brand positioning cloud star final report. 1.brand summary 2.market size and trends 3.competitive...

Brand Positioning

Cloud Star Final Report

http://www.cloudstar.com/default.asp

1. Brand Summary 2. Market Size and Trends3. Competitive Review4. Cloud Star Marketing

Strategy5. Market Research

Analysis6. Media Plan

Presentation Overview

Executive SummaryBrand Summary:

• Cloud Star is a brand sensitive to dog's allergy needs in treats and food.

• Performs very well with certain demographics; Cloud Star could either focus marketing on these groups or on ones they reach less.

• Premium, all-natural dog treats, especially for pets with allergies.

Market Size & Trends:

• The market is increasing in price and in dollar, however, volume sales is decreasing. This suggests that people aren't buying as the price of treats increases.

• Pricing trends in the category increased by 4% in 2011 and are estimated to increase by 3% in 2012.

Competitive Review:

• Direct competitors also focus on all-natural, allergen-sensitive dog food and treats (premium dog food makes up 40% of sales in dog food).

• Competitors (Direct):o The Honest Kitcheno Zukeso Stella & Chewy'so Nutroo Sojo'so Blue Buffalo

• Competitors (Indirect):o Greenies, Caesar, Pedigreeo Purinao Hill's brando Iams

Executive Summary ContinuedCloud Star Marketing Strategy:

• Cloud Star can focus their marketing on ideas such as Made in the USA, all-natural ingredients, and food that is friendly to pets with allergies, since these are their strengths as a company.

• Unique Selling Proposition including;o Made in the USAo All-Natural Ingredientso No Artificial Colors, Flavors, or Preservatives

• Primary Business/Marketing Challenge: increase brand awareness.

Market Research Analysis:

• Customers want a dog treat that is: Healthy, Nutritious, All Natural Product, Good for Teeth, U.S. Made, and Premium Quality. The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children.

• Social Media is a new and upcoming market that needs to be acted on.• Online Ad's reach a small portion of respondents but is an easy market to get in to.

Media Plan:

• Awareness is key to Cloud Star's success. Making customers aware of Cloud Star's health benefits for pets, as well as their generosity towards charity can strengthen brand awareness.

• Executed through several avenues, including: in-store sampling events, merchandise displays, advertisements in magazines, social media activity, and Google Adwords.

Brand Summary

Business DescriptionBusiness/category competing in:• Dog treats (and extend to other pet

food/care products).

Mission and business philosophy:• To produce all-natural and wholesome

products for dogs that are allergy-free, US made, and made from high quality ingredients

• "For more than a decade, Cloud Star has been producing all natural and wholesome products for dogs, even those with allergies." -Cloud Star

http://www.cloudstar.com/content/about-us.asp

Business DescriptionThe product is:

• Buddy Biscuits

Why Buddy Biscuits?

• Safe option for dogs with allergies

• All-natural option for consumers looking for healthy choice for dogs

• US made for those supporting production within the country

• Company uses sales profits to give back to community.

Business DescriptionCurrent product positioning:

• Premium, all-natural dog treats, especially for pets with allergies.

Product's competitive advantage:

• All-natural

• US made

• Allergy free

• Family owned

• Charitable

Market Size and Trends

Market Size and TrendsTop competitors in “the healthy segment”:• The Honest Kitchen• Zuke's • Stella and Chewy's• Nutro• Sojo's• Blue Buffalo

Size of Dog Treat Market (Sales)• $2,378 million (2012, Euromonitor)

Market Size and TrendsTrends in the market:• Growing in Dollar at 0.6% (2011-2012)

• Declining in Volume at (0.8%) (2011-2012)

(Euromonitor)

Note: Actual sales are increasing while volume declines, suggesting that dog treats are becoming more expensive, but less are being sold as price increases.

Market Size and TrendsTarget consumer by demographics and product

usage:• Female (72%)• Between 45-54 years old (24.9%)• White (86.6%)• Works in Professional Industry (16.9%)• Household Income between $75,000-

$149,999 (34%)• Lives in Southern Region of the US (39.2%)• Currently Married (60.9%)• Census Region: South (107/100 Index)

http://urereporter.mriplusonline.com/selectdemo.asp

Pricing Trends• Increased by 4% in 2011• Estimated 3% increase in 2012• Driven by strong growth of premium

segment

http://www.portal.euromonitor.com.ezproxy.lib.calpoly.edu/Portal/Pages/Analysis/AnalysisPage.aspx

Cloud Star SWOT AnalysisStrengths

Reaches consumers with special health needs for their pets (i.e. dogs with allergies to regular dog food).

