Existing Market:
1)
The next product I hope to develop is cat food.
2)
Interviewees include three people close to me
that became very involved throughout my idea planning. All three mentioned they
see growth in the future from within and through expansion. One of them said I
might be able to sell this idea to an investor as well, which would allow me to
tackle the next venture.
Another one said we should also focus our
attention on developing healthy treats because their dog gets sick with the
ones sold at the supermarket.
3)
My next market includes expanding into providing
cat food. I decided on this course of action because it will use most of the
same resources used to develop the dog food. Having now the experience in terms
of production and marketing, developing a successful cat food line will be more
straightforward and less risky. We will consult the same team of veterinarians
and animal nutritionists, train our staff on cat nutrition, use the same
facilities and machinery, and implement similar marketing techniques.
New Market:
1)
We expect our customers to be upper middle-class
suburban pet owners. A very different target segment we could reach is that of
middle class and lower. This would require, however, significant cost
reductions, which are not very easily attainable in the present. Maybe once we achieve
economies of scale, we can somehow create a lower priced product that people
with less disposable income can access.
2)
People in this market are no different from
others in one thing: they also see their pets as part of their family. Being
able to provide them with affordable fresh food for their pets will make them healthier.
Healthy pets mean less diseases in the long run, which can be expensive and deathly.
3)
This market is less concerned with spending more
money on their pet’s foods. That’s why it is very important to provide a
quality product at a same price point as many competitors that they use. They
are less willing to try a new product because of the cost alone.
I like how you plan to appeal your product to middle as well as lower class customers in the long term future of your company. However, I know product quality is very important for product, and when you have to start cutting costs to bring the price down, inevitably, some of that quality will be taken from it. Just be careful not to turn your product into a more general commodity!
ReplyDeleteI am not too familiar with the ins and outs of pet food or the pet food market, but for middle class and lower class customers you may be able to develop some kind of supplemental food that gets mixed in with the pet's regular food. This way the pet can still get important nutrients, but the owner doesn't have to shell out money on entire meals that could get expensive.
ReplyDeleteI think your idea to develop a fresh cat food as your next step is a great idea. Since you already have the technology and resources that you used to develop the dog food, it will be an easy transition to make cat food. You will be able to use the same storefront, website and advertising to sell both products.
ReplyDelete