Opportunity Analysis For Precious Pets

Opportunity Analysis For Precious Pets In the society today, pets have been becoming an important family member in the families around the word. More and more people tend to treat their pets like a child rather than just a pet. And the pet care and pet food industry becomes popular. There is statistics suggesting that the pets population is ever increasing around the world developed countries. It is shown in the report that the 63% of households own pet in Australia, the pet ownership is 63% in the USA and 53% in the UK. With the increasing population of pet in these countries the pet industry is making a greater contribution to the economy of the countries (Contribution of pet economy to the Australian industry report, 2006a). So the work team is expecting a good prospect for their new project-the Precious Pet private club. The Precious Pet Private Club tends to supply the basic pet care, along with the pet and pet owner interactive sports, the pets restaurant and the pets-in hotel, of course a cafà © where the pet owner can get their stomach filled. The target of our business is to supply the pet and pet owner a common space to interact and enjoy a special holiday together. Content Table Content Table 3 1.0 Introduction 4 2.0 Opportunities in the pet industry 5 2.1 The trend of pets population in the developed countries. 5 2.2 The profit prospect in the pet industry 5 2.3 The pet owners attitude toward the pets 6 3.0 The major competitor analysis 6 4.0 The operation structure of the Precious Pets Private Club 7 4.1 The business model 7 4.2 The human resource for the Club 8 5.0 The SWOT analysis of Precious Pets Private Club 9 5.1 The Strength analysis 9 5.2 The weakness analysis 9 5.3 The opportunity analysis 10 5.4 The threats analysis 10 6.0 Conclusion 10 Reference 11 Further reading 12 1.0 Introduction It is clear through the statistics that the pet care industry is a big and increasing industry. More and more organizations tend to supply service for the pets. The pets-only product is even more expensive than the peoples. So there is a larger profit margin that than the usual product for people. Many food manufacturers engage into the industry and become the leaders, too. For example Nestle and Mars both take not bad market shares in the pet food industry. So it can be estimated that the pet industry is a new industry with a great potential. That is why the Precious Pet Private Club being chosen as the target project. The report will be composed of four parts-the pet industry opportunity analysis, the major competitor analysis and market environment research, the operation structure of Precious Pet Private Club, SWOT analysis of Precious Pet Private Club. The Pet industry analysis will present a clear demonstration of the opportunity in the industry. The analysis will decide if there is a potential for the Precious Pet Private Club to grasp a profit in the industry. If the opportunity to survive is to thin, the project ought to be given up. Then the market environment research will give hint where the major competitors are around the Precious Pets Private Club and leave the Precious Pets Private Club on the defending status. The operation structure decides how the organization will be run and the SWOT analysis will propose a clear understanding of the organization itself. 2.0 Opportunities in the pet industry 2.1 The trend of pets population in the developed countries. It is mentioned in the executive summary that the pets population is ever increasing, and the statistics will prove that. The statistics report pointed out that in the US the number of dogs per 100 people has increased. The number of dogs per 100 people in the US is 25 in 2005 and the number is 22 in 2001. While compared to the dog population increase in the US, the number in the UK and Australia was decreasing slightly since 2002. The situation with the cats population is similar. In the USA about 31 cats are kept in 100 households, and the number of cats per 100 people is only 28. (Contribution of pet economy to the Australian industry report, 2006b) 2.2 The profit prospect in the pet industry Since the Americans are likely to keep more pets, the pet industries contribution to the national economy can not be neglected. It is reported that the contribution of the pet industry to the USA economy is ever growing each year. The American Pet Products Association (APPA) announced that there were estimated 69.1 million pet owning households and they will contribute US$35.9 billion in the pet product expenditure. On the average it equates that every pet owning family will spent US$519 annually on their pets. (Contribution of pet economy to the Australian industry report, 2006c) 2.3 The pet owners attitude toward the pets The pet industry will make a remarkable contribution to the economy; it is still the pets owners contribution. How they spend money on their lovely pets is the way how we could provide service and make money of course. The families today tend to treat their pets like a child rather than a household-kept animal. A new survey in Australia has proved that concept of pet parent rather than a pet owner. The study can indicate that the people are sharing a close emotion bond with their loving pets. Most of them shows a responsible attitude, and they love their pets, would protect them and spent money for them. In this study 85% of pet owners treated their pet part of the family or just like a child and 57% interviewed pet owners take their pet their best friend. 21% of pet owners often/sometimes celebrate their pets birthday and 44% of pet owners give their pet presents for Christmas or other special occasions. Similar studies have been conducted in other countries with similar results, indicating that this is a worldwide trend.(Industry Trends for 2009) The statistics from the pet industry will suggest there are profitable room the industry enterers. The pet care industry has become a general service industry which is accepted by people and more types of services will appear to attract the profit. 