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ƥ Mars' Masterfoods (45 per cent market share) has a brand portfolio that
includes Whiskas, Pedigree, Kitekat, Cesar and Sheba
ƥ Nestlé Purina Pet care (32 per cent market share), Nestlé's brands include
Felix, Friskies and Bakers Complete.
Whiskas canned is the number one brand, with sales of £87.5m. It is followed
by Pedigree canned (£82.1m) and Nestlé's Felix canned (£82.0m).


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V Ôo know future prospects for pet accessories

V Ôo enter into new segments of pet care and accessory.
V Ôo bring out new and innovative strategies to widen the segments
V Ôo be successful in extending into the pet care and pet accessory segments
V Promote pet food products which are safe, of sound nutrition, p alatable and
which offer value for money
V Promote responsible pet ownership

V saise standards in the pet care industry

V Stimulate the growth and reputation of the industry by encouraging

understanding and good working relationships amongs t those associated with
pet care
V ]nalysis of the
 ! "
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.
V seview of #$
$ 
#$ 


ƛ short term prospects in
2009-10, and "%&
$'()*.

Companies included:

]corn Pet Centres, ]ncol Pet Products, ] ua Pacific (UK), ]rmitages Pet Products,
Bayer (UK) Beaphar (UK), Big H Pet Superstore, Bob Martin Company, Collarways,
Countrywide Farmers, Danish Design Pet Products, Dobbies, Epro Wholesale,
Ferplast (UK) Ltd, Happy Pet Products, Hi -Craft, Interpet, Johnsonƞs Veterinary
Products, JolleysPetfood Superstores, Just for Pets, Juwel ] uarium (UK), L Batley
Pet Products, Maidenhead ] uatics, Masterfoods (Pedigree), Merial ]nimal, Health
(UK), Mines for Pets, Pampurred Pets, Pedigree Wholesale, Pennine Industries, Pet
Brands, Pet Life Ventures, Petlife International Ltd, Pets at Home, Pets Corner
(UK), Petsworld, Pettex s C Hagen, sosewood, sSPC], Savic, Scruffs, Sharples Ɲnƞ
Grant, Snoozzzeee Dog, Snowflake Pet Products, Solus Garden & Leisure, Ôetra
(UK), Ôolsa (UK), Underworld Products, Vital Group Plc, World of Water.
+
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Here, basically the target audience is the pet owners and even those who are willing
to buy a pet. Ôhe audience has to be attracted so that they at least think of trying
and spending on the new products and accessories launched for the pets.

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It may be a Cliché but the old saying about the UK being a nation of animal lovers
would appear to be accurate at least it applies to more than 52% of househol ds in
this country, for that is the proportion of homes that own a pet. secent market data
shows that there are 6.1million Cat owning households, 5.2 million Dog owning
households, 4.1 million Bird owning Households , 1.9 million rodent owning
Households and 1.39 million Bird owning Households. In addition a little fewer than
half a million households choose to share a home with reptiles or snakes.

Of the major domestic Pets Cats and dogs there are 9.58 Million cats and just under
6.8 million dogs, these on their own account for nearly 70% of the spend in the pet
supplies market
No wonder the Pet Supplies Market is expanding with new pet products coming on
stream all the time.

] recent survey of Pet owners who took their animals to a vet, found that nearly
one-third said they spend more time with their pets than with their friends. ]nimals
are playing a larger role in our lives and working people are choosing to provide
them with a good life. ]s a nation they seem to enjoy the benefits of sharing their
lives with their pets. Seemingly people thrive on the affection, companionship and
security they receive in return for food, comfort safety and exercise. Whatever their
lifestyle, whether they are busy families, professionals or singletons, it seems there
is a pet to suit. Ôhe Nations 12.5 million pet owners spent an estimated £ 4 billion on
pet Supplies in 2008 according to the Pet Industry Joint ]dvisory Council.

When we think of pet Supplies we tend to think of Pet Food, With over half of UK
households owning a pet, and approximately 90% of pet owners feeding prepared
pet food at least once a week, the market for prepared pet foods is significant. Ôhe
current market is valued at just over £1.5 billion.

So the uestion is Could UK pet food brands be successful in extending into the pet
care and pet accessory segments?
-

SÔsENGHÔS

V Increase in number of pet lovers -]s, the pet lovers are increasing day by
day, and they want to give something Ơextraơ to their pets, maximum number
of the people would appreciate the new range of accessories and would
definitely go for a trial.

V Various Segments -Ôhey can try various segments of products. Ôhey can go
for a variety of normal accessories and personalised accessories, and create
all new segments for the pets, so as to attract the pet owners.

V Moving towards premium products- Ôhe pet owners are these days buying
premium products for their pets. Ôhey want to give every extra comfort to
their pets.

WE]KNESSESS

V Unavailability of products - Ôhe pet care, food, accessories, and other products
are not available easily everywhere. Pet owners have to generally buy these
from the vet.

V Expensive - Ôhe pet products are generally very costly and it may not be
affordable to every pet owner.

V Less options- Ôhe pet owners donƞt have many choices in the product range
or the brand.

OPPOUsÔUNIÔIES

V Untapped segments- Majority of the pet owners would love to try out new
product segments out in the market. Like new range of products, shampoos,
mouth sprays, conditioners etc. can be introduced.

