PEDIGREE GROWTH STRATEGY (A) Case Study Solution
Porter’s Generic Strategy
company should focus on a specific niche market and Pedigree has products for both ends and it is facing competition in both end at the low end it has competition with local labeled dog food and at the high end it has major competitors that provides high quality food for specific niche markets. In addition to this, the company could also focus on cost leadership or whether it go for focusing on differentiation technique. (See Appendix-2)
Ansoff Matrix
Ansoff matrix is the market expansion grid that helps in analyzing and planning growth strategies for the business. It is based on four basic strategies market penetration, product development, market development and diversification. The market penetration strategy says that in order to penetrate in the market the company should decrease its prices and make competitive pricing strategy and increase product promotion for expanding market for the existing products but for Pedigree in the war of price and an anticipating increase in prices is challenging and difficult to decrease the product prices. While, product development strategy requires thorough research and development for improving the products and launching new innovative products Pedigree is working on R&D to develop and introduce new and improved products.
The market development strategy involves exploring new markets for the existing as well as the new products. Although, Pedigree has explored many countries of the world market but it has the option to go into the emerging markets and explore their new markets for its existing products. On the other hand, diversification strategy provides the two options related; diversification in the existing products line or unrelated diversification; diversification through moving in a new product’s manufacturing that is unrelated to the existing products. Pedigree should use the related diversification through producing a range of new innovative more nutritional organic dog foods. (See Appendix-3)
Solutions
On the basis ofabove detailed analysis, the most prolific possible solutions have been formulatedand discussed to design an effective marketing plan for the year 2003 to achievehigh returns and market share in this competitive world.
Solution #1 (Potential Markets)
The First solution proposes an effective plan for enhancing pedigree’s market share by approaching new potential markets. The emerging potential markets could be searched internationally or nationally. Diversification in the product line could be considered as another way for market expansion. It is also recommended that the company should come up with new plans to increase awareness about pet animals and their food ingredients. The company’s competitive advantage is its food ingredient which should be discussed in detail with potential customers.
Solution #2(Effective Marketing Plan)
The second solution suggests that an effective marketing plan should be developed to cope up with the increased competition. The firm’s productivity directly influenced by the large number of buyer and seller. To grab customers’ attention, more new marketing tactics should be used.There are many new modes of communication which could be used to attract customers from different countries. Additionally, this will help them to boost their target market and will be helpful to gain attention.
Solution # 3 (Supply Chain and Distribution Channel)
The third solution proposes that company should develop friendly relationship with the wholesaler, retailer and brokers to boost their sales and attain top shelf place. Strengthening the supply chain will help in cost cutting and mass production along with approaching new distributors. This will also help the company to introduce their product globally and internationally along with this, it will help to build strong pleasant relation with its end customers.
Recommendations
The thorough analysis of the external and internal environment and giving due diligence to all the possible solutions, it is recommended that in order to boost the core competencies the company should focus on diversifying its products portfolio along with innovation and development of the existing products while expanding into new markets is quite difficult and cost consuming strategy it can be applied on the long-term growth perspective. For attaining growth in financials an effective marketing strategy is vital, the company should utilize the new modes of communication and new marketing techniques that adapt the different cultural and demographics aspects for penetrating in the market. Develop strong relationship with the customers provide high customer satisfaction that will create customer value and long-term relationship with the customers. It also needs to work on its logistics that will lowers the cost of product. In a nutshell, Pedigree needs to work on all the recommendations simultaneously because in this extensive competition and war of price these all steps are necessary to survive in the market.
Conclusion
Pedigree is dog food brand which is initiated in Great Britain and then got success around the world. In 1988, it was launched in U.S. it is the world’s top dog food seller. It has extensively spent on the marketing of its products which is more than any competitor or brand of dog food. Its advertising strategy was based on two key messages first one is that Pedigree is made with meat as a basic ingredient and next one is that it is the choice of breeders and recommended by them. Although, Pedigree has shown a little growth in operating profits during 2003 and 2004 that is 2.3 percent and 0.4 percent respectively but the company is facing a reduction in the shelves of stores and slacking off its market share due to the extensive competition in the market. The brand manager of Pedigree, Julie Smith has to determine its growth strategy that will increase its growth and save the falling-off business.
The thorough analysis of the external and internal environment and giving due diligence to all the possible solutions it is recommended that in order to boost the core competencies the company should Pedigree needs to work on all the recommendations simultaneously because in this extensive competition and war of price these all steps are necessary to survive in the market.................
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