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