Presented by Laura Parkinson

December 16, 2008

I. EXECUTIVE SUMMARY

The pet industry is a large and rapidly growing market. Pet superstores reign in today’s marketplace and this report

audits the brand of the #2 retailer, Petco Animal Supplies, Inc. The audit is presented in four parts. An Introduction

takes a look at the pet industry. An Inventory provides a profile of the company and an evaluation of the brand and its

positioning. An Exploratory reviews consumer attitudes and perceptions. And a Recommendation suggests strategies to

help the brand grow its equity and marketshare.

Sales data and in-depth analysis shows that Petco has built and managed a strong, modern brand. The brand image,

voice and personality remain consistent across all marketing efforts. However, consumer insight reveals that there is

some brand confusion between Petco and its chief competitor PetSmart. A variety of marketing efforts ranging from

advertising increase, demographic segmentation, strategic partnerships and website enhancement will help the brand

grow and establish a unique position within the consumers’ mind and preference.

II. INTRODUCTION

The Pet Industry

Americans love their pets! More than 70 million households have a pet, and most have more than one. In fact, these pet

households are home to more than 350 million dogs, cats, hamsters, horses, snakes, birds, fish and lizards. Americans

have even made spending on pets the eighth

largest retail segment by shelling out $40 billion

dollars last year alone. The growing U.S. pet

industry is highly fragmented with a variety of retail

outlets: Pet superstores, supermarkets,

warehouse clubs, mass retailers, pet supply

chains, independent pet stores, veterinarians,

catalog retailers and e-commerce players.

PetSmart controls the top share of the U.S. market

with 12.7% and Petco Animal Supplies, Inc.

follows behind with a 6% share.

www.wikinvest.com

Major product segments within the industry include pet food (which accounts for 40% of revenue), pet supplies

and medicines (25% of revenue), veterinary care (25% or revenue), pet services (6%) and pet sales (4%).

III. BRAND INVENTORY

COMPANY PROFILE

Founded in 1965 and incorporated in Delaware, San Diego

headquartered Petco Animal Supplies, Inc. is a privately owned

company following its merger with Texas Pacific Group and Leonard

Green & Partners in 2006. The nation’s second largest pet supply

specialty retailer operates in all 50 U.S. states and the District of

Columbia and employs nearly 19,000 workers in more than 900

stores.

Petco superstores are typically 15,000 sq. ft and they carry approximately 10,000 pet-related items and premium cat and

dog foods including Nutro, Iams, Hill’s Pet Nutrition and Natural Science Diet.

www.Wikipedia.org

PETCO Animal Supplies, Inc.

Type Private

Genre Pet food

Founded 1965

Headquarters San Diego, California

Industry Retail

Products Pet supplies

Website http://www.petco.com

Petco superstores are located in high traffic areas, usually in strip malls, co-anchored by other strong superstores. The

average superstore generates about $3 million of revenue annually, with sales per square foot of about $200.

The Petco retail stores are designed in a layout called Pisces, which was launched in 2004 and integrated from valuable

customer, store associate, and vendor partner input. The design goal was to create an “uplifting, cool, humble,

professional and an enjoyable place to shop.” (Display & Design Ideas; 2005). Pisces stores include wide circular

“racetrack aisles” to encourage and facilitate customer traffic throughout all companion animal categories. Colorful

displays and vibrant signage is intended to appeal to adults and children alike. Each Pisces store features a dramatic

display of aquatics merchandise or a live animal category at the center of the design as well as new elements such as an

upscale grooming salon and day spa.

Pet ownership drives demand for Petco and spending generally resists economic cycles as owners consider products for

their animals to be necessities. Petco plays up specialty products and premium brands to distinguish its merchandise mix

from supermarkets and mass merchandisers.

Petco buys large quantities of key products like dog and cat food directly from manufacturers at deep discounts. Dog and

cat food is typically marked up between 20 and 30 percent while other pet foods and supplies are marked up between 80

and 90 percent. A computerized inventory management system efficiently tracks the tens of thousand of items from

thousands of different suppliers.

A second source of revenue for Petco is via pet services. The stores offer grooming; obedience training, vaccination

clinics, professional photography, pet insurance, DNA Breed Testing and they also sponsor pet adoption for cats and

dogs in conjunction with local animal-welfare organizations. (Petco.com, 2008)

Petco’s final source of growing revenue is through selling products on its multi-functional company website store,

www.Petco.com. The company also participates in a very successful affiliate program that includes about 1,500

publisher sites and generates about 20% of the online retailer’s traffic and sales. According to a pet industry blog, “85%

of the results come from 2% of the affiliates, and it’s those highly productive partners that get most of the retailer’s

attention.” (Typepad.com, 2008)

Petco has a national footprint, but considers itself significantly under-penetrated in many of the country’s major markets.

