Consumer Behavior

Project
Pets hotel
“Pet’s Villa”

Submitted by:
Salwa Alshareef
Hanan Hamdy
Amr Ahmed
Moahmed Hassan
  Mission statement:

Pets Villa is your pet’s second home and the place you can trust in treating your
pets to a pleasant and safe stay full of love and care while you are away. With
few simple clicks, customize the best experience you can offer your pet during
their stay at our Villa, matching high standards of cleanliness and quality.

Cooperate Objectives:

 Profits:

- Reach occupancy percentage of 60% in 3 months

 Maintaining or increase market share:

- Achieve revenue growth of 17% per year for the next five years to sustain
business.

- Increase brand awareness among pet’s lovers from 0% to 70 % by two years from
now.

 Market positioning:
- Become the number one brand in our market in year 4

 Growth and meeting customers’ need:

- Expand to cover at least 4 main stream areas in Cairo by 3 years.
- Launch our e-commerce shop as extended service by the end of first year.
 Profits
o Reach occupancy percentage of 60% in 1st year.
o 15 % Yearly increase in occupancies.
 Growth
o Achieve revenue growth of 17% per year for the next five years to sustain
business.
o Increase brand awareness among pet’s lovers from 0% to 70 % by two
years from now.
 Sustainability:
o Become the number one brand in our market in year 4
o Expand to cover at least 4 main stream areas in Cairo by 3 years.
o Launch our e-commerce shop as extended service by the end of first
 year.


Ansoff Grid:

Product Development:

Since we are entring an existing market and providing a

developed concept of pet’s accomedation service by
introducing customers to our first online booking website
and app. We will be using product development startegies to
enahnce the value and differenciate our service over our
competitors.

Identify opportunities:

We distributed a quantitative primary survey on Facebook through our profile and

groups of pet’s lovers and animal care. We faced some problems in convincing people
that we aren’t going to use their emails to spam them, but it worked out the end.

Research objective:

- Check readiness of customers to use the service

- Check customer’s preferences, frequency and seasonality of their trips.
 - Check the age groups we have of pet’s owners to be able to determine the target
age group
- Check market to know what are the available competitors that customers are
aware of and the max price they are willing to pay.
- Check if majority are dogs or cats’ owners to take that into consideration while
preparing our Villa.
- Check behaviors of customers to know which service would attract them more
while placing their booking and customizing service.

Opportunities found based on research:

Age groups:
- Most of the age group at this survey was from 25 to 34 with 54.72% which makes a good
opportunity to target them.
Number of pets:
- Most people who took the survey had only 1 pet their percentage was 58.54%
Type of Pets:
- The majority were raising cats with 38.6% which would make a good opportunity to
accommodate more space and playing tools for cats. Then comes dog owners: 36.84%

Travel Frequency:
- Most people were just traveling twice a year 44.23%
- Frequent travelers were 32.69%
- Comes at last people who travel once a year 23.8%
This means that we have a good opportunity to target frequent travelers.

Travel seasons:
- Most of participants mentioned that they like to travel at summer 46.75%
- Then comes travelers during holidays 29.87%
- Winter travelers were like 23.38 %
We have more opportu

Where do you leave your pet?

Most people mentioned that they leave their pets at friends in their circle 41.18%
Then comes people who leave them at home 37.25%
Participants who take their pets with them are 11.26%
Participants using stay in service where 3.92%
87% of participants showed interest to use a booking service for their pets while 13%
weren’t interested.

How much does it cost to leave your pet at the places above?

43% mentioned that they pay nothing for that

13% mentioned that they pay less than 100 LE
21.6% mentioned that they pay from 100 LE to 500 LE
21.6% mentioned that they pay 500+ LE

This fact showed us that there would be a good opportunity that there is a chance that
the customized service will give a chance for customers to set the rate they desire
according to each element added to the experience bundle.
When choosing a place for your pet, what are you looking for?
62.16% mentioned that they put safety as high priority
45.94% mentioned that care more about the care, food and comfort their pets can get
24.32% mentioned that they put cleanness above all.

This enabled us to understand the main attributes that we can associate our service and
brand with.

Location preference:

When asked about the preferred physical location of the new booking service majority
40% chose Maadi and New Cairo 28.89%
So this guided us to start in Maadi to be able to cover need in both areas before
expanding.

If you have the ability to customize any of these things, what would it be?

43.24% chose to customize food

48.64% chose to customize medical care for their pets
24.32% chose to customize sleeping areas
13.51% chose to customize grooming services
This means that we have a good opportunity to have a competitive edge if we focused
on providing variety of food, medical care, and cool well-furnished sleeping areas.

Would you choose basic or a customized experience for your pet?

54.05% chose to select basic service for their pet

21.6% chose to select customized service
How much would you be willing to pay for this service?

27% are willing to pay from 50 to 500 LE

16% are willing to pay more than 500+
45% didn’t declare a number

These facts indicate that we have customers who are welling to pay for such a
differentiated service.
How would you like to make your booking?

Most participants chose mobile app to place their booking 57.14%

Then comes website 24.49%
People were least interest in cash points 18.37%

The 5 Cs:

Company:
Organizational structure:

We will adopt organic decentralized organizational structure with strong focus on

communication and collaboration improving employee experience, challenging the status quo
around traditional management models.

Resources and capabilities:

Tangible resources:

1- Rented villa in Maadi to be used as hotel.

2- We will establish a small veteran clinic at the villa in order to provide pets with needed health
care.

3- The villa will be fully equipped with all needed pet’s care equipment like toys, food, litter
boxes etc.

