Team Yellows’ Marketing Project Matthew M. Hoffmann,Vanny Sok Christina Ley, Sean Burton December 4, 2012 Principles of Marketing BUS 240-50 Professor Dr. J.W. Dottin Table of Contents Executive Summary Page 3 A synopsis of the Marketing Project Entire page Stage I Page 4 Product Conception Describing an innovative product Stage IIA Page 5-6 Domestic Marketing Strategy External Components of the Marketing Environmental Model Stage IIB Page 7-8 International Marketing Strategy External components of the Marketing Environmental Model Stage III Page 9 SWOT Analysis Stage IV Page 10 Research Survey: 20 questions toward target audiences. Stage V Page 11-12 Marketing Strategies (Domestic and International) Stage VI Promotional Brochure Attached Works Cited Page 13 2 Executive Summary We, the Yellow Team, enhance the apparel category in modern pet stores of today. “Glow” is a high performance luminous spray paint. Our product is non-toxic towards the owners and their cat(s) or dog(s). “Glow” is geared towards providing a quicker way to locate the owner’s pet during the after hours, while being environmentally safe. A couple of sprays on the pet’s pelt will illuminate a glow, as a result it will instantly help owners see their favorite four legged friend(s) in the dark. Our focus is towards the people of Morocco who want to protect their pets from the controversy of their culture and religion. Some of them might have cats and few might have dogs. A lot of Moroccan families do not have pets though. It is uncommon to allow pets into Moroccan homes. The problem is they are unclean. If an animal licks you, then you have to clean yourself before you can pray. Many people tend to avoid contact with dogs and cats so they don't have to deal with cleaning every time they are about to pray. That avoidance eventually becomes a norm. In Morocco, there are not many animal hospitals or clinics. Therefore, there is a lack of a market to sell to. To achieve our objectives, “Glow” is seeking a long-term development goal and continue to try strengthening the company’s business strategy of introducing the new product to the marketing mix. Pricing strategy is to be competitive among the competition; to satisfy customers at the right time and in convenient locations to all buyers like local pet stores, grocery stores, pet daycares, and veterinarian clinics or animal hospitals. Our promotion strategy is based on information received from lost cats and dogs statistics to consumers nationwide that point out positive qualities about “Glow”. 3 Stage I Today’s market has a variety of things for cat and dog owners then the previous decades before us. Now there are Geographic Positioning System collars, extendable leashes, seasonal jackets, and electrical barriers. However, materials like electrical barriers can be exorbitant and even hazardous toward your pet. While GPS collars are extremely over priced, customers waste a great deal of space on penny-pinching clothing that piles up each year. Introduced to our customers is a new product that is affordable and is made from the best quality called, Glow. Glow is a luminescent paint that is applied by liquid being driven through the air as tiny drops from a spray can. It is water resistant, non-flammable, acid free, and safe for the environment. The paint glows only at night so that pet owners can quickly identify their cat or dog’s location. Consumers will never have to be apprehensive about the fear of their favorite four legged friend(s) going too far out of sight. Now children can have more joviality then they thought was possible, by changing their cat or dog into several illuminating colors offered from a variety of cans. When it comes to adding another coat or applying a different color, use our dual spray to remove the paint from your pets pelt. For just $6.95 per can, a customer could have a spray can that will illuminate your pet during the after hours of the day. The canisters take as much space as a fragrance bottle and can be stored under the kitchen sink, in the pantry closet, or inside the hallway desk. Easy to apply and quick to remove, it’s time for pet owners to enjoy the good life! 4 Stage IIA Domestic Marketing Strategy focusing the domestic market for your product exploit all the components of the Marketing Environmental Model. 1. Competitive Forces; Based off of a monopolistic competition called, Petco are several brand names that have products similar to our product, “Glow.” There are 25 dog brands, and 2 cat brands sold at Petco with products that share similar purpose products. Those products are; rain jackets, winter coats, reflector vests, electrical fences, and extendable leashes. 2. Economic Forces; The United States is in a declining recession since 2002 into 2012. As of 2011, the country's GDP is at 15.09 trillion, with a disposable income showing at that people have a decrease in buying power. During a recession, the unemployment rate is high and the buying power is low. In conclusion people are looking to get more from their buck. 3. Political Forces; A person who is elected or a leader who designates and controls the country based on certain powers determines the political climate. For instance, most animal welfare and animal rights advocates. 