An OoldOO doOOOg with new tricks A Madison Mind Campaign Account director Madison Mind Our Team Holly Anderson Chloe Colaluca Account Director PR Director Hayley Snell Emily Lynch Creative Director PR Director Karly Nelson Kyla Rosenberg Creative Director Research Director Izzy Pompeo Media Director 2 Account director Table Of Contents 4 Situation Analysis 21 Campaign Strategy 30 Creative Plan 44 Media Plan 58 Public Relations 3 Situation Analysis 4 Purina was founded in 1894 when founders William H. Danforth, George Robinson, and William Andrews created the Robinson-Danforth Commission Company1. They founded this company at first to feed farm animals presenting animal feed made of natural ingredients such as corn and oats. Previously, it was common to find inexpensive ingredients such as sawdust in animal feeds. The name “Purina” was created to represent “Where purity is paramount,” the first slogan of the company5. In 1902, the company was renamed Ralston Purina after gaining an endorsement from health expert Dr. Ralston5. Purina Dog Chow took the pet food industry In 2004 the Nestlé by storm in 1956 when it introduced a technology Purina PetCare known as extrusion to create unique shapes now Americas division known as kibble. Purina continued to be a trailblazer in was formed by the pet food industry by acknowledging the need for merging North supplementary proteins and nutrients for dogs. In 1963 America and Latin Purina launched Purina Puppy Chow. Two decades America enterprises. later Purina became the first company to introduce Two years later, Nestlé Purina had the largest share real meat as the first ingredient in kibble1. of the pet food market, holding 32% of the market share4. Purina launched a personalized dog food line The Nestlé Company was founded in 1866 and was “Just Right” in 2014. This pet food line combined pet a pioneer in the condensed milk and infant formula owners’ knowledge with Purina’s nutrition knowledge industry. It is the largest food producer in the world6 to create a custom dog food delivery1. Currently, the andw went on to expand and started leaning towards red and white checkerboard logo is one of the most nutrition, health, and wellness in the early 2000s2. In recognizable logos in the country. The logo was 2001 Nestlé acquired Ralston Purina for $10.3 billion created in Danforth’s memory of the Brown family and merged with Nestlé Friskies Petcare to form who dressed in memorable checkerboard fabric5. In Nestlé Purina Petcare. This acquisition allows Purina to 2015, Nestle bought Merrick Pet Care to help Purina expand the reach of Purina products on a global scale1. expand into the specialized premium market7. 5 Industry Trends The Pet Food Production industry has thrived in Dog food is forecasted to be responsible for 64.9% of recent years. It is anticipated that ownership of pet food revenue in 2019. Dry dog food, commonly animals will continue to grow and benefit the marketed as kibbles, is the most popular category industry. Consequently, industry revenue is projected of dog food. This is due to its low price point and to grow within the next five years as the number of accessibility. Dry dog food can be held at room pets is projected to rise at an annualized rate of 0.5%. temperature without going bad, making it a favorable choice for dog owners6. An expansion in pet ownership has combined with increasing regard towards treating pets as Mass merchandisers are predicted to account individuals from the family, thus promising an for 38.7% of pet food earnings in 2019. These increased purchase of more expensive premium merchandisers such as Target and Costco offer pet foods promoting increased benefits and special large discounts due to their large purchasing power formulas. Birth rates have declined in recent years and carry a large selection of goods. Online pet which has lead consumers to consider pet ownership food retailers are predicted to account for 14.8% as a substitute for having children. Pet parents are of pet food earnings in 2019. E-commerce has more likely to spend on premium and natural pet grown significantly in the past five years due to its foods, this has helped spark economic growth in the specialization in niche pet foods and convenience. industry. A pet parent is a new term in the pet food Supermarkets and convenience stores are the third- industry to describe pet owners who are passionate largest retailers for pet food. Online pet food sales are about their pets and treat them like family6. expected to outlast these sales in the future6. Industry revenue is projected to expand by 4% in 2019. Strong expansion in pet ownership and disposable income is expected to benefit the industry. When disposable income is high, consumers spend more on goods such as pets and premium pet food. To keep up with increasing demand, industry drivers are anticipated to keep creating formulas and products that promise breakthrough benefits, for example, individualized formulas for age groups6. 