Manco & Copeland JWU | MRKT2050 FRUZZETTI

What’s in your Pedigree? A RESEARCH PROPOSAL FOR GENETIC DOG TESTING

MANCO & COPELAND 1

Table of Contents Introduction to the Problem ...................... 2

Prioritizing the Problems ........................... 2

Justifying the Problem ............................... 3

Literature Review ....................................... 4

Objectives .................................................. 7

Hypothesis ................................................. 8

Research Methodology .............................. 8

Work Plan ................................................... 9

Budget ...................................................... 10

Administration and Utilization ................ 10

Proposal Summary ................................... 11

Works Cited .............................................. 12

MANCO & COPELAND 2

Introduction to the problem:

You’re walking by all of the kennels at the local animal shelter. There’s an adorable

black little puppy labeled as “Black Lab”, but it doesn’t look quite like all of the other labs

you’ve seen. What if it’s actually a Cane Corso Mastiff, whose puppies look like Black Labs

and are known to grow up to 130lbs.? Have you ever wondered if your “Husky” from the

animal shelter is truly a Husky mix? Who’s to say that your German Shepherd that you paid

$2,500 for, is truly a pure-bred? You would know all of these things if DNA testing for dogs

was more readily available and reliable.

Prioritizing the Problems:

The main problem is that there is currently no standard procedure for identifying dog

breeds that is both accurate and reliable. This problem leads to many sub problems, most

notable that, according to the Humane Society, over 2.7 million dogs and cats die in

shelters each year.. Many of the dogs are euthanized due to potentially being an unwanted

mix, such as pit bulls and other similar breeds. If you walk into any shelter, you will find that

almost any large, stocky dog with a square head is labeled a “Pit Bull mix”, while almost any

toy breed dog is labeled a “Chihuahua mix”. Both the Pit Bull and the Chihuahua are the

most common breed amongst shelters, and both have their own negative stigmas. The Pit

Bull is associated with being aggressive and the Chihuahua is associated with being yippy

and obnoxious. Both breeds are difficult to adopt out. With DNA testing, we could prove that

all the large, built dogs are not in fact Pit Bulls and all of the toy breed dogs are not actually

Chihuahuas. It’ll make it easier for shelters to find homes for their animals if a guaranteed

test could be implemented and determined the correct breed(s).

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Another issue with the lack of genetic testing for dogs is the market for purebreds.

While purebreds are highly desired for show and breeding, puppy mills and other

questionable practices have cropped up, with many puppies growing up to develop physical

and mental abnormalities due to unethical breeding applications. If there was a reliable test

available that could both confirm the purebred nature of the dog, while also able to test for

genetic diseases, this could solve many problems that pet owners have when they either

pay too much for a mix claimed to be purebred or are unaware of the vet bills to come down

the road from poor breeding.

Finally, a third problem, although not nearly as serious, is satisfying the curiosity of

the everyday pet owner. While issues of breed verification and hereditary diseases is also

an area for concern, many are just eager to know for certain what kind of dog they have,

mix or otherwise.

Justifying the Problem:

. If DNA testing for dogs was more readily available, we believe that would benefit

two distinct groups of pet owners, along with animal shelters. People would be more likely

to adopt if they knew the exact breed they were adopting, and what to expect out of that

breed. Different breeds have different exercise, grooming, and dietary needs as well as

there are certain diseases that are predisposed due to the breed. For example German

Shepherds are notorious for hip dysplasia, Shar-Peis are known to suffer from allergies/skin

conditions, and Mastiffs commonly suffer from arthritis. The issue of aggression and

biddability also comes up. Certain breeds are notorious for being more aggressive, such as

the Cane Corso Mastiff, while other breeds are easier to train, such as the Border Collie.

Not only do we believe DNA testing will help with adopting dogs out of shelters, we believe

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it would help current owners of mixed breed dogs better care for their dogs for the same

aforementioned reasons.

Shelters aside, DNA testing also has a place in high end breeding programs. Many

serious breeders already DNA test as required by the AKC (American Kennel Club). The

AKC requires that any dog that sires more than seven litters in a given calendar year must

be DNA tested. The puppies in that litter must be DNA tested as well. This is an attempt to

keep breeders honest and pedigrees pure. We believe that this same methodology could be

utilized by all breeders. Most professional breeders (sadly, not the case with puppy mills) do

not have any dog that sires more than seven litters a year. As a result, this makes DNA

testing a non-requirement for them. We however believe that they could still in fact benefit

from DNA testing. The availability of DNA testing would allow reputable breeders to keep

their pedigrees pure and to only improve their breeding program and lineage of their dogs.

