Market Situation
How smart is it for a specialty company limiting itself mostly to pet food for dogs and cats to expand from a mom and pop shop to a growing national outlet chain? The company seems to be doing its research. Euromonitor International revealed increasing dog and cat food sales of 5% between 2011 and 2013 equal to $1 billion in sales revenue for the “more than half of all American households with at least one cat or dog” (PFI, 2014). The key to success becomes focused on how to contend with the competition using pricing and retail strategies.
Competition and Pricing Strategy …show more content…
The centralization of communities around the local grocery store is becoming more prominent as old areas receive face-lifts. Independent pet supply stores offering premium products and services are attempting to find a niche in these communities but the ability to compete with the large PetSmart and Petco chains within a 10 mile radius may not be realistic. This space is where Chuck and Don’s has managed to make its