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MEGAN CUSICK CURETON GANNON SUSAN GRAHAM CAROLINE HURD CHANDLER LENNON JULIA TRAVIS AD/PR 340 DR. P ARK F ALL 2011

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Page 1: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

MEGAN CUSICK

CURETON GANNON

SUSAN GRAHAM

CAROLINE HURD

CHANDLER LENNON

JULIA TRAVIS

AD/PR 340

DR. PARK

FALL 2011

Page 2: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

Table of Contents INTRODUCTION ………………... 1

INDUSTRY OVERVIEW ………… 2

CLIENT PROFILE ……………… 7

COMPETITOR PROFILES

PETCO ……………………10

WAL-MART AND COSTCO …13

COMPARATIVE ANALYSIS ……... 14

CONSUMER ANALYSIS ………... 16

SURVEY RESULTS …………….. 18

CONSUMER INSIGHTS …………. 23

CONSUMER INSIGHT RESULTS…. 25

CLIENT RECOMMENDATIONS …... 27

Page 3: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

Introduction PetSmart was introduced in the year of 1986 and today PetSmart is the largest specialty retailer of services and

solutions for the lifetime needs of pets. In this in depth situation analysis of PetSmart we will examine this pet store with its

competitors and how they influence the pet market today. Promotional and communication strategies with cause-related

marketing for the “pet parent” will be defined. In the past 8 years, the number of people having dogs and cats for pets has

increased 5%. There was also a 5% increase in the number of two member households with no children, obtaining dogs and cats

as well. By further examining the “pet parents” in this industry we can gain more knowledge about the increase in pets. The first

section of this analysis is the industry overview. In this section we will provide a brief history of the pet industry, seasonality,

product life cycle, industry size, legal issues, growth and more. The next section is the client profile, where we will discuss the

history of PetSmart, sales data, advertising expenses, media mix and allocation, positioning, creative strategies and the target

audiences. Next, in our Competitor Profile section we will give the same information about PetSmart’s primary competitor,

PETCO, and its secondary competitors Wal-Mart and Costco. And finally, the consumer analysis will identify the target markets

and give an in-depth understanding of these consumers, called the “pet parents.”

We conducted primary research to further investigate the targeted “pet parent” and their shopping habits. For the

primary research, we conducted a 42-question survey. This survey gave us insight to the shopping attitudes, habits, beliefs and

demographics of PetSmart’s target market. We also included questions to see if the respondents preferred a primary or secondary

competitor to PetSmart. We found more information about which areas of pet products and services consumers spend the most

money on. Pet health, affection and charities were also sections asked about that are important to the study and understanding of

the pet market. The information that we gained was useful to understanding the way that the pet market values their pets. The

main objective was to gain further insight into the consumer’s beliefs and preferences. This research helped us to understand how

we can better our product and image in the target consumer’s mind.

Next, we conducted a focus group and personal interviews to get even more insight about the pet parents. This allowed

us to dig deeper and get a better understanding of the consumers than the 42- question survey did. Open-ended questions allowed

for respondents to give their feedback so we could make five recommendations to present to our client.

1

Page 4: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

Industry Overview HISTORY OF THE PET INDUSTRY

The use of animals has been an important practice that dates

back to the ancient civilizations. Dogs were used for tracking,

hunting, guarding and more.1 Keith Thomas first identified three

characteristics of pets in England between 1400-1800 which were: the

animal was allowed in the house, it was given an individual name and

it was never eaten.2 The pet industry can be dated back to 1860, when

the first pet commercial was made3. In the 1930’s canned cat food and

dry-meat dog food were introduced by Gaines Food Co.4The industry

really began to thrive in the 60’s when Pet Food Institute began

actively proclaiming the scientific benefit of feeding pets processed

food over left over human food.3 Soon after this, the introduction of

pet stores started booming. PETCO was the first pet store started in

1965 and then its competitor PetSmart came in 1986. Because of these

two top retailers today, pet superstores have influenced the major pet

trends in the industry. Trends that are recently blooming in the

industry include mobile veterinary services, mobile pet grooming,

organic food products and more. These trends will keep the industry

thriving and secure the success of pet supermarkets in the future.

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

2009 2010 2011 2012 2013 2014

Sale

s (

in b

illi

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s)

Years

Total Pet Industry Revenue 2009-2014

Sal…

SIZE OF INDUSTRY Just like humans, pets have a constant need of

supplies and services. In contrast to most industries in

this economic recession, the pet market has not seen

much of an impact, as shown in Figure 1. This proves

the pet market is “recession resistant.” Figure 1 shows

the projected revenues have continued to increase the

past three years and is predicted to follow this trend due

to better services and supplies for the “pet parents”.

PETCO is PetSmart’s largest competitor, as

shown in Figure 2. Each company offers many ways to

serve its customer with: grooming, DNA breeds testing,

adoption, dog training, vaccines, and pet insurance.5. 2

Figure #1 Source: AmericanPetProducts.com

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Industry Overview

Wal-Mart is considered a secondary competitor to

PetSmart in sales. While PetSmart is a superstore with the

main concern for pets, Wal-Mart has many “pet parents”

turn to them. Packaged Facts estimated, as of early 2010,

Wal-Mart’s share of U.S. pet product sales were an

upward of 27%. This share is slightly ahead of PetSmart

and PETCO’s combined 26%.6

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

PetSmart& PetCo

Wal-Mart Other

Perc

en

tag

e o

f S

ale

s

Pet Sales 2005 vs. 2009

2005

2009

Figure #2 Source: Packaged Facts

The pet industry spent $502 million on national

consumer advertising in 2008, which was a 4% decrease from

2007. Television accounts for about three-fifths of the 2008.

Print rose to 36.8% in 2008 from 30.1%. With media cutbacks

the Internet and radio advertisement has dropped.

With the concern of the economy, pet markets have

many advantages that will help them ride out the recession with

ease. The emotional bond between animals and human is on

top. Pet owners view their pets as one of the family members.

Therefore they would not withhold spending, just as they would

for their own kids.

3

Figure #3 Source: Packaged Facts’

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2004 2005 2006 2007 2008

Perc

en

t o

f exp

en

se

Years

Television

Print

Other

Page 6: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

Industry Overview STAGES IN PRODUCT LIFE CYCLE

The pet industry is in the maturity stage of the

product life cycle. According to Figure 4, this shows

the annual sales for the U.S. Pet Industry from 2008-

2011 there has been a slow average growth rate of 6%.

