Marketing strategy (the dog grooming in pet care industry)
This is the second part of this assessment which is based on your Situation Analysis developed in Part 1. This part of the marketing plan focuses on the marketing mix (product, price, place and promotion).
Your marketing strategy should cover the following areas. You need to provide reasons for each strategy based on your Situation Analysis with marketing literature support. Assessment 3 Part 2 template is available on Moodle.
1. Marketing objectives · A clear statement of what your marketing plan intends to achieve 2. Product strategy · Product concept · Product differentiation · Positioning · Branding · Product life cycle implications 3. Pricing strategy · Pricing objectives (page 260-268) · Pricing methods · Competition considerations · Pricing tactics 4. Promotion strategy · Objectives of promotion · Promotional mix · Promotion schedule – what promotion activities happen at what time and at what cost. 5. Distribution strategy · Channel selection: consumer product distribution channels options/ business-to-business product distribution channels options 6. Implementation and evaluation · Cost and revenue analysis · Provide a schedule of implementing your marketing plan · Evaluation methods and timeline
Required length: 4 – 6 pages (12 point typeface, single spaced). Reference list is not included in the page count.
This is templete.
Marketing objectives (page 536 – 539)
The organisation’s overall objectives and mission statement are included in this section, along
with the marketing objectives that are intended to help achieve the organisation’s overall
objectives. All objectives should be:
Marketing mix strategy
Use marketing literature including the textbook to justify your product strategy, price strategy,
distribution strategy and promotion strategy. Relevant pages/chapters in the textbook are
Product strategy (Chapter 7)
The product component of the strategy needs to be outlined, including an explanation of how the
product offers value to the target market. A discussion of branding should also be included. While
you might not include a total product concept analysis of the product in your marketing plan (see
chapter 7), it may be a useful exercise to inform the product strategy that is outlined in the plan.
You need to address the following aspects:
· Product differentiation (page 235-237)
· Positioning (page 208-211)
· Branding (page 238)
· Product life cycle implications (page 228-234)
Pricing strategy (Chapter 8)
· Detail the pricing objectives (e.g. cash flow, positioning and market share) (page 260-268)
· Outline pricing methods (page 268-271)
· Discuss competition considerations/competitors’ pricing (page 281-285)
· Specify pricing tactics (page 295-297)
You need to address the following aspects:
· Outline the promotion objectives (page 310-311)
· Explain the promotion mix (page 313-317)
o What promotion mix is chosen and why? Choose from advertising, public
relations, sales promotion, personal selling etc. Considerations should also be
given to additional marketing communication options such as sponsorship,
guerrilla marketing, and viral marketing if appropriate for the organization.
· What media are used and why? (TV, billboard, online, social media?)
Distribution (place) (page 357-383)
Detail the distribution strategy that will ensure the organisation’s products are available to
customers where and when they want them. All given scenarios are relevant to retailing. So your discussion needs to address retailing strategy
· Location strategy (page 374)
· Retailing positioning strategy (page 374 – 375)
Provide a schedule of implementing your marketing plan – what activities happen at what time
and at what cost based on research evidence. Estimated cost is acceptable. (An example is
available on page 569 in the textbook)
Outline the marketing metrics (e.g. return on investment, brand equity, customer satisfaction,
etc.) that will be used to evaluate its success. (page 65-67, 549-550)
Offer a brief summary of the report and include recommendations for approval and/or action (e.g.
that the marketing plan be accepted by senior management for implementation, in order to
exploit opportunities for growth.)
Full in-text reference and a reference list are required. You may use APA or Harvard referencing
This is rubic.
(10%) No attempt at providing a statement of marketing objectives.
A rather basic attempt at outlining marketing objectives without using marketing metrics or meeting SMART criteria. 2 points
Provides a clear statement of marketing objectives that reflect marketing metrics and reasonably SMART. 5 points
Marketing objectives are clearly stated and demonstrates a reasonable level of understanding of marketing metrics.
6.5 points Provides a clear and reasonable statement of marketing objectives properly incorporated marketing metrics and meet SMART criteria. 7.5 points
Provides a clear and specific statements of marketing objectives that properly integrated marketing metrics.
8.5 points Provides an outstanding marketing objective statement that meet SMART standard and fully incorporates marketing metrics.
Product strategy (10%)
No product strategy is developed.
Product strategy is not clearly presented. It shows very limited understanding of product concept and research effort.
2 points Product strategy is mentioned but not well developed. It shows limited understanding of the product concept. Product life cycle issues and branding are only covered to a very minimum extent. 5 points Product strategy is clearly described and demonstrates reasonable understanding of product concept, branding and product life cycle.
