Pets avenue: new sophisticated accessories for pets

OLGA LOBODA LEVEL 6 FASHION MARKETING

PETS AVENUE

SUMMARY A QUICK LOOK INTO THE PRESENTATION

MARKET RESEARCH MARKET OUTLOOK, PEST, PORTER’S 5 FORCES

STRATEGY DEVELOPMENT COMPANY, TARGET, 4Ps, GOALS AND OBJECTIVES

COMPETITIVE ADVANTAGE SWOT, STRATEGIC CANVAS, POSITIONING

STRATEGY APPLICATION KEY ACTIONS, VALUE CHAIN, TIMELINE

PERFORMANCE MONITORING FORECASTS

US & UK ARE THE LEADERS OF THE MARKET US Pet Industry Expenditures (in billions) 60

45

30

15

0 1994

1996

1998

2001

2002

2003

2004

2005

MARKET RESEARCH MARKET OUTLOOK, PEST, PORTER’S 5 FORCES

2006

2007

2008

2009

2010

2011

2012

60

45

Number of Pet Owners in the US (millions)

30

15

0

DOGS

CATS

BIRDS

SMALL ANIMALS

REPTILES

FRESHWATER FISH SALTWATER FISH

HORSES

150

112,5

Number of Pets in the US (millions)

75

37,5

0

DOGS

CATS

BIRDS

SMALL ANIMALS

REPTILES

MARKET RESEARCH MARKET OUTLOOK, PEST, PORTER’S 5 FORCES

FRESHWATER FISH SALTWATER FISH

HORSES

Pets Humanization Trend •

Carrying more of pets’ look and well-being

•

Spending more on the carrying products

•

Treating pets as members of the family

•

Integrating pets into city life (moreover, 51% of owners, when travel, take they pets with them)

BUT •

People exaggerate treating dogs like toys or children

•

Some products like nail polish and perfumes violate the respect to pets as animals

P E S T

No political issues and legislation restrictions in selected geographics that can influence the idea Importance of environmental issues has to be taken into account

The market is generally not very affected by adverse economic conditions due to pet owners’ unwillingness to compromise on their pets Expected growth since the families are recovering from crisis Consumers perception of «fashionable» accessories for pets as useless and silly products Consumers prefer traditional to fashionable, also in such industries as food and pets The company has to be aware of the latest updates in order to create an edgy brand image and communication Focus on artisan and traditional approach, therefore technological innovations do not have a serious influence on the production Necessity of buying the accessories exists and the spendings in the sector will not dicrease

MARKET RESEARCH MARKET OUTLOOK, PEST, PORTER’S 5 FORCES

•

Bargaining power of suppliers LOW: The market is overcrowded with production companies proposing different prices and services. So company can easily shift to other suppliers.

•

Bargaining power of customers MEDIUM TO LOW: Distinctive design is supposed to create a group of loyal clientele. In order to maintain and attract new customers the company has to pay attention to the price and communication strategy.

•

Threat of new entrants MEDIUM TO LOW: educated and experienced of professionals like managers, designers, administrative employers needed in order to establish the company; fundings are needed.

•

Threat of substitutions HIGH: many people would prefer classic accessories to the fashionable ones; design is easily copied.

Attention to product development and distinctive design is of high importance.

•

Competitive Rivalvy within the industry LOW: very few companies that produce pets’ accessories work on the edgy brand image and items’ appearance.

MARKET RESEARCH MARKET OUTLOOK, PEST, PORTER’S 5 FORCES

Launch of a new bridge brand with a distinctive offer of accessories for dogs and cats

Focus on market and trend analyses to anticipate the demand and amaze the customers

License the production in China with high attention to the process and quality control of the products

Start from USA market (as a biggest spendor) and advance the business, if successful, to Europe

STRATEGY DEVELOPMENT COMPANY, TARGET, 4Ps

Why Cats and Dogs?

They are the leaders of the market They are are members of families and their lifestyles But, as dogs are the most sociable pets and Less expences for cats in the industry explain the lower percentage of cats merchandise

Company Mission We add new value to the common product We transform conventional shopping into unforgetable experience We deliver a perfect correlation of price and quality

Objectives Focus on the successful and prospective market Grow the business by delivering a new dimension of the common offer Develope an innovative communication strategy to hit the right target Maintain existing and attract new customers by an elaborated customer service Develop good relationships with suppliers and producers to strengthen the business

•

Families, couples and other pets owners in USA and Europe, living in cities.

•

Average to high income

•

Apply their own attitude and style to different aspects of life

•

Present online and interested in discovering new brands and products

STRATEGY DEVELOPMENT COMPANY, TARGET, 4Ps

P

roduct

P

lace

P

STRATEGY DEVELOPMENT COMPANY, TARGET, 4Ps

rice

P

romotion

P

roduct Leads & collars Bowls & accessories Grooming products Beddings Travel products Chews & Toys

Collars Bowls & accessories Grooming products Beddings Travel products Chews & Toys

25% 20% 15% 20% 5% 15%

30% 20% 15% 15% 10% 10%

P

roduct

A new approach to accessories for dogs and cats Classy and sophisticated appearance of products Attention to quality and functionality No clothes (to simplify the choice, production and online strategy)

P

rice

Affordable prices Suppliers are important in order to propose high quality for medium prices Strategical pricing to increase volume of sales Seasonal sales with 30% and 50% discounts

Pets Accessories

Dogs Accessories

•

Two stores in New York, the city where major trends are born and get spread

•

California, North Carolina (Los Angeles) and Florida as another hotspots of fashionable lifestyle

•

Texas is not taken into consideration because the habitants are mainly iterested in common supplies that are sold in hyper and supermarkets

