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1 The First Time Moments Campaign for PETCO By: Kristiana Wright Madeline Gregory Blair Breitenstein Kelsey Pearman Erika Rattray Christy Koontz Alli Price Spring 2011

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Washington State University - Advertising Campaign course (ADVER480) Spring 2011

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1

The First Time Moments Campaignfor PETCO

By:Kristiana WrightMadeline GregoryBlair BreitensteinKelsey PearmanErika RattrayChristy KoontzAlli Price

Spring 2011

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Executive Summary- 3Situation Analysis- 4 The Market- 5 Competitive Position- 14 Advertising History- 17 The Consumer- 21 Dealers, Distributors & Brokers- 22 Sales Promotion- 23 SWOT Analysis- 27Campaign Objectives- 28Primary Research- 29Recommended Target Market- 30Selected Emphasis Regions- 36Media Plan- 37 Objectives Media RationaleCost Efficiency Analysis - 38Media Flow Chart - 51Consumer Media Channels - 52Creative Strategy -56Sales Promotions - 65Budget - 72Promotions Flow Chart - 80Appendix -81Citations - 83Contacts - 85

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What is it?

PETCO is a specialty pet food and supply store founded in 1965 headquartered in San Diego, CA. PETCO also specializes in services such as grooming and boarding. The company lacks a brand identity with consumers. We see this campaign as an opportunity to build brand identity for PETCO and differentiate it from competitors such as Walmart and PetSmart.

Who is PETCO’s current customer?

The average PETCO customer is affluent, has a higher income and tends to spend substantial amounts of money on caring for their pets. One large differentiating trend for PETCO is that on average, PETCO receipt totals are higher there than any other pet and supply store, including PetSmart and mass retailers such as Walmart. This shows that once shoppers begin purchasing their pet food and supplies at PETCO, they are unlikely to switch and many of them become lifetime users.

Who is the proposed target audience?

For the purpose of this campaign, we recommend targeting adults 25-34, caucasian, with a college degree and an income of $40,000+. The target demographic may have a child. This demographic was chosen based on high instance of first time pet ownership and a high potential for generating lifetime brand-loyal consumers. It is this demographic where we have identified the most opportunity for growth.

How do we plan to reach them?

Since PETCO lacks brand identity and awareness with consumers, we recommend a heavy emphasis on promotions. Promotions will be directed toward both trade and consumers. Media will be used as well not only to build brand identity as well as drive traffic to stores and to promotional events. Promotions and outdoor media will be focused in our key market cities while TV, Radio and Internet will be distributed nationally.

The BIG Idea!

The foundation of this campaign is “first time moments”. This concept is inspired by the sentiment of first time parenting, just projected onto first time pet owners. We want to convey this “first time feeling” through every part of the campaign and portray PETCO and THE one-stop-shop for every pet owning need from the “first time” throughout a pets life.

Executive Summary

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This report provides a snap shot of what happening in the pet supply and pet food market. While most market analyses analyze a single product or service, this specific analysis will delve into both the pet supply and pet food markets. Within the pet food and supply market there a plethora of products including food-wet and dry varieties- supplies such as bedding and cat litter, toys and an endless amount of leashes, harnesses and collars to name a few. PETCO is a top competi-tor within this market as they offer a wide variety of products within the category. Two distinct segments will be addressed within this report;

1) Pet Food: Including all forms of food as well as treats, biscuits, snacks and beverages. 2) Pet Supplies: The most significant portion of pet supply sales con-sist of cat litter but also includes medicines, leashes and leads, toys, clothing, clean-up items, training aids and many other specialized items for the care of all types of pets.

Situation Analysis

Defining the Market

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SIC code

PETCO Pet Supply Stores Standard Industrial Classification (SIC) Code has the potential to fall several different classifications. The main in-dustries where PETCO competes are pet products, consumer products manufacturers, consumer services, veterinary care, retail, and non-store retail. Since PETCO competes in so many different markets, the SIC code may not be as specific as other companies.

First, PETCO competes in consumer product manufacturing which places it in the classification of 2047 which is dog and cat food. Organi-zations under this category “primarily engage in manufacturing of dog and cat food,” Also similar to this category and another classification that PETCO falls under is 2048 which manufacturers food for other animals.

Next, veterinary services are a market PETCO also competes in. SIC code 0742 classifying veterinary services for animal specialties. PETCO offers veterinary services where they provide vaccinations and a variety of other health care related services. Similar to this, PETCO also offers boarding kennels, and pet grooming which belongs in the SIC 0752, Animal Specialty Services, Except Veterinary.

Finally, PETCO Pet Supply Stores also are placed in SIC 5999 which consists of Miscellaneous Retail Stores, Not Elsewhere Classified which encompasses pet food stores and pet supply stores as well.

Defining the Market

Note: Sales of pet food and supplies, by segment, 2007 and 2009 (Mintel, 2009).

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Market Size and Growth Trends

In 2010 alone, pet supply sales exceeded $10.4 billion and pet food reached $17.7 billion. The pet food and supply category has shown steady growth annually due to rising demand as pet populations rise and increasing prices and has proven to be rela-tively recession proof. Mintel forecasts continued growth at just less than 3% annually in the foreseeable future. The 2007 pet food and supply market was a very telling time as neither the economic unrest or widespread recalls seemed to have a substantial effect on category sales with 2.9% annual growth in 2007 and 3.2% growth in 2008 (Mintel, 2009). Sales were driven up in part by more expensive options, namely premium and organic options becoming more popular as consumers lost some trust in household brands due to contaminated pet food. The economic environment of 2007 did not see a decrease in sales as a whole as consumers did not quit buying food and supplies for their pets. In fact, more than half of pet owners reported cut-ting back on their personal needs before those of their pets (Mintel, 2009). Consumers did how-ever tend to turn to cheaper outlets such as Walmart and Costco Wholesale to save money. This thrifty approach to pet care did take some shoppers away from specialty stores such as PETCO as consumers searched for ways to conserve resources during times of economic unrest.

Note: Sales of pet food and supplies, by segment, 2007 and 2009 (Mintel, 2009)

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Market Forecast

Mintel forecasts substantial growth between now and 2014 as pet populations rise and pet owners increasingly view their pets as fam-ily members. Mintel forecasts the pet food and supply market will grow more than 14% between now and 2014 with forecasted sales well over $31 million in pet food and supplies.

Like previously stated the pet market is a very strong market in the recession and remains resilient. According to Mintel, pet owners have a vested interest in their pets and commit to feeding them the best products and providing them with the best supplies possible. There are four main factors that influence steady growth in the pet market.

1. Specialization: Pet owners are willing to pay a premium price for special pet foods. Pet owners have taken a special interest in organic and natural foods for their pets. 2.Inflation: The inflation in food prices has forced pet food manufacturers to push through price increases and be in novative in tactics to reduce cost such as smaller packages. 3.Recall After Effects: In the spring of 2007, there was a wide-spread recall of pet foods. This recall did not affect the pet food industry as extensively as many thought. In fact, the recalls motivated most pet owners to seek out “safer alternatives” in their pet food, which resulted in spending more on pet foods. 4.Increased emphasis on value: offering the highest qual ity nutrition and convince pet owners they provide this at a reasonable price.

Note: Total U.S. Retail Sales of Pet Food and Supplied, at Current Prices 2004-2014 (Mintel, 2009).

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Pet population is the most prominent driver of pet food and supply sales. According to American Pet Product Association, dogs and cats account for 96% of pet food sales. In the past two years the cat and dog population has risen 4% pointing to a relatively steady increase in demand.

As the U.S. population as a whole ages, house holds with children under 18 decrease. Thus, we have identified the increase in the Hispanic mar-ket as a prominant market driver. Especially they continue to become evermore affluent, they are developing into a promising consumer group.

Note: U.S. Pet Population (Mintel, 2009). Note: Small Animals includes rabbits, hamsters, guinea pigs, ferrets, mice, rats, gerbils, chinchillas, hermit crabs, pot-bellied pigs and hedge-hogs.

Market Drivers

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Types of pets in the household, by presence of children (Mintel, 2009). Base 2,000 adults aged 18+ with internet.

In addition to steady pet population growth, children in the house-hold are a major driver to owning pets. Mintel shows that house-holds with children are 77% more likely than average to own a dog and 37% more likely to own a cat.

Market Drivers Cont’d

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While the pet food and supply industry has relied on the strong connection between pet own-ership and children in the past, as the U.S.’s population as a whole is aging, households with children are decreasing. In 2008 the number of households declined significantly with 69.4% of households not having children. However, Mintel forecasts a 13.9% increase in Hispanic children under 18 between 2009 and 2014. This household growth could have a powerful influence over the pet and food supply market in the next few years. Experion Simmons data indicates Hispanic households are overall less likely to own a pet, Mintel forecasts ownership rates will rise as the U.S. Hispanic population becomes more affluent.

Market Drivers Continued

Number of children under 18 by race in HH (Mintel, 2009)

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There are four leading companies in the pet food and supply category:

Nestle Purina holds a broad line of brands and products including Beneful, ONE and Dog Chow. This company has product offerings across a variety of price points and pet care needs and has proven to be a competitive and successful brand as consumers tend to trust the well-recognized red and white checkerboard logo.

Mars Inc. is a privately held brand. Their core line, Pedigree dog food, has seen recent sales declines and as a result have seen category slip.

Del Monte expanded it’s presence in the pet food category in 2006 when it acquired Meow Mix and Milk-Bone brands. In 2009 the company saw an overall category decline in both cat and dog food. Other lines such as Alley Cat, and Gravy Train saw growth as they have a lower price point. Other lines that also saw growth included Kibbles ‘n Bits Wholesome Medley and Meow Mix Wholesome Goodness which both offer bal-ances natural ingredients.

