Beruflich Dokumente
Kultur Dokumente
Mansi Srivastava
2019BLP029
BACKGROUND AND PROBLEM DEFINITION
First in show pet food, Inc. is a major producer of dog food for show-dog kennels in the U.S.
They are known for supplying unique dog food for show dogs called Show Circuit. They are
in middle of launching new brand of dog food named Show Circuit in Boston. The product is
organic and consists of 85% fresh meat, remaining 15% of highest quality fortified cereal and
no additives or preservatives. The marketing firm will be providing a detailed proposal to the
company’s executive. The intention of meeting is to know how to position their product and
also figuring out which introductory plan Show Circuit’s launch.
Introductory Plan A: Invest $500,000 for marketing and advertising. In doing so company
has to sell around 381,295 (Exhibit 3) cases of Show Circuit to achieve breakeven point. For
15% profit margin, the breakeven sales will be $4,869,173 (Exhibit 3), which gives us 11.2%
(Exhibit 3) of the total market share of Boston.
Introductory Plan B: Invest $700,000 for marketing and advertising. In doing so company
has to sell around 525,179 (Exhibit 3) cases of Show Circuit to achieve breakeven point. For
15% profit margin, the breakeven sales will be $6,706,535 (Exhibit 3), which gives us 15.5%
(Exhibit 3) of the total market share of Boston.
According to me First in Show Pet Foods, Inc. should go for introductory plan A as it
has lowered breakeven to achieve and is less risky when compared with $700,000
budget.
Exhibit 1:
First In Show Pet Foods, Inc. Mansi Srivastava
2019BLP029
Dog food sold in U.S in 2009 $10 Billion
Market Size = Total dog food sales X Dog’s population in Boston X Percentage of sales
through supermarkets
= 43.2 Million
Exhibit 2:
Broker’s Commission 7%
Exhibit 3: