TDB Pet Specialty
1 like318 views
The document discusses growing sales of natural pet products through the pet specialty channel. It notes that while pet specialty accounts for 47% of dry dog food sales, it only has 18% of the snacks and treats (S&T) category. Capturing the same 47% share of S&T could generate $632 million in additional sales annually. The document recommends driving S&T sales through improved merchandising, education efforts, and suggestive selling. It then outlines Three Dog Bakery's brand and all-natural product lines, as well as a "Spoke 'N Hub" franchising model and distribution strategies to expand into the pet specialty channel.
More Related Content
What's hot (13)
Viewers also liked (11)
Similar to TDB Pet Specialty (20)
TDB Pet Specialty
- 1. Growing the Pet Specialty Channel October 2009
- 2. AGENDA 1. Current Trends Driving the Category 2. Three Dog Bakerys Philosophy 3. Power of the Brand 4. Product Review 5. Pet Specialty BRAND and Opportunity 6. Recommendation/Next steps
- 4. U.S. NATURAL PET PRODUCT SALES Pre-Recall U.S. Retail Sales of Natural Pet Products 2000-2009*, 2007-2012** Pre-Recall 2005-2009 natural pet product sales were forecasted to continue rapid growth a 15.9% CAGR Post-Recall 2005-2012 sales are adjusted to reflect the increase in consumer awareness of the natural category a 22% CAGR millions of dollars *Functional Foods & Nutraceuticals: Pet foods get functional, July 2006 **Packaged Facts, Market Trends: Natural Pet Products, February 2005 ***Natural Organic and Eco-Friendly Pet Products in the United States, Progressive Grocer , 2007 302.3 338.0 385.1 446.5 527.3 619.4 728.4 1,300.0 1,482.0 1,689.5 1,926.0 2,195.6 2,502.0 849.3 970.5 1,749.3 1,508.0 1,300.0 1,120.7 0 500 1,000 1,500 2,000 2,500 3,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year RetailSales(inmillionsofdollars) Pre - Recall Post Recall
- 5. Pet Specialty has 47% of the dry dog category, but only 18% of S&T. Why cant Pet Specialty achieve the same mix in S&T as Dry Food? $2,204,500,000 $403,900,000 $632,450,000 $0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 S&T - Pet Specialty S&T - Total S&T - Total S&T - Pet Specialty S&T - Potential $632 Million Opportunity! S&T CATEGORY POTENTIAL Pet Specialty 18%
- 6. OPPORTUNITIES TO DRIVE S&T SALES Fast food restaurants would not be in business if they only sold hamburgers Fries and drinks drive the majority of their profits, and are a major priority Snacks and Treats offer the same potential for Pet Specialty Garnering the same S&T share (currently 18%) they have of Dry Dog Food (47%) would generate incremental sales of $632 Million to the channel How? Merchandising against impulse and bundles, consumer & retailer education, suggestive selling, more feature ads, etc.
- 7. FOODS VS. SNACKS & TREATS Food offers opportunity Drive Traffic (Destination Item) Trade-up Loyalty Conversion Treats offer even MORE opportunity Trade-up Bigger bagswith food delays trip to storewhile bigger bags for S&T results in driving per capita consumption Conversion PLUS Frequency (only 10% feed daily) New customers (only 35% of pet food consumers buy S&T) Pantry out-of-stocks (after 7-8 days since purchase from a Pet Specialty store) Impulse purchase Elasticity--increased consumption comes w/pantry load Promotion: e.g. Bonus bags for foods are a discount (and delays a return to the store), while BB for S&T results in greater consumption
- 8. REASON FOR BEING At Three Dog Bakery, We Love Dogs! And Dogs Love Us! We were founded with Love - thats our reason for being. It governs our commitment to use only the freshest, close to the earth, all-natural ingredients that dog owners can identify and pronounce. Our Story: In 1989, three dogs (Sarah, Dottie & Gracie), two guys (Dan & Mark) and one 59-cent biscuit cutter joined forces to create Three Dog Bakery the worlds original bakery for dogs. Providing health food and treats just like you would bake in your own kitchen to dogs the world"rover. It was a dazzling moment in canine history and dogs rejoiced! Thanks to Three Dog Bakery, our furry friends could now enjoy fresh, oven-baked and treats and say - YES to All-Natural ingredients! YES to Human Quality ingredients! (TREATS) YES to Wholesome, tasty grains, vegetables, fruits & herbs! YES to Delicious taste! YES to Made in the USA!
- 9. POWER OF THE BRAND National Media Exposure
- 10. POWER OF THE BRAND Over 300,000 copies in print New Cookbook Published 2007 A Real and Compelling Brand Heritage
- 11. POWER OF THE BRAND Worldwide Bakery Network Builds Brand Awareness and Loyalty
- 12. DIFFERENTIATED AND COMPELLING Three Dog Bakery offers a full line of Made in the USA, All-Natural Oven Baked Treats and Food through its growing network of boutique retail bakeries and retail outlets.