Proctor & Gamble has two brands that have performed well historically: Eukanuba and Iams. Eukanuba is a premium product available only through specialty stores. Iams is also a premium brand that performs well at supermarket and mass merchant channels. P & G has focused on the premium market which has helped to position them well in the pet food market.

FDMx sales of leading pet food and supplies companies, 2008 and 2009 (Mintel, 2009).

The Market Place

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Pet supplies account for 38% of total pet food and pet sup-plies sales and is the largest segment in the market. Since 2007 dog food and cat food have yielded slightly higher growth in revenue due to consumers seeking premium nutri-tion products which tend to have a higher price point.

The pet food and pet supply market is divided into segments by species and function. From here they are separated into four separate segments; dog food, cat food, food for pets other than dogs and cats, and pet supplies. This research supports the earlier discussion and explanation of the SIC codes.• Dog Food: Includes all foods, treats and biscuits.• Cat Food: Includes all foods, treats and snacks.• Food for pets other than dog and cats: Includes food, snacks and other products for smaller animals.• Pet Supplies: Most significantly consists of cat litter, but also includes medicines, leashes, toys, clothing etc.

These four segments do not compete directly but are related indirectly in the following ways:• Branding: Many of the top brands stretch across both dog foods and cat foods• Nutritional Trends: Natural, balanced diets have spread across both dog and cat food categories.• Budgeting: Priority is placed on superior nutrition but may result in fewer pet supplies purchased as consumers strive to save money.

The market place cont’d.

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America's Pet Owners- Sales of Pet Food and Supplies by segment (Mintel, 2009).

Sales and Forecast of Pet Food and Supplies, by segment, at current prices (Mintel, 2009)

Dog and cat food have seen steady growth since 2004. Pet food other than dog and cat have not per-formed as well. Pet supplies, how-ever, have continued to perform well historically.

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The top competitors and distributors of pet supplies are Walmart, PetSmart, and PETCO. PETCO Pet Supply Stores is the second-largest US retailer of specialty pet supplies behind PetSmart. The company has more than 1,000 stores nationwide with atleast one store in all 50 states and the District of Columbia, making it the only pet store to cover the entire US market. PETCO carries a wide selection of products varying from food to toys, beds, litter, and aquatic supplies. PETCO places a strong emphasis on their brand having something fit for every pet. They also capitalize on their 100% satisfaction guaranteed policy.

Walmart is the world’s largest retailer chain with $405 billion in sales for the end of the fiscal year of January 31, 2010. Walmart has more than 4,000 facilities which include Walmart supercenters, discount stores, Neighborhood Markets and Sam’s Club warehouses (Walmart Fact Sheet, 2010).

In 2009 Walmart was estimated to account for $1.4 billion in sales of pet supplies. However in 2010 Walmart has cut down in its offering of pet supplies due to the “big box” law in some communities within the United States which limits supercenters to 100,000 square feet. According to Mintel, Walmart, along with PetSmart and PETCO are among the most popular retailers who target the primary/occasional buyer of pet supplies.

Pet owners who shop at Walmart seek brand names at affordable prices. These consumers may have a lower household income but does not exclude higher income consumers. Walmart is known for bringing mass quantities at the best value as well as one-stop shopping convince to the consumer.

PETCO differs from Walmart, the leading competitor, in two important ways. PETCO consumers generally have a higher household income compared to Walmart consumers. The second important difference is in products available. PETCO is a specialty store for pets, where everything a pet owner could ever need or want for their pet if offered. In contrast, Walmart is viewed as a mass retailer in food and clothing and only carries the basics in pet supplies with limited selection. While PETCO excels at offering a larger variety of products, their price point is higher than Walmart which is seen by some consumers as undesirable.

Competitive position

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Competitive position cont’d

In 2006, PetSmart sales were nearly $4.2 billion. Since then Walmart has become the top retailer of pet supplies and foods followed by PETCO. PetSmart and PETCO both cater to pets bringing thousands of pet products and supplies in one location to the consumer. PetSmart, like PETCO, has created the identity of your pet being a family member. PetSmart is operating in more than 48 states and has 1,160 stores in the United States. Like PetSmart, PETCO is operating in all 50 states with about 1,000 stores nationwide (“ Facts Sheet-General ”, 2011) . Both PetSmart and PetSmart on-line market offer more 10,500 different products for pets (“PetSmart Fun Facts,” 2010).

PetSmart targets higher end incomes consumers. Income is strongly correlated with which stores the consumer would shop at. PetSmart offers a PetPerks savings card, which consumers can use to receive discounts on pet supplies within the store. Other services in PetSmart stores include boarding, grooming, adoptions, training classes and even veterinary services. PetSmart and PETCO chains are seen and looked at for their expertise in pets and a wide variety of pet supplies and pet foods. PetSmart is most similar to PETCO when comparing the competition. Like PetSmart, PETCO offers PALS saving card for frequent consumers. In addition, PETCO also offers boarding, groom-ing, adoptions, training classes, DNA breed testing, pet medical insurance and veterinary services (“ Facts Sheet- General”, 2011). Like PetSmart, PETCO also has a green living policy to help ensure a safe environment for both our pets and family.

The most important differentiating factor between PETCO and PetSmart is that PETCO shoppers typically leave the store with a higher receipt total that PetSmart shoppers. This shows PETCO has been successful in capturing a highly affluent consumer base which is unlikely to switch to other outlets such as Walmart.

Type PETCO PetSmart Walmart

Beneful Original $12.99/ 7 lbs. $10.99/ 7 lbs. $9.98/7 lbs.

Iams Weight Control

$21.99/ 17.5 lbs. $12.99/ 8 lbs. $38.99/40 lbs.

$17.88/17.5 lbs.

Pedigree Complete Nutrition

$17.24/ 20 lbs. $13.49/ 20 lbs. $18.24/20 lbs.

Iams Premium Protection

$21.99/13.4 lbs. $19.99/13.4 lbs. $18.98/13.4 lbs.

The following charts offer a com-parison of popular pet food and supplies available at Walmart, PETCO and PetSmart. As you will see, PETCO does have a slightly higher price point in most, but not all cases. Walmart tends to be the majority leader in low prices while specialty stores-such as PETCO and PetSmart tend to offer a wider selection.

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Type PETCO PetSmart Walmart

Meow Mix $14.49/17.6 lbs. $11.49/16 lbs. $11.77/17.6 lbs

Purina One Sensitive System

$13.40/7 lbs. $11.99/7 lbs. $10.98/7 lbs.

Iams Proactive Health

$13.99/6.8 lbs. $13.99/6.8 lbs. $12.77/6.8 lbs.

The Good Life $9.99/6 lbs. $8.59/6 lbs. $9.97/6 lbs.

Product PETCO PetSmart Walmart

Scoop Away Cat Litter

$9.37/25 lbs. $9.99/25 lbs. $9.37/25 lbs.

Purina Beggin Strips

$7.99/10 oz. $29.99/40 oz.

$12.99 25 oz. $9.92/25 oz.

Dingo Dental Stick $4.99/6.02 oz. $3.99/6.2 oz. $6.95/3.1 oz.

API Fresh Master Kit

$31.99 $32.29 Not Available

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Size of the Consumer Market: The size of the pet food and supply market consists of about 86 percent of the United States population who own either a cat or dog. This is a very large percentage of the United States population, therefore showing that pet food and supplies are a constant need amongst Americans. Also, about 32 percent of the US population owns another type of animal (fish, bird, reptile, rodent, rab-bit, or ferret) (Mintel Market Drivers, 2009). Purchasing Habits and Usage: In 2009 the estimated sales of pet food and supplies were about 27.5 billion dollars, which is an increase of 2.9 percent over

2008 (Mintel, 2009). Specifically the purchasing habits among pet owners have become more about nutrition trends. “The idea of natural, balanced, diets has spread across both dog and cat food. Specialization is also prevalent in other pet food, where specific varieties exist at the species and even sub-species level” (Mintel America’s Pet Owners). Since the importance of nutrition has increased, pet stores have seen a small decrease in the buying habits of pet supplies like toys. Mintel states that it could be a trade-off that pet owners are willing to spend more money on food rather than buying an unnecessary amount of toys. Older people that own an animal, specifically a dog or cat, will most likely buy weight management food for their pet. This shows that older people most likely have older pets and will provide care for their animal that is similar to their own lifestyle needs.

Younger owners of pets who most likely have children in the house are more likely to feed a healthier choice to their animal, just as they would to their own children (Mintel, 2009).

The Consumer

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All 18-24 25-34 35-44 45-54 55-64 65+

% % % % % % %

HH Owns a Dog

40 48 40 45 46 37 26

HH Owns a Cat

28 32 29 31 31 27 19

HH Owns any Pet

58 63 62 63 65 55 39

Pets by Presence of Children

All %

Children in HH %

No Children in HH %

Dog 44 62 35

Cat 33 41 30

The Consumer Cont’d

All Under $25k

$25k-49.9k

$50k-74.9k

$75k-99.9k

$100k-149.9k

$150k+

% % % % % % %

HH Owns a Dog

40 28 33 44 48 45 50

HH Owns a Cat

28 20 26 30 31 34 30

HH Owns any Pet

58 44 51 62 64 66 66

Today’s PETCO con-sumer is likely to have at least one child in the household.

Pet ownership is rela-tively equal across agegroups. Specific to PETCO, shoppers tend to be older, simply because they have more dispos-able income.

Pet ownership is relative-ly low with consumers whose income is under $40k. Above $40k, in-stance of pet ownership is significantly higher.

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The main reasons for a consumer to own a pet is companionship and security. About 86 percent of dog owners and about 75 percent of cat owners believe that companion-ship is the most important reason for owning a pet in the household.

