Blue Buffalo is an American company founded by Bill Bishop and his sons Chris and Billy in 2002 to produce a type of food they would feed their dog named Blue (Bridger, B. 2002). Blue had suffered from cancer, and its sickness led Billy and his sons to find a way how they could save their sick dog. They started to educate on the kind of food essential to pets by considering the mixtures of food that will provide the best type of food to feed pets. The education by Bill and his sons targeted the whole pet parents globally, insisting more in South Korea. Korea has signed 16 free trade contracts since 2003 and expects talks with Vietnam to be concluded soon. In March 2018, Seoul and Washington settled to reintroduce their unrestricted trade. The arrangement will advance entree to the U.S. in the Korean motorized marketplace. The economy in South Korea is predicted to strengthen relating to social and economic disturbance triggered by COVID 19 and slow evolution in exports, as per the report given by Euro monitor. Employment of the KORUS FTA creates innovative opportunities for U.S. provisions by dipping rate and non-exchange barriers of trade. Blue Buffalo takes this advantage to invest more in South Korea as Korea becomes a high rate growing market where innovations are more valued, food services productions; retail and resident dispensation are expanding past. Korea believes that the U.S. can offer quality consumer goods as they focus on imports, their primary source of food and farming products.
After their success in North America, they want to export their products globally to save the life of pets. The Pet food industry comprises so many companies with a common goal of offering the best to their customers through their unique marketing strategies. In its operation, Blue Buffalo has faced many challenges in the competitive market. One of the big pet food producers, CPG group, has given great competition to the market. CPG is trying its best to reach a brand level with over $ 10 million in sales only in the U.S. (van Ewijk et al., 2021). It has also launched two big companies that have taken over control of more than half of the world market. In the late 1990s, more players were quality-oriented, unlike the existing company, which focused on good intentions. The current company had a poor market strategy and inadequate resources to capture a comprehensive market and also had no capabilities to compete favorably. Blue Buffalo came later and had a good plan and vision to conquer the existing companies. These forced some companies with the same idea as Bishop’s family to merge started as it was fast-growing; thus, it could dominate the market and exercise monopoly. Invus took over the sponsorship after Blue Buffalo absorbed CPG in 2006.
Due to its proper strategies, Blue Buffalo has emerged as a leading company in producing petty foods in the U.S. (Carolan, M. 2016). Building a true pull-brand has enabled Blue Buffalo to adopt the consumer changing behavior, thus making the industry’s leadership. In 2017 Blue Buffalo joined FDM. The company realized double profit from 2005 to 2017, building a solid margin, over 80% ROIC, leading industry, and free- cash flows.
From the statistics, it is evident that the Blue Buffalo company has dominated the pet food-producing industry in the U.S. Blue Buffalo has gone to the front line in creating awareness and enriching people with research relating to the blue dog family who the formation of the Blue Buffalo had enthused. Due to its competitive advantages and a sole mixture of scale, high growth, and margins, Blue Buffalo as a public company has attracted many investors in the pet industry (Hobbs Jr, L. 2019). As a result of many investors entering the market, the company has achieved its long-term and short-term financial targets.
References
Bridger, B. (2002). Buffalo Bill and Sitting Bull: Inventing the Wild West (Vol. 21). University of Texas Press.
Carolan, M. (2016). The sociology of food and agriculture. Routledge.
Hobbs Jr, L. (2019). Analysis of customer perception of product attributes in pet food: Implications for marketing and product strategy (Doctoral dissertation).
van Ewijk, B. J., Stubbe, A., Gijsbrechts, E., & Dekimpe, M. G. (2021). Online display advertising for CPG brands:(When) does it work?. International Journal of Research in Marketing, 38(2), 271-289.
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