Posted: September 18th, 2022

Positioning is the process and mindset of finding unique ways of penetrating a competitive market

Positioning Defined
Positioning is the process and mindset of finding unique ways of penetrating a competitive market. The key question is “What makes us unique?” in a vastly competitive market. The word unique does not necessarily refer to the product – it is a more holistic term that should be applied to market penetration. Technology has given the world access to more products and substitutes than ever before, creating a high-demand for market positioning that not only solves a problem or fulfills a need/want, but also attracts and holds the attention of the consumer (Riles & Trout, 2000).
Market Description
The all-natural dog and cat food market has taken off in the wake of the COVID-19 pandemic, with many people finding solace in isolation by adopting animals. The human to animal psychological bond with these animals has never been higher, considering the relative amount of time spent during quarantine and time at home with the animal. With this escalated bond and accompanied desire for high-quality food products, the market for all-natural pet food has never been stronger. In fact, total pet food market expenditure is anticipated to rise from 100 billion in 2019 to 168 billion in 2029 (Bedford, 2021). The market has seen dramatic shifts in retail channels, with organizations like Amazon now providing either direct or secondary transaction services for pet food.
Analysis of Current Positioning in the Market
Current market competitors with significant position in all-natural pet food include Blue Buffalo, Hill’s, and Nestle Purina. These firms offer various levels in the all-natural sub-category, with Blue Buffalo and Hill’s being predominately focused on this market niche (Blog Author, 2018).
Blue Buffalo is a General Mills brand that focuses almost exclusively on all-natural foods with real meat as the first ingredient. The company also produces limited-ingredient offerings and breed-specific offerings for more esoteric diets. In 2020, Blue Buffalo saw a quarterly surge of revenue of $4002.5M to $5,023M in Q4, a 25% increase. Total General Mills pet food revenue in 2020 was $1,694.6M. This undoubtedly is due to an increase in demand for high-quality pet food as owners have turned to pet relationships during isolation (Naish, 2018).
• The adult, puppy, and senior BLUE Life Protection formulas currently retail at $64.99 for a 30lb. bag, or $2.17 per pound. This is an all-natural product utilizing real meat, vegetables, and fruit.
Hill’s Pet Nutrition also focuses on all-natural dog food, along with prescription dry and wet foods available through veterinarians. Hill’s is commonly viewed as a top-tier offering and in 2020 the company’s revenue grew in Q1 to $719M, up from $600M in Q1 2019, an increase of 19.8%. The total 2020 revenues were $2,525M. This again, is most likely due to owner bonding and desire to provide higher quality foods.
• Hill’s Science Diet retails for $71.99 for a 28.5lb bag, or $2.52 per pound. This is also an all-natural product with real meat; however, it does not appear to contain real vegetables or fruit.

Nestle Purina operates a niche brand of all natural retail food called Purina ONE that appears to aim at a more budget-conscious audience while still providing all-natural offerings. In 2020, Nestle had a whopping $15,422M in pet care revenues.
• Purina ONE natural dog food contains real chicken as the #1 ingredient as well but does appear to contain a higher fat and grain content than competitors. The food retails for $43.99 for a 31.1lb bag, or $1.41 per pound.

Projections for the Market
While pet owners are likely to continue feeding higher quality foods, the gradual return of workers to jobs could lead to some neutrality in sector growth, though nothing is for certain with the current economic climate. In the short term, the space offers a solid entry into what consumers historically considered a luxury but have recently started prioritizing as more of a need (Semple, 2020).
Current overall pricing trends on dog food are expected to increase with current high inflation numbers. Though the Fed is planning to taper money printing and increase interest rates, this process will take a long time to carefully implement and monitor. For the short-term prices are expected to increase due to a general shortage of workers, transportation costs, and packaging costs. As human food is currently sitting above 15% inflation by category, similar movement can be expected in ped nutrition and generally anything in the supply chain.
Recommended Position for JGJ Inc.
Based off this market assessment, entering the space is advisable with some changes to business model that would both increase consumer convenience and lower operating costs. First, the data below shows that Chewy and Amazon carry the online market share by a very sizable amount. It would be advisable to base a business model off this type of delivery, removing the need for middle pieces of the supply chain.
Social media and online marketing narratives are extreme relevant and there are plenty of opportunities to market an online presence without the need real estate beyond initial storage warehousing.
Additionally, the product needs to address the “nutrition war” between brands by simplifying product packaging and marketing. Including abrupt and direction information regarding high quality ingredients with a “no filler” approach to both product and advertisement would be advisable.

(Bedford, 2021)

The target customer for these products includes most generational demographics from Gen Z to Baby Boomer, with most of the market share likely going to Millennials. These buyers would be mostly middle and high class in socio-economic status. Likely, these folks have also or do also currently work from home or are retired. These buyers would also likely utilize an online service for other products, making the entry into an online market compelling.

References
Bedford, E. (2021). U.S. pet food industry – statistics & facts. Statista. Retrieved from https://www.statista.com/topics/1369/pet-food/#dossierKeyfigures
Blog Author (2018). Top 10 largest pet food manufacturers in the world 2018. Technavio Blog. Retrieved from https://blog.technavio.org/blog/top-10-largest-pet-food-manufacturers
Kanzler, F. & Foden, A. (n.d.). Differentiation and positioning: What does your business stand for? MarketingProfs. Retrieved from https://www.marketingprofs.com/opinions/2015/27733/differentiation-and-positioning-what-does-your-business-stand-for
Naish, D. (2021). 15 largest pet food manufacturers in the U.S. 2021. Top Dog Tips. Retrieved from https://topdogtips.com/largest-pet-food-manufacturers-usa/
Ries, A., & Trout, J. (2000). Positioning: The Battle for Your Mind, 20th Anniversary Edition. McGraw Hill.
Semple, J. (2020). State of the US pet food and treat industry, 2020. Pet Food Processing. Retrieved from https://www.petfoodprocessing.net/articles/14294-state-of-the-us-pet-food-and-treat-industry-2020
Staff Author (2021). The global pet food market is projected to grow from $97.47 billion in 2021 to $136.82 billion by 2028, at a CAGR of 4.96% in forecast period, 2021-2028. Fortune Business Insights. Retrieved from https://www.fortunebusinessinsights.com/industry-reports/pet-food-market-100554

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Defined Positioning Positioning is the process and mindset of discovering novel ways to enter a competitive market. In a highly competitive market, the important question is “What makes us unique?” The phrase “unique” does not always apply to the product; it is a broader concept that should be used to market penetration. Technology has made more products and substitutes available to the world than ever before, producing a strong demand for market positioning that not only solves a problem or fulfills a need/want, but also attracts and retains the consumer’s attention (Riles & Trout, 2000).

Market Synopsis

Following the COVID-19 pandemic, the all-natural dog and cat food market has exploded, with many people seeking solace in isolation by adopting animals.

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