Royal Canin's Rivalry: Taste Of The Wild

Rivalry

Royal Canin has several competitors who offer premium quality and nutritious pet food. One of them is Taste of the Wild, which markets as having grain-free pet formulas based on pet’s ancestral diets.

Similarities

Like Royal Canin, all their formulas rely on ingredients like quality meats and probiotics that maximize the nutritional health benefits.

Differences

Taste of the Wild also uses a water purification process known as reverse osmosis, which is the same process that many bottled water manufacturers use. In reverse osmosis, water is forced through extremely fine filters, removing microorganisms, organic chemicals and inorganic chemicals. The result is purified water, which is then used in the form of steam in the cooking

Celebrity dog food brands have also brought added competition to the dog food market. In early 2008, dog trainer Cesar Millan launched Dog Whisperer by Cesar Millan dog treats. Celebrity and talk-show host Ellen DeGeneres became an owner of Halo Pet Food Company, a 20-year-old company, endorsing their all-natural pet food and pet care products. Meanwhile, television and food personality Rachael Ray launched her own line of dog food and treats called Nutrish developed by Ray and pet nutrition experts. They contain real meat and no fillers, artificial flavours or preservatives.

Suppliers power

Several multinational companies dominate the pet care market. The largest suppliers are Mars Inc. (which owns Royal Canin) and Nestlé, with Colgate-Palmolive, Procter & Gamble and Del Monte rounding out the list of top five global players. In North America, Nestlé, Del Monte, Mars and Procter & Gamble are the leading branded players. According to Planet Retail sources, the U.S. market is highly fragmented, encompassing over 2,000 manufacturers and consisting primarily of small companies with limited product lines. The majority of these manufacturers do not have a captive sales and logistics network and must rely on independent distributors to supply their

In addition, there are now more private and branded pet food choices available. Studies show that pet owners tend to be more loyal to particular brands in the pet food industry than in any other food industry, therefore, branding is of significant importance in this market. Pet food recalls continue to weigh on private label pet food, with consumers seeking the reassurance of brand names in this product area.

However, private label benefited in the dog food sector as some budget-strapped consumers sought cheaper alternatives to their usual brands. While many pet owners traded up to premium brands, some pet owners were forced to trade down or even give up their pets altogether as a result of the global recession. Recent additions to premium private label dog food, such as Wal-Mart's Natural Life and Target's LifeLong, helped spur sales of private label products, as pet owners sought to combine the benefits of premium dog food with costs savings. Nonetheless, in contrast to previous recessions, the current downturn appears to have done little to boost the popularity of private label pet food and pet care products, and branded products are still preferred