This is a consultancy report for the launch of a new brand of balanced dry food for dogs. It will be manufactured by a large Brazilian company that is about to be installed in the department of San José.
Therefore, we did an investigation of the current state of the rations market in the city of Maldonado, and we suggest that the steps described in this report be followed to position ourselves as a leader in the Super Premium rations segment.
1- MARKET DELINEATION
- Dog population and survey Expert opinion
Dog population and survey
The number of dogs in Maldonado is estimated to be around 55,000. According to a survey, 40% of the inhabitants do not have a dog at home. Of those who have a dog, 32% say they feed it only with balanced, 4% only meat, 16% cook it, 6% give it leftovers, that they cook and mix with balanced is 39%. The most mentioned reason in the selection of the method for feeding is the cost, or because they believe it is healthy, then for practicality and also for veterinary recommendation.
In order to know the canine nutrition market, two types of interviews were carried out. In the first instance by visiting experts in the field. Four veterinarians: Central, López Quintana, San Isidro, and San Martín. And two related businesses Pet Shop (Punta Shopping), and Rango (Distribuidora de Nutriara). All of these were asked, What is the best way to feed a dog? What brands do you sell? What is the best seller? Which one would you recommend?
From the veterinarians we obtained information regarding the appropriate feeding of the animals from the necessary nutrients in a balanced diet to the different diseases and care necessary in the diet of the dogs. On the other hand, the sales centers gave us an idea of the different categories of food, the most popular, etc.
- About the competition...
We have listed 37 brands, without adding the line extensions, that is, varieties of tastes, size, races, pharmaceuticals, and age. However, the volume sold by each of them is very small.
The leading veterinary brands are only Eukanuba, Pro Plan, Hill Science Diet, Nutrience. These are classified as super Premium. They are marketed exclusively in veterinarians. They are the highest quality and therefore the most expensive. They are between 1500 and 2000 pesos.
The superpremium manufacturers did not limit themselves to the highest quality market but also covered other segments under other trade names, for example Purina which is a manufacturer of Pro Plan recently launched Dog Chow and Puppy Chow.
The origins of the products are North American, Argentine, Brazilian and national. Due to cost issues, traditionally leading brands have lost participation, giving place to national brands such as Lager - this being the most sold according to the opinion of veterinarians. It is probably due to the recent increase in quality of the same as at an accessible and competitive price.
POSITION OF PREMIUM BRANDS IN THE MARKET.
The Premium market is led by Alpo and Pedigree. Both are Argentine. Its price in Disco and Devoto is 406 pesos for the 8-kilo bag of Alpo and the Pedigree bag of 1 ½ kilos in disco costs 96 pesos. Then we have Frolic and Frost that are bought in less quantity. Frolic costs 203 pesos the bag of 2.7 kilos and 900grams costs 70.50 pesos.
PARTICIPATION ACCORDING TO ORIGIN.
American brands had a large share in the quality food segment but after the devaluation of the peso these became too expensive, in addition, transport by ship is slow, thus losing about 3 months of useful life of the product between the order, shipment and admission to the country.
Argentine brands lead in promotion and positioning in the minds of consumers, for example Dogui and Pedigree. Dogui was the first to enter the Uruguayan market at the beginning of the 90's and for this reason it has great roots among customers. Pedigree is part of Waltham which also belongs to Mars Inc. Eukanuba since last year is manufactured in Argentina.
Food of Brazilian origin is led by Nutriara, it has a huge segmentation, 15 different brands that cover all market niches. Then they have a small participation Bravo and Leader Price (only in Devoto and Disco).
There are four manufacturers in Uruguay: Negley (Bandido, Gloton, Prot-21), Petar (Canito), Lager, Tienda Inglesa. The best quality and even recommended by professionals is Lager at a price of $ 520 per 22-kilo bag. At the other extreme is Prot-21, which is sold in retail stores, the 8-kilo bag costs $ 148.
Expert opinion
According to information obtained by Dr. Marcelo Cortez in Uruguay, the oldest serving is from approximately the year 82. Today there are forty-five different brands. Recently the marketing managers of Buenos Aires made some projections that in Uruguay there is room for growth in the veterinary sector for at least 20 years. With forty-five brands, the market penetration is still only 35%. There is a 65% potential to explode. It is the only branch that can grow at this rate.
Survey
The general population was surveyed with these questions: Do you have a dog in your home? how many? What do you feed him? For what reason? What was the last brand you bought?