7 The increase of competition between PetSmart and

PETCO is growing steadily while Wal-Mart will be a

constant competitor. Half the market share belongs to

well established discount and pet superstores which

generally offer the lowest prices. All of these are

characteristics of an industry in the maturity stage.

SEASONALITY

Advertising expenditures for the years of 2005-2009 show no

trends that would directly imply seasonality. As shown in Figure 5, there

was consistently higher spending in the 2nd quarter compared to the others.

When referring to figures 10 and 12 you will recognize a few changes

when looking into the over al theme of the pet. PetSmart, one of the

leading retailers in the industry, had little change by quarter in sales over

the past five years. PetSmart’s 2009 Annual report shows that its quarterly

sales, which are broken up into sales and services, are almost completely

even throughout the year. 7

4

Figure #4 Source: Packaged Facts’

Figure #5

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$5.00

$10.00

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$25.00

2008 2009 2010 2011

Sale

s (

in b

illi

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U.S. Pet Industry

Sales

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Industry Overview GROWTH POTENTIAL/FORECAST

Based on past facts and detailed outlines, in the

Packaged Facts’ the predicted growth rate for 2010 and 2011

will have a 6% increase as compared to in 2009 with a 5%

raise. With the economy improving the two categories that

expects to have a great improvement will be non-food pet

supplies and pet services other than veterinary. The fact that

there are more than 400 million pets in the U.S. and pet owners

are spending more and more money every year contributes to

this claim.12

THE ECONOMY Despite the economic recession, the U.S. pet industry remains on

solid ground.8 The Pet Market added $2.5 billion with total sales rising 5.0%

in 2009 to reach $53 billion. Figure 7 represents the U.S. pet industry sales by

category, with veterinary services leading in market share. This share led

because it is the most directly health-related category.

LEGAL REGULATORY ISSUES The FDA regulates the cans of cat food, bags of dog food, or boxes of dog treats or snacks in people’s pantries16. The basic principles of food

safety pertain to pet food products as well. The Federal Food, Drug, and Cosmetic Act (FFDCA) requires that pet foods, like human foods, be

safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled. In addition, canned

pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms

(see Title 21 Code of Federal Regulations (CFR), Part 113)16. The FDA does not require pet food products to have pre-market approval.

5

Figure #6 Source: Packaged Facts Figure #7 Source: Packaged Facts

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Industry Overview

6

SOCIETAL/CULTURAL CONSIDERATIONS The roles society play within the pet industry

has trended towards similar cultural mentalities such as

health and wellness. “Pet parents” want their animals to

be healthy and spoiled with new products that will help

their well-being. The American culture prides itself on

being able to spoil ourselves and loved ones, including

pets. Celebrities have shown to have a major impact on

pet ownership in the general public. This is creating a

“coolness” factor in the pet industry that companies are

beginning to utilize. The use of celebrity endorsements

are a strategy that are widely used to attract consumers.

Partnering with organizations and charities are

strategies used to appeal to emotions of consumers. Our

society takes philanthropy very seriously and people

tend to view companies more positively if they are

involved in an organization they can relate to. Cause-

related marketing in the pet industry include adoption

events, shelter efforts and animal rescues that are

formed in tandem with charitable organizations.

Today’s society has become more

environmentally conscientious and concerned with

sustainability. Companies are becoming aware of this

and are adapting policies to become a more sustainable

industry. Forming these policies can enhance a brand

image in the eyes of a target audience. These are all

tools that can be used to create a successful business

strategy.

Page 9: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

SALES From Figure 8 you can see that PetSmart’s sales have

gradually increased throughout the past five years. This steady

increase leads me to believe that pet sales will continue to increase

even with the current recession. Although sales have increased

steadily, according to data recorded on the LexisNexis database,

net income has not had a steady pattern. It increased, but then had a

significant drop in 2008 which most likely was the effect of paying

expenses for operating their new distributing center that they

opened in that year.10 The strength of the “pet parents” is

representative of PetSmart’s continual increase in sales and it will

most likely continue to increase in sales as more people catch on to

the “pet parent” trend.

ADVERTISING EXPENDITURES As seen in Figure 9, PetSmart’s ad spending has steadily increased

over the past 5 years, with the exception of 2008. In 2008, there was a

significant increase in ad expenditures. The overall conclusion about

PetSmart’s ad spending drawn from Figure 9 is that PetSmart is spending

more money on advertising each year.

HISTORY FOR PETSMART In 1986, Jim and Janice Dougherty came up with the idea for a pet

superstore. It was not until 1987, however that the first two stores were

opened in Arizona with the name PetFood Warehouse. The initial slogan was

“Where high prices have been housebroken” in 1991. In 1993, PetSmart went

public for $125 million and issued 7.5 million shares of common stock. It

also sold 5.7 million shares on the NASDAQ stock exchange. A year later, in

1994, PetSmart Charities, Inc. was formed to be “a nonprofit organization

that’s dedicated to ending euthanasia and finding homes for homeless pets.5 In

this same year, PetSmart opened its 100th store and changed its slogan to

“Where pets are family,” recognizing that its target audience was “pet

parents”, or people who view their pets as part of their family. The year 1995

was a big year for PetSmart, as its sales reached $1 billion for the first time

during a fiscal year. However, shortly after this, the store hit its first bump in

the road with inventory problems and unsuccessful marketing strategies. This

caused a drop in PetSmart’s stock price from $23 to $6.

In spite of this problem, PetSmart remained the largest pet supplier

retailer in North America and the United Kingdom. It also made a come back

in 1998 with an increase in sales and gross profit and a decrease in store

operating expenses. By 1999, PetSmart was financially stable again and for

the first time, it bought back their own stock. PetSmart remained focused on

the “pet parent,” but broadened its focus to lifetime needs of pets and their

parents. In 2000, their stock plummeted to an all-time low, yet the business

continued to grow faster than ever with a more efficient supply chain. This

change only served to better solidify the company’s main goal of customer

service and satisfaction. 2003 saw a major victory for PetSmart Charities,

which raised more than $30 million for many of its various causes. In 2007,

PetSmart Charities again made great strides, helping to find a home for its 3

millionth pet. PetSmart also opened its 1000th store that year and in 2008 they

opened a new distribution center. PetSmart continues to thrive today as one of

the pet industry’s largest companies, operating under the current slogan,

“Happiness in store.” 5 7

Client Profile

Figure #8 Source: LexisNexis

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Client Profile

The quarterly advertising expenditures for PetSmart throughout

the past five years have not been very consistent. As seen in Figure 10,

the fourth quarter is the only one that shows any consistency. This is

probably due to the seasonality in the fourth quarter. The holidays that

occur during this quarter generate a lot of revenue from “pet parents.”

