Pet owners everywhere are spending more money on their pets than ever before and are constantly looking for new products to maintain their pet’s health and well-being, as well as improve their quality of life.
Pet food manufacturers are looking for ways to make themselves stand out from competitors and drive more sales. One way they are doing this is through Pet Food Market Segmentation. By segmenting the market into different categories, they are able to serve each segment better.
In this article, we’ll review the 9 variables that Pet Product Manufacturers use to segment this vast market so that they can develop specific marketing strategies for each segment.
We will also see how they perform Psychographic Segmentation of pet owners based on each owner’s relationship and attachment to their pet.
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The importance of Segmentation of the Pet Food Market
Market Segmentation is the process of dividing a market into different groups, or segments, based on certain characteristics that they share.
By segmenting the pet food market, pet food manufacturers are able to understand what type of pet food is best suited for each segment.
Pet owners within the same segment will share similar characteristics, such as their income level and lifestyle. Similarly, pets in the same segment will also share characteristics with each other.
Pet food manufacturers use such information to decide what type of products would be best suited for each segment.
For instance, pet owners who are willing and able to spend more money on their pets will typically purchase premium pet foods, while those with lower incomes might not have the option of buying pricier brands. This type of Price Segmentation helps businesses maximize profits.
Pet Food Market Segmentation allows each market segment to receive a product that is better suited to its needs.
By using Differentiated Marketing strategies, pet food manufacturers are able to be more targeted in their promotions, advertising campaigns and sales strategies by basing them on what works best for each segment of the market.
Variables for Pet Food Market Segmentation
Pet Food Companies generally segment the market based on the following variables:
- Species: Dogs, cats, fish, birds, etc.
- Age: Puppy/kitten food, young adult pet food, older pet food
- Pet Size: Toy breeds, small breeds, medium breeds, large breeds
- Activity level: Couch potato pets, indoor-only pets, active pets
- Diet – Wet, Dry, Raw and Organic
- Price: Economy brands, mid-priced brands, premium brands
- Type/Choice of Ingredients: Meat, Grain-free, organic, natural, vegan
- Preferred Food flavor – Chicken, Beef, Fish, Vegetarian
- Location: Regional brands, national brands, store brands
Let’s look at these variables in some detail.
Segmenting the Pet Food Market by Species
One way to segment the pet food market is by Species. There are four types of pets that are typically considered when it comes to pet food marketing: Dogs, Cats, Fish and Birds.
Different types of pets require different types of food. For example, dogs need meat-based diets, whereas cats require more grain-intensive food. Pet owners will usually purchase pet food that is similar in nutritional content to what the animal would eat if it was living in the wild.
For example, dogs are omnivores and do well on vegetarian or vegan diets just like humans; while many dry dog foods contain cornmeal, wheat flour, and other plant-based ingredients, these are not necessary for the dog’s health. Pet food companies that produce vegetarian or vegan diets for dogs typically add synthetic vitamins and minerals to make up for any nutritional deficiencies.
Segmenting the Pet Food Market by Pet Age
Another way to segment the pet food market is by the age of the pet. Pet food companies typically produce different types of pet foods for different age groups. There are three main age groups: Puppy/kitten, Adult and Older Pet.
Puppy/kittens require a different type of diet than adult pets. Kitten food is usually higher in protein and fat, while puppy food contains more calcium and phosphorus to promote healthy bone growth.
Adult pet food is designed for pets who are no longer growing, and typically contains a balanced mix of protein, fat, carbohydrates, vitamins and minerals.
Older Pet food is formulated for pets who are experiencing health problems associated with age. It often has fewer calories and less sodium than adult pet food.
Segmenting the Pet Food Market by Size
It’s also common to segment the pet food market based on the size of the animal. Let’s take cats and dogs as an example.
There are three main categories: toy breeds, small breeds and large/giant breeds. Pet food companies usually produce different types of diets for these different sized animals due to nutritional needs varying based on animal size.
Toy breeds of dogs are the smallest type of dog and typically weigh less than 20 pounds when fully grown. They require a diet that is higher in protein and fat content to meet their energy needs.
Small dog breeds are slightly larger than toy breeds, weighing between 20-40 pounds when fully grown. They also need a diet that is high in protein and fat to meet their energy needs.
Large/giant breed dogs are the largest type of dog and weigh more than 40 pounds when fully grown. They require a diet that is low in calcium and phosphorus to prevent them from developing bone problems.
Segmenting the Pet Food Market by Activity Level
Another way to segment the pet food market is by the pet’s level of activity. Pet owners purchase different types of pet food depending on the amount of exercise their pet gets and how much energy it has after exercising.
Couch potato pets need a more sedate diet than active pets, while indoor-only pets do not get enough exercise to require an athletic type of diet like active outdoor pets. Pet food companies typically produce different types of diets for these different activity levels.
Segmenting the Pet Food Market by Diet
We humans aren’t the only ones following diets. Pet owners purchase different types of pet food depending on what type of diet their animal needs (or rather what their owner wishes them to have).