Reports from Mintel show that the average pet owner would be Cau-casian, between the ages of 45-54, have children, and have a higher income. Children play a large part when owning an animal and it shows that about 63 percent of the US population has one or more children in a household with a pet (Mintel Pet Owners)

Total 18-24 25-34 35-44 45-54 55-64 65+

Adults with internet access who own a

dog

% % % % % %

For Companionship 86 90 83 85 84 85

For Security 48 56 53 47 48 39

Because I have always had one

46 54 43 41 48 45

Other 8 4 6 8 9 7

All %

One or More Children

%

No Children %

HH Owns Pet 58 63 55

HH Owns a Dog

40 44 38

HH Owns a Cat

28 29 28

HH Owns a Cat and Dog

14 17 13

HH Owns a Fish

8 14 5

The Market

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Since most pet owners have pets for companionship and security, they are most likely to purchase food and supplies that best supports their pets health and longevity and look at these purchases as an investment in their pets longevity. When selecting pet food and supplies owners seek quality products just as they do for their own personal purchase needs.

Owning a pet also increases the owner’s quality of life. A study showed, “The most common theme is improved health and well being, and among the many specifics are stress reduction, prevention of depression, lower blood pressure, and reduced risk of heart disease” (Mintel, 2009). Pet owners are aware that they can actually improve their own lifestyle, and have that sense of care and compassion simply by having a pet in the household.

Factors Influencing Brand Selection:Most of the consumers who own a pet are aware that their pet’s nutritional needs change as they age. As said before, older animals will need a weight management diet whereas younger animals will need a diet with a lot of nutrition to support healthy bone, joint and muscle growth. Consumers with a higher income are more likely to buy more expensive food for their animal, whereas lower income buyers are more likely to buy a store brand product to save money.

Attitudes and Knowledge

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Advertising for leading pet supply retailers uses powerful emotion in their advertising campaigns to gain consumer awareness and support. By focusing on the idea that pets are more than animals, but like members of the family, consumers feel the need to provide top care for their pets. The majority of pet owners consider their pet(s) to be part of the family and are thus interested in purchasing products that will guarantee longevity and quality of life. Adver-tising within the industry has both reflected on and created these notions through the use of powerful messages with a strong emotional appeal. Advertising Spending:

Currently, Walmart is the leading pet supply retailer followed by PetSmart and PETCO. Walmart increased advertising spending in 2008 for their pet care products due to sales in pet supplies remaining consistent despite the poor economy.

According to Kantar media, from January through October 2010, PETCO spent $12 million on measured media in the US. In comparison, during the same time period, PetSmart spent $58 million in advertising. In 2011, PETCO is looking to increase spending in advertising and promotions.

PETCOWhen PETCO- originally called UPCO or United Pharmaceutical Compa-ny- opened its first retail store in La Mesa, California in 1976, the company mission and advertising campaign was to provide quality pet and veteri-nary supplies to sell to the public as well as animal professionals at lower discounted prices. In 1995 PETCO became known for also providing pet services such as grooming. That year they also launched a customer loyalty program, PETCO Animal Lovers Save (P.A.L.S).

Despite spending relatively low amounts of money on advertising (compared to other companies) consum-ers reported remembering PETCO’s slogan more than leading companies including one of its top competi-tors, PetSmart (Maquire, 2005). The message behind this campaign is that people shop for themselves at supermarkets, because they are specialized in prod-ucts “for people.” Pets deserve to have products that are specialized for them, at PETCO.

In 2004, PETCO sponsored a brand new ballpark in downtown San Diego which they named PETCO Park. The park has capacity for over 42,000 people, which boosts exposure to PETCO advertising. PETCO launched an advertising creative tagline of “PETCO, where the pets go.” This message was effective at ap-pealing to consumers and helped PETCO become a more recognizable pet supplier.

Advertising History

In 1999, the PETCO Foundation began incorporating charitable giving into their advertising to raise aware-ness and funding by donating to help save millions of abandoned animals. By its 10th year in 2009 the PETCO Foundation had raised nearly $70 million dollars to help more than 7,000 animal welfare part-ners nationwide.

Advertising expenditures:PETCO- $12 millionPetSmart- $58 million

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Dealers/ Distributors/BrokersPet stores and vet offices dominate as the most trusted distribution channels for pet food and supplies. While other channels exist including supermarkets and mass merchandizers such as Costco, consumers tend to prefer channels that can offer convenience, value and expertise. The top five retailers at Walmart, PetSmart, PETCO, Supermarkets, Target and mass merchandizers (in order). In 2010, the combination of these channels brought in more than $8.5 billion.

The leading manufacturers are Nestle Purina, Clorox Company, Hartz Mountain Corp. and Church & Dwight and Co. Inc.

The current sales leader Walmart thrives on offering one of the most valued attributes- low price. Stores like PETCO can leverage their offering of quality, expertise, variety and durability of goods. PETCO stores use 10 distribution houses located across the U.S.

PETCO and PetSmart are different than other retailers because they offer online retail services. And the stores offer perks which other stores are unable to offer, because majority of smaller competitors have fewer stores resulting in less profit. Both of these stores also offer in store services in addition to products. The services include, boarding, grooming, adoptions, vets, training class-es, and a unique experience which is, you can shop with your pet. Also “salad bars” of dog bones offer consumers the opportunity to shop for your dog an alternative way. Petco employees are responsible for unloading products from packages and stocking shelves. Employees restock shelves once a week.

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The primary focus of their products is quality. PETCO states that its brand is the “name you trust and the quality you demand, all for a great value”. PETCO uses a lot of couponing tactics to generate sales and encourage consumers to purchase and try their products. Some other promotions PETCO utilizes to drive brand interactions and purchases are sweepstakes and contests.

PETCO ran a “Once a day $50 Gift Card Giveaway” Sweepstakes. It began November 27th 2009 and ended on December 31, 2009. In this sweepstakes, contestants could enter themselves through email for a chance to win a $50 gift card to use on their favorite PETCO pet supplies. They could enter themselves once a day for 34 days.

PETCO also ran a sweepstakes called “PETCO Sweepstakes” where contestants could answer trivia questions regarding facts about PETCO as a company and if answered correctly they could win a PETCO gift card with a $50 value. This promoted the brand by engaging the contestants as well as integrating trivia facts about PETCO in a fun and interesting way. Another sweepstakes they ran also called “PETCO Sweepstakes” where PETCO shoppers could stop in at any PETCO store and fill out an entry form to win one of 3 Ford Escape hybrids, plus a gas card for a year. By filling out this form contestants could also be up for winning one of over 5,000 $25 or $50 PETCO gift cards. This sweepstakes ran August 24th 2008. PETCO also ran the “I’m home with PETCO” sweep-stakes where contestants could win a $2500 PETCO gift card and a matching donation to their favorite shelter.

Sales Promotion

In regards to promotional packaging, PETCO also utilizes Quick Response codes on their pet supplies to promote interaction as well. They also have printable coupons for their consumers to access on their website and print them off to redeem them and receive sales on their PETCO supplies, products and services.

Another major promotional tactic that PETCO has developed is their PETCO PALS club. This club has a free membership so there is very little risk for their consumers to join. Once consum-ers join they can immediately begin to enjoy the benefits PETCO has to offer. Right away consumers enjoy exclusive offers and rewards as well as are up for customized offers. When consumers shop with their PETCO PALS club they can save money instantly with PALS. The PALS club offers storewide savings on products ranging from supplies and a wide selection of nutritious food to incredible toys and treats. PALS also allows consumers to be invited to exclusive invitations to pet-co friendly events.

PETCO also has many ways on their website to inte-grate their consumers into their products. They have blogs where people can join and meet other pet owners and share stories, advice, and information on products regarding their pets. They also include upcoming events going on that includes pets for their consumers to participate in which further promotes their brand.

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The internet has proven to be a very successful advertising medium for PETCO, raising awareness about the company and boosting sales. The PETCO website, launched in 2000 utilized emailing and helped gain loyal customers by giving special deals, coupons, and pet care information. Keep in mind, in 2000, few compa-nies were truly leveraging the internet to create a online business process and the early adoption of PETCO gave them an edge in a relatively clutter free cyber world.

In the infancy of their online advertising, PETCO offered coupons for PETCO products, free products such as small bags of dog food, and discounts on various merchandise. This helped build a strong customer base and gain purchasing out of the store. To make the website personal, PETCO began an e-mail campaign targeting pet owners by type. Pet own-ers had an option to register information on their pets that allowed PETCO to email recommendations on specific products and information to better support and care for their individual pets (Maguire, 2005)

Using an internet review application from BazzarVoice, in October of 2006, PETCO incorporated an area to post consumer reviews of products and services provided by PETCO on their site. This enabled custom-ers to share their true opinions and thoughts about PETCO products for other customers to see. This helps build trust in the company and at times has proven to be more successful that traditional, company spon-sored advertising.

For the email campaign, PETCO chose six top-rated products for each pet type and included positive re-views on these products and sent them to matching pet-type owners on the mailing list. This helped boost the image the PETCO is indeed “where the pets go” to get quality and personal care. Email recipients could click-through on the message to read the rest of the featured reviews, as well as other reviews of the prod-uct. Vice President of E-Commerce said that emails containing reviews had a 200% higher click through rate (Internet Retailer, 2008).The website currently sells everything from dog clothing to grooming kits and has helped the company rise to one of the country's largest animal and supplies retailers.

In addition, PETCO launched a specialized newsletter with animal care information and excusive offers available on their website. This campaign was especially successful in its early years and currently has al-lowed PETCO to obtain the number three spot for most online purchases for a pet supply retailer (Mintel, 2009).

SALES PROMOTION- Internet

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Social Media: PETCO joined the social media bandwagon and has a Twitter and Facebook account as well as a YouTube channel. These social media sites allow followers to interact and connect with other pet owners, share experiences and recommendations, and get expert advice. In addition, these channels help to create a sense of community between PETCO shoppers.