They buy Halloween costumes and Christmas gifts for their pets during

this time, on top of their everyday pet needs.

In the third quarter of 2010, PetSmart spent the most on its

advertising expenditures with a total of $19,436,700. In the first quarter

of 2006, PetSmart spent the least on advertising expenditures with a total

of $9,615,800. The conclusion drawn from Figure 10 is that PetSmart

spends different amounts on advertising according to what initiatives it

has planned for the current quarter.

Media Mix/Allocation According to their media mix, shown in Figure 11, PetSmart uses

syndication (21%), network television (27%) and cable television (33%) as its

primary media outlets.

PetSmart has also recently tapped into the world of social media. The

company has a Facebook page with 409,667 “likes” and counting. Also, over

35,000 people have mentioned it on Facebook. 11 PetSmart also has a Twitter as

well with 27,700 followers and counting. 12

8

Figure #9 Source: Ad$pender

Figure #10 Source: Ad$pender

Figure #11 Source: Ad$pender

Page 11: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

POSITIONING With the company’s slogan, “Happiness in store,” PetSmart’s

positioning is instantly clear. Its’ vision is “to provide Total Lifetime

Care℠ to every pet, every parent, every time.” 13 PetSmart cares about the

happiness of pets and their owners. To show the company cares,

PetSmart has made “pet parents’” lives a lot easier by making its stores a

one-stop-shop. 14 PetSmart puts emphasis on its services. It offers in-

store grooming, training, boarding, and veterinary services. PetSmart

focuses on portraying a caring and happy image.

PetSmart also uses public relations as a marketing strategy. The

announcement of PetSmart’s adoption weekend, in Image 2, is just one

example of an event they sponsor. The company also has events, such as

5k fundraiser runs and partnerships with animal shelters in the area. This

improves its brand positioning and targets potential and current “pet

parents.” Cause related marketing is another strategy that PetSmart

utilizes. PetSmart Charities is a great example of this strategy. This

nonprofit organization helps homeless pets find homes among other things

and it associates their brand with an image of care and compassion. By

using the PetSmart brand, any cause the company supports lends an

advantage to the charity and improves brand equity. 5

NEW DEVELOPMENTS A new development is the use of PetSmart’s database of email

addresses to target emails with coupons and editorial content. For

example, the company recently sent an email to all reptile owners in its

database. In these emails PetSmart encouraged those who usually buy

crickets to feed their pets to consider feeding them worms. It included

a coupon for $2 off of any live worm purchase. 16 Promotions like this

are a great way for PetSmart to change its customers’ thinking and get

them to buy less consumed products.

CREATIVE STRATEGY The creative strategy of PetSmart is informing its shoppers of specials

the stores are having by using brightly colored coupons and promotions in its

marketing and advertising as shown in the advertisement above. PetSmart does

a lot of this throughout its website. The company has their logo and slogan

very visibly located at the top of the home page with many in-store promotions

that are constantly being updated with seasonal events and specials.

A recent promotion PetSmart has been advertising is a photo contest

event for Halloween called Monster Cute beginning September 19. Image 1 is

the advertisement for this event. This is a good opportunity for PetSmart to

feature photos of pets dressed in its products for the holiday. The submissions

are taken from the general public. Anyone who visits the PetSmart website can

vote on the winner along with a panel of PetSmart executives. The ten most

popular submissions will be judged between October 24 and October 31 to

decide the grand prize winner. The winner will be featured in a PetSmart

advertisement. This promotion is a creative way to draw attention to the

seasonal items PetSmart offers. 11 9

Client Profile

Image 1 Image 2

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10

HISTORY PETCO was born in 1965, founded by Walter Evans,

selling veterinary supplies as United Pharmaceutical Company

(UPCO). However, it wasn’t until 1976 in La Mesa, California that

the first retail store was opened. The name was officially changed

to PETCO in 1979 and the first PETCO store was opened in 1980.

This store was opened in Tigard, Oregon, near the home state of

California. PETCO become a public company, after totaling sales

of more than $189 million and opening 218 stores in 13 different

states, in 1994. It was in this year that PETCO became the largest

pet specialty retail chain in the pet industry. PETCO was forced to

private ownership in 2000 as a result of a downturn in the market.

The company still flourished and had its 40th anniversary in 2005.

Now boasting over 1,000 stores in all 50 states, including the

District of Columbia, PETCO is still privately owned and is the

second-largest US retailer of specialty pet supplies. 17

SALES Since PETCO is a privatized company, it does not

publicize its annual sales figures. In order to assess the sales for

PETCO we have to look at the sales PetSmart and PETCO both

contribute to the pet industry. Refer to Figure 6, which shows the

annual sales from 2006-2010 in order to assess that about a quarter

of these industry sales are due to PetSmart and PETCO sales. 18

ADVERTISING EXPENDITURES Over the past five year PETCO has seemed to have been

spending less on its advertising expenditures, as it shows in Figure

12. Overall PETCO spent the most money, in advertising, in 2006.

This is broken down further into equal shares in the first three

quarters (approximately $5 million) of the year and doubling

expenditures in the fourth quarter with $9.3 million. This trend, of

spending the most in the fourth quarter, has continued through out

the following years. However, the spending began to equal out

through 2007 to 2009 regarding quarterly spending. In the years of

2008 and 2009, there was almost an equal spread of allocation

through out the quarters. The only year that PETCO allocated the

most expenditure to a quarter other than the fourth quarter was in

2009. PETCO returned to focusing advertising strategies in the

fourth quarter ($4.65 million) of 2010 by doubling the spending

from the first quarter ($2.2 million).

Competitor Profile

Figure #12 Source: Ad$pender

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11

PETCO began to decrease its spending on advertising in 2007

and continually decreased its spending over the next three years.

There was a major drop from 2006 and 2007 in fourth quarter

spending. PETCO reduced spending in all quarters during 2007 but

impacted the fourth quarter the most with a reduction of $2.9 million.

This trend persisted through 2009 with a reduction in spending in the

second half of 2009 and 2010. PETCO began to increase its spending

in advertising again in 2010 focusing most of the spending in the

fourth quarter, mirroring the trends of the previous years.

