Case Study Analysis of Barf-alarm's Marketing Strategy: A German Pet-food Organization
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| Barf-alarm's Marketing Strategy: A German Pet-food Organization |
The present techno-economic environment has revolutionized the ways of doing business using virtual platforms. Technological interventions for business use have contributed to reaching out to customers without geographical boundaries to understand customers' buying choices and spending capacities. The finding of customer' trends helps to make online marketing strategies to lure customers and to keep customers loyal to a particular brand (Kotler & Keller, 2016). The contribution of the internet to gain market intelligence to form online marketing strategies has eased the process for tech professionals to focus on using digital tools to attract online customers (Zeng & Duan, 2012). Online marketing using social media and other platforms launched by online hosts or service providers are among the latest trends that are becoming unique every passing day. One of the primary focuses of online marketing is to increase sales by reaching out to customers. Online marketing has proved a major source to ensure profitability and business growth resulting in strong market position (Lockett, 2018). The use of social media for business purposes to attract customers is one of the leading trends. Studies reveal that the number of registered businesses on Facebook is 50 million and this is the case for a single platform only. It is evident from statistics that almost 88% of global businesses have their presence on Twitter to engage customers and these initiatives are part of online marketing. The statistics indicate that by 2023 internet users will be almost 3.43 billion. This is a sign of information and digital explosion that perplexes as well as convinces business owners to opt for online marketing strategies to gain a considerable market position (Dwivedi et al., 2021).
Making an online marketing strategy is essential for businesses that exist online and have physical stores because the presence of a strong online marketing strategy would contribute to affecting behavioral attributes that affect pet food purchases (Kwak & Cha, 2021). This study analyzes Barf-alarm's online marketing initiatives to increase dog food sales in competitive German and international markets of pet food producers. The critical evaluation of the Barf-alarm website suggests that the organization has an interactive website to engage pet food searchers to examine full details of dog food with quality, type, and price. This paper examines how the online marketing strategy for Barf-alarm can be improved using Porter’s 5 Forces model and by analyzing market trends. The study also investigates how search engine optimization (SEO), search engine advertising (SEA), Facebook, and Amazon can be used for online marketing and selling dog food. This will assist the readers to understand and evaluate the advantages and disadvantages of using online platforms to ensure a successful online marketing strategy. The researcher also applied the SWOT analysis framework to map Barf-alarm's online marketing strengths, weaknesses, possible opportunities, and business threats to reformulate its online marketing strategy for successful gains.
Barf-alarm: The Business Analysis
Julia Reinarz and Fabian Rossbacher founded an online business for dog food in 2016. The business was named BARF-Glück (Reinarz & Rossbacher, 2016). The legal identification of the business appears as FJ Gesund Und Glucklich GmbH registered in Cologne, Germany (Barf-alarm, 2016a). BARF means Biologically Appropriate Raw Food and it has been a popular food for dogs and cats in most European countries. The available statistics indicate that almost 51% of pets in Europe enjoy a BARF diet that includes organs of beef including bones. Additionally, suppliers add different vitamins and minerals to the fresh meat that is canned and available for pets' use in the market (Brozic et al., 2019). The founders of BARF-Glück aimed to supply dried food and fresh meat for dogs along with a variety of pet dog accessories and consultancy for dog owners. The business has been operating online only and uses online marketing tools and platforms to interact with its customers. Barf-alarm has its presence on Instagram, Facebook, and Amazon. It has an interactive website with blog writing facilities to facilitate customers to interact and benefit from others’ ideas and experiences concerning BARF food. Barf-alarm follows international nutrition standards in dog food to keep animals healthy and one of the specialties of the Barf-alarm business is that the meat is provided from regional slaughterhouses directly to clients without refrigeration process with maximum fresh elements. The retention of fresh beef from local slaughterhouses saves a lot of transportation expenses and customers get a fresh dog diet. However, sometimes customers cannot get a particular food item because of unavailability as everything is delivered fresh. To overcome supply-demand issues, Barf-alarm exports certain dog food items, and the details about shipment and possible time are provided to customers (Reinarz & Rossbacher, 2016).Online Marketing of Braf-Alarm Products
