Words: 1436
Today, Ply’s portfolio ranges from retail stores to day care services as indicated in the table below. Being a strong advocate of responsible pet ownerships, it had developed a financial scheme to incentive Singapore to adopt a pet. In 2009 PL has further upped its Corporate Social Responsibility ante forming Pet Lovers Foundation, serving “Pets, People and our Planet’. 19 Weakness emitted network establishment Iodated, PL overseas expansion is limited to its venture in Malaysia in 2003 and subsequently 10 years later in Thailand in 2013.
China’s pet population has grown by a remarkable 20% in five years, to 291 in 200420 Today, China has become the third-largest pet market in the world, after the U. S. And Brazil, according to Remuneration, and is home to 27 million dogs and 11 million cats. 21 For pet ownership, it is estimated that about 7% of households in China now have a dog, and 2% have a cat. This is expected to rise rapidly, boosting the value of the pet care industry by 43% to 13. 5 billion Yuan (32. Billion) over the next five years, according to Remuneration. 22 China pet owners’ spending increase In 2012, Chinese pet owners spent 7. 4 billion Yuan on animal care. Remuneration predicts that figure will rise 64 percent, to 12. 9 billion Yuan, by 2017. 23 Though consumer spending on pet-care products in China is still dwarfed by developed countries, it is growing more than twice as fast than in the U. S. 24 Besides spending on the pets’ essential s, Chinese owners are also splurging on pet accessories, photography and even pet insurance. 25 Established pet retail chain stores ii Judi Pet Store with it’s over 1 00 established bases nationwide had developed their customers’ bases.
Additionally, there is also competition from standalone pet stores, pet grooming centers, hypermarket in China. Rise of internet pet retailing There is the threat from established internet pet retailers in China. For example, Bois which is founded in 2007, focusing on pet related products recently secured a ISSUE million series B financing to expand their pet business in China. Pet industry is widely expected to boom in the next few years with the rocketing pet ownership population.
Geographic Covering approximately 9. 6 million square kilometers, China is the world ‘s second-largest country by land area. China has over 1 60 cities with a population of over one million, including the seven megabits (cities with a population of over 10 million). Key Cities Population Shanghai 20. 208 million Beijing 15. 594 million Sheehan 10. 63 million Cocooning 9. 977 million Human 9. 158 million Source: http:mm. Undermine. Com/china/demographics_profile. HTML As such, establishing store location in these cities will have sufficient human and pet traffic.
Demographic With a population of 1,363. Million in 2014, China is the largest country in the world. Total population is projected to grow to 1 1 million by 2024 – an increase of 3. 4%. 28 Source : http://www. Calligraphist’s. Com/snapshots-china/ The Family Stage adult population is 23% and working Age Empty Nesters (persons aged 40 to 64 years) is 36% and is projected to grow by 6. 8% over the next decade which is primarily Ply’s target market. In 2014 there is an estimated 76,927 thousand households earning between IIS$20,OHO and US$OHIO,OHO pa.
By 2024 it is estimated that there will be 172,653 thousand such households. Average household income is estimated at LOS$13,443 in 2014 and is projected to increase to US$22,237 by 2024. 29 This Will contribute to the pet owners’ ability in spending more on their pets. Cryptographic The explosive growth of middle class has brought tremendous growth and transformation in China. This translated into increase in sophisticated and seasoned shoppers??those able and willing to pay a premium for quality and to consider discretionary goods and not just basic necessities.
With the increase in disposable income, consumers have the ability and are more willing to spend on their pets. Behavioral China’s one-child policy has fanned enthusiasm for pets ownership as a way to provide companionship to only children in young households and to fill empty nests in homes whose children have grown up, as such they are willing to splurge on them. PL Target Market More than 55 years middle class consumers residing in first tier cities who own pets as companions 24 years & above double income couples with no kids residing in first tier cities who treat pets as replacements for children.
Middle class and above consumers who see pets as a symbol of their social status or fashion statement. Marketing Positioning It is recommended to PL to position Itself as ” We provide our customers and their pets with comprehensive value added services at a passionate price” Mode of Entry PL will continue to adopt franchising as the mode of entry as it had developed a tested and proven modular service model system which will enable the potential franchisee to start off with an entry pet specialty shop complemented by home delivery system to a mega store concept “The Pet Safari”.
At the same time, there is a technology transfer procedures to train the franchisee, and provide on-site support to build up the system in the shortest possible time. By adopting the franchising mode, this will provide PL with the flexibility in dealing with China market and a reasonable degree of control and standardization across it international markets. 6. MARKETING MIX Marketing Mix Home Host – China Approach Product Comprehensive range of pet services from food to grooming services which include vet-trained, pet care consultants (BPCS) in store.
Leverage on home country range of pet offerings Standardized Price One competitive price island wide Competitive price to penetrate the market Adaptation place I) Brick & Mortar Store – Retail in high-traffic shopping malls or streets, with an adequate catchments of pet lovers + online store ii) Online store I) Brick & Mortar Store – Retail in high traffic shopping areas in Tier 1 cities with large residential population more than 7 million, with GAP per capita more than RAM 65,000 ii) Online store Standardized Promotion Direct Marketing Public Relations Digital Marketing Sales Promotion public Relations China’s pet industry is in the growing stage, where pet ownership and spending is still on the rise. It will be advantageous for PL to offer comprehensive range of pet products and accessories same as the home country offering. PL can also include their own in house brands ii Burp! As part of the offerings. Lastly PL should continue their approach of having vet trained, pet care consultants (BPCS) in store as a differentiator. Through this standardization approach, it will also enable PL to achieve greater economies of sales.
Price In view of Ply’s need to penetrate into China market and keen local competition, it is recommended to adopt adaptation strategy whereby “passionate” pricing is provided. PL will strive to provide consumers with competitive pricing with value added service of having BPCS in store to assist. Place PL place’s strategy is through direct retail in locations with high traffic shopping malls so that it is more convenient for consumers. In China, PL will adopt this approach and additionally it could continue its approach of leveraging Capitalism Ass’s china network Capitalism Squib. 30 Beside the physical store, it will be further supplemented by PL ‘s online store with home delivery. With e-commerce boom in China, establishing an online store will further bring PL brand and services closer to consumers.
Promotion Strategy For Ply’s marketing promotion mix, we will leverage on the best practices which had been instrumental in creating brand awareness and loyalty for PL. Direct Marketing Very Important pet Parents (PIP) membership program will be used to develop brand loyalty and encourage continued patronage. This consists of members benefit such as discount, birthday perks and loyalty points program. Public Relations (PR) To position PL as an advocate of responsible pet ownership and as a result increasing PL brand credibility, PR will be used to communicate on its current corporate social responsibility initiatives such as Ply’s Pet Lovers Foundation and donations of proceeds from their in-house brands – Trustier ND Burp! ND its desire to continue this commitment in China through the possible tie-ups with the local animal welfare group ii Chinese Animal Protection Network (CAP). Digital Marketing Statistics had shown that Internet had become indispensable part of everyday life, success of e-commerce and the rising boom of mobile APS and APS marketing. 31 As such, Ply’s digital marketing tactics PL website with an online store and PL Apple and Android applications will be used to capitalize on these trends Sales Promotion As consumers are new to PL brand, sales promotion tactics such as opening ales, lucky draw, tie up with merchant partner I. E. Local bank will be implemented to encourage initial and continued purchase.