Television:Television is one of PETCO’s primary mediums. The visuals used in their commercials feature pet owners spoiling their pets and then concluding with the tagline “PETCO . Where the pets go.” In one ad, two pet owners are bathing their dog as they bathe themselves in a bubble bath. An announcer’s voice proclaims. “People shop for people at supermarkets. Pets shop for pets at PETCO.” Through televi-sion ads, an image of loving pet owners caring for their pets is conveyed.

WalmartLeading the market with top sales in pet supplies is Walmart noted for providing brand names at low prices (Mintel, 2009).Walmart ads focus primarily on low prices using “pet food at affordable prices” as its category title and slogan. Their website fea-tures top brand names for the market such as Iams and Purina One at lower prices. However, their Ol-Roy brand which is very cost affordable leads the category with top sales.

PetSmart:Publicis Group created PetSmart’s current tagline- “That’s smart. Pet smart”. Their ads feature a relatively similar message to PETCO that pets deserve quality products. PetSmart’s mission is “we love to see healthy, happy pets” and highlight this state-ment in their ads and frequently throughout their website. The image of PetSmart products and services show just that: healthy, happy pets. PetSmart also uses television, internet, and social networking sites to build brand awareness.

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PetSmart PetSmart is one of PETCO’s biggest competitors because the two companies are so similar. PetSmart utilizes couponing, discounts, and promo codes to drive consumers to pur-chase their products. PetSmart also ran a sweepstakes called the “Science Diet PetFit Challenge” where contestants could enter and have a chance to win $500,000 along with many chances to win gift cards with up to a $100 value. They also ran a sweepstakes called “Super Summer Re-wards Sweepstakes” where consumers could enter to win one of two cars or other prizes.

Costco Costco is a major competitor to PETCO because they sell their products in bulk at a great value. They also have a satisfaction guaranteed policy on their products as well. Costco has a huge variety of products consumers can purchase. Costco offers customers a “one stop” approach. Not only can consumers buy their pet food and supplies at Costco but they can also purchase the groceries, medications and other home items they may need as well. This entices consumers to purchase their supplies there because it is convenient and not nearly as time-con-suming as making several stops at different locations to get the items they need. Costco offers a lot of savings on their products through coupons. They also use a lot of promotional tactics such as sweepstakes and contests. One sweepstakes Costco ran during the holiday season was called “12 Days of Giveaways”. Contestants could win full-HD televisions, cross trainers, luggage sets and much more. Daily instant prizes included items such as GPS systems and Bluetooth head-sets. They could also be up for winning the grand prize of a $1500 Costco gift card.

Walmart Walmart is another major competitor to PETCO because they sell products at very low prices. They place a strong emphasis on selling their products at prices that are affordable to the majority of people. Their pet supplies and pet food is sold at a lower price than other stores. For those consumers who are finance-conscious or simply like to purchase their products for low prices this entices those to become loyal to Walmart. Walmart also utilizes couponing and promo codes as ways for their consumers to redeem and receive savings on all their Walmart products. Walmart also ran a sweepstakes called “$25 Walmart Gift card Sweepstakes” where consumers could enter online and fill out an entry form for a chance to win a $25 gift card to use on Walmart products. Another sweepstakes Walmart ran was called the “Lucky Fan” sweep-stakes. In this sweepstakes contestants could enter and be up for winning a $50 gift card to use on their Walmart purchases.

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Strengths PETCO is a specialty store that of-fers much more than your average supermarket or mass-retailer such as Walmart. At PETCO not only is your pet welcome to shop with you but multiple services are available to you and your pet such as groom-ing, obedience classes, veterinary services and treat bars to make your pets shopping experience enjoyable. The average PETCO shop-per is a fairly affluent one with a relatively high income and educa-tion level. PETCO shoppers tend to spend more at the point of purchase which shows a tendency to utilize services and selection.

Weaknesses PETCO is viewed as expensive and during times of economic depression consumers tend to turn to stores with lower price points such as Walmart. Lack of brand identity. Consumers tend to know of PETCO but don’t choose them as their number one choice for purchasing pet food and supplies. PETCO was founded in 1965 but still comes in 3rd after Walmart and PetSmart.

Opportunities More than half of Ameri-can households own a pet. With children being an indicator for pet ownership and the 15% pro-jected population growth of the 18 and under Hispanic popula-tion in the next few years there is a strong opportunity for this market to be captured. In addition, the Hispanic population as a whole is more willing to pay the higher price of premium, organic food products and are also more likely to spoil their pets with toys, treats and luxury bedding items. Due to the 2007 recalls people are turning more to natural, organic and premium options and a brand/service they can trust. PETCO meets all of these criteria where many of their competitors do not. Despite the economic downturn, pet food and supply sales continue to flourish. In fact, according to Mintel, some people may even be driven to acquire a pet or become closer with their existing pet to help relieve stress.

Threats Many consumers want to be able to shop at a special-ty store but either can’t afford it or need the convenient a supermarket or mass retailer offers. American households with children in home are on the decline.

SWOT

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CAMPAIGN OBJECTIVES

-Launch a comprehensive consumer and trade compaign to adress the challenges PETCO currently faces

-Target men and women ages 24-35 years old with an emphasis on first time pet owners

-Drove consumers to PETCO store for the purchase of pet food and supplies over mass retailers

-Position PETCO as a company completely unique to it’s category-expertise and trust of a lifetime

-Generate consumer interest and trust around PETCO

-Stay within a budget of $9.6 million

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To help develop the PETCO campaign and identify an overall objective and theme, we conducted primary research using an online survey. The survey was distributed to adults between the ages of 25-34 and asked questions regarding shopping preferences and media habits. We also asked questions about what they look for in a frequent shopper program to help enhance the existing PETCO Pals program. 137 respondents participated in the online survey.

The survey revealed several insights about peoples purchase preferences regarding pet food and supplies. Costco was the leading an-swer for the preferred/frequent place of purchase for both pet food and supplies. Walmart came in second followed by supermarkets for pet food and PetSmart and PETCO for the purchase of pet supplies.

Respondents reported price and quality as being the two most important factor when shopping for pet food and supplies. This is parallel to the data we found on Mintel which stated consumers are in a constant struggle nowadays to not sacrifice quality for price. When asked what perks respondents would like to see in a frequent shopper program the most common answer was discounts for frequent shoppers and coupons tailored to the products they purchase. Overall, customers want to be rewarded for their loyalty which is important in today’s highly competitive market.

Other significant findings included: -Internet reported as the most frequently used media followed by television and radio. -Respondents reported being more likely to trust information about a product provided by an actual user rather than information distributed directly from a company. -Less than half of respondents reported interest in a free-online nutritional consult. -Respondents reported they would feel swayed to shop at a store they knew was participating in charitable causes for homeless pets over a retail channel that was not.

“ I want coupons and discounts tailored towards my pur-chase preferences.” -Survey respondent

PRIMARY RESEARCH

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Recommended target:Through a national campaign, PETCO will target consumers as well as more niche groups such as breeders and veterinarians through various media channels and promotional activities. Through exten-sive primary and secondary research, we have developed a specific recommended target audience for your consideration.

The recommended primary consumer is white, married adults be-tween the ages of 25-34 with at least a four year college degree and an income of $40,000 or above. This consumer is likely to be at the point in their life where they are looking to start a family.

This demographic is unlike today’s PETCO shopper for several rea-sons. Today’s PETCO shopper typically has a higher income, is older and shops at PETCO because they seek higher end items for their pet, not unlike their personal purchase preferences. Instead of focusing this campaign on attracting more of the same consumers, we recom-mend a different approach.

The following table illustrates instance of pet ownership by age group. As you can see, pet ownership is well performing well through mid-life and only decreases around the age of 60+. For the purpose of this campaign, however, we recom-mend targeting the younger demographic to capture first time pet owners who may be more willing to shop at a store offer-ing expertise and who also have a higher potential to become loyal PETCO shoppers.

Age Horiz% Vert% Index

22-24 2.19 41.2 77

25-29 8.49 61.5 115

30-34 10.9 55 103

35-39 9.68 61.2 114

40-44 10.3 59.2 110

The younger demographic we suggest is promising for several reasons. First, this audience is likely to capture many first time pet owners. First time pet owners tend to spend more money on food and supplies to ensure they are taking good care of their new companion and are more likely to splurge on luxury items such as toys and vanity goods such as rhinestone accessories. Next, while this demographic does not have a large income at this point in their lives, since most of our target audi-ence has a college education, that their income will increase over time making them a valuable asset to the PETCO consumer base. In addi-tion, capturing this demographic before they have developed loyalty to another pet food and supply outlet will help to generate lifetime users.

Target Audience

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Pet ownership between females and males is relatively equal. Thus, it is important to target both males and females. It is worth noting, however, that females do have slightly stronger numbers and tend to do more of the household shopping than men so a slight skew towards females might be desirable.

Whites have the highest instance of pet ownership. That is not to say that other races do not own pets. In fact, with the projected population growth of Hispanic children under the age of 18 at 15% between now and 2014, they are an important group to keep in mind throughout the campaign.

Gender Total <000>

<000> Horz % Vert % Index

Male 47,509 24,124 39.3 50.8 95

Female 66,898 37,237 60.7 55.7 104

Race Total <000> <000> Horiz % Vert % Index

White 61,360 52,618 85.8 59 110

Black or African

American

61,360 3,965 6.46 29.2 54

Asian 61,360 1,111 1.81 27.8 52

Some Other 61,360 3,666 5.97 50.7 95

Not White or Black

61,360 4,776 7.78 42.6 79

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While people across all income levels own pets, we do not begin to see consistently well performing numbers until 40k and above. We recom-mend targeting this demographic as they might have more disposable income than lower income groups and be willing to spend their money providing for and even pampering their pet.

