Problem Diagnosis
Dr. Tim’s Pet Food was founded by Tim’s Hunt, who is the entrepreneur and ready for making an expansion and growth. The first problem which is faced by the company is that it is located in an isolated area due, which it fails to cater its sales to the large population. The owner of the company considers some of the strategies to resolve this and stabilize the growth. The company grew itself in the beginning by selling 90,000 pounds of pet kibble in 2010. It helped the company to increase its sales and optimize the production.
The second thing which the founder considers is to save the image of the brand by distributing its product in large retail outlets. This helps the company to increase the awareness of the product and increase the loyalty of the brand among new customers. This also increases the turnover of the company as more and more people buy the product. Nowadays, pet food has a great demand and the company needs to introduce some unique feature which will help the product to be placed on the top of the shelf.
The third problem which Hunt needs to resolve is to limit the physical expansion of its new physical entrepreneurial project. These three problems are the major problems and Hunt needs to identify an appropriate alternative and analyze the problems with the suitable analytical tools. After analyzing the solution, Hunt will be in a position to decide the exact solution for the company’s problem.
Analysis
The analysis section will measure the progress of the company and also explains the pitfalls which the company is facing and need to be resolved rapidly. The position of the company can be analyzed by using different analysis tools and methods. The analysis is based on the alternatives or the options which Hunt is considering.
The analysis tool which the company uses is An soft Matrix. This tool provides guidance that which is perfect for the company in expanding its growth, income and profitability of the company.
Alternative 1: Market Penetration Strategy:
This strategy increases the distribution of current products in the current market. Dr. Trim’s Pet Food needs to increase the distribution channels of the company since it is located in an isolated geographical area and could not easily access the sales representative due to the long distances. Secondly, the company should also introduce the online method to increase the sales of the product. By implementing this strategy, it provides some benefits and drawbacks which help the company in deciding which strategy to choose.
The advantages of expanding the business online are that company can have a direct connection with the customer, which helps in building the loyalty of the brand and also helps the distribution channel runs effectively. It also reduces cost because the company is not using any middlemen for answering the question to the customer. Due to the demand of Dr. Tim’s pet food, the company can distribute some of its product in the retail stores.
The disadvantage of adopting or implementing this option is that the shipment cost increases as they have no presence in the local retail stores. They also need to invest heavily on the internet as their entire business is solely depends on online.
Sometimes it creates problem while dealing with customers online because some communication error arises by which the company faces a lot of distress.
Alternative 2: Product Development Strategy
In this strategy, the market will be the same but new product will be introduced which will help the company to expand its business. The company needs to expand its product line so that existing customers can also take advantage from Dr. Tim’s product. This also helps the company to maintain its high quality product and also gain competitive edge. The following advantages and disadvantages of the option are:
Firstly, the company needs to introduce the product mix strategy through which they can serve several products from one product to all the segments. Secondly, the company also gets first mover advantage by introducing new products by utilizing the limited resources. The company should also introduce some vaccination program to treat the pets as it will help the company to grab the attention of the customers as this provides some new facility for the customer. New products are the best strategy to expand the business. The new products require surveying the customers first and developing those products for the pets which will satisfy the customers’ needs..............
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