Thursday 10 May 2007

What Category Leaders Do


For some years now, one of our clients, Masterfoods Petcare (Uncle Bens), has taken a strategic approach to growing the petcare category. With market share in the high 70%s in some channels, it was apparent that growth would only be achieved through overall category growth. Think about the numbers. If I have 70% share and am chasing 10% sales growth (in a market growing by 3%) then I need will have to increase my market share from 70% to 75%. Not sure how my customers might react to that play.


Consequently, the approach by Masterfoods has been to grow the category by increasing the incidence of pet ownership in Australia and increasing the share of the premium segments in wet, kibble and snack. You see it everyday in their advertising - We're for Dogs.


So it is very interesting to see Nestle Purina starting a similar process in the US. I've just come actross this series of "tips". I wonder what else they're trying?


Jason Wenn

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