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Mobile Pet Grooming Marketing Plan

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Submitted By dianashelton
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Submitted to: DeVry University - BUSN319
4/15/2012
Marketing Plan ii | P a g e
Table of Contents
Executive Summary ...................................................................................................... 1
Company Description ................................................................................................... 2
Strategic Focus and Plan ............................................................................................... 2
Mission Statement ................................................................................................................... 2
Goals ....................................................................................................................................... 2
Competitive Advantage ............................................................................................................ 3
Situation Analysis ......................................................................................................... 3
SWOT Analysis ......................................................................................................................... 3
Industry Analysis ..................................................................................................................... 4
Competitor Analysis ................................................................................................................. 5
Company Analysis .................................................................................................................... 5
Customer Analysis ................................................................................................................... 5
Market-Product Focus .................................................................................................. 6
Marketing and Product Objectives ............................................................................................ 6
Target Markets ........................................................................................................................ 6
Points of Difference ................................................................................................................. 6
Positioning .............................................................................................................................. 7
Market-Product Grid ................................................................................................................ 7
Marketing Program ...................................................................................................... 8
Product Strategy ...................................................................................................................... 8
Price Strategy ........................................................................................................................... 9
Promotion Strategy .................................................................................................................. 9
Place Strategy ........................................................................................................................ 10
Financial Data and Projections .................................................................................... 11
Past Sales Revenues ............................................................................................................... 11
Break-even Analysis ............................................................................................................... 11
Five-Year Projections ............................................................................................................. 12
Organizational Structure ............................................................................................ 12
Implementation .......................................................................................................... 12
Evaluation and Control ............................................................................................... 13
Possible Deviations ................................................................................................................ 13
Possible Solutions .................................................................................................................. 13
Bibliography ............................................................................................................... 15
Appendices ................................................................................................................ 16
Promotional Materials ............................................................................................................ 16
1 | P a g e
Executive Summary
Pampered Pet Mobil Grooming is a premier mobile pet grooming service. This marketing plan illustrates our market segments and the strategies we are employing to get customers and create a solid revenue stream.
We are not just any pet grooming service. Our unique focus brings pet grooming services to the client’s home gives us an advantage over our competitors by giving customers a new approach to getting his or her pet groomed. This fills a read need of middle to upper income pet owners as well as seniors and other consumers unable to commute to get his or her pet groomed.
In two years of operation, Pampered Pet Mobil Grooming has claimed a niche of serving busy, middle- and upper-income class families. In 2012, we will continue building this base by marketing our unique combination of pet grooming services, provide the best mobile pet grooming service with the highest level of professionalism, safety, and compassion for our client’s pets.
We will market to adult and senior consumers with more than one pet, living in detached, semi-detached homes or townhomes earning high- and middle-income.
Pampered Pet Mobile Grooming will utilize both push and pull promotional strategies.
Pull promotional strategies include placing ads in the local community newspapers and
HOA newsletters regarding our services along with a percentage off coupon. There are several exclusive senior communities, which will allow Pampered Pet Mobil Grooming to drop brochures off for residents. One push promotional strategy is by participation at the local pet trade shows that occur three times a year at different venues.
In comparing ourselves to the competition, Pampered Pet Mobil Grooming truly does have unique benefits to offer pet owners – time-savings, clean surroundings, and groomers trained in the latest techniques.
Based upon last year’s sales and the targeted markets analysis, we project a sales forecast for 2012 of $175,600. Pampered Pet Mobile Grooming expects to maintain a 15% sales increase each year for the next five years.
2 | P a g e
Company Description
Pampered Pet Mobile Grooming is a new pet grooming service in Northern
Virginia. Owners Dee Dee and Joe Simpson saw a need to service individuals who are older and cannot get their pet to the groomer or those who want the convenience of grooming at their doorstep. Northern Virginia has a population of approximately 1.5 million of which 6.9% are 65 years and over. There are also a high percentage of persons employed by the Federal government directly through either government departments and agencies or contractors servicing those areas. A large portion of the population has income between $35,000 and $75,000 (American Fact Finder, 2007).
The Simpsons are not new to the pet grooming industry. Together they have 15 years of experience pampering pets. Pampered Pet Mobile Grooming professional staff members include Certified Master Groomers who are specialists at trimming to AKC
Standards. In addition, the staff is also qualified in pet CPR and first aid. They are also experienced at grooming techniques for Generic Personality Standard, (mixed breeds).
