iii. Fully describe the methodology used in determining demand including data sets used, statistics or modeling formulas applied to the datasets to forecast future demand and any changes or modifications made to the formulas and resulting numbers based on your interpretation of them (e.g., rounding, adjustments to trends).
4. Cite your work per current APA standards, however, indenting of the references is not required due to the discussion board format. (See the APA Style Guide.)
Market Analysis Report: All-natural Dog and Cat Food
Positioning Defined
Positioning is the process and mindset of finding unique ways of penetrating a competitive market. The key question is “What makes us unique?” in a vastly competitive market. The word unique does not necessarily refer to the product – it is a more holistic term that should be applied to market penetration. Technology has given the world access to more products and substitutes than ever before, creating a high-demand for market positioning that not only solves a problem or fulfills a need/want, but also attracts and holds the attention of the consumer (Riles & Trout, 2000).
Market Description
The all-natural dog and cat food market has taken off in the wake of the COVID-19 pandemic, with many people finding solace in isolation by adopting animals. The human to animal psychological bond with these animals has never been higher, considering the relative amount of time spent during quarantine and time at home with the animal. With this escalated bond and accompanied desire for high-quality food products, the market for all-natural pet food has never been stronger. In fact, total pet food market expenditure is anticipated to rise from 100 billion in 2019 to 168 billion in 2029
(Bedford, 2021)
. The market has seen dramatic shifts in retail channels, with organizations like Amazon now providing either direct or secondary transaction services for pet food.
Analysis of Current Positioning in the Market
Current market competitors with significant position in all-natural pet food include Blue Buffalo, Hill’s, and Nestle Purina. These firms offer various levels in the all-natural sub-category, with Blue Buffalo and Hill’s being predominately focused on this market niche (Blog Author, 2018).
Blue Buffalo is a General Mills brand that focuses almost exclusively on all-natural foods with real meat as the first ingredient. The company also produces limited-ingredient offerings and breed-specific offerings for more esoteric diets. In 2020, Blue Buffalo saw a quarterly surge of revenue of $4002.5M to $5,023M in Q4, a 25% increase. Total General Mills pet food revenue in 2020 was $1,694.6M. This undoubtedly is due to an increase in demand for high-quality pet food as owners have turned to pet relationships during isolation (Naish, 2018).
· The adult, puppy, and senior BLUE Life Protection formulas currently retail at $64.99 for a 30lb. bag, or $2.17 per pound. This is an all-natural product utilizing real meat, vegetables, and fruit.
Hill’s Pet Nutrition also focuses on all-natural dog food, along with prescription dry and wet foods available through veterinarians. Hill’s is commonly viewed as a top-tier offering and in 2020 the company’s revenue grew in Q1 to $719M, up from $600M in Q1 2019, an increase of 19.8%. The total 2020 revenues were $2,525M. This again, is most likely due to owner bonding and desire to provide higher quality foods.
· Hill’s Science Diet retails for $71.99 for a 28.5lb bag, or $2.52 per pound. This is also an all-natural product with real meat; however, it does not appear to contain real vegetables or fruit.
Nestle Purina operates a niche brand of all natural retail food called Purina ONE that appears to aim at a more budget-conscious audience while still providing all-natural offerings. In 2020, Nestle had a whopping $15,422M in pet care revenues.
· Purina ONE natural dog food contains real chicken as the #1 ingredient as well but does appear to contain a higher fat and grain content than competitors. The food retails for $43.99 for a 31.1lb bag, or $1.41 per pound.
Projections for the Market
While pet owners are likely to continue feeding higher quality foods, the gradual return of workers to jobs could lead to some neutrality in sector growth, though nothing is for certain with the current economic climate. In the short term, the space offers a solid entry into what consumers historically considered a luxury but have recently started prioritizing as more of a need (Semple, 2020).
Current overall pricing trends on dog food are expected to increase with current high inflation numbers. Though the Fed is planning to taper money printing and increase interest rates, this process will take a long time to carefully implement and monitor. For the short-term prices are expected to increase due to a general shortage of workers, transportation costs, and packaging costs. As human food is currently sitting above 15% inflation by category, similar movement can be expected in ped nutrition and generally anything in the supply chain.
Recommended Position for JGJ Inc.
Based off this market assessment, entering the space is advisable with some changes to business model that would both increase consumer convenience and lower operating costs. First, the data below shows that Chewy and Amazon carry the online market share by a very sizable amount. It would be advisable to base a business model off this type of delivery, removing the need for middle pieces of the supply chain.
Social media and online marketing narratives are extreme relevant and there are plenty of opportunities to market an online presence without the need real estate beyond initial storage warehousing.
Additionally, the product needs to address the “nutrition war” between brands by simplifying product packaging and marketing. Including abrupt and direction information regarding high quality ingredients with a “no filler” approach to both product and advertisement would be advisable.
(Bedford, 2021)
The target customer for these products includes most generational demographics from Gen Z to Baby Boomer, with most of the market share likely going to Millennials. These buyers would be mostly middle and high class in socio-economic status. Likely, these folks have also or do also currently work from home or are retired. These buyers would also likely utilize an online service for other products, making the entry into an online market compelling.
References
Bedford, E. (2021). U.S. pet food industry – statistics & facts. Statista. Retrieved from https://www.statista.com/topics/1369/pet-food/#dossierKeyfigures
Blog Author (2018). Top 10 largest pet food manufacturers in the world 2018. Technavio Blog. Retrieved from https://blog.technavio.org/blog/top-10-largest-pet-food-manufacturers
Kanzler, F. & Foden, A. (n.d.). Differentiation and positioning: What does your business stand for? MarketingProfs. Retrieved from https://www.marketingprofs.com/opinions/2015/27733/differentiation-and-positioning-what-does-your-business-stand-for
Naish, D. (2021). 15 largest pet food manufacturers in the U.S. 2021. Top Dog Tips. Retrieved from https://topdogtips.com/largest-pet-food-manufacturers-usa/
Ries, A., & Trout, J. (2000). Positioning: The Battle for Your Mind, 20th Anniversary Edition. McGraw Hill.
Semple, J. (2020). State of the US pet food and treat industry, 2020. Pet Food Processing. Retrieved from https://www.petfoodprocessing.net/articles/14294-state-of-the-us-pet-food-and-treat-industry-2020
Staff Author (2021). The global pet food market is projected to grow from $97.47 billion in 2021 to $136.82 billion by 2028, at a CAGR of 4.96% in forecast period, 2021-2028. Fortune Business Insights. Retrieved from https://www.fortunebusinessinsights.com/industry-reports/pet-food-market-100554