After doing a series of surveys we discovered several important aspects of the balanced dog food market.
First, we start by obtaining useful data from professionals specialized in this market such as veterinarians and exclusive sales centers.
MARKET SHARE
We found that vet brands such as Nutrience, Eukanuba, Hill's Science Diet, Pro Plan, Lager, are rarely found in supermarkets. Only a few brands match: Alpo and Frost. In Disco the head of the gondola and an equivalent to 35% of the packages correspond to Dogui; another 30% (4 fronts out of 15) show Pedigree. The latter along with Champ (both are from Effem), and Alpo are the three brands with the most presence in Devoto and Tienda Inglesa. Both chains have launched their own brand leading the lowest price for the 10k bags of $ 250 and $ 260 respectively. It must be taken into account that often the gondola space is bought and does not correspond to the real rotation of the product.
2 - INFLUENCES AT THE TIME OF PURCHASE
Our greatest influences at the time of purchase will be the veterinary advice, this is very important at the time of this, since the client pays a lot of importance to their advice, advertising is also very important, it describes and highlights the attributes of the product, our advertising aims Highlight the quality and price of the product as well as others in the printing on the packaging, it is necessary to create a descriptive packaging in terms of the attributes of the product, striking and practical, in addition the logo will be indicative of health since it will have a Dalmatian dog. The color of the packaging will be white, a sober color that in turn highlights the logo which will be yellow
3 - PRODUCT ADJUSTMENT
- Cost: The cost of a high-quality product is lower since the cost of buying food separately is higher and the work of cooking is added. Complete and balanced food: A homemade food is hardly complete and balanced. Practicality: As it is a complete and balanced food, you do not have to add anything to it, avoiding wasting time spent cooking. You should even try to avoid adding food because we would be unbalanced to the diet, which could cause health problems in the animal. Hygiene: They contribute to environmental hygiene due to the fact that the feeders do not have to be washed. Duration of the product in time:They are foods that have a shelf life of one year or more. It is recommended to keep the food in cool and dry places. Once opened, the bag should preferably remain closed, to avoid external contaminants.
- Canned food:
They are foods that have 80% humidity. They are products, generally, complete in their composition. It can also be supplied mixed with dry food to stimulate consumption.
Advantages of canned food:
- Palatability: Due to their texture, they are very palatable for dogs and cats. The conservation period is long since during its preparation it is subjected to a sterilization process. Once the can is opened, it must be kept in the refrigerator in a closed container and must be consumed within 3 days of opening it. Semi-humid foods:
They are foods that contain 22% moisture. During the preparation of this type of food, water binding substances such as sugars, salts are incorporated, which produce a trapping of it in the food, preventing the development of microorganisms.
Advantages of semi-moist food:
- High palatability: This type of food is extremely attractive to dogs as it has a soft texture.
FOOD IN THE DIFFERENT STAGES OF A DOG'S LIFE
FEEDING THE PREGNANT FEMALE
Fetal growth occurs significantly in the last third of pregnancy, therefore it is not advisable to overfeed the pregnant female before that period as it could lead to an excessive fat deposit and therefore possible problems in childbirth. A good feeding plan would be to increase feed by 15% from the fifth week of gestation, therefore the pregnant bitch will end up consuming 60% more than when it was served.
FEEDING THE INFANT FEMALE
The nutritional requirements in this stage are extremely high. They may require up to 3 and a half times the maintenance requirements. The bitch has to maintain herself and at the same time produce enough milk with an adequate nutritional composition and energy content to be able to properly feed her puppies. That is why it is so important to provide a diet with a high concentration of energy and nutrients.
FEEDING A PUPPY
The nutritional requirements of a puppy are different from those of an adult animal. To the maintenance needs are added those of growth. Over-nutrition of the puppy is harmful. A calcium supplement to a complete and balanced diet can cause alterations in bone development and also interfere with the absorption of other minerals from the intestine. Excessive energy intake can cause obesity problems in small breeds and accelerated growth in giant breeds, which can lead to skeletal problems in the growing animal. Also an excess of vitamins, especially fat-soluble ones, can be detrimental to the health of our puppy. In conclusion, the feeding of our puppy should not be supplemented with something "extra",and he should eat what he must and not what he wants.
When puppies are weaned they need twice the requirements of an adult animal. Between 40% of their adult weight, their caloric requirements should be multiplied by 1.6. Between 80% and until reaching its adult weight, it needs 1.2 times the maintenance requirements.
CLASSIFICATION OF PRODUCTS