The four main types of diets are: Wet, Dry, Raw and Organic.
Wet diets are mostly made up of canned or fresh meat, with a small percentage of grains or vegetables. They are usually higher in fat and protein content compared to other types of pet food.
Dry diets are mostly made up of kibble, with a small percentage of canned or wet food. They are lower in fat and protein content than wet diets, but higher in carbohydrates.
Raw diets are mostly made up of raw meat, with a small percentage of grains or vegetables. They are the most expensive type of pet food and can be difficult to prepare.
Organic diets are made up of organic ingredients only. Pet food companies that produce organic diets typically add synthetic vitamins and minerals to make up for the lack of nutrients.
By focusing on the dietary needs of a pet, pet food companies can use Benefit Segmentation strategies to tout the benefit of one diet or another.
Segmenting Pet Food Market by Price
Another way to segment the pet food market is by price. Pet owners purchase different types of pet food depending on how much they are willing to spend. The four main price points are Economy, Mid-Range, Premium and Super Premium.
Economy-priced pet foods are made with cheaper ingredients and typically have a shorter shelf life than other types of pet food.
Mid-Range priced pet foods are made with more expensive ingredients and have a longer shelf life than economy-priced pet foods.
Premium-priced pet foods are made with the most expensive ingredients and typically have the longest shelf life of all four types of pet food.
Super premium-priced pet foods are the most expensive type of pet food and usually have the best quality ingredients.
Segmenting Pet Food Market by Type/Ingredients
Another way to segment the pet food market is by type or choice of ingredients. Pet owners purchase different types of pet foods depending on what they are looking for in a product, which can be determined through their price point and ingredients list.
The six main types are: premium, economy, holistic/natural, organic, grain-free and limited ingredient.
Premium pet food is the most expensive type of pet food and typically contains high-quality ingredients.
Economy pet food is the least expensive type of pet food and typically contains low-quality ingredients.
Holistic/natural pet food does not contain any artificial colors, flavors or preservatives.
Organic pet food is made up of organic ingredients only.
Grain-free pet food does not contain any grain, such as wheat or corn, which are common allergens for dogs and cats. Pet owners often purchase this type of product for pets that have allergies to grains.
Limited ingredient pet food typically contains about five key ingredients in their kibble, making them a good choice for pets with allergies or sensitivities.
Segmenting the Pet Food Market by Preferred Food Flavor
Like humans, pets too prefer one flavor over another. Pet owners purchase different types of pet food depending on what type of flavor their animal prefers. The four main flavors are: Chicken, Beef, Fish and Vegetarian.
Pet food companies typically produce different types of diets for these different flavor preferences.
Segmenting the Pet Food Market based on Location
The Pet Food Market can also be segmented based on location. Pet owners purchase different types of pet foods in different parts of the world. The four main regions are: North America, Europe, Asia Pacific and the Rest of the World.
Some Pet owners also prefer to purchase locally sourced food for their pets by buying local brands. And so Pet Food Manufacturers have started to offer pet food products that are region-specific.
Psychographic Segmentation of Pet Owners
It’s well and good to segment the pet food market based on the characteristics of the pet.
But pet food purchase decisions are made by the pet’s owner.
And so, it’s equally important to understand the psychographic profile of the pet owner so that we can segment them based on the relationship they have with their pet.
Based on their Psychographic profiles, pet owners can be classified as:
- Active Pet Owners
- Busy Pet Owners
- Single Pet Owners
- Luxury Pet Owners
- Loyal Pet Owners
Active Pet Owners
This group is health-conscious and buys natural or organic pet foods without artificial flavors or preservatives. They prefer local brands to support their community.
Busy Pet Owners
Busy Pet Owners are time-pressed and will buy whatever pet food is most convenient, which often includes grocery store foods or big box brands.
Single Pet Owners
This group buys economy-priced pet foods to save money and typically only has one pet.
Luxury Pet Owners
This group buys the most expensive, premium pet food for their pets to treat them like family members.
Loyal Pet Owners
Loyal Pet Owners buy the same pet food every time and stick with a single brand, even if it means paying more.
When it comes to Pet Food, there is something for everyone. By understanding the different ways that the Pet Food Market can be segmented, Pet Food Manufacturers are able to create products that appeal to a wider range of customers to increase their market share.
Summary
Market Segmentation is an important strategy for pet food companies to utilize to make sure that they are serving all segments of the pet food market with the right product and promotion mix.
By dividing the market into different groups, they are able to understand what each group wants and needs from a pet food product. This helps them to create products that are more successful in appealing to each target segment of the market, rather than trying to appeal to everyone with one general product.
When segmenting the pet food market, it is important to segment the pet as well as the owner.
Putting the pet in the correct segment helps pet food companies create products that are just optimal for the pets in that segment. Putting the owner in the correct segment helps the companies market to the decision-maker with the correct messages making it more likely that they will purchase the product for their pet.