POSITIONING “Where the pets go,” is the slogan that PETCO has advertised

for the past years positioning it as a friendly, welcoming pet store. But

in the recent years, PETCO has been taking advantage of the trend of

healthy and organic pet foods and supplies. The company has realized

that On the PETCO Facebook, the information states that PETCO is

“where the healthy pets go” emphasizing the importance PETCO

places on healthy pet products. This position also targets the “pet

parent” audience and treating your pets with care and promoting

health. 20

MEDIA MIX / ALLOCATION As shown in Figure 13, PETCO allocated most of its

expenditures to newspaper (36.58%) and cable television (21.86%)

media outlets. These media outlets consume 58.44% of the total

advertising expenditures of $78.4 million in the past five years. In the

last year, PETCO spent a total of $13.5 million allocating 45.26% to

newspaper and 0.67% to cable television. This shows that PETCO is

moving most of their spending to the newspaper and traditional media

outlets. Even though, most of PETCO’s expenditures are allocated to

traditional media outlets, the company is tapping into social media

and networking. It has developed a page on Facebook, which has

accumulated 440,839 “likes” and shows PETCO has “been talked

about” 25,308 times. 19

Figure

Figure #13 Source: Ad$pender

Competitor Profile

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12

CREATIVE STRATEGY Within the 2011 year, Draftfcb Orange County

became the brand and product advertising AOR in order to

form a new creative and promotion strategy. The new direction

of PETCO plans to create a campaign that attacks newspaper

inserts, television and digital outlets. This is in an attempt to

make consumers aware of nutrition vital to the health of pets.

This campaign plans to target the growing trend of “pet

parents,” as shown previously in the consumer analysis.

Promotional effects will also be included in this campaign in

the form through digital, print and television mediums. 21

PETCO is involved in cause-related marketing by

creating an in-house foundation, PETCO Foundation. Founded

in 1999, the PETCO Foundation strives to “promote

educational and charitable activities nationwide by partnering

with local organizations.”22 PETCO has also partnered with

“Paws Across America” for National Pet Wellness Month .In

addition PETCO sponsors events such as the Tree of Hope

Fundraiser and “community dog walks.” 22

NEW DEVELOPMENTS PETCO has made new developments in promoting and

contributing to healthier pet food options and supplies. The main push

has been towards healthy options for consumers. New developments in

cause-related marketing have also begun in the recent years. 23 The

PETCO Foundation supplied “Pets of the Homeless” with a grant to aid

in providing growing number of pets of the homeless with food.

PETCO also partnered with Muttsavers Rescue, Inc. to hold a pet

adoption event for rescued dogs. 24

Competitor Profile

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13

SECONDARY COMPETITORS:

Wal-Mart is a large secondary competitor to PetSmart. Wal-Mart

offers consumers extremely low prices, which is what keeps them coming

back and shopping there versus other pet product retailers. The company

takes pride in its current slogan of “Save Money, Live Better.” When

starting the company, found Sam Walton said, “If we work together, we’ll

lower the cost of living for everyone and we’ll give the world and

opportunity to see what it’s like to save and have a better life.”25 This is

how Wal-Mart includes its creative strategy into the pet market. Wal-Mart

is not a primary competitor because it is a discount retailer that sells other

products besides pet supplies. Pet products and supplies are only a section

of the store, so it cannot be considered a primary competitor.

The other top secondary competitor to PetSmart is Costco. Costco

is a wholesale retailer that operates out of warehouses. The warehouses

present one of the largest and most exclusive product category selections to

be found under a single roof. Costco carries quality, brand name and lower

priced merchandise compared to other retailers. The company focuses its

strategies around offering products in large bulk for a cheaper price. For

example, Costco can offer a 40 lb. bag of Triumph dog food for $49.99.

Because of the quality of this dog food, consumers can purchase it at Costco

and save a large amount of money instead of buying it somewhere else.

Like Wal-Mart, Costco has many other focuses in their store. The pet

product and supplies section is just a portion of the sales that they do. This

is why we can’t consider Costco a primary competitor for PetSmart.

Competitor Profile

COMPETITIVE MATRIX

Sales Positioning Ad Spending and

Media Mix

Cause Related

Marketing

•2010 sales

were $5,693,797,000

•“Happiness in Store”

•Service: PetsHotels, Bone

Booth, etc

•Affordability

•$67,848,500 spent in

2011

•PetSmart Charities

•Rescue Waggin’

•Pet Walk

Unknown,

Privately Owned

•“Where the Pets go”

•Natural, Organic

•Health

•$55,743,500 spent in

2011

•Petco Foundation

•Paws Across America

•“Everyday Low Prices”

•Affordability

•Affordability

•Sells in bulk

Figure #14

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UNIT SALES

Through the recession, PetSmart persevered and gradually increased their sales. This

steady increase implies that pet sales will continue to increase even with the current

recession. In 2010 sales were $5,693,797,000 and net income was $239,867,000.

PETCO is a privately owned company so its sales are not available. However, the

company has continuously come in second to PetSmart.

Because Wal-Mart and Costco don’t exclusively sell pet products, it’s difficult to

compare them in regards to some of the following topics. However, it is worth mentioning

that Costco is a warehouse outlet, which means it can sell items in bulk for a cheaper cost.

Similarly, Wal-Mart is known for its low prices. Although we don’t know the sales for

specifically pet products, we know that both companies do attract a lot of customers. This is

why Costco and Wal-Mart compete as secondary competitors to PetSmart.

POSITIONING PetSmart chooses to position itself in

a much different way than its primary competitor,

PETCO. PetSmart caters to “Pet Parents”, or the

kind of pet owners that treat their pets like a

member of the family. By creating this specific

target audience, PetSmart has increased its’ sales and

obtained a large audience catching on to the “Pet Parent” trend.

Being a “one stop” location also sets PetSmart apart. Not only can you buy products,

but you can buy services as well. PetSmart has full service veterinary clinics at its’ Pet

Hospital. It also has grooming, boarding, and training services. One of its most famous

services is the PetsHotel, where animals can stay overnight. Pets can even receive phone

calls from their owners at the “Bone Booth.” Clearly, this wide array of services makes

PetSmart unique and sought-after.

PETCO, on the other hand, is more focused on its natural and organic products. This

healthy positioning has set it apart from PetSmart and has gained an audience

14

of more health conscious pet owners. In addition, the

“Where the Pets go” slogan implies that PETCO is more

preferred by the pets themselves, compared to PetSmart’s

“Happiness in Store,” which clearly targets the owners.

PETCO also focuses on charities more than your average

pet store. This is talked about more in the following

section, cause related marketing.

As shown, PetSmart has focused more on the

benefits of the pet owners and making them feel

comfortable and at ease with the convenience of its

services. PETCO tries to show concern in the health of the

pets themselves with its nutrition and money funding for

animal charities. PetSmart and Petco have two very

different strategies for building customer loyalty and store

traffic. PetSmart plays up its services. Petco focuses on

charitable causes. In order to keep up with PETCO’s

tactics, PetSmart can spend more advertising money on

healthy and organic products. PetSmart also should

consider organizing more charitable functions.

