Krupali Patel

Paws Fur Beauty & Petcetera

FEASIBILITY STUDY

Environment and Industry Evaluation

Economic Trends - Good news! The pet industry continues to be one of the few industries successfully navigating our current economic recession, while many industries are struggling to survive. Many pet industry and retailer analysts predictions for 2011 continue to point to an increase in overall sales of US pet products and services.Even during the darkest days of the recession, spending on accessories and OTC medicine grew at 2%, showing that pet parents will cut back on their own expenses before those of their pets. The APPA (American Pet Products Association) projects growth levels back to pre-recession levels of 5.8%. Whether we see a rebound to this level remains to be seen, but theres no doubt it will pick up again in 2011. WalMart has rolled out pet grooming facilities but not with the characteristic aggression you might have expected. Pet travel services, such as temporary day care for pets, are definitely a niche with plenty of room to grow. Who better to pioneer the idea than Disney, which has finally caught on to the trend of vacationers travelling with their pets, opening the Best Friends Pet Care luxury dog and cat resort right across from the Walt Disney World Resort. While the total numbers may vary, there is no doubt that the pet industry overall is a growing industry. We are already seeing 2011 as showing great signs for continued imperviousness to the down economy. My expectation is that this trend will continue as pets grow more solidly and widely in their position as cherished family members, and aging baby boomers look to pets to fill a void left by empty
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nests.Paws Fur Beauty & Petcetera would without a doubt do well under these circumstances. Technological/Social Trends - High-tech products including computerized identification tags, digital aquarium kits, automatic doors and feeders, enhanced reptile terrarium lighting systems and touch-activated toys help pet-owners take care of companion animals with ease and precision. Products designed with convenience in mind lead this trend. Programmable feeding and drinking systems, automatic and battery-operated toys, self-cleaning litter boxes and self-warming pet mats let pets virtually care for themselves! There is no doubt that social networking, blogging, and other forms of online communication will continue to play a major role in many pet loving families lives this year, as they look to share their beloved pets with the world, seek out respected and recommended information, network with like-minded pet owners, and keep informed of pet related news, information, products and services. From Dogster/Catster to Facebook, Twitter, blogs and online groups and forums, pet loving parents of dogs, cats, hamsters, horses, ferrets and other pets are online, interacting with other pet lovers at an unbelievable increasing rate. With the availability of social networking at their fingertips 24 hours a day, through various devices, this trend will continue to grow and expand. Also with that availability, comes passionate pet lovers talking about what they like and dont like in the way of products and services pet businesses provide. These readily available resources will help make changes to our business in an effort to keep it current and to help provide the services our customers are seeking.

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Paws Fur Beauty & Petcetera

Political Trends Introduced on May 13, 2010 were amendments to legislations that now allowed soliciting, accepting, and processingof dog registrations and tags for any dog or cat within the jurisdiction of a municipality, but only if the kennel, pet shop, shelter, pound, veterinarian, or pet grooming establishment has received approval in writing from the municipality to do so. This can inevitably help thrive our business and enable us to offer more services than the conventional pet groomer in the vicinity. The bordering towns we intend to provide service in would require us to register within their towns as well. Demographics According to the American Pet Products Manufacturers Association (APPMA) National Pet Owners Survey: There are over 68 million dogs in the United States. Four in ten (or 40 million) U.S. households own at least one dog. A pet owner has at least one dog (63%) and more than one-third (37%) have more than one dog.
y

y y y

There are over 77 million baby boomers reaching their golden years in the near future. A vast majority of these individuals with large amounts of discretionary income have pet and are a part of our target market.

Paws Fur Beauty & Petcetera will be located in the township of Lyndhurst of Bergen County, NJ. Lyndhurst already has a large number of people that come into town because of its famous Lyndhurst Animal Hospital and the neighboring East Rutherford Animal Shelter. The largest age group in this area range between the ages of 35-69. This segmented demographic allows my business to have a broader range and market parts of the services we provide to specifically targeted groups within this age group. The diversity allows us to diversify our products and services to better satisfy our
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Paws Fur Beauty & Petcetera

customers needs. There is also a severe decline in marriage rates. Sounds a bit sad and almost lonesome however this means more and more people will be inclined to share that love and compassion with their pets and this means success for us. Target Market and Create Value - Our target customers are pet owners, not restricted to only one pet per household. They are working professionals that need reliable, trusting and convenient pet care and grooming available to them to keep up with the demands of their hectic schedules. There is a need for one-stop convenience for all consumers. Offering the option of mobile services (we bring our service to you to avoid discomfort to you or your beloved set of paws) will offer convenience and loyalty. Pet owners will see how we are about offering convenience to them and so upon calling us they will have a broad range of menu items (as if ordering take-out) and will select a personal package of pamper treatment they would like to gift their pet. It is about the creating the ultimate experience not only for the pet but for the pet owner. In an effort to create value while providing the aforementioned, we will not be successful waiting for the customer to come to us. Instead, we must focus on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. Therefore, our focus and marketing message will be the services offered. We will develop our message, communicate it, and fulfill our commitment to excellence.

