ANALYZING THE IMPACT OF COVID 19 AND COMPANY PERFORMANCE: A CASE STUDY OF PET FOOD COMPANIES.
INTRODUCTION
- Introduction
- Industry Overview…
- Overview of the Company
- Company Background
- Vision and Values
- Product Range
- Target Market & Distribution Channel
- Financial Consideration
- Supply Chain Outline
- Market Trend
- Problem Statement
- Objective of the Case Study
- Competitive Landscape
- Purina (Nestle)
- Happy Dog (Interquell GmbH – Germany)
- Hill’s (Colgate-Palmolive)
The company is a wholesaler and distributor of products ranging from confectionery products to pet food. The company's vision is to build a better world with its slogan "The world we want tomorrow starts with the way we do business today".
LITERATURE REVIEW
- Introduction
- Marketing Mix
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
- SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Porter Five Forces Model
- Bargaining power of buyers
- Bargaining power of suppliers …
- Threat of new entrants
- Rivalry
- Threat of substitutes
In the following subsections, a brief discussion of each of the seven elements of the marketing mix is presented. Rivalry refers to the number and strength of existing firms that are present in the same industry (O'hara et al. 2017). Case study is one of the commonly used methodologies in qualitative research (Creswell & Poth, 2017).
Being a marketer and retailer in the pet food industry, a proper mix of marketing mix tools is significant for Royale. Increasing customer price sensitivity is another threat Royale poses to the industry.
RESEARCH METHODOLOGY
Introduction
The reason for this choice is because Royale is one of the MNC pet food companies. However, this unique strategy did not see any jump in the brand's sales figures. To understand the brand scenario in detail, this study conducted a SWOT analysis for Royale.
The visibility of the shelves in the shops is one of the key factors in attracting the attention of consumers (Fornari et al. 2013). One of the identified issues related to the promotional aspect is Royale's unappealing ad design.
Research Design & Approach
Philosophical Worldview
Whether a study should follow a qualitative or quantitative design depends on the underlying philosophical worldview of the researcher (Creswell & Creswell, 2017). A philosophical worldview refers to a core set of beliefs that guide appropriate action (Guba 1990, cited in Creswell & Creswell, 2017). This worldview assumes that participants make sense of their world based on their experiences, and eliciting participants' opinions by interacting with them (eg through interview, observation, etc.) can help develop a deeper understanding of the research question (Creswell & . Creswell, 2017).
Qualitative research design is considered more appropriate for studies that employ the philosophical worldview of constructionism (Creswell & Creswell, 2017). Some of the widely used methods within the domain of qualitative design are narrative research, phenomenology, grounded theory, ethnography and case study (Creswell & . Creswell, 2017; Creswell & Poth, 2017).
Methodology
Some of the widely used methodologies in the field of qualitative design are narrative research, phenomenology, grounded theory, ethnography and case study (Creswell &. According to Bhattacharya (2017), there are three types of case studies which are single instrumental case study, Collective case study and internal case For the present study, the type of case study will be single instrumental as this type of case study involves a single case.
Furthermore, instrumental case study involves research aimed at understanding a problem related to the selected case. For the present study, the case under investigation is a single brand called "Royale", and the objective is to have an in-depth understanding of the factors that influence the performance of the brand.
Data Collection…
- Primary Data
- Secondary Data
As mentioned earlier in chapter-1, the purpose of the present study is to evaluate the brand's competitive advantage and performance in the current and post-pandemic era. In this study, secondary data involved intensive literature review on the similar study undertaken by different authors. In addition, data from the company documents were also used to understand different aspects of the study objective.
Sampling Method…
Sample Size
Interview Design
Data Collection Procedure
Data Analysis…
For example, in the pet food industry, almost all competitors emphasize the quality of their products, which they claim are beneficial for pet health. Based on the findings, they reported that one of Royale's biggest strengths is its research and development (R&D) support. This quality assurance mechanism is one of the key points for Royale which has helped Royal to develop a good image in the market.
One of the possible ways could be to leverage the power of Royale's extensive R&D capacity in generating new and different types of pet food products. This growth outlook for the entire pet food industry certainly bodes well for the dog food sector as well.
ANALYSIS & EVALUATION
Introduction
The chapter also describes Porter's SWOT analysis and five forces model for the brand to understand Royale's industry prospects and bottlenecks. A comprehensive marketing mix, SWOT analysis and Porter's Five Forces Model have been applied to evaluate the brand's operations and performance.
