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Why Purina's Business Model is so successful?

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Purina’s Company Overview


Purina is a globally recognized leader in the pet care industry, with a strong heritage that dates back to 1894. The company, a subsidiary of Nestlé, is headquartered in St. Louis, Missouri, USA, and offers a broad range of high-quality pet products, including pet food, treats, and litter. Purina's mission is to enrich the lives of pets and the people who love them, and it does so by providing scientifically formulated, nutritious, and tasty products for every life stage and lifestyle. The company's portfolio includes well-known brands such as Purina ONE, Pro Plan, Fancy Feast, and Tidy Cats, among others. Purina is also committed to sustainable practices and to improving the communities where it operates.

Purina's business model is primarily centered on the production and distribution of pet care products. The company invests heavily in research and development to create innovative, science-based, and nutritionally balanced products that meet the specific needs of pets. Purina markets its products globally through a wide range of channels, including supermarkets, pet specialty stores, veterinary clinics, online marketplaces, and its own direct-to-consumer platform. The company also collaborates with animal welfare organizations and supports various pet-related events and initiatives to enhance its brand visibility and customer engagement.

Concerning its revenue model, Purina generates income primarily through the sale of its pet care products. The company's diverse product portfolio allows it to cater to a wide range of customer needs and preferences, thereby ensuring a steady stream of revenue. In addition to product sales, Purina also generates revenue through partnerships and collaborations with other businesses in the pet care industry. Furthermore, the company's direct-to-consumer platform provides an additional revenue stream by offering subscriptions and personalized pet care services. Purina's commitment to quality and innovation, coupled with its wide distribution network and strong brand recognition, ensures a robust and sustainable revenue model.

https://www.purina.com/

Headquater: St. Louis, Missouri, US

Foundations date: 1894

Company Type: Subsidiary

Sector: Consumer Goods

Category: Food & Beverages

Digital Maturity: Beginner


Purina’s Related Competitors



Purina’s Business Model Canvas


Purina’s Key Partners
  • Investors
  • Brands (Purina one, Purina Pro Plan, Dog Chow, Beneful), Flea and tick products (Certifect, ProMeris, and Ovitrol)
  • Suppliers of agricultural raw materials
  • Independent Feed Manufacturers
  • Cat Litter Partners
  • Veterinary diagnostic laboratories
  • Nestle group
  • Promoter (often with access to veterinary clinics)
  • VALENTINE'S DAY Pets at Work Event
Purina’s Key Activities
  • Research and development
  • Product formulation
  • Quality control testing
  • Ingredient sourcing
  • Manufacturing processes
  • Nutritional analysis
  • Marketing and advertising
  • Customer support
  • Distribution and logistics
  • Sustainability initiatives
  • Partnerships with veterinarians
  • Pet health education
Purina’s Key Resources
  • Brands awareness
  • 4 principals brands in pet care industry
  • Scientific research
  • Nutrition expertise
  • Employee expertise and time
  • Manufacturing plants
  • Facilities
  • Supply chain
  • Quality systems
  • IoT
  • Data from its pets initiative
Purina’s Value Propositions
  • Nestlé Purina PetCare offers a wide range of dry and wet food + snacks + biscuits
  • High-quality ingredients
  • Balanced nutrition
  • Veterinarian-recommended products
  • Range of specialized formulas
  • Commitment to pet health
  • Innovation in pet food
  • Extensive research and development
  • Trusted brand reputation
  • Grain-free options
  • Customizable pet diets
  • Healthy and tasty treats
  • Comprehensive pet care solutions
Purina’s Customer Relationships
  • Five Principles of Responsibility (Quality, Safety and Nutrition - The fact+Fiction - Labeling promises)
  • Leaders in Pet Nutrition - The Purina Story and Animal Welfare
  • Reviews
  • Contests
Purina’s Customer Segments
  • Different Pets owners
  • Animal owners with issues like aging and illness
Purina’s Channels
  • Purina has traditionally been an "old economy" company that has used the power of the mass media to build its brands
  • Website
  • Social networks
  • Veterinarians
  • The Purina Petcare Advice Centre is a telephone hotline set up in the UK to offer free advice to pet owners and potential pet owners
  • Chat assistance
Purina’s Cost Structure
  • Advertising
  • Research and product development
  • Logistics
  • Operations
  • Compensation
  • Marketing
  • Distribution
  • Facilities
  • Billing and collection
  • Taxes
Purina’s Revenue Streams
  • Sales of products
  • Royalties

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Purina’s Revenue Model


Purina makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Agribusiness
  • Supply chain
  • Direct selling
  • Make and distribute
  • eCommerce
  • Customer loyalty
  • Customer relationship
  • Product innovation
  • Mobile first behavior
  • Licensing
  • Experience selling
  • Digital transformation
  • Brands consortium
  • Add-on
  • Bundling
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Purina’s Case Study


Purina's CASE STUDY

At Purina, our journey dates back to 1894. Over 125 years later, we've evolved from a nascent brand into a globally recognized leader in the pet care industry. Our deep heritage, commitment to quality, and customer-centered innovations have been pivotal as we've navigated this extraordinary journey. In this case study, we dive into what makes Purina unique, explore our historical milestones, and dissect our business strategies that have made us a standout player in the pet care industry.