3.0 The major competitor analysis The Precious Pet Private Club is a comprehensive pet care club, which consist of the popular pet restaurant and pet hotel. The new concept is the pet-owner interactive sports program. And the pet restaurant and pet hotels are not so new. So there is no doubt they would project a competitive challenge to our business. And the regular pet product retailing place such as the pet food store, and the super market and convenience store could attract the customer who would come to our pet restaurant. Then the pet beauty center is another major competitor. The pet beauty center is a pet service provider, too and will provide some pet products such as food, the pet only shampoo, clothes and so on. The business model contains the product retailing and pet service, similar to the comprehensive service provider, the Precious Pets Private Club. And the beauty service is the major profit source. And for the Precious Pets Private Club target to the upper level pet owner customers. The service provi ded will be packaged and sell to those who would like to build closer emotional bonds with their lovely pets. The business model will be explained in the operation structure part. The market environment research could bring back the information that around the Precious Pets Private Club there are 2 special pet product stores and 1 pet beauty service center. The supermarket or convenience stores are the traditional pet food and pet product retailers, too. 4.0 The operation structure of the Precious Pets Private Club 4.1 The business model The Precious Pets Private Club will consist of four major business categories. The basic pets care such as the pet beauty service will be supplied. The pet owners can get their pets washed and get dressed to match the happy mode of the pet owner and the pets in the short vacation. The pet owner sports programs could let the pet in when ever the pet owner want to do sports in the club. And some pet training could be a choice. Here the owner could train their pets to finish litter tricks and increase the interaction between the pets and the owner. The pet theme restaurants will put the focus on the pets self-service food supply. All kinds of major branded pet foods will be served and the pets can choose the food they like and would not be confined to the usual pet food at home. It is a special experience for the pets. If the pet owner can not tell which brand of pet food their pets prefer, just bring them to the pet self-service restaurant and let them decide. The fourth part is the p et-in hotel. The club tended to supply a good place to spend a day or even a weekend for the pets and their owners. And the pet-in hotel let the owner take their pets to the hotel together. The hotel could supply the bed where the pet and the owner could share or if the pet owner would like the pet to sleep alone, the hotel could also supply a single pet bed, a blanket, a basket or a pet room. The owner could keep their pet in the room they booked. At the very beginning the pet-in club would supply at most 10 rooms, because the room maintenance would be a little expensive. Except for the four major business categories, the club could accommodate some pets exhibition. And the service of the club will be provided to the club member only. To demonstrate the business structure clearly, the figure below could be referred. Precious Pets Private Club Pet-in hotel Pet self-service restaurant Interactive sports program Basic pet care 4.2 The human resource for the Club According to the business model the club needs to resemble the four service model together. Each business category will need a supervisor who is in charge of the product design for this business category, included in the expecting employee number for each sector. 3 pet care worker for the basic pet care center providing the necessary service including wash the pet and dress the pet. 2 workers for the interactive sports program, provide the guidance work to show the customer around the sports programs and fulfill some job schedule connected to other sections. The pet self-service restaurant will employ 4 employees to refill the food supply and tidy the restaurant. 2 employees will be hired for the hotel sector to maintain the hotel rooms and keep the room comfortable for a pet and owner staying together. 5.0 The SWOT analysis of Precious Pets Private Club The SWOT analysis is the process of analyzing organizations and their environments based on their strengths, weaknesses, opportunities and threats. The analysis would include the environmental analysis and the organizational analysis. The environment analysis is the external factors analysis, which is the process of scanning the business environment for threats and opportunities. The organizational analysis is internal factors analysis, which is the process of analyzing a firms strengths and weaknesses (Weihrich, 1982). 5.1 The Strength analysis The comprehensive service model would be fresh for the pet owners. The target is to server the upper level pet owners who have a strong demand for establishing an emotional tie with their pets. So the target would decide all the programs in the club is special for interactive pet and pet owner. All the programs could be finished by the owner here. But all the necessary products are ready to use. The club is small and would supply total membership type consumption. The members could establish good relations and could stay with the club for a longer time. 5.2 The weakness analysis The products are still basic. Though the business categories have been defined and the comprehensive pet service club is new, the products of each category are still not attractive enough. The products need more development and innovation to attract the customer closely so they will come and stay with the club. 5.3 The opportunity analysis The expenditure on pet is increasing according to statistics, which can guaranty a stable pet expenditure market. People obviously to accept the new type of the pet service and the survey indicates a stable customer expense trend. 5.4 The threats analysis The big pet industry market could be affected by the economy downturn. Since 2009, the global financial crisis has shadowed the peoples lives. People tend to cut down expense. So the expenditure on pets will be cut down to an extent. It would influence our market strategy under such an economy environment. Many of our market strategies will gain little effects. 6.0 Conclusion The team selects the comprehensive pet service club and tends to push the service package to the market through the membership of club. The business is new and the target of the products is clear. But as the SWOT analysis has revealed, the product mix is too easy, and can be copied by other business. So the in-depth product development is very necessary. The service model could be innovative, too. All the target of the organization should be focused on a close emotional tie and interactions between the pet and pet owner, which should become the core competitiveness of the Precious Pets Private Club.