dog obedience school marketing plan

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Dog Obedience School Marketing PlanCanine Critter College

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Table Of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . 22.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 32.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 42.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 4

2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 62.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 83.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 83.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . 9

4.0 Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . 104.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 104.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . 135.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 135.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 13

1.0 Executive Summary

Canine Critter College (CCC) is a dog obedience school located in Eugene, Ore. Canine Critter College is unique in its approach to dog obedience. Instead of training the dog, CCC works on training the owners on how to train the dog, as well as establish clear lines of communication between the dog and the owner. Establishing clear communication with the dog and understanding the dog's canine physical and social behavior is the most fundamental lessons to learn.

Canine Critter College will leverage this effective strategy to develop long-term satisfied customers. Through their effective training philosophy and customer-centric business approach, Canine Critter College will consistently gain market share.

Canine Critter College is forecasted to reach profitability by month nine and will earn $91,000 in revenues for year three.

2.0 Situation Analysis

Canine Critter College is entering their second year of operation. The training classes have been well received, and marketing is now critical to its continued success and future profitability. Canine Critter College offers a wide range of group and private dog obedience classes. The basic market need is to train owners on ways to communicate with and control their dogs. Canine Critter College will serve two basic market needs. The first is a need of new dog owners who are looking for training for their new dog. This target segment recognizes the value and efficiency of training their pet early on. The value will be recognized over time when less time and effort is required in communicating with the dog.

The other market need comes from people who are having difficulty controlling their dog. Both groups, the proactive pet owners, and the reactive pet owners, will recognize the value of proper training. Canine Critter College's customer centric service offerings will meet these market needs.

Canine Critter College

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2.1 Market Summary

Canine Critter College possess good information about the market and knows a great deal about the common attributes of the most prized and loyal customers. Canine Critter College will leverage this information to better understand who is served, their specific needs, and how Canine Critter College can better accomodate them.

Proactive dog parentsReactive dog parents

Target Markets

Table 2.1: Target Market Forecast

Target Market ForecastPotential Customers Growth 2001 2002 2003 2004 2005 CAGRProactive dog parents 9% 11,125 12,126 13,217 14,407 15,704 9.00%Reactive dog parents 8% 10,254 11,074 11,960 12,917 13,950 8.00%Total 8.52% 21,379 23,200 25,177 27,324 29,654 8.52%

2.1.1 Market Demographics

Geographics

• Our immediate geographic target is the city of Eugene, Ore. with a population of 130,000. • A 20 mile geographic area is in need of Canine Critter College's services. • The target population is estimated at 21,000.

Demographics

• Families and individuals. • Ages 25-50: this segment makes up 53% of the Eugene market according to the Eugene

Chamber of Commerce. • Attended college and perhaps graduate school. • Household income over $40,000. • Recognize the value of training for the pet. • Owns their home valued at over $125,000.


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Profile of the typical resident of Eugene

• 67% have lived in Eugene for more than seven years. • 61% have completed some college. • 27% are managers, professionals, and/or owners of a business. • 53% are married. • 65% have no children living at home. • 58% own their residence.

Behavior factors

• They spend a fair amount of time with their pet. • They view their pet as a member of the nuclear family. • If this is their first pet, it will not be their last.

2.1.2 Market Needs

Canine Critter College is providing its customers with a high-quality service offering of dog obedience training for both human and animal. Canine Critter College offers several different courses. CCC seeks to fulfill the following benefits that are important to customers.

• Selection: CCC offers several different levels of training. • Accessibility: the majority of the group classes occur in the evening, allowing working

people to attend. Private sessions are available at whatever time meets the customer's needs.

• Customer service: the customer will be impressed with the level of attention that they receive.


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2.1.3 Market Trends

The trend for dog obedience is a growing market. Pet owners are becoming increasingly aware of the value of more sophisticated communication techniques between human and canine. People are recognizing that there is a science or methodology to training a dog that is far more efficient and effective then trying to do it yourself.

There is also the trend of dog owners desiring increased or more sophisticated control of their pet. This allows the owner to have the dog in a multitude of situations/environments that they (previous to the training) did not think that they exerted enough control over the animal to subject them to that situation.