Their long-term strategy is to expand square footage by approximately 10% annually through new store growth. Each year

they focus on strengthening their presence in geographic markets where they already have stores while also targeting one

or two new markets. In addition to opening new stores, they annually close the bottom 2-3% of their store base in an effort

to maintain an overall successful real estate strategy. (Petco Annual Report, 2006) Corporate executives perceive a

target potential of 1500-1600 Petco stores in the U.S. With more than 900 stores nationwide currently, they are more

than halfway to their targeted national goal.

BRANDING

The positioning of the brand is clear, “At Petco Animals Always Come First…Our People Make it Happen.” The

executives at Petco have crafted a fine-tuned brand. Voice and visual consistency is seen throughout their efforts from

the store interiors…to the website design…to the marketing campaigns…and on to everything else in between.

“PETCO's vision is to best promote, through our people, the highest level of well-being for companion animals and to support the human-animal bond.”

“PETCO's strategy is to provide a broad array of premium products, companion animals, and services, and a fun and exciting shopping experience.”

“PETCO's value proposition to the pet parent/customer is provided through friendly, knowledgeable associates in convenient, community-based locations.”

- 2006 Petco Annual Report

Petco’s vision focuses on the emotional connection between people and animals. While customers are encouraged to

shop its stores with their pets, the policy communicates the level of welcome and importance that the brand extends to

animals. In everything it does the core marketing goal of the brand is to position Petco as an authority on pets.

Brand Elements

Petco’s brand name, characters and slogan are all wrapped into their logo. These elements contain effective attributes

that help to build strong brand equity.

Memorability: The Petco brand name is short and easy to remember while the logo is colorful and nicely designed in a

casual font. The red dog and blue cat are friendly characters and they’re supported by the welcoming slogan, “Where the

pets go.”

Meaningfulness: The brand name makes complete sense for the product category as it implies that it’s a “pet company.”

Likability: Pets are loveable and this association is directly transferred to the brand by playful graphics in primary colors

which presents a feel-good visual imagery and plays up the emotional connection that people have with their pets.

Transferable: Petco brand elements transfer seamlessly from the brick-and-mortar stores to the website. The URL is

exactly what a consumer would expect, www.Petco.com. The graphics, visual elements and brand voice have complete

continuity. The entire brand concept also works across geographic borders, age demographics, ethnicities and genders.

Adaptable: The brand elements are basically timeless and are not only adaptable from the stores to the web, but also

across branded gift cards, private label products and the charitable Petco Foundation.

Protectable: The distinctness of the brand name, logo and slogan make it legally protectable. However, in the minds

and eyes of the consumer its similarity in name and brand color use (red and blue) to PetSmart can lead to confusion.

Sources of Brand Equity

Employees

Petco makes it clear in its positioning (…our people make it happen), its vision (…to best

promote through our people) and its value proposition (…provided through friendly,

knowledgeable associates) that its employees are a main source of brand equity. The

brand uses its employees, place throughout the stores, to enhance their overall customer

relationship marketing strategy.

Marketing Support Programs

Petco integrates customer-focused communications

throughout its marketing programs…all while creating

seamless branding and consistency across messaging,

graphic elements and brand personality.

Pals Loyalty Program - Since 1997, millions of animal lovers have signed up to be

members of the Petco Pals Loyalty Program. PALS members enjoy hundreds of

members’ only discounts throughout the store on products and services and receive

special bonus offers and exclusive invitations to pet-friendly events. 11 years worth of

customer loyalty has generated not only tremendous revenue, but also tremendous brand equity for Petco.

Celebrity Endorsements – The use of celebrities also helps bring credibility and equity to the Petco brand.

In July of 2008, Petco signed a licensing and endorsement deal with popular dog behavior specialist and star of

National Geographic’s Dog Whisperer, Cesar Millan. The deal debuts a new line of branded dog products in the

stores as well as an online dog coaching course, developed by Millan and offered by Petco on its website. Millan

isn’t the first celebrity to partner with Petco. Comedian Ellen DeGeneres earlier this year launched her own line of

natural pet products for the retailer, called Halo. (Brandweek, 7/24/2008).

Petco Foundation

A powerful source of brand equity comes from the charitable Petco Foundation. The foundation has raised more

than $44 million since its inception in 1999 to help promote and improve the welfare of companion animals. In

conjunction with the foundation, PETCO works with and supports more than 5,000 local animal welfare groups

across the country to help find homes for nearly 300,000 adoptable animals every year. (BazaarVoice 2007) This

high-visibility source of goodwill helps generate not only brand equity, but also a “love of brand” among consumers.