One of the purposes of online marketing is an interaction with customers and providing all the details of products with the complete description, price, and quality highlighting certain features that are unique and different from competitors’ products. Considering these options the primary aspect of Braf-alarm online marketing strategy is to show product differentiation to its customers by highlighting product quality and cost. Dog owners always tend to find variety, quality, germ-free packaging, and affordable products (Ravangard et al., 2020). It is a well-known fact that customers are always attracted to available products in the market that are cheaper, and good in quality with unique features. For Braf-alarm it is essential to consider McCarthy’s 4P strategy. It is one of the strategic tools that can help to make an effective online marketing strategy to sell dog food. McCarthy’s strategy emphasizes that business organizations need to consider the product, price, place, and promotion principles to increase sales (Coculescu et al., 2016).Barf-alarm has an interactive web portal that not only serves as a marketing tool but is used to sell online products. The available product information on the portal assists dog owners and lovers to find a variety of products from the webpage. Barf-alarm offers 23 different types of fresh beef products for dogs. The description of every product has details of product price, quality, and quantity with actual pictures of products that convince buyers to examine all the aspects concerning products. The organization has listed all of its meat products under six different categories that include, beef for dogs, grass-feed lamb for dogs, barn rabbit meat, fish, offal, bones, and cartilage. Similarly, Barf-alarm also sells feed supplements, dried animal food, and a unique product known as ox ear with fur. Barf-alarm web portal has unique features that involve a shopping cart, customer representative contact number, and a comparison of products with other available dog food products in the market. This allows customers to examine the price range and quality of products with customer reviews. The prices of Barf-alarm dog food products indicate that the organization has an average price for all the products making it affordable for dog owners to buy food for their pets. This is a unique product marketing tool that facilities customers to have access to product information with an actual price range (Barf-alarm, 2022a). Barf-alarm's website is customer friendly and the presence of product images does not contribute to any delays while online surfers search for their product. This is a major source of solace for internet users.
Critical evaluation and analysis of Barf-alarm content indicate that the Barf-alarm uses an up-to-date online marketing strategy by focusing on customer psychology. The presence of product details on the web portal with the description of included, and excluded ingredients along with allergic advice make it convenient for customers to buy a product with peace of mind. The inclusion of happy customers' reviews is a major source to attract future customers showing the confidence of former customers (Barf-alarm, 2022b). According to Rao et al. (2021), innovation and strategic diversity are contributory factors that enhance customer satisfaction. The happiness (Lee et al., 2016) from products also motivates business managers to improve product and service qualities to gain more market place. Barf-alarm's online blog writing and feedback options are constructive approaches to bring reforms in its online marketing strategy because this helps to know customer expectations, perceived quality against the spending of money, and satisfaction that leads to brand loyalty. The digital representation of products (Ashfaq et al., 2019) with exclusive product descriptions such as price and quality in terms of nutritional aspects of food influences buyers’ psychology. These elements contribute to customers’ purchasing behavior based on their cognitive satisfaction. The ethical description of products to attract more customers on their platform Barf-alarm believes that “we have set ourselves the goal of owners who want their dog to be humane and want to support healthy nutrition by using BARF meat from exclusively species-appropriate animal husbandry for make everyone available” (Reinarz & Rossbacher, 2016).
Porter’s Five Forces and BARF Industry Analysis
To stay competitive in the market, Porter's five forces serve as the golden rule. For Barf-alarm it is essential to understand the industry structure of online BARF suppliers. Porter's five forces are a useful source to understand, analyze and reform online marketing strategies to stay competitive in local and international markets. Porter's five forces model is a comprehensive framework that allows the understanding of competitive rivalry, threat of new entrants, bargaining power of suppliers and buyers, and a potential threat of substitute products (Hole, Pawar, & Bhaskar, 2019). Barf-alarm requires the identification and recognition of these potential aspects of the BARF industry to gain a strong market position.Many BARF food competitors exist in the online market to give a tough time to Barf-alarm. However, one of the unique aspects of the Barf-alarm product is versatility and freshness. The organization is providing dried food for dogs that is similar to products of other competitors; however, its nutritional products, oils, and fresh meat from local slaughterhouses are unique factors to defeat other dog food producers. Despite this all, Barf-alarm needs to make its brand name famous and it's a well-known obstacle (Hole, Pawar, & Bhaskar, 2019).
