Pet Food Companies Prosper from Pet Humanization

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Executive Summary

The pet food industry acts as one of the most lucrative businesses in the US due to the rising demand for pets as alternative companions for humans. Besides, the humanization of pets tends to take the top stage as more people develop an interest in ensuring good health for their pets. More and more people consider pets as suitable companions, thus strive to ensure that they (pets) eat well and stay healthy. Conversely, this report examines Blue Buffalo as an exemplary pet food company that seeks to generate high-quality pet foods by utilizing fine quality natural ingredients and raw materials. The company (Blue Buffalo) specializes in the manufacture of food for dogs and cats to ensure that its clients realize their desired products. Luckily, there is a large and expanding market share for pet food in the US. Thus, Blue Buffalo thrives and looks forward to a bright future following the growing pet food market share in the US.

  

Case Study: Pet Food Companies Prosper From Pet Humanization

Introduction

The pet food industry serves as one of the most lucrative businesses in the current world due to the rising demand for pets as alternative companions for humans.

Accordingly, pet food companies realize huge revenues. For instance, the world’s leading pet food firm (Mars Petcare Inc.) earns revenue of over $18 trillion per annum.

The company, Blue Buffalo, specializes in the manufacture of food for dogs and cats to ensure that its clients acquire their desired products.

A rising global concern on the health and hygiene of pets facilitates the manufacture and sale of pet food of high nutritional value.

Since many people find pets as suitable companions, they strive to ensure that they (pets) feed well and stay healthy.

Thesis: This case study examines Blue Buffalo pet food company to determine how humanization of pets affects its operations and eventual revenues.

Background

Blue Buffalo is a pet food company with its headquarters in Connecticut, USA.

Since its establishment in August 2003, Blue Buffalo has enjoyed significant growth and development by focusing on the generation of high-quality pet products through the use of natural ingredients (Bluebuffalo.com, 2020).

Besides, Blue Buffalo concentrates mainly on the American market.

Blue Buffalo faces stiff competition from large international firms, including Mars Petcare Inc. and Nestle Purina Petcare and other small companies.

Blue Buffalo endeavors to gain more competitive advantage by encouraging customer loyalty. Blue Buffalo embraces two strategies to remain competitive in the market place.

The firm generates exceptionally quality pet foods made from high-quality ingredients, fruits, and whole meats to increase customer loyalty.

Also, Blue Buffalo relies on five production lines to generate its products

Blue Natural Veterinary Diet where dedicated veterinarians provide therapeutic diets for pets

Blue Freedom that deals with grain-free products

Blue Basics that focuses on the manufacture of foods for pets that are sensitive to some ingredients

Blue Wilderness that deals with grain-free, high-protein, and high-meat products

Blue Life Protection Formula that serves as the main product line, which handles a wide array of breed-specific and functional products and flavors (Duarte, 2019).

(Duarte, 2019).

Blue Buffalo’s Operating Strategies

Blue Buffalo Manufactures and Sells High-Quality Products at High Prices

The organization offers the best quality pet food to gain client loyalty and attract the highest number of customers whose primary aim is to ensure that their pets remain healthy.

The firm sells some of its products at $4 per pound (Martin, 2011).

The firm attains its goal and objectives by working under the slogan “Love them like family. Feed them like family.” Specifically, Blue Buffalo is inspired to provide pet foods of high nutritional value and quality to ensure that its clients attain ideal products for their pets.

Moreover, Blue Buffalo offers several varieties and brands of pet food to suit the demands and needs of dogs and cats of varied dietary requirements, ages, and breeds. For instance, Crunch the wild, Blue Sizzlers, and Blue Divine Delights are among the company’s latest brands (Petsmart.com, 2020).

Also, Blue Buffalo relies on some of the finest natural ingredients and raw materials to manufacture quality pet food. Besides, the organization depends on minerals and vitamins to enhance the quality and value of their products.

Luckily, many clients are less sensitive to price of the pet foods because they are more concerned with quality of the products (pet foods) following the rising humanization of pets.

Blue Buffalo Focuses on Functional Pet Foods

Functional foods contain lots of valuable components that encourage the wellbeing of pets.

Accordingly, Blue Buffalo incorporates probiotic microorganisms in their products to facilitate useful physiological processes that entail digestion and absorption of nutrients (Boileau, Stojanovic & Sunvold, 2006).