4. Legal and Regulatory Forces; Legal and Regulatory Forces that have a great impact on our product. Lanham Act, Celler-Kefauver (safe), Trademark Counterfeiting Act, Trademark Law Revision Act (safe). This is the list of regulatory agencies that might have jurisdiction over our product found in figure 3.3: Environmental Protection Agency (safe), Consumer Product Safety Commission (warning label). 5. Technological Forces; Advances in technology have provided opportunities to new products, new ways of selling and new ways of influencing the consumers. The self-sustaining nature of technology is a catalyst to spur even faster development. Our product is under the influence of this technology once innovations are introduced. Although, consumers are able to buy our 5 product through the Internet at their own convenient time. 6. Socio-culture Forces; Change in a population’s demographic characteristics has dramatically affect population consumption of our product. Currently 13% of Americans are the age 65 and older. In the next 19 years, the rate will reach to 26% of total U.S. population, which is dramatically changing the composition of the country. According to Pew Research Center of Pew social and Demographic Trends, the most pet owners are between the ages of 13 and 29. However, culture values will change and as the population becomes older their eye sight becomes weaker or their energy becomes strain in chasing after their favorite pet. “Glow” helps the consumer identify the location of their pet quickly when it is a simple as looking for an illuminate glow through the dark. 6 Stage IIB International Marketing Strategy focusing the international market of Morocco for your product exploit all the components of the Marketing Environmental Model. Competitive Forces; Total budget competitors that form as an oligopoly are pet cares, and dog walkers. 1. Economic Forces; Morocco’s has relatively low labor costs to build a diverse, open marketoriented economy. The country’s GDP purchasing power is $163.5 billion as of 2011, compare to $155.9 billion in 2010. Household income or consumption by percentage share is at its lowest 2.7% and highest 33.2% reported in 2007. Morocco is still facing an unstable government with challenges among; corruption, reducing government spending, reforming the educational and judiciary system, addressing socioeconomic disparities, and building more diverse, and developing higher value-added industries. 2. Political Forces; When uprisings began across the Arab world in 2011, King Mohammed VI of Morocco quickly plunged into a process of political reform. When new parliamentary elections were held, the Islamist Party for Justice and Development (PJD) won the seats and become the prime minister, but the King still had the ultimate power. Even among Moroccans who originally hailed the monarch's approach, some changes are taking place in the country. The PJD fights and introduces a higher degree of morality in public life, and reform the cost system of subsidies that eat away at the budget without helping the poor. The system of subsidies currently eats up about 6% of the country’s GDP and 13% of the budget, which translates into benefits for the King and those around him who supply the enlarged market created by subsidies, while state and taxpayers bear the cost. 7 3. Legal and Regulatory Forces; Morocco is an emerging market at the crossroads of Europe, Africa, and the Middle East. It imports $11 billion in products each year. Currently, U.S. products entering Morocco face an average tariff of more than 20%, while Moroccan products are only subject to an average 4% duty in the United States. 4. Technological Forces; Morocco’s government commits to protecting copyrighted works, including phonograms, for extended terms, consistent with U.S. standard and international trends. Internet Service Providers (ISPs) will have limited liability, reflecting the balance struck in the U.S. Digital Millennium Copyright Act between legitimate ISP activity and the infringement of copyrights. 5. Socio-culture Forces; Morocco’s tradition and culture is tied to it’s official religion of Islam. Research has demonstrated two clear variable segments in Morocco’s market mix. Many of the customs, laws, and practices within Islam also widely influence the people and the culture of Morocco today. A Psychological segment in Morocco’s culture believes that cat and dogs are unsanitary. Resulting with most people banning cats and dogs to the out doors. Another, segment is behavioral, because most Moroccans shop for groceries, clothes, and other items, at their local souk vendors than the major chains stores. Because everything that people need can be bought at a reasonable price through vendors than compared to the brightly lit stores. Thus, Morocco has a tight market, and has a major cultural assumption or minor idiosyncrasy that influence our product. 