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Market Forecast

2.1.4 Market Growth

In 1999, the American dog obedience market reached $25 million dollars. Dog obedience schools are estimated to grow by 10% for the next few years. This growth can be attributed to several factors. The first factor is an appreciation for general control over their animal. As people see dogs and owners that have graduated from obedience school, they are increasingly envious of the level of control that the owners have with little effort expended. Another factor is Americans are working longer and longer hours, while their dogs are at home by themselves. The dog owners desire a way of communicating with the dog so expectations are known and clear signals are always sent. Without this dogs get angry and act out.

Another variable that is contributing to the increase of dog obedience school attendance is the trend of people getting a dog before they have a child. In this situation, the parents want the dog to be well trained so when they do have the child, the dog will remain a seemless and safe member of the family relative to the new child.


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Proactive dog parents Reactive dog parents

Target Market Growth

2.2 SWOT Analysis

The following SWOT analysis captures key strengths and weaknesses within the company and describe the threats facing Canine Critter College.

2.2.1 Strengths

• Strong relationships with breeders and kennels. • A logical, intuitive, proven, psychological based methodology. • High customer loyalty among repeat customers. • A training service that exceeds customer's expectations.

2.2.2 Weaknesses

• Access to capital. • Limited amount of time that can be dedicated to the business. • Limited marketing budget to develop brand awareness.


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2.2.3 Opportunities

• A growing market with a significant percentage of the target market still not aware of Canine Critter College.

• A superior service offering relative to the competition. • A degree of flexibility of service offerings unmatched by competitors.

2.2.4 Threats

• Competition from local trainers that respond to Canine Critter College's superior offerings. • Internet-based training that is perceived by the customer as being equivelant to in-person

training. • A slump in the economy reducing the amount of disposable income people have to spend

on their pets.

2.3 Competition

There are many different competitors in the dog training industry in Eugene. Each one uses their own philosophy for teaching. Some have day classes, others have night classes. Some are large classes, others are individual sessions. Consumers typically choose trainers based on word-of-mouth referrals. They will typically ask dog owning friends what trainers they used and if they would recommend them.

2.4 Services

Canine Critter College provides dog obedience classes for groups as well as individuals. CCC offers three levels of classes:

• Puppy Kindergarten: this class is used to teach dogs basic commands, as well socialization skills with other dogs and humans. This course will have an introductory explanation of proper communication techniques.

• Household Obedience Level 1: the goal of this class is to have all members of the family work with your dog in a positive and consistent manner. The family will be taught to establish a leadership role with the dog. Much of the curriculum uses the American Kennel Club's (AKC) Canine Good Citizen Test. This course will offer an intermediate level of communication techniques.

• Household Obedience Level 2: this class will perfect the standard commands such as sit, down, stay, come, and leash walking. This level will also work on healing. This course will also offer advanced communication techniques.

Canine Critter College courses are all based on a basic idea which can be summed up from a quote from R.D. Shaw, Chief Archaeologist for the Alaska Department of Natural Resources: "If societies are judges by their systems of order, justice, land rights, and family, the kingdom of the wolf is one of the most sophisticated."

With this in mind, the courses are used to establish the human owner's role as the leader of the pack. Unless the owner establishes dominance, the animal will. Dominance is not punishment, dominance is the law of the pack. It is instinctively understood by all dogs. By showing dominance to the dog in a responsible, consistent way, you are setting the dog at ease because he/she knows their place in the pack and are always at ease around you because they know that you are in control and you will protect them.


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The courses will also detail different types of canine social behavior as well as body language providing the customer with insight into ways in which the pet is trying to communicate with.

2.5 Keys to Success

The keys to success are providing a reasonably-priced service that customers value. A customer centric business model is the tool to achieve success. Additionally, Canine Critter College will:

• Generate repeat business. • Receive positive feedback. • Constantly improve the program.

2.6 Critical Issues

Canine Critter College is still in the speculative stages as a dog obedience service provider. Its critical issues are:

• Continue to take a modest fiscal approach, expanding service offerings at a reasonable rate, not for the sale of growing in itself, but because it is economically wise to.

• Continue to build brand awareness which will drive customers to the classes.

3.0 Marketing Strategy

Canine Critter College's strategy will be based on networking and advertising. The networking will take place with the different breeders in the area. CCC will network with many of the local breeders. This will not be difficult as the canine training/breeding community is relatively small and intimate. By forming relationships with the different breeders, the breeders will act as a well-respected referral service for Canine Critter College.

Canine Critter College will also do advertising with the local chapter of the AKC as well as with the Human Society. Both of these organizations are good sources to work with because of their animal-loving clientele.

