DisposaDoo

Page 1

Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

disposadoo


OVERVIEW P.E.T.S. R US is a company that continues to create pet equipment, tools and supplies that help you and your pets live happier lives. Trends and consumer activities/behaviors show the need for a new type of product. DisposaDoo will fulfill consumers needs, while empowering them to care for their dogs without sacrificing time or comfort.

1. Executive Summary 2. Situation Analysis

Market Trends Society Trends Capsule Definition Product Review Product Price User Benefits User Types Competition Distribution SWOT Analysis

Operating Expense Distribution Marketing Budget Plan Four Year Project Projection Expected Market Share Expected Net Revenue

3. Marketing Objectives 4. Marketing Strategies Market Share Survey 5. Financial Projections

3 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

disposadoo


EXECUTIVE SUMMARY Current market trends are showing increasing numbers in pet ownership. Pet ownership (especially ownership of dogs) is no longer a family thing but is also becoming more and more common amongst single males and females and elderly who love the companionship of a dog and sometimes even prefer it to the companionship of a human. There is clearly a growing market here that is showing no signs of slowing down in the near future. The amount of dollars spent on dog food, toys and accessories are in line with this rate of growth of the market as a whole, if it is not exceeding it. Individuals now not only meet the basic needs of their canine companions but go as far as pampering them with food, toys and accessories that would not be considered “basic needs”. This is simply a trend that can not be ignored.

• Growing demand for small dogs • Increasing amount spent annually for pets • Thriving relationships with dogs • Ensuring dogs “basic needs” are met

Executive Summary

4 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE SUMMARY Although pet ownership is on the rise, the amount of time that owners are able to spend with their pets is not. Lifestyles are becoming more and more hectic. The common baby boomer, singles, couples and elderly just simply have better things to do sometimes than clean up after their companions, although they do find the time to play with them and pamper them. This inability or at times the lack of interest in manual cleaning of pet residue brought with it a market that is becoming more and more sought after... It is this market that we believe DisposaDoo will successfully enter and ultimately dominate as the most wanted cleaning product for small dog owners.

• Continuing lack of time, increase in multitasking • Growing pet ownership numbers • Decreasing interest in lifestyle chores

Executive Summary

5 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE SUMMARY Disposadoo, a handheld device that is smaller than your typical handheld battery powered vacuum, and has one core purpose: to clean up dog feces in any household within a very short time without requiring any physical contact with the feces whatsoever. The machine is capable of removing any stains as well as any associated odor, due to the incineration process. The machine is capable of literally incinerating its contents and turning it into ash for easy disposal. The main tray can be removed and dumped into any trash can without having to worry about any associated smell. Since the device is battery powered, it arrives with a charging station that is wall mountable. The device is very easy to use by any individual of any age group. DisposaDoo is a very desirable device for a small dog owner who is either unable or simply not interested in doing what pet owners hate the most.

• Cleans up dog doo • Removes stains • Incinerates doo • Reduces odor

Executive Summary

6 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE SUMMARY DisposaDoo is a new approach to dog waste disposal and because of this we expect that there will be a substantial demand for our product. As P.E.T.S. R US, we will target the market through main stream retailers as well as online retailers. The retail price of the product is $89.95 with almost $30 expected profit per unit sold even after factoring in associated production costs as well as inventory and distribution costs. We expect sales to be upwards of 3,825,000 units sold by the end of the first year with estimated total revenue of $345,000,000.

• Distribute through retailers/ websites • Provide product at a attainable price

Executive Summary

7 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Market Trends Convenience accessories and luxury items contribute to pet supplies’ growth. Passionate pet owners look for selection, style, and a unique shopping experience, whether in a high-end specialty pet stores or the well known established brand stores. High-tech products including computerized identification tags, digital aquarium kits, automatic doors and feeders, enhanced reptile terrarium lighting systems and touch-activated toys help pet-owners take care of companion animals with ease and precision.

Estimated 2008 Sales within the U.S. Market (billions) Food

$16.9

Vet Care

$10.9

Supplies/OTC Medicine

$10.3

Live animal purchases

$2.1

Pet Services: grooming & boarding

$3.2

For 2008, it estimated that $43.4 billion will be spent on our pets in the U.S.

