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  Pets: Part of the Brand Family   Pets: Part of the Brand Family  Barry Silverstein  
         
 
Pets: Part of the Brand Family How big is the market for cat and dog product brands?

Over 70 million US households own more than 88 million cats and nearly 75 million dogs, according to a 2007-2008 survey of US pet owners. In 2007, Americans spent over US$ 41 billion on their pets, about $17 billion of which was on pet food, according to the American Pet Products Manufacturers Association (APPMA).

In Japan, consumers spent about US$ 10 billion on pets in 2006, says Japanese research firm Yano. A May 24, 2008 story in the Independent (UK) puts pet food spending on Britain’s 14 million dogs and cats at 1.7 billion pounds. Spending is increasing at about 3 percent annually, despite the fact that the number of pets is actually declining. According to the Independent, “Most of the increase derives from the ‘premium’ and ‘ultra-premium’ end, which is growing by 50 percent a year.”

The pet food category alone is proof that a veritable brand war is underway. Research firm Euromonitor says sales of dog and cat food worldwide reached over US$ 45 billion as of fall 2007, with a compound annual growth rate of close to 3 percent projected through 2012.

But the news isn’t all good. Last year, there was a tainted pet food scare that not only resulted in the deaths of pets, it revealed the fact that many pet food brands are actually manufactured by the same source. This led some consumers to wonder what made more expensive or better known brands of pet food any better than generic brands. (For more on this topic, see “A Brand’s Worst Nightmare.”)

 
Despite this temporary setback, the category continues to grow. New pet food brands are being introduced into the market by both small and large manufacturers. And make no mistake, there are some very big company players in the pet food brand game.

Mars Petcare is the top dog in cat and dog food brands worldwide, according to Pet Food Industry. (Yes, this is the same Mars that makes M&Ms, Snickers, and Skittles candies.) Mars owns such leading brands as Pedigree (dogs), Cesar (cats), and Whiskas (cats). Mars also owns Doane Pet Care, the largest manufacturer of private label cat and dog food in the United States and Europe.

Mars’ 2007 introduction of The Goodlife Recipe Brand was its largest pet food brand launch at the time, trading on consumer interest in “all natural” ingredients as a means to market cat and dog food. In 2008, Mars created an even bolder breakthrough brand unique in the dog food category—WholeMeals.

Traditionally, dog food brands have been packaged in bags, boxes, or cans. WholeMeals breaks convention because it is a meal packaged in the form of a bone. Working with dog behaviorists and veterinarians, Mars created what it believes is a revolutionary method of feeding dogs their food. The company says the WholeMeals brand provides “premium nutrition” as well as “advanced oral care” and results in “natural feeding enjoyment.”

WholeMeals is one example of how companies differentiate their brands in the cat and dog food marketplace. Recent trends show this brand category moving ever more closely toward food that looks almost fit for human consumption. Mars’ Cesar brand dog food offers the “Original Paté” menu or the “Gourmet Fillets in Sauce” menu for small dogs. Both lines are packaged in special self-contained feeding trays.

Second only to Mars in worldwide cat and dog food sales is Nestlé Purina PetCare. Purina’s Fancy Feast brand for cats goes even further than Mars’ Cesar brand with the recently introduced “Elegant Medleys: Restaurant Inspired Food for Cats.” Supported by a television ad that shows a meal prepared by a chef and then being fed to a cat by its owner, Elegant Medleys are “inspired by the traditional tastes of Tuscany,” featuring “old world flavors balanced with modern sophistication,” according to Purina.

Also on the Top Ten pet food manufacturers list is Affinity Petcare (number 6), headquartered in Barcelona, Spain. Affinity sells such brands as Affinity, Ultima, Brekkies, and Advance throughout Europe. Tokyo-based Unicharm Pet Care (number 8) is Japan’s leading pet food producer. Its top brands include Aiken Genki Gin no Sara, Neko-Genki Silver Spoon, and Gaines Pakken.

Pet food offers opportunities for branding tie-ins as well. For example, Cesar Millan, star of the popular television show, “The Dog Whisperer” (National Geographic Channel), will be introducing DOG WHISPERER brand pet food this month, July 2008.

Perhaps the most fascinating aspect of pet food branding is that the real “consumer” of the product couldn’t care less about the brand. If they’re hungry, cats and dogs will likely eat whatever they are given (finicky cats notwithstanding). Granted, they may be able to distinguish one food from another, but they certainly can’t distinguish the marketing aspects of brands… as far as we know.

Of course, the reality is that the branding of cat and dog food, which sometimes reaches ridiculous heights, is intended to appeal to the intermediaries—the humans who own and feed these pampered pets.