- 13. PET SPECIALTY BUSINESS MODEL Pet Specialty Brand Spoke N Hub Storefront Bakery& Kiosk Model Model Merchandising DDS Distribution Model PRODUCT INNOVATION Growing the Category New Users into Category Per Capita Consumption
- 14. GRACIES GOURMET速 12oz. Retort PackagingSuggested Retail of $2.49 - $2.99
- 15. BAKE TO NATURE速 ALL NATURAL OVEN-BAKED DRY FOOD Puppy Adult Chicken Adult Lamb Adult Fish and Sweet Potatoes Reduced Calorie Chicken Senior Chicken 16oz. Trial Pack Suggested Retail $2.99 4lb. Bag Suggested Retail Range $10.99 to $11.49 12lb. Bag Suggested Retail Range $23.99 to $24.99 24lb. Box (4-6lb. Bags in a Box) Suggested Retail Range $39.99 - $42.99
- 16. THREE DOG BAKERY ALL NATURAL OVEN-BAKED CLASSICS Classic Cr竪mes Classic Wafers Classic Chips 5oz. Trial Size Suggested Retail $2.99 16oz. Box Suggested Retail $6.99 32oz. Canister Suggested Retail $12.99 48oz. & 64oz. Canister Promo Packs Suggested Retails $18.99 & $24.99
- 17. THREE DOG BAKERY ALL NATURAL OVEN-BAKED BISCUITS 16oz. Paper Bag Suggested Retail $6.99 32oz. Canister Suggested Retail $12.99 48oz. & 64oz. Canister Promo Packs Suggested Retails $18.99 & $24.99
- 18. THREE DOG BAKERY ALL NATURAL OVEN-BAKED BEG-ALS 16oz. Paper Bag Suggested Retail $6.99
- 19. GRACIES GARDEN 8oz. Paper Bag Suggested Retail $9.99 16oz. Canister Suggested Retail $18.99
- 20. ROLL-OVER REWARDS 16oz. Paper Bag Suggested Retail $6.99
- 25. Penny Tray for Front Counter Clock Open/Closed Sign for Front Door Hours of Operation 4 Inflatable Outdoor Banner Crew Button Wall Poster
- 26. SPOKE N HUB MODEL OPTIONS Spoke N Hub Model can be leveraged in several different waysa great way to describe this model is similar to what Krispy Kreme has done Option #1 Become a TDB Franchisee utilize baking capacity via storefront and distribute to up to 100 Independent Pet Retailers Option #2 Become a TDB Commissary (Option would forego franchise/store front and branding development in territory) Option #3 Solicit existing Independent Pet Retailers that may be interested in becoming a TDB franchise and form a partnership
- 27. SPOKE N HUB BAKERY MODEL
- 29. DDS DISTRIBUTION MODEL Pet Retailer Chuck Latham & Associates Sell-in Take Order/Communicate Merchandise/Stock Distributor Network Receive Order Pick Order Deliver/Communicate Order Chuck Latham & Associates Notification of Delivery Follow-up visit to Retailer Stocks Order 1 2 3 4 Pet Specialty Brands/Product SPOKE N HUB Model Products
- 30. 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Phase 1 Phase 2 Phase 3 HOLIDAY - "We Believe" PILE UP THE PANTRY BONUS BUY 3DOGSTOCK HOLIDAY 1/3 1/3 1/3 32oz. Canister Purchase Launch 32oz. Canister 20oz. - 25% MORE Free 48oz. Promo Canister "We Believe" Distribut ors Distribut ors Distribut ors Receive FREE 16oz. FOOD Classics & Biscuits ONLY Classics & Biscuits ONLY Classics & Biscuits ONLY 64oz. Promo Canister TREAT DISTRIBUTION BB Coupons for FOOD BB Coupons for FOOD BB Coupons for FOOD BB Coupons for FOOD Dual & Single Quad Placements Dual 3' Bridge Endcap or 6' Section Back-to- Back on 1/2 Pallet display Permanent Fixture Phase 1 Phase 2 Phase 3 BAKE TO NATURE BAKE TO NATURE BAKE TO NATURE BAKE TO NATURE 1/3 1/3 1/3 "Baked is BETTER" "Baked is BETTER" "Baked is BETTER" "Baked is BETTER" Distribut ors Distribut ors Distribut ors 1# & 4# Intro 1# & 12# Focus 1# & 24# Focus 1# & 24# Focus FOOD & TREAT DISTRIBUTION BB Coupons for Treats BB Coupons For Treats BB Coupons for Treats BB Coupons for Treats Full & 1/2 Pallet Merchandisers Back to Back Display 1/2 Pallet & Full Pallet 1/2 Pallet & Full Pallet 1/2 Pallet & Full Pallet In-Store Merchandising Event - Leverage Account Activity via Dealer Circular with In-Ad Couponing Treat Activity Food Activity