The American Pet Product Manufacturers Association (APPMA

8 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Executive Summary

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Society Trends Small dogs (under 20 lbs) have become increasingly popular within the last 10 years. The “toy breed” has been steadily on the rise since the 1970’s, when it made up only 12% of the registry versus 23% today. Urban pet owners do not have a backyard to take their dog out to. The real estate boom over the last few years brought an abundance of high rises in many metropolitan areas. Hollywood is definitely a place one can see the influx of toy breed dogs. The most famous is Star Celebutante and Socialite, Paris Hilton. “Toy breed” dogs are easy to take care of, and best of all you can bring them almost everywhere you go.

American Kennel Club

9 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Executive Summary

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Capsule Definition The DisposaDoo is a 21st century appliance that no small dog owner should be without. It takes care of those annoying but inevitable accidents that come from our pets. It’s simple to use, just plug in the charging station and let it charge. When an accident occurs, place the DisposaDoo over the waste and press the button. Relax while DisposaDoo does the work for you. After 5 minutes. Return the DisposaDoo to it’s charging station. It’s that simple.

Executive Summary

10 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Product Review • • • • •

Single model/color 10 x 10 x 12 inches ~ 4 lbs. Rechargeable Battery Whisper Quiet Cleans, Processes and sanitizes Charge station plugs into 110 or 220 v outlet

Service Procedures: • Packaging in corrugated carton with product picture and feature list on outside • Consumer installation, just plug it in and let it charge • User instructions/safety information in box • Website allows for easy purchasing and product extension

Pricing Lowest possible near future price: • $29.95 Condition for low price situation: • Unexpected competition Highest possible near future price: • $199.95 Condition for high price situation: • Unexpected demand causing shortage

Marketing Season: • Year round marketing through pet stores and in magazines • Fall and Holiday seasons have special promotional activities, makes a great gift for cold city nights

Executive Summary

11 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS User Benefits Unique Technology: • Uses electric heat to reduce doggy doo to ash, while eliminating odor • Disposing the ash is minor compared to touching doggy doo

3. Special carbon filters remove odors and leave your house smelling fresh. TURBO FAN MOTOR CARBON FILTER

Ergonomics: • Stands tall to allow for easy usability for elderly • Handle is at the top of the device creates comfort while using the product or simply moving it from doo to doo

4. Remove pan and dispose of ash

INCINERATION CHAMBER PROPRIETARY PROCESS

NOZZLE / BRUSH ASSEMBLY 1. Simply place the Disposadoo over your pet’s waste.

1. WASTE IN

Executive Summary

12 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

2. Waste is transferred to the incineration pan while patented cleaning brushes tend to your flooring..

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS User Types

? ? ?

Who are these User Types?

• Small dogs and their dog owners • “Social Dog Lovers” • All ages

Executive Summary

13 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE ANALYSIS SITUATION SUMMARY User Types

USER TYPE: Grandma’s helping hand to clean up doggy doo USER NEEDS: To pick up dog doo from the floor USER VALUES: Giving attention to her dog USER MOTIVATION: Hopes to make dog comfortable and happy Executive Summary

14 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE ANALYSIS SITUATION SUMMARY User Types

USER TYPE: Social Girl’s easy solution to doggy doo odor USER NEEDS: To eliminate odor on the floor/in the device/in the home USER VALUES: Pampering dog makes her feel good USER MOTIVATION: Desires to work or socialize Executive Situation Summary

15 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


EXECUTIVE ANALYSIS SITUATION SUMMARY User Types

USER TYPE: Busy Guy’s quick pick up for doggy doo USER NEEDS: To dispose the dog doo quickly and conveniently USER VALUES: Allowing dog to have freedom within the house USER MOTIVATION: Wants more time to play with dog Executive Summary

16 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Competition PRODUCT ADVANTAGE

DISADVANTAGE

No bending required

Only for outdoors Remnants of poop remain on scooper

$27.99

Doggie Dooley

Reduces dog waste to a liquid thus eliminating bags of waste

Replacement enzymes must be purchased

$32.99 - $77.99

Dispoz-aScoop

Easy to use, efficient

Cheaply made

$2.49-$66.99

Flushable Waste

Flushable, Sanitary

Might clog your toilet

$5.91

Smell of dog waste is not contained Requires disposal

Free

Pooper Scooper

Plastic Bag Cheap and efficient

Executive Summary

17 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Competition PRODUCT ADVANTAGE