ÔHsE]ÔS

V Lack of awareness- Many people may not be aware of the pet issues and
therefore, may not even try different products available.
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With p t anthr p  rphis  gathering pace in the UK, manufacturers are
 
increasing y ab e to persuade pet owners to trade up to the superpremium and
premium products that have driven value sales growth in recent years  Consumers
are driving this demand as they are increasingly aware of their pet's nutritional
re uirements,

In the UK, value sales for premium dog and cat food grew 9.2% during 2006 to
£655 million. This growth has been driven by a raft of new health focused multi-
functional foods aimed at weight management and improving pets' paws, claws,
eyes, coats, skin, teeth, digestive health, and brain power. Key terms appearing on
packaging have included omega 3 & 6, macro-nutrient profile, wheat and gluten
free, and hypoallergenic.
2006 also saw significant innovation for pet life-stage and life-style products. Greater
UK consumer interest for such products proved especially beneficial to Masterfoods'
Whiskas cat food brand, which increased its share of total premium dog and cat food
nearly 2 percentage points to claim 19.4% of value sales according to Euromonitor
International research.
More emphasis is also being placed on human grade products, such as the 2006 UK
release of Nestlé's Winalot British Favourites in varieties including Beef Stew and
Lamb Hot Pot. Likewise, hyper-premium products such as Nestlé's Gourmet Solitaire
cat food and the new range of dog desserts from Town & Country Petfoods, which
contain real fruit and retails at more than £6 per kilo, are becoming more common.

THE MAsKET
 
V s
    
 
      

   - food,
accessories, vet/insurance fees, kennelling etc. Current performance by sector
and review of future prospects up to 2013.
V  
#" %%.!- pet population, changing mix of pet ownership,
impact of economic downturn in 2008/09, cultural and social influences, new
product developments, changing retailing trends influencing product awareness
etc.

V Pet accessories are part of the larger UK pet m arket that was valued at £4.7
billion at sSP in 2008, an increase of 4% from the previous year. Ôhe pet
accessories market was estimated to be valued at £647m at sSP in 2008,
representing steady growth despite the deteriorating economic climate. Since
2006, growth levels have been steady due to value growth at the upper end
of the market, product innovation and the continued expansion of pet
superstores, especially Pets at Home.
V Ôhe UK pet product market can be divided into 4 main sectors: pet food, pet
accessories, vet/insurance fees and kennelling. Pet accessories are the third
largest sector by value as shown in the chart. Pet accessories can be divided
into 4 main sectors - toys (37%), care products (32%), storage & feeding
(21%) and collars, leads & ut ility products (8%).
V Ôhe pet accessories market has been characterised by changes in types of pet
ownership, increases in the number of households and a demand for more
convenient products. Ôhe market has performed reasonably well and is
generally less affected by adverse economic conditions, as many products are
either viewed as necessary purchases or are low value items. Ôhe market
remains very competitive in 2009 with high levels of imports, e.g. bedding
and toys markets, and a prevalence of closely com peting products. Ôhe
supply structure remains highly fragmented despite several ac uisitions in
recent years, with only 4-5 companies having market shares at or above 5%.
V Ôhe toys sector has outperformed the overall pet accessories market, having
been stimulated by an increase in the number of innovative products and
trading up to higher uality products.
V ]lthough care products saw lower growth than the toys sector, this market
includes the growing markets of flea and worm treatments, which have seen
sales increasing as deregulation has widened distribution channels. Ôhe
a uarium products and cat litters sectors have also seen growth, whilst
grooming e uipment and vitamin and minerals saw some loss of share in
2008. Ôhe storage & feeding sector only experi enced low growth, but
benefited from good growth in the cages and tanks/a uariums sectors.
Collars, leads & utility products is a market in slow decline, mainly due to the
reduced levels of dog ownership.
V Many suppliers / retailers are indicating that 200 9 to date has not seen any
market decline, though some high value products, e.g. large a uariums, and
non-necessities are forecast to see lower rates of growth 2009 -10. Pet
superstores now account for an estimated 35% market share and are forecast
to continue to grow at the expense of independent pet shops ƛ reflecting
their ability to offer more comprehensive ranges.
V Ôhe pet accessories market is forecast to continue to be highly fragmented
although the current difficult economic climate will undoubtedly result in a
number of business failures, as well as further ac uisition activity. ]nnual
 growth is expected to improve between 2011 -13 when the pet accessories
market will be worth £822m at sSP.

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V  % % 
- Baskets, bedding, hutches and cages, tanks
and a uariums etc.
V c  
- Grooming e uipment, maintenance products, flea
treatments/wormers, cat litters, health and vitamins etc.
V 
ƛ Dog, cat, reptile, fish, bird and small anima l toys - training, activity,
interest and utility toys.
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added products, etc.
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Ôhe research has shown that the people tend to buy their pet supplies from a variety
of sources but the Pet supplies market is something of a rarity in this day and age,
proving to be one of the few remaining fragment distribution channel market places.
In plain this means that they tend not to buy all our pet supplies from the major
supermarkets. Ôhis can be put down to the increasing moves towards specialty or
breed specific foods and the huge range of e uipment, homes, tools, accessories
and toys used by pet owners. In practice even the largest Supermarkets don't have
the space to offer anything approaching the range of the average pet shop.

Ôhey also tend to want to seek advice when purchasing on behalf of their pets and
subse uently many people still seek the advice of the local pet Shop. Ôhe increasing
trend towards online shopping in most market places was a little slower to take off
in the Pet Supplies industry because of this. Ho wever large numbers of pet owners
are now choosing to but their pet supplies online, with websites that are set up to
facilitate customer interaction and uestion answering doing best.
 C]SE SÔUDY ON
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