Reputable breeders already spend thousands of dollars a year on OFA testing, titling and

trialing their dogs. If DNA testing was readily available to them, we believe this is a service

that they would take advantage of.

Literature Review:

MRI+

In order to better understand who we would be speaking with on the consumer

end, we researched MRI+ to identify key demographics. We had our own inherent

sense of who the average pet owner would be from our personal experience, but the

numbers showed us that the expected dog owner was female, a little older, had a higher

income, and married with kids. With the following indices in mind, we believe that we

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can determine a key group of dog owners who are passionate about their dog and

would love to find out more about their breed:

Demographic Dogs

Women 105

White 110

At least a college education 102

45-54 124

at least $50,000 HH income 111

Currently Married 117

With children aged 12-17 137

Animal Speciality Services, Except Veterinary

Gale Business Insights: Global Edition

This source was invaluable in helping us identify that animal shelters were in need of

additional resources. With 2.7 million animals euthanized, many of whom simply because

there is no home to take them in, there is no easy one-step fix. But, if genetic testing was

adding to the screening process for animal intake, it might help cut down the $2 billion spent

in tax dollars spent on collecting homeless animals and then euthanizing them.

Animal Specialty Services, Except Veterinary

Encyclopedia of American Industries

MANCO & COPELAND 6

We had a general idea about the impact of genetic testing for dogs at shelters, but it was

this source that showed us that consumers would be interested in the product as well.

Prominent companies, such as Mars Veterinary, have already created basic DNA tests and

is available for approximately $60 at select pet stores and online. As well, this source

identified that major organizations, including the Orthopedic Foundation for Animals,

strongly recommend genetic testing to improve breeding practices and prevent more

puppies being born with medical issues.

Pet Products and Services

Encyclopedia of Emerging Industries

While this source did not speak directly to the potential market value of genetic testing, it did

reveal the growing nature of the pet care industry. Across the world, this industry is

expected to reach $74.8 billion by 2017. During the recession that began in 2008, pet care

and products were one of the few areas that grew while the majority shrunk with the

economy. People love their pets and want the best for them. Combined with the rising trend

of pet insurance and more consistent grooming and vet services, we strongly feel that

genetic testing could fit nicely into the niche of the pet owner willing to provide the best care

for their dog.

Amazon

After discovering that some DNA tests were available on the market, we decided to see

what users were leaving in their review of the products and different brands available.

Overall, it was a mix of responses. Some felt that it provided some ease of mind, knowing

the exact makeup of their dog up to the grandsires. Others were less impressed. A few

claimed that they already knew what breed their dog was (for example, they knew the

MANCO & COPELAND 7

parents of their pup) so they tested the product to see how accurate it was. Sadly, it was not

a landslide for any of them. It should be noted that these tests gather their results from a

cheek swab, which previous research showed was a weaker way to determine genetic

traits. If there was a way to improve this form of testing, or make the more accurate blood

tests available, we might be able to persuade these dissatisfied owners into believers again.

Objectives:

Our first objective to move forward is to find out a better understanding of the

interested parties. If we believe shelters would be interested, we would have to validate

that. Would it entail some type of partnership with a veterinarian that would do the DNA

testing? Is it something they even have the funding for? Is the risk that the investment into

DNA testing would adopt out more dogs a risk they are willing to take? How much do

current mixed breed dog owners care about knowing the true identity of their dog? How

much do breeders care about improving their breeding programs and ensuring the breeding

of only 100% pure breed dogs? Is this something that pet insurance companies would be

interested in? When you buy pet insurance, the price varies depending on the breed and

the known health issues with that breed. Breeds with a higher number of health issues are

more expensive to insure. If the pet insurance companies were able to have a positive DNA

test of the dogs they insure, than insuring that dog would be less risky.

Our next object is that we would have to find out how much breed plays into the

criterion of people when selecting a dog. Do people care if they know the true identity of

their dog? We would also have to conduct research into price points. How much could the

average shelter afford on DNA testing? How much are breeders that already spend a lot of

MANCO & COPELAND 8

money on their dogs willing to pay? If DNA testing was readily available, we believe these

three distinct groups would take advantage of the service.

Hypotheses

We hypothesize the following points:

Animal shelters will embrace the genetic testing and can internalize the costs

through partnerships with vet offices and offering genetic testing to the community

outside of the adoption process.

Dog breeders will answer the increased awareness of poor breeding by increasing

their usage of genetic testing to prove breed and determine hereditary diseases.

Pet owners, especially those who adopted from a shelter, will respond well to this

type of product, so long as it is accurate and a fair price-point.

