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

A New Client - Village Roadshow

At JSA, we've commenced our latest project with Village Roadshow. It is an exciting project with extensive work with their Key Accounts, Sales Management and Field Sales operations.

Roadshow are the number one player in DVD business. With recent blockbusters - Happy Feet, Lord of the Rings and the Matrix.

A few facts for you:

• The DVD business is still a stong growth category for retailers - inspite of piracy (valued at $250 million this year) and Internet downloads.


• Many of the Mass Merchants treat DVDs as a loss leader category


• It costs a lot more than the $2-3 people think it costs to produce a DVD. Aside from the physical costs there is the costs associated with royalties. But more than anything its the risk they take with new films that needs to be factored into the cost of successful ones.

Brandon Hill is the Sales Director at Roadshow. Some of you might remember his last stint as NSM with Bonds - so it's good to see clients coming back for more.

Brandon has already achieved some great things at Roadshow and we look forward to helping them maintain and extend their Number One position.

We'll have some more news as the project progresses.

Jason Wenn