Barf-alarm is a relatively new business launched in 2016; however, the BARF market across Europe has the potential to attract new investors to start the dog and cat food business. The entrance of new competitors in the market is a possible threat. Being an online business, Barf-alarm needs to be innovative, not only in presenting its products but to make contact with customers. Barf-alarm has a unique supply chain network as it gets most of the meat from local slaughterhouses which reduce transportation issues. The interactive web portal, blog writing, and online feedback are certain online tools that make Barf-alarm unique because these tools provide chances to interact with customers on regular basis (Reinarz & Rossbacher, 2016; Ashfaq et al., 2019; Hole, Pawar, & Bhaskar, 2019).
The bargaining power of suppliers is a potential threat that often disturbs the volume of business for any organization. Suppliers with a strong market position often pose threat to businesses as they can stop the delivery of dog food to increase product prices. However, one of the strongest options for Barf-alarm is the availability of fresh meat from the local market and this is a unique aspect of its online marketing strategy. The organization gets its products from local producers and has the option to change suppliers without stopping its food delivery for dogs (Reinarz & Rossbacher, 2016; Barf-alarm, 2022a, b).
Customers' bargaining power is one of the most potential threats for BARF businesses because every new business comes with a unique strategy that attracts customers. Keeping customers loyal to a brand is a daunting task. Product differentiation, product superiority, quality, affordable price, and product inimitability are certain factors that Barf-alarm has been using to retain its customers. Ox ears, rabbit meat, and fresh internal organs of beef are certain unique products that attract dog owners who want a new taste for their dogs. Similarly, price differentiation is a unique aspect of Barf-alarm because the online store sells fresh meat at a cheaper price as most of the products are purchased from the local market which reduces transportation expenses (Barf-alarm, 2022a, b; Deresky, 2008). Online market analysis (Al-Badi, 2018) is a contributory factor to attracting and knowing customers’ attention, interest, desire and the knowledge of customers' psychological traits reduces the risk of bargaining power of customers. Barf-alarm has an online page under the title of 'our satisfied customers this is a major source to attract new customers believing in the quality of products. To overcome online marketing issues, performing market segmentation is a useful option for online businesses as this will allow Barf-alarm to resolve sustainability issues and determine the responsiveness of online customers (Barf-alarm, 2022a, b; Hole, Pawar, & Bhaskar, 2019).
The threat of substitute products is a potential risk and it is strong enough to damage online BARF businesses. Porter believes that the presence of a substitute needs to be focused on aggressively when making marketing strategies. Substitute products fill the gap that a company is unable to foresee. The availability of a quality product at a lower price and with ease of access attracts customers (Deresky, 2008). Online BARF products by renowned brands are a potential threat to Barf-alarm especially when international pet food suppliers have strong distribution channels and they have the ability to sell products at a lower price. However, this case might be strong in dried pet food but not in fresh pet food. The primary product of Barf-alarm is fresh meat from local stores that the organization claims that its fresh products are of high quality (Barf-alarm, 2022a, b; Hole, Pawar, & Bhaskar, 2019).
Channels
The consideration of online channels is of utmost importance in understanding and evaluating the effectiveness of these channels in interacting with customers. The online marketing strategy-making process is a complex process that does not only focus on customers' choices but online tools as well to initiate certain trends that can persuade customers to buy particular products (Appel et al., 2020). A brief discussion will help to understand the importance of SEO, SEA, Amazon, and Facebook and the relevance of these platforms with Barf-alarm business.SEO
Search Engine Optimization shortened SEO is a unique process allowing a website to appear at the top of web searches. Content writers use certain keywords that help to bring the site on top of search results. SEO increases the traffic on the web bringing more people to see the content of the website. SEO is done with OnPage and OffPage optimization. SEO is a marketing tool that helps organizations to attract a number of internet surfers to company products. However, the whole process works as per Google’s algorithm. SEO helps not only in better visibility of a website but improves ranking as well. Websites that appear on top in search results are considered trusted by internet users. SEO is a process of creativity to promote web content to attract internet users. One of the strongest purposes of using SEO as an online marketing tool is to improve user experience (Yalcin & Kose, 2010).Using SEO as an online marketing tool as discussed already would bring a number of internet surfers and this is one of the biggest advantages for BARF companies as these companies can relay product information to potential customers. The second useful advantage of using SEO appears in the form of ease of using the website because everything is detailed in simple language. Customers can use certain words such as fresh BARF, Ox ear, or rabbit meat to search the potential supplier, and Google or other search engines would bring the most relevant results on the top (Barf-alarm, 2022a, b; Yalcin & Kose, 2010).