6.5 points Clearly described the product strategy showing sufficient understanding of product concept. Relevant aspects are addressed to a reasonable extent.
7.5 points Clearly and adequately prepared product strategy that reflects an excellent and thorough understanding of product strategy.
8.5 points Highly detailed and well-thought product strategy based on situation analysis and understanding of product concept. Relevant aspects are addressed explicitly and thoroughly.
Pricing strategy (10%) No pricing strategy is developed.
Pricing strategy is unclear and/or without research evidence or justification.
2 points Pricing strategy is mentioned but shows rather basic understanding of pricing considerations based on limited research evidence.
5 points Pricing strategy is clearly stated with solid literature support, and addressed most aspects of pricing considerations.
6.5 points Provides a solid pricing strategy based on sufficient research evidence and reasonable understanding of pricing considerations.
7.5 points Provides a solid pricing strategy based on sufficient and solid literature support and excellent understanding of pricing considerations. 8.5 points Highly informed and well-justified pricing strategy based on extensive evidence, and a thorough understanding of pricing considerations.
This is part 1 that already had before.
This report is submitted to Gina who intend to open a dog grooming business, in order to assist her with developing a marketing plan. Therefore, in this report, it will represent information about pet care industry as well as analysis the uncontrollable environment including PESTEL and information of competitors including what is the competitive advantage of her business. After understanding competition, by figuring out the trends of customer and customer behaviours, it is easy to determine the target market that is important for successful business and to get competitive advantages. In addition, it is needed to analyse SWOT for knowing well-rounded business situation.
Pet care industry was not big segment of the total pet industry including pet food, veterinary services; however, especially, pet care industry account for big size in the ACT and for a high percent of caring dogs. For example, consumer spent 4.7 billion dollars on the dog; it is 58 percent of total and consumer expenditure on dogs are higher than other states with 1,177.9 million dollars. The industry spends 8 billion dollars to domestic production per year and more than 40,000 people are employed in the industry. It has a reason why the pet care industry has been growing with success factors because people interest and spend more on pet care like grooming although owning pets declined. Furthermore, in Australia, dog population has constantly decreased at 4.2 million, 19 dogs for every 100 people and consumer expenditure on dog care is 4.7 billion dollars in 2013.
Trends in the industry
As most pet owners prefer to consume on dog care, consumption of dog care products and accessories including pet medicines, collars, leads, bowls, toys, litter, pet food and travel carriers also increased at 8 million dollars. Moreover, online shopping is expanding in Australia because businesses have benefited from improved technology such as the internet and infrastructure. By changing the trend, the major distribution channels in the pet industry that were ‘bricks and mortar’ retailers including supermarkets and pet shops are changing; that is, online sales and distribution of pet products and services is growing, which achieve a rate of 17.9 percent in the five years to 2014(Rachel, 2014).
Factors of uncontrollable environment
There are many environment forces which influence on industry, including political, economic, socio-cultural, technological, environment and legal external forces. It is going to talk about these forces which affect to pet care industry and marketing decision.
• Political forces
Political forces are literally the industry is affected by political forces; that is, the influence of politics on business. According to Australian government, for keeping a dog, owners must set up the registration if dogs are over eight weeks old, they have been kept in the ACT for 28 or more and the dog’s keeper has been a resident of the ACT for 28 days or more(Domestic Animals Act 2000). by this policy, many people avoid keeping a dog; so, it influences on pet care industry badly.
• Economic forces
Economic forces refer to all of those factors that affect how much money people and organizations can spend and how they choose to spend it (Elliott, 2014). Therefore, pet care industry can be influenced by how many people, organizations and countries earn the money and how many people spend money on caring dog. For example, if economies afford of countries and people are much better, the pet care industry’s income and revenue are also increased because if they can afford financially, they will certainly spend money and contribute to their dog’ healthy and caring. In contrast, if they have not much money or not good economically, absolutely, the pet care industry is affected with declining profits. Through these examples, the industry can be easily affected according to whether economic status is good or bad.
• Socio-cultural forces
Socio-cultural forces is a term used to describe the social and cultural factors that affect people’s attitudes, beliefs, behaviours, preferences, customs and lifestyles. They comprehensively and pervasively influence the value people put on different product offerings (Elliott, 2014). For example, in general, old people more take care dogs than young people and they have much time with their dogs; therefore, it is possible to success on pet care business in ACT because old people who live in the ACT are much more than other state. Moreover, the dogs population in ACT is also higher than other state such as WA, QLD and VIC with 1,115 million. As a result, pet care business in the ACT is the best choice and the highest possible to success.
