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Pedigree Case Analysis


February 18

Summary Of Facts

Dogs were the most popular pet in the world in 2004. Dogs lived in 37.2% of US households. There were about 43 million dog-owning households in the United States in 2004. The average number of dogs per household was 1.7, and more than 5% of dog-owning households had four or more dogs. Households with children were 77% more likely than average to have a dog. Dog ownership decreased as education level increased: 41.6% of households with high school or less education owned dogs, compared to 32.2% of households with advanced degrees. In 75% of households, the female was the primary caretaker of the dog, while the figure varies somewhat based on age.
Total retail sales for dog food in 2004 was $8.2 billion. Dog food is the largest segment ($5.2 billion), followed by wet dog food ($1.6 billion) and dog treats ($1.4 billion). Percentage of dog food sales include mainstream (45%), premium (18%) and super-premium (11%). Competitors invested heavily in innovation and marketing while industry advertising surpassed $190 million in 2004.
Pedigree had 14.5% market share in 2004. Despite the share loss, Pedigree increased profits in both 2003 and 2004; operating profit grew 2.3% in 2003 and 0.4% in 2004.

Recommended Actions

Pedigree has lost part of its market share to its competitors. I believe the phrase “Pedigree loves dogs” is too vague and will not resonate with consumers. In order to regain market share, then Pedigree must dig in to the facts presented and build a marketing campaign around it.
First off, the colors used in the Pedigree brand are bland and boring, therefore a re-branding of the products’ packaging needs to take place. More vibrant colors should be used that catch the eye and targeted at women specifically. These colors may include pink, yellow, or baby blue. Women are the main caretakers of dogs in 2004, therefore advertisements should mostly implement emotional and subliminal messages directed towards women. An example would be to tamper the term “man’s best friend” to “woman’s best friend”. Stores that carry the Pedigree brand should be carefully selected where close to where there is more women traffic, such as near cosmetics shops or women’s clothing shops.
Another interesting fact Pedigree should look at is that the lower the education level is in the household, the more likely it is for that family to have a dog. Looking at this information, promotional campaigns should be targeted at low to medium income communities, rather than affluent ones.

Problem Definition:
Julie Smith, brand manager of Pedigree dog food, wants to know if her new marketing campaign “Pedigree loves dogs” will work and take back the market share that they have lost to their competitors.

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