MGMT 8320 OLLU Naturalia in the UK Market Exchange MKT Analysis and Financial Plan

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Market Opportunity Analysis
Priscilla Gonzalez
MGMT-8320-FTA-2023P
Dr. Rodriguez
02/24/2023
Market Opportunity Analysis
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1. Market Prospects
a) Market Opportunity Analysis for Naturalia)n a Foreign Market
As Naturalia0lans to expand into a new foreign market, it is crucial to conduct a
comprehensive market opportunity analysis to evaluate the marketing factors that will impact the
company’s success. This analysis will help the company to determine the potential of the new
market, identify the target market and demographics, competitive landscape, retail distribution
channels, major advertising media, and current product usage habits. This paper will conduct a
market opportunity analysis for Naturalia)n the foreign market and develop a marketing plan to
support its expansion.
b) Current Product Usage Habits
Before entering a new market, it is crucial to understand the current product usage habits
of the consumers in that market. The new foreign market for pet foods has a growing trend toward
natural and organic products and a high demand for organic foods. Pet owners are becoming more
health-conscious and seeking products free from harmful chemicals and preservatives (Conway &
Saker, 2018). Therefore, Naturalia0roducts will likely be well-received by pet food buyers in
the new market.
c) Competitive Products on the Market in the Country
When entering a new market, it is crucial to understand the competitive landscape and
identify existing products. Several natural and organic pet food brands are already established in
the new foreign market and have a strong presence. These brands offer a range of products,
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including food and supplements for all pets. However, Naturalia#an differentiate itself from its
competitors by offering a more comprehensive range of high-quality and affordable pet foods.
d) Retail Distribution Channels
In the new foreign market, there are several retail distribution channels that Naturalia£an use to sell its pet foods and other related products. These include supermarkets, health food
stores, and online retailers. Supermarkets are the most popular retail distribution channel, with a
wide range of natural and organic pet food products. Health food and pet stores are also popular,
with pet owners looking for natural and organic products (Conway & Saker, 2018). Online retailers
are also gaining popularity, with pet owners preferring the convenience of shopping online.
Therefore, Naturalia#an combine these retail distribution channels to reach its target pet owners’
market.
e) Major Advertising Media Used in the Country
When entering a new market, it is essential to understand the significant advertising media
used in that country. The primary advertising media in the new foreign market include television,
radio, newspapers, and social media. Television is the most popular advertising medium, with a
broad reach and high viewership. Radio and newspapers are also popular, with a high readership
and listenership. However, social media is gaining popularity, with pet owners spending more time
on social media platforms. Therefore, Naturalia#an use a combination of these advertising
media to reach its target market.
f) Total Size of the Market and Market Potential for Your Product
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The market’s total size and potential for Naturalia0roducts in the new foreign market
are significant. According to a report by Grand View Research, the global organic pet food market
size was valued at USD 7.4 billion in 2020 and is expected to grow at a compound annual growth
rate (CAGR) of 8.5% from 2021 to 2028 (Phillips-Donaldson, 2022). In the United States, the
organic pet food market is expected to reach USD 2.6 billion by 2025, growing at a CAGR of 9.2%
from 2020 to 2025 (Miller, 2017). According to a survey by Packaged Facts, 44% of dog owners
and 41% of cat owners in the United States said they had purchased natural or organic pet food in
the past 12 months. The same survey found that natural and organic pet food sales in the United
States reached USD 9.7 billion in 2020, accounting for 29% of the total pet food market (PhillipsDonaldson, 2022).
g) Target Market and Demographics for Your Product
The target market for this product is health-conscious pet owners who want to provide their
pets with the best quality food. Such pet owners know the potential health benefits of organic and
natural ingredients for their pets and are willing to pay a premium (Ye et al., 2022). The target
market also includes pet owners who prefer a more natural lifestyle for their pets and want to avoid
artificial additives, preservatives, and other harmful chemicals in pet food. It also entails pet
owners with pets with health issues such as allergies, digestive problems, or skin conditions that
require special diets free from certain ingredients (Ye et al., 2022). It can also include pet owners
who are environmentally conscious, want to support sustainable and ethical farming practices, and
prefer pet food made from locally sourced, organic, and non-GMO ingredients.