Education Total <000> <000> Vert % Horiz % Index

Graduate Degree 10,876 3,108 15.7 28.6 161

Graduated College or more

30,032 7,953 40.1 26.5 149

4 Year Degree 15,728 3,992 20.1 25.4 143

Attended Grad. School No Degree

3,428 853 4.3 24.9 140

2 Year Degree 13,419 2,440 12.3 18.2 103

Attended College 1-3 Years

32,920 5,401 27.2 16.4 93

Attended College Less than 1 Year

25,941 4,266 21.5 16.4 93

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Education is an influential factor in pet ownership. As you can see in the chart below, the more educated a person is, the more likely it is that they will have a pet. We recommend targeting those with a 4 year de-gree. Although having a graduate degree has a higher index number, it represents a much smaller segment of the population as a whole. In addition, there is high correlation between education and income. Since PETCO has a slightly higher price point, it is impor-tant to market to those with a higher level of dispos-able income.

HH Income Total <000>

<000> Horiz % Vert % Index

20,000-24,999 6,282 3,222 5.25 51.3 96

25,000-29,999 6,561 2,899 4.72 44.2 82

30,000-34,999 5,647 2,357 3.84 41.7 78

35,000-39,999 5,950 2,793 4.55 46.9 88

40,000-44,999 5,509 3,053 4.98 55.4 103

45,000-49,999 4,723 2,484 4.05 52.6 98

50,000-59,999 9,229 4,912 8.01 53.2 99

60,000-74,999 11,166 6,533 10.6 58.5 109

75,000-99,999 13,832 8,351 13.6 60.4 113

150,000-249,999 7,751 5,081 8.28 65.6 122

250,000-499,999 2,551 1,625 2.65 63.7 119

Married people are more likely to own a pet than any other marital status reported. Not only are married people more likely to live in a place where they can own pets, they are likely looking to start a family and a pet can be perfect practice for tak-ing care of a family. Since children are a driver for owning a pet, if the couple already has children it makes them even more appealing.

Marital Status

Total <000> <000> Horiz% Vert% Index

Presently Married

55,378 34,051 55.5 61.5 115

Widowed 11,676 4,374 7.13 37.5 70

Divorced 17,300 8,827 14.4 50.9 95

Separated 3,388 1,676 2.73 49.5 92

Never Married

26,635 12,432 20.3 46.7 87

Not Married 59,029 27,309 44.5 46.3 86

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Through secondary research, we derived 8 Pet Loving Cities which we have identified as key market areas for the PETCO campaign. These cities were chosen based on Simmons Choices 3 data indicat-ing high instance of pet ownership by region, as well as consider-ation for high population and being considered pet friendly by it’s residents. As illustrated by the chart below, the regions with the highest instance of pet ownership are the mid-west, the south and the west.

Geographies Total <000> <000> Horiz % Vert % Index

North-East 11,914 1,766 14.8 8.48 81

Mid-West 11,914 2,832 23.8 10.9 105

South 11,914 4,633 38.9 10.8 103

West 11,914 2,683 22.5 10.9 105

Within these regions, we have identified 8 cities within 5 states to serve as key markets during the PETCO cam-paign for use as test markets and focal points for out-door advertisements and promotional events.

These include:

· Portland, OR

· Los Angeles and Long Beach, CA

· Chicago, IL

· Austin and Houston, TX

· Jacksonville and Orlando, FL

· Los Angeles, CA 46.5%

· Long Beach, CA 35.8%

· Austin, TX 30.5%

· Houston, TX 37.4%

SUMMARY: The demographic we have outlined above has the greatest growth po-tential for PETCO. These consumers have not developed loyalty towards a specific retail outlet, are likely seeking quality goods for their first time pets and as a result are a very promising group for PETCO to market towards.

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It is important at this time to mention the presence of Hispanic population in these key market areas. Accord-ing to the 2010 census, there is substantial presence of the Hispanic population in 4 of our key market areas (2010 Census).

The Hispanic market is important to consider in key market cities as the projected growth within the Hispanic market for children under the age of 18 is 15% of the popu-lation between now and 2010 (Mintel, 2009). In these areas we will be conscious of spillover to the Hispanic population when choosing recommended media and pro-motional activities.

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Selected Emphasis Regions

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Media Objectives

• Stay within a budget of $4 million.• Leverage media and sales promotion to reach adults 25-34. • Reach niche markets including trade, pet friendly cities and areas with high Hispanic population. •Reach recommended consumer target audience using cable TV, radio, internet and outdoor. •Use trade magazines to reach breeders and veterinarians to establish PETCO as a quality retailer to recommend to first time pet owners. •Build brand identity and differentiate from mass retailers such as Walmart using quality and expertise.

Media Rationale We recommend selecting media based on cost efficiency and having high appeal to our target au-dience. In addition, it is important to be conscious of spillover to the Hispanic population as they will be an important up-and-coming consumer base.

Media Plan

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Radio

Our research shows that radio ranks very high among our target audi-ence. With an index number of 116 in Quintile I, Radio is ideal to reach our target audience effectively. Based on our recommended target cities, we have choosen the top radio stations in those areas to increase media coverage.

Chicago, another chosen target market for media emphasis, we have chosen WVAZ-FM which serves a primary target audience of women 25-54 with a format of Urban Adult Con-temporary.

In Austin, we have selected KASE-FM which hosts a Country format and primarily targets persons 25-54. In Portland, we have selected KXJJ-FM which also hosts a Country format and primarily targets person 18-54. Another station we have selected KINK-FM which provides an Album Adult Alternative format with a primary target audience of person 25-54. KRSK-FM is the final station we have selected in Portland. KRSK hosts a Hot Adult Contemporary format with a primary target audience of persons 25-34. In the Houston-Galveston area, we have chosen KODA-FM, which similar to the other stations host an Adult Contempo-rary format with a primary target audience of persons 25-54. Finally, in Jacksonville, we have chosen WQIK-FM which hosts a Country format with a primary audience of persons 25-54. Each recommended radio station is chosen to effectively reach our target audience. In consideration of the stations target audience and the format, Country, Contemporary Hits, and Adult Contemporary are the best formats for our audience.

Radio Total <000>

<000> Vert %

Horiz %

Index

Quintile I

20,411 2,276 21.2 11.2 116

Quintile II

21,360 2,638 24.6 12.3 129

Quintile III

20,045 2,198 20.5 11 114

Quintile IV

19,932 2,312 21.6 11.6 121

Quintile V

26,290 1,755 16.4 6.68 70

Los Angles, which is one of our chosen target areas for added me-diaemphasis, we have chosen KIIS-FM and KKGO-FM. KIIS-FM’s provides a format of contemporary hits and serves a primary target market is women 18-49 with a secondary target of persons 18-49. KIIS’s target audience is ideal to the target audience we recommend. KKGO-FM is out other selected station in Los Angeles which pro-vides a country format. KKGO serves a primary audience of persons 18-49 and a secondary target of persons 25-54. Both stations offer us the ideal target audience and format to effectively reach our market. (SRDS)

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Television

Research has shows that our target audience of adults ages 25 to 34 are heavy viewers of prime time television. Realistically, prime time network buys are not conducive to our campaign due to exceptionally high spot costs. But Cable TV is very ideal. Through a cost efficiency approach, we recommend the follow-ing for television. We recommend running our spots on E!’s Khloe and Lamar, TLC’s Extreme Couponing and Cake Boss, CMT’s Singing Bee, Comedy Central’s Tosh.O, Discovery’s Deadliest Catch, and A&E’s Criminal Minds. By running our original commercial on these cable channels during the prime time hours, PETCO will obtain the highest exposure to our target audience.

TV Total <000>

<000> Vert %

Horiz %

Index

Quintile I

21,003 2,465 23 11.1 116

Quintile II

22,118 3,874 19.5 17.5 99

Quintile III

20,675 3,388 17.1 16.4 92

Quintile IV

21,082 3,713 18.7 17.6 99

Quintile V

27,039 5,235 26.4 19.4 109

Out of Home

To supplement our television and radio spots, we recommend out of home in the format of billboards to be placed in our target DMAs. Our target audi-ence responds highly to outdoor advertisements with an index of 169 in quintile I which makes this recommendation ideal for this campaign. Through Clear Channel Communications, we have identified specific billboards that we will utilize in our multi-faceted campaign.

Outdoor Total <000>

<000> Vert %

Horiz % Index

Quintile I

21,405 2,331 21.7 10.9 114

Quintile II

22,016 2,176 20.3 9.8 103

Quintile III

22,237 2,308 21.5 10.4 108

Quintile IV

22,883 1,919 17.9 8.38 88

Quintile V

23,378 1,988 18.5 8.5 89

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Internet

Internet use is also exceedingly high with our target audience. Creating a website that compliments the “first time” concepts will help increase the gross rating points we are looking for in this campaign. The target audience of adults ages 25-34 are 69% more likely to use the internet than the average consumer. Tailoring the site to the first time pet own-ers we are focusing on will yield spillover to the general consumer base and increase overall exposure to PETCO.

Internet Total <000>

<000> Vert %

Horiz %

Index

Quintile I 14,713 2,378 22.2 16.2 169

Quintile II 14,042 1,746 16.3 12.4 130

Quintile III 14,029 1,528 14.3 10.9 114

Quintile IV 14,291 2,156 20.1 15.1 158

Quintile V 14,488 1,157 10.8 7.98 83

Trade Magazine

Finally, trade publications such as AKC Gazette, Veteri-nary Medicine, and PetAge are recommended to reach an important niche audience. By placing advertisements in these trade publications, professionals such as breeders and veterinarians will be exposed to the PETCO brand and promote the expertise that PETCO has to offer it’s custom-ers.

Veterinary Medicine reaches over 50,000 companion-animal veterinarians in their circulations and provides a print and digital version of their publication. Placing ads in this trade publication will allow us to reach the ultimate influencers in pet care and ensure that the PETCO will be promoted with the knowledge and backing of animal professionals.

