How Should Show Circuit Be Positioned and in Which Part of the Market Would It Best Fit?

1. How should Show Circuit be positioned and in which part of the market would it best fit?

Based on the below analysis if Show Circuit Dog Food were to enter any of the specific dog food markets it would not be able to compete very well. Price wise

a. What price would you recommend and why?

When considering the pricing of Show Circuit a series of factors have to be taken into account. The total Variable cost of manufacturing Show Circuit is $6.37. Along with that price the 22 percent store margin and the possible 7 percent commission for brokers have to be taken into account. Including all those factors increases the price of Show Circuit dog food to $8.22 per case which is about 5 cents an ounce. This price is just the baseline to ensure that the costs are covered. Show circuit has to be able to make a profit so we have to make sure we price the product correctly. Analyzing the current price of the leading producers in each dog food category the average prices per ounce are as follows: dry is 6 cents, canned is 5 cents per oz, semi moist is 5 cents and dog treats are 21 cents per oz on average. Along with that the product sizing is different for the various dog foods which can be a deciding factor when purchasing. As it can be seen that show circuit with just the basic costs is already priced higher than the other dog foods so it would not compte well against these products. However, there is one dog product out there called Bill Jac, which is also a frozen dog treat and is already sold in the freezer section of the store that coule prove to be a comparable competitor. Its price goes for 6 cents per on ounce on average between the 2 and 5 pound prices which is in line with Show Circuit. Since show circuit is actually a dog food that has a lot of health qualities it can be priced a bit higher. If show circuit priced its food at 6 cents per oz then its sales would be 90 cents per tub and 10.80 per case. The profit after after the removal of the expenses would be 2.58 which is approxatemly 24 percent profit of total sales. Show circuit would be priced the same as Billy Jac.

2. Estimate

the size of the market (i.e. market potential) for Show Circuit given its positioning,

The total US estimated population is 65 million people with $7 billion in sales. The Boston area, which is the target focus area for Show Circuit, accounts for approxametely 1.2 percent of the total US population. Translating that to sales the 1.2 of & 7 billion dollars is about $84 million. Since show circuit will only be sold through supermarkets which account for 36 percent of the total sales the Boston market potential within supermakets is estimated at $30,240,000(See Appendix ## for details)

If Show circuit targets

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