Promotions

From Howl-O-Ween pet costume contests to Hamster Ball Derbies to Paws Across America community dog walks,

Petco uses customer-focused promotions to build store traffic and customer loyalty. Many of these promotions

additionally trigger charitable donations to the Petco Foundation. (PromoMagazine.com, 2007).

Petco also executes frequent vendor promotions to build awareness. Hill’s Pet Nutrition ran an in-store

sweepstakes to lead Petco’s recognition of September as Natural Food Month. Science Diet’s Nature’s Best

natural food line is currently running the “Escape with Nature’s Best” sweeps which will reward three grand-prize

winners with 2009 Ford Escape Hybrids and up to $3,900 for a year’s worth of gas. Secondary prizes include

Petco gift cards. (In-Store Marketing Institute, Sept 2008)

Petco Park - The brand has a huge competitive edge over any other pet product retailer. It holds the naming rights

to the San Diego Padres’ ballpark in downtown San Diego. This relationship with the Padres not only resonates

with the locals in the company’s headquartered city, but the name gets an enormous amount of national media

exposure. The association with the Padres and Major League Baseball is a core brand equity component.

Innovation + Experiential Environment

Much of Petco’s brand equity is driven by innovation as the company continually seeks new ways to offer their customers

a unique and entertaining shopping experience. The Pisces store format differentiates Petco from all its competitors

while the marketing managers also are innovative in applying Web 2.0 tactics to their website. There is a lot of online

similarity with PetSmart, however, the superstores are differentiated from other competitors with their active use of social

networking through pet communities, message boards and blogs.

Vendor Partnerships

The P.A.L.S. VALS affinity marketing program

adds value to Petco’s frequent buyer program

and equity to the brand. Offers from over 15

national and 80 regional partners are compiled

in free booklets given to P.A.L.S. members in

Petco stores. Many of the vendors offer cross-

promotional marketing exposure including

Choice Hotels, Samsonite and Budget Rent a

Car. Over 3 million booklets have been

distributed to date.

Brand Health + Competitive Environment

A recent issue of DSN Retailing Today (2007) reported that Petco earned a 5.1% increase in same-store sales in its

fourth quarter. The increase marked the 48th consecutive quarter in which Petco reported an increase of 4.6% or better in

same-store sales. According to the publication that’s an unmatched streak in all of retail.

Petco’s sales record is a direct reflection of the high marks it earns for its efforts in creating and marketing a strong

healthy brand. However, an area in which Petco trails the competition is in product pricing. While both superstores own

the “premium” end of the retail pet marketplace they do lose significant revenue to the grocery stores and mass marketers

based on pricing of two core products: pet food and cat litter. While pet enthusiasts will pay $40 for a bag of all-natural

food, everyday “Joe Pet Owner” can’t or won’t and this segment of the marketplace is being underserved by the

superstores. Additionally, Petco is generally priced slightly higher than PetSmart, but it does underprice them in select

promotional offerings. PetSmart also earns significant income from high-revenue service offerings (veterinary services

and pet boarding services) in which Petco doesn’t compete.

The superstores definitely stand out from their other competition on the web by offering a multitude of social networking

opportunities as well as charitable services such as pet adoptions. However, Petco.com and Petsmart.com are eerily

similar to each other in layout and content.

www.Petsmart.com www.Petco.com

IV. BRAND EXPLORATORY

BACKGROUND

The marketplace for pet products has dramatically grown from the years when Rover was relegated to the backyard.

Today, a large category of current pet owners can be considered “pet enthusiasts” who are passionately committed to

their pets and regard their pet as a member of the family. These customers are the biggest buyers of a variety of new pet

products including clothing, costumes and novelty products, and they’ve also created a demand for services such as

luxury boarding, insurance and photography. The strong commitment of these owners for their pets is shown by some of

the 2007 statistics provided by the American Pet Association: 28.5 million dog owners purchased Christmas gifts for their

dogs; 9.8 million dog owners celebrated their dog’s birthday with a special treat, meal, cake, ice cream or new toy. And,

not to leave the cats out, 37 million got Christmas gifts and 13 million also had their birthdays celebrated.

If we consider consumer preference to be represented by marketshare, consumers clearly have ranked Petco (6% share)

behind PetSmart (12.7%). Another telling statistic is presented by the America’s Research Group (2005) in a national

study of consumer shopping preference between the top two ranking retailers in each channel. The report shows that out

of 1000 respondents 65.1% rate PetSmart as their Favorite Store (“Which do you shop at more often?”)

compared to 34.9% who prefer Petco. And further insight shows that while PetSmart has an 8.4% Rate of

Attrition (percent of customer base lost to the competition), Petco is losing 22.1% of their customers to PetSmart.

