Purrfect Pets: Marketing Plan
Rosalyn Ancrum
Dr. Emily M. Crawford
Marketing Management
May 2, 2014

Purrfect Pets: Marketing Plan
Executive Summary Purrfect Pets is a small independently owned company established in March, 2004. There are twenty five full time employees. The store sells distinctive pet supplies and unique apparel for pampered pets. The store brand ranks high in the southeastern region of the United States. Purrfect Pets plans to launch a new organic gourmet pet food. Four employees will be working on this marketing plan. During the economic recession pet parents reduced their personal discretionary spending before spending less on their pets. The emerging trends of pet parents has commanded high demand for premium pet food and services (Brennan, 2014). Purrect Pets is a leading specialty store that caters to the consumers who considers their pet to be a family member. The new pet food is made for the consumer who believes their family member deserves the best. The apparel and spa line is already well established. Purrfect Pets’ products are unique and high end. Catering mainly to dogs and cats; Purrfect Pets offers products such as designer day and party wear, jewelry and accessories, furniture, bowls, toys, and drinks. Prices range from nearly eighty dollars for plush dog beds in a range of colors and fabrics, to fifteen dollars for cat wipes. Popular products include sparkling mineral water bottled in handmade crystal containers and porcelain feeding bowls (Askin, 2009). Revenue from pet care is expected to increase at an average rate of 3.2% in the next five years. The positive spending trends along with rising sales will continue to increase profit margins. For the next five years the industry is expected to remain strong (Brennan, 2014). As a small company Purrfect Pets is faced with strong competition from large retailers such as PetSmart and Petco. Purrfect Pets will focus on capturing the marketing sector in the United States southeastern region. The organic gourmet pet food will be branded as unique, healthy, and desirable (Brennan, 2014).
Environmental Analysis Competitive Forces The pet industry is highly fragmented. PetSmart and Petco, the largest specialty retailers in the United States control approximately twenty percent of the market (Storm, 2011). Grocery stores and big chain department stores are starting to add pet sections and entire aisles in their stores. Large mass market companies such as Proctor & Gamble which bought Natura Pet Products are making inroads into the natural and organic pet food market. However, there is a migration back to pet specialty manufacturers who produce natural and organic products (Blank, 2007). Economic Forces The United States pet industry is considered to be one of the largest in the world. The industry has been growing at a strong pace. Sixty eight percent of American households own a pet, which is equivalent to more than eighty- two million households. According to the industry estimates, pet spending in America increased to exceed fifty-five billion dollars in 2013. The pet industry expenditure in the United States is forecasted to increase above five percent in 2014. As the United States economy moves into faster recovery, demand for pet services and products is expected to increase (PetSmart Inc., 2014). Political Forces In response to the massive pet food recalls, federal authorizes are proposing new standards for companies that manufacture pet foods. Congress suggested new and stricter processes for inspections. The Current Good Manufacturing Practices rule would apply to domestic and imported pet food, animal feed, raw materials, and ingredients. Factories making animal food need to have written plans to identify hazards and determine what steps will be used to minimize those hazards. The rule will cost manufacturers an estimated $128.75 million per year (Bachman, 2013). Legal and Regulatory Forces The food industry in the United States is regulated by the United States Food and Drug Administration. The Food and Drug Administration’s regulation of pet food is similar to laws regulating other animal foods. The Federal Food, Drug, and Cosmetic Act requires that pet food be safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled (Pet Care Industry, 2012). Technological Forces There are a number of technical trends impacting the pet food industry. Advances in extrusion, drying and cooling technology promises to streamline the production of dry pet food and treats while saving money energy and time. The auto cleaning blender was developed to facilitate the increasing demand for quick dog food recipe changes. The blender eliminates cross contamination and provides a safer working environment. Product tracking enables the activation of energy saving modes, temperature or moisture control and aids in product change-over. The ultimate goal is to help manufacturers meet requirements while reducing production cost and increasing flexibility (Taylor, 2010). Sociocultural Forces One advantage for Purrfect Pets is the commitment to provide healthy organic pet food options. The growing humanization of pets created expansion in the market for pet food and pet care products. In health terms pets are suffering from similar health complaints as their owners. Consumers are buying more specialty pet food to help combat obesity and aging (Bainbridge, 2008). There is a trend toward “humanization” with a growing interest in fresher more authentic human type foods. Pet owners believe that pets are part of the family and should be cared for as family members. These values and beliefs make the pet care industry a very lucrative business (Leathers, 2009). Target Markets The largest market for Purrfect Pets includes consumers between the ages of forty –five to fifty-four years old, who account for approximately 28% of total revenue. Many members in this age group look for pet companions to fill the empty space in their households after their children leave home. A large proportion of this segment is viewed as pet enthusiasts, who consider pets to be family members (Brenna, 2014). The second largest target market is consumers between the ages of thirty-five to forty-four years old. Consumers in the market have children. They often consider the health and behavioral benefits a pet can have on their children. About thirty-eight percent of households with children own at least one pet (Brennan, 2014). Branding Strategy Brand has many implications in the pet food industry. There is an emotional connection between consumers and their pets. Branding is the perception pet owners bring to the purchases. The customer owned brand should reflect how consumers feel about their pets (Dougherty, 2014). Purrfect Pets is a well know business in the southeastern region. The new pet food will be an extension of the company. Another extension in the future may be baked goods for pets. The pet food will be named Purrect Pets Healthy Cuisine. Branding requires a company to locate itself in the proper category. This is easy for Purrect Pets because there is already a well-established category. Branding is an activity that requires differentiation of the product from the rest of the products in that category (Jones & Bonevac, 2013). Purrfect Pets Healthy Cuisine is different because it offers a healthy gourmet alternative for pet families. The pet food line will offer a luxurious and tasteful option that other large retailers are unable to duplicate. Branding is more than a logo or catchy slogan. In the world of visual statements a simple logo with a distinct color is best to gain a consumer’s attention. Consistent image and a simple message is important (Reep, 2013). Purrfect Pets’ slogan is “Our family cares about your pet family”. The slogan is constructed to connect with pet owners. The goal is to ensure that pet owners know that Purrfect Pet is a family that cares about their family member. Below is an example of the company’s logo:

