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MOTION-DETECTING ANIMAL DETERRENT.
Term Paper ID:23922
Essay Subject:
Marketing plan for imaginary pet product. Target market, demand, economics, competition, objectives, advertising, projections. Tables.... More...
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Paper Abstract:
Marketing plan for imaginary pet product. Target market, demand, economics, competition, objectives, advertising, projections. Tables.
Paper Introduction:
I. Introduction
This marketing plan is for The Motion-Detecting Animal Deterrent, a new product designed to keep pets from leaving and undesired animals from entering an owner's property. It is a fully automatic device that uses infrared sensor technology to detect heat and motion up to 35 feet away and in a 105 degree arc. When the sensor is activated, a built-in pulsating water sprinkler head sends out a three-to-four second spray of water. The device can be adjusted so the target spray area can vary from 20 to 40 feet from the device, and the spray pattern can vary from as narrow as 10 degrees to as wide as 360 degrees. Housed in sturdy ABC plastic, the device attaches to any standard-sized garden house and is secured to the ground by a zinc-plated steel spike. Operated by an on/off switch, it is powered by a 9-volt
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Most often, whatthey are looking for in a product is a sense of security and comfort(Brown, 1996, pp. Local television and radio advertising may also be appropriate in twoinitial venues: the above-mentioned KABC Radio talk show, and the soon-to-be-launched Pet TV Network, a niche cable television channel devoted to thetopic of animals. These segments were chosen to appeal to the widest range of possiblecustomers for the device. The demand trend will bepositive, once the marketing strategies have been in place forapproximately six months to a year. A Website page can be designed for a relativelylow cost. For a new and innovativecrossover product, most emphasis needs to be placed on publicity, promotionand advertising opportunities. 84-86. Advertising will also be placed in petprofessional journals, including Pet Age for the pet product industry, andDVM for veterinarians. Target Market Segments Demographics: Home owners and pet owners Age: 25 + Sex: Male and female Income: $3 , + Education: Graduated from high school Psychographic: Independent Achiever Geographic: Southern California Mediagraphic: Television and Radio Home Improvement/Pet Magazines Newspapers Computers and Internet usage A lifestyle profile research report about the demographics of dogowners reveals the following national statistics: Ages of head of household % of households 25-34 years old 19.5 35-44 years old 28.1 45-54 years old 22.4 Married 66.9 Home Ownership 76.8 Children at Home At Least One Child 4 .7 Household Income $3 , -$39,999 13.4 $4 , -$49,999 12.5 $5 , -$74,999 21.6 A lifestyle profile of the initial target market, the Los AngelesCounty population, reveals similar numbers: Age of head of household % of population 25-34 years old 21.7 35-44 years old 24.1 45-54 years old 18.9 Married 48.1 Home Ownership 48.6 Children at Home At Least One Child 29.7 Own a Dog 28.2 Own a Cat 23.3 Education College (1-3 years) 27. B. Taking safety in hand. 63-65). This is a "skimming-the-cream" high-price strategy, the mostappropriate and consistent with the image of a high-quality, specialty itemtargeting a higher-income demographic (Kuriloff & Hemphill, 1988, p. Situation Analysis A. Lifestyle Market Analyst. Statistical ReferenceIndex. 88): Sales Volume: Achieve sales of 1, units from customers in the Southern California region. Animals Agenda, pp. Demographically, the average owner is married,owns a home, is younger than 5 years old, and makes more than $3 , annually (Russell, 1995, pp. Because no collars have to be purchasedand because of the dual protection advantage of the product, a higherpremium price can be justified. However,this product can be promoted as complementary and the natural evolution inthe specialized pet product category.IV. Similar systems include "Fido Shock" and "Radio Repel." However, these products work only on animals wearing a collar, while themotion detector device will spray any animal which passes through thetarget area. Oneentrepreneur in the pet industry successfully used this strategy andreported $5 million in sales in 1995 (Feldman, 1996, p. (1996, April 1). Russell, S. The next factor inprice determination is retailer mark-up for non-food pet items--usually 3 -35 