The results helped us decide on these strategic changes: 1) eliminate argue breed dog inventory (only sell small breed dogs), 2) develop new products (pet gift baskets), and 3) add delivery services. Our competitors carry a wide variety of pets, such as large and small breed dogs, cats, birds, fish, reptiles, and rodents. The four major differences between Pet Market and the competition are that the competition does not: 1) deliver pets or pet products, 2) create personalized gift baskets, 3) offer personalized internet sales, and 4) provide a full 30-day money-back guarantee for products and services.
The target market for Pet Market’s brand new products and services are within a 100- ill radius of any one of our three store locations, in both Missouri and Illinois. We plan to market products and services to our target market groups via various mass marketing, personal selling, and direct mailing techniques. While making a profit, Pet Market will continue to provide quality and value to its customers. Additionally, customers can shop at Pet Market for products and services not offered by other retailers. Therefore, we can charge higher prices for these products and services until our competition enters the market.
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Once the competition enters the market, our contingency plans includes adding stores, enhancing Pet Gift Baskets, creating a new pet food line, and broadening our product line to increase variety of small breed dogs. Analysis of Current Situation Market Situation. Today’s pet industry is doing very well. Major retailers are experiencing consistent growth through demand for dogs and basic supplies. According to CBS Market Watch, “Petcock expects same-store sales growth to exceed the high end of previous projections of 5 to 6 percent. CBS also reported that according to Pet Age, “In 2004, Americans will spend about $34 billion on pets, and dog supplies and accessories are the highest growth category. Industry sales have continually increased each year. The Oakland Press reported, “Ten years ago sales were $17 billion. ” The report further stated, “In 2003, pet sales were led by food with $13. 7 billion followed by vet care with $7. 9 billion, supplies and medicine for $7. 2 billion, animal purchases for $1. 5 billion and other services such as grooming and boarding tort S I n ” The pet store industry leaders are San Diego-based Pee and Phoenix-based Pederast.
A recent American Pet Products Manufacturers’ Association (PUMA) survey (www. Biz. Yahoo. Com), “estimates approximately 64. Million U. S. Households (62% of all households) currently own a pet, with approximately 46% of these households owning more than one pet. The most popular pets are dogs (39% of all households) and cats (34% of all households). The above survey estimates that there are approximately 378 million pets in the United States. ” Pet Market has been a specialty retailer of large and small breed dogs, premium pet food, supplies, and services for the last 10 years.
We operate three conveniently located stores in the SST. Louis area: 1) South County Schmucks Plaza, 2) Chesterfield Commons Shopping Center, and 3) Shoppe at Cross Keys in North County. To meet changing customer demand, the company has decided to discontinue selling large breed dogs, add delivery services, and offer three levels of personalized gift baskets that contain pet essentials. Adding new products and services to the existing product base serves to keep the company focused on initiatives that engage customers and our dedication to excellence in associate training and animal care continue to be unsurpassed.
Changes in the external environment called for Pet Market to develop a new marketing strategy. Over a one-year period, the company experienced a noticeable sales decline for large breed dogs, compared with an increase in sales for small breeds. Pet Market’s current products include pet food, supplies, grooming products, toys, and vitamins. Current services include “Doggie Day Spa,” canine education (obedience training), and limited veterinary services (routine vaccinations). The company combines pet and merchandise selection and everyday low prices with the location and customer service typically found in neighborhood pet supply stores.
Pet Market’s new primary product and service combination is to sell and deliver small reed dogs with a personalized gift basket containing pet essentials, to the new pet owner. With every sale, customers will receive the full 30-day money-back guarantee that the company has offered customers since opening in 1994. Competitive Situation. Many successful pet stores carry a wide variety of pets, such as large and small breed dogs, cats, birds, fish, reptiles, and rodents. These stores also carry supply items, including pet food, carriers, toys, and nutrition items.
The four major differences between Pet Market and the competition are that the competition does not: 1) deliver pets or pet products, 2) create personalized gift assets, 3) offer personalized internet sales, and 4) provide a full 30-day money-back guarantee for products and services. New Product Description. Pet Market will sell two categories of small breed dogs: 1) mixed variety, and 2) AKA registered. Generally, small breed dogs will weigh 10 to 15 pounds at full size. The age of the dog will vary, but the youngest age will be eight weeks.
Only the following AKA registered breeds will be offered: Maltese, Miniature Dachshund, Chihuahua, Miniature and Toy Poodle, Yorkshire Terrier (Yorker), Jack Russell Terrier, Miniature Pinscher, and Shih Thus. Pet Market will collaborate with the SST. Louis Humane Society and the Adopt-A-Pet Association to offer mixed breed dogs at $65 each. Pet Market will collaborate with local specialty breeders to offer AKA registered dogs at $450 each. Sales price includes a required initial vaccination for all dogs.