Cloud Star integrates charity with its sales, so customers are actively aware of the brand's generosity towards animal welfare.

Weaknesses Low activity and presence on social networks. Small share of overall dog treat market. While a higher recognition for dog treat "Buddy

Biscuits," there is lower recognition for brand name "Cloud Star."

Cloud Star SWOT AnalysisOpportunities

Grow presence with customers on social networks. Target consumers through marketing who are current

buyers, as well as target consumers who are not necessarily buyers yet.

Showcase their all-natural, organic products compared to their competitors (and the allergen-sensitive benefits).

Capitalize on current recalls of competitor's dog treats by picking up the consumers who switch from recalled brands (also US made).

Threats Dog treats market expanding, prices are becoming

competitive. Competitors have a more active presence and

interactions online with consumers (i.e. Nutro).

Competitive Review

Direct Competitors & Positioning

Competitors:

• The Honest Kitchen

• Zuke's

• Stella and Chewy's

• Nutro

• Sojo

• Blue Buffalo

Positioning (for all competitors):

• Marketing healthy, natural, premium, gourmet, and speciality products with a focus on sustainable and eco-friendly methods that appeals to a specialty market.

• Premium Food accounts for 40% of Dog Food Sales (2010)

Indirect Competitors & PositioningCompetitors:

Greenies, Caesar, Pedigree

• Mars, Inc.

Purina• Nestle

Hill's brands • Colgate

Palmolive

Iams • Proctor and

Gamble

Positioning (for all competitors):

• Top four companies accountfor 82% of sales

• Marketing focuses on theemotional aspect of having apet and the model is focused at the mass market

The Honest Kitchen MarketingDehydrated Pet Food

• Start with fresh raw whole foods and then dehydrate

Health Benefits• Food is medicine• Helps with overall health, digestion, skin and coat,

prevents ear infections, body weight and energy• Natural vitamins, minerals and valuable

phytonutrients are maintained

Ingredients and Quality• 100% Human grade• Made in Human Food Facility, same food standards

as human food• No Genetically modified foods

The Honest Kitchen Marketing

Eco-friendly: "Reducing Paw Print“

• Conventional ingredients to certified organic

• 100% free range, antibiotic free, sustainable chicken

• Use all wild caught fish

• No genetically modified seeds or grains

• All manufacturing in North America

• Light weight shipping, reduces emissions

• Dehydration uses less energy than other processes like

canning

The Honest Kitchen Vendor Pledge

Zuke’s MarketingMarkets it's brand using a platform that consists of 6 specific

beliefs:

Healthier Pets make Happier Pets

• Nutrition fuels a healthy pet life

Staying Active

• Adventure Together with your Dog

Showing Devotion

• Be a devoted companion to your dog

Healing Others

• Support Dog and Cancer Fund

Living Green

• Pays employees to ride bikes or scooters to work

• Power offices using 100% Green electricity

• Boxes are 60% recycled

Getting Involved

• Fundraising for pet shelters and animal rescue

• Supports Meet the Breeds, a dog and cat show in New York

Stella and Chewy’s Marketing

“Pets deserve pure, simple, minimally processed food – the way nature intended”:

Only the Good Stuff• Stella & Chewy’s product is made with raw, naturally raised

meat, poultry or fish, sourced from USDA-inspected facilities, without hormones or antibiotics

Nutrition as Nature Intended• Products are natural and raw

Stickler’s for Safety• Products have a seal that states that it went through the Secure-

By-Nature food safety process

A raw diet is better for pets• Improves:

o appetite and digestiono healthy skin and coato Staminao helps support a healthy immune system

Principles:

Nutro Marketing

Proven. Natural. Nutrition.

• Dog Food that is tailored to a dog's life stage, breed size, and

health condition

• Premium natural ingredients with fortified vitamins and

minerals

• Claim that their product is taste preferred by 7-10 dogs

• A small firm stool is guaranteed

Nutro Marketing

Pet Food Safety and Quality

• Own facilities

• Make over 600 quality checks daily

• Inspected by FDA

• Good Manufacturing Practices, Good Hygiene Practices and Hazard Analysis and Critical Control Points

• Test every grain shipment for myotoxins

• At least one complete shutdown for in-depth cleaning and sanitation per week

Sojo’s Marketing

Options:o grain free

o gluten free

o raw freeze-dried meat

o just add water

o add water and meat

• Human grade ingredients, USDA meat, no genetically

modified foods

• Nutrient profiles for products

• Frequently asked question section on website

Marketing of Blue BuffaloWhy BLUE? Because only BLUE is made with the unique combination of

high-quality, natural ingredients plus exclusive LifeSource Bits.Nutrition Philosophy “Love them like family. Feed them like family.” What’s In Our Food and Why What’s Not In BLUE and Why

LifeSource BitsLifeSource Bits are the small, dark kibbles mixed in with our BLUE dog and cat dry foods. They contain a precise blend of vitamins, minerals, and antioxidants selected by holistic veterinarians and animal nutritionists. To ensure that dogs and cats get the full benefit of these vital nutrients, LifeSource Bits are “cold-formed” to help preserve their potency.