SEA
Search engine advertising is one of the useful options as an online marketing tool to interact with customers to attract new and old customers to buy BARF products for dogs. Organizations doing business online use paid SEA options on different websites. Paid advertising appears on different websites that online surfers use extensively thus surfers come across advertising content. Some organizations prefer SEA instead of SEO as it might take longer to attract internet users to come to the website. Companies pay per click to advertisers for displaying their ads on their web pages. These ads appear on the prominent sections of the webpage. SEA sometimes appears as a headline, at other times a URL appears that internet users click and thus visit the webpage. Using SEA enables organizations to approach customers on a fast track and the records of search data enable organizations to improve their ads to increase the number of customers. The negative aspect of using SEA is different from SEO. Customers often search for particular items with a certain name and this hinders organizations to use innovative titles or names for products. Some most visited websites demand higher price per click and thus it becomes costly for a small-scale organization to pay for advertising. Barf-alarm is not using the SEA option at present and using SEO and other social medial platforms that will be discussed in the coming sections (Craig, 2017).Ads appear on Facebook pages and users click these ads to reach business pages. People can interact with sellers directly using messenger and video chat options and these features appear on Barf-alarm’s Facebook page as well. Facebook allows its users to choose a specific budget for their advertising and can stop advertising to use the remaining budget later on. It is one of the useful options to use Facebook as it has target groups and ads are sent to target groups to market products. Innovation is one of the significant advantages to use the Facebook platform and users do not need to spend extra money to bring innovation in their advertising.
Barf-alarm exists on Facebook since 2016 and uses this platform for marketing purposes. The number of Barf-alarm subscribers is 8400 plus and the company uses different hash tags to attract customers. Barf-alarm has its website link on its Facebook page and the presence of videos, photos of products, dogs, and details of company activities make it an interesting online page for marketing products. Customers can send messages using Facebook to buy products and to discuss any other details relevant to dog food (Facebook, 2022).
Amazon
Amazon is one of the amazing, popular, and attractive online marketing and selling platforms that provides B2C and B2B services across the globe. It not only serves as a product search engine but facilitates independent retailers to sell their products. Amazon charges a service fee against its services and serves as a shipping company as well. This platform has its distribution channels and warehouses and houses the records of millions of customers to interact using Amazon advertising (Advertising. Amazon, 2022a).Through Amazon ads, Barf-alarm can sponsor its product, can make its brand name popular using video ads, audio ads, and by using sponsored display services. Amazon facilitates its users by establishing stores without any cost and companies can publish video posts and graphical posts to introduce their products (Advertising. Amazon, 2022a). One of the attractive options is ‘Amazon Live’ which allows business owners and individual sellers to live stream where they can interact with customers directly (Advertising. Amazon, 2022b).
With Ad Tech, Barf-alarm can boost its sales using Amazon DSP services that automatically display video and audio ads (Advertising. Amazon, 2022c). Similarly, with Sizmek Ad Suit, Barf-alarm can create, measure, and optimize campaigns to reach out to customers. This will surely increase the number of customers (Advertising. Amazon, 2022d).
Strategic Process for Barf-alarm
The online marketing process for Barf-alarm needs to be unique and diverse in all aspects requiring an in-depth analysis of Barf-alarm's strengths, weaknesses, opportunities, and threats. SWOT analysis is a useful option that can lead an organization to use different strategic tools such as Porter's five forces, generic strategies, and online channels to attract customers. An in-depth SWOT analysis enables an organization to evaluate its external and internal affairs to stay competitive in the market (Esteves et al., 2017.Online Marketing Considerations/Prioritization to Focus on
To initiate marketing strategy process, especially in the dog food context, there is a need for considering various aspects of customers purchasing attributes, business strengths, and competitors. Certain attributes affect dog food purchases these might include brand reputation, price fairness, package design, product healthiness, and overall attractive slogans. Studies have found that the healthiness of dog food has a direct impact on dog owners' psychology (Kwak & Cha, 2021).The second most crucial aspect that affects buyers’ psychological traits is the price of the product. A dominant majority of pet owners believe that their spending should be well paid off in terms of quality BARF. Satisfied customers recommend pet food to other dog owners and thus recommendation contributes to a higher number of customer attraction (Kwak & Cha, 2021).