2. Competitive Landscape Analysis for Naturalia)n a Foreign Market
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As Naturalia0lans to expand into a new foreign market, it is essential to understand and
learn from the competition in the market. The company will meet competition from already
established firms. The industry is highly competitive, with companies vying for market share by
offering high-quality, natural and organic products, and marketing their products as healthy and
beneficial for pets.
a. Existing Players in the Market
There are numerous existing players in this market. They include; Nestl urina PetCare
Company, Blue Buffalo Company, Ltd, The J.M. Smucker Company, Hill’s Pet Nutrition, Inc,
Merrick Pet Care, Inc, Champion Petfoods, The Honest Kitchen, and Wellness Natural Pet Food.
These companies will offer huge competition to Naturalia(Cosgrove, 2023).
b. Success Strategies of Competitors
Pet food companies such as Nestl urina PetCare use a variety of competitive strategies
to gain market share and differentiate themselves from their competitors. Some companies focus
on product differentiation, offering unique or specialized products that are not available from other
brands (Ye et al., 2022). Others use pricing strategies, such as offering lower prices or promotions
to attract price-sensitive consumers. Many companies also use marketing and advertising to
differentiate their brand and build brand awareness among pet owners. Additionally, some
companies focus on building relationships with retailers and distributors to improve their
distribution channels and gain wider access to the market (Conway & Saker, 2018). Ultimately,
the most successful companies are those that can combine several competitive strategies to offer
high-quality products at competitive prices while building strong brand recognition and
relationships with their customers.
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c. Track Record of Competitors
Many competitors in the pet food industry have a strong track record of success, with some
brands being established for decades. Companies such as Nestl urina, Hill’s Pet Nutrition, and
The J.M. Smucker Company have a long history of producing high-quality pet food products.
Therefore, they have developed loyal customer bases over the years (Phillips-Donaldson, 2022).
Other brands, such as Blue Buffalo and Wellness Natural Pet Food, have seen significant growth
and success in recent years thanks to their focus on natural and organic ingredients and innovative
marketing strategies (Phillips-Donaldson, 2022). Overall, the most successful competitors in the
pet food industry are those with a strong track record of producing high-quality products and
building strong relationships with customers and retailers.
d. Identifying Risk Factors from Failures
One of the biggest risk factors in the pet food industry is the contamination of ingredients
with harmful substances such as bacteria, chemicals, or toxins. This can lead to recalls and negative
publicity for pet food companies. Inaccurate or misleading labeling is another risk factor that can
lead to confusion among pet owners and legal action against pet food companies (Tyler, 2020).
Also, poor product quality, such as inconsistency in the size or texture of the food, is another issue.
It can lead to dissatisfaction among pet owners and harm a company’s reputation. Disruptions in
the supply chain, such as shortages of key ingredients or delays in shipping, can lead to production
delays and product shortages (Pirsich et al., 2017). Finally, the pet food industry is highly
competitive, and new entrants can disrupt the market by introducing new products or innovative
marketing strategies.
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3. Marketing Plan
A marketing plan for Naturalia7ould involve identifying the target market, analyzing
the competitive landscape, developing a unique brand positioning, creating new or improving
existing products, establishing a pricing strategy, developing an integrated marketing
communications plan, implementing a distribution strategy, and establishing metrics to evaluate
the success of the plan (Tyler, 2020). This would enable the company to differentiate its products
from competitors, build brand awareness, drive sales, and remain competitive (Pirsich et al., 2017).
A comprehensive marketing plan would help the company achieve its business objectives and
maintain a strong presence in the pet food industry.
a) Overall Marketing Strategy
The overall marketing strategy for Naturalia)n the new foreign market is to establish
itself as a leader in the natural and organic products industry. This will be achieved through highquality products, excellent customer service, and effective marketing campaigns targeting the right
audience. The company should also promote how its pet food products are helpful and nutritious
to pets.
b) Marketing Mix
The marketing mix for Naturalia)n the new foreign market will consist of different
elements. The first one is the product. Naturalia7ill offer a wide range of natural and organic
products that cater to the varying needs of its customers. The products will be high quality, free
from harmful chemicals and preservatives, and competitively priced (Sari & Jaya, 2022). It will
also consist of pricing. Naturalia7ill adopt a competitive pricing strategy that aligns with the
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prevailing market rates while offering discounts to customers who purchase in bulk. Another
element will be place. In this case, Naturalia7ill establish strategic partnerships with
distributors and retailers in the new market to ensure its products are easily accessible to customers.
The marketing will also include promotion (Sari & Jaya, 2022). The company will undertake
various promotion activities, including advertising, public relations, and social media campaigns,
to create awareness and generate interest in its products.