8 Stage III SWOT analysis; Our departments’ strengths are based on customer relationship management, creative innovation and marketing strategy. Strengths: Glow will never smudge or erase away Does not need light to reflect off of it, unlike reflectors. Easy to apply and remove from the pet’s pelt. The paint illuminates in the dark making it quick to identify the location of you pet. Weaknesses: The product only work’s during the night. Opportunities: Dual spray to remove the paint. A winter spray that keeps the pet warm during the fall season. Variety of different colors to spray onto your pet. Threats: • Reflector vests, rain coats, winter jackets, electronic fencings, GPS collars, and extendable leashes. 9 Stage IV Research Survey: Develop 20 - 25 questions for your potential target audience. 1. Male/ Female (chose one) 2. Age (25 or younger, 26-35, 36-45, 46-55, 56 and older) 3. Race (American Indian or Alaska Native, Asian, Black or African American, white, other) 4. Marital States (married, widow, single) 5. Zip Code (fill- in) 6. Income (less than $30,000, 30,000-50,000, 50,000-75,000, 75,000 and more) 7. Educational Level (High school diploma, Associates, Bachelor, Master, or Higher) 8. Do you have children at home? (yes or no) 9. Do you own a Cat or Dog? (yes or no) 10. How many pets do you have? (1,2,3,4,5,6+) 11. Do you walk your pet outside? (yes or no) 12. Is your pet an indoor or out door animal? (yes or no) 13. How many hours does your pet spend outside approximately? (fill-in) 14. Do you buy apparel for your pet? (yes or no) 15. What type of apparel do you buy? (jackets, costumes, flotation vest, other) 16. Between what range in price do you spend on your pet? (1-10, 11-20,21-40,41+) 17. What local pet store do you visit on a regular visit? (Petco, Petsmart, other) 18. Do you Shop online or in the store? (yes or no) 19. Are you open to trying new pet products? (yes or no) 20. Would you like to receive updated messages about our product? (yes or no) 10 Stage V Marketing Strategies (Domestic and International): 1. Target Market Segmentation Both Domestic and International target market strategies are the same. The team plans to implement a concentrated strategy focused only on cat and dog owners. Furthermore, the appropriate segmentation variable for our product would be consumer marketing. That contain factors like consumer attitude, perceptions, lifestyle, geographic, to identify the number of pet owners in each location. 2. Production Strategy Both Domestic and International share the same product strategy. The existing product mix is a width containing (Can Food, Dry Food, Cat Apparel, Dog Apparel), and a length that is extended to 26 products in almost each category. The introduction stage is the products’ first appearance in the market place when sales start at zero and profits are in the red. Then once entered into the growth stage the sales and profit will rise rapidly (if the product is successful). Then when the product hits maturity the sales will decline and profits begins to fall. At this point we can introduce a new product from the opportunities section of the SWOT analysis and present it to the market. The purpose to introducing a another product is to avoid the decline stage when the product’s sales fall rapidly. Brief consumer profile; Innovators are the young adults ages 13-20 represent 2.5%, Early adopters first time cat and dog owners each year which is 13.5%, Early majority are pet owner experienced that makes up of 34%, and Laggards the last minute people that represent 16% of the consumer buying population. 3. Pricing Strategy Pricing is an important variable in positioning. The product pricing strategy is to be competitive among the competition and stabilize the product to avoid price wars and maintain a moderate but 11 also maximize profit, taking into account revenue and costs. Therefore, the product’s listed price without tax is $6.95 per canister. 4. Distribution Strategy Domestic-Truck transportation, public warehousing, and the handling of the product will be unit loading, while selective distribution will be provided to pet stores in a few popular cities. International-Waterways combined with freight forwards and private warehousing. The material handling will be Containerization. The products will be sold as an intensive distribution toward dog walker business, pet daycares, and veterinarians. 5. Promotion Strategy Domestic-The best promotion plan would be using order getters, and conducting a sales contest that is open to reseller as well as the public consumers. Through contest competition attracts more people that will unknowing be promoting our product far better then commercials and advertising could give us. International - The same as domestic in attracting order getters to promote the product, but instead of a contest there will have to be a point-of-purchase materials that display to attract customers in buying our product. 12 Works Cited http://carnegieendowment.org/2012/07/31/morocco-can-third-way-succeed/d3op https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html http://www.expatfocus.com/expatriate-morocco-culture http://www.moroccanamericantrade.com/business.cfm#3 13