Introduction on Pfizer Inc.
Pfizer Inc. focused on animal health products for the U.S. cattle industry, especially cows. The Cow/Calf Division of Pfizer Inc. offers a full range of products to cattle ranchers, including vaccines for both newborn calves and their mothers, medications (for example, dewormers, antidiarrheals). Pfizer positioned its products on the combination of superior science (resulting from its significant R&D efforts) and high-quality production or quality control techniques. Pfizer’s pride in its sophisticated research and development was shown in its new and useful products for the market. The company invests more in research and development than any other animal health company.
Current Market Background
The current market is not doing so well for Pfizer and their customers. The industry faces a situation of overcapacity, which depressed prices, as demand for beef products had declined over the years. In addition, flood of imports resulting from NAFTA regulations worsen the situation.
Market share of beef products had declined from 44 percent in 1970 to 32 percent in 1997, whereas pork and poultry gained share. This was due to several reasons, which are concerns about cholesterol and fat, preparation issues (beef products require cooking and preparation time, which limits consumer selection), and new branded and well recognized products from the poultry and pork industries.
To increase market share, beef quality would have to improve and be better marketed and packaged to meet consumers’ changing lifestyles. Currently only 25 percent of beef cattle meet the criteria or quality assessed based on the U.S. production targets for tenderness, juiciness, flavoring, and marbling (fat) of the cuts of beef.
Abou ...