P

lace

Central locations Selective distribution Small to medium space Close to fashion districts

Edgy design of the points of sale Clear presentation of products Monochrome colours and wooden furniture

P

romotion

•

Printed media advertising on lifestyle magazines, like Paper, GQ, Dazed and Confused, Vanity Fair

•

Online development: Website, Social Media (Facebook, Instagram, Twitter)

•

News, inspirational blog and costumers’ generated page with looks and brand related photos with hashtags

•

Word of mouth is of a very high importance

To develop a positive reputation the brand has to repond on questions, critics and suggestions, as well as maintain the social media content

Three segments of the market can be defined: •

Functionable pets supplies with poor design, that are sold in easily found specialized multibrand stores

•

Crazed glamorous accessories mainly for small breeds of dogs of different price levels

•

Luxury brands that produce a small line for dogs (like Ralph Lauren and Paul Smith) Therefore the brand has only few direct competitors regarding the price level, product range and fashion content together

COMPETITORS

HAIR OF THE DOG •

Monobrand shop in London (only one location), e-commerce

•

Products for dogs (mainly) and cats

•

Low to Medium prices

•

The brand image is very strong, thoughout the products and the placement

•

Lifestyle, quality and zabota as a DNA of the brandare accuratelly communicated

•

The style doesn’t match the «Pets Avenue», which is more adopted for citizens and contemporary flow of fashion.

THE STYLISH DOG

•

Online retailer

•

Products for dogs

•

Medium prices

•

The brand image is strong

•

The style is rather classical and britishcountryside-alike than fashion forward

•

Dogs as the beloved family members

HARRY BARKER

•

Online retailer

•

Products for dogs

•

Low to Medium prices

•

The brand image is strong, though it is not coherent with products

•

No unique style of the product

•

The website and overall appearance are much better than the ordinary pets retailers online, but in close look many products can not compete with Pets Avenue

•

As Pets Avenue builds a big part of an image on shopping experience and distinctive products, the brand is less sales oriented as Harry Barker.

STRENGTHS • • • • •

Distinctive offer Affordability Innovative culture Strong value chain Cost advantages (production in China)

WEAKNESSES • • •

Lack of Scale as a start-up Low brand awareness High costs in the beginning

OPPORTUNITIES • • • •

Online presence Distribution expansion in Europe Collaboration with designers Loyal programms

THREATS • • •

Maturity of the market Intense competition Habitual approach in shopping for pets accessories

COMPETITORS SWOT, STRATEGIC CANVAS, POSITIONING

HIGH

Luxury brands producing for pets

Pets Avenue Brands specialized in pets’ supplies

LOW

Price

Quality

Fashion content

Product Range

Distribution Store Layout Image Capillarity (for pets division)

Awareness

COMPETITORS SWOT, STRATEGIC CANVAS, POSITIONING

PRICE

FASHION

COMPETITORS SWOT, STRATEGIC CANVAS, POSITIONING

•

Gather young designers that would be interested and involved in the project

•

Find the right suppliers and production licensees

•

Control and adjust each step of the product realisation

•

POS design development, as it is an important part of customer experience

•

Managing customer relatioships

•

Promotion development

•

Look out for the current moves in trends, customer feedbacks and sales performance

STRATEGY STRATEGYAPPLICATION APPLICATION

KEY KEY KEY ACTIONS, ACTIONS, ACTIONS, VALUE VALUE VALUE CHAIN, CHAIN, TIMELINE TIMELINE

Market Research

Design

Production

•

Relevance of the Market

•

Design of Prototype

•

Selection of Suppliers

•

Trend Research

•

Marketing Dep. Regulations

•

Procurement

•

Analysis of Target

•

Order Selection

•

Production Launch

•

Competitors Analysis

•

Order Management

•

Goals and Perspectives

•

Control and Adjustments

Logistics

Sales

Sales Analysis

•

Picking

•

Retail Operations

•

Sell-out Info

•

Packing

•

Customer Service

•

Customers’ Feedbacks

•

Delivery

•

In-store Seasonal Promotions

•

Adjustments to the Model

•

Adjustments to Designs

STRATEGY APPLICATION KEY ACTIONS, VALUE CHAIN, TIMELINE

2014 JAN

FEB

MARKET RESEARCH

MAR

APR

MAY

JUN

TREND RESEARCH AND DESIGN

JUL

2015 AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

SEP

OCT

NOV

SUPPLIERS REGULATIONS PRODUCTION DELIVERY CONTROL AND ADJUSTMENTS

TREND RESEARCH AND DESIGN

SALES SS2015 SEASONAL DISCOUNT SALES

SUPPLIERS REGULATIONS PRODUCTION DELIVERY CONTROL AND ADJUSTMENTS

SALES FW 2015/2016

COMPETITORSSTRATEGY APPLICATION

SWOT, STRATEGIC CANVAS, POSITIONING KEY ACTIONS, VALUE CHAIN, TIMELINE

SALES: •

Open 5 stores in USA in 1 year period

•

Surpass a breakeven point in 5 year

•

Reach an average of 60% of sales until the seasonal discounts

•

Reach an average of 90% sales in total

WEB AND PROMOTION: •

Launch e-commerce in 18 months

•

Gain a rate of 1000 viewers per month on social media

•

Gain recognition mainly with a help of word-of-mouth promotion in 2 years

COMPETITORS

PERFOMANCE

SWOT, STRATEGIC CANVAS, POSITIONING FORECASTS

«If you are not on a shoe-string budget, try to incest in timeless pieces that you’ll love forever. Fashion turnaround is quick and you want to avoid wasting money.»

Pets Avenue