Case Breeder's Own Pet Foods, Inc. In January 2011, Breeder's Own Pet Foods, Inc. executives looked forward to their meeting with representatives of Marketing Momentum Unlimited, a market- ing and advertising consulting firm. The purpose of the meeting was to review the introductory program for the company's entry into the retail branded dog food market in the Boston, Massachusetts, metropolitan market area. Breeder's Own Pet Foods, Inc. executives viewed the retail dog food mar- ket as a growth opportunity for Breeder's Mix, its primary brand, following discussions with food brokers. These brokers had become aware that a prod- uct similar to Breeder's Mix was being sold in the freezer section of selected supermarkets in a few large cities in the southwestern and midwestern United States THE COMPANY AND THE PRODUCT Breeder's Own Pet Foods, Inc. is a major producer of dog food for show-dog ken- nels in the United States. The company has prospered as a supplier of a unique dog food for show dogs called Breeder's Mix Breeder's Mix was originally for mulated by a mink rancher as a means of improving the coats of his minks After several years of research, he perfected the formula for a specially prepared food and began feeding his preparation to his stock on a regular basis. After a short period of time, he noticed that their coats showed a marked improvement Shortly thereafter, a nearby kennel owner noticed the improvement and asked to use some of the food to feed his dogs. The dogs coats improved dramatically, and a business was born. Breeder's Mix dog food contains federally inspected beef by-products, beef. liver, and chicken Fresh meat constitutes 85 percent of the product's volume, and the highest quality fortified cereal accounts for the remaining 15 percent. The ingredients with no additives or preservatives, are packaged frozen to pre- vent spoilage of the fresh uncooked meat PACKAGING AND DISTRIBUTION MODIFICATIONS Breeder's Own executives recognized that modifications in the packaging of Breeder's Mix would be necessary to make the transition from the kennel market to the retail dog food market. After some discussion, it was decided that Breeder's Mix would be packaged in a one pound stand-up pouch with 12 pouches per case. The cost of production, freight, and packaging the meal was $7.87 percase which represented total variable Cos The discussions with food brokers indicated that distribution through su- permarkets represented a growth opportunity for Breeder's Own Pet Foods, Inc. Frozen dog food is sometimes sold in pet superstores, independent (specialty) pet stores, satural foods grocery stores, and by Internet retailers. A timely entry into supermarkets would preempt competitors from gaining access to valuable space in the frozen food aisle Foodbrokes would represent Breeder's Mix to supermarkets and would re- ceive a 7 percent Commission based on the price to retailers, which had yet to be determined. Supermarkets typically receive a gross margin of 22 percent of their selling price for dog foods THE MEETING Company executive listened attentively to the presentation made by represen tatives from Marketing Momentum Unlimited. Excerpts from their presentation follow During the course of the meeting. Breeders Own executives raised a num ber of questions. The questions were primarily designed to clarify certain aspects of the program. One question that was never asked but that plagued Broeder's Own executives was all this program establish a foothold in the market for Breeder's MixThis direct question implied several subissues 1. Was the market itself adequately defined and segmented 2. What was a reasonable estimate of market potentiale 3. Could the food brokers get distribution in supermarkets given the sales program 4 What should be the secommended scling list price to the consumer for 5. Could the company achieve a 15 percent return on sales in its introduc Company executives realized that they had to answer these questions and others before they accepted the proposal. The cost of the proposed plan could be $500,000 to $700.000 exclusive of slotting fees, which company executives considered reasonable, although it would certainly stretch their promotional budget PROPOSAL OF MARKETING MOMENTUM UNLIMITED The following is an excerpted version of the proposal presented to Breeder's Own executive The Situation Our goal is to introduce and promote effectively the sale of Breeder's Mix dog Food in the Baston market area in 2011. Breeder's Mix is among the custliest dog foods to prepare and will be available through supermarkets Breeder's Mix is a nutritionally balanced frozen dog food. It is of the finest quality and has been used and recommended by professional show-dog owners for years Yet, in spite of this history, Breeder's Mix is essentially a new product and is generally unknown to the general public. The fact that reeder's Mix will be the only dog food kated right next to people food in the frozen-food section of the supermarket is an advantage that must be capitalized on. The company's his tory of blue-ribbon winners is another plus 5o, in essence, to market Breeder's Mix successfully, we must accomplish two objectives: Make the public aware of the