Mobile pet grooming is professional dog and cat grooming, self-contained, in a custom van that arrives at the customer’s door to take care of their pets grooming needs. Our mobile salon is completely equipped to afford our customers the utmost in service. A generator furnishes electricity to the dryer, table, clippers, A/C, vacuum, lights and more! A hot water heater ensures the perfect bath temperature and a therapeutic bathing system cleans and soothes every pet.
Strategic Focus and Plan
Mission Statement
Our mission is to provide the best mobile pet grooming service with the highest level of professionalism, safety, and compassion for our client’s pets.
Goals
(a) nonfinancial goals
i. Increase existing client base by 25% within 2 years ii. Within 5 years expand to have 2 mobile grooming vans
3 | P a g e iii. Within 5 years become the number 1 mobile pet grooming service in
Northern VA
(b) financial goals
i. recover cost of new mobile grooming van within 4 years ii. within 1.5 years begin making a profit from combined sales of services and products iii. Within 2 years, be able to set aside 2% of profits to provide pro-bono services to needy seniors
Competitive Advantage
Pampered Pet Mobile Grooming values the health and well-being of all pets. The modern mobile grooming van is spotlessly clean, providing a sanitary and safe environment for all grooming procedures at affordable prices.
Situation Analysis
SWOT Analysis
The SWOT (Strength, Weakness, Opportunities, and Threats) analysis provides a brief description of the present environment in which Pampered Pet Mobile Grooming is operating. This is a quick overview of our position among internal and external forces influencing our operating strategies.
Strengths Weaknesses
Internal
Forces
• highly trained staff
• High start-up costs – buying a mobile grooming van
• Pet grooming services are in high demand • Unforeseen health issues with client’s pet while under our care
• Owners are experience pet groomers
• Potential legal issues with unhappy clients • Owners have an existing client base from earlier business
External
Forces
Opportunities Threats
• highly educated population • Other pet grooming services in area
• Area population above national average income
• Due to weak economy, demand may not be as great
• Large number of pet owners in area
4 | P a g e
Figure 1. Environmental scan of today’s marketplace
Industry Analysis
The Pet Grooming industry is booming, and has proven to be one of few recession-proof industries. Although consumers decreased spending on most other goods and services during the recession, revenue for the Pet Grooming industry grew over the past five years (Moldvay, 2011). In fact, industry revenue nearly doubled over the past decade as consumers began purchasing a wider array of luxury services for their four-legged companions. This trend has been driven in part by changing consumer attitudes toward pets.
Consumers are expected to spend more on pets as per capita disposable income rises with slightly brighter employment prospects after the recession. Pet ownership has been on the rise over the past two decades, which also positively affected industry sales. Currently, there are an estimated 183 million pet cats and dogs in the United
States (AVMA, 2007). With increasing pet ownership, there is greater demand for grooming services.
5 | P a g e
Competitor Analysis
Industry competition is high and increasing, as there are many small companies operating in the industry. The two dominant players in the industry are PetSmart and
Petco Animal Supplies, which together account for 18.4% of revenue (Moldvay, 2011).
These companies provide pet products in conjunction with pet grooming services.
Competition with other groomers is based mainly on location, price, quality of service, and customer loyalty. Industry operators hold a significant competitive advantage if their establishment is in a highly visible location with easy access for customers and pets. The majority of consumers choose groomers who are within their direct geographic vicinity. Price is another significant basis of competition.
Company Analysis
Owners Dee Dee and Joe Simpson saw a need to service individuals who are older and cannot get their pet to the groomer or those who want the convenience of grooming at their doorstep.
The Simpsons are not new to the pet grooming industry. Together they have 15 years of experience pampering pets. Pampered Pet Mobile Grooming professional staff members include Certified Master Groomers who are specialists at trimming to AKC
Standards. In addition, the staff is also qualified in pet CPR and first aid. They are also experienced at grooming techniques for Generic Personality Standard, (mixed breeds).
Customer Analysis
Currently, there are an estimated 183 million pet cats and dogs in the United
States (AVMA, 2007). With increasing pet ownership, there is greater demand for grooming services. Many of these pet owners consider their canine/feline companions to be part of the family and thus treat them like family by providing spa like environments to pamper their pets. Thirty-nine percent of U.S. households own at least one dog and thirty-three percent of U.S. households own at least one cat.
Caucasians tend to own pets more than Hispanics or Asians (American Fact Finder,
2007).