Promotional Programs of "The Honest Kitchen"

"Customer Rewards Program"

• Earn free coupons and rewards by sending in UPCs of any

full size box of dog food

"Animal Rescue Organizations"

• Approved organizations may qualify for a 30% discount

• Breed Rescues, Sanctuaries, Shelters and Foster Families

associated with registered rescue organizations


"Allies Program"

• "Allies" receive an Honest Kitchen discount on purchases,

a free Honest Kitchen T-shirt, literature and access to

product samples as well as a chance to participate in new

product taste-tests

"Non-profit Donations"

• Provides product samples, full-sized products and

occasional monetary donations to a variety non-profit

events nationwide

• Charity Galas, Walks, Raffles, Auctions, Sponsorships,

Goodie Bag items and other community outreach

programs


"Honest Breeders Program"• Work with responsible breeders • They don't allow their products to be sold in stores that

sell puppies or kittens• Work with responsible breeders who work hard to place

their puppies and kittens in loving homes

• Qualified and approved breeders are set up with a special discount code for online dog food purchases


"Service and Working Dogs"

• Special Program for the following service dogs:

o Search & Rescue, FEMA, Bomb Squad, Active Military, Police K9, Avalanche, Cadaver and Registered Service Dogs

o Standard Working Dogs discount of 20% off MSRP

o 30% off and occasional free products for active Working Dogs whose handlers allow the use of photos of their work and provide endorsements for promotional purposes


"Working with the Veterinarian Community"• Free Box of food, complimentary samples and literature

and/or an Honest Kitchen hosted 'Lunch & Learn'

Other

• The Honest Kitchen (thk) Blog

• Giving Back

o "Charity of the Month“

• Media Center

o View recent media clips about the company and their

products

Promotional Programs of "Zukes"

Donates a portion of annual profits to Dog and Cat Cancer Fund

Sponsor Events:

• Zuke's Fuel the Love Tour

• Dock Dog World Championship

• Hero Dog Awards

• Flyball NAFA CANAM Classic

• Skyhoundz World Canine Disc Championship

• Furry Scurry

Promotional Programs of "Stella & Chewy's"

"Charitable Work"

• Friends of Barrington Dog Park

• Animal Rescue, Inc.

• Friends of First Run

• The Mayor's Alliance for NYC’s Animals

• Hope Veterinarian Clinic

• Central Park Paws

• Tri County Humane

Society

• Broadway Barks

• Dog Habitat Inc.

• Animal Haven

Promotional Programs of "Stella & Chewy's"

"In The Press"

•Huffington Post: The Blog

•The New Barker: Product Reviews

•Forbes: Leadership

•Pet Business

•The New York Times: Well Pets

•Dogster.com

•Pawdogs

•Pet Product News

•And 16 others

Promotional Programs of "Nutro"

"My Nutro Rewards Program"

• Sign-up, receive savings, pet-health tips and the latest

news via email

• Tailored pet information and articles

• News about promotions and events

• Insights into natural nutrition

"Sustainability & Community Initiatives"

• "Room to Run" Dog Park Appreciation Project

• The National Disaster Search Dog Foundation

• "Rescue Bank" Pet Food Donation

• In-kind Donations


"Commitment to Veterinary Community"

• Continued research of pet nutrition to develop solutions

and optimal nutrition that Veterinarians can

recommend with confidence

"Free Continuing Education Webinar"

• "Veterinary and Pet Owner Attitudes and Awareness

Toward Natural Nutrition"

"Nutro Company Breeder Program"

• Breeders receive special offers and information


"Nutro Pet Food Trainer Kit"

• Brochure about the Nutro Family of Products

• $5-off coupons for each pet parent

• $10-off coupon for any Nutro Dry Dog Food

News & Press

• A Variety of Press Releases

Promotional Programs of "Sojo’s"

"Breeders who use Sojo’s"

• List of breeders who use Sojo’s products

"Sojo’s in the Media"

• Pet Business Magazine, Pet Product News, Pet Elite

Magazine, Animal Wellness Magazine, etc.