Breeder's Mix brand name, what the packag ing looks like, and the fact that Breeder's Mix is a high-quality dog food. Direct dog owners to shop for dog foxid in the frozen food section of supermarkets. The Environment Sales of dog food will total about 514 billion in 2011 at manufacturers prices. Still, fewer than half of the dogs in the United States are regularly fed prepared dog food, which means the dog food industry has yet to tap its full potential Four trends indicate that this optimism is well founded. First, the dog food industry has benefited from increasing dag ownership. The U.S. owned-dog popu lation of 78.2 million, spurred on by the owners desire for companionship or need for protection, is growing steadily and is expected to continue growing A second important trend is that pet owners continue to invest their animal compan- ions with human qualities and view them as members of the family. For example, research shows that person who owns a dig actually identifies with the pet, as signing human characteristics to the dog such as language, thoughts, feelings and needs." Not surprisingly. 75 percent of dog owners consider themselves "Mom and Dad to their animal companions and 95 percent put and hug their dkg every day Therefore, it comes as no surprise that kig winters spend more than $25 billion annually for veterinarian fees, medication for dags and dog toys, clothing, aces sories, and furniture. A third trend is the growth in premium and superpremium de fools. These higher quality, higher-priced dog foods have fueled the growth in dog food sales along with the increase in dog ownership. A fourth trend is the growing emphasis on all natural, no additives or no preservatives and vitamin and mineralenriched daims made for new product introductions The choice of supermarket distribution focuses on the single largestre tail channel for dog food. Supermarkets and grocery stores) dispense about 36 percent of all dog food sold in the United States, which represents $5 billion in sales at manufacturers' prices. The other 64 percent is sold by miss merchandis crs such as Walmart (25%), per superstores such as PETCO and PetSmart (20%). farm/feed stores (74.), veterinarians (676), and Internet retailers and independent pet stores (6%). These percentages also apply to the greater Boston market Finally, the Boston market is ideal for launching a new dog food. We estimate that the greater Hoston arca has 1.2 percent of the US population (and 1.2 percent of the dog population since ding and human populations are highly correlated Also, expenditures for pet products in the Boston market approximate the national The Competition There are about 50 dog food manufacturer and 350 dog food and in the United States. However, five companies-Nestle Purina Pare owned by Nee SA tans owned by Procter & Gamble, Inc., Hill's Pet Nutrition (owned by Colgate-Palmolive Company). MasterFoods USA (owned by Mars, Inc. and Det Monte Bode, Incccount for about 5 percent of US dose food sales. Nese Purina PeCare, Master Foods USA and Del Monte Poche brands are most prom nent in the supermarket/grocery store and miss merchandiser channels. His fat Nutrition is prominent in pet superiores and veterinarian offices Private label dog food counted for about 9 percent of a supermarket dog food sales Competitor advertising pending and forms of media used will be morcon siderations in planning the freeders Mix's introductory marketing strategy Total spending for advertising in the dog food industry is about 2 percent of sales Nestle Purina PulCare is the leading U.S. dog food advertiser The Problems and Opportunities Introducing a New Dog Food in a New Form This is an opportunity to do cate the consumer. Until Breeder's Mix program breaks dog foods fall into three categories dry, canned, and treats Exhibit 1 shows each category permarket share of dog food and brand shares in each category based on our Dry dog foods are usually produced as flakes, small pellets, or large chunks containing about 10 procent more and 90 percent solid ingredients. They are chewy, usually well rounded, and priced lower than canned foods. Alt 95 percent of owners feed their dogs dry food during the course of a year Nele Purina ONE is a brand leader in this category. Its dollar lure of the total dog for market in about i percent Canned dog goods average about 75 C more and 25 percent solid ingredients. They are marketed either as a complete food or as a supplementary food. Alxwt one in three dog owners feed their dog canned dog food during the core of year. Pedigree, marketed by Kan, Inc. is a brand leader in this te Bory The brand is for about percent of total dog food market dollar sales Dogtrat lave a wide variety of ingredients and, while tasty, are not recom mended as a complete food. Almost o percent of dog owners feed distras Millone, marketed by Del Monte, Inc. is the brand leader in this category. The and captures and percent of total des fol market sales Research on dog owners indicates that 1 in 10 do owner buy from or refrigerated dog food on a regular basis. Another 15 percent of dog owner say they are interested in buying froven de refrigerated dog food, but do not rently buy this product. The primary reason