6 | P a g e
Market-Product Focus
Marketing and Product Objectives
The promotional objectives at this introductory stage for Pampered Pet Mobile
Grooming is to get the name out to the target audience which are adults and seniors living not living in apartments and having middle to high income.
Because Pampered Pet Mobile Grooming is in the introduction stage, a budget of
15-18% of revenue will be set aside for the promotional budget.
Target Markets
The American Veterinary Medical Association’s (AVMA) (2007), U.S. Pet
Ownership and Demographics Sourcebook (2007), states that 62% of U.S. households own a pet, which equates to 72.9 million households. Thirty-nine percent of U.S. households own at least one dog and thirty-three percent of U.S. households own at least one cat. Pampered Pet Mobile Grooming primary target market will be these individuals with moderate to high income averaging a household income of $39,000 a year. Mobile grooming services appeal to pet owners who own elderly or nervous pets since these pets do not have to be transported from their home. Baby boomers with discretionary money to spend on their pets will enjoy this service. Many of these pet owners consider their canine/feline companions to be part of the family and thus treat them like family by providing spa like environments to pamper their pets.
Points of Difference
• mobility – pet grooming will be done at their home
• full service – services will include the usual services – spa bath, cut, nails clipped, but additional services such as massage, flea and tick dip, teeth brushing, de-matting, ears cleaned
• Dogs and cats of all breads will be serviced
• Products will be available at the van for purchase when at the client’s home
• Clients will be able to order products online and have them shipped or brought to their home on next appointment
• Clients will be able to schedule appointments on the weekends and evenings 7 | P a g e
Positioning
It is the desire for Pampered Pet Mobile Grooming to be known in customers’ minds as one that provides the best mobile pet grooming service with the highest level of professionalism, safety, and compassion for our client’s pets.
Market-Product Grid
The following market-product grid provides vital information to help segment the mobile pet grooming market. The research Pampered Pet Mobile Grooming conducted generated information that was analyzed to form the appropriate marketproduct grid. Market Segments
Product offerings
Totals
Shampoo Cut Nail trim Massage Flea /
Tick Dip
De-
Matting
Income
High income 3 3 3 3 2 2 16
Middle income 2 2 2 2 1 2 11
Low income 1 1 1 0 0 0 3
Life Stage
Seniors 1 2 2 1 1 1 8
Adults 2 2 2 2 2 1 11
Youth &
Collegiate
0 0 1 0 1 0 2
Living
Accommodations
Apartment
dwellers
1 1 1 0 1 0 4
Own or rent house or townhouse 2 2 2 2 2 2 12
Temporary
housing
0 0 1 0 1 0 2
Pet Ownership
1 pet 1 1 1 0 1 0 4
> 1 pet 2 2 2 1 2 1 10
3 = large 2 = medium 1 = small 0 = none
8 | P a g e
According to the market-product grid and its calculations, it is in the best interest for Pampered Pet Mobile Grooming to segment its market toward adult and senior consumers with more than one pet, living in detached, semi-detached homes or townhomes earning high- and middle-income. Generally, consumers with higher income will spend their disposable income on pampering their pets especially with services such as massages. Seniors also tend to lavish their pets with special care. Both adult and senior consumers consider pets a part of the family. Apartment dwellers are not as likely to have pets due to restrictions in pet ownership, as are those who have outdoor space for pets as a part of their home.
Marketing Program
Product Strategy
The product line of Pampered Pet Mobile Grooming includes the following services for dog and cat owners:
• Massage • bath w/ hydro massage system, fluff dry, brush out, bandana/bows
• flea bath • full cut based on breed or owner's requested style
• Dematting • Nails clipped, ears cleaned
Pampered Pet Mobile Grooming uses the finest quality products in performing our services. We utilize soothing shampoos and conditioners that will not irritate the most sensitive skin. We clean and sanitize all of the equipment between serviced pets to ensure a healthy environment for our consumer’s pets. Wag’n Tails Mobile
Conversions, the premier, top-of the line, leader in fine mobile grooming vehicles, manufacture our mobile grooming salon.
Pampered Pet Mobile Grooming has a certified Canine Massage Therapist (CMT) on staff to provide hands-on deep tissue techniques to the voluntary muscle system to increase circulation, reduce muscle spasms, relieve tension, enhance muscle tone, promote healing, and increase range of motion in all breeds of dogs. Pampered Pet
Mobile Grooming staff is professionally trained and certified groomers. In addition, the certified staff can provide first aid and CPR for a consumer’s pet in their care if the need arises.