6 Competitive Analysis The pet food industry is mostly dominated by four The dog food industry is competitive, there are many key players in the industry. Nestlé holds the biggest ways for competitors to distinguish themselves. market share of the industry at 33.7% since July One of the most important variables in pet food 2019. Mars Inc. has 17.8% of the market share. The competition is price. Product reputation and JM Smucker Company has 11.2%. Lastly, the Colgate- marketing are also very pivotal in influencing Palmolive Company has 6.2%. The rest of the market consumers. However due to recent industry trends, is 33.7% made up of smaller companies6. New price is no longer the most important concern for entrants to the market face several barriers including many consumers. According to a recent consumer FDA regulation, accessing production facilities, and survey, 90% of pet owners view their pets as family being stocked on shelves at stores with customer members. As a result consumers are willing to pay loyalty extra for increased benefits. Nestlé continues to be the leader in the pet food Veterinarian recommendation of dog food is the industry, but has experienced a sales drop of 2% second most important factor in purchasing. Overall in the past year. The shift towards more premium health and balance is the number one factor. Meat dog food products in mass retailers has launched proportions, organic qualities, and customized the growth of brands that once only distributed to ranges have become more important than specialty stores8. Both Nestlé and Mars Inc. have accessibility and popularity10. Transparency, quality, launched specialty lines to expand into the premium and value are necessary to succeed in the present dog food outlet such as Purina Pro Plan and Wild market. All pet food claims must be supported and Frontier. explicit, it is not enough to claim something as “natural”11. 6 7 Competitive Analysis Dry Dog Food Manufacturer Where it’s sold Price 1st ingredient Petsmart, Petco, Amazon, Chewy, Pet Supplies plus, Tractor Purina Dog Chow Nestlé $11.99 (18.5 lb bag)* Whole grain corn Supply Co, Target, Walmart, Sam’s Club, Dollar General Petsmart, Petco, Amazon, Chewy, Pet Purina One Nestlé Supplies plus, Tractor $21.99 (18.5 lb bag)* Chicken Smartblend Supply Co, Target, Walmart, Sam’s Club Petsmart, Walmart, Hills Science Diet Colgate-Palmolive Tractor Supply Co, $34.99 (15 lb bag)* Chicken meal Amazon, Chewy, Petco Amazon, Petsmart, Chewy, Walmart, Ground whole Pedigree Mars, Inc. Petflow.com, Petco, $19.00 (18.5 lb bag)* grain corn Target, Tractor Supply Co Amazon, Petsmart, Chewy, Walmart, Blue Buffalo General Mills Petflow.com, Petco, $29.39 (15 lb bag)* Chicken Target, Tractor Supply Co *Prices may vary, information gathered from Amazon.com and Target.com 8 Consumer Analysis Using 2016 Simmons OneView data we analyzed The median age of Purina consumers is age 40. Dry Dog Food Manufacturer Where it’s sold Price 1st ingredient consumer demographics and psychographics to However there is an almost even distribution of determine our primary and secondary consumers. consumers from age 18 to age 44. There is a smaller Petsmart, Petco, According to the American Veterinary Medical demographic of consumers ages 55 to 66. 80% of Amazon, Chewy, Pet Association, there are approximately Forty-Three Purina consumers are homeowners. This is a strong Supplies plus, Tractor Purina Dog Chow Nestlé $11.99 (18.5 lb bag)* Whole grain corn million households with dogs in the United States. statistic most likely because it is most common to Supply Co, Target, Dogs are the #1 most common household pet in the raise pets in a home. 52% of Purina consumers are Walmart, Sam’s Club, United States. married and 57% have children. The distribution of Dollar General male and female consumers is statistically small, Petsmart, Petco, Outlined on the with males making up 45% of consumers and Amazon, Chewy, Pet Purina One map graphic are females 55%. Nestlé Supplies plus, Tractor $21.99 (18.5 lb bag)* Chicken Smartblend the green states Supply Co, Target, where consumers 81% of Purina consumers are white, 8% are African Walmart, Sam’s Club are most likely to American, and 10% are made up of other races. Petsmart, Walmart, purchase Purina This shows Purina consumers are primarily white. Hills Science Diet Colgate-Palmolive Tractor Supply Co, $34.99 (15 lb bag)* Chicken meal Dry Dog Food. Additionally, 84% are non-Hispanic consumers. Amazon, Chewy, Petco Purina consumers Purina consumers also demonstrate a strong fall mostly within likelihood of being conservative13. This most likely Amazon, Petsmart, the southern and midwestern regions of the United links to the fact Purina is only produced in North and Chewy, Walmart, 14 Ground whole States.