was the lack of availability and con venience. Three fourths of dog owners expressed no interest in buying from or grated for Not surprisingly, it is estimated that frozen or refrigerated dog food.com for about percent of US dog food dollar volume, or $10 million at man facturer prices, Frozen dog food dollar volume increased by 138 percent from 2009 to 2010 Dry foods, canned foods, and treats are typically marketed in the same of the supermarket. The consumer must now be taught to shop for dog food in another part of the store the frozenfood section. Fortunately, some of the work has been done already. A few dostonarea supermarket carry a fronte called Fruity Paws Frozen Treats for Dogs made by Nestle Purina Part wills for $4.99 for 13 Muid Ounces. This product is often placed near ice cream EXHIBITI Major Dog Food Categories and Brands in Supermarkets Category Dollar Share Dog Food Brand and Gategory Shure Category of Total Dey Food Guy Anim Gry Dry National bands, such as Hencfolette Kables Del Monte Dog Chow (Neve Tamilan Private Label Store brands Ocher en branch 25 ION 2010 Canne including met and wmimist varieties National brands, such as Alpe (Nene Cesar select (Masterfoods Mighey (Nestle Pedigree (Masterfoods) Private Label (Store) brands Other (Regional brands 100% Treat 20% 799 National brands, such as Milk In Ixt Monte lleggin" Strips (Nestle Huy Howe (Nestle Private Label Sorel brands Other Regional local bands 12 15 Overcoming Potential Objections to Frozen Dog Food An objection must he anticipated regarding the requirement for thawing time and freezer Space Therefore, we should state on the container the thawing time, suggestions for quick thawing, how long the food will keep in the refrigerator, plus a gentle reminder to pull that container out of the freezer in the morning. Microwave instructions are a possibility, Lack of Appeal of Frozen Dog Food We can quickly turn this problem into an asset in our advertising the first dog food made to appeal only to dogs") Pricing We have considerable latitude in pricing as shown in Exhibit 2 on page 128 Furthermore, while dog owners in general are price and value sensitive, they are als concerned about the health and welfare of their animal companion. Breed er's Mix's quality suggests a premium price. This view is supported by the found brokers who first recognized the opportunity for Hreeder's Mix. They report that Hi Jak, a frozen dog food sold in selected supermarkets in Texas, carried a retail price of $5.59 for a 2.pound package and $6.19 for a 5-pound package CHAPTEKA OPPORTUNITY ANALYS, MARKET SEGMENTATION, AND MARKET VARICHTING EXHIBIT 2 Representative Dog Food Brands, Prices, and Package Sizes in Boston Area Supermarkets by Product Form Dry Foods Gandol Dog Tww. Dog Chow $14.99/16 Alpe Prime CE Milk Rone $6.09/24 Purina ONE $18.9 Mighty H.00/6 CENA $10035 Popim We also recommend a price-off coupon be offered to stimulate trial of Breeder's Mix. The dollar amount of the coupon has yet to be determined, Summary of Opportunities we see Breeders Mix setting upon the opportunities 1. The opportunity to be first to tap the market potential of a complete fro vendig food in Boston supermarkets 2. The opportunity to capitalive on the growing popularity of organic dog food Organic dog food sales grew percent last year. While stilla small share of the total dog food market,consumers are willing to pay premium prices for sale dog foods. For example, Newman Own Organic dog food is wild in a 12.7-ince can for $2.19 3. The opportunity to lay the groundwork for a national market roll out for Bruder MIN Creative Strategies Positioning Breeders Mix will be positioned as the finest dog food available at any price and the only thing you will want to feed a dog that is truly a member Target Market We believe Breeder's Mix should be targeted at singles and married between the ages of 21 and 51 with a household income greater than $25,000. The reason is that single adults and married couples, with and with out children, and remate households regard their dogs as part of the family The dog sleeps on the bed and has free run of the house or apartment Industry remarch indicates that 79 percent of parents with schexiage children by pet food and supplies, compared with 71 percent of parents with younger wolder children, 2 porce of roommate households and 75 percent of young chilles couples Income also plays a role in pet spending only percent of bouwhols with annual incomes of less than $25.000 spend money to keep a pet. However, Ver percent of holds with income greater than $50.000 invest in per food, supplies and care cording to research by the American Veterinary Medical Association. We see litte initial opportunity in targeting older household. Only 0 percent of older singles and 41 percent of retired couples spend money on pels Concepts Hecause Breeder's Mix is such a unique product, a variety of con cepts can easily be applied, each with adequate justification 1. The luxuricks fur com 2. The world's finest dog food 3. The will concept shouldn't your dog eat as well as you do 4. Now your dog can eat what she champions have been eating for years All these will be touched on the campaign progress Creative Directions