9 | P a g e
Price Strategy
Pampered Pet Mobile Grooming prices are competitive with other mobile pet grooming businesses. Through our staff’s professional training and a state of the art mobile pet grooming van, our customers will appreciate the love and attention lavished on their pet with undivided time and attention from the groomer in familiar surroundings. Pampered Pet Mobile Grooming pricing varies based upon the service performed and the size/weight of the dog or cat. Basic services pricing is as follows
Service Dogs Cats
Nails clipped, ears cleaned $20 - $30 $20
Bath, fluff dry, brush out $40 - $80 $30 full cut $50 - $100 $35 flea bath $20 $20
Dematting $20 - $40 (30 minutes) $20 - $40 (30 minutes) Massage $40 (30 minutes) $40 (30 minutes)
Pampered Pet Mobile Grooming also offers combination packages for dogs that include cut, bath, nails cut, and ears cleaned for $95 - $195. For cats, the combination package includes bath, nails cut, and ears cleaned for $40.
Understanding the proven importance of pets to homebound seniors, Pampered
Pet Mobile Grooming extends discounts to Senior Citizens for the combination packages of an additional 15%. Individual services for seniors will be discounted 10%.
Promotion Strategy
The promotional objectives at this introductory stage for Pampered Pet Mobile
Grooming is to get the name out to the target audience which are adults and seniors living not living in apartments and having middle to high income.
Pampered Pet Mobile Grooming will utilize both push and pull promotional strategies. With different methods of promotion, we are able to reach a variety of people. 10 | P a g e
A pull strategy involves motivating our customers to seek out our brand in an active process. We will do this by placing ads in the local community newspapers and
HOA newsletters regarding our services along with a percentage off coupon. There are several exclusive senior communities, which will allow Pampered Pet Mobil Grooming to drop brochures off for residents. Additionally, we will leave business cards and brochures at local veterinary offices for consumers.
A push promotional strategy involves taking our product directly to the customer via whatever means to ensure the customer is aware of our brand at the point of purchase. One of the methods we will employ is participation at the local pet trade shows that occur three times a year at different venues. We are able to meet directly with consumers to inform them about our services. While we will not be operating out of our mobile van, we will offer free nail clipping and comb-outs to dogs and cats accompanying attendees to the event. Brochures, business cards, and testimonials will be available as takeaways. In addition, we will offer discounts to participants who make an appointment during the show.
Pampered Pet Mobile Grooming will utilize a full service agency initially to research, develop our promotional materials, and coordinate our advertising campaign.
They will also perform pre- and post-testing.
Pretesting will be simple portfolio tests consisting of placing the ad in a portfolio with several other ads and stories. Consumers will read the portfolio and then provide his or her impression.
Post-testing will utilize Inquiry tests. This method will measure the number of inquiries are generated after a particular marketing campaign offering product information, product samples, or premiums.
Place Strategy
Pampered Pet Mobile Grooming is as the name says, mobile. We come to the consumer’s residence to perform grooming services for the pets. We arrive at their home with everything we need including our own electricity and water (heated). We leave nothing behind, taking our wastewater with us. Wag’n Tails Mobile Conversions, the premier, top-of the line, leader in fine mobile grooming vehicles, manufacture our
11 | P a g e mobile grooming salon. The Pampered Pet Mobile Grooming van displays our logo and contact information to draw attention to our services
Consumers can make appointments Monday – Friday 7 A.M. to 5 P.M. We understand the busy lives of our customers and recognize that a weekday appointment may not suit them, so we offer appointments in the evening and weekends by special arrangement. Financial Data and Projections
Past Sales Revenues
In 2011, Papered Pet Mobile Grooming’s sales were $153,000. In personal services industries, there is a very high level of direct labor input. Therefore, wages are the largest expense for Papered Pet Mobile Grooming. In 2011, wages accounted for
34.3% of Papered Pet Mobile Grooming’s revenue. Payment for supplies, such as shampoos, scissors, clippers, and leashes, accounted for another 25.9% of revenue.
Other expenses, including advertising, promotional costs, and other administrative and overhead costs, accounted for about 25.8% of revenue. Utilities and loan payments are estimated to account for 2.9% and 1.5% of revenue, respectively.
