¶ … Dog Food Company
Overview of the Company
Meow, Bark and Everything Else is an all-natural pet food company. The company has several lines of pet foods, created from local ingredients, starting with cats and dogs, and hopefully expanding to other types of pets as well. The products will be sold locally through a couple of different distribution channels. This presentation will focus on what those channels look like.
Distribution Channels
We intend to start with two different distribution channels. The first is to have a company store at the site where we produce the pet foods. This channel has several advantages that will help us to make this particular channel successful. A lot of those advantages stem from having complete control over this particular distribution channel The second distribution channel model will be to go through local pet and grocery stores in the area. There are a couple of other models that we'll be exploring as well, including selling through local farmers' markets and selling online.
Slide: Company Store Advantage #1
The company store will be a shopfront situated where the pet foods are produced. This channel has several benefits. It uses space that we are already paying for, so is low cost. That means we can offer the discounts and free samples that we intend to use as part of our marketing. By controlling costs, we are also more likely to turn a profit. There are no shipping costs, as the customers come to us.
Slide Company Store Advantage #2
The second major advantage of selling through a company store is that we get to tell our story our way. This is important because we have 100% control over all of the branding and where the products are placed. There are other advantages, too,...
Having an in-house store gives us much better ability to properly a/b test different marketing tactics. An example of telling our story our way might be to bring in some pets -- or allow people to bring their
dogs -- and create a holistic space for them. We could even take more of a dog spa sort of approach, with food being the main product we want them to take away, but where we are getting a lot of
revenue from each client. There's room to be more creative in our own space than selling anywhere else.
Slide: Company Store Disadvantage #1
One of the major disadvantages is that we have to have the company store in an area that is zoned both for production and for retail. This might be difficult to find, but even if there is lots of this type of space available it is not always in the most advantageous location. It may make sense to think strategically about the location -- in an industrial park next to a microbrewery will give better walk-up traffic than some other locations. In a farm setting might be an even more powerful message, though a lower traffic location. We will have to think about the best options -- location is everything.
Slide: Company Store Disadvantage #2
Even with the best location, we will not be able to get the turnover we need to be a viable business. This distribution channel, even when done perfectly, is not enough. So we can only put so much
money and
energy into this storefront, and inevitably it may become a distraction as much as anything else, if people aren't visiting.
Slide: Retail Distribution Advantage #1
To get the sales we need to be viable, retail distribution is critical. This means selling in area pet stores, grocery stores, and anywhere…