initially, the introduction will focus attention on product Newspapers will supply a smaller themadience with facts to y all claim. The band name and package will be prominently displayed, and the copy will emplasize the product's quality Special interest ads will appear in the society, sport, son, and dining out section. This unusual media place ment is warranted by the product's unique qualities. Also, placement in there ections will pull a relatively low promotional adiget out of the mass of food estion advertising Television will provide access to a man wadience. Primectives are to register the brand name and the package in the viewer's memory. An imaginate Geographic Directions The entire campaign has been designed to commodate product introdutside the market area. When the product is the lesson will be ready the introductory ads will be ready the radio spots will be ready, and the immediate follow-up will be ready Sales Packet The sales packet shen to brokers should induk in the most pensive form ple, the following categories of informatie 1. Market 2. Suggested manufacturer's lip comers and quantity disor schedule 3. Information about treeder Mit 5. Palle 6. Order informatie 7. Reprint of the Sample shelf strip The pucket showed to persuade the supermarket foefoeder to provide free space to Meeder's Mix. The main problem lure to be over che Because of the organisational modes of supermarket using departments we will not be dealing with the regular pt feeder Instead, it will be war to pursue the front buyer to acker Mix. The other prom involves the usual higher margin for frozen food I will be necessary to persuade the buyer tut greater product tumener will compensate for a potentially lower main for Mis The tank will notweavySome 15 per of new products introduced to supermarkets each year are aimed at the freezer e Tighey percent of these products fail. It is highly likely Breeder's Own Pee Foods will need to budget about 550.000 for secting fees paid to supermarkets toy freezer pace Creative Strategy by Media Creative strategies will differ by media. Prin media will be tired to position the product against its competition by comparing it to canned and dry categories The print campaign will open with an allegating with a brief product history Learn the facts about dog food, Television will carry the heat of the attack. The most pressing problem is een as the difficulty of finding the fond in the supermarket, so the TV spot will In order to give the campaign continuity, cach ad will show the package. At the top of each of the ads designed to position the competition, the artwork re produced on the package will be used The myth/fact format in newspapers will be utilized to wake advantage of the current publicity dealing with the nutritional value of all meat dog food and the continued trend toward mene natural foods That shows a rough artistice dering for the mythm The copy Hock dealing with Broders Mis will turn the problem of Breeder's Mix's being tren into a product avantage Media Plan Because des food is heavily advertised Veeber's Own Pet Foods must follow EXHIBIT 2 Breeder's Mix Print Advertisement BREEDER'S MIX Now your dog what show dove for years General Media Strategy Achentising cives are as follows 1. Create awareness of new brand 2. Obtain distribution through supermarket cutlets 3. Motive trial through coupon redemption 4. Motivate trial through emotional impact of televisie Collateral Advertising Accomplishment of objective 2 guling distribution in su permarkets, is the main purpose of collateral hertising the sales packet contain ing fact sheets, she strip mumer advertising and testimonialetten, gives the food bruker an imprende story to tell to the supermarket buyer. This is recognized as the chical stage of the campaign for without sufficient distribution, consumer advertising will be delayed Newspaper Magazine The primary purpose of newspaper hvertising is die tribution of coupons into the market. This will be accomplished by half-page ads in major Boston newspapers. As a secondary means of distribution, full-page as will be placed in Deg Fancy magazine for distribution throughout most of the Boston market area The second phase of coupon distribution will be effected through 30-inch ads in the same nepapers. A final coupon distribution will be made through a 30-inch ad midway through the campaign Newspaper insertion will be coordi- mated with TV flight Television The bulk of the budget will be placed in TV production and time. A sorable portion of the time budget will be spent on The Late Show with David Letterman Fixed space will be purchased within the first half-hour of the pro gram. The remainder of the budget will reach daytime and nightime audiences. Each flight will begin on Monday, and newspaper advertising will be placed on Thursday of the following week Two hasic approaches can be used for 30-second TV spots. The first approach capitalizes on the love of pet owners for their deg somewhat frowy, middle aged, semigreedy woman is shown enjoying a steak dinner-contrasto a unap piring finder of canned dog food. The spends on a dose up of the product A second TV spot will emphasize location of the food in the supermarket. A description of