Marketing Mix Tools
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
Royale's strategy was to market itself as a premium brand while offering a lower price than its competitors. Not offering anything different from the competitors in a unique way is responsible for the lower sales volume, as one of the officials admitted. One of the employees indicates that he is very inspired by such an initiative of the organization.
Without the interference of the retailer in between, Royale tries to effectively connect and promote to the customers. Ownership of the brand name, slogans, designs, brand content, product inventions is critical to the success and equity of the brand.
SWOT Analysis
- Strengths
- Weaknesses
- Opportunities…
- Threats
As a premium brand in the industry, Royale needs a well-trained employee base who are motivated to increase the sales volume of the organization. Without much product placement in many places, it is difficult for Royale to instill the brand recognition in the minds of mass people. Opportunities are the favorable external factors in the business climate that can benefit from and contribute to a positive outcome for the company (Namugenyi et al. 2019).
Officials of the organization cited intense competition in the industry as the biggest threat to Royale. Such initiatives by competitors increase competition and threaten Royale's market position.
Porter’s Generic Strategy
- Competitors Analysis
- Market Analysis
- Price Band
- Brand Shares
As can be seen from the findings, one of the key advantages of the Royale site element is that it is present both online and offline. Among the different types of advertising, Royale should now focus more on persuasive advertising. However, as highlighted in the findings section, one of the existing issues with the people element of the marketing mix is ineffective relationship management with retailers.
As reported in the findings, Royale has its own door-to-door delivery system to meet customer needs. Prioritizing the Extended Marketing Mix at Different Stages of the Product Life Cycle: The Case of the Food Industry.
DISCUSSION AND RECOMMENDATION
Introduction
This final chapter of the thesis provides a full summary of the findings and their implications for the Royale brand. In accordance with the research objectives of the study, the findings and their implications are discussed together with supporting arguments from the literature. Finally, the chapter concludes by highlighting the limitations of the study and outlining some possible avenues for future research.
Discussion from the Perspective of Marketing Mix
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
One possible solution may be to take over the distribution channel of the vertical marketing system (Kotler & Armstrong, 2017), where Royale will launch its own. Effective management of retailers is very important as they are one of the key entities through which the product is sold to customers. Further, since Royale is present in both online and offline stores, one of the retail strategies it can undertake is omni-channel retailing.
However, one of the issues for customers is, if they want to enjoy the free shipping, they need to order a product with a minimum value of RM500. If Royale plans to use its own delivery fleet, then it must provide an accurate assessment of delivery performance.
Discussion on SWOT Analysis…
Furthermore, as shown by the findings, Royale has a good after-sales commitment in the form of "money back guarantee". These strengths of Royale can be used to reduce one of Royale's weaknesses, which is lower brand recognition in the dog/pet food market. What Royale can do is to highlight its strengths (i.e. superior QC capability, money back guarantee) in the marketing communications.
Therefore, Royale can use this strength in the online market to acquire more millennial customers. It is true that there are also other premium pet care products on the market, with a good market share and a good reputation.
Discussion about Porter’s Generic Strategy
- Discussion on Market Analysis
- Discussion on Price Band & Brand Share
As Royale establishes itself as a premium pet food product, the high quality assurance can actually help to attract the attention of the premium segment customers as premium segment customers are more concerned with product quality than price. Despite some setbacks during the COVID-19 pandemic, the pet food industry has experienced steady growth over the years. It is clear from the findings that wet pet food is more expensive than that of dry pet food.
Given the pandemic situation and the economic downturn, it is assumed that the dry pet food market will grow faster (Bundele & Deshmukh, 2021). It will therefore be wise for Royale to focus more on innovation and dry food production. Being the premium pet food brand, it has to focus entirely on the demand of its target market as the price and quality difference between premium and economy dry pet food is wide.
Key Observations from the Case Study
Contribution of the Case Study
Malaysia Pet Food Market Share, Size, Business Growth, Trend, Segmentation, Major Key Players Analysis Industry, Opportunities and Forecast to 2023. Retrieved November 20, 2021 from https://www.wboc.com/story/44537169/ malaysia- pet-food-market-share-company-size-growth-trend-segmentation-top-key-players-analysis-industry-opportunity-and-forecast-to-2023. Retrieved February 14, 2022, from https://www.researchandmarkets.com/reports/5318416/malaysia-pet-food-market-growth-trends-covid.
The pet food industry: an innovative distribution channel for marketing feed products from welfare-friendly production to consumers. Factors influencing Chinese consumers' pet food purchasing behavior in China (Master's thesis, University of the Thai Chamber of Commerce).
Limitations and Future Research Directions…
Conclusion
