Pet brands, retailers, service providers, distributors and investors alike turn to L.E.K.'s global team of experts for help navigating the pet industry. Positive macro trends are fueling continued spending growth in pet food, products and services. As in many other consumer segments, participants in the pet industry must carefully hone their brand propositions and architect go-to-market strategies that take into account evolving consumer needs, a shifting channel landscape and innovative competitors.
We are a leading advisor to the pet industry, and our extensive experience spans many areas, including pet parent segmentation and insights, channel and distribution strategies, new concept development, services and cross-channel strategies, growth strategy, and M&A support. Our work has covered all major product categories, from pet food and supplies to services and veterinary products, and we have worked throughout the value chain.
Key questions and challenges
Our experienced professionals have a deep understanding of the internal factors and external market forces participants must contend with in developing winning strategies in the pet sector. We believe management teams need to be asking themselves a number of key questions as they seek to ensure they are well-positioned to thrive in the future.
- Which segments of pet parents does our brand resonate most with today? Which segments are most attractive and/or present the most viable growth opportunities in the future?
- Which pet purchase occasions are the most attractive for us to serve?
- How does our strategy need to evolve in light of the size and growth of major digital retailers (e.g., Amazon, Chewy)?
- How can we tap into the emotional and experiential needs of consumers, which can be key drivers of wallet share growth and increased loyalty among pet parents?
- Is our business taking advantage of premiumization trends that are occurring across the sector? To what extent are we tapping into consumer demand for innovative products and better foods (e.g., organic, all-natural, grain-free, high-protein)?
- How can we protect margins in light of both increasing pricing transparency across channels and share gains by aggressive online-only players?
- What is the optimal role of ecommerce for our brand? What ecommerce and omnichannel strategies make the most sense in the near versus the longer term?
- Are we benefiting or hurting from private-label products? How can we make this a value creator for our business?
- How do we ensure that the role of our store and digital channels meets consumers’ needs and drives sustained spend (e.g. through services, other value-added experiences)?
- How will new business models affect our business?
- How do we engender loyalty among our consumers given the many choices that they have?
COVID-19 Impact on the Foodservice Industry Part I — the Great Channel Divergence
The coronavirus crisis has created disruption of unprecedented scale for the food and beverage industry, and the impact on foodservice and grocery retail could not be more divergent.
COVID-19 in the US: Consumer Insights for Businesses — Edition 1, Part 2
In this update to our recent Consumer Insights Series, we provide new findings about declines in U.S. consumer income and “new normal” spending levels post-outbreak.
COVID-19 in the US: Consumer Insights for Businesses
The coronavirus crisis has thrown us into uncharted economic territory. Still, one thing is certain: Consumer behaviors are changing significantly.