AD SPENDING AND MEDIA MIX In 2010, PetSmart spent a total of $67,848,500 on

advertising. The company has been prone to use modern

media outlets in advertising such as syndication, Cable TV,

and Network TV. This accounts for 81% of PetSmart’s

advertising. The other 19% comes from cheaper and more

classic outlets, such as magazines, newspapers, and radio.

PetSmart also puts considerable effort into its social media

sites like Twitter and Face book. With 27,700 ‘followers’

on Twitter, PetSmart is able to get up to date news out to a

wide array of people constantly.

Comparative Analysis

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15

Although PetSmart is not far behind, PETCO is more

involved in helping out the community and homeless animals.

PetSmart should continue to fundraise with PetSmart Charities and

brainstorm on new functions to cause awareness.

Network Radio

PetSmart

PETCO

Magazines

PetSmart

PETCO

Cable TV

PetSmart

PETCO

Newspaper

PetSmart

PETCO

In conclusion, PetSmart has successfully managed to stay up to date

with its advertising methods. By spending more money than

PETCO, PetSmart seems to have reached more people, especially in

social media, resulting in higher sales.

CAUSE RELATED MARKETING PetSmart has a successful nonprofit organization called

PetSmart Charities. Its mission is “To improve the quality of life

for all companion animals, PetSmart Charities creates and supports

programs that save the lives of homeless pets and promote healthy

relationships between people and pets.” PetSmart also used cause

related marketing with The Pet Walk. This is a festival sponsored

by Purina to fundraise and to celebrate animals. It is for entire

families and their pets.

As mentioned, PETCO is well known for its presence with

charities and cause related marketing. Through adoption efforts

with the PETCO Foundation, the company has found new homes

for more than 200,000 homeless pets every year. Most of PETCO's

promotions trigger donations to its PETCO Foundation. Last year,

PETCO honored National Pet Wellness Month with “Paws Across

America,” sponsored by Hill's Science Diet pet food brand. Dogs

were able to participate in a 20-minute “community dog walk”

hosted by PETCO stores.

Comparative Analysis

Figures #15-18 Source: Ad$pender

Shares of Voice Figures 15 to 18 show the different shares of voice for each medium.

This displays the previous claim that PetSmart uses more modern advertising

methods such as cable TV and magazines. Although they use some more

traditional forms as well, such as network radio, they stay away from

newspaper advertising. The unit sales, showing PetSmart ahead of its’

competitors, make it clear that this method is effective for the company.

In conclusion, PetSmart has earned its’ place as the number one pet

retailer. The company has high sales, exceptional services, strategic media

placement, and present cause related marketing. It has a couple weaknesses as

well. If PetSmart wants to exceed even further, it should consider focusing on

health and nutrition some more. The company should also create more cause

related marketing so that people don’t instantly associate these charity events

with PETCO instead.

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Derived from the Simmons data, it was uncovered that the target age

demographic of 25-34 are 11% and 35-44 are 14% more likely to shop at

a pet specialty stores, such as PetSmart, making this demographic

essential to the target audience.

Through the secondary data, it was discovered that a large portion

of the purchases for pets were done by adults with a significant other.

Family construction appears to have a role influencing pet ownership. It

implies that dual households with no children has appeared as the largest

direct contributor to the pet industry with a steady increase from 49% in

2003 to 54% in 2009. However, non-traditional family structures are

becoming a force to consider as well. 28

16

Consumer Analysis DEMOGRAPHICS

Utilizing the data from Simmons Media Research Bureau and

other secondary sources, an evident target audience becomes

apparent. The target demographic consists of :

Pet Owners, specifically “pet parents”

Adults ages 25-44

An income level of $70,000+

Including dual households with no children

Many factors comprise the purchasing decisions for “pet

parents”. Many pet owners make purchases based upon individual

preferences which stem from specific demographics such as age,

ethnicity, and income level. Even with the economic recession a

demographic group has taken precedence in the pet market pushing

the

industry to cater to new targets that are entering the realm of pet

ownership. People with an age level of 30-44 remains the key target

age group with the top percentage of overall pet ownership in the U.S.

reaching 59.8%. However, data shows significant age groups that are

becoming major contributors to the number of pet owners. Generation

Y, an emergent target group, with 54.9% of all 18-25 year olds

owning pets. 26 Also another notable group is developing and steadily

increasing each year. Data shows that the generation of Baby

Boomers, present largely the population of pet owners as they become

‘Empty Nesters”. 27 As an increasing number of children leave the

households, the Boomers fill their emotional void with a pet

companion, within the age group of 45-64, 57.6% own a pet.

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17

Consumer Analysis

PSYCHOGRAPHICS The typical “pet parent” is more than just a pet owner. The

trend towards treating the pet as a part of the family, especially in

households with no children, has become a fundamental part of the

mentality of the target audience of “pet parents”. 30

“Pet parents” view shopping for their pet as if shopping for

their own child. In a pet marketing outlook report, pet owners rated

that quality trumped the price of the item 92% to 87% in a poll

measuring most important factors in product selection. As parents

would pay premium prices for their child, “pet parent” take extra

initiative to find the product that is most healthy and beneficial for

their pets. Pet owners consistently consult veterinarians as a parent

would consult with pediatricians. Furthermore, the preference among

pet owners for “organic” products has caused a movement among the

pet industry.

Also, household incomes play a key role/are an essential factor in

selecting the target audience. As mentioned earlier, the dual household

construct commonly is the most customary because they have two

people in the household bring in income . According to Simmons,

households with an income level of $50,000+ are approximately 4%

more likely to shop at PetSmart stores over super marts or other pet

stores. There is a direct positive correlation with household income and

the amount of preference to shop at a PetSmart and other specialty pet

stores. They represent a majority of sales revenue; therefore, the

marketing strategy message should be directed towards middle and

upper class households. Household incomes of $75,000-$99,999 are

18% more likely to shop at pet retailers. Households ranging from an

income of $100,000+ are 40% more likely to purchase products at

PetSmart as compared with lower income households. 29

Another insight into the target audience included that

females were 18% more likely to shop at PetSmart stores

over men. Also pet owners had a preference of shopping with

their significant other when purchasing pet products. It is almost seen as

a family activity. They truly enjoy the overall experience that they receive

when they shop for or with their pets. Furthermore, the

normal “pet parent” feels strongly about supporting organizations that

are or are connected with bring awareness to animals and pet cruelty.

