The Marketing Mix of Pal Dog Food - Case Study Example

Pal dog food Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction This report aims to give the results of the research that I did research in the Australian market which is the pal dog food. This food for dogs is so common in the Australian market (Mirren & Bieber 2010)). This food has a sweet smell that can attract any dog. This food is made in Australia to cater for the needs of the Australian dogs and beyond. The market in Australia has been changing regularly, which has forced many organizations to conduct research in the market to know how best they improve their performance in the market. Also competition has been stiff leading to scramble for the market share. In this regard firms are trying to maximize their output and minimize input through effective scanning of the environment. Pal dog is majorly manufactured by master foods which also manufactures other foods the pal dog food. Pal dog food provides nutritious elements required by the dog. In this report I will discuss about the target market for pal dog foods and the needs of this target market. I will also discuss the marketing mix of the product which is the product, place, price and promotion of the product. Furthermore, I will discuss the competitive advantage and how the marketing mix elements are applied by the organization to gain competitive advantage. Finally I will evaluate the strategies which are used by the organization and if the firm has successfully implemented the marketing mix to gain the competitive advantage. The target market of pal dog food Due to changing consumption habits of dogs in Australia there was a need to develop pal dog food (Kennedy 2011). The target market for this product is the people who keep dogs. The majority of the dogs which consume this food are kept in cities therefore the target market will people living in big cities like Sydney. However the cities will only provide 80 percent of the target market while the other 20 percent target market will people in the rural areas who keep dogs. Besides the eating culture of the dogs in Australia they will also get adequate nutrients because the food is rich in proteins and vitamins. The market will further be segmented a according to demographic factors, behavioral factors and geographical factors (Kottler 2000). Geographical factors The target market will be segmented into urban market and the rural market (Kottler 2000). The urban market will provide about 80 percent of the target market and the rural market will provide 20percent of the target market. The purpose of the segmenting the market into rural and urban areas is to be able to develop appropriate pricing strategies for each segment as well as to identify the different needs of each market segment. Behavioral factors The dog owners have different behaviors which lead to different consumptions of the food (Blythe 2001). The dogs themselves can change their eating habits and this can lead to different segments according to the behavior of the dogs and the owners. For example some dog keepers would like their dogs to consume large volumes of the pal dog foods like 400 grams in a day while others would their dogs with 200 grams in a day. This different consumption of pal dog food segments the target market into heavy consumers and little consumers. Geographical factors The target market will be divided according to factors such gender and age of the consumers (Blythe 2001). The market will be segmented into male and female dog market. It market will be segmented into old dogs segment of age 10 years and above and young dogs segment of age between 1 year and 10 years. Old dogs will be in their segment and young dogs will provide another segment of the market. The needs of old aged dogs are different from young ones and the needs for female dogs maybe slightly different from the needs of the male dogs. Therefore these different needs led to different segments in terms of age and gender. The marketing mix of pal dog food The marketing mix involves the 4Ps which are the product, place, price and promotion as shown in appendix A1 below. The product The product I chose for this research is pal dog food which a food for dogs manufactured by masterfoods in Australia (Mirren & Bieber 2010). I chose this product because currently it is the highest and most valued food for dogs. It has a sweet smell for dogs and 90 percent of the dogs in Australia prefer this food therefore the food is dominating in the market. The product meets the needs of dogs by providing proteins and vitamins which are essential for dogs. Also the product is of different flavors and provides a balanced diet for the dog because each tin contains beef and chicken pieces which smell so sweet to attract any dog. The product is of high quality which maximizes the income of the customer. Pal dog food is a convenient product (Lings 2000). The product is often bought as a daily meal for dogs. This product is convenient because the customers plan to purchase the product and it is not bought by just coming across it. The product can be found in shopping places and therefore the customer does not have to seek and find where the product is found. The product is found in the supermarkets like the Countdown supermarket and Cole’s supermarket. The price of the product is convenient meaning that it can be afforded by many customers for their dogs. For instance pal jelly which is packed in 385 grams costs $3.58 which is not so expensive and can be afforded by many households for their pets while pal Gravy a pack of 4.62 kilograms costs $7.20. The core product of pal dog food is the benefit that the customer gets as a result of buying the food like maximizing his or her income and quality of the product (Bebco 2000). The actual product is the translation benefits of the product to actual purchasing of the product from among the many products in the market which can serve the same purpose. Finally, the augmented product of pal dog food is the general benefits that a customer derives from buying the product for instance free sample (Bebco 2000). This product is effective in the market because it takes into consideration all the needs of the customers which include quality product, different quantities of the product like 250 grams and it takes into account the income effect of the customers in terms of effective pricing of the product. The packaging of the pal dog food is attractively done in tins and bags (Kennedy 2011). The bags are of different sizes for example there is a tin of 500 grams and 750 grams. This