Publishing ads in PetAge will enable us to reach other retailers and manufacturers of pet food and supplies. Pet-Age reaches over 25,000 pet food and supply manufactur-ers and small retailers in circulation. These publications suggest industry trends, product innovations, and animal care. Utilizing PetAge’s consumer base for further influ-ence into our audience will pose PETCO at a great advan-tage.

AKC Gazette reaches over 35,000 readers in circulation including breeders, pet enthusiasts and many other deci-sion leaders. AKC Gazette focuses on news on purebred dog breeding and showing, health and grooming, and even legal issues concerning dogs and the field of breeding. Ideally, reaching these consumers will help instill PETCO’s expertise in the minds of breeders and influencers.

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Media considered but not recommended…

Network Television: Network TV is a hugely effective way to reach any audience. Research shows that our audience is 16% more likely to watch prime time network television than others. However, taking cost efficiency into consideration, cable television was a better choice to stay within our budget.

Consumer Magazine: Reaching our audience through visual communication is ideal for effective influence. Yet, consumer magazines are not represented well within our target audience. With 35% of our audience represented in Quintile III, consumer magazines are not ideal for use in this campaign.

Mobile Application

Mintel and Simmons Choices 3 both show heavy smart phone usage with the recommended target demographic of adults 25-34. In addition, the Hispanic population also exhibits very high usage of smart phones making the channel very conducive for use in the PETCO “first time moments campaign.” In order to keep PETCO in the minds of our target market we propose an application that will accomplish this. We will introduce this app at the beginning of our campaign as another way to remember that PETCO is there for first time moments and every step of the way. By having an app on a smart phone our consumers will have a constant reminder that PETCO is the pet supply merchandiser that truly wants to be involved in lives of our consumers by encouraging them to capture all the precious moments that occur when someone starts to care for their first pet. The app will allow anyone with a smart phone to take pictures of their puppies and upload them to site that shares the pictures publicly. This way family and friends or fellow pet owners can compare and gawk over precious puppy photos in a scrapbook format. In order to encourage consumers to use this app, we will award the submission with the best picture at the end of every week with a dollar amount. Site viewers will have the ability to “love” their favorite photos. The photo with the most “loves” will be awarded.

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Creative Objectives

-Position PETCO as the one-stop-shop that is there for pet owners from the time they acquire theri first pet throughout the pets life.

-Use knowledge and emotion to appeal to the target audience

-Build brand awareness

-Reach consumers and trade audiences with a single compre-hensive message

-Stay within a budget of $1.4 million for creative production costs.

CREATIVE CONCEPT

The foundation of the “first times” creative concept stems from the idea that first time pet ownership is a precious experience that calls for special care. This time can also be confusing and leave first-time-owners with a lot of questions. We recommend positioning PETCO as the place that can help take the guess work out of the process with their expert employees, products and services that cater to the difficulties first time pet owners face. The inspiration behind the creative concept came from the feeling of excitement first-time parents experience. We projected these emotions onto first-time pet owners to develop a creative campaign with “legs” to be used across several mediums.

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Trade Magazine

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Trade Magazine

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TelevisionVisual:

A puppy runs into the water off a wooden dock in slow motion.

The puppy lands in the water with a giant splash. Then the camera freezes the frame.

The puppy comes out of the water and shakes off his wet coat. Pro-ceeding to plop into a giant mud puddle near the lake shore. Then the camera freezes the frame.

The puppy continues to shake and the owners ( a young man and women wave for him to stop). The puppy sits, tilts his head, then the frame freezes.

The commercial cuts to a backyard with the puppy a tin bath tub squirming about. The frame freezes.

Then commercial cuts to the dog pulling the owner through the sham-poo isle. The puppy spot the grooming window and the frame freezes.

Audio:

A woman narrator with a gentle voice speaks: fi rst times can be messy like,

(MUSIC UP AND UNDER, Splish-Splash/Bobby Darin): The fi rst swim…

The fi rst roll in the mud…

The fi rst trick...

To the fi rst bath.

So... get help from PETCO. PETCO knows which shampoo will help to keep knots away and coats shiny... and PETCO off ers in store grooming. Let PETCO take the stress out of your fi rst times.

For fi rst times, and every step of the way.

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TheTV Storyboard

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The Narrator is a woman pet owner with a gentle and honest voice:

Narrator: “The moment we saw the puppies at Petco, we knew which one we wanted to adopt. He was small and clumsy.”

Puppy (A small childlike boy voice/ high pitched: “I tried to stand out amongst all the puppies! I barked loud and fell into my water bowl...

But I did it right!”

Narrator: “We were newlyweds and our puppy practice for our child on the way, so we wanted the best of everything. PETCO gave us expert tips on products and services to care for our new family member.”

Puppy: Now I’m the luckiest puppy in the world because my parents shop at PETCO.

Narrator: From my first pet, to the first shopping spree ...with many more first moments come, I trust PETCO to be there ever step of the way.

Radio Spot

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The Mobile Application

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Internet

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Billboard

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One of the main objectives of the first time moments campaign is to drive consumers to PETCO over mass retailers. In order to differentiate PETCO stores from the mass merchandisers we sug-gest running promotions that shows consumers that PETCO understands the importance of pet care and perceiving pets as part of the family. Specifically, our promotions will encourage first time pet owners to shop at PETCO to take the frustration away of owning a new pet. PETCO will take away the guesswork of owning a new pet whether it may be figuring out the appropriate food, perfect pet toy, and other products that will fit their new pet adequately. Each promotion has creative intuitions that correlates with the campaign message, and are dispersed throughout the year-long campaign.

Promotional Events: Sales promotions at different events for PETCO’s new campaign will make consumers aware of their specialty products and get PETCO involved with the consumers on a more personal basis. Since the focus of the campaign is generated towards “first time moments”, different events throughout the designated target markets will give PETCO the opportunity to communicate with the consumers about different products and services for those moments. Specifically, small gift bags that include certain products that will help the consumers ease in to their new lives of owning a new pet. An obedience trainer will be on site at each event, so new time pet owners can learn more about properly training their new puppy. Also, for the pet friendly events PETCO booths will have a photo booth that consum-ers and their pets can take pictures for “first time memories.” These particular events chosen have high attendance rate in the cities and most of them are pet friendly, therefore their pet pal can join them throughout the whole event.

Promotions Rationale:

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Gift Bags: These gift bags that will be handed out at each event (minus the North-west Pet & Companion Fair in Portland) so consumers can take them home and become more aware of PETCO’s special products. Each gift bag includes a pamphlet, dog treats, magnet, and a $5.00 off coupon when spending $10.00 or more at a PETCO store. The most important aspect of the gift bag is the pamphlet, which offers a variety of informa-tion regarding owning a new pet. Some information in the pamphlet includes everything a consumer needs to know when owning a new pet from when they first get their new pet up to when they turn one-years-old. For example, the pamphlet will remind the consumer when their new pet should get the appropriate shots at the certain age, appropri-ate treats and toys, types of dog food and tell them when they should switch to something new, and examples of different types of collars that would fit their specific breed. These gift bags will give consumers a remembrance of PETCO, and entice them to stop by the store to let the PETCO expertise help them through the process of owning a new pet.

Photo booth: The photo booths will be offered at every pet event that is pet friendly, so consumer s can make memories with their pets. Also, inside the gift bags are magnets that can appropriately fit the pictures that are taken from the photo booth. The magnets offer a new gift for the consumers and have last longing memories of their pet. On the magnet will be the PETCO logo, so consumers can also stop by the nearest PETCO store to learn more about taking care of a first time pet.

Insertphotohere

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Northwest Pet and Companion Fair: This event is in Portland, Oregon and has about a 7,000 attendance rate. It will take place on April 9th and 10th of 2012. PETCO will not offer the gift bags, because this event makes up their own bags of different com-mercial sponsors. PETCO will put the pamphlet in this bag, which is the most important for the consumer to be exposed to. At the PETCO booth it will have extra pamphlets, a bucket full of treats for the dogs, magnets, and coupons that consumers can take as they choose. A photo booth will be offered, because this event is pet friendly. This year the fair is offering a best dressed contest, so the photo booth will be very popular amongst the consumers to take pictures of their pets in cute costumes.

America’s Family Pet Expo:

This event is in Los Angeles, California and has about a 35,000 attendance rate. It will take place on April 15th -17th of 2012. This is by far the biggest event chosen and offers many opportunities to expose consumers to PETCO. This expo has many different informational events throughout the three days to keep consumers in-terested to stay for a long period of time. The booth will offer the gift bags, but unfortunately will not offer the photo booth since this expo is not pet friendly.

Amazing Pet Expos: This event is offered in Houston, Texas, Austin, Texas, and South Florida, Florida. It will take place in Houston on April 16th, 2012, in Austin on October 8th, 2011, and in South Florida on March 31, 2012. These pet expos have about a 13,000 attendance rate. Similar to the America’s Family Pet Expo in Los Angeles, these pet expos offer many different informational events throughout the day. These expos are pet friendly and have a best costume contest, so therefore the photo booth will be very enticing to the consumers to use.

Chicagoland Family Pet Expo: This expo is in Chicago, Illinois and has about a 15,000 attendance rate. It will take place on March 18-20th in 2012. This is known as the biggest pet expo in the Midwest. The Chicagoland Family Pet Expo is unfortunately not pet friendly, so a photo booth will not be provided. The gift bags will be offered throughout the day until they run out.

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Chicago Pet Show:

This expo is in Chicago, Illinois and has about a 2,000 attendance rate. It will take place on October 30th and 31st of 2011. Since this pet show is smaller, it benefits PETCO that they will be more noticed by the attendees throughout the day. This expo focus-es a lot on pet adoptions, therefore this works for the new PETCO campaign for the first time owning a pet. The gift bags will be provided, so new pet owners can learn about adoptions at other booths than see the vital information needed for owning a new pet. This pet show is not pet friendly, so the photo booth will not be offered.