While the previous two indicators show that PetSmart has a significant advantage in the marketplace over Petco, the

annual Most Competitive Retail & Consumer Goods Study (wRating Corp., 2008) ranks Petco 10th out of 540-plus

companies when identifying the best performing companies through a method that blends financial and consumer data.

To arrive at the rankings, wRatings ask consumers how well companies meet their expectations every quarter. PetSmart,

while still ranking highly at #19, shows that it is vulnerable to the effective marketing efforts of the Petco team.

Petco brand managers keep an open dialogue with their customers through product rankings, The Den (a microsite that

combines all their Ask and Answer content), and most recently by adding video reviews to their website. All this customer

feedback provides Petco with a huge source of brand equity.

A brief brand perception study was taken in October of 2008 by the IMC 613 Brand Equity class at West Virginia

University. While the survey group was not representative of the U.S. population and the questioning wasn’t as in-

depth as typical proprietary research, the results did reveal interesting perceptions of the Petco brand. According

to the survey group, the Petco brand has 100% consumer recognition. 90% of the respondents surveyed also revealed

very positive feelings towards the brand while 10% were indifferent. These feelings were described as “cheerful”

“reputable”, “positive”, “clean and tidy” and “friendly environment.” The brand is doing a very good job of having its upbeat

personality reflected in the consumers’ perceptions at the same time as brand performance ideals are high.

The brand slogan “Where the Pets Go” was quoted without prompting by 30% of the respondents and was the single most

mentioned brand element. Many of the respondents also formed their feelings and judgments about Petco based on this

well-recognized slogan. However, only 10% of the respondents mentioned the brightly-colored Petco logo anchored by a

drawing of a blue cat and red dog sitting side-by-side.

As the brand Inventory revealed, that company executives position the brand so consumers know, “At Petco Animals

Always Come First…Our People Make it Happen.” This feeling was voiced as customers admitted that they patronized

the store since it welcomed their pets. Additionally, several respondents specifically mentioned Petco’s

employees and noted that they are “knowledgeable”, “customer-oriented” and “friendly.”

While respondents universally showed knowledge of the brand’s purpose to deliver a wide selection of pet products, the

responses rarely mentioned Petco’s second tier revenue source… its pet services. This indicates that the brand

manager could focus more marketing weight against the services if they want to grow that end of the business.

Overall survey results showed that consumers consider the Petco brand as memorable, meaningful, and likeable.

However, while the results didn’t explore brand associations of transferability and adaptability, it did reveal that the brand

is terribly exposed when it comes to the issue of protectablity. The protectablity doesn’t come in the form of legal rights

and brand logos. It is an issue where Petco has not protected their exclusive image in the mindsets of 60% of the

respondents. The key issue of concern is that 40% of the respondents could not differentiate Petco from their chief

competitor, PetSmart. A survey comment sums up the consensus from this group, “the one brand is the same as the

other to me.” An additional 20% could only mention the logo or slogan as a single unique brand element. It is also very

telling that not a single respondent identified themselves as exclusively brand loyal to Petco, and this includes the 40% of

respondents who had the highest brand knowledge. This final group should be the brand loyals, yet areas of

differentiation quoted were mild, such as, “Petco is smaller.”

According to the Keller textbook, “effective differentiation is the key to a successful branding strategy.” This statement

and the results from the 2008 survey come to the same conclusion. Petco can strengthen its position by developing a

marketing program that will differentiate itself once and for all from PetSmart.

V. RECOMMENDATIONS

OVERVIEW

As we learned from the brand Inventory, Petco generates half the annual revenue of its chief competitor, PetSmart. If

Petco wants to seriously challenge PetSmart’s position in the marketplace, it will take a very aggressive business strategy

supported by a potent branding strategy to reach this goal. Petco’s greatest potential for generating increased revenue

would be if the brand competed in two high-revenue service offerings: veterinary services and pet boarding. Additionally,

from a product standpoint, Petco could steal significant marketshare from all competitors by pricing its private label pet

food and cat litter below PetSmart, the grocery stores and mass retailers. While these business strategy

recommendations are not within the scope of this brand audit, they would be supported by the branding strategy

recommendations.

