petco final presentation
DESCRIPTION
Washington State University - Advertising Campaigns course(ADVER480) Spring 2011TRANSCRIPT
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Account Executive
Kristiana Wright Media Alli Price
Christy KoontzMadeline Gregory
Creative Blair
BreitensteinErika Rattray
Kelsey Pearman
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Executive Summary
What is it?
Who is PETCO’s current customer?
Who is the proposed target audience?
How do we plan to reach them?
What’s the Big Idea?
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The Market
Pet Food
$17.7 billion in sales (2010 projected) Pet Supplies
10.4 billion in sales (2010 projected)
2006 2007 2008
PetSmart 11% 11.2% 11.4%
PETCO 5.7% 5.8% 6%
Other 88.3% 83.0% 82.6%
Market Share
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Competitive Position
Top competitors and distributors: Walmart, PetSmart, and PETCO
PETCO
High receipt total
Pets Welcome
Expertise
Specialty services
Walmart
Worlds largest retailer chain
4,000 facilities
Brand names at low prices
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The Consumer
Affluent
Children in household
Over 63% own a dog or cat
Companionship and security
Wellbeing and stress reduction
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Dealers, Distributors, Brokers
Top Retailers
WalmartPetSmartPETCO
SupermarketsTarget
Costo (other mass merchandisers)
$8.5 billion
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Advertising History
Advertising
Emotional appeal as industry wide trend
Pets are part of the family Expenditure
PetSmart - $58 million
PETCO - $12 million
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SWOT
Strengths
• Pet friendly stores• Expertise
•Variety of products •Services
• Affluent consumerbase
Weaknesses
• Steep prices• Lacks brand
identity
Threats
• Supermarket One-stop shop• Decline in children in household
Opportunities
• Pet ownership• Hispanic population
• Willingness to pay for
organic and natural • Growth despite
economy
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Campaign Objectives
• Launch campaign June 6th, 2011• Target men and women ( ages 25-34)• Emphasis on first time pet owners•Drive consumers to PETCO for purchase of pet food and supplies over mass retailers
• Position as a company completely unique to it’s category- expertise and trust for a lifetime. • Generate consumer interest and trust around PETCO• Maintain a budget of $9.6 million
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Target Audience
Adults 25-34
Caucasian
Married
$40,000+ income
Bachelors degree or higher
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Age Horiz% Vert% Index22-24 2.19 41.2 7725-29 8.49 61.5 11530-34 10.9 55 10335-39 9.68 61.2 11440-44 10.3 59.2 11045-49 10.9 64.6 12050-54 12.4 61.4 11555-59 9.64 56.7 10660-64 7.97 52.7 9865-69 4.91 44.3 8370-74 3.69 36.2 67
Race Total <000>
<000> Horiz % Vert % Index
White 61,360 52,618 85.8 59 110Black or African America
n
61,360 3,965 6.46 29.2 54
Asian 61,360 1,111 1.81 27.8 52Some Other
61,360 3,666 5.97 50.7 95
Not White or
Black
61,360 4,776 7.78 42.6 79
Marital
Status
Total <000>
<000> Horiz% Vert% Index
Presently
Married
55,378 34,051 55.5 61.5 115
Widowed 11,676 4,374 7.13 37.5 70Divorced 17,300 8,827 14.4 50.9 95Seperate
d3,388 1,676 2.73 49.5 92
Never Married
26,635 12,432 20.3 46.7 87
Not Married
59,029 27,309 44.5 46.3 86
HH Income
Total <000>
<000> Horiz % Vert % Index
20,000-24,999
6,282 3,222 5.25 51.3 96
25,000-29,999
6,561 2,899 4.72 44.2 82
30,000-34,999
5,647 2,357 3.84 41.7 78
35,000-39,999
5,950 2,793 4.55 46.9 88
40,000-44,999
5,509 3,053 4.98 55.4 103
45,000-49,999
4,723 2,484 4.05 52.6 98
50,000-59,999
9,229 4,912 8.01 53.2 99
60,000-74,999
11,166 6,533 10.6 58.5 109
75,000-99,999
13,832 8,351 13.6 60.4 113
150,000-249,999
7,751 5,081 8.28 65.6 122
250,000-499,999
2,551 1,625 2.65 63.7 119
Income of $40k +
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Pet Loving Cities
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Why These Cities?