percent over the price retailers pay a wholesaler for a product(Russell, 1995, pp. H., & Hemphill, J. Numerous products, includingbooks, laserdiscs and clothing are purchased through this distributionchannel (D'Amico, 1994, p. Starting and managing thesmall business. Demographic Forces The portion of the baby boomer demographic that is the primary targetmarket is in the prime child rearing, home ownership and consumer spendingyears. Indirect competitors are the electronicboundary devices. The first year of operation will be home-based to minimize costs.Most time should be spent on developing and contacting media outlets,attending animal trade shows, meeting with pet and home improvement storerepresentatives, potential product distributors and pet professionals suchas behaviorists, breeders, and trainers. Weekly HomeFurnishings Newspaper, pp. Bethesda, MD: U.S. 63-65). Pet and baby products report. 49-57. D'Amico, E. B. Animal rights. The 76 million boomers, born from 1946 to 1964, are now 33 to 51.The focus for most is the home and family. (1994, March 28). 49-57). Well, aren't you the cat's meow? per unit (including battery). A greater number of potential customers emerges withthis strategy.III. 1 5). For example, popular KABC radio talk-show host WarrenEckstein hosts a weekend show on the topic of animals and pets. Brown, D. Similar specific,measurable and actionable information regarding what other media the petownership demographics uses--radio, newspapers, magazines, television--canbe obtained and used. References Botton, S. Pet Products, FenceMaster and Dogloo. Feldman, A. Other magazines for advertising placement include AKC Gazette, ASCPAAnimal Watch, Dog World, Pets Quarterly and Your Pet. Similarly, sales should also increase in warmer weather,correlated to the increase in animal and people activities. If unemployment and other economic factors remainpositive, this market will have the disposable income to purchase theproduct. This population shift is a positive indicatorfor this product's potential. In addition to offering information about the product, this sitecan accept orders from across the country. Many also offer service, repair andcustomer consultation for products. Hisendorsement would reach thousands of potential customers. In fact, industry executives believe emotions ultimatelyplay a large part in the pet owner's purchase decision. 29-34. Another powerfulgroup of opinion leaders are veterinarians. 88). Similar to the motion detectorproduct, this category also has crossover appeal--to personal care,electronics, and home improvement. 51-54). Another differential advantage of the detector system is thesafety of using natural water spray rather than electric or static shocks.Unlike the existing products, it can be promoted as animal-friendly indesign. A hardware trade journal reports that almost every other customer hasa pet at home and sees an upward trend in the demand for premium andcrossover products, such as pet doors, which are considered both a homeimprovement and animal-related product. Denver, CO: SRDS, Polk Company. Well-known large pet supply manufacturers include Johnson Pet-Dor,U.S. Innovations in safetyequipment and supplies are the result of consumers' increased interest intaking an active part in their protection. I. 43-46. . Thiswill also allow plans for growth to be developed with more precision andaccuracy. 43-46). Market Share: Not applicable, as the product does not have direct product competition. Similarly, the increasing popularity of vegetarianism is partlythe result of concerns about the killing of animals for human consumption.These indicators show that many people are against cruelty or unnecessaryharm being done to animals (Finsen, 1996, pp. Thecompetitions' perceived advantage is the fact that they have been on themarket for a few years and have a fairly high awareness, if not purchase,level among the public. Seasonal factorswould be a consideration for distribution in geographic areas with severewinter weather conditions. Housed in sturdy ABC plastic, thedevice attaches to any standard-sized garden house and is secured to theground by a zinc-plated steel spike. 172-173). Final figures are dependent on securingpotential product distribution deals. Forbes,p. It is recommended they be contacted forfurther industry information and networking opportunities. (1996). x 1, units $ 3 , Owner's Salary and Overhead: $2, x month $ 24, $ 64, Variable Costs: % of Expected Sales Advertising and Promotion: 2 % $ 39,8 Supplies: 2% $ 3,98 State and local taxes: 5% $ 9,95 $ 53,73 Selling Price: Per Unit $ 199 Expected Sales: 1, Units $199, Less Fixed & Variable Costs: $117,73 Projected first-year pre-tax profit: $ 81,27 VII.Recommendation and Summary The American Pet Products Manufacturing Association is the petindustry trade association. Contemporary management. 