Petco has taken all the steps necessary to create a modern textbook brand; however, they still trail the category leader,

PetSmart by a significant amount. To increase brand equity Petco needs to concentrate on generating increased

awareness and differentiation through multiple marketing efforts. The following recommendations are offered:

Awareness

Retain all 2008 advertising vehicles, but increase brand-building media weight by running more frequent advertising

campaigns. The increased advertising flights should be in Television and Online Media. Television is recommended for

its ability to create mass awareness and online display banner campaigns are recommended for their ability to

strategically reach pet owners through behavioral targeting. The television messaging needs to differentiate the brand

from its competitors. Similarly the online campaign should differentiate, but also be used to advertise promotional pricing

and drive consumers to Petco.com where they can make a brand connection with social marketing features.

Target Segmentation

Create a subsegment that focuses on children and their pets. While pet retailers primarily focus their marketing efforts on

the typical pet consumer, a 44 year old woman, children drive a large percentage of household consumer purchases.

Beginning with Build a Bear, children have practiced buying clothing, toys and accessories for their make-believe pets.

Through the Internet and social media sites such as Club Penguin and Neopets, children have also practiced being

consumers as they house, clothe and accessorize their virtual pets. Two suggested programs would include a loyalty

program where kids earn Petco points, and a student sales program that could also benefit the schools (similar to a Sally

Foster gift wrap program that encourages kids to sell Petco products to their family and neighbors.)

Strategic Partnerships

In order to increase awareness and build brand equity Petco should extend its pro baseball relationship by creating a set

of branded trading cards featuring Major League Baseball players and their pets. An extension of the concept could be

offered to kids online that allows them to create and personalize cards for their own pets.

Additional partners should be approached such as: Yahoo, MSN or AOL (by having Petco provide content or sponsoring

lost pet or adoption pages); local zoos (by sponsoring a petting zoo or learning exhibit); an upscale spa (that offers spa

treatments to women and their pets within the same facility); and Party City and Baskin Robbins (to create an entire

branded line of Petco party decorations and ice cream cakes to encourage a pet party craze.

Brand Ambassador Program

Petco should initiate a brand ambassador program. Members could be leaders of local dog breed Meet-Up Groups.

Additionally, the company could foster its relationship with its core demographic, Women 25-54, by using brand

ambassadors to host Petco product parties in their homes.

Brand Experience

Camp Petco could be developed as a place to give consumers a true brand experience and include such features as a

camping facility, obstacle course, play and swimming area, hiking trails, etc. Brand ambassadors and consumers could

earn points through the loyalty program to qualify for a trip.

Website Design

A final brand recommendation encourages Petco to work on differentiating itself from PetSmart through its website.

Design elements should be distinct and new features such as branded gaming sections and blog builders could be

incorporated.

The Petco brand is strong and profitable. However, adopting an aggressive business and marketing strategy for 2009

could head the brand to the front of the pack.

PART 2: CREATIVE CHALLENGE

I. Target Audience/Day in the Life

TARGET MARKET

-Demographics. Petco primarily focuses their marketing efforts on the typical pet consumer, a 44 year old

woman. However, pet owners come in all demographics which provide a lot of segmenting opportunities.

-Psychographics. “Pet enthusiasts” who are passionately committed to their pets and regard their pet as a

member of the family are Petco’s primary target. These customers are the biggest buyers of a variety of new pet

products including clothing, costumes and novelty products, luxury boarding, insurance and photography.

-Geographic concentration. While Petco has a national footprint, many pet consumers rank location convenience

extremely high. Petco’s range is limited by consumer distance in many areas.

-Usage factors. While every brand would like to just concentrate on their brand loyals, Petco will never grow in share if

this group is their only focus. While 94% of U.S. pet revenue goes to other retailers, Petco needs to focus not only on

developing more brand loyals, but also on attracting new category users and potential brand switchers.

A Petco Consumer Story . . . . . . . .

Meet Valerie. She’s 46 years old and lives in San Elijo, a suburb of San Diego. Valerie is divorced

and after she lost her parents she decided that she needed some unconditional love in her life. She

doesn’t have any children… or does she?

Meet Joey. He’s a Golden Retriever who was adopted by his mom,

Valerie. Joey loves taking walks, swimming, getting toys and having play

dates. Joey eats premium Nature’s Balance and has his own pet

insurance policy. Even though Valerie devotes her life to Joey, she can’t play with him when she’s working from home.

Meet Kalani. She’s Joey’s new sister and she has completed Valerie’s

family. When she came along Valerie had to buy a new SUV Lexus so

they all had enough room when going to the doggie park.

Valerie loves to shop at her neighborhood Petco since she can take

her babies in with her. When they’re in the store they can’t resist

shopping for Halloween cards to send their friends in the Golden

Retriever Meet Up Group.