Press Releases & Product Photos

Promotional Programs of Blue Buffalo

Create your own BLUE Trading Cardo “Card’s of the Month”

o Compare your Brand to BLUE

o BLUE TV

o Mailing List Sign-Up

Media used by “The Honest Kitchen

https://www.facebook.com/TheHonestKitchen

https://twitter.com/honestKitchen

http://pinterest.com/honestkitchen/

http://www.youtube.com/HonestKitchen

http://www.thehonestkitchen.com/thk-blog


https://twitter.com/honestKitchen

http://pinterest.com/honestkitchen/

http://www.youtube.com/HonestKitchen

http://www.thehonestkitchen.com/thk-blog


Media used by “Zuke’s”

https://www.facebook.com/ZukesPets

https://twitter.com/ZukesPets/

http://pinterest.com/ZukesPets/

http://www.zukes.com/join-us/rss

http://www.youtube.com/user/ZukesPets

https://www.facebook.com/ZukesPets

https://twitter.com/ZukesPets/

http://pinterest.com/ZukesPets/

http://www.zukes.com/join-us/rss

http://www.youtube.com/user/ZukesPets

Media used by “Blue Buffalo”

https://www.facebook.com/BlueBuffaloAllNaturalPetFood

https://twitter.com/bluebuffalo

https://www.facebook.com/BlueBuffaloAllNaturalPetFood

https://twitter.com/bluebuffalo

Media used by “Stella & Chewy’s”

http://www.facebook.com/stellaandchewys

https://twitter.com/stellachewys

http://www.facebook.com/stellaandchewys

https://twitter.com/stellachewys

Media used by “Nutro”

https://www.facebook.com/NutroProducts

https://twitter.com/nutro

http://www.youtube.com/user/thenutrocompany

https://www.facebook.com/NutroProducts

https://twitter.com/nutro

http://www.youtube.com/user/thenutrocompany

Media used by “Sojo’s”

http://www.facebook.com/pages/Sojos/100210990057533

https://twitter.com/sojospetfood

http://www.youtube.com/user/sojos

https://plus.google.com/108636661741092643568#108636661741092643568/posts



https://twitter.com/sojospetfood

http://www.youtube.com/user/sojos

https://plus.google.com/108636661741092643568

https://plus.google.com/108636661741092643568

Cloud Star Marketing Strategy

Marketing Strategy

Unique Selling Proposition (USP)• Made in the USA• All Natural Ingredients• No Artificial Colors, Flavors, or Preservatives• Free of Corn, Yeast, Sugar, Salt & Soy• Wheat Free and Low Fat Options Available• At least 10% of net profits donated to non-profit

organizations that benefit animals, women, children and the environment

Primary Marketing/Business Challenge• Increase Brand/Product Awareness

Pricing Strategy

Original Natural Biscuits (16 oz.)

$6.49

Soft & Chewy (6 oz.)

$5.99

Competition Pricing StrategyZuke's Grain Free

Jerkey Bites Natural Dog Treats (6oz.) = $7.99

Blue Buffalo Health Bar Dog biscuits w/ chicken liver (16oz.) = $9.71

Competition Pricing StrategyThe Honest Kitchen

"Smooches" Low calorie, free-range chicken & cranberry natural dog treats 8 oz box = $7.99

Sojo's grain free lamb & sweet potato dog treats (10 oz) = $7.29

Distribution Plan• Products can be

found at pet food stores nationwide

• Select items can be found at pet food stores or supermarket pet food aisles

• Also available online at

www.amazon.comwww.kvvet.comwww.cloudstar.comwww.petfooddirect.comwww.chewy.comwww.sitstay.comwww.valleyvet.comwww.dogtoys.comwww.wag.comwww.drugstore.com

http://www.amazon.com/

http://www.kvvet.com/

http://www.cloudstar.com/

http://www.petfooddirect.com/

http://www.petfooddirect.com/

http://www.chewy.com/

http://www.sitstay.com/

http://www.valleyvet.com/

http://www.dogtoys.com/

http://www.wag.com/

http://www.drugstore.com/

Distribution Plan• By inquiring on Cloudstar.com,

individuals can get more info about becoming wholesalers if they obtain a resale certificate

• Request Certificates can be completed by consumers who are unable to find Cloudstar products in their market of choice and returned to manager to show interest in product line

Recommended Positioning

For pet owners who are looking for all natural pet food products, Cloud Star's Buddy Biscuits are organic, US made dog treats that are allergen free and contain nutritious and healthy ingredients for their dog(s).

