For examples, in 1995, Nestle has acquired Alpo, and Heinz has acquired Quaker. (Report Jan, 2000 and Feb 1997).
Market size and growth: The whole pet food market is growing steadily. For example, the U.S pet food market is $10.4 billion in 2001, up 3.0% over 2000. Since 1999, the market has grown at annual rates in the 3.0% to 3.5% range. Dog foods occupy 58% of the pet food market share in terms of dollars. (Report of June, 2002).
Factors in future growth: Positive factors: the size of the dog pet population is currently at an all-time high. Consumers heightened nutritional awareness, baby boom demographics and industry consolidation. Negative factors: Slow-growth economy and potential of rising commodity prices.
Market projections: Overall, the pet food market is projected to rise to just over $12.2 billion in 2006 and 11% increases over 2001. .
Marketers: Two types of pet food marketers: generalists and specialists, with the market dominated by the generalists. Top three in pet food: Ralston-purina, Nestle and Heinz's.
Consumers: According to Simmons Market Research Bureau, 34% American Adults own one or more dogs (Report Jan1, 1995). The most significant demographic factor in owner ship of dogs is the presence of children in the household. The consumers can be divided into four types according to product forms. The first group of dog food consumers mainly consumes dry dog food that the market share is 32%. The second group mainly purchases dog snacks which the market share is 25%. The third group chooses canned dog food that the market share is 12%. The last group consumes semi moist dog food which the market share is 4%.
Product Analysis.
The dog food industry is a highly competitive one. In 2001, 11.5 billion was spent in the pet food market and this number is growing by 6% annually(1). Companies have tried to meet every niche of this growing market by producing deep product lines to address customer preferences.