Advertising will also be vital in marketing this product. Naturalia7ill advertise its
products through various media channels, including print, television, and online advertising,
targeting the right audience. With advertising, effective distribution channels will be needed. The
company will establish partnerships with distributors and retailers to ensure its products are
available in stores across the new market (Sari & Jaya, 2022). Also, media usage will be
instrumental. Naturalia7ill utilize various media channels, including print, television, and
online, to reach its target audience. Having effective and functional public relations will be
instrumental. To achieve this, the organization will engage in public relations activities, including
media and community outreach, to build and maintain a positive image (Pirsich et al., 2017).
Finally, a web/social media presence will be vital. To achieve this, Naturalia7ill establish a
strong web and social media presence, including a website and social media accounts, to engage
with its customers and create a loyal following.
c) Sales Management
The sales management approach for Naturalia)n the new foreign market will consist of
numerous elements. The first one is sales planning. Naturalia7ill develop a comprehensive
sales plan considering the company’s objectives, target audience, and competitive landscape. It
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will also include a perfect sales approach (Pirsich et al., 2017). Naturalia7ill adopt a customercentric sales approach emphasizing building long-term customer relationships, understanding their
needs, and providing personalized solutions. Finally, it will have a robust salesforce. Naturalia·ill establish a sales team that is knowledgeable, skilled, and customer-focused, capable of
building and maintaining solid relationships with customers.
d) Marketing Plan Budget
The marketing plan budget for Naturalia)n the new foreign market will be based on
carefully assessing the company’s marketing goals and objectives. The budget will cover all
marketing and advertising expenses, including media buying, production, and promotional
expenses. The budget will also include the cost of establishing strategic partnerships with
distributors and retailers and establishing and maintaining a solid web and social media presence.
Conclusion
A comprehensive marketing plan is essential for Naturalia4o successfully expand into
the new foreign market. The marketing plan should consider all aspects of the marketing mix,
including product, pricing, place, promotion, advertising, distribution channels, media usage,
public relations, and web/social media presence. Additionally, the sales management approach and
budget should be carefully planned to ensure that Naturalia%stablishes itself as a leader in the
natural and organic pet products industry in the new foreign market.
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References
Conway, D. M., & Saker, K. E. (2018). Consumer Attitude Toward the Environmental
Sustainability of Grain-free pet foods. Frontiers in Veterinary Science, 5, 170.
Cosgrove, N. (2022, July 22). 20 Largest Pet Food Manufacturers in the US (Updated 2023).
Hepper. Retrieved February 23, 2023, from https://www.hepper.com/largest-pet-foodmanufacturers-in-us/
Miller, N. (2017). 1 in 3 U.S. Pet Owners Millennials: What it Means for the Pet Food Market.
How Millennials Are Rapidly Changing the Organic Pet Food Industry. Retrieved
February 24, 2023, from https://www.packagedfacts.com/Content/Blog/2017/02/07/1-in3-US-Pet-Owners-Millennials-What-it-Means-for-the-Pet-Food-Market
Phillips-Donaldson, D. (2022, February 23). Pet Food Purchasing Habits and Trends of U.S. Pet
Owners. PetfoodIndustrycom RSS. Retrieved February 24, 2023, from
https://www.petfoodindustry.com/blogs/7-adventures-in-pet-food/post/11058-pet-foodpurchasing-habits-and-trends-of-us-pet-owners
Pirsich, W., von Hardenberg, L. M., & Theuvsen, L. (2017). The Pet Food Industry: An
Innovative Distribution Channel for Marketing Feed Products from Welfare Friendly
Production to Consumers?. International Journal on Food System Dynamics, 8(3), 250
261.
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Sari, R. A., & Jaya, F. P. (2022). The Effect of Profitability and Liquidity on Firm Value in Sub
Manufacturing Companies Animal Feed Sector 2016-2020. Hut Publication Business and
Management, 2(1), 43-56.
Tyler, J. (2020, September 21). Packaged Facts Predicts Top 5 Trends for Pet Food. Petfood
Processing. Retrieved February 24, 2023, from
https://www.petfoodprocessing.net/articles/14120-packaged-facts-predicts-top-5-trendsfor-pet-food
Ye, H., Bhatt, S., Deutsch, J., & Suri, R. (2022). Is There a Market for Upcycled Pet Food?.
Journal of Cleaner Production, 343, 130960.

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