Pawsitively Pampered

BUSN645

Glenice Booker-Butler, Mark Dominic,

Katarina Fruits, Lynell Gupta

Mission & Vision

Mission: The mission of Pawsitively Pampered is to serve pet owners by providing convenient, healthy, and natural products for their companions.

Vision: The vision of Pawsitively Pampered is to provide convenient, flexible product options to stimulate a healthy and happy lifestyle in pets.

Value Proposition

Organic

All Natural

Environmentally Friendly

Durable

Convenient

Customizable

Situation AnalysisMarket Size

68% of households are pet owners, compared to 62% in 2009

$1.4 billion in annual profit, $17.5 billion in annual revenue

Growing at a rate of 2.8%

Market Trends

Organic, all natural products

Small businesses dominate the marketplace, approximately 83% of companies have fewer than five employees

Regardless of economic hardships, pet products are considered non-discretionary products

Product

Core products: food, snacks, and toys

Add-on products with customizable options

Individual items for purchase

Target Market  

Pet owners who treat their pet as a member of their family

Approximately 9 in 10 individuals view their pet as a member of the family

SWOT Analysis

StrengthsConvenience

Entering the healthy pet (dog and cat) lifestyle market

Quality products

Technology

WeaknessesNo brand recognition

Limited flexibility in product pricing

OpportunitiesGlobal expansion

Customization and product add-ons

ThreatsCompetition

Economic stability

BarkBox SWOT Analysis

StrengthsBrand awareness & existing market share

Present cost savings for their customers

Simplicity for customers

Weaknesses

Lack of product offerings for large, aggressive dogs

Lack of customization

Lack of well-reviewed customer service

OpportunitiesExpansion into related markets

Expansion of greater product offerings

ThreatsLuxury item for some individuals

Plateau of growth for the industry

Porter’s Five Forces 

Threat of New CompetitorsStrong brand names are importantEntry barriers are medium 

Bargaining Power of SuppliersDiverse distribution channelHigh competition among suppliers

Bargaining Power of CustomersBuyers require special customizationLow buyer price sensitivity 

Intensity of Existing RivalryFast industry growth rateExit barriers are low 

Threat of SubstitutesHigh cost of switching to substitutesSubstantial product differentiation

Marketing Strategy

External

HolisticFitnessNutritionMental State

Charitable Donations2% of all proceeds will be donated to an animal shelter or similar animal rescue program

Internal

Product SamplesSent with each box orderedNumber of samples included will depend upon the membership of the customer

Subscription OfferingsFinancial incentives to upgrade memberships including discounts for upgrades and free product offerings

  

Promotional Calendar 

Jan  

Feb Mar Apr May Jun Jul Aug Sep Oct  Nov Dec Total

Product Samples Q 1= 200 boxes Q2 = 300 boxes Q3= 500 boxes Q4= 800 boxes $1000.00

Marketing Mailers     15,000       15,000   $2000

Events/Tradeshows

    Global Pet Expo

      SuperZoo

          $4000

Purchased Email Lists

100,000 names

    100,000 names

    100,000 names

      $2000

Radio:Pandora 30 second audio ad     15 second video ad $1500.00

Social Media Facebook, Twitter, Instagram, Pinterest   

Website SEO, Content Management  

Customer Satisfaction Survey

            $780.00

Marketing Effectiveness

Marketing Automation Tool: Engagement, growth, lead qualification B2B/B2C $3000

Profit & LossPro-Forma Income Statement

Pawsitively PamperedREVENUE Year 1 Year 2 Year 3 Year 1 % Year 2 % Year 3 % Industry %

Bronze Level $50,000 $100,000 $150,000 22.7% 22.7% 22.7%Number of Subscriptions @ $25 per month 2,000 $4,000 $6,000

Growth % N/A 100% 50%

Silver Subscriptions $75,000 $150,000 $225,000 34.1% 34.1% 34.1%Number of Subscriptions @ $50 per month 1,500 $3,000 $4,500

Growth % N/A 100% 50%

Gold Subscriptions $75,000 $150,000 $225,000 34.1% 34.1% 34.1%Number of Subscriptions @ $50 per month 1,000 $2,000 $3,000

Growth % N/A 100% 50%

Other Revenue (Add-Ons) $20,000 $40,000 $60,000 9.1% 9.1% 9.1%Growth % N/A 100% 50%

Net Sales $220,000 $440,000 $660,000 100.0% 100.0% 100.0% 100%

COST OF GOODS SOLDCost of Sales - Bronze $32,500 $65,000 $97,500 65.0% 65.0% 65.0%Cost of Sales - Silver $45,000 $90,000 $135,000 60.0% 60.0% 60.0%Cost of Sales - Gold $41,250 $82,500 $123,750 55.0% 55.0% 55.0%Cost of Sales - Other Revenue $14,000 $28,000 $42,000 70.0% 70.0% 70.0%Total Cost of Goods Sold $132,750 $265,500 $398,250 60.3% 60.3% 60.3% 57.7%

Gross Profit (Loss) $87,250 $174,500 $261,750 39.7% 39.7% 39.7% 42.3%

OPERATING EXPENSESSelling

Salaries and wages $29,920 $59,840 $89,760 13.6% 13.6% 13.6% 13.6%Advertising 13,200 26,400 39,600 6.0% 6.0% 6.0% 1.9%

Total Selling Expenses $43,120 $86,240 $129,360 19.6% 19.6% 19.6% 15.5%

General/AdministrativeRent & Utilities $16,500 $33,000 $49,500 7.5% 7.5% 7.5% 10.0%Depreciation & amortization $2,420 $4,840 $7,260 1.1% 1.1% 1.1% 1.1%Other $5,000 $6,000 $7,000 2.3% 1.4% 1.1% 7.6%

Total General/Administrative Expenses $23,920 $43,840 $63,760 10.9% 10.0% 9.7% 18.7%

Total Operating Expenses $67,040 $130,080 $193,120 30.5% 29.6% 29.3% 34.2%

Net Income before Taxes (LOSS) $20,210 $44,420 $68,630 9.2% 10.1% 10.4% 8.10%

Summary 

Positively Pampered has positioned and differentiated our marketing

strategies to support that our company services and products are

different, bigger, and better than that offered by our competitors,

attributing largely to our pet first companywide attitude. What sets us

apart? Exceptional customer service, affordable, high quality products,

and a variety of personally selected items to support the health and

wellness while enhancing the life and behavior of your pet.

References

http://www.costowl.com/b2b/marketing-buy-email-list-cost.html

http://www.gaebler.com/Dog+Fancy-magazine-advertising-costs++27322

http://www.constantcontact.com/services2/overview

http://www.expresscopy.com/flyer-brochure-pricing

https://willhanrahan.wordpress.com/2012/03/28/pandora/

http://

www.usnews.com/news/business/articles/2015/03/05/americans-spent-58-billion-to-pamper-protect-pets-in

-2014

http://www.americanpetproducts.org/press_industrytrends.asp