marketing
oma_ab
Group1PresentationPurinaONE1.1.pptxPurina ONE® Marketing 3301 Group 1 Project
Amanda Knott, Michael muench, omar abu-dayyeh, and tommy abrantes
Fall Semester 2017
Nestle Purina PetCare Company
Purina was originally founded in1894
William H. Danforth, George Robinson, and William Andrews
Created to create, produce, and sell feed to pets and livestock animals
Purina sold off the livestock feed portion in 1986 to focus on dog and cat products
Sold off company became Purina Mills
Purchased by Nestle in 2001 and became a private subsidiary of Nestle
New Company name “Nestle Purina PetCare Company
Current Headquarters in St. Louis Missouri
Purina's premium wet and dry pet foods.
Purina One
Purina ONE was introduced as Ralston-Purina's first premium pet food product
It was also the first pet food product using natural ingredients to be sold on a consumer-level
All products use real meat as the first ingredient and are rich in vitamins and minerals
Product Category
The United States pet market is the biggest in the world, with an estimated 65% of households owning at least one pet.
In 2016, it was estimated the value of spending on pets was $67 billion.
Out of that number about 42% accounted for pet food.
That is over $28 billion dollars in play for pet food.
Purina yearly revenue upwards of $10 billion a year
Purina in number 2 in Market share for pet food and products
Product Category (cont.)
Purina ONE has two major competitors in the Market
Mars—#1 producer of pet food in the world
Brands Include - Pedigree, Whiskas, Sheba, Cesar, and Royal Canine
Private label brands- Retailers own brand of food they have produced and sell
Example : Walmart’s Ol' Roy brand for dog food.
Target Market
The target market is largely geared toward pet owners looking for a conveniently found and consistent higher quality of food for their pets' unique needs.
The majority of Purina One’s current customer database consists of lower income-class consumers who want better quality dog food that is readily available in retail locations that they shop at on a regular basis, but those unwilling to pay excessive prices of high-end competitive premium dog foods.
The Need
Purina markets itself toward consumers who are looking for a higher quality of pet food
The company can empathize with the deep love that pet owners develop for their pets, because many of its employees are pet owners themselves who use the product.
Purina’s mission statement
“committed to helping pets live longer, happier and healthier lives through proper nutrition and care…[and have] a fundamental responsibility to provide safe, palatable and nutritious products made to the highest standards of quality and safety”
Product Offering
Purina ONE dog foods are marketed towards busy consumers who are looking for a better quality of pet foods for their pets.
Food Assortments include
Chicken and rice adult formula
Healthy puppy formula
Lamb and rice formula
Large Breed adult formula
Sensitive systems adult formula
Small bites beef and rice formula
Small bites beef and rice formula
Purina ONE dog foods are currently in market maturity stage of the product life cycle.
Brand and Packaging
Purina ONE's brand has been successful in establishing itself as a widely recognized name in households all over America.
Stark, clean use of narrow all capital letters, simple color scheme, and size emphasis within enlarging "ONE" draws the viewer to focus on the name
The solidary use of the color red within the checkered symbol among the black and white text helps the viewer to remember and mentally encode the brand name itself.
Purina ONE packages their dry pet foods in paper bags lined with plastic and their wet pet foods in metal cans with the same plastic outline as they use for their dry pet food bags.
Distribution
Purina does not sale directly to the end consumer;
Purina uses indirect channels of distribution in delivering products to final consumers
Some of the company’s largest accounts include retailers like Walmart, Target, and Pets Mart.
Purina has implemented a dedicated department that specializes in client relations and ensures that these established accounts maintain good and lasting profitable relationships.
Pricing
Consumers in the market for Purina ONE are willing to spend more money than the average consumer for pet food found
Example: Regular Purina puppy chow sells for $29.75 for a 32 lb bag at Pets Mart. A bag of Purina One Smartblend sells for $35.14 for a 31.1 lb bag. (Prices as of 11/8/17)
Breaking down of prices, the price per pound of dog food for the basic is $0.92 and $1.12 for the Purina Smartblend. Customers are willing to spend 20 cents more per pound of food to get better quality for their pets.
Average markup at retail level 30-40% (Interview with Pets Mart Manager)
Promotion
Currently, Purina utilizes a variety of promotional techniques to acquire and maintain customers
Examples: Television commercials, Billboards, online content including a Facebook page, Twitter account, YouTube channel, and even various online Blogs.
Marketing aimed at families to heavily emphasizing pets as additional family members
https ://www.youtube.com/watch?v=IrEuItZtSjI
Purina is not focusing its marketing tactics toward selling only their product
Implement continual brand reinforcement to the consumer through informational and social networking.
Purina employs "Territory Managers" to build and maintain market share in specialized fields
Example: Veterinarian product line
Market Opportunity Matrix
Purina ONE has been able to obtain and maintain more than a fair amount of market share.
#2 largest national producers of pet food and products
The company has established a solid presence in the market instituting itself with a competent reputation for over 100 years.
Market Opportunity Matrix (Cont.)
Purina constantly evaluates its marketing strategy and adjusts according to changes in the marketplace
Examples include the introduction of variation to Purina ONE’s product line like Purina Beneful, and Purina ProPlan Veterinary series.
Purina ONE observed the consumer trends for this and met it with their specialty lines.
Purina has developed and maintained good relationships with its retail partners
With these relationships it maintains its place in the market and receives good feedback from the partners to see what adjustments need to be made.
Thank You
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