Haute Dog “Howl’oween” Parade: This parade will take place in Long Beach, Califor-nia and has an estimated attendance rate of 5,000 people. It will take place on October 30, 2011. Haute Dog is an organization that includes dog lov-ers, supporters, rescuers, etc. that support dogs and to make it a dog friendly community everywhere. This parade is the world’s largest Halloween event for dogs. It is a twelve block parade on 2nd street in downtown Long Beach, so PETCO will specifically place their booth towards the end of the parade. This is a fun and entertaining event for pet own-ers, and particularly new pet owners that wanted to dress up their pet for the first time. The booth will offer the gift bags and the photo booth, which should be very popular throughout the day.

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Paw Print Promo:One of the main objectives of the first times campaign is to drive consumers to PETCO over mass retailers . In order to differentiate our store from the mass merchandisers we suggest running a promotion that shows consumers that PETCO understands the importance of pet care and our pets. We will accomplish this through our campaign and promotions. More specifically one promotion that will get this aspect across is our Paw Print Promo.The Paw Print Promo will run in the beginning of our campaign. Pet owners will be invited to PETCO for a one day event. On this day customers will dip their pet’s paws in paint and stamp it onto archival paper, then sign and date it. The paw print will then be hung in the store front so that every-time customers comes back to PETCO they will see their spot in the store and be reminded of how small there pet once was. This paw print will be a symbol of our partnership and involvement in your puppies growth. Then in december the prints will be sent out and transformed into a christmas ornament. Not only will december be a half way mark in our campaign ,but this is a way to get PETCO back into the homes of consumers when spending trends are up and family is important. By encouraging consumers to track first time moments, scrap book, and measure paws we hope that this will remind consumers of PETCOS dedication to a lifetime partnership.

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Google AdWords:

The rationale for using Google AdWords is that Google, the search engine mogul, is the most used search engine taking up 49.2% of the market share for search engines (Sullivan, 2006). Google also has keywords to help optimize the consumer’s results as specific as possible giving PETCO the most accurate search results. Our target market is very tech-savvy; therefore we found it vital to have Internet-based advertisements. We will allocate $3,000 a day on a cost-per-click basis until the very end of our cam-paign, which will cost about $1,077,000.

Facebook Advertising:

Another logical approach to using Internet based ad-vertising is to turn to Facebook, the social network-ing expert. Facebook has more the 500 million ac-tive users and 50% of active users log on to Facebook in any given day (Pressroom, 2011). In 2009, 24% of our target market had an account and was an active user of Facebook (Smith, 2009). Our approach to using Facebook was to pinpoint our target market by specifically targeting people who live in pet friendly cities and have likes/interests related to pets. For our Internet campaign we suggest spending $1,000 a day until the end of our campaign. Facebook will only be charging us for cost-per-click.

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PETCO PALS Program:

In order to reach our consumers both first time users of the PETCO PALS program, as well as already users of the program the first 1,000 customers at our top DMA stores will receive a coupon. The first 1,000 customers that have not signed up for the PETCO PALS program will receive a $10.00 off coupon to use with their next purchase. The first 1,000 customers who already are users of the program will receive a $20.00 off coupon of a pur-chase of $100.00 or more. After the 1,000 new users and the 1,000 old us-ers of the PETCO PALS program runs out at each one of our DMA stores, than the promotion for the rewards card would be over. We hope more of our consumers will take advantage of the PETCO PALS program and see what kind of advantages it has for future uses. We will send out numer-ous reminders regarding different events, new promotions, and coupons to keep consumers enticed to use the rewards card and to keep shopping at PETCO. “Give Them a First Time”

PETCO and the Humane Society of the United States are teaming up to-gether to help support underprivileged dogs and cats for another chance of having a healthy and happy life. We have allocated $650,000 to 3,500 animal shelters throughout the United States that will donate $1.00 for each animal adopted from one of the animal shelters. It is estimated about 185 pets could potentially be adopted at each animal shelter that we could donate $1.00 to the Humane Society of the United States. Our target audience is interested in companies that support a social respon-sibility program; therefore the “Give Them a First Time” program could entice our consumers to adopt from an animal shelter. PETCO fully sup-ports adoption agencies, so being able to give underprivileged animals the opportunity to share their “first time moments” with their new owners would give PETCO a positive reputation for helping these animals. This would start at the beginning of the campaign, and run until the $650,000 has been fully donated to the Humane Society of the United States.

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1.5%

13.5%

45%

40%

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Campaign Budget

Total Budget: $9.6 million

Media: $3.8 million Television: $349,024 Extreme Couponing: 16 spots X $3,450 $55,200 Tosh.O: 16 spots X $2,857 $45,712 Cake Boss: 16 spots X $3,450 $55,200 Deadliest Catch: 16 spots X $4,025 $64,400 Singing Bee: 16 spots X $1,725 $27,600 Criminal Minds: 16 spots X $3,450 $45,712 Khloe and Lamar: 16 spots X $ 2,875 $45,712

Radio: $2,178,700 Los Angeles KKGO: 170 spots X $450 $63,000 KIIS: 170 spots X $1,000 $170,000 Austin KASE: 90 spots X $100 $9,000 Portland KWJJ: 540 spots X $350 $189,000 KINK: 540 spots X $253 $136,620 KRSK: 540 spots X $172 $92,880 Chicago WVAZ : 130 spots X $1,900 $247,000 Houston KODO: 380 spots X $3,200 $1,216,000 Jacksonville WQIK: 120 spots X $460 $55,200

Trade Magazine: $213,000 PetAge: 12 X $3,530 $42,360 Veterinary Magazine: 12 X $9,495 $113,940 AKC Gazette: 12 X $4,725 $56,700

Outdoor: $1,134,590 Chicago $237,600 Houston $ 207,270 Austin $84,000 Jacksonville $34,000 Orlando $ 52,920 Portland $ 137,200 Los Angeles $ 381,600

Total: $7,620.00

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Promotions: $4,335,476.50

Events: $160,196

Northwest Pet and Companion Fair (Portland, OR) Attendance Rate: 7,000 peopleBooth: $630.00Banner: $25.00Bags: $894.00 (for 2,000 exhibit bags)Pamphlets (to be placed in bag): $120.00 (2,000 x .06 per pamphlet)Pamphlets (at booth): $84.00 (1,400 x .06 per pamphlet)Dog treats (at booth): $1,225 (17.5 (20 lb bags which hold 200 treats) x $70.00) for 3,500 treatsMagnets: $420.00 (.30 per magnet x 1400) Coupon Cost (at booth): $910.00 ($65.00 for 250 coupons x 14) for 3,500 couponsCoupon Redemption: $17,920 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee)Photo booth: $595.00 Two PETCO workers: $720.00One obedience trainer: $450.00Total: $23,993.00

America’s Family Pet Expo (Los Angeles, CA) Attendance Rate: 35,000 peopleBooth: $900.00Banner: $25.00Bags: Bag Production: $1,400 (.02 x 7,000) Pamphlets: $420.00 (.06 x 7,000) Dog treats: $2,450 ($70.00 x 35 (20 lb bags which hold 200 treats)) for 7,000 treats Magnets: $2,100 (.03 x 7,000) Coupon cost: $1,820 (($65.00 for 250 coupons) x 28) for 7,000 couponsCoupon redemption: $35,840 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee) x 7,000 coupons)Two PETCO workers: $600.00One obedience trainer: $375.00Total: $45,510.00

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Amazing Pet Expos (Houston, Texas, Austin, Texas, and South Florida, Florida)Attendance Rate: 13,000 peopleBooth: $750.00Banner: $25.00Bags: Bag Production: $520.00 (.02 x 2,600) Pamphlets: $156.00 (.06 x 2,600) Dog treats: $910.00 ($70.00 x 13 (20 lb bags which hold 200 treats)) for 2,600 treats Magnets: $780.00 (.03 x 7,000)Coupon cost: $715.00 (($65.00 for 250 coupons) x 11) for 2,750 couponsCoupon redemption: $14,080 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee) x 2,750 coupons)Photo booth: $595.00Two PETCO workers: $225.00One obedience trainer: $360.00Total: $19,116 x 3 (for the three cities) = $57,348

Chicagoland Family Pet Expo (Chicago, Illinois)Attendance Rate: 15,000 peopleBooth: $900.00Banner: $25.00Bags: Bag Production: $600.00 (.02 x 3,000) Pamphlets: $180.00 (.06 x 3,000) Dog treats: $1,050 ($70.00 x 15 (20 lb bags which hold 200 treats)) for 3,000 treats Magnets: $900.00 (.03 x 3,000)Coupon cost: $780.00 (($65.00 for 250 coupons) x 12) for 3,000 couponsCoupon redemption: $15,360 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee) x 3,000 coupons)Two PETCO employees: $576.00One obedience trainer: $360.00Total: $20,731.00

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Chicago Pet Show (Chicago, Illinois) Attendance Rate: 2,000 peopleBooth: $775.00Banner: $25.00Bags: Bag Production: $80.00 (.02 x 400) Pamphlets: $24.00 (.06 x 400) Dog treats: $140.00 ($70.00 x 2 (20 lb bags which hold 200 treats)) for 400 treats Magnets: $120.00 (.03 x 400)Coupon cost: $130.00 (($65.00 for 250 coupons) x 2) for 500 couponsCoupon redemption: $2,560 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee) x 400 coupons)Two PETCO employees: $720.00One obedience trainer: $420.00Total: $4,994.00