the video and audio characteristics of this spor is as follows Videre Audio Supermarketing show AnnoncerThere are many things to with bulig under Geoffpof Manager walkst. Tey hides dolore Rembertheder's Mis is a perfectly balance des of and enriched ca Dolly sexy looking at competitive and Coseup by and Roy walks of some pre-food People to start Acer Bestimportant remember you find you shop for the more your family EXHIBIT 4 Alternative Advertising and Trade Promotion Expenditure Levels for Breeder's Mix SWINNI Tulevision New Marine Collateral also W.NO $529,000 190,00 100.00 35.900 25.50 $700,000 Two in contact to details can come and we Program Budget The budget for the program described can be either $500,000 or $700,000 (Exhibit . We see this expense and the 50.000 se ting fee as bring the only incremental cost asociated with the launch in the Boston market We believe that this expenditure in Ramble. Nince most major established brands are spending 7 to 4 million annually for ongoing nationwide media promotion. For a new product, a higher initial expense is necessary. For instance, about 1 million was spent on television and print advertising to introduce the hugely successful Beneful, a premium dry dog food. A line extension, Alpo Live with fewer calories in regular Alpe, was launched with a $10 million national 1. Quantitatively describe the market that they are considering in terms of both dogs and dollars. Remember that market in this case only refers to the Boston area and the supermarket channel. a Market in terms of Dogs # of dogs in the U.S. = Adjusted market size for dogs only in Boston = Adjusted market size for Boston dogs through Supermarkets b. Market in terms of $ $ size of U.S. dog food market - Adjusted $ market size - only in Boston = Adjusted $ market size - only Boston dogs through Supermarkets = 2. a. Describe the Marketing Ventures Unlimited segmentation offered in the case. They describe this as the target market' on page 118 or the 6th page of the case. b. Based my description of segmentation in the Introductory Podcast, do you think this is a good segmentation scheme? Why, or why not? 3. Instead of using the proposed marketing consultant's segmentation, let's use the three categories described in Exhibit 1 of the case. This is called behavioral or transactional segmentation and is becoming increasingly common as we get more access to the large databases that accumulate with electronic transactions. The first issue is to quantitatively describe each segment, whether dry, canned, or treats. But remember we are only considering in this case the Boston market through the supermarket channel Take the market sizes you calculated in #1 above and multiply out by the percentages for each segment in Exhibit 1. Again, do both dogs and S. Segments in terms of Dogs a. Dry = b. Canned = c. Treats = Segments in terms of $ e. Dry = f. Canned = h. Treats = 4. Let's think about the positioning of Breeders Mix by creating a Perceptual Map The first issue is to select the dimensions on which you want to compare the segments. For this dog food market, let's take price and quality. The intersection of the two axes represents average price and average quality, from the perspective of a typical household purchaser of dog food.' How do you think the different segments compare on price and quality? To create the map.just move the stars to where you think they belong along the axes. If the map is not on a single page by the time you get here, then make sure you align it all on 1 page so I can see everything. Cann Quality Dry Breede r's Mix Prica 5. Take a look at the perceptual map you just completed. Which segment is most like Breeders Mix? In other words, which star is closest to Breeders Mix (see, marketing really isn't that difficult!). When you compare multiple perceptual dimensions across many subjects, the math can get very tricky, but this exercise demonstrates the underlying principle. a. Competitor = Note the implication here. This means that if we were going to introduce Breeders Mix into the Boston Supermarket market, we would be positioning, or competing directly against this segment. Make sure this makes sense to you before proceeding. 6. One of the critical issues in this case is trying to forecast the possible success of this Breeders Mix introduction. I do forecasting through breakeven analysis. To do a breakeven, we need to figure out the contribution, which means we need a price. Of course, the case doesn't give us a price, but we can figure it out. The case gives a lot of information about various dog food prices. Which one do we choose? Does it make sense that we would most likely price Breeders Mix close to the category or segment of dog food you selected in #4? If not, call me at 215-518-0974. What are the price ranges for the segment that you selected in #5. Note: Exhibit 2 in the case give the prices in units of various sizes - from 5.5 ounces to pounds! To set up the comparison, first convert everything to ounces?. Then multiple by 16, because Breeders Mix is going to be sold in 1 pound, or 16 ounce packages. a. Range if priced as if the competitor segment = 7. These prices in #6 are just the reference prices that customers in these