Today will be a great day since the family is going to a birthday party

for one of their friends, Buddy, and after they swim, have an ice cream

social and a nap they may even stay for a sleepover!

II. Creative Strategy

THE PROBLEM

Despite strong branding efforts Petco trails the category leader, PetSmart significantly in sales. Personal research also confirms that many consumers can’t differentiate between the two brands, or if they can, they don’t have any reason to be brand loyal to Petco.

The hypothetical marketing director intends to differentiate the brand and increase sales by initiating a loyalty and brand ambassador program directed initially to kids…and eventually to parents and teachers.The premise is to market and build loyalty with your future consumers and to have children influence the shopping behavior of their parents. The program will eventually benefit the schools when Petco allows the participants to use product sales as a fund raising source such as the Sally Foster Giftwrap sales program.

STRATEGY STATEMENT

The Advertising will convince school aged kids (5-14) to register and participate in the Petco Kids and P.A.L.S. program

that is exclusively offered by Petco and available to any kid who has a real, sponsored or virtual pet and

will provide fun, friendship, rewards, recognition, social benefits and companionship.

The Support will be justified by the success of television kids’ clubs of the ‘80’s, Beanie Babies and Build-A-Bear, and the child/computer behavior exhibited in websites such as Club Penguin and Neopets.

The Tone will be fun, cute and amusing.

III. Creative Briefss

CREATIVE BRIEF I - Original

Why are we advertising? To launch a new brand ambassador program that will build brand

equity and brand loyalty among children and eventually extend to parents and teachers.

Whom are we talking to? School aged kids in grade school and middle school who have a pet

(real, stuffed or virtual) and love to use computers for social networking with friends and

playing games. These kids are also competitive and positively respond to point-based

programs to earn rewards. The kids like to share their interest in pets with their friends and

family and love to buy real or virtual products for their pets.

What do they currently think? I love animals and have fun showing my pets off to friends. I

love to visit pet stores where I can see real animals and pick out toys, treats and clothes. My

mom buys the food and supplies for our pet, but I’m not sure where she always gets it.

What would we like them to think? I want to join the Petco Kids and P.A.L.S program where I

can register my pet(s), have fun with my friends and earn prizes.

CREATIVE BRIEF I - Print

Why are we advertising? To support the launch of a new brand ambassador program that will

build brand equity and brand loyalty for Petco.

Whom are we talking to? Teachers and parents of school kids.

What do they currently think? The school district can no longer provide basic supplies for our

classrooms. We need consistent and easy fundraising opportunities. Parents additionally

think: I value my child’s education and I’d love to support my schools especially if I can do it

with every day purchases.

What would we like them to think? I want to join the Petco Kids and P.A.L.S program where I

can earn desperately needed supplies for our classrooms without any additional cost.

What is the single most persuasive idea we can convey? Petco offers a program that easily

allows teachers and parents to support our schoolrooms.

Why should they believe it? Petco offers program support in their stores and on their website.

What is the personality we want to convey? Fun and persuasive.

What are the specific media needs? 2 print ads

CREATIVE BRIEF II - Radio

Why are we advertising? To support the launch of a new brand ambassador program that will

build brand equity and brand loyalty for Petco.

Whom are we talking to? Teachers and parents of school kids.

What do they currently think? The school district can no longer provide basic supplies for our

classrooms. We need consistent and easy fundraising opportunities. Parents additionally

think: I value my child’s education and I’d love to support my schools especially if I can do it

with every day purchases.

What would we like them to think? I want to join the Petco Kids and P.A.L.S program where I

can earn desperately needed supplies for our classrooms without any additional cost.

What is the single most persuasive idea we can convey? Petco offers a program that easily

allows teachers and parents to support our schoolrooms.

Why should they believe it? Petco offers program support in their stores and on their website.

What is the personality we want to convey? Fun and persuasive.

What are the specific media needs? 1 :60 radio spot

CREATIVE BRIEF III- Television + Internet

Why are we advertising? To launch a new brand ambassador program that will build brand

equity and brand loyalty among children and eventually spread to parents and teachers.

Whom are we talking to? Kids in grade school and middle school who have a pet (real, stuffed

or virtual) and love to use computers for social networking with friends and playing games.

These kids are also competitive and positively respond to point-based programs to earn

rewards. The kids like to share their interest in pets with their friends and family and love to

buy real or virtual products for their pets.

What do they currently think? I love animals and have fun showing my pets off to friends. I

love to visit pet stores where I can see real animals and pick out toys, treats and clothes. My

mom buys the food and supplies for our pet, but I’m not sure where she always gets it.