Purrfect Pets Performance Analysis and Marketing Objectives 4 Qualitative Metrics * Introduce a product appealing to pet families * Engage current customers and remove any potential resistance to buying the new product. * Provide a product that pets like to eat * Obtain professional feedback from local veterinarians to ensure product value
4 Quantitative Metrics * Increase product awareness by 65% during the first year by utilizing customers referrals * Purrfect Pets plans to increase customer visits by 25% within the first quarter and by 50% by the first quarter of the following year through monthly coupons and “paw points” * Within two years of the product launch increase sales by 75% to increase profits * Gain more market share from local Petsense and Walmart by 30% within the second quarter of the food launch by promoting the health benefits of the food
SWOT Analysis

Strengths * The company sells unique products and caters to pet families * The pet food line is designed to healthy and the ingredients are high quality * The pet food is not mass produced * The company is will have better quality control over the production of the products which will reduce the chance of pet product recalls
Weaknesses:
* The pet food is new and not well known * The premium brand limits Purrfect Pets’ customer base * Purrfect Pets only has a few suppliers * There are only a few full time employees
Opportunities
* As baby boomers age, they will want to maintain the health and well-being of their pet companions. * There is a public backlash regarding pet foods made outside of the United States * Animal obesity is an epidemic. * Consumers have disposable income to spend for pet care.
Threats
* More consumers continue to shop online. * Large discount retailers can charge lower pricing * The cost to produce premium foods may hurt profits * The company will be regulated by the Federal Food and Drug Administration.

Marketing Strategy Purrfect Pets plans to promote the new pet food line by offering loyalty programs and paw points which can be redeemed for other store items. The store plans to offer pet grooming and health awareness workshops. Families will be invited to bring their pets for sample tasting events. The store will remain pet friendly and customers will be allowed to bring pets to the store. A majority of the promotion will be through printed advertisements. The company’s Facebook page will be updated to advertise the new pet food line. In the future Purrfect Pet will advertise on local television stations. Television and internet advertisement will be in the later stage due to the expense. Purrfect Pets will give customers a sample package of food each time they make a purchase of other store items for two months. The store plans to collaborate with local groomers and veterinarians to offer samples and coupons. The store will establish a pet birthday club with a coupon and invitation to visit Purrfect Pets for a special treat. Positioning Statement With large national pet store retailers offering a variety of numerous products it is imperative that Purrfect Pets offer products with a distinctive flair. Many pet store chains are now offering organic and premium pet food at lower prices. While these stores sell major brands in mass production, Purrfect Pets produces all treats, snacks, and foods locally. The new pet food line will be manufactured locally and shipped several vendors in the southeastern region of the United States. Customer Behavior Pet owners fall into three categories: families with children, single households and empty nesters. As people marry later or get divorced, more single households arise. Pets are viewed as valued companions. For baby boomers, pets fill the emotional void of children leaving home. Pet owners treat their pets like substitute children. This results in increased spending on pet products and services (Berger & Topol, 2007). Because pets considered are valued family members, consumers want to provide the best products and food. Some consumers believe that luxury and premium means higher quality and they are willing to pay higher for premium. Pet lovers believe their pets are unique and deserve unique pet products. Consumers are also willing to pay premium prices for safe products. A few years ago tainted pet food caused massive pet deaths that led to companies recalling very popular pet food brands. Some consumers sued the pet food companies for the loss of their pets. Conclusion Purrfect Pets is situated to remain a lucrative business for many years. Pet ownership provides emotional and physical benefits. Studies show that individuals consider pets to be a very important member of their families. Pets are not merely animals, they are family. This company was formed to give all pet families luxurious products and an assurance of quality. The new pet food line promises to offer the same type of unique experience. No pet will leave their bowl unhappy.