The Historical Milestones That Define Us

Originating as a malting business, Purina quickly transitioned to animal feed in the late 19th century. It was a bold move that laid the groundwork for what was to come. By the 1920s, Purina was already pioneering nutritional research, distinguishing itself from competitors. Our groundwork in scientific approach saw its zenith when in 2001, we became a subsidiary of Nestlé. This integration coupled with Nestlé's extensive resources significantly amplified our capabilities, particularly in R&D and global distribution.

Commitment to Innovation: The Cornerstone of Our Success

Purina's devotion to innovation is one of the critical elements that make us special. Our St. Joseph Research Center spends over $40 million annually on research and development (Nestlé Annual Report, 2022). This heavy investment underscores why our products are known for their nutritional balance and quality. We have brought foods tailored to every stage of a pet’s life, from Purina ONE for young, energetic pups to Pro Plan tailored for senior pets. Our consistent focus on next-gen pet care has forged strong, trust-based relationships with pet owners globally. Experts observe—like Dr. Katy Nelson, a well-respected veterinarian—that “Purina stands out for its scientific rigor in pet nutrition.” Her statement is far from hyperbole; a sentiment echoed by thousands of veterinarians who recommend our products daily.

Our Business Model: Navigating E-commerce and Direct-to-Consumer Sales

While most companies had to undergo a digital transformation in the wake of the COVID-19 pandemic, we were already gearing ourselves toward this evolution. For us, it wasn't just about staying relevant but being anticipatory. Our eCommerce sales now account for a significant portion of our revenue, thanks to our comprehensive direct-to-consumer (D2C) platform which offers not just products but subscription services and personalized pet care guidance. In 2022, ecommerce accounted for about 28 percent of our total revenue, a figure projected to grow by 15 percent annually for the next five years (Statista, 2023). This shift isn't just helping us capture a more extensive market share but also enriches our relationship with customers, allowing for deeper trust and loyalty.

Sustainability: More Than Just a Buzzword

Our commitment to sustainability is not just another bullet point in our corporate responsibility report. It influences every facet of our business, from ingredient sourcing to packaging. We aim to achieve 100 percent recyclable or reusable packaging by 2025 (Nestlé's Purina 2022 Sustainability Report). This ecological approach ensures that we are as responsible to the environment as we are to the pets who consume our products. Among industry peers, Purina has consistently ranked in the top tier when it comes to sustainable practices. Our Chesterfield manufacturing plant, for instance, operates using 100 percent renewable energy, setting a benchmark in energy-efficient production in the pet care sector.

Value Propositions and Customer Loyalty: A Symbiotic Relationship

Our value proposition extends beyond the immediate functionality and quality of our products. Purina emphasizes the emotive facets of pet care, such as wellness and the therapeutic bond between pets and their owners. This emotional commitment is integral to fostering customer loyalty. We are devoted to creating not only functional products but also solutions that promote pet wellness, happiness, and owner satisfaction. To strengthen this bond, we collaborate with animal welfare organizations and support various pet-related communities and events. Our Valentine's Day Pets at Work initiative, for instance, not only promotes pet-friendly workplaces but also aligns our brand closely with positive pet owner experiences.

Targeted Marketing and Brand Recognition

One of our sophisticated strategies is our targeted marketing approach. Purina utilizes advanced data analytics to understand pet owners' demographics, preferences, and spending habits. This data-driven mindset helps us create tailored marketing campaigns that resonate with specific segments of pet owners. As a result, our flagship brands like Purina ONE and Pro Plan consistently perform well in retail environments and enjoy a robust presence in online marketplaces. Moreover, we maintain strong visibility through partnerships with veterinary clinics, where our science-backed pet food and medical-grade treats are readily available. Such partnerships lend the credence of veterinary endorsement to our products, significantly enhancing our brand credibility.

Challenges and Path Forward

While the road to success has had its challenges, the robust framework we’ve built makes us well-equipped to face future uncertainties. Supply chain disruptions and evolving market dynamics are areas that demand continuous attention and agility. However, with our strong foundation, R&D prowess, and committed customer base, we are confident in our capacity to adapt and thrive. Reflecting on Purina's journey, it's evident that our legacy is built on a combination of tradition, innovation, and a relentless focus on the well-being of pets and their owners. As we look to the future, we are not just aiming to maintain our market presence but to redefine the standards of pet care globally. Our story is one of passionate dedication and a testament to how the right mix of history, innovation, sustainability, and customer focus can create an emblematic brand in the modern business landscape.


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