What would we like them to think? I want to join the Petco Kids and P.A.L.S program where I

can play, have fun with my friends and earn prizes.

What is the single most persuasive idea we can convey? Petco offers a club for kids and their

pets that provides fun, prizes and a chance to win a puppy or kitten

Why should they believe it? Petco offers program support in their stores and on their website.

What is the personality we want to convey? Fun, cute and playful.

What are the specific media needs? 1 :60 TV spot, 1 :15 TV spot, 2 banner ads

IV. Prints

TEACHER’S PET

Every teacher’s pet can support

our schools!

Join the Petco Kids & P.A.L.S. Club and learn how easy

everyone in your class can earn classroom supplies with

their pet purchases. www.petcokids&pals.com

Even parents can be the

TEACHER’S PET

when they join the Petco Kids & P.A.L.S. Club and support our

schools by turning every day pet purchases into needed

classroom supplies. www.petcokids&pals.com

V. Radio + Internets

PETCO “Teacher’s Pet” :60 Radio

SFX: BARKING DOGS, A CAT CHASE WITH SCREATCHES, BIRDS CHIRPING

TEACHER: (YELLING ABOVE THE NOISE) Ok class, let’s settle down now! We need to

finish taking attendance before we move on to our lessons for the day.

(ANIMAL “TALKING” QUIETS) Now where were we?

(YELLING OUT) Sparky?

SFX: SMALL DOG SINGLE BARK RESPONSE

TEACHER: (YELLING OUT) Tuffy?

SFX: CAT MEOW

TEACHER: Polly, are you in class today?

SFX: (PARROT) Polly wants a cracker!

TEACHER: No, dear, it isn’t snack time yet.

(FADING UNDER) Bowser, please keep your paws to yourself.

SFX: DISTANT DEEP BARK

ANNOUNCER: Right now there is an entirely new set of teachers’ pets helping out in the

classrooms. When you sign up for the Petco Kids and P.A.L.S. program

your every day pet purchases help provide needed supplies for our

schools throughout the year. It’s easy to join by visiting w-w-w.

PetcoKids&PALS.com or by stopping in for more information at any of our

neighborhood stores.

Parents, please let Petco care for your pets AND help support your child’s

education at the same time. Teachers, if you sign up your class you’ll

automatically earn a one hundred dollar reward certificate to start off the

program.

At Petco, animals and kids always come first!

SFX: DOG BARKING

TEACHER: Yes, I see that. Boots, stop drinking the water out of Nemo’s fish bowl!

SFX: CAT MEOW, UNDERWATER BUBBLE SOUNDS

PETCO “OMG” :10 Online Banners

OMG!

vote 4

ur favorite photo and win $$$!

CLICK HERE

(The 4 photos fade in and out in top left position via flash)

OMG!

play games!

win prizes!

join 4 free now!

CLICK HERE

(The above copy will appear via flash as typed text one letter at a time)

VI. Televisions

PETCO “Kids and PALS CLUB” :30 TV

2/3 LEFT SPLIT SCREEN 1/3 RIGHT SPLIT SCREEN AUDIO

1. CU PUPPY RUNNING INTO CAMERA SHOT CUTE MUSIC UNDERTITLE (WHITE ON RED):“SEE SPOT RUN”

2. CUT TO CU PUPPY ROLLING ON LAPTOP COMPUTERTITLE (WHITE ON RED):“SEE SPOT PLAY”

3. CUT TO CU PUPPY DIGGING/”TYPING” SFX: KEYBOARD TYPING

4. CU HOME PAGE OF PETCO KIDS AND PALS CLUB TITLE (WHITE ON RED): SFX: KEYBOARD TYPING“SEE SPOT JOIN”

5. MS PET TOYS & CLOTHES SFX: KEYBOARD TYPINGTITLE (WHITE ON RED):“SEE SPOT EARN POINTS AND PRIZES”

6. MS KITTENS AND PUPPIES FROLICK ON LAPTOP TITLE (WHITE ON RED):“SEE SPOT INVITE ALL HIS FRIENDS TO JOIN”

7. FULL SCREEN CLOSING SLIDE (SEE NEXT PAGE) ANNCR 1 (VO): THE PETCO KIDS AND PALS

CLUB…FREE TO KIDS WITH

PETS OF ALL KINDS

WEBSITE ADDRESS TYPES OUT “www.PetcoKidsAndPals.com” ANNCR 2 (VO): A PUPPY ANDONE LETTER AT A TIME (BLUE) KITTEN ARE GIVEN AWAY

EACH DAY. JOIN TODAY!

