Is it better to get a new site instead of maintaining a category? I'm stuck.

[HMCOE]

If you had a website "Food for Dogs" and:

1. Food for German shepherds was improving in search traffic & conversions
2. Snack Food for German shepherds had no change and never resulted in conversions but resulted in many leads for #1
3. Food for Poodles was unchanged but improving conversions
4. Here's the kicker... Food Container for Dogs was super high traffic but with no conversions or any activity to other categories

Would you redirect "food container for dogs" to a different site and delete that tab from the original site completely? It's still related but does not offer any $ value or leads to any of the other categories. Just note that we have a different interest in this category that will support the other categories at one time, but not any time soon. We also have a major group on LinkedIN that's grown to thousands of members for the "food container for dogs" category. On top of it all, the "food container for dogs" has been increasing in rank on Google for several keyphrases to positions 2-5 (nationally)

Other important question:

1. Would keeping "food container for dogs" influence the ranking of the other keywords? (by dilution of the site's PR or any other reason?)

[GoodAtMarketing]

I would use google's keyword tool to find searches that have volume. Be sure to check the exact box on the left.

Once you have the terms use seomoz on page report card tool to target 1-2 keywords per page.

In order to rank for all of your keywords you need to earn branded links to your site. There are tons of articles in the seomoz blog which will help you achieve results.

[HMCOE]

How is this related to the question?

[GoodAtMarketing]

Sorry about that I miss read the question completely 

perhaps you can do some A/B testing on the Food Container for Dogs page**.**

The other pages that are converting well, do they look similar? do the offer anything different?

I would test the page to see if the traffic that is coming in is finding what they are looking for.

If you do take down a page you can do a 301 redirect and transfer link juice.