• Technological forces
By developing and changing technology, the impact is working greatly in the industry and it lets industry’s behaviours to change. For example, through online shopping using the internet, many pet owners are available to buy pet care products and services; so it causes for pet care industry’s growing. Changing technology can affect the demand for the firm’s products and services, its production processes, and raw materials.
• Legal forces
In Australia, the state government made a law for pet’s welfare; so, many places such as pet shop and shelter is established, and the government regulates and is responsible for import and international agreements. Through this positive regulation and laws, the pet industry has been growing. However, if there are businesses who manage own pet shop, increasing a lot of other pet shops is not benefit to owning a business because competitors are increasing. Therefore, these legal forces control what pet care business can and cannot legally do for oneself, regardless of whether positive legal or negative legal.
A competitor of Gina’s business is Isabel’s Dog Grooming which is located in Phillip, ACT., and this grooming shop is over 18 years in the industry and has experience over 20 years. This Isabel’s Dog Grooming has competitive advantages unlike a Gina’s business, which is Isabel’s business has a plenty of experience by working 18 years over and it has many customer with having loyalty as well as they offer pet care services such as grooming, washing and drying and sells clothes like jackets for dogs. They also communicate with customer through events, news and testimonials on the website. Through this method, Isabel’s business can continue to run and have competitive advantages over 18 years. So, for having high competitive advantages, it is important to advertise a business and to reduce the price than other grooming shop. Furthermore, if they develop a new promotion such as styling a dog that customer want and prefer to and special grooming like paw treatment, it is easy to attract to a new customers and to have customers with loyalty.
• Mobile business(mobility)
• Loyalty from customers.
• Wide variety of services.
• Quality of products and services.
• A new face on the market. Weaknesses
• A new industry.
• Training is needed.
• Advertising cost.
• A variety of services.
• High demand for dogs.
• Expanded industry.
• Pet care industry is promising to customer. Threats
• Competition services or products.
• Regulation of government.
• Changed demand according to seasons or whether.
• Increased cost of living.
In this report, target market that is chosen is Belconnen in ACT. Older people mostly keep a dog than young people; so, Belconnen that old people live in than other places such as Bruce and city is better to compete other pet shops. 5238 people live in Belconnen, especially, 25 years to 34 years age group has big percent of the total Belconnen population as well as 45 years and over age group has about 22 percent of the population; that is, Belconnen is good places which have the opportunity to have benefit from businesses and old people. Moreover, because dogs which are recognized as family and friend can be good for studying sociality to babies, Belconnen which has 8 percent of the population in 0 to 14 age group is suitable for pet care business.
Trends in consumer/clients behaviours
Nowadays, most pet owners consider their pets to be members or family, and this has a powerful impact on how people look after the animals in their care, as well as on their buying behaviour(Animal Health Alliance,2013). In addition, lifestyles is changing and veterinary medicine or pet care products are improved; so, people want to spend caring products and services on dogs. For example, consumer spend money 778.9 million dollars on dogs care services and consume on dog food, especially, clipping and grooming account for 204 million dollars of total dogs care services. By this trends, it can be known that many consumer spend their money for caring dogs such as dog food and grooming services.
ACT Government Environment and Sustainable Development. (2012). Mobile pet grooming business. Canberra, Australia: Author.
Australian Belconnen of Statistics. (2012). Census Quick Stats: Belconnen (ACT). Retrieved from Australian Belconnen of Statistics: http://stat.abs.gov.au/itt/r.jsp?RegionSummary®ion=801011002&geoconcept=REGION&dataset=ABS_NRP9_ASGS&datasetLGA=ABS_NRP9_LGA&datasetASGS=ABS_NRP9_ASGS®ionLGA=REGION®ionASGS=REGION
Australia Government ComLaw (2011). Domestic Animals Act 2000. Canberra, Australia: Author.
Contribution of the pet care industry to the Australian economy: 7th Edition. (2010). Australia: Australia Companion Animal Council.
Elliott, G., Rundle-Thiele, S., & Waller, D. (2014). Marketing (3rd ed.). Australia: Wiley
Mules, R. (2014). The Pet Industry And ‘Petrepreneurship’. BusiDate, 22(1), 5-7.
Yellow Pages. (2014). Isabel’s Dog Grooming. Retrieved from Yellow Pages: https://www.yellowpages.com.au/act/phillip/isabels-dog-grooming-14111633-listing.html?referredBy=www.yellowpages.com.au&context=businessNameSearch