Professional Documents
Culture Documents
(Sabkara, 2008). The price of a successful product is for a reason, as it maximizes the value of
shareholders. Big Dog is a privately own organization therefore, pricing policy is more after
following the right price for customers and can go for penetration pricing to raise awareness
about the product and get the attention of maximum number of people.
Currently Big Dog has adapted competitive pricing as existing market of pet food is very volatile
and has cutthroat competition with the products of US and Germany. In competitive pricing
strategy the price range is decided by the existing market trend as it neither focuses on the cost
nor on customers rather on pricing strategy of competitors (Bitner et al., 1981). Big Dog has
perhaps adapted right pricing strategy for their products as they have not established themself as
a brand who can bargain in price currently.
Big Dog can go for value based pricing also but before that they must know about the price
elasticity of their products to earn maximum profit. With increase in price, demand gets down
but there is always an optimal price to get most profit from the product (Kotler et al., 2008). Big
Dog needs to know that price through value based pricing. Value based price is customer based
pricing approach and help in determine that how much customers are willing to pay for the
particular product (Kotler et al., 2006). Big Dog has three product line raw food, dry food and
supplements; therefore by taking one product of one product line can approach for value based
pricing strategy.
To get the desired outcome can use many pricing strategy together (Roosta et al., 2009). Thus,
another favourable pricing strategy for Big Dog could be tiered pricing strategy as there are
hundred of similar kinds of pet food products in the market. By considering that Big Dog can
offer different version of their original product as it will help to know about the image of product
among customers and also can figure out the price elasticity of the product. Importantly, good
product matters more than pricing strategy.
Currently Big dogs is focusing in their natural product and booming industry and to providing
information about their product they did a campaign. Big dog also come up with a six month
supply promotional activity, in which they award redeem vouchers in buying Big Dog product
from nearest Australian Big Dog Pet Foods store.
But to be exclusive in the industry Big Dog is has no strategy for their promotional activities and
promotional schedules. Big Dog has lemmatized it among the definite customers and has not
implemented any promotional schedule. For advertising Big Dog is using old tools more focused
on personal selling.
Therefore, its a right time for Big Dog to redecorate its image with great promotional strategy.
Although many big players are there in the market, but Australian pet food industry is in nascent
stage as it is estimated to be in the tune with annual growth of 10% (Euromonitor, 2014a). Big
Dog has to embark comprehensive marketing campaign to aware and educate large mass about
the nutritional value of the product and for developing its brand. Big Dog have to positioned it as
a provider of nutritional, natural and balance diet pet food provider.
In addition Big Dog also go for promotional strategy through offers such as Buy one and get the
second free, discount coupons on next buying as it helps to ensure customers sentiments were
valued by the company. To maintaining a good public relation, sponsoring events and activities
and providing after sales service is also one of the best promotional strategies.
product, company have to discover the target market with maximum number of peoples that
possibly can be potential buyers of the product (Kotler, 2003). People also include employees of
the company and were important in marketing mix, as they represent company to mass and
deliver service. Therefore, it is very essential to train the right peoples for growth of company.
In Big Dog the importance of people in marketing is neglected, however people are the backbone
of the company. For Big Dog people are all the pet lovers of Australia, who owns pet or desired
to own a pet in Australia. Along with this Big Dog have to find the right people who genuinely
believe in the Big Dogs product and facilitate in perform the best additionally, Big Dog should
take honest open feedback from the customers as they are the important people of the business.
Big Dog has to take initiatives to sure the right hand is there in the organization, hence training
employees is essential as training help employees to enhance skills and provide opportunity to
utilize skills and improve in the best way they can with continues development. Another
important people of marketing mix is customers, therefore providing service to them is essence
of business.
more revenue in time (Kotler, 2003). The right processes of business, able to market the products
and brand well.
Big Dog is lagging behind in maintaining a fruitful and sound partnership with its distributors
and retails. Big Dogs needs to have a good alliance and partnership with its suppliers,
distributors and vendors through continues feedback, response and by putting joint affiliation on
assured issues.
Product
Process
1. Customer
Focused
2. IT Support
3. Business led
Distribution
Channel
1. Retail
2. Wholesale
3. Internet
4. Catalog
1. Quality
2. Value
3. Availability
1.
Competitive
2. Value based
Pricing
Promotions
BIG DOG
Target Market
1. Marketing
Communication
2. Endorsement/
Branding
3. Sales Promotion
Physical
Environment
Partnership
1. Distributors,
retailer, suppliers
2. New ventures
Price
People
1. Training
2. Culture
1. Logo
2. Brand
ambassador
3. Office Layout
9. CONCLUSIONS
The whole paradigm of marketing mix had dominated the marketing strategy of any organization
and the strategies vary according to the market conditions, needs and resources. The importance
of the element of marketing mix depends upon the time and company conditions. In todays pet
food industry pet owners are replaced with pet parents. They refer their pet as their children as
sensitives for them as like child. According to (Euromonitor, 2014a), 85% of dog owners
considered their dog as their family.
This has created as both opportunity and challenge for the company like Big Dog as there is
booming industry but very volatile and dynamic customers and market. Therefore by using
marketing mix, promotion, public relations and publicity, promotional strategy Big Dog can
revamp the company in new highest.