(CLOSING SLIDE SHOT)(“KIDS AND PALS CLUB” LOGO REPLACES “WHERE THE PETS GO”)

www.PetcoKidsAndPals.com

PETCO “Kids and PALS CLUB” :15 TV

2/3 LEFT SPLIT SCREEN 1/3 RIGHT SPLIT SCREEN AUDIO

1. CU KITTEN RUNNING INTO CAMERA SHOT CUTE MUSIC UNDERTITLE (WHITE ON RED):“SEE KITTY RUN”

2. CUT TO CU KITTEN DIGGING/”TYPING” TITLE (WHITE ON RED): SFX: KEYBOARD TYPING“SEE KITTY PLAY GAMES”

3. CU HOME PAGE OF PETCO KIDS AND PALS CLUB TITLE (WHITE ON RED): SFX: KEYBOARD TYPING“SEE KITTY JOIN”

4. CUT MS KITTENS AND PUPPIES FROLICK ON LAPTOP “SEE KITTY ENJOY WITH FRIENDS”

5. FULL SCREEN CLOSING SLIDE (SEE NEXT PAGE) ANNCR 1 (VO): THE PETCO KIDS AND PALS

CLUB…FREE TO KIDS WITH

PETS OF ALL KINDS

WEBSITE ADDRESS TYPES OUT “www.PetcoKidsAndPals.com” ANNCR 2 (VO): A PUPPY ANDONE LETTER AT A TIME (BLUE) KITTEN ARE GIVEN AWAY

EACH DAY. JOIN TODAY!

(CLOSING SLIDE SHOT)(“KIDS AND PALS CLUB” LOGO REPLACES “WHERE THE PETS GO”)

www.PetcoKidsAndPals.com

VII. Non-Traditional

PetcoKids&Pals.com Interactive Website

The Home Page on the microsite will combine visual continuity and live photography from the main Petco.com website yet

use more vibrant coloring and animated features such as from ClubPenguin.com.

PetcoKids&Pals.com Content Categories

-Member Room. Membership details and management pages for kids, includes invitation sender for friends

-Teacher’s Store. Teacher log-in page, membership point management, classroom supply store

-Parent’s Corner. Program benefit details.

-Game Room. A variety of games where members play to earn points for exchange at the PALS Store.

-PALS Store. Point exchange store for Petco products, prizes, trips to Camp Petco

-Virtual World. An animated, virtual “Second Life” for pets

-Design Shop. Members create E-cards, pet trading cards, print & banner ads; and access desktop wallpaper,

-Blog Builder. A template members use to build a blog about their pets. Members can also post their blogs.

-Pet Gallery. Members post their pet photos, avatars and videos.

-Chat Room. Kid brand ambassadors lead the chats.

-Calendar. Local community event pages.

Kids and Pals “Camp Petco” Experiential Marketing

Camp Petco is a branded campground where kids can take their pets and families for a playful weekend experience.

This experiential camp allows consumers of all ages to connect with the Petco brand and their pets in a personally

relevant and memorable way. Invitations to Camp Petco are earned through point accumulation.

Camp features include family and pet tents and cabins; doggie pool and doggie beach; pet obstacle courses and mazes;

puppy and kitten playrooms, campfire and chuck wagon, etc.

Camp events would include pet fashion shows; seasonal costume contests, pet parades, pet magic shows, professional

pet photo shoots, family & pet treasure hunts, pet trick classes, etc.

VIII. Summary

(Kids + Pets + Teachers + Parents) + (Petco Kids & Pals Campaign) = Brand Equity x 2

REFERENCES:

Keller, K. (2002). Strategic Brand Management: Building, Measuring, and Managing Brand Equity

http://www.hoovers.com/pet-stores/--ID_222--/free-ind-fr-profile-basic.xhtml

2006 Petco Annual Report. Retrieved September 28, 2008.

http://appma.typepad.com/pet_industry_insight/2008/04/president-of-th.html

http://www.instoremarketer.com/article/43633

http://www.brandweek.com/bw/esearch/article_display.jsp?vnu_content_id=1001021749

http://www.brandweek.com/bw/content_dieplay/news-and-features/licensing/imw=Y

http://online.wsj.com/article/SB120424814122801745.html

http://www.instoremarketer.com/article/43633

http://promomagazine.com/retail/marketing_pet_friendly

http://proquest.umi.com.www.libproxy.wvu.edu/ pqdweb?vinst=PRO

Anonymous. Shoppers reveal dirty little secret: Loyalty is not forever. DSN Retailing Today.

New York, 11/7/05.

Doug Desjardins. DSN Retailing Today. New York: Mar 28, 2005. Vol. 44, Iss. 6; pg. 6, 1 pgs