Preliminary Marketing Objectives

Gain Market Share

Increase Brand Awareness

Increase Sales

Advertising Copy Strategy• Who the advertising is directed at

o Dog owners looking for all-natural, healthy dog treats

• A promise of the basic benefit to the consumerso Promise is provided in the ingredients description

and nutrition facts on the label

• The reasons why the promise is believable and can be deliveredo The American Association of Feed Control Officials

(AAFCO) regulates the ingredients

Differentiate From Competition

• After thorough research of Cloud Star and its competitors, Cloud Star’s pricing, marketing, and promotional strategies,as well as the product itself, are very similar to the competitor’s

• This may be something that the company wants to address to make themselves stand out more

Key Consumer Attributes to Focus On• Target Customer

o Roughly 2/3 consumer population is femaleo Age brackets of 21-30 & 46-55o HHI > $60,000/yearo Has childreno Owns 2 or less dogs

• Product Attributes Ranked Most Importanto Healthyo Nutritiouso USA Madeo Good For Teetho All Natural

Market Research Analysis

Research MethodologySurvey research obtained by conducting

questionnaires and in-person interviews of dog owners in targeted central coast locationso San Luis Obispoo Morro Bayo Arroyo Grandeo Pismo Beacho Los Ososo 183 Respondents in total survey

Demographics- Gender

Total Population

> 70% chance of buying

• Slight variation between Total and >70%, but difference is negligible

• Roughly 2/3 of the population that purchases treats is female

Demographics- Age• There is no difference between Total

Population and >70% o Both Total Population and >70% are consistent with

the fact that the two main age demographics are 21-30 and 51-60

Total Population

> 70% chance of buying

**41-45 was not included as one of the answer options.

Demographics- Household Income

• There is no difference between the Total Population and >70% o Our consumer's HHI is over $60,000 per year

47.3% have HHI over $60,000

**Note: data taken from data filtered >70% chance of buying

Demographics- Number of Dogs• There is no difference between Total

Population and >70%o Majority has 1 dogo About 90% have 2 dogs or less

88.3% have 1-2 dogs

( >70% chance ofbuying)

89.9% have 1-2 dogs

( Total Population)

Where does the consumer shop for dog treats?

Top 4 Locationso PetSmart or Petcoo Grocery storeo Local pet storeo Large retail Store (e.g. Costco)

• People who are more likely to try Buddy Biscuits are more likely to buy at large pet store chains and local pet stores

>70% chance of buying

Total Population

Target Consumer Demographics: >70% chance of buying

• The target consumer...o is female (66.7%)o are in the age brackets 21-30 (32.4%) or

46-55 (29.5%)o has 1-2 dogs (88.3%)o has a HHI of over $60,000 per year

(47.3%)o has children (58.3%)

Children are ages 16-25 (55.2%)

**Note: All percentages were taken from data filtered >70% chance of buying

Types of Dog Treats Purchased

Type of Treat % of Respondents

Cookie/Biscuit treats 58.2%

Chewy treats 36.7%

Jerky Treats 38.0%

Training treats 18.4%

Treats with specific health benefits (i.e. dental care, eye health, coat health) 29.1%

All Natural treats 27.8%

Home made or home cooked treats 14.6%

Other (please specify) 4.4%

• Other types of treats:o Cow Hooveso Rawhide Boneso Rope Toy Chewso Peanuts

o Chew Boneso Dehydrated Meato Bones

Respondents were asked what types of dog treats they purchase for their

dog.

• Type of treat most purchased = Cookie/Biscuit Treats (58.2%)

**Data is from total sample

Features Customers Look For When Buying Dog Treats (Top 8)

Top Features of Dog Treats: Healthy, Nutritious, Good for Teeth, US Made

Those who have heard of Buddy Biscuits rate the attributes higher

Attribute Score Attribute Score

Healthy 95.2 Healthy 90.6

Nutritious 92.2 Nutritious 88.0

US Made 87.8 Good for Teeth 80.4

Good For Teeth 87.4 Premium Quality 79.8

All Natural 87.0 All Natural 79.4

Premium Quality 84.8 US Made 79.0

Organic 82.8 Inexpensive 76.0

No Artificial Preservatives

82 Organic 75

Heard of Buddy Biscuits Total Sample

Attribute Score Attribute Score

Vitamin Fortified 78.8 Vitamin Fortified 74.4

Company that gives back to the community

78 No Artificial Preservatives 73.6

Grain Free 72.2 Company that gives back to the community

70

Helps Control Weight 70.6 Helps control weight 67.6

Inexpensive 69.6 Grain Free 65.2

Recommended by a Pet Store

66 Recommended by Pet Store 62.2

Breed Specific Treats 62 Breed Specific Treats 57.6

Fun Label 59.6 Fun Label 55

Heard of Buddy Biscuits Total Sample

Features Customers Look For When Buying Dog Treats (Bottom 8)