segments will be accustomed to seeing. We can price Show Circuit above or below these references. Bringing in the qualitative factors from the case, what price would you choose for Show Circuit? Justify your decision in 1 or 2 sentences. a. Recommended Show Circuit Price 'as if competitor = Justification: 8. Remember, though, that these will be the prices that consumers pay. Breeders Own Pet Food will not receive this amount because of the margins that the retailers and brokers will take. Please calculate the price that Breeder's Own Pet Foods will receive if the customer pays the prices you proposed in Q5. a. What is the Breeders Mix price you selected above that consumers will pay? #1 = b. What is the margin that retailers receive (from the case)? Margin = Adjust the price in #8.a and write the price the retailers will pay to the brokers in the space below. #1 = c. What is the margin that the brokers receive (also in the case)? Margin= Reduce the price in #8.b and write the price that Breeders Own Pet Foods will get from the brokers in the space below. #1 = 9. Finally, we have two price scenarios that we can use to calculate a breakeven and get an idea of the likely success of the Breeders Mix introduction. Let's calculate these breakevens. So everyone will be working with the same numbers, let's assume that the price that Breeder's Own Pet food will receive from the brokers (i.e. after the margins) is $5 per unit. Don't worry if you didn't pick a number like this for your price. I am just randomly picking a number to make my grading easier. Also, let's do the analysis in terms of units, as opposed to cases. Finally, to make this case more realistic, let's assume that the variable costs are $40 per case. What is the contribution for each tub of Breeders Mix, assuming the $5 sales price? In other words, assume that Breeders Own will receive $5 per unit. Note that the variable costs are listed on a per case basis, so you will have to convert to the unit level. Variable Costs = Contribution = In order to calculate a breakeven, we will need to know all the fixed costs. The case does not give you all of the capital investments needed to calculate a 'true breakeven' (1.e. a breakeven on the whole start-up project). Just focus on the breakeven for the costs of the marketing consultants proposed marketing plans (i.e. a Marketing Breakeven'). In other words, we are asking the question, what is the breakeven on this marketing plan? Remember that there are two possible levels of spending for the marketing program or campaign. Remember we also need to include the slotting fees. a. (smaller) Marketing Costs A = b. (larger) Marketing Costs B = These will represent our fixed costs. Once again, they are not demanding any profit in this case, so Profit = $0. What is the unit breakeven for each cost structure? Please show your work. c. Unit B/E on Costs A= d. Unit B/E on Costs B = Go back and look at #1 and find your response for Market in Terms of Dogs Can you see the problem with using unit breakevens in this case? You don't know how many units each dog will consumer per week or per year, so it is not particularly useful information in this case. Next, we calculate the breakeven in dollars (BE). What is the Contribution Margin? What is the $ breakeven for each cost structure? Please show me the formula you use to calculate your answer. Again, Profit = $0 e. S B/E on Costs A = f. $ B/E on Costs B = 10. So far, this project looks pretty good. The key to understanding this case, though, is that you will not be competing against the whole dog food market, but the one or two segments that are most like Breeders Mix. Let's calculate what market share you would need to succeed. This term is actually a fatal misnomer for many companies. It is important to calculate the share required to breakeven in the target segments - not the entire market! First, let's pull up some data we have already collected: p=SB/E on the larger proposed marketing plan (take from 9.f) = x = Size of segment you are competing in (take from 5.a) in terms of $ (taken from 1.b) = Now, let's calculate the market' (or segment) share for the two most likely scenarios you selected in #5. We will only use the larger proposed marketing plan in our calculations for simplicity. Market Share' needed to breakeven in Segment 1 - 10.a Divide p/x (taken from previous page) = 11. Now, let's frame a decision based on this analysis. On a range of 1 to 10, rate the competition in this market space, where 10 is the most vicious competition ever and 1 is a wide open market: Hint: did you see how much some of the established brands spend on introductions on the last page of the case? 12. Do you think that Breeder's Own Pet Foods should accept the marketing consultant's proposal? Remember that they must capture market share in these segments in the first year. Create an argument for your position of 3 to 4 sentences in length based on both the qualitative and quantitative data in the case. 13. In a couple of sentences, why is it better to do segment share' as opposed to market share"? Final Note: Be sure you understand these calculations. From now on, I expect you to be able to do this on the back of an envelope in the midst of a meeting