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Strategy Marketing of Royal Canin

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Today, one in five households has a pet, such as a dog or a cat. In addition, the number of people rearing domestic animals in their household is growing. Indeed, people attach a lot of importance to their pets, and give them a special place in their family. The human-animal relationship is experiencing a dramatic intensity, a bond develops between the animal and its master, and pets are often considered as human counterparts.

Many products, accessories, or other derivatives are being developed for animals to cash in on this trend. Nutritional products for pets have recorded robust success so far. Consumers attach particular importance to the health of their pets, and we will investigate the pet food market later. On the pet food market, we can explore different areas such as: the segment of pulses and moist treats. Through various matrices, we can account for the role of these different segments on the pet food market and thus analyze the consequences.

Around 1960, pet food market was created in France at a time when pet owners were spending very little of their income on them, and often fed leftovers from their own meals to their pets. With regard to Royal Canin, the company was founded in 1967 by French veterinarian Aimargues.

Royal Canin managed to make itself known in 1971 by TV spots, a first in the pet food industry. The company's success can be attributed to the various promotional events featuring pets in its communication strategy. In 1996, the products of the brand Royal Canin withdrew from the supermarkets and are thus now available from specialist distributors such as pet stores or breeders and even among veterinarians. Consequently, this turn around in strategy led to selective distribution.

The pet food market was revolutionized by Royal Canin in 1997 by the launch of unique products. These products are adapted to the morphology of the animal since the objective was to take care of one's pet with adequately nutritious food. Moreover, a specific segmentation was implemented by Royal Canin, to design customized products (one to one marketing), thus leading to a significant development in turnover. The Research and Development department of the company played a major role in chalking up significant revenues.

Regarding prices, Royal Canin is placed in the high range market as its products convey a brand image for its premium positioning. Pet owners feel price is is of secondary value when it comes to the health and efficient nutrition of their pets. After its acquisition by Mars (U.S. group) in 2002, Royal Canin has witnessed a steady increase in its turnover; between the years 1995 and 2002, sales have more than doubled.

The pet food market has been currently experiencing a positive growth rate; Royal Canin recorded a turnover worth 2.44 billion euros in France in 2006.
Five factors affect the ability of the organizations to generate profits, characterized by the model of the 5 (+1) Forces of Porter, developed by the author of the same name in 1979, which aims to analyze the five forces that influence a market.

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