• Those who have heard of Buddy Biscuits rank Giving back to the community higher than those who have not

Feature Mean Feature Mean

All Natural 86.2 Price 79.2

Donates to Animal Shelters

83.4 All Natural 78.0

Price 79.6 Donates to Animal Shelters

73.0

Donates to Environmental Groups

73.2 Donates to Environmental Groups

64.4

Donates to Women and Children

70.8 Donates to Women and Children

64.0

Important Attributes in the Decision to Buy Buddy Biscuits

Total Sample>70% Will

Purchase Buddy Biscuits

Likely users of Buddy Biscuits are rate donates to animal shelters higher than non-users

Product Attribute Recommendations• Customers want a dog treat that is Healthy,

Nutritious, All Natural Product, Good for Teeth, US Made, and Premium Quality

• The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children

• The front of the box should clearly say that Buddy Biscuits has these attributes.

• The box should give a story on side panel that talks about how they donate to animal shelters and made in US.

Price per Package

$ Spent Per Package % of Respondents

$0-5 36.1%

$6-10 44.9%

$11-15 12.2%

$16-20 4.8%

>$20 2%

Respondents were asked how much they typically spend on a package of dog treats.

• A majority of the respondents (81%) said that they spend $10 or less on each package of dog treats they purchase


Amount Spent on Dog Treats Per Month

$ Spent Per Month % of Respondents

$0-5 18.5%

$6-10 19.1%

$11-15 14%

$16-20 21.7%

$21-25 5.1%

$26-30 8.9%

$31-40 5.7%

$41-50 3.2%

>$50 3.8%

Respondents were asked about how much they typically spend total on dog treats per month

A majority of the respondents (73.3%) pay $20 or less on dog treats per month


Amount of Dog Treats Purchased in a 3 Month Period

Packages Purchased % of Respondents

0 - 3 packages 48.6%

4 - 6 packages 32.9%

7 - 10 packages 12.9%

>10 packages 5.6%

Respondents were asked approximately how many packages of dog treats they have purchased within the last 3 months

• A majority of the respondents (81.5%) have purchased 6 or less packages of dog treats in the last 3 months


Brand Awareness

• Top Heard of Brand = Iams

• Top Purchased Brand = Milk Bone

• Cloud Star's brand is significantly less known than any major dog treat brand.

• Buddy Biscuits has more awareness among users and non-users than Cloud StarBrands % People who have

heard of the brand% People who have

purchased the brand

Iams 90.4% 26.2%

Pedigree 86.6% 29.8%

Milk Bone 85.4% 38.3%

Purina 82.8% 27.7%

Kirkland Brand 81.5% 29.8%

Buddy Biscuits 32.5% 12.1%

Cloud Star 20.4% 7.8%

Top 5 Brands Compared to Buddy Biscuits and CloudStar

Brand Awareness

• Buddy Biscuits is heard of similarly to the mid 5 brands

• Buddy Biscuits has a greater purchasing intent by respondents compared to Canidae and Zuke's

• CloudStar still falls below average in both categories, heard of and purchased

Brands % People who have heard of the brand

% People who have purchased the brand

Natural Balance 57.3% 25.5%

Nature Select 51.6% 14.9%

Nutro 47.1% 14.9%

Canidae 30.6% 6.4%

Zuke's 26.8% 9.9%

Buddy Biscuits 32.5% 12.1%

CloudStar 20.4% 7.8%

Mid 5 Brands Compared to Buddy Biscuits and CloudStar

Brand Awareness

Other brands respondents have purchased:

• Vitabones

• Trader Joe's brand

• Blue Buffalo

• Science Diet

• Newman's

• Bully Sticks

• Dogswell

• Greenies

• Stella and Chewy's

• Wellness

• Pure Bites

Brands % People who have heard of

the brand

% People who have purchased

the brand

Sojos 22.9% 5.7%

The Honest Kitchen

21.0% ----

Pinnacle 18.5% 3.5%

Other 1.9% 11.3%

Buddy Biscuits

32.5% 12.1%

Cloud Star 20.4% 7.8%

Bottom 4 Brands Compared to Buddy Biscuits and CloudStar

*The Honest Kitchen was not included in the questionnaire for purchase intent

How are people hearing about their dog treat brand? (Top 5)