MARKETING STRATEGY

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Paws Fur Beauty & Petcetera

Strategy Overview
1. Potential Customers: A typical pet owner is going to want to it to be about the experience. Prices and hours would be a concern as well. They would also want to know how up-to-date our equipment is and how safe it is. Like any good parent, every pet owner is going to seek for the personal touch we have with the animals checking to see if we treat the animals as if they were our own. Little things such as petting, reassuring and even treats would be a part of creating that experience and adding the personal touch. According to a recent study, pet owners prefer to pay more at a local smaller shop than going to a bigger chain simply because people are a millions times more friendly. They say it feels like they get more of a personal experience and even get to know each other on a first name basis and this is what pet owners are really paying for. Paws Fur Beauty & Petcetera understands these needs and is based on providing just that experience.

2. Goals and objectives: It is the Mission of Paws Fur Beauty & Petcetera to become the recognized standard of excellence in our field by consistently exceeding our customers expectations, through our focus in the following three areas: y Deliver a superior quality grooming service to our customers by ensuring our equipment is state-of-the-art and personnel are professionally trained and capable of meeting the highest standards. y Deliver the highest level of humane care to each pet entrusted to our care by ensuring that we use only the safest products and grooming techniques.

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Paws Fur Beauty & Petcetera

Conduct all of our business relationships in an honorable and fair manner, adhering to the highest ethical and moral standards in our industry.

We have a vision to innovate the mobile pet grooming industry in a way that allows all pet grooming to be a painless and positive experience. Our marketing objectivefor the first year of operations is to become a landmark in the Bergen County community, known not only for our four pillars of quality, integrity, friendliness, and professionalism, but also for community and charity involvement. Paws Fur Beauty & Petcetera is dedicated to operating with a constant enthusiasm for learning about pet nurturing, being receptive to implementing new ideas, and maintaining a willingness to adapt to changing client needs and wants. 3.Products/services: Full-service pet grooming by experienced and caring professionals at your home or office for your convenience. 8 different types of shampoos and conditioners for the specific need of your pet. y y Caring and prompt customer service. The most up-to-date equipment and supplies to make your pet's experience a joyful experience. y y y y A scheduled appointment usually within one week of contacting us. Clean grooming environments for your pets. Competitive pricing based on the breed and condition of your pet. Loving hugs and kisses for our furry friends. o Our services include:  Professional mobile pet-grooming services such as shampoo and soothing conditioner  Bathing
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Massage Full-scissor cut (hand scissored) Nail-clipping and nail-polish Gentle tooth-brushing and breath freshener Anal-gland expression Cleaning and/or plucking ear hair if necessary Cleaning and trimming the pads of the paws

Our products are different and better from other products/services on the market because we use environmental and pet friendly products. Yes, we are a Green pet grooming service which other groomers havent fully evolved into.

4. Distinctive competencies: Our location is in a very ideal place. We have the vet hospital and animal shelter within a half mile radius. Most mobile pet groomers dont invest in an office or one primary location other than their vehicle they would be providing service out of. However, we provide many different services. We also understand that there will still be those traditional customers that will want to bring their pets into a location as opposed to having a groomer visit them. For these pet owners and for the sake of our own business to thrive in all aspects we would have the grooming vehicle we would travel in as well as the base location. As mentioned before our products are green and this means we are already starting on a positive note. Our entire staff is trained by a professional dog groomer and has received their certification. This includes management as well.

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Paws Fur Beauty & Petcetera

5. Potential partners and employees:Approximately 10% to 15% of U.S. pet grooming businesses belong to national grooming organizations, or regional grooming associations. We are one of them. All of our employees are mandated to have a portfolio of their finest work to show potential clients the work they have done. These standards will help us to remain a consistently coherent and up-topar family of friendly pet groomers. The personnel plan will be as follows: y y One manager to oversee and fill-in for all areas. Two front desk reception to greet customers, receive payments for services/products, set appointments, answer phones, check-in pets, distribute wash your own supplies and maintain files of clients with data entry. y Four playground supervisors will feed and water pets, keep area clean, walk and exercise, collect pets at check-out time. Two will be on staff full time and two will work part time. Contract Employees: y y One pet groomer. One behavioral trainer.

In the first year, assumptions are that there will be only one receptionist, four playground supervisors, and the manager will serve as part time receptionist and night personal until the business can build. The groomer and trainer will work on contract. In the second year, a second receptionist, two playground supervisors and a groomer will be added to the payroll.

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Paws Fur Beauty & Petcetera

6. Potential competitors: There are several mobile groomers around our area that service the same areas but dont seem to have heavy marketing. They all seem to have the same generic offerings as far as services go and none of them have a commercial location other than their mobile unit. This makes us truly unique to begin with. None of our direct competitors utilize environmental friendly products either.Paws Fur Beauty & Petcetera offers complete and total services at one location; one-stop high-quality pet care for customer convenience.

Strategic Details
7. Product (Positioning): Paws Fur Beauty & Petceterawill differentiate themselves from other animal care facilities. We will establish our business offering as a clear and viable alternative for our target market. 8. Communication (Promotion): We will host an open house with a business card drawing for one free service. We will offer discounts after a specified number of visits for the first six months to establish a client base.