Finally, it is important to note that “pet parents” are an ever

increasing group and the diversity among these individual is becoming

more apparent each year. Also the age group of 18-25 is ahead of the

trend when looking at the pet industry. A celebrity movement toward pet

ownership and awareness has influenced this age group immensely.31

Their mentality holds a strong correlation between owning a pet and

having a “coolness factor” . Creating an environment that focuses on the

connection between the pet owner and their furry companions would

continue the favorable perspective of the company. Also, with the

increasing groups in pet owners of younger pet owners as well as

minority owners, one would suggest catering to the needs and desires as

well.

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18

Group

Member

Distribution

Methods

Megan Cusick Sent the link to all of my residents in my hall and updated my Facebook status with a link to the survey.

Cureton Gannon Sent the link to members of my multiple organizations and my fellow employees at Quarry Trail. .

Susan Graham Sent emails to all the members of PRSSA and made a Facebook status containing the survey’s link.

Caroline Hurd Sent emails to all of my former co-workers at a car dealership and to my extended family and friends.

Chandler Lennon Sent out emails to Campus Program Council and put a link on my Twitter.

Julia Travis Used social media in two ways: Tweeted the link to all of my 106 followers and updated my Facebook Status with a link that all of my Facebook friends could access.

Research Objectives • To measure the target market’s pet-shopping frequency

• To measure the target market’s monthly spending on pet-related products

and services

• To measure the target market’s awareness of brands within the pet products

and services industry

•To assess the target market’s attitudes/beliefs about differentiating

characteristics of brands within the pet products and services industry

• To assess the target market’s attitudes/beliefs about PetSmart

• To assess the target market’s attitudes/beliefs about PETCO

• To assess the target market’s awareness/attitudes/beliefs about current

PetSmart promotional cause-related marketing campaigns

• To identify strategies to inform and promote cause-related marketing efforts

for PetSmart

• To identify if there are gender and income differences for the above

measures

Sample Profile In order to reach an accurate verdict from our survey, we

need a large sample size. With 6 people in our group, we are

intending on having a sample size of 120 participants. The only

qualification for filling out our survey is the ownership of a pet.

Data Collection Method To gather survey data, we will administer our surveys via a

range of online outlets. These outlets include emails and social

media sites, such as Twitter and Facebook.

Survey Results

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Survey Results

19

Research Objective Survey Question

Number To measure the target market’s pet-shopping frequency

8,15,19,20,21,22,24

To measure the target market’s monthly spending on pet-related products and service

23,24

To measure the target market’s awareness of brands within the pet products and services industry

14,18,25,28,30

To assess the target market’s attitudes/beliefs about differentiating characteristics of brands within the pet products and services industry

14,16,17,18,20,22

To assess the target market’s attitudes/beliefs about PetSmart

16,17,21,26,27,28,29,31,32

To assess the target market’s attitudes/beliefs about PETCO

16,17,21

To assess the target market’s awareness/attitudes/beliefs about current PetSmart promotional and cause-related marketing campaign

35,36,37

To identify strategies to inform and promote cause-related marketing efforts for PetSmart

33,34,38,39

To identify if there are gender and income differences for the above measure

1, 42

Survey Design

We conducted a web-based survey using S-

Creator, a free survey creating website. We

distributed the link via e-mail and social media.

Each member was responsible to reach at least

20 participants to assure that we would have a

sample of 120 participants.

The survey consisted of 42 questions, one

of which was a screening questions. If the

participant answered “no” to “Do you own a

pet?,” he or she was not permitted to continue

the survey.

By choosing a web-based method, we

were able to avoid many potential problems

associated with conducting a survey. We

avoided mistakes and biases that exist when

having an interviewer present. With an online

survey, the interviewer did not record the data,

thus effectively negating interviewer error. By

the interviewer not being present, the participant

did not feel pressured, therefore removing any

interviewer bias.. We also incorporated several

different types of scales to further obtain more

accurate information. We attempted to enhance

our response rate by asking all demographic

questions at the end of the survey that may have

otherwise made people hesitant and/or

uncomfortable.

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Survey Results

20

Participant Profile We had 139 respondents complete our survey (n=139) with 42 being

male and 97 being female. 97.8% of our respondents listed White as their

ethnicity. There was not much diversity in ethnicity among our respondents.

There were 79.9% of our respondents who were between the ages of 18-25.

We had no respondents above the age of 55. A variety of income levels were

listed by our respondents, but the majority, 29.5%, had a household income of

“Under $19,999”. However, with a percentage of 19.4%, the second most

represented income level was “$100,000 or more”. The majority of

respondents reported an education level of “some college”. 64.7% of the

respondents fell in this category. After running a t-test, we found that there is

a significant relationship between age, education level, and household income.

Age was positively correlated with level of education (r=.388, sig=.000) as

well as reported household income (r=.288, sig=.000).

According the survey results, 108 respondents listed that they had a

dog, 52 listed a cat, 25 listed a fish, 1 listed a bird, 3 listed a reptile, and 14

respondents listed “Other”. Based on the results, most respondents indicated

that they had either a dog or a cat.

40%

12%

37%

11%

Seasonality: Product purchase patterns

Winter

Spring

Summer

Fall

Seasonality Respondents seem to shop more for their pets in the Winter and

Summer. As shown in Figure #19, of the respondents, 40.3% listed that they

spent more on their pet in the winter, and 36.7% listed summer. Winter is

probably the highest because of the holidays that fall within this season. “Pet

parents” tend to buy presents/ clothes for their pets during the holidays.

Figure #19 also suggests that the high spending in the summer is probably due

to the weather. In the summer, pet owners spend more time outdoors with

their pets and do more activities.

Figure #19

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Survey Results

21

33%

4% 2%

60%

1%

Media Use Frequency

TV

Radio

Newspaper

Internet

Other

Media Outlets According to Figure #20, of all of our survey respondents, internet

was the most used media outlet by far. However, the media outlet through

which respondents view the most pet advertisements was television.

From this, it is clear that pet stores should utilize the internet more for

advertisements.

PetSmart Charities

When asked to order the importance of the different PetSmart

Charities from 1 being most important and 5 being least important,

respondents viewed Animal Cruelty as the most important with a

mean of 2.37 while Pet Education was listed as the least important

with a mean of 4.42.