There is no difference between where people find out about treats

In-Store Ad's are the best way to reach new customers of Buddy Biscuits

Source % of Respondents

Source % of Respondents

In-Store Ad 45.6 Friends 43.7

Friends 43.9 Family 42.3

Family 42.1 In-Store Ad 37.3

Vet 22.8 Commercial 28.9

Promotions In-Store

21.1 Vet 19.0

>70% Likelihood to Purchase Buddy Biscuits Total Sample

Source % Respondents Source % Respondents

Commercial 17.5 Promotional Material from pet store, like Petco

14.8

Online Ad 15.8 Online Ad 10.6

Social Media 10.5 Social Media (facebook, pinterest or Yelp)

4.9

Emails from the treat company

3.5 Emails from the treat company

3.5

Billboard 1.8 Billboard 0.7

Total Sample>70% Likelihood to Purchase

Buddy Biscuits

How are people hearing about their dog treat brand? (Bottom 5)

• Likely users of Buddy Biscuits are more likely to find out about treats via Social Media than non-users

• Online Ad's reach a small portion of respondents but is an easy market to get in to.

Purchasing Intent

Likelihood of Purchasing BB in the Next Year Total Respondents

Certainly Will Buy (99 chances in 100) 12.0%

Almost Sure Will Buy (90 chances in 100) 7.0%

Very Probable Will Buy (80 chances in 100) 8.9%

Probably Will Buy (70 chances in 100) 9.5%

Good Possibility (60 chances in 100) 12.0%

Fairly Good Possibility (50 chances in 100) 12.0%

Fair Possibility Will Buy (40 chances in 100) 5.7%

Some Possibility (30 chances in 100) 8.2%

Slight possibility (20 chances in 100) 10.1%

Very Slight Possibility (10 chances in 100) 5.7%

No Chance You Will Buy (0 chances in 100) 8.9%

>Good Chance of Purchasing BB 37.4%

*After showing the Buddy Biscuits concept and competitive board

Of the total respondents

• About 37% of all respondents shown the Buddy Biscuits concept would have a good chance of purchasing the product.

Purchasing IntentOf those who ranked the dog treat feature “gives back to the community” as Excellent/Very Good Quality These respondents were 14% more likely to purchase Buddy Biscuits as

compared to all respondents

Likelihood of Purchasing BB in the Next Year Gives Back to Community














Purchasing IntentOf those who responded that they have heard of Buddy Biscuits

• If the consumer is aware of Buddy Biscuits, he/she is nearly twice as likely to purchase

• 59.7% of people who have heard of Buddy Biscuits have a good chance of purchasingLikelihood of Purchasing BB in the Next Year Heard of Buddy

Biscuits














Price of Buddy Biscuits

Price Level % of Respondents

Too High 27.4%

Just Right 70.7%

Too Low 1.9%

Respondents were shown the Buddy Biscuit concept board with product size and pricing, and also the competitor’s products with their sizes and pricing.

• A majority of the respondents (70.7%) found that Buddy Biscuits is priced just right


Implications for Brand Positioning• Among those likely to try, the charitable

component is important to them• Advertise about giving back to community on:

o Packagingo Social media siteso In-Store Ads

Giving Back to Charity is Important

Respondent Type Good chance of buying BB in the next year

% of Total Respondents that agree the trait is good

Total Respondents 37.4% --------

Giving Back Respondents

51.4% 24.4%

Heard of BB Respondents

59.7% 19.3%

Perception of the Quality of Dog Treats• Cloud Star ranked the highest quality among those

who have heard of Buddy Biscuits

• Brand awareness is vital

Brands Mean Rating (Heard of BB) Mean Rating (Total Sample)

Cloud Star 78 69.2

Nutro 76 70.6

Natural Balance 75.6 74.8

Nature Select 75.6 73.2

Zuke's 72 66.8

Canidae 70.8 67.2

Iams 68 71

Pinnacle 67.6 64.2

Milkbone 65.8 70.4

Kirkland Brand 64 67.6

Pedigree 63.8 69.8

Purina 62 68.4

Media Plan

Media PlanThe target customer for Buddy Biscuits is a female between the ages of 46 and 55 with a HHI of over 60,000 per year. This person also highly values a company that donates to non-profit organizations.