But hold on to your leash—branded products for pets go much further than food. In Japan, the latest sensation is canine fashion. “Pet Fashion Week,” held in Tokyo in January 2008, featured dog models strutting their stuff on runways. According to organizer Pet Fashion Week NY, “eighteen selected pet apparel and accessory designers presented demi-couture collections to an audience of over 3,000 pet fashion enthusiasts.”

Why are the Japanese dressing up their dogs? Some experts say that the country’s aging population and declining birth rate are combining to make dogs all the more precious in that society. Euromonitor says the “humanization of pets” is responsible for growth in Japan’s dog-related brands.

 
Not to be outdone, such people brands as Harley-Davidson, Old Navy, and Ralph Lauren unashamedly market dogwear and accessories to the pet-owning public. Harley-Davidson features doggie bandanas, t-shirts, sweatshirts and, of course, leather jackets. Ralph Lauren started its line several years ago with a polo shirt and sweater for dogs and now boasts over a dozen different dog accessories.

To people who don’t own pets, lavishing animals with gourmet-quality pet food or expensive clothing may seem a bit off. But pet owners are a special breed of folk who believe that their dogs and cats “are people too” and deserve the best.

Products and services once reserved for humans are migrating to the world of pets. Dog boutiques and bakeries are springing up around the globe. Pet health care insurance is a growing industry. Boarding kennels have become more like hotels, and many human hotels now cater to pets. Doggie yoga classes are the current rage. Given these permutations, why shouldn’t brand marketers follow suit?

As with any industry, a slowing economy could impact pet brands. But Bob Vetere, president of the APPMA, is upbeat in his May 14, 2008 blog: “Even with these changes, thankfully because we consider pets part of the family, we will tend to cut back or stop spending in most areas before we cut back on our pets. While many are feeling pressure, the industry as a whole continues to grow.”

Still, there are those pet brands that may leave you scratching your head, like Hermes dog collars that sell for over US$ 1,000, or cat and dog food made by KosherPets, which claims that its products undergo “one of the strictest human food and ingredients inspections available – KOSHER!”

But to really understand how far pet brand marketers will go, consider “Neuticles.” These testicular implants, says the inventor, “allow your pet to retain his natural look, self esteem and aids in the trauma associated with neutering. …Loving pet owners are less 'neuter-hesitant' and their pet is unaware that he has, in fact, been altered. With Neuticles, it’s like nothing ever changed.” Now there’s a brand promise that would be hard to beat.    

[7-Jul-2008]

 
  
  

Barry Silverstein has been a frequent brandchannel contributor since 2007. He has thirty years of advertising and marketing experience and is currently a freelance writer and marketing consultant. He founded and ran his own direct marketing agency and held executive positions with Epsilon, a leading database marketing firm and Arnold, a major ad agency. Silverstein is the author of three marketing books, including the McGraw-Hill book, The Breakaway Brand, which he co-authored with Arnold CEO Fran Kelly.

     
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Pets: Part of the Brand Family
 
 After the recent food contamination scare involving Chinese imported foods, I am a firm believer in providing superior products for our animals. We have recently switched over to an all natural shampoo from FuzzYard an Australian company and our dogs have never been healthier or happier. We don't mind spending a little more as we know in the long run our dogs will live healthier lives.Premium products like FuzzYard, The Pet Loo and Timberwolf organics are the future of the industry... $1,000 Hermes collars I'm not sure about! 
Heung-Ju Lee, Financial Advisor, Howard Delaney - July 7, 2008
 
 Cesar is gourmet food for smaller dogs, not cats. 
- July 7, 2008
 
 I recently surprised myself by seeking out a "dog resort" instead of the typical boarding kennel to care for our dog while we're on vacation. The number of boutique dog hotels surprised me - especially franchises. It seems to be a growing niche. With the activity, interaction, and extra attention these places provide, I know our dog will come home happier and healthier than if she stayed at a typical kennel. It's worth the extra cost for the peace of mind that our dog will be happy while we're away. She may not even notice! 
- July 9, 2008
 
 To learn more about dog products (i.e. The Pet Loo) and services in your local area, try visiting Dog Service Network (www.DogserviceNetwork.com). Dog Service Network is a one stop resource for all dog enthusiasts. We provide an online directory of dog services such as: boarders, daycares, groomers, rescues, sitters, trainers, walkers, waste cleanup and more!

We also provide you with articles from expert professionals in the industry covering topics on how to choose a good dog trainer, to how to pick the right breed, to safety and more.

Please visit our site at www.DogServiceNetwork.com
 
Dog Service Network, Dog Service Network - August 8, 2008
 
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