packaging helps the food from being affected by humidity. The tins and bags are of good quality to ensure that oxygen and other gases do not penetrate into the food and spoil it. The bags are made in such a way that they keep oxygen and humidity out from penetrating into the bags to spoil the food. The bags and the tins have some bars which show the manufacturing and expiry date so that the customer can know the kind of feed he or she is feeding the dog. The packaging is done in different sizes so as to ensure that different quantities needed by different segments are met. The market segment that purchases in small quantities like the low income earners can purchase smaller quantities of 500 grams and the high income earners will purchase the food in large quantities like the 3 kilogram tin. This packaging is attractively done to please the eyes of the customer as shown in the diagrams below. The product life cycle of pal dog food is at the maturity stage. This is because the product has been in the market since 1950s. This period is long enough for a product to undergo all the product life cycles from introduction to decline stage as shown in the appendix A2 below. The product promotion at this stage is not so vigorous because everybody in the market is aware of the product and its features as well so there is no need of re-advertising the product frequently because it will make less impact (Joseph 2011). Price on the other hand is very stable in the Australian market and does not keep changing. The uniqueness of the pal dog food is in the different flavors made which are chicken, lamb and beef flavors. This makes this product unique from others. Promotion The pal dog food is well known throughout Australia and fewer efforts are made to promote the product. Since the product has been in the market for a long time, advertising is just done to remind the customers that the product still exists. At this stage of the product life cycle promotions are needed occasionally for example when there is price change and any features attributed to the product (Joseph 2011). The impersonal communication channels used to promote the product are using Television channels, advertisement through radios and through posters. The commercial television channel used to promote the product is TV4ME. A large audience is reached through Television network because many households own Televisions and when the advert is made in the evening many people can be reached while watching the Television programs. Furthermore the advertisement is done through radio channels like the capital radio network, raw FM and valley FM community. The radio channels also provide a wide coverage area and reach many customers at the same time. The firm also uses posters as a means of impersonal communication. The posters are placed strategically at points where many people can see the advertisement concerning the pal dog food. Nice drawings and pictures are made on the poster to attract attention of anybody passing along that road. The above means of communicating the product have been successful in reaching out a large number of customers and they are cost effective so they don’t add costs of the product to increase the price of the product. Another means of communicating the product is through personal selling (Randall 2001). The product is communicated through a word of mouth from the seller to the potential customers. The sales people move from place to place explaining to people the importance of the product and how effective it is and probably the reason for making the product unique. Finally, pal dog food is communicated through internet where advertisements are made about the product. For instance the videos of pal dog food are put on you tube and many internet users can are briefed about the product on the internet. All the above methods of promoting the product are effective as they are applied occasionally because the product is at the maturity stage in the life cycle. They can reach a large geographical area and are less costly when compared to advertisements like in the newspapers. The information contained in the communication includes; new product flavors in the market change in prices, quality of the product and outlets where the product can be found. At this maturity stage, promotion is done occasionally unlike when the product is in the growth stage. This is because the product is already in the market and the customers are aware of the product because they have been using it so they may not need much promotion. The price Prices for convenient products in Australia are relatively affordable. This implies that the prices of pal dog food are not high. The price should be kept moderate to ensure that the firm attracts and maintains customers. The price of this product is almost similar in the market segments in Australia. The pricing strategy used by the firm is the competitive pricing strategy (Assail et al 1995). This strategy focuses on how the firm can compete effectively for the market share and be able to get a competitive advantage. The price is relatively than those of the competitors and this attracts many customers to the firm’s product because of the limited financial resources. Prices vary according to the market segment. The market segment for high income earners like the business and government officials pay more than the class of low income earners. For instance in high income earners, 500grams can cost $4.10 while in low income earners segment the same quantity will cost $3.58. This pricing criterion is based on discrimination. Prices also vary according to the circumstances for example the product can cost a half of the market price during promotions. This pricing strategy is consistent with the product life cycle because at maturity stage of the product pricing strategy should be competitive so that the firm can make profits by competing effectively for the market share. According to the research I conducted in two supermarkets downtown and Cole supermarket, the prices of pal dog food are shown in the tables below; Product size Price at Coles Price at Downtown 100grams $1.20 $1.03 200grams $1.32 $1.31 400gram $3.75 $3.70 500gram $4.10 $4.15 600gram $5.21 $5.25 The place The strategy of distributing pal dog food is through indirect distribution. The food is distributed through intermediaries (Lings 2000). From the firm, the food is distributed the wholesaler to retailer and finally to the consumers. The wholesalers of pal dog food are the downtown and Cole supermarkets. From the wholesalers the food is distributed to retailers who then