Fun for dogs and owners
Excellent veterinary care
Active Human Society
Embrace pets
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Primary Research Qualtrics Survey
137 respondents
Attitudes towards pet food, supply retailers and media habits
Most Frequent Place of Purchase for Pet Supplies
Costco 25.8%Walmart 16.1%Target 6.5%Supermarket 6.5%PetSmart 25.8%PETCO 19.4%
CostcoWalmart
TargetSupermarket
PetSmartPETCO
Most Frequent Place of Purchase for Pet Food
Costco 23.5%Walmart 17.6%Target 5.9%Supermarket 14.7%PetSmart 11.8%PETCO 11.8%Other 14.7%
CostcoWalmart
TargetSupermarketPetSmartPETCO
Other
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Most Influential Factor When Shopping for Pet Food and Supplies
Longevity 5.9%Taste 2.9%Price 44.1%Quality 47.1%
PriceQuality
Longevity
“I want coupons and discounts tailored toward my purchase preferences.”
Peer recommendations outweigh advertising
Price and quality as most influential factor
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Media Objectives
• Leverage media and sales promotions to target adults 25-34
• Reach niche markets
• Utilize cable television, internet, radio, and outdoor to reach audience
• Reach breeders, veterinarians and other influencers
• Distinguish from Walmart
• Stay within a budget of $4 million
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Television
Cable Television
60 spots with call to action
High rating with lowest cost per point
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Total <000>
<000> Vert % Horiz %
Index
Quintile I 21,003 2,465 23 11.1 116Quintile II 22,118 3,874 19.5 17.5 99
Quintile III
20,675 3,388 17.1 16.4 92
Quintile IV
21,082 3,713 18.7 17.6 99
Quintile V 27,039 5,235 26.4 19.4 109
Cable Television
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Radio
Spot Radio in target cities
Adults ages 25-54
Radio by Format Total<000>
Horiz% Vert % Index
Alternative 21,410 20.8 17.3 115
Contemporary 17,199 23.2 19.4 129Country or Western 17,099 20.8 17.2 115
Hot Adult Contemporary
16,947 25.8 18.1 113
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Total <000>
<000> Vert % Horiz % Index
Quintile I 20,411 2,276 21.2 11.2 116Quintile II 21,360 2,638 24.6 12.3 129Quintile III 20,045 2,198 20.5 11 114Quintile IV 19,932 2,312 21.6 11.6 121Quintile V 26,290 1,755 16.4 6.68 70
Radio
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Trade Publications
Veterinary Medicine – Circulation: 54, 836
PetAge – Circulation: 26,119AKC Gazette – Circulation: 37,000
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RadioOutdoor
8 week flight
Target Cities
Outdoor Total <000>
<000> Vert % Horiz % Index
Quintile I 21,405 2,331 21.7 10.9 114Quintile II 22,016 2,176 20.3 9.8 103Quintile III 22,237 2,308 21.5 10.4 108Quintile IV 22,883 1,919 17.9 8.38 88Quintile V 23,378 1,988 18.5 8.5 89
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Big Idea
“First Time Moments”
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Creative Objectives
One-stop shop
Knowledge and emotions
Brand awareness
Single comprehensive message
Budget $1.4 million
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Website
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Facebook Ad
Social networking expert
500 million active users
$1,000/day
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Google Ad Words
Most used search engine – 49.2%
Keyword optimization
$3,000/day
Keywords: DogCat
Pet foodPet supplies
Pet care
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Mobile Application
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Promotions
Events: Pet Expos, Parades, etc.
• Photo Booth • Gift bags
• Obedience trainer present
PETCO PALS
• Rewards program • First time users - $10 off coupon when signing up
• Current users - $20 off coupon at point of purchase
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“Give Them a First Time”
PETCO partners with the Humane Society of U.S.
•3,500 animal shelters across U.S. •$1.00 donation for every animal adopted•Estimated 185 pets adopted per shelter
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Paw Print Promo
•Two weekend event •Paw print tiles
•Symbol of partnership in pets growth •Christmas ornament
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Budget
Promotions 26%
$4.3million
Production 15%
$1.3million Media 40%$3.8 million
Reserve 2%$89,209.50 million
MediaPromotionsProduction Reserve
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THANK YOU!