Pet care goes premium
Will food, drug and mass retailers ever be able to duplicate the shopping experience of a PetSmart or Petco? Maybe not, but they are trying to reach more involved pet owners with store brand offerings boasting natural, premium ingredients, as well as exclusive products.
\"Pets are like children, and that is why this category has grown continually, even through the recession,\" says Joe Wayman, president of True-Dose, St. Charles, Mo. \"Private label as a part of the pet category is a unique opportunity for store brands to further their influence on loyal customers.\"
Put quality in the can
According to Chicago-based Euromonitor, the U.S. pet care market is expected to grow modestly at retail this year, despite stagnant dog and cat populations, because of high-value foods and increased expenditures. Natural and organic foods, in particular, are driving sales in the premium food segment, including within canned offerings.
\"Shoppers want more bells and whistles with their canned food like meat, sweet potatoes and spinach, not chicken and rice,\" says Holly Sher, president, Evangers Dog & Cat Food Co., Wheeling, Ill., which is certified organic, kosher and European Union. \"They are more in tune with whats healthy for their pets, but still want a lower price.\"
Do
give new store brand pet foods and treats a premium and/or natural spin.
Dont
underprice store brand pet accessories; they present an opportunity for higher margins.
Bill McKee, vice president of private label sales, Simmons Pet Food, Emporia, Kan., agrees that premium health and wellness products are an emerging trend for canned pet food, and an opportunity for the next decade.
\"Value products have bubbled up a bit of late in canned products, but convenience offerings such as single-serve cans, pouches and variety packs have staying power,\" he says.
Please pet parents
Its only natural that retailers would be exploring premium private label products on the dry food and treat side, too, after carrying mainly value and national brand equivalent (NBE) treats and food for years. The 56 million dog owners out there, after all, are treating their pets like their children, and appreciate the humanizing of flavors, shapes and ingredients, notes Jerry Dear, executive vice president, business development, Three Dog Bakery, Kansas City, Mo.
\"Everything you see in stores is about pet parents, not dog owners,\" he says.
Dear points out that Walmart is launching quality products to keep up with Petcos and PetSmarts selection, including grain-free, premium Pure Balance and Ol Roy dog food lines.
\"Theres an unwritten rule that brands in Petco arent in Winn-Dixie or Kroger,\" he says. \"So if retailers want to reach pet specialty shoppers they need premium offerings.\"
Dear adds that retailers will find plenty of room to expand into new trends and packaging.
And different retail formats such as dollar stores, drugstore chains, supermarkets and warehouse clubs can tailor their treat offerings to best meet their customers expectations.
\"Dollar stores must match the value proposition their customers have come to expect,\" notes Chris Ruben, chief marketing officer, EuroCan Pet Products, New Hamburg, Ontario. \"Drugstore chains are increasingly looking to offer products that include health and wellness benefits, such as all-natural items with single or limited ingredient panels. Several of our clients are also moving toward single-serve packages, which promote freshness and safety.\"
According to Ruben, Loblaw Companies, Shoppers Drug Mart and Target are at the forefront of offering all-natural limited-ingredient pet treats.
\"Their packaging is well-designed with callouts of the wellness benefits,\" he says. \"From a branding perspective, both Petco and PetSmart are dynamic and well-positioned.\"
Accessorize at the right price
Of course, store brand pet food and treats also must be priced right.
\"Retailers need to be more aware of what national brand equivalents are selling for in the marketplace to ensure their store brand is price competitive,\" says Randy Shapiro, president, Happy Tails Pet Products, El Paso, Texas.
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consider adding health-positioned aids such as supplements to the store brand pet care assortment.
Dont
introduce a new pet care brand one product at a time.
But they have more flexibility in pricing on the pet accessory and supply side.
\"Since beds and toys dont have as many direct competitors, retailers have more leeway and creativity to come up with unique items and higher margins for accessories,\" Shapiro says.
Although retailers are always working on their pricing, they still need to invest in innovations to drive sales, too, such as value-added fragrances, less dust and more days of odor control for cat litter, for example, says Justin Lariviere, marketing director, Intersand, Quebec.
\"There are a lot of creative marketing tools for cat litter available in the store such as cross promotions with pet food. ... Social media can announce new products and promotions,\" he says.
Consider health aids
Health-positioned aids such as premium supplements have an opening in the pet aisle, too, according to Wayman.
\"In the pet supplement category, consumers do not have high expectations for inexpensive tablets, but a high-quality offering is a double win because they trust the store brand and they are looking for improved quality for the pet health products,\" he says.
Today consumers can find higher end, vet-quality store brand products for Fipronil-based products, joint relief and pet health supplements, which historically have been available only through veterinarians.
\"Store brand pet health products that target these leading vet-recommended products represent the greatest value [quality plus price] to those consumers who are used to paying upwards of $50 a box with from their vet,\" says Jeff Needham, general manager and executive vice president, Consumer Health Products, Perrigo, Allegan, Mich.
Meijer recently launched a line of store brand pet health products, which includes flea and tick prevention/treatment, health and wellbeing products, and healthful treats.
\"Meijer has done an outstanding job with positioning their pet health products at retail, and it appears that they are poised to develop yet another successful store brand category,\" Needham says.
Position them to sell
When launching a new store brand pet care item, its important to launch the products all at once, rather than a few items over a course of time, to get the most impact, suggests Scott Garmon, president, Garmon Corp., Temecula, Calif.
\"You want to also make sure the assortment is relatively significant to the size of the category set,\" he says.
A few well-planned merchandising and promotion efforts, too, can go a long way to encourage trial of store brand pet care items.
Wayman notes that a pharmacy brand his company worked on was successful using his companys in-store promotions that included bag stuffers, window clings and sample programs.
\"The most successful stores also participated in our online training program where store employees could learn about the key differences of the ... store brand,\" he says.
The pet aisle should be considered a destination, and like products such as all-natural items should be grouped together and merchandised creatively, using tactics ranging from shelf talkers and floor signage to weekly specials, Ruben says.
Store brand pet food also benefits from adequate shelf space, promotional activity and advertising, McKee says.
\"The last point is particularly important, whether it is traditional print or social media, as todays consumers want to research pet foods in general and ingredients specifically,\" he notes.
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