Example:
y y y y y y

10 wash your own = one free day visit gift certificate. 20 visits = $10.00 discount. Three referrals = one free day care visit gift certificate. Monthly business card drawing = one free visit. Create specified packages = one day, one wash for a special discount price. Multiple pets from the same family = family discount rate.
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Paws Fur Beauty & Petcetera

Use promotional items such as frisbees, collars, coffee mugs, etc. with Paws Fur Beauty & Petceteralogo imprinted.

9. Location and Distribution channels (Place): We have both a storefront location and a mobile unit which will help with the distribution of the service we want to provide to our prospective clientele. We offer convenience for the pet owners of today who are just too busy to provide all the treatment to their pets as they desire to. By bringing our services to our clients, we are letting them know that they are our priority. Of course social networks such as Facebook and Twitter also have to be included in our modern marketing mix as we intend to target our savvy technologically savvy pet-owners who love blogging and bragging about their furry pals. 10. Pricing: Paws Fur Beauty & Petcetera will be priced at the upper edge of what the market will bear, competing with similar types of services in the area as means of penetrating the market that is already in place. One has to mark their territory before blooming and we intend to do just that.

Typical costs: y For small breeds or mid-sized breeds that do not have thick hair or require a complicated cut, grooming costs about $30 to $50.
o

Examples include the Bichon Frise, Miniature Poodle, Maltese, Cocker Spaniel and Labrador Retriever.

For mid-sized breeds, or larger breeds that do not have thick hair or

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require a complicated cut, grooming costs about $50 to $70.

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Examples include the Wheaten Terrier, Collie, Afghan Hound, Chow Chow and Golden Retriever.

For mid-to-large-sized breeds that have thick hair and require complicated cuts, or giant breeds, grooming costs about $70 to $90 and up.
o

Examples include the Standard Poodle, Bernese Mountain Dog, Bouvier Des Flandre, Briard, and Great Pyrenees.

Additional costs:
y y

De-matting for long hair costs about $7 to $9. For $3 to $10 extra, groomer will use flea-killing shampoo or skinsoothing colloidal oatmeal shampoo or do a hot oil treatment.

y y

For about $10 extra, groomer will remove skunk odor. For about $10 to 20 extra, a groomer will brush teeth or express the anal glands.

Hand cutting, which is time consuming, costs between $10 and $30 more than using clippers, depending on the size of the dog. It offers a different look.

Mobile grooming service charges a convenience fee -- about $10 to $15 extra.

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Paws Fur Beauty & Petcetera

Risk Analysis:

11. Strengths

y y y

Exclusive service to home Provide convenience to pet owners with mobile concept Offers less stress to both pet and owner to travel from their home. This will especially benefit the pets that require special care.

Dependable: Being a pet owner myself I understand how much pets mean to their owners. Clients always want the peace of mind to know that the service provider is dependable and will arrive on time when scheduled to groom their pet. We would make it our priority to show up early when scheduled to make a great first impression.

Knowledgeable: Staff and management have expertise and the clients would be aware of that.

Low cost, entry level business to start in. Compared to the startup costs of other businesses this business is fairly attainable.

Weaknesses

Not having an established reputation in the mobile pet grooming industry

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Competitors with established brand and clientele may already have large percentage of the market

Low barriers to entry include low startup capital and new competitors with a large network who can easily provide similar services.

Opportunities

Create strategic relationships with friends, vets, pet stores, pet groomers, etc. These strategic relations will help to build a repeating business pattern with returning clientele as well as building new clientele by referral.

Positive cash flow can be expected after the first few mobile pet grooming appointments.

The large number of pet-owning households and increasing demand for dependable pet care in the U.S.

Threats

Growth may be rapid but must be controlled. A possibility of over-booking and lowering quality of service.

Booking too far away from home which can later lead to higher transportation costs.

New competition can cut our profits

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Building client loyalty would be essential

From the SWOT matrix outlined above, it can be concluded that there are many strengths for Paws Fur Beauty & Petcetera to be a successful business. Starting form a unique service which is a new concept for many pet owners as far as our green products go, secondly, mobile grooming is a well equipped with qualified groomers who have been trained on how to handle animals properly. Last but not least, our strength is to provide convenience for both pet and the owner and to eliminate travelling or taking the dog in the car. Weaknesses may inevitably surface which we would have to overcome. However, once the return on investment is positive, the company could consider expanding the product lines to be deliver dog food or tick and flea control/consultation service.Lastly, threats of substitution could surface based on entrance of the new competitors or lack of understanding of the consumers for the value being offered.

12. Porters Five Force Analysis:

Factors Rivalry amongst existing firms Potential entrants

Degree of the Forces Low Medium

Details Use of Green products is new in mobile pet grooming Economy of scale is a key factor. Low startup costs. Mobile dog grooming is fairly accepted now as a service provider. Staff skill and ability is crucial for the business.
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Threat of substitutes

Medium High

Bargaining power of suppliers

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Paws Fur Beauty & Petcetera

Great service is key. Bargaining power of buyers Moderate Customer base is higher than the supplying industry. Switching cost is low for pet owners.

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