DISADVANTAGE

BioBag

Biodegradable and compostable

Constantly have to purchase bags

$5.95-$39.99

FlushEze

100% water soluble

Constantly have to purchase bagS

$12.95

Dog Litter Non-toxic, absorbs waste

Messy, Litter can get everywhere

$8.99

PetaPott

Indoor and/or outdoor

Sod must be replaced

$179-$449

WizDog UgoDog

No refills, no mess, durable Dog eliminates in one spot

Solid waste must still be picked up Liquid waste must be still be disposed of

$49.95

Executive Summary

18 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS Distribution Pet Stores/Websites • Pet Superstores • Independent Pet Stores • Pet Grooming Stores • Other Pet Supply Margins General Stores/Websites • Walmart • Target • Kmart • Home Depot Miscellaneous • As Seen on TV • QVC • Amazon • eBay • Home Shopping Petwork • Supermarkets

Executive Summary

19 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS

PETS R US www.petsrus.com/mypets/mydogs

Distribution WWW.PETSRUS.COM • Products View product selection Understand product technology Pick product option and upgrades • My pets Track your spending/pet Redeem coupons Review accounts • My Community • The Story • Contact

PRODUCTS

MY PETS

MY COMMUNITY

CONTACT

THE STORY

REDEEM COUPON

MY CATS MY DOGS NIKE

Text your Coupon # to your account

BELLA

OR Enter your Coupon # Receive 20% off

ACCOUNT

Product

Price

LOVE LEASH PUPPY PAD DISPOSADOO

$7.99 $21.99 $89.95

Submit

Cancel

DISPOSADOO Receive 20% off

DISPOSADOO MY FISH

$71.95

MY RABBITS

PETS R US ©2008 Stuart School of Business 312.906.6500 Downtown Campus: 565 West Adams Street, Chicago, IL 60661 Tel 312.906.6500

Executive Summary

20 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS

PETS R US www.petsrus.com/mypets/mydogs

Distribution

PETS R US www.petsrus.com/mycommunity/myfriends

WWW.PETSRUS.COM • Products View product selection Understand product technology Pick product option and upgrades • My pets Track your spending/pet Redeem coupons Review accounts • My Community Follow your friends, see what they buy Watch Hollywood dog lovers Find your local dog parks • The Story Meet our team Learn about product inspirations Align with our values • Contact Submit ideas for needed products Enter “Pretty Pets” contest

PRODUCTS

MY PETS

MY COMMUNITY

REDEEM COUPON

MY CATS MY DOGS

CONTACT

THE STORY

PRODUCTS

MY PETS

MY COMMUNITY

MYNIKE FRIENDS BELLA

CONTACT

THE STORY

USES... Text your HOLLYWOOD Coupon # to your account KIA

OR Enter your Coupon # Receive 20% off

ACCOUNT

BABY

Product

Price

LOVE LEASH PUPPY PAD DISPOSADOO

$7.99 $21.99 $89.95

Submit

Cancel

DISPOSADOO Receive 20% off

CHARLIE

DISPOSADOO MY PARKS

MY FISH

$71.95

Wiggly Field Address: 2600 Sheffield CHICAGO

MY RABBITS

PETS R US ©2008 Stuart School of Business 312.906.6500 PETS R US Downtown Campus: 565 West Adams Chicago, IL 60661312.906.6500 Tel 312.906.6500 ©2008 Street, Stuart School of Business Downtown Campus: 565 West Adams Street, Chicago, IL 60661 Tel 312.906.6500

Executive Summary

21 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


SITUATION ANALYSIS SWOT Analysis

STRENGTHS • • •

Low cost of operation Growing small dog population Unique in market (new approach) Eco-friendly (ash used as fertilizer)

WEAKNESSES • • • •

THREATS

OPPORTUN. •

• • • •

Accessories (brand extensions) Scented cleaners Outdoor versions Robotic versions CSR with PAWS Chicago

High Initial Cost Takes up space Requires electricity Consumer Confusion

• •

Regulation Standards Possible Product Threats Vacuum Companies Bissell Spot Bot Pet Spot Diaper Genie LitterWorks Executive Summary