distribute the food to the consumers. This strategy was chosen because the product has; many customers and therefore it could not be 0easy to distribute the product directly to the consumers without intermediaries. The downtown supermarket had shelves of the product packed as shown in the appendix A3 below. This distribution strategy satisfies the customer needs in that the food is always made available to serve the demands of the customers. This strategy provides different volumes of the product and thus the customers’ different quantity requirements are met. Furthermore, ensures that the product is brought near to the customers’ disposal which meets the customer requirement of wanting the product near his or her disposal which maximizes the income by not traveling far distances to look for the product (Dev & Schultz 2005). Finally this strategy is appropriate at the maturity product life cycle because there are many customers who need the product for their dogs hence the outlets should be many. Competitive advantage Pal dog food has been in the market for over 50 years and has been able to gain the competitive advantage in the market. The firm has been able to gain the competitive advantage by effective application of the marketing mix 4Ps place, product, price and promotion (Dann 2007). Pal dog food has stood out and differentiated from all others because of its quality and variety of brands. The most common flavors in the market are the chicken flavor, beef flavor and the lamb flavor. These flavors are of high quality and therefore they meet the customer requirements for their dogs. Another factor which has helped pal dog food to get competitive advantage is the long existence in the market. The product has been in the market for over 50 years and therefore its attributes are well known by the customers. This gives it an opportunity to have many customers than other competitors’ products which might have come later in the market. Pricing on the other side has led to the competitive advantage of pal dog food. The pricing strategy all through the life cycle stages has been convenient (Bebco 2000). For instance pricing at this maturity stage is aimed at making profits by attracting and maintaining customers. The price is appropriate for each segment like the rich can pay higher for the same quantity of the product than lower income earners. The distribution strategy avails the product near to the customer premises hence there is no need of travelling to search for the product. This strategy brings in a competitive advantage in that the product is brought near to customers than those of the competitors hence it can be easily accessed than products of the competitors. In this respect the product gains competitive advantage and sale more in the market. The success evaluation of the firm The firm according to the research has been able to gain competitive advantage in the market because it has differentiated its product from those of the competitors. The quality of the product makes it stand out and attract many customers who become satisfied with the product. The pricing of the product is appropriate for many customers. The prices vary according to the circumstance like during promotions and the segment of the market (Ertimur & Venkatesh 2010). Low income earners pay less than the high income earners so each customer is able to buy the product according to the income constraint. Promotions done are effective and are less costly. Because this product is in the majority stage promotions are done occasionally which reduces the expense on the cost of the product. The firm has been able to meet the different requirements of the customers through market segmentation (Ahmed & Rafique 2002). The dog consumers are segmented into male and female and each gender has its own requirements and flavors therefore the product meets these needs by manufacturing different flavors. The distribution of the product has also enabled the firm to succeed in selling the product. Pal dog food is distributed through wholesalers to retailers and finally to customers. Therefore this distribution transports the product near to the customers’ premises where it can be easily accessed. Finally, packaging of the product is made in such a way that it is protected from the environment. This makes the pal dog food to last for a along time without going bad for the customers to feel the loss. Conclusion This research has proved that market research is so significant for the products in the Australian market. It helps a firm to review its success and develop strategies that can enable it to compete appropriately for the market share. The marketing mix elements which were investigated in this research were the product, place, price and promotion. The firm has succeeded in the market because it developed strategies to defeat the competitors like pricing and product promotion. Finally the organization gained competitive advantage by manufacturing quality product and of different flavors to meet different needs of different market segments. References Assail, H. Reed, P & Patton, M. (1995). Marketing: principles and strategy. Australia: Harcourt Brace. Ahmed, P. & Rafique, M. (2002). Internal marketing: Tools and concepts for customer Focused management. Oxford: Butterworth Heinemann. Bebco, C. (2000). Service intangible and its impact on customers’ expectations of Service quality, The journal of service marketing, 14(1), 9-26. Blythe, J. (2001). Essentials of Marketing, London: Prentice Hall. Dann, S. (2007). Competitive Marketing Strategy. Sydney: Pearson. Dev, S. & Schultz, D. (2005). Marketing Management, Journal of Marketing, 14(2), 36-42. Ertimur, B. & Venkatesh, A. (2010). Opportunism in co-production: Implications for Value Co-creation, Australasian Marketing Journal, 18, 256–263. Joseph, K. (2011). Integrated Marketing Communication: A Catalyst for the growth of business management. The Social Sciences, 6(2), 64-73. Kotler, P. (2000). Marketing management. New Jersey: Prentice hall. Kennedy, G. (2011). Pal dog food. Retrieved 8th May 2013, Online http://www.youtube.com/watch?v=lsn17SbukRY Lings, I. (2000). Internal marketing and supply chain management, The journal of services marketing, 14(1), 27-43. Mirren, H. & Bieber, J. (2010). Pal complete dog food. Retrieved 8th May 2013, http://forums.digitalspy.co.uk/showthread.php?t=1413079s Randall, G. (2001). Principles of Marketing, 2edn. London: Thomson Learning. Appendix Diagram A1: marketing mix Diagram A2: Product life cycle of pal dog food Diagram A3: arrangement of pal dog food in shelves Read More