88. If a distribution is desired, an innovative approach to securing adeal is first to create demand among retailers by directly contacting themand obtaining agreements to stock the product. Marketing Objectives Following are the first-year sales goals, as defined through thefollowing marketing objectives. The animal-friendly nature of this product is a positive featurethat will appeal to these values. 84). Several pet product entrepreneurs confirm that an effective marketingstrategy includes placing ads in magazines and pet product catalogs, alongwith sending press releases to print, radio and television media.Exhibiting at pet shows, animal fairs and trade shows is anotherpromotional/distribution opportunity entrepeneurs report success with(D'Amico, 1994, p. A., & Robinson, R. There are 236 million dogs, cats, and other small animals keptas pets in 52.8 million, or 56 percent, of the 93.1 million U.S.households. Other pet products have successfully advertised inthese kind of publications. Introduction This marketing plan is for The Motion-Detecting Animal Deterrent, anew product designed to keep pets from leaving and undesired animals fromentering an owner's property. Pecen, M. Financial Projections The following financial projections are for the first year ofoperation and include the significantly high amount of 2 percent ofexpected sales for advertising and promotion. Another powerful cultural value is the strong emotional bond betweenowners and pets. Demand and Demand Trends This product fits into the pet product specialty niche category, withcrossover appeal in the home improvement and security categories. Formulation, implementation,and control of competitive strategy. Reference groups with influence include fellow home and pet owners.This demographic is open to innovative products and services which willenhance their lives in a unique manner. These efforts willreinforce consumer education as an important part of the promotion strategy(Botton, 1994, pp. This supports the motivational behavior theoriesmarketing experts report about consumer behavior (Pearce & Robinson, 1991,p. "Radio Fence" is a computerized underground system whichdelivers a shock to the animal through a collar if it passes over theproperty boundary. These products are also attractive items becausetheir profit margins are higher than average, ranging from 3 percent to 5 percent (Pecen, 1995, pp. (1995, February). The Competition There are no known direct competitors to the product, because of itsunique and innovative design. Pets and profits: Supply and demand. Profit from pet products. Americans currently spend $2 billion a year on pets (Palmer, 1996,pp. These activities, especially developing anddistributing press materials to a targeted media list, are relatively low-cost methods of product promotion. Specific consumer magazine advertising for this target market willtake advantage of research which shows that they subscribe to home-relatedmagazines such as House & Garden, Better Homes & Gardens, and Country Home. (1995, June 19). Many carry and recommend petproducts such as anti-barking systems. In fact,hardware and home improvement stores are increasing their number of animal-related products because they are perceived as ideal companions to theirexisting product line. For example,they can provide certain competitor information, including the averageamount of revenue allocated for advertising once a business becomesestablished. It will alsoappeal to property owners who want to deter unwanted animals or humans fromentering their property without the danger of causing physical harm orpossible legal action.II. The trend will not be correlateddirectly to monthly or annual purchases for most people. They offer products like petdoors, modular kennels, pet shelters and carriers (Brown, 1996, pp. (1996). Pricing: The manufacturing cost, after the initial set-up fee of$1 , . M. Kuriloff, A. In fact, market share for animal-related products for these retailers has increased in the past few years,while market share for traditional outlets, such as pet shops anddrugstores, has decreased (Russell, 1995, pp. Research by manufacturers reveals thatthe two primary features are prevention and deterrence, both of which thisproduct offers to home owners (Botton, 1994, pp. First, opinion