The Congress reconvened for the afternoon session which dealt with marketing and the future of retail in the South African veterinary industry together with discussions on growing a veterinary practice in the current economic climate.
Gregory Watine, CEO of Royal Canin provided valuable data on the Pet Food Market in South Africa. He pointed out that for 58% of vet clinics, retail constitutes more than 40% of their revenues. The pet population in South Africa has approximately 7 million dogs and 1.5 million cats with only 18% of households in South Africa owning a dog and spending on average R110 per month. The South African Pet Food market is emerging with pet ownership expected to increase with GDP per capita. There is a great opportunity for the veterinary profession to accelerate the market potential.

Gregory provided an analysis of the South African Pet food Market Specifics showing supermarkets currently having a 65% share of the market with Vet/Breeders holding 25% and Co-ops/POS standing at 10%. Currently there are approximately 700 Vet Clinics, 150 Vet Shops and plus/minus 250 pet shops. Standard/Eco pet foods account for 70% of the total value market share, Premium, 15% and Nutritional Health, 15%. For the first time in 2008, grocery grew faster than specialised trade – 27% in grocery vs 17% in SPT. An interesting statistic showed that certain standard brands such as Pedigree and Purina One showed a greater retail price increase in 2008 than a premium brand such as Vets Choice. The specialised trade will need to change as Vets Petfood Retail relies for 50% on Premium products but the premium product market is at risk with the vets average mark up being 35% and distribution costs, 15% whereas Grocery has a retail mark up of 17% and distribution costs of 6%. Gregory stressed the key success factor was differentiation in products – the right precise nutritional answer for the specific nutritional requirements of each dog and cat. Differentiation in Service: Advice, Expertise, Merchandising

CLICK HERE TO VIEW GREGORY WATINE'S PRESENTATION - 1 MB download

Eric graduated from the University of KZN with a BComm majoring in Marketing, Business Finance and Business Administration.

Eric stressed the importance of approaching the market in an authentic manner, winning over customers and in so doing, establishing an enduring professional practice that not only delights customers, gives the veterinarian satisfaction through the work that he/she does and also supports a professional practice which provides a good standard of living.

Businesses are able to construct and shape the offering that they take to market in a manner in which they not only design it so that it delights their customers, but also offers better value and intrinsic benefits compared to their competitors. The veterinary journey Eric took delegates on explored key elements supporting the development of a great veterinary practice with the promise of sustainable and repeatable profits.

Highlights included : Location, location, location: If you’re not visible, you’re invisible – branding and signage; “Shopping experience or Shocking Experience”; Employ Attitude and Train Skills; Optimise Customer Touch Points; Customer Management; The power of Electronic Data bases; Involvement in the local community.

Dr Larry van Niekerk, Chairman, IVPD thanked the speakers, sponsors and attending delegates. He paid special tribute to Nedbank for once again providing superb venues and catering, Merial as one of the major financial sponsors and Royal Canin for assisting with event management of the three Congresses. The IVPD continues to grow and to strive to bring new ideas to the veterinary industry in South Africa. Dr van Niekerk emphasized the threat of non-vet pet retailers questioning the veterinarian’s right to exclusivity to certain ranges which the veterinary industry in South Africa could well lose if practices did not work closely with their suppliers at all levels. The supplier has the right to supply whom they choose and only if veterinarians make a concerted effort as hospitals and retailers to ensure the customer chooses them as the “First Choice Pet Care Partner” will suppliers continue to support veterinarians as opposed to non-vet pet retailers.