These will be the initial marketing efforts. After a while word-of-mouth referrals will take over as the most effective marketing mechanism.

Canine Critter College will also use a website as a source of information to market itself. The website will be marketed through two avenues. The first is submissions to search engines. These submissions will allow any person with an Internet connection to type into the search engine a few applicable words and Canine Critter College's website will appear at the top of the list. This will bring traffic to the website from people that would have used the Internet to research the different options in dog obedience school.

The other method of marketing that is also relatively passive is using printed information that refers to the website. These printed materials will be left with some of the breeders as well as at the local Humane Society office.


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3.1 Mission

Canine Critter College's mission is to provide the finest dog training program available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

3.2 Marketing Objectives

1. Maintain positive, steady, growth each session turnover. 2. Experience an increase in new customers who are turned into long-term customers. 3. Realize a growth strategy of at least one class per year.

3.3 Financial Objectives

1. A double digit growth rate for each future year. 2. Reduce the labor hours needed for class preparation. 3. Continue to increase revenue per customer.

3.4 Target Marketing

The market can be broken down into two segments:

• Proactive dog owners (dog owners with young dogs): this segment recognizes the value of obedience training, particularly the efficiency of training at a younger age. This segment is typically well educated, with either an undergraduate degree or a graduate degree. Their household income is greater than $60,000. These people are willing to invest time into the pet now to create ease of control for the rest of the pet's life.

• Reactive dog owners (dog owners with misbehaving dogs): this group of people either has a dog with control issues and just now has decided to do something about it or just received a dog and would like to have more control over the animal. This group of people typically falls into a slightly lower socio-economic class than the proactive dog owners.

3.5 Positioning

Canine Critter College will position itself as a more intuitive, more complete, dog obedience training facility. Eugene dog owners will appreciate the rational, psychological approach to dog obedience training. The customers will value CCC's training of not only the dog but also the owner.

Canine Critter College's positioning will leverage their competitive edge:

• The underlying philosophy that dogs are social creatures and their actions are often predictable and explainable.

• Proper dog obedience is based on clear, consistent communication between the owner and the dog.

By offering a superior service, coupled with a customer centric business model, CCC will excel


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relative to the competition.

3.6 Strategy Pyramids

The single objective is to position Canine Critter College as the premier dog obedience training program in the Eugene area, commanding a majority of the market share within five years. The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building loyalty and referrals.

The message that Canine Critter College will seek to communicate is that CCC offers the most effective, most intuitive training for dogs and their owners. This message will be communicated through a variety of methods. The first method will be through advertising with the local chapter of the AKC, as well as the Humane Society. These two outlets will be particularly effective as many animal owners have contact with at least one of these organizations.

The other method of communicating is through a grass-roots networking campaign with local breeders. Breeders are one of the main sources from which people get their dogs, and is a common source of referrals for the variety of needs that dog owners have.

3.7 Marketing Mix

Canine Critter College's marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.

• Pricing: CCC's pricing scheme is based on a projected hourly rate.

• Distribution: All group services will be offered at CCC's training center. Private classes can be arranged to occur at the place of choice for the customer.

• Advertising and promotion: The bulk of the advertising will be with the AKC and the Humane Society.

• Customer service: Obsessive customer service is the mantra. Canine Critter College's philosophy is whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercly loyal customer base who is extremely vocal to their friends with referrals.

3.8 Marketing Research

During the initial phase of the marketing plan development, several focus groups were held to gain insight into a variety of dog owners. These focus groups provided helpful insight into the decisions and decision making processes of dog owners.

An additional source of dynamic market research is a feedback mechanism based on a suggestion card system. The suggestion card system has several statements that customers are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. CCC will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their commitment to the customer that their suggestions are valued.


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The last source of market research is competitive analysis. Canine Critter College will send people to local competitors to gain information about the schools service offerings.

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Canine Critter College as it relates to the marketing activities. CCC will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates $4,633 will be need in monthly revenue to reach the break-even point.

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Break-even point = where line intersects with 0

Break-even Analysis

Table 4.1: Break-even Analysis

Break-even Analysis:Monthly Units Break-even 15Monthly Sales Break-even $4,633

Assumptions:Average Per-Unit Revenue $300.00Average Per-Unit Variable Cost $3.00Estimated Monthly Fixed Cost $4,587


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4.2 Sales Forecast

The first month will be used to advertise Canine Critter College as well as develop outlines for the different sessions within the classes. This will take a bit of time, but it is something that needs to be done at the outset. There will be no sales activity during the first month. The first group class will occur during the second week of the second month. Also, during the second month, there will be a couple private sessions. From month three on there will be a steady increase of sales as the classes develop more and more participants. Profitability will be reached by month nine.