Research Methodology

To gather our research we intend to do a minimum of three focus groups, one

centered around each of the potentially interested parties. One focus group with owners of

mixed breed dogs, one focus group of animal shelter workers and one focus group of dog

breeders. We would find willing participants that are mixed breed dog owners through dog

training facilities, kennels, dog daycare centers, etc. Shelter workers that would be willing to

participate could simply be found by reaching out to the shelters. Breeders can be found

through the AKC’s database. Incentives for the participants would be free DNA testing for

their dog. When the results of the DNA test come back, we would want to send a follow up

survey to gauge the participant’s thoughts on the DNA test.

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In addition to the focus group we also intend to conduct surveys. We want to send

out at least a minimum of 601 surveys to pet owners. The intentions of the surveys are to

gauge interest level and price points on a national level, as the focus group work would be

limited by region. Surveys could be administered through popular forums, social media

pages, paper surveys administered at shelters, veterinary clubs and dog specific events

(conformation shows, obedience trials, agility trials, etc.).

Finally, we intend to conduct observational research and interviews in animal

shelters, following potential owners as they walk through the kennel and see the available

dogs for adoption. From this, we hope to gather some information on how they select a dog

to take home and the impact of breed on that information. We would pull those who do

ultimately end up adopting in order to delve into what made them decide that this dog was

the perfect dog for them. Overall, we hope to be able to do this in around five large shelters

in various regions of the country and pull 5-10 interviews from each location.

After we collect the surveys, we would run cross-tabulations on the impact that

various demographics, such as gender, income, or age, have on the interest level and price

point for genetic testing. Combined with the insights gathered from the observational

research, interviews, and focus groups, we’ll have a solid understanding on how strongly

pet owners want to know for certain what kind of dog they have.

Work Plan

For a timeline, we expect that the focus groups will take 3 months to complete. The 3

month timeline is factoring in the time it takes for the DNA testing results to come back, and

to conduct the follow up survey once results are released. We expect that the surveys will

take one month to be distributed, and analyzed. As for the combined observational research

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and follow-up interviews, we estimate that will take 1-2 months to complete depending on

adoption rates and respondents willing to be interviewed.

Budget

We estimate that each focus group would cost in the area of $8,000-$10,000. This

would include the cost of the moderator, the facility as well as the cost of the incentives. We

estimate that each survey that is distributed would cost an average of $10. This would be

roughly $6,010 for all of the surveys we intend to distribute. We estimate that the

observational research will cost roughly $6,000, using technology instead of observational

researchers will keep costs down. That brings the budget’s grand total to $30,010-$42,010.

Administration and Utilization

As this will be a long process spread out across the country, the research would be

implemented by data collectors working for custom research firms. They have the resources

to focus on this project and collect the data for analyzing.

Along with gathering the data, they will be responsible for monitoring the collection. If

an unexpected issue arises or if a sudden interest pops up in the mainstream, they will

report back to us so we can determine if any changes need to be made.

After monitoring and collection is complete, we will analyze and present the

information to the following potential users of this data:

Large animal shelters across the country, particularly those who deal with a large

amount of “Unadoptable” dogs, such as Pit Bulls. Specifically, we will present this to

shelters in large urban areas with limited room and resources.

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The American Kennel Club and other breed-affiliated organizations. By proving that

there is a real demand for genetic testing, along with a way for many to easily

access it with accurate results, they can then mandate that their members use this

type of genetic testing in the future.

Large pet and mass retail stores including Petco, Petsmart, Walmart, and Target.

Currently, these stores offer the basic cheek swab DNA tests at approximately $60.

If we can show that there is a real demand for a better type of this product with a

better price-point, they can use this research to better serve their pet-owning

customers. As well, Petco and other pet-specific stores could offer the genetic

testing as a service, much like they do with grooming and training. It would be

another source of income for them, as well as being able to offer specific breed

items once the customer knows for certain what kind of dog they have.

Proposal Summary

In conclusion, we feel that there are a variety of parties that would be interested in

this data. The implementation of this new DNA testing could benefit many different parties

financially, as well as many individuals on a personal level.

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Works Cited

Amazon "Animal Specialty Services, Except Veterinary." Gale Business Insights: Global Collection.

Gale,

Cengage Learning, 2014. Business Insights: Global. Web. 10 Nov. 2014.

"Animal Specialty Services, Except Veterinary." Encyclopedia of American Industries. Farmington

Hills, MI: Gale, 2014. Business Insights: Global. Web. 10 Nov. 2014.

MRI+ "Pet Products and Services." Encyclopedia of Emerging Industries. Farmington Hills, MI:

Gale, 2014. Business Insights: Global. Web. 10 Nov. 2014.