4- Headquarter will be fully equipped with all office equipment like desks, printers, computers
etc.

Intangible resources:

1- Our online website that will be used for bookings and later on as e-commerce
2- Agreements and patents with pets food suppliers

Capabilities:

Staff: Our employees will go through intensive trainings of the specific operational duties as well
as some first aids trainings to be able to handle any situation that pets can have.

Organizational culture:

Our culture would be delivering an awesome experience to pets and their owners through our
shared values that stresses on treating them in a positive and caring attitude.

The organization is customer centric were customer is always right and feedback received from
pets owners will be prioritized if valid.

The team leaders will be empowered to take direct decisions in order to facilitate solving
problems and handling hard situations.

Customer:

Pets Villa is a customer centric organization that target pets owners of A , B+ and B customers.
Our company will Maintain a good CRM system by collection continuous feedback from our
customers through our help desk at the villa and from the website to update our services to
meet their expectations.

Competitive analysis:

Direct competition:
- There are few private owned places that offers a stay-in service for pets, but they aren’t well-
known, and you must search carefully to find a good one.
- Vets sometimes offer stay-in service for pets but many of them are costly and pets are treated
in a bad manner and kept in cages.

Our main competitors:

1. International Vet Hospital & Pet Motel

2. Paws n Claws
3. East Wind Kennels

Indirect competition:

-Pets friendly hotels that allow owners of having their pets with them

- Some owners get back to their circles to look for a trustworthy friend who could take care of
their pets.

Threats of new entrants:

The entry barrier to this market is low as this kind of service isn’t highly spread yet in Egypt.

Rivalry among existing firms:

The competition is moderate as the places we compete with are offering different methods to
differentiate their service, so we have an edge over them so far until they decide to imitate.

Collaborations:

1- We will collaborate with a Vet clinic to have their branch at our Villa in order to maintain the
medical care we provide at our Villa.

2- Set collaborations with suppliers who sell food and pets tools to place their products on our
e-commerce and at our villa.

3- At a later stage we will make some collaborations with animal NGOs to join their medical
campaigns and rescuing as a part of our social responsibility program.
PESTEL “Climate” :

Political-legal environment:

-New regulations on imported products might affect our ability to get some brands of pets food.

Economic environment:

Unstable economic situation might lead to:

- Increasing VAT rates and inflation rate which would affect us as our customers would be price
sensitive.
-Increasing taxes on imported products that we might need

Sociocultural environment:

We might face a challenge to introduce the concept of pets hotel in Egypt as there are some
people in the society who are against raising pets at home and some might preserve this kind of
service as a luxurious service that they can’t afford.

Our aim would be to come over this by positioning our place as a second home for pets that any
pet owner can afford and trust.

Technological environment:

- Egypt has a good infrastructure that facilitate transporting supplying materials to our villa.
- We have good internet connection and networks have been upgraded to 4G which facilitate
communication with our customers online.
- Most of our targeted customers are familiar with using online booking services and it makes a
good opportunity to upgrade our website to have it as a mobile app later on.

Demographic environment:

- January 2018 population in Egypt is 96,664,885. This is an increase of 2.18 % (2,062,826

people) compared to population of 94,538,320 the year before

- 32% percentage of population under 15

- 62% percentage of population between 15 and 64 years old

- 4.5% percentage of population 65+

- 90% Muslims – 10% Christians

- The total dependency ratio of population in Egypt is 59.2 %

-75.34% of adult population are able to read and write

-Social media penetration rate in Egypt 37% with 28K users reported Jan 2017
SWOT:

Strengths:

- Pioneers in providing the first online booking platform for pets in Egypt

- Mobile APP for reservation and other services.

- Highly equipped facility that would enhance the quality of service

- Premium and normal packages that suits a wide segment of pet’s lovers

- Trained staff to take care of pets

- Location in Maadi as a very quiet place, full of Pet’s lovers and best fresh air location in Cairo.

- One of the founders is a facility manager who would set the right procedures to keep our hotel
as a safe facility and establish regulations for it.

- One of the founders is a marketing officer with good connections at several industries who
would work on marketing activities to establish our brand awareness.

- One of the founders is an employee at the National Bank of Egypt who would help us in getting
needed loans and will be responsible of getting investors for the project.

- Our business would open vacancies for vets who aren’t able to open their own clinic to work at
our company.

Weaknesses:

- We are still start up with no brand awareness

- Customers might be price sensitive

- It will take time to build trust with our customers who are keen on their pets.

- Lake of knowledge and experienced resources in Egypt related to the Pet’s hospitality.

- Huge marketing activates needed to build brand awareness.

- Great training effort needed for the supportive services (cleaning & nursery) to change the
Egyptian culture towards Pet’s.

Opportunites:

- fill the gap in the market by providing the first pets hotel with an online booking experience.
- Offer pets’ owners the chance to choose the experience they want for their pets.
- Expanding to offer this service through an app and establish branches in different locations in
Egypt.

- Pet’s owners are increasing and become a trend in the new generation (over 1 million)(
http://www.fci.be/en/statistics/ByNco.aspx?iso=EG).

- Our target customer’s life style create a more demand on such a service.

Threats:

- The unstable economic situation and the raise of Vat and inflation rates might affect our prices
and our ability to get the needed materials.
- Competitors might take a chance and copy our module of services.

- Pet’s equipment’s in Egypt treated as luxury products and subject to huge customs.

- Pet’s are very sensitive to weather factors so high care is required to prevent any issues in their
lives.