leaders caninfluence word-of-mouth and product demand with positive opinions andendorsements. It also has the advantage of dual protection from unwanted animalsentering and preventing personal pets from exiting property. While many in the leading edgeof this demographic are entering the empty-nest lifestage, the populationof the second-wave boomers will take its place in the next 2 years in thehome and family lifestage. They may provide opportunities for reachingadvisors whose experience offers lessons for the fledgling entrepreneur.Both of these organizations will also be used for information aboutpotential product distributors. Pet products update. The manufacturer costalso includes packing and shipping. Most home improvement retailersfind that pet and animal supplies and products are a natural niche fortheir stores (Pecen, 1995, pp. College (4+ years) 22.3 Occupation Administrative 13.4 Professional/Technical 26.9Source: The 1996 Lifestyle Market Analyst These market segmentations are all measurable, accessible,substantial in number and actionable targets both through traditionalmarket research methods and the more recent development of Website trackingtechnology. Opportunities for product distributionwill be explored and may alter the final product price. Operated by an on/off switch, it ispowered by a 9-volt alkaline battery, included with the product. 29-34). 51-54. 98). Surveys find that these consumersare looking for products that have style, quality and a perceived strongvalue (Brown, 1996, pp. Otherwise, they are not likely to purchase, because it is not anitem of necessity for those with low incomes, who focus on fulfilling needsfor food and shelter first (Kurikoff & Hemphill, 1988, p. Therefore, the planned per-unit price willbe $199. 4. (1991). Congressional Information Service. Social and Cultural Factors Certain social and cultural factors do have significant potential forinfluencing the acceptance of the product. Palmer, J. Expected demand will be slow in growth because this is a specialtyproduct which is unsought by most consumers, rather than a staple productlike food (Kuriloff & Hemphill, 1988, p. 84-86). Strategies for reaching theseopinion leaders at pet-related events and venues are detailed in thepromotion and distribution channels section of the marketing plan. This product can be sold to a distributor, whose sales force willmarket the product to the consumer through the pet stores. (1992). , retail, excluding collars, whichlist from $59. If businessand economic conditions are unfavorable, many will not have the abilityeven to purchase a home, eliminating the need for this type of specialtydevice. Van Fleet, D. 3. 88). 2. each. 63-65. Building the business on a regional level will allow for attention topotential problems in the areas of manufacturing, sales and service. Partnerships with pet protection programs and non-profit organizations, shelters, and humane societies can garner significantpositive word-of-mouth at relatively low cost. When the sensor is activated, a built-in pulsatingwater sprinkler head sends out a three-to-four second spray of water. This will encourage customer feedback,considered an integral part of a company's success by several start-up petproduct companies (D'Amico, 1994, p. Purchases are increasing for nonfood, higher-priced,niche, and premium products, which also offer higher profit margins forretailers than food items. Pearce, J. Peers who use the latest innovations in homeimprovement and animal-related products will likely have a positive effecton potential future sales. 84-86). (1996, February 26). to $159. 51-54). Barrons,pp. While the profitmargin will be smaller, the trade-off is worth the advantages gained inaccess to marketing and financial resources (Van Fleet, 1988, pp. Another upward demand trend is in the area of home and personalsafety devices, including motion detectors. Distribution channels: The distribution channels that offer thegreatest time and place utility for consumers are pet supply stores andsuperstores, such as Petco and Petsmart, along with hardware and homeimprovement stores such as Home Depot. 