Q3

10

Product Development

Considering the online presence model and current market competition, JGJ Inc. should focus efforts on the product development of a “middle of the road” solution to quality and price while also thinking consumer-friendly with packaging.  These dog and cat foods offerings should be based on real-meat raw materials, grains, and moderate fruit content, forming a complete pet nutritional profile, and minimizing costs.  Some scientific input and upfront capital expense will be required to secure this market position.  There is a clear difference between competitor quality/value ratio where JGJ Inc. could find excellent market penetration.

According to Ardente (2020), the main macronutrients needed in a pet diet are protein, amino acids, fatty acids, vitamins, and minerals.  The quality of the food also depends on its organic profile.  Organic materials tend to be more expensive than synthetic materials and pet owners demand organic products.  As such, JGJ Inc. should use meat products instead of meat byproducts in the production of this food (Staff Writer, 2020). 

Regarding grain and fruit content, JGJ Inc. should utilize lesser priced solutions, as they are a smaller portion of the overall kibble and not as necessary to the nutritional profile of the kibble, without sacrificing the overall quality of the kibble.  This cost savings can help JGJ remain competitive within the landscape.  Cost effective fruits like apples and bananas can be acquired from “imperfect” fruit distributors, keeping the nutritional profile strong and affordable (Copeland, 2022).

Market Segment Demand

The market size of pet food is anticipated to steadily increase, and the global pandemic has exasperated this demand, particularly in the nutritious food sector.  As these charts indicate, JGJ Inc. can penetrate the nutritious segment of the market by offering both a strictly online presence with this nutritious and cost-effective kibble, focusing on nutritious dog food.  Nearly the entire market of nutritious pet food demand is that of dogs, giving JGJ the opportunity to produce food in large quantities without shrink, overage, or expiration due to diverse production practices. 

JGJ Inc. can capitalize on this increasing demand through its online-only presence, giving consumers the cost-effective offering, they demand while also delivering the product through direct-to-door means.

 

Exhibit A

Exhibit B

Exhibit A displays a quantitative increase in demand per time bar graph, segmented by type of product.  While the nutritious food portion is small and matches the size of the wet/canned food portion, this chart represents the total pet food industry and is demonstrative of the increase in overall market as well as the increase in the demand for nutritional offerings.

Exhibit B displays this same data in terms of application, with dog food taking nearly the entire market.  JGJ Inc. can focus on dog food delivery, while many competitors focus on all segments of the market that are in far less demand.

 

References:

Ardente, A. (2020).  Pet food ingredient and label guide.  PetMD.   Retrieved from https://www.petmd.com/dog/nutrition/pet-food-ingredient-and-label-guide

Copeland, K. (2022).  18 fruits & vegetables dogs can eat (with infographic).  PetKeen.  Retrieved from https://petkeen.com/fruits-vegetables-dogs-can-eat/

Staff Writer (2019).  Pet food market size, share & trends analysis report by product (dry food, wet/canned food, nutritious food, snacks/treats, others), by application (dog, cat, others), by region, and segment forecasts, 2019-2025.  Grand View Research.  Retrieved from https://www.grandviewresearch.com/industry-analysis/pet-food-industry#:~:text=Unlike%20most%20conventional%20pet%20foods%2C%20organic%20and%20natural,the%20pet%20food%20market%20over%20the%20forecast%20period

Staff Writer (n.d.).  What’s in the ingredients list?  AAFCO.  Retrieved from https://talkspetfood.aafco.org/whatisinpetfood