22 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


MARKETING OBJECTIVES 1. How to generate 50,000 hits on the company website within 60 days? Objective__Increase website hits Situation__The internet is a major market for consumer buying. Key issue__How to increase internet activities? 2. How to increase consumer awareness of DisposaDoo? Objective__Increase awareness of the product Situation__DisposaDoo is a new product. More dog owners recognize Pooper Scooper than DisposaDoo Key issue__How to educate consumer about product and how to use it? 3. At what rate can sales be expected to increase, how long can that be maintained? Objective__To increase market share/sales Situation__New product that faces major competition, accompanied with possible emergence of new competitors Key issue__How will market share/sales be increased in the face of competition? 4. How can we “prolong� customer satisfaction with product? Objective__Maintain customer satisfaction Situation__Brand equity depends on what resides in the mind of the consumer. Key issue__How to build brand equity?

Executive Summary

23 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


MARKETING STRATEGY 1. •

Develop a personalized website for consumers, along with business cards, brochures, online contests, and online redeemable coupons.

2. •

At what rate can sales be expected to increase, how long can that be maintain? Key issue__How will market share/sales be increased in the face of competition?

Educate and entertain the user with shows and demonstrations, along with radio ads, which will stress turns, profits and marketing support, while expanding distribution.

4. •

How to increase consumer awareness of DisposaDoo? Key issue__How to educate consumer about product and how to use it?

Test multiple markets while looking towards sponsorship of pet events and charitable causes. Create a range of ad positioning and sophistication with in store demonstrations, Corporate Social Responsibility, TV, magazine ads (print), and displays.

3. •

How to generate 50,000 hits on the company website within 60 days? Key issue__How to increase internet activities?

How can we “prolong” customer satisfaction with product? Key issue__How to build brand equity?

Provide excellent customer experience and other customer markers, such as a well known dog show winner/host as spokes person. Offer frequent discounts and coupons, product warranty, a catchy slogan, and of course, a unique logo. Executive Summary

24 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


MARKETING STRATEGY

Market Share Survey

5%

10%

20% 65%

Would buy Might Purchase Won't Purchase Not interested

Executive Summary

25 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


FINANCIAL PROJECTIONS Operating Expense Distribution

Top Five Operating Expenses

Supplies (off and operation) Repairs/ Maintenance Advertising Car, Delivery and Travel Other expense (retail overhead)

Executive Summary

26 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


FINANCIAL PROJECTIONS Marketing Budget Plan Year 2009 Last updated:

<April 23, 2008> Jan

Personnel Salaries, wages BeneďŹ ts Payroll taxes Commissions and bonuses Personnel Total Market Research Primary research Secondary research Library management Market Research Total

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

147,059 50,000 5,000 10,000 $212,059

$1,764,706 600,000 60,000 120,000 $2,544,706

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

200,000 50,000 10,000 $260,000

$2,400,000 600,000 120,000 $3,120,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

416,667 1,800,000 41,667 250,000 125,000

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

50,000 50,000 25,000 50 $2,758,383

Marketing Communications Branding 416,667 Advertising 1,800,000 Web sites 41,667 Direct marketing 250,000 Internet marketing 125,000 Collateral Press relations 50,000 Public relations 50,000 Analyst relations 25,000 Events 50 Marketing Communications Total $2,758,383

$5,000,000 21,600,000 500,000 3,000,000 1,500,000 0 50,000 50,000 600,000 50,000 50,000 600,000 25,000 25,000 300,000 50 50 600 $2,758,383 $2,758,383 $33,100,600

Channels Channel communications and training Channel promotions and incentives Channel commissions/bonuses Channels Total

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

100,000 15,000 10,000 $125,000

$1,200,000 180,000 120,000 $1,500,000

Customer Acquisition & Retention (CAR) Lead generation Customer loyalty CAR Total

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

25,000 15,000 $40,000

$300,000 180,000 $480,000

Other Postage Telephone Travel Computers and ofďŹ ce equipment Other Total Total Marketing Budget

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

833 4,167 833 2,083 $7,917 $3,403,359

Executive Summary

27 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

833 4,167 833 2,083 $7,917 $3,403,359

Situation Analysis

833 833 $10,000 4,167 4,167 50,000 833 833 10,000 2,083 2,083 25,000 $7,917 $7,917 $95,000 $3,403,359 $3,403,359 $40,840,306