178-18 ). (1994, April). (1995). For example, this demographicchooses Range Rovers and Jeep Cherokees to transport their families overstation wagons and minivans. New York: McGraw-Hill. 49-57). Economic and Business Conditions The initial geographic area selected is the Southern Californiaregion, including greater Los Angeles. Learning through suffering. Homewood, IL: Irwin Publishing. Potential distributors canthen be approached with a confirmed order and assume the account. New York:MAI Information Group. As part of the promotionalstrategy, a 9 -day, money-back guarantee will also be offered to theconsumer, an important way to garner positive word-of-mouth for a newproduct. Information for the development of an effective media strategyis available and accessible. Chilton'sHardware Age, pp. (1988). (1988). The indirect competitors, as noted in the competition section, pricetheir products from $89. 63-65). Finsen, S. 49-57). Theseestimates are derived from analysis of industry and demographic factorsand, because they are fairly conservative, look to be realistic. (1996, July). The company missionshould be publicized as animal-friendly, sponsoring spay and neuter andadoption programs. The Situational Environments 1. Fixed Costs: Manufacturing Set-Up Fee $ 1 , Unit Cost: $3 . Government Printing Office. Marketing Mix Strategy Promotion: The appropriate marketing strategy is that ofdifferentiation which also emphasizes safety, quality and service.Advertising will be placed in pet interest and home improvementperiodicals, along with direct mailings sent to the subscriber listsavailable from these publications. For example, market researchers report thatthis target market also uses home-related magazines such as House & Gardenand Country Home (MediaMark, 1992, pp. Discount StoreNews, pp. This product will appeal to pet and home owners who want to detertheir animals from leaving their property but do not want to use theexisting animal deterrent products which use electric shocks. Animal-related service providers such as breeders, trainers,behaviorists, boarders, and groomers will also play an integral influentialrole in the marketing of this product. Direct marketing andsubscriber lists are also available from Animals magazine, Dog Show Judges,Dog Shows, Pedigrees-The Pet Catalog, Pet Subscriber Database, and Your Dog-Newsletter for Caring Dog Owners, among others (MediaMark, 1992, pp. 36 percent, or 54 million, of these pets are dogs, while 3 percent are cats. It is a fully automatic device that usesinfrared sensor technology to detect heat and motion up to 35 feet away andin a 1 5 degree arc. Home OfficeComputing, p. 85). Do-it-yourself retailing,pp. to $79. , is $3 . Pet products. Another fairly low-cost yet potentially successful distributionchannel is the Internet. 85). Whether through television, radio, direct mailings, promotional copyprinted on the product box, or the company Web Site (detailed below), an(8 ) telephone number will be publicized for the public to call forproduct information, customer sales and service and a free videodemonstration of the product. 1179-118 ). New York: HoughtonMifflin. These were derived partly from evaluatingthe reported experiences of other pet product entrepeneurs, who reported anaverage of $1 , gross sales within the first year or two of business(D'Amico, 1994, p. The most important value supporting acceptance of this product is thestrong cultural value of preventing and limiting cruelty to animals. (Lifestyle Market Analyst, 1996; CongressionalInformation Office, 1995). Their primary advantages are their experience and reputation in theindustry, as well as their financial and marketing resources. Business and economic conditionsare strong, especially in the fields of multimedia and informationtechnology, which employ large numbers of the target demographic (LifestyleMarket Analyst, 1996). In sum, this strategy offers the best opportunity to maximizesales potential while minimizing marketing costs. The above-noted profiles accurately describe thetarget market chosen. This is a time of year which impedes muchoutside activity, from both humans and animals, and hence the demand forsuch a product. 88).VI. This strategyis appropriate because small companies have limited financial andpromotional resources to reach the consumer effectively. The Pet Industry Joint Advisory Council also provides information andreferrals, valuable resources. MediaMark Research. Return on Investment: Achieve before-tax profit of least $75, .V. 98. Another key component to success in this niche category is the imageand message the product conveys to the consumer. Thedevice can be adjusted so the target spray area can vary from 2 to 4 feetfrom the device, and the spray pattern can vary from as narrow as 1 degrees to as wide as 36 degrees. Theanimal rights movement has increased awareness of vivisection, laboratoryresearch and testing of animals, the mistreatment of zoo and circusanimals.
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