Royal Canin symbolizes the love of pets, especially cats and dogs. It's the history of a will to improve dogs and cats nutrition to fit better with their needs and specific problems.
It was founded in 1967 in a village of Gard, France, by the French veterinary surgeon Jean Cathary. The unbalanced feeding of pets inspired him to found his company, which is dedicated to the manufacturing of foods for dogs and cats. The company was registered as a brand in 1968.
Since its creation, Royal Canin has focused on pets and their specific needs all along their life, becoming the specialist of dogs and then cats, with the support of vets and dogs breeders. Even with the different changes in top management and with its acquisition by Mars group, Royal Canin never changes its vision which is focused on the pets.
[...] This is the Business Model of Royal Canin in France and Germany. In the United States, this business model is not executed, which might be the explanation to the low results over there. But we should analyze whether this business model is applicable to such a wide continent. Also we want to evaluate the impact of the retirement of the CEO. This model has been a success in France and Germany. With this model, it was possible for the company to build up a strong brand image. [...]
[...] In terms of culture and even in terms of management, Royal Canin is recognized for its humility and proximity with the pets, with the clients and with its own staff team. The accent which is set on tradition represents strength and a pride, so that it can still impose its reference, while situated in a rural area in the South of France. The company know how to maintain accessibility and simplicity, while being a European precursor and a leader. Through an Identity Prism, we can sum up and classify the different values of Royal Canin. [...]
[...] In this context, the vets associated with Royal Canin will play a core role in educating the pet owners, explaining them the physiological needs of such a breed, and the quality nutrients required to their biological balance. The education process is a way to avoid the high investment of TV and mass media advertising, the brand message being diffused through another channel, being scientific reputation and strong ties with professionals. This process also adds to the differentiation of the brand by its unique communication approach to attract specific pet owners health oriented - and spread the unique market vision of Royal Canin. [...]
[...] In the Royal Canin dynamism, we can really talk about a ‘virtuous circle of commercial Dynamism': the distribution centres are profit centres and have ambitious sales objectives. When objectives are outperformed bonuses are obtained They also have a sales force specialized for vets and dog breeders. Intangible Resources Technological Resources The technology is linked to the R&D centres that are the key success elements of Royal Canin products. Innovation Thanks to its R&D centres, Royal Canin can offer very innovative and unique products. [...]
[...] The Royal Canin spirit and its values are driving the growth of the brand in its industry. Indeed, it makes the brand seem to be transparent; it gives confidence to the customers who feel involved in the quality programme of Royal Canin products. They are not just selling pets' food, but pets' nutrition, pets' health! Let's see the competitive environment of Royal Canin with the Porter matrix: The competitive environment of Royal Canin is quite intense ( 2.6 Indeed, there is competition in the pets' food market, in the specialized one as well as in the mass retailing one (which is a very strong substitute for pets' food). [...]
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