Break-even Analysis
In order to calculate a break-even amount, we averaged the prices of the grooming services – cut, bath, nail trim, blow out and bandana – depending upon the size and breed of dog or cat resulting in an average price of $62.00. The fixed costs for Pampered Pet Mobile Grooming are $70,000 per year, which include loan payments on the mobile grooming van, selling and administrative costs. The unit variable cost is
$22.00. This includes production costs per service, employee costs per service, and other miscellaneous costs. Using the following formula,
BEP = [FC ÷ (P – UVC)]
We calculated the break-even point for Pampered Pet Mobile Grooming:
BEP Quantity = [$70,000 ÷ ($62.00 – $22.00)] = 1,750 services
BEP Revenue = 1,750 services × $62.00/service = $108,500
12 | P a g e
The figure that was calculated was the number of services that must be sold to break-even. In order to determine the dollar amount, we multiplied this figure by the cost of a typical service, $62.00. For Pampered Pet Mobile Grooming to break-even this year, it must have $108,500 in revenue.
Five-Year Projections
Based upon last year’s sales and the targeted markets analysis, we project a sales forecast for 2012 of $175,600. Pampered Pet Mobile Grooming expects to maintain a 15% sales increase each year for the next five years.
Year Projected Revenue
2013 $201,940
2014 $232,231
2015 $267,066
2016 $307,126
2017 $353,195
Organizational Structure
Locally owned and operated Pampered Pet Mobile Grooming has two owners,
Dee Dee and Joe Simpson, who operate the day-to-day business of the grooming service. They make the decisions concerning products, services, procedures, management, and personnel. Because Pampered Pet Mobile Grooming is a new business, Dee Dee and Joe will often work long hours to establish a good reputation for the grooming service. In the beginning, there will be two other employees, and as the business grows, Dee Dee and Joe hope to add more people to the staff at
Pampered Pet Mobile Grooming.
Implementation
As a new business, Pampered Pet Mobile Grooming has a relatively short-term implementation plan. We set completion dates for the following activities:
13 | P a g e
Activities Dates
Hire advertising agency May 2012
Release press announcement May 2012
Conduct pre-test May 2012
Advertisements in newspapers and HOA newsletters June 2012
Distribute flyers June 2012
Conduct post-test July 2012
Evaluation and Control
Possible Deviations
Pampered Pet Mobile Grooming has several objectives and goals that it aspires to meet. If for some reason those goals are delayed, perceived as unattainable or deviate from the original plan, corrective action must be taken.
• There may not be enough demand in the 5 county area to keep our business going • Customers may be dissatisfied with our products or our service
• We have set a goal of obtaining an additional mobile grooming van within five years and for some reason that may not be possible
• We may not make enough revenue to cover expenses
• Costs for the products we use in performing our services may increase
Possible Solutions
Pampered Pet Mobile Grooming will monitor the financial information on a monthly basis.
1. If there were a lack of demand, we could try to promote our grooming services to a wider area entering into more counties.
2. If customers were dissatisfied with our products or services, we would work very closely with our customers in finding out where they are not satisfied. If need be, we may change our suppliers. If customers were unhappy with the service, then the management would evaluate employees’ performances and offer suggestions.
14 | P a g e
In hiring future employees, management would spend more time training and stressing the importance of customer service.
3. Adding an additional mobile grooming van depends upon revenue and profits. If we were unable to purchase a new van within five years as planned, we would evaluate the finances to identify areas where we can increase revenue and cut unnecessary expenses. As an alternative, Pampered Pet Mobile Grooming would consider purchasing a used mobile van at a lower price.
4. Revenue depends upon demand, therefore evaluating how well Pampered Pet
Mobile Grooming is getting their name out to consumers. Additionally, we would survey consumers to identify the services and products that are desired and what drives the consumer’s purchase decision for grooming services.
5. If the costs of the products we use were to increase, we would evaluate other vendors and other brands to determine whether we can obtain equivalent product at a better price.
15 | P a g e
Bibliography
American Fact Finder. (2007). Retrieved March 2012, from U.S. Census Bureau: http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml ?pid=ECN_2007_US_81SLLS1&prodType=table
AVMA. (2007). U.S. Pet Ownership and Demographics Sourcebook (2007). American
Veterinary Medical Association (AVMA).
Kerin, R. A., Hartley, & Rudelius. (2011). Marketing (9th ed.).
Moldvay, C. (2011). IBISWorld Industry Report 81291 Pet Grooming & Boarding in the
US. IBISWorld.
16 | P a g e
Appendices
Promotional Materials

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