Haute Dog “Howl’oween” Parade (Long Beach, California)Attendance Rate: 5,000Booth: $125.00Banner: $25.00Bags: Bag Production: $200.00 (.02 x 1,000) Pamphlets: $60.00 (.06 x 1,000) Dog treats: $350.00 ($70.00 x 5 (20 lb bags which hold 200 treats)) for 1,000 treats Magnets: $300.00 (.03 x 1,000)Coupon cost: $260.00 (($65.00 for 250 coupons) x 4) for 1,000 couponsCoupon redemption: $5,120 (($5.00 coupon + .08 for retailer to redeem + .04 for clearinghouse fee) x 1,000 coupons)Photo booth: $595.00Two PETCO employees: $360.00One obedience trainer: $225.00

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Pet Painting Extravaganza: $269,288

Portland, Oregon:Paint brushes: $792.00 (0.99 x 200 brushes x 4 stores)Paint: $522.00 ($130.50 (8 1/2 gallon paint cans) x 4 stores)Frames: $8,000.00 ($2.00 x 1,000 x 4 stores)Paper: $600.00 (.15 (per paper) x 1,000 x 4 stores)Bowls to hold paint: $32.00 ($1.00 x 8 x 4 stores)Shipping cost: $14,000 ($3.50 (per gift shipped) x 1,000 x 4 stores)Total: $23,946.00

Orlando, Florida:Paint brushes: $792.00 (0.99 x 200 brushes x 4 stores)Paint: $522.00 ($130.50 (8 1/2 gallon paint cans) x 4 stores)Frames: $8,000.00 ($2.00 x 1,000 x 4 stores)Paper: $600.00 (.15 (per paper) x 1,000 x 4 stores)Bowls to hold paint: $32.00 ($1.00 x 8 x 4 stores)Shipping cost: $14,000 ($3.50 (per gift shipped) x 1,000 x 4 stores)Total: $23,946.00

Jacksonville, Florida:Paint brushes: $594.00 (.99 x 200 brushes x 3 stores)Paint: $391.50 ($130.50 (8 1/2 gallon paint cans) x 3 stores)Frames: $6,000.00 ($2.00 x 1,000 x 3 stores)Paper: $450.00 (.15 (per paper) x 1,000 x 3 stores)Bowls to hold paint: $24.00 ($1.00 x 8 x 3 stores)Shipping cost: $10,500.00 ($3.50 (per gift shipped) x 1,000 x 3 stores)Total: $17,959.50

Austin, Texas:Paint brushes: $990.00 (0.99 x 200 brushes x 5 stores)Paint: $652.50 ($130.50 (8 1/2 gallon paint cans) x 5 stores)Frames: $10,000.00 ($2.00 x 1,000 x 5 stores)Paper: $750.00 (.15 (per paper) x 1,000 x 5 stores)Bowls to hold paint: $40.00 ($1.00 x 8 x 5 stores)Shipping cost: $17,500.00 ($3.50 (per gift shipped) x 1,000 x 5 stores)Total: $29,932.50

Long Beach, CaliforniaPaint brushes: $990.00 (0.99 x 200 brushes x 5 stores)Paint: $652.50 ($130.50 (8 1/2 gallon paint cans) x 5 stores)Frames: $10,000.00 ($2.00 x 1,000 x 5 stores)Paper: $750.00 (.15 (per paper) x 1,000 x 5 stores)Bowls to hold paint: $40.00 ($1.00 x 8 x 5 stores)Shipping cost: $17,500.00 ($3.50 (per gift shipped) x 1,000 x 5 stores)Total: $29,932.50

Houston, TexasPaint brushes: $1980.00 (0.99 x 200 brushes x 10 stores)Paint: $1,305.00 ($130.50 (8 1/2 gallon paint cans) x 10 stores)Frames: $20,000.00 ($2.00 x 1,000 x 10 stores)Paper: $1,500.00 (.15 (per paper) x 1,000 x 10 stores)Bowls to hold paint: $80.00 ($1.00 x 8 x 10 stores)Shipping cost: $35,000.00 ($3.50 (per gift shipped) x 1,000 x 10 stores)Total: $59,865.00

Los Angeles, California:Paint brushes: $1,386.00 (0.99 x 200 brushes x 7 stores)Paint: $913.50 ($130.50 (8 1/2 gallon paint cans) x 7 stores)Frames: $14,000.00 ($2.00 x 1,000 x 7 stores)Paper: $1,050.00 (.15 (per paper) x 1,000 x 7 stores)Bowls to hold paint: $56.00 ($1.00 x 8 x 7 stores)Shipping cost: $24,500.00 ($3.50 (per gift shipped) x 1,000 x 7 stores)Total: $41,849.50

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Chicago, Illinois:Paint brushes: $1,386.00 (0.99 x 200 brushes x 7 stores)Paint: $913.50 ($130.50 (8 1/2 gallon paint cans) x 7 stores)Frames: $14,000.00 ($2.00 x 1,000 x 7 stores)Paper: $1,050.00 (.15 (per paper) x 1,000 x 7 stores)Bowls to hold paint: $56.00 ($1.00 x 8 x 7 stores)Shipping cost: $24,500.00 ($3.50 (per gift shipped) x 1,000 x 7 stores) Total: $41,849.50

Pet Pic of the WeekApplication winners per week:First place: $1,000Second place: $500Third place: $300Fourth place: $200Fifth place: $100Total per week: $2,100 x 4 weeks (per month) = $8,400$8,400 x 52 weeks (one full year) = $436,800 TOTAL: $436,800

Google AdWords TOTAL: $1,077,000

Facebook Ads TOTAL: $359,000

“Give Them their First Time” TOTAL: $650,000

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Coupons

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1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4Audience:Adults 25-34

EventsNorthwest Companion FairAmerican's Family Pet ExpoAmazing Pet Expo (Austin, TX)Amazing Pet Expo (Houston, TX)Amazing Pet Expo (South FL, FL)Chicagoland Family Pet ExpoChicago Pet ShowHaute Dog "Howl'oween" Parade

Pet Pic of the Week APP

Facebook Advertising

Google AdWords Advertising

"Give Them a First Time" Program

PETCO PALS Program

Paw Paint Promo

December January February March April MayJune July August September October November

Promotions Flow Chart

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1. Where do you most frequently purchase pet food?a. Costco 23.5%b. Walmart 17.6%c. Target 5.9%d. Supermarket 14.7%e. PetSmart 11.8%f. PETCO 11.8%g. Other 14.7%i. I make my dogs food

2. Where do you most frequently purchase your pet supplies (e.g. bones, toys, pet beds)?a. Costco 25.8%b. Walmart 16.1%c. Target 6.5%d. Supermarket 6.5%e. PetSmart 25.8%f. PETCO 19.4%g. Other 14.7%i. I make their toysii. Feedstore

3. What factor do you consider to be most important when shopping for pet food and supplies?a. Longevity 5.9%b. Taste 2.9%c. Price 44.1%d. Quality 47.1%

4. What Perks would you like to see if a frequent shopper program at your pet food and supply outlet of choice?a. Free treat with X bags of food purchased. b. Coupons.c. Customized coupons based on past purchases. d. Reduced prices for frequent shoppers. e. Reduced price grooming and training. f. No rebates- they are inconvenient. g. Gift for your pet on their birthday. h. Cash back.

Primary Research

Appendix

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5. Which media do you spend the most time using?a. TV 23.5%b. Radio 5.9%c. Internet 70.6%6. Would you be more likely to trust information about a product provided by actual users (e.g. testimo-nial) or a company (e.g. PETCO)?a. Product Users 88.2%b. 11.8%7. Would you be more interested in a free online nutritional consult for your pet?a. Yes 41.2%b. No 58.8%8. If you knew your purchase of pet food and supply was helping to support homeless pets would it sway you to shop there over other outlets?a. Yes 82.4%b. No 17.6%

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Citations

Experian simmons market research bureau. (2009). New York: Choices 3.

Fact sheets. (2010). http://walmartstores.com.

Fact sheet – general. (2011). http://about.petco.com/press-room/company-fact-sheet/.

Handy art® acrylic paint. (2011). Fort Atkinson, WI: http://www.enasco.com/prod-uct/9718413.

Hardlines retailing. (2008). Bear Stearns & Co. Inc. and U.S. Census Bureau.

Hessinger, S. (2011). How petco uses social media. BizSugar.com .

Hsus pet overpopulation estimates. (2009). http://www.humanesociety.org/issues/pet_overpopulation/facts/overpopulation_estimates.html

Kavilanz, P. (2008). Wal-mart's recession-time pet project. Cable News Network.

Maquire, J. (2005). Petco — where the e-mail marketing goes a long way. eCommerce-Guide.com.

mintel: pet food and supplies. (2009). http://academic.mintel.com.

mintel: pet supplies. (2010). http://academic.mintel.com.

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Petco the work and the results. (2011). Santa Monica, CA: The Phelps Group.

Pet food-brand share-cat food. (2010). http://academic.mintel.com.

Pet food-brand share-other pet food. (2010). http://academic.mintel.com.

Pet food-leading companies. (2009). http://academic.mintel.com.

Pet food-market drivers. (2010). http://academic.mintel.com.

Pet food-market size and forecast . (2010). http://academic.mintel.com.

Pet food-outlets where pet food is purchased. (2010). http://academic.mintel.com.

Pet food-retail channels. (2010). http://academic.mintel.com.

Pet food-retail channels-other. (2010). http://academic.mintel.com.

Pet food-retail channels-supermarkets. (2010). http://academic.mintel.com.

Petsmart fun facts. (2010). PetSmart Store Support Group, Inc.

Pet supplies -brand share-dog/cat litter. (2010). http://academic.mintel.com.

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Contacts

Madeline Gregory: MediaBlair Breitenstein: Creative

Christy Koontz: Creative/Media

Kristiana Wright: Account Executive

Kelsey Pearman: Creative

Alli Price: Media Erika Rattray: Creative

Kristiana Wright:[email protected]

Blair Breitenstein:[email protected]

Madeline Gregory:[email protected]

Kelsey Pearman:[email protected]

Alli Price:[email protected]

Erika Rattray:[email protected]

Christy Koontz:[email protected]