Cause 1 2 3 4 5 Mean*

Animal

Adoption

16.5 13.7 42.4 21.6 5.8 2.86

Spay/Neuter 18 14.4 20.1 33.1 14.4 3.12

Animal Rescue 22.3 41 16.5 12.9 7.2 2.42

Pet Education 4.3 5.8 3.6 16.5 69.8 4.42

Animal Cruelty 37.4 23 15.8 12.2 11.5 2.37

Importance of PetSmart Charities

Percents and Means

*On a scale from 1 to 5, 1 being Most Important to 5 being Least Important

Figure #20

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Survey Results

22

Pet Spending After running tests, we discovered that there is not

a significant relationship between the differences in men

and women and pet spending. They also have a very weak

negative correlation. This shows that we should target

men and women equally with advertising and our allotted

expenditures.

Pet Products The means show that the main focus in pet

products is price for both men and women. According to

the data, this relationship is not significant and shows a

very weak negative correlation.

Main Concern in Pet Products

Significance between Men and Women

n=139

Means

Measure Men Women Sig. Level

(2-tailed)

Pearson

Correlation

What is your

main concern

when shopping

for pet

products?

2.3333

2.2887

.762

-.026

(Mean values based on choices: 1-Health, 2-Price, 3-Quality, 4-

Other)

Pet Spending

Significance between Men and Women

n=139

Means

Measure Men Women Sig. Level

(2-tailed)

Pearson

Correlation

About how much

do you spend a

month on your

pet?

3.023

8

2.9278

.647

-.039

(Mean values based on choices: 1-$10 or less, 2-$11-$25, 3-$26-

$40, 4-$41-$59, 5-$60 or more)

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Consumer Insights

23

In addition to our quantitative research, we carried out qualitative

research to improve our client’s as well as our comprehension of pet owners,

especially “pet parents” and learn how to enhance our techniques to target

them. To achieve this information, we conducted a focus group as well as

several personal interviews.

Our focus group warranted many benefits, such as more engaged and

interactive participation from the group setting. Also, it helped the answers of

the respondents to be more impromptu and genuine. Finally, the information

we received from the focus group was faster and more easily analyzed that the

personal interviews.

Focus Group Objectives •Further develop insight into consumer target audience (needs,

motivations, etc.)

•Basic image (brand image) to consumers and others

•To determine people’s knowledge of PetSmart’s sponsored charities

and effectiveness of their cause-related marketing (in-depth

information)

•To answer why “pet parents” are affected by certain advertising

techniques and not by others and what each are ( which ones are most

effective)

Focus Group

The focus group that we conducted assisted our research group to achieve our

objectives by giving us further insight into why consumers make the

purchasing decisions they do and to assess what factors contributed most. This

focus group provided the opportunity to gain understanding of attitudes and

motivations behind the decisions. Furthermore, it provided an opening to

further probe several different types of pet owners, especially “pet parents”,

and derive from their answers interpretations and insights for our client. We

accomplished this through a series of open-ended questions in order for the

participants to provide answers that allowed them to give detailed answers and

greater comprehension.

In order to recruit the participants we required, we offered

fresh baked desserts and beverages to create incentive for

participation. To acquire a relevant sample, we asked pet owners

around campus. Even more, we performed screenings of the group to

assure that the sample would be truly significant representation of pet

owners. Our focus group was administered on November 16, 2010 at

8:00 p.m. in the Multipurpose Room of Humes Hall on the University

of Tennessee campus. We used two moderator guide to direct and

focus the discussion in order to retrieve the responses of the questions

we were trying to research.

Each member was responsible for a specific task throughout

the focus group. Cureton Gannon and Megan Cusick were moderators

for the duration of the discussion. They were in charge of guiding the

topics and keeping the group on task throughout the conversation.

Caroline Hurd was the note taker of the group. She copied down all

relevant information mentioned in order to refer back to for further

analyzing. Susan Graham was responsible for the audio recording of

the focus group session in order to gather thorough and accurate

record of the conversation. Julia Travis and Chandler Lennon

managed miscellaneous tasks and was in charge of hospitality, such as

setting up the room, distributing the refreshments, and various others.

For the sake of running a smooth focus group, Megan and

Cureton directed the discussion so that each participant was allowed a

chance to respond to each question and give their input. Being

cognizant of the possibility of moderator and dominant responder bias,

we hoped to overcome this possibility. We also made sure that body

language and word delivery was kept neutral. Each respondent’s

answer was affirmed to encourage a comfortable setting. Also an

objective of the focus group was to obtain individual instead of group

consensus answers. Furthermore, we prevented interviewer bias as

well by keeping the conversation impartial while maintaining a

comfortable environment.

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Consumer Insights

24

We lead personal interviews as well which assisted us in obtaining

more extensive, detailed responses that explored attitudes, motivations, needs

and wants. The personal interviews provided the opportunity to talk with “pet

parents” without the potential for a bias or pressure from other participant’s

answers.

In order to figure out the best appeal to our target audience, we

recruited “pet parents”. These are people who represent people who not only

own pets, but also consider them to be supremely important to them and part

of their family. Our focus for these personal interviews was to explore and

capture attitudes and motivations for the participants.

Personal Interview Objectives •Further develop insight into consumer target audience (needs, motivations,

etc.)

•Basic image (brand image) to consumers and others

•To determine people’s knowledge of PetSmart’s sponsored charities and

effectiveness of their cause-related marketing (in-depth information)

•To answer why “pet parents” are affected by certain advertising techniques

and not by others and what each are (which ones are most effective)

Personal Interview We arranged for our personal interviews to be held in a more intimate

environment with friends and family who had no knowledge of our research

project, so as to not hinder or skew answers and maintaining an atmosphere of

for more honest feedback. Each member was responsible for conducting at

least one personal interview. Afterwards, we gathered our responses and

analyzed them to find any common themes.

Personal interviews provided participants the chance to give their

opinions without the improvisation of the focus group. For this reason, we

were able to attain more detailed accounts of specific behaviors and attitudes.

We utilized the structured interview in order to achieve information focused

directly on the areas that we were researching. Also we were able to indicate

multiple commonalities between the participants.

We analyzed our results by looking through the lenses of

our objectives. We for common themes among factors dictated most

important to distinguish motivations for “pet parents” during

shopping. We also observed many types of consensus among the

respondents, as well as when there was discord. This provided the

research team a chance to achieve better understanding of common

links and why these themes were relevant and significant.

We used the following steps in order to effectively analyze

our date for both the personal interviews and focus group:

familiarize self with data set, analyze, form categories of

importance, make connections between the categories, determine

importance of the connections. Each group member became

familiar with the data by reading the data repeatedly. Also we

reviewed the audiotape and the notes taken to be certain that all the

quotes and further connection we correct. Then we focused on

examining each question to gain further insight separately. This step

allowed us to uncover the similarities to form the connections. After

analyzing the similarities, we determined the relevance of the

connections drawn. This was necessary because the amount and

diversity of the information we gathered. When we determined the

importance of the connections and common themes that emerged,

we were able to bring the information together. Finally, these steps

allowed us to formulate recommendations for our client.