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


FINANCIAL PROJECTIONS Four Year Profit Projection PETS R US - DisposaDoo 2009 Expected Market Share Expected Sales Volume Sales Cost/ Goods Sold (COGS) Gross Profit Operating Expenses Salary (Office & Overhead) Payroll (taxes etc.) Outside Services Supplies (off and operation) Repairs/ Maintenance Advertising Car, Delivery and Travel Accounting and Legal Rent Telephone Utilities Insurance Taxes (real estate etc.) Interest Depreciation Other expense (misc) Other expense (retail overhead) Total Expenses Net Profit Before Tax Income Taxes (35%) Net Profit After Tax Owner Draw/ Dividends Adj. to Retained Earnings Per unit retail price:

%

2010

%

2011

8.5% 3825000 $ 344,058,750 229,308,750 $ 114,750,000

$

$2,500,000 $100,000 $500 $2,500,000 $3,000,000 $34,405,875 $10,500,000 $250,000 $800,000 $50,000 $150,000 $1,000,000 $750,000 $150,000 $250,000 $1,500,000 $17,212,500 75,118,875

$

39,631,125 13,870,894 25,760,231 25,760,231

100.00% 66.65% 33.35%

17.0% 7650000 $688,117,500 458,617,500 $229,500,000

0.73% 0.03% 0.00% 0.73% 0.87% 10.00% 3.05% 0.07% 0.23% 0.01% 0.04% 0.29% 0.22% 0.04% 0.07% 0.44% 5.00% 21.83%

$2,575,000 $103,000 $515 $2,587,500 $3,105,000 $68,811,750 $21,000,000 $258,750 $828,000 $51,750 $155,250 $1,035,000 $776,250 $155,250 $258,750 $1,552,500 $34,425,000 $ 137,679,265 91,820,735 32,137,257 59,683,478 $59,683,478

%

2012

%

100.00% 66.65% 33.35%

25.0% 11250000 $1,011,937,500 674,437,500 $337,500,000

100.00% 66.65% 33.35%

35.0% 15750000 $1,416,712,500 944,212,500 $472,500,000

100.00% 66.65% 33.35%

0.37% 0.01% 0.00% 0.38% 0.45% 10.00% 3.05% 0.04% 0.12% 0.01% 0.02% 0.15% 0.11% 0.02% 0.04% 0.23% 5.00% 20.01%

$2,652,250 $106,090 $530 $2,665,125 $3,198,150 $101,193,750 $30,870,000 $266,513 $800,000 $53,561 $160,684 $1,071,225 $803,419 $160,684 $267,806 $1,606,838 $50,625,000 $ 196,501,624

0.26% 0.01% 0.00% 0.26% 0.32% 10.00% 3.05% 0.03% 0.08% 0.01% 0.02% 0.11% 0.08% 0.02% 0.03% 0.16% 5.00% 19.42%

$2,731,818 $109,273 $546 $2,745,079 $3,294,095 $141,671,250 $43,218,000 $274,508 $800,000 $55,436 $166,308 $1,108,718 $831,538 $166,308 $277,179 $1,663,077 $70,875,000 $ 269,988,132

0.19% 0.01% 0.00% 0.19% 0.23% 10.00% 3.05% 0.02% 0.06% 0.00% 0.01% 0.08% 0.06% 0.01% 0.02% 0.12% 5.00% 19.06%

140,998,376 49,349,432 91,648,944 $91,648,944

202,511,868 70,879,154 131,632,715 $131,632,715

$89.99

Executive Summary

28 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


FINANCIAL PROJECTIONS Expected Market Share Expected Market Share Growth Over The Next Four Years

40.0%

35.0%

Overall Market Share

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0% 2009

2010

2011

2012

Fiscal Year

Executive Summary

29 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


FINANCIAL PROJECTIONS Expected Net Revenue Expected Key Financial Figures For The Next Four Years $1,600,000,000

$1,400,000,000

$1,200,000,000

$1,000,000,000 Gross ProďŹ t $800,000,000

Cost Of Good Sold Total Sales Revenue

$600,000,000

$400,000,000

$200,000,000

$2009

2010

2011

2012

Fiscal Year

Executive Summary

30 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

Situation Analysis

Marketing Objectives

Marketing Strategy

Financial Projections

disposadoo


Thanks! Q+A

31 Stuart School of Business : Marketing : Spring : Amy Batchu : Sinan Erten : Karle Heinze : Timah Macklin

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