Areas to place media:

• In-Store Advertisements

• Specialty Magazines

• Public Relationso Non-profit organization websites for animal shelters,

environmental groups, and groups that benefit women and children

• Google AdWords

• Social media websites o "In their use of technology, the youngest Baby Boomers (ages

45-55) are nearly as likely to be online (and to have a home broadband connection) as younger adults"

http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/

In Store Advertisements• Awareness is key for Cloud Star's success

o Research shows that brand awareness leads to high brand rating for Cloud Star

o Get the brand name out there

• Recommendationso In-store samples

"Costco Approach" - give those with dogs a free sample in retail locations

o Displays "Stand-up displays attract over 60% more business

than product presented on the shelf"

Print Advertisements

• Special interest magazineso Dog Fancy o Animal Wellnesso Family Dog

• Newer, upscale pet-specific magazineso Barko Modern Dog

http://www.media-brokers.com/Magazine/RateCardCMG/6856/21/Akc-family-dog.aspx

National Magazine Cost

Public Relations• Cloud Star PR

o Philanthropico Healthyo Made in US

• Recommendationso Seek free advertising on non-profit

organization's websites Cloud Star donates to organization; organization returns the

favor via free advertising on its site

o Special Events “Cloud Star 5K-9”

• A 5k for dogs and their owners

• Proceeds benefit local animal shelters

• Creates brand awareness

• Benefits (taken from website)

o Effective Advertising on the most used search engine worldwide and

on our network is an effective way to drive more people to your website and attract more customers.

o Transparent With AdWords you always know what you get for your

money. There are many tools and reports to tell you what is working and how you could further improve your campaign.

o Flexible You can fine-tune virtually all aspects of your campaign at

any time. For example, you can change your budget, ad texts, keywords, geographic targeting, the days and times your ads will appear, and many more settings.

Google AdWords Budgeting• Pay only for results

o With AdWords you're charged only if someone clicks on your ad and lands on your website, not when your ad is displayed. In other words, you only pay when your advertising works.

• Start with any budgeto How much you invest is up to you – there are no

minimum budget requirements and no minimum terms. o For example, you can start with a daily budget of five

dollars and a maximum cost of ten cents for each click on your ad. And, you can change those settings online at any time. Suggested price $1,000.00 = 100,000 clicks

o http://www.youtube.com/watch?v=tx2L6EGa9DY - How to use AdWords

Social Media• Facebook

o The Honest Kitchen has over 150,000 likeso Over the last 6 weeks, The Honest Kitchen gained over 12,000

new FB likes and consistently had 2,500-5,000 people talking about their brand

o Cloud Star gained only about 200 new likes in the same time period

o Cloud Star had 100-300 people talking about their brando Nutro, THK, and Zuke's all had over 1,000 people talking about

their brand through interactions on the page (interactive posts, pictures, shared links via related websites, etc.)

• Twittero Companies like The Honest Kitchen which have over 5000

followers have multiple tweets every day.o Cloud Star Tweets only once a day or every other dayo THK and Nutro ask questions to their followers to keep them

engagedo Cloud Star is following 11 while THK follows nearly 1500 pages.

Social Media YouTube

o Cloud Star's presence on YouTube is very smallo It may not be the best platform to market a dog food

company, but there is still potential thereo (See recommendations on next slides)

Pinteresto Amongst Cloud Star and its competitors, Zuke's is the

only brand with a Pinterest pageo However, the search words "Buddy Biscuits" and "Cloud

Star" show many Pins from different pet-related Boards

Recommendations for FB and Twitter Facebook

o Utilize Facebook to help increase brand awareness by inviting customers to post a photo on their FB page of their dog eating a Buddy Biscuit treat Ex) Every photo posted, Cloud Star will pledge to donate a box of its

treats to an animal shelter

o Free coupon offered for "Liking" page (BOGO, $1 off, etc.)o See Honest Kitchen "Try a free sample" offer

Twittero Tweet at least three times a dayo Ask followers questions. Ex: Tweet pictures of your dog?

What year did Cloud Star begin? Do you have a dog that looks like another species, if so post a pic.

o Follow more pages and tag them in posts. "@"

Recommendations for Youtube and Pinterest• Youtube- create videos people want to

watcho Potential Videos

"How It's Made- Buddy Biscuits" Industry Expert talking about benefits of Cloud Star

products Philanthropic Video- where donations go and who

they benefit

• Pinteresto Create a Pinterest page to gain more brand awareness

Boards with:

• Funny dog pictures• Customers using product• Philanthropic endeavors

Questions?

brand positioning cloud star final report. 1.brand summary 2.market size and trends 3.competitive...

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