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Consumer Insights

Results

25

Pet Industry During the qualitative research, two specific questions were

asked which demonstrated the unique bond between “pet parents” and

their pets. The questions, as seen in Appendix #, were “ What is your

favorite thing about being a pet owner?” and “Some people claim it

ridiculous to dress a pet up… throw Birthday parties, give them

Christmas gifts, etc. What is your response to this?” For the first

question, a respondent replied, “ I love it because my dog is my

constant companion and she is also constant love. I don’t know what I

would do without her. (Female, 20 years old)” Furthermore, when the

second question was asked, the general consensus was that dressing

the pet up with clothes was not necessary, but almost every pet owner

provided a stocking or present for the holidays. These two responses

combine to exemplify the extraordinary connection pet owners have

with their pet, especially the target audience of the client. Overall, the

group expressed the most prevalent reason for owning a pet was

“safety and companionship”.

Each participant expressed preferences when shopping for

pet supplies. When asked the question, “ What stores do you normally

shop for pet supplies and why?” the majority of respondents said that

PetSmart was the store they shopped most frequently for specialty

items or high quality products. However, if the purpose of shopping

was “everyday items” such as food, the factors of convenience and

price took precedence, allotting Wal-Mart and Costco the more

attractive choices.

Finally, respondents were asked the question to “Describe

your ideal pet store in three words.” The frequently repeated terms

tended to be inexpensive, clean, organic ingredients, wide variety,

and a friendly and knowledgeable staff. Through these responses, the

group indicated a strong preference to high quality products with a

highly skilled staff along with a price that matched those of

superstores.

Media/ Advertisements

Respondents unanimously said that TV was the most frequent and

effective place to have the pet store advertisements. As well, it is the most

influential medium to obtain information about pet stores. However, from our

interviews and focus group, it was discovered that the Internet was the most

used medium. Both mediums have ample influence in people’s lives. Many

people during the focus group were able to recall a specific pet ad from the

television while they we not able to remember a print ad. One respondent

stated that TV ads “ have the cute talking puppies and a more engaging ad”

than a print ad does (Male, 22 years old). However, our research uncovered that

there is an emerging medium that is more influential than any medium before.

When asked, “What qualities are most important for pet store

advertisements?” the three most prevalent responses received were “ cute

dogs”, “no annoying jingles”, and “not overbearing” (Appendix 3).

Furthermore, a participant’s response for her attraction to both television and

Internet ads we the ability they have to “engage” the audience (Female, 21

years old).

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Consumer Insight

Results

26

Conclusions

Through the focus group as well as the six personal

interviews, participants were allowed the opportunity to express

preferences, reveal attitudes and motivations, report needs and wants,

and allocate further insights about who, when, where, why, and how

they tend for their pet. Participants agreed overall that organic, quality

products are very important and PetSmart was chosen as a pet store

with these types of products. Also, respondents agreed collectively

that pet adoption and charitable giving is seen as a positive aspect of a

socially conscious retailer. Participants expressed that cause-related

marketing did not always influence purchasing decisions, but was help

as an agreeable aspect. As expressed throughout, PetSmart is a top

retailer because of its consumer perceptions of quality products and

extra services offered, such as grooming and obedience classes.

Finally, during the focus group participants were asked to match pet

stores with certain attributes. The three words chosen for PetSmart

were “organic”, “customer service”, and “enjoyable”. This indicates

that PetSmart promotes and overall image

of quality and service in the pet industry.

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Client

Recommendations

27

Experience/customer service Our research has proven that customers find the overall experience of

a pet superstore to be extremely important. A large part of the experience is in

customer service. Out of 5 different qualities, numerous interview participants

chose quality customer service as the most important factor for a quality pet

store experience. This includes a 20-year-old female, a 78-year-old female,

and a 20-year-old male. Our focus group also revealed similar information,

and those participants all said that they noted customer service when entering

a pet store. Therefore, we find it important to train employees in order to be

both knowledgeable and friendly. Greeters at the door can be beneficial or a

“ten foot rule” or “two minute rule” could be put in place. This requires

employees to at least acknowledge any customer within ten feet of them

and/or make sure to approach any customer within their first two minutes in

the store. Employees should be able to answer any question a customer may

have, this will require intensive training and preparation.

Cleanliness As found in our focus group, respondents chose “cleanliness” as a

quality they would expect to see in their ideal pet store. We believe that

this is something PetSmart could apply more to their promotions and

marketing. People enjoy shopping in a clean environment and if PetSmart

were to include this people would consider shopping here more than the

competitor retailers. We think that implementing how clean the PetSmart

stores are into their advertising and marketing campaigns would increase

awareness and loyal consumers to the store.

Convenient Charitable Efforts

From our research, we determined that people are more likely to

participate in charitable events if they are convenient for them. A

recommendation from our focus group participants was to offer customers the

opportunity to donate to a charitable cause when checking out. Our focus

group participants also expressed that they did not feel that PetSmart promotes

their charities enough. Promoting upcoming charitable events in their

advertisements could be a possible solution for this.

Internet Recommendation One communication effort that should be utilized is the

Internet, including social networking sites. We discovered many

participants felt that PetSmart did not use the Internet to its complete

potential. We asked participants where they saw the most

advertisements and a very low percentage reported seeing them on

the Internet. This shows an area of improvement and opportunity.

PetSmart should allot a larger portion of advertising expenditures to

be used in efforts to utilize the Internet. In addition to advertising,

participants also reported an interest in PetSmart social networking

sites. The survey results showed a large portion of participants are on

social networking sites, such as Facebook and Twitter, and would be

willing to “follow” PetSmart. Being proactive on Facebook and

Twitter can increase promotion and awareness among a younger

demographic and target audience.

Promotion of services Promotion of services provided was another aspect we

discovered in our focus group as a quality that they would like to see

in their pet store. Services such as grooming, obedience, and boarding

are high on the pet parents list of needs from their pet store.

Promoting in the social media is something that could be put into

detail and share links to the pet store and also comments from past

customers. Newspapers and magazines are always a great source as

well. Television commercials that would promote the services would

not be the typical pet store commercial but promoting the service is

something we have found would attract more customers.

Page 30: AD/PR 340 D . P F 2011 · pet foods must be processed in conformance with the low acid canned food regulations to ensure the pet food is free of viable microorganisms (see Title 21

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28

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