Besides, functional pet foods help in reducing the risk of diseases and improving brain functions, thus ensuring that pets remain reliable companions to humans (Di Cerbo et al., 2017).

Blue Buffalo Specializes in the Manufacture of Pet Foods for Dogs and Cats

The company specializes in the generation of food for dogs and cats only to ensure that it allocates adequate time, efforts, and resources to their processes to realize their target of offering quality products.

Consequently, Blue Buffalo enjoys more performance and efficiency following the specialization practice (Brutschy et al., 2012).

Impact on Company Performance

Similarly, Blue Buffalo is enjoying huge revenues that have been increasing at double digits due to its strategic positioning in the market place (Duarte, 2019).

The table below presents projected US pet food market size and Blue Buffalo’s revenues.

2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E

US Pet Food Market ($M) 31084 32448 33902 35379 36897 38476 40087 41819

Blue Buffalo Revenues ($M) 1275 1431 1594 1371 1856 1985 2084 2151

YOY Growth 10.9% 12.3% 11.4% 8.6% 7.2% 7.0% 5.0% 3.2%

(Duarte, 2019).

As a lucrative industry, the pet food business attracts massive revenues as illustrated in the table below.

The World’s Top 10 Pet Food Companies

Company Country Annual Revenue

   Mars Petcare Inc.United States   $18,085,000,000

  Nestlé Purina PetCareUnited States   $13,200,000,000

  J.M. SmuckerUnited States   $2,900,000,000

  Hill’s Pet NutritionUnited States    $2,318,000,000

  Diamond Pet FoodsUnited States   $1,500,000,000

  General Mills (Blue Buffalo)United States   $1,300,000,000

  Spectrum Brands / United Pet GroupUnited States   $820,500,000

  Unicharm Corp.Japan   $752,650,000

  DeuererGermany   $721,100,000

  Heristo AG  Germany   $700,000,000

   (Petfoodindustry.com, n.d.)

Conclusion

The pet food industry serves as one of the most lucrative industries in the world.

The leading pet food firm in the world enjoys over $18 trillion revenue yearly.

The growing humanization of pets encourages generation of high-quality products that promote wellbeing of pets.

Accordingly, pet food firms like Blue Buffalo thrive by specializing in the manufacture of quality pet foods for specific types of pets.

Blue Buffalo uses quality raw materials and natural ingredients to manufacture high-quality pet foods that promote good health and wellbeing of pets.

Besides, Blue Buffalo generates functional foods that are highly valued because they attract lots of benefits that include the

Prevention of diseases

Better absorption of nutrients by pets

Luckily, many customers are ready and willing to invest heavily in purchasing pet foods of the best quality because they value their pets that serve as appropriate companions in the current era.

Fortunately, Blue Buffalo and other pet food companies have a promising future because the large US pet food market continues to grow.

Humanization of pets has significant influence on operations of pet food companies and promotes attainment of huge revenues.

References

Bluebuffalo.com. (2020). The Blue Story – It’s all about family. Retrieved 12 February 2020, from https://bluebuffalo.com/why-choose-blue/blue-story/Boileau, T., Stojanovic, M., & Sunvold, G. (2006). U.S. Patent Application No. 11/366,234. 

Brutschy, A., Tran, N. L., Baiboun, N., Frison, M., Pini, G., Roli, A., … & Birattari, M. (2012). Costs and benefits of behavioral specialization. Robotics and autonomous systems, 60(11), 1408-1420.

Di Cerbo, A., Morales-Medina, J. C., Palmieri, B., Pezzuto, F., Cocco, R., Flores, G., & Iannitti, T. (2017). Functional foods in pet nutrition: Focus on dogs and cats. Research in veterinary science, 112, 161-166.

Duarte, R. (2019). Blue buffalo-organic pet food (Doctoral dissertation).

Martin, A. (2011). ‘For the Dogs’ Has a Whole New Meaning. Retrieved 12 February 2020, from https://www.nytimes.com/2011/06/05/business/05pets.html

Petfoodindustry.com. (n.d.) Top Pet Food Companies Current Data. Retrieved from

https://www.petfoodindustry.com/directories/211-top-pet-food-companies-current-data)

Petsmart.com. (2020). Blue Buffalo. Retrieved 12 February 2020, from https://www.petsmart.com/featured-brands/blue-buffalo/dog-and-cat/#