The digital marketing strategy-making process (Neher, 2021) is a daunting task requiring great consideration of different strategic aspects. First, Barf-alarm needs to explore the scope of the product in a particular market. This will help Barf-alarm to evaluate the standards that Barf-alarm requires to attract new customers. The performance evaluation and understanding of competitors' approaches will help Barf-alarm to understand the weaknesses of its digital marketing strategies. The critical appraisal of the Barf-alarm strategy from its strategic teams would help to identify if the marketing strategy is strong enough to achieve organizational goals, and objectives. This type of analysis will help to devise certain tactics that will help the Barf-alarm team to overcome its marketing deficiencies (Neher, 2021).
Defining target audience/customers is a crucial aspect when using online marketing channels and this is the reason that the identification of customers is essential to developing attractive content. For instance, Barf-alarm's Facebook marketing strategy can be successful while targeting customers using the Amazon platform for purchases. This is the reason that selection of an accurate online channel is crucial for advertising purposes. To stay competitive in the market it is essential to check marketing performance and set milestones or indicators that serve best in this regard (Neher, 2021).
Implementation Process
Before the implementation process, Barf-alarm needs to decide on the adoption of the most accurate, productive, and helpful online marketing channels. For this purpose, SEO must be focused on to devising certain keywords that help searchers to find the Barf-alarm website easily. The organization has Facebook presence and it is easily accessible to social media users. This importance of social media cannot be ignored as billions of internet users exist on social media platforms.Similarly, there is a need for a greater focus on using the Amazon channel as it allows sellers to liver stream, advertise, and sell the product using Amazon's distribution channels. This will save Barf-alarm from spending extra money on logistics to supply dried food, canned diet, and even fresh meat. However, to supply fresh meat at the local level, Barf-alarm needs other logistics as Amazon might night supply of fresh meat. For this purpose, Facebook is a useful option to interact with customers, and hiring local logistics will ease the process of delivery.
The implementation of the Barf-alarm strategy can be divided into four steps and these include;
· Planning
· Evaluation
· Implementation
· Revising the online strategy
The planning process is a daunting task that involves consideration of all aspects of online marketing, organizational resources, availability of professionally trained human resources to support the development of a user-friendly website, and the development of a list involving key search words for SEO purposes. The planning process also involves consideration of customers’ liking and a variety of products that can easily be produced with improved quality and at a competitive price. The second most crucial aspect is the evaluation of the planning process to identify how Barf-alarm can successfully exploit social media, especially Amazon for ads, live streams, product listing, and product delivery globally.
The implementation process takes time and for this purpose, it is recommended that competitors' approaches must be studied to avoid online strategy implementation failure. User feedback from existing online channels that Barf-alarm has been using since 2016 can serve positively in this context. It is to note that a reasonable timeframe is essential to ensure the successful implementation of the online marketing strategy to avoid failure as haste might contribute to mishaps. Consideration to Porter's five forces model and strategic evaluation using SWOT analysis will help the organization to diversify its online marketing strategy as the differentiation process always inspires internet surfers. The following diagram will help to understand most of the processes of online marketing implementation.
Summary
Online marketing strategy development requires careful consideration of different online channels to interact with customers. However, for this purpose, the presence of a user-friendly website is essential that allows online customers to explore products, quality, and price. Dogs love BARF and BARF products are highly popular among pet lovers who tend to a healthier life for their dogs. Barf-alarm with seven years of online marketing experience has been selling dog food especially fresh meat purchased from local slaughterhouses along with other dried and canned pet food. However, in the last seven years, the number of potential customers is not promising enough to stay with the existing online marketing strategy. Good consideration of Porter’s five forces model to redefine strategic and marketing options might lead the organization to achieve its aim leading to considerable business expansion. To draft a successful online marketing strategy Barf-alarm needs to pay attention to customer attributes that influence purchasing. The selection of an attractive online channel for advertising and selling purposes such as Facebook and Amazon would lead to interaction with a good number of customers. Similarly, there is a need to pay attention to SEO so that internet surfers can search Barf-alarm websites in less time. Online marketing strategy development is a wear-and-tear process as the organization requires a strong market intelligence process to understand customer preferences to modify online marketing strategy. The presence of online competitors in the dog food industry and BARF indicates that Barf-alarm requires ample restructuring of its online marketing strategy to stay competitive in the dog food market. Such approaches will bring long-term success for Barf-alarm.References
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