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Monthly Sales Forecast

Table 4.2: Sales Forecast

Sales ForecastSales 2001 2002 2003Proactive dog parents $21,260 $36,454 $43,122Reactive dog parents $17,646 $30,257 $35,791Total Sales $38,906 $66,711 $78,913

Direct Cost of Sales 2001 2002 2003Proactive dog parents $213 $365 $431Reactive dog parents $176 $303 $358Subtotal Cost of Sales $389 $667 $789


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4.3 Expense Forecast

Marketing expenses are to be budgeted to increase visibility during the forecasted busiest months of CCC.

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Table 4.3: Marketing Expense Budget

Marketing Expense Budget 2001 2002 2003Advertising $1,400 $1,200 $1,200Other $0 $0 $0

------------ ------------ ------------Total Sales and Marketing Expenses $1,400 $1,200 $1,200Percent of Sales 3.60% 1.80% 1.52%Contribution Margin $37,117 $64,844 $76,924Contribution Margin / Sales 95.40% 97.20% 97.48%

5.0 Controls

The purpose of Canine Critter College's marketing plan is to serve as a guide for the organization.

The following areas will be monitored to gauge performance:

• Revenue: monthly and annual. • Expenses: monthly and annual. • Repeat business. • Customer satisfaction.


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5.1 Implementation Milestones

The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.

Table 5.1: Milestones

Milestones PlanMilestone Start Date End Date Budget Manager DepartmentMarketing plan completion 1/1/01 2/1/01 $0 GerryQuarterly advertising campaign 1/1/01 4/1/01 $300 GerryQuarterly advertising campaign 4/1/01 7/1/01 $300 GerryQuarterly advertising campaign 7/1/01 10/1/01 $300 GerryQuarterly advertising campaign 10/1/01 12/31/01 $300 GerryTotals $1,200

5.2 Marketing Organization

Gerry Gestapo, the owner, is responsible for the marketing activities. This is in addition to her other responsibilities. She will depend on other outside resources for ad design.

5.3 Contingency Planning

Difficulties and risks:

• Problems generating visibility. • Difficulty filling up the classes. • Lack of commitment from some of the customers will inhibit their progress as well as

cause separation of progress within the given class.

Worst case risks include:

• Determining the business cannot support itself on an ongoing basis. • A serious problem with a customer's dogs attacking someone and the insurance balking at

coverage.


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Table 4.2 Sales Forecast

Sales Forecast PlanSales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecProactive dog parents $0 $400 $1,000 $1,145 $1,345 $1,545 $2,145 $2,312 $2,654 $2,787 $2,902 $3,025Reactive dog parents $0 $332 $830 $950 $1,116 $1,282 $1,780 $1,919 $2,203 $2,313 $2,409 $2,511Total Sales $0 $732 $1,830 $2,095 $2,461 $2,827 $3,925 $4,231 $4,857 $5,100 $5,311 $5,536

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecProactive dog parents $0 $4 $10 $11 $13 $15 $21 $23 $27 $28 $29 $30Reactive dog parents $0 $3 $8 $10 $11 $13 $18 $19 $22 $23 $24 $25Subtotal Cost of Sales $0 $7 $18 $21 $25 $28 $39 $42 $49 $51 $53 $55

Appendix: Canine Critter College

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Table 4.3 Marketing Expense Budget

Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAdvertising $100 $100 $100 $150 $200 $200 $50 $50 $150 $100 $100 $100Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Sales and Marketing Expenses $100 $100 $100 $150 $200 $200 $50 $50 $150 $100 $100 $100Percent of Sales 0.00% 13.66% 5.46% 7.16% 8.13% 7.07% 1.27% 1.18% 3.09% 1.96% 1.88% 1.81%Contribution Margin ($100) $625 $1,712 $1,924 $2,237 $2,599 $3,836 $4,139 $4,658 $4,949 $5,158 $5,380Contribution Margin / Sales 0.00% 85.34% 93.54% 91.84% 90.87% 91.93% 97.73% 97.82% 95.91% 97.04% 97.12% 97.19%

Appendix: Canine Critter College

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dog obedience school marketing plan

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