Cloud Star Final Report
Brand Positioning
Presentation Overview
1.
2.
3.
4.
5.
6.
Brand Summary
Market Size and Trends
Competitive Review
Cloud Star Marketing Strategy
Market Research Analysis
Media Plan
Executive Summary
Brand Summary:
•
•
•
Cloud Star is a brand sensitive to dog's allergy needs in treats and food.
Performs very well with certain demographics; Cloud Star could either focus marketing on these groups or on ones they reach less.
Premium, all-natural dog treats, especially for pets with allergies.
Market Size & Trends:
•
•
The market is increasing in price and in dollar, however, volume sales is decreasing. This suggests that people aren't buying as the price of
treats increases.
Pricing trends in the category increased by 4% in 2011 and are estimated to increase by 3% in 2012.
Competitive Review:
•
•
•
Direct competitors also focus on all-natural, allergen-sensitive dog food and treats (premium dog food makes up 40% of sales in dog
food).
Competitors (Direct):
o
The Honest Kitchen
o
Zukes
o
Stella & Chewy's
o
Nutro
o
Sojo's
o
Blue Buffalo
Competitors (Indirect):
o
Greenies, Caesar, Pedigree
o
Purina
o
Hill's brand
o
Iams
Executive Summary Continued
Cloud Star Marketing Strategy:
•
•
•
Cloud Star can focus their marketing on ideas such as Made in the USA, all-natural ingredients, and food that is
friendly to pets with allergies, since these are their strengths as a company.
Unique Selling Proposition including;
o Made in the USA
o All-Natural Ingredients
o No Artificial Colors, Flavors, or Preservatives
Primary Business/Marketing Challenge: increase brand awareness.
Market Research Analysis:
Customers want a dog treat that is: Healthy, Nutritious, All Natural Product, Good for Teeth, U.S. Made, and
Premium Quality. The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/
Environmental Groups/ Women and Children.
• Social Media is a new and upcoming market that needs to be acted on.
• Online Ad's reach a small portion of respondents but is an easy market to get in to.
Media Plan:
•
•
•
Awareness is key to Cloud Star's success. Making customers aware of Cloud Star's health benefits for pets, as well as
their generosity towards charity can strengthen brand awareness.
Executed through several avenues, including: in-store sampling events, merchandise displays, advertisements in
magazines, social media activity, and Google Adwords.
Brand Summary
Business Description
Business/category competing in:
• Dog treats (and extend to other pet food/care products).
Mission and business philosophy:
• To produce all-natural and wholesome products for dogs
that are allergy-free, US made, and made from high quality
ingredients
• "For more than a decade, Cloud Star has been producing all
natural and wholesome products for dogs, even those with
allergies." -Cloud Star
http://www.cloudstar.com/content/about-us.asp
Business Description
The product is:
Buddy Biscuits
•
Why Buddy Biscuits?
Safe option for dogs with allergies
All-natural option for consumers looking for healthy choice for
dogs
US made for those supporting production within the country
Company uses sales profits to give back to community.
•
•
•
•
Business Description
Current product positioning:
Premium, all-natural dog treats, especially for pets with
allergies.
•
Product's competitive advantage:
All-natural
US made
Allergy free
Family owned
Charitable
•
•
•
•
•
Market Size and Trends
Market Size and Trends
Top competitors in “the healthy segment”:
• The Honest Kitchen
• Zuke's
• Stella and Chewy's
• Nutro
• Sojo's
• Blue Buffalo
Size of Dog Treat Market (Sales)
• $2,378 million (2012, Euromonitor)
Market Size and Trends
Trends in the market:
• Growing in Dollar at 0.6% (2011-2012)
• Declining in Volume at (0.8%) (2011-2012)
(Euromonitor)
Note: Actual sales are increasing while volume declines,
suggesting that dog treats are becoming more expensive,
but less are being sold as price increases.
Market Size and Trends
Target consumer by demographics and product usage:
• Female (72%)
• Between 45-54 years old (24.9%)
• White (86.6%)
• Works in Professional Industry (16.9%)
• Household Income between $75,000-$149,999 (34%)
• Lives in Southern Region of the US (39.2%)
• Currently Married (60.9%)
• Census Region: South (107/100 Index)
http://urereporter.mriplusonline.com/selectdemo.asp
Pricing Trends
Increased by 4% in 2011
• Estimated 3% increase in 2012
• Driven by strong growth of premium segment
•
Cloud Star SWOT Analysis
Strengths
 Reaches consumers with special health needs for their pets (i.e. dogs with
allergies to regular dog food).
 Cloud Star integrates charity with its sales, so customers are actively aware
of the brand's generosity towards animal welfare.
Weaknesses
 Low activity and presence on social networks.
 Small share of overall dog treat market.
 While a higher recognition for dog treat "Buddy Biscuits," there is lower
recognition for brand name "Cloud Star."
Cloud Star SWOT Analysis
Opportunities
Grow presence with customers on social networks.
 Target consumers through marketing who are current buyers, as well as
target consumers who are not necessarily buyers yet.
 Showcase their all-natural, organic products compared to their competitors
(and the allergen-sensitive benefits).
 Capitalize on current recalls of competitor's dog treats by picking up the
consumers who switch from recalled brands (also US made).

Threats
Dog treats market expanding, prices are becoming competitive.
 Competitors have a more active presence and interactions online with
consumers (i.e. Nutro).

Competitive Review
Direct Competitors & Positioning
Competitors:
• The Honest Kitchen
• Zuke's
• Stella and Chewy's
• Nutro
• Sojo
• Blue Buffalo
Positioning (for all
competitors):
• Marketing healthy, natural,
premium, gourmet, and
speciality products with a
focus on sustainable and ecofriendly methods that appeals
to a specialty market.
• Premium Food accounts for
40% of Dog Food Sales
(2010)
Indirect Competitors & Positioning
Competitors:
Greenies, Caesar, Pedigree
•
Mars, Inc.
Purina
•
Nestle
Hill's brands
•
Colgate Palmolive
•
Proctor and Gamble
Iams
Positioning (for all
competitors):
• Top four companies account
for 82% of sales
• Marketing focuses on the
emotional aspect of having a
pet and the model is focused at the
mass market
The Honest Kitchen Marketing
Dehydrated Pet Food
•
Start with fresh raw whole foods and then dehydrate
Health Benefits
•
•
•
Food is medicine
Helps with overall health, digestion, skin and coat, prevents ear
infections, body weight and energy
Natural vitamins, minerals and valuable phytonutrients are maintained
Ingredients and Quality
•
•
•
100% Human grade
Made in Human Food Facility, same food standards as human food
No Genetically modified foods
The Honest Kitchen Marketing
Eco-friendly: "Reducing Paw Print“
•
Conventional ingredients to certified organic
•
100% free range, antibiotic free, sustainable chicken
•
Use all wild caught fish
•
No genetically modified seeds or grains
•
All manufacturing in North America
•
Light weight shipping, reduces emissions
•
Dehydration uses less energy than other processes like canning
The Honest Kitchen Vendor Pledge
Zuke’s Marketing
Markets it's brand using a platform that consists of 6 specific beliefs:
Healthier Pets make Happier Pets
•
Nutrition fuels a healthy pet life
Staying Active
•
Adventure Together with your Dog
Showing Devotion
•
Be a devoted companion to your dog
Healing Others
•
Support Dog and Cancer Fund
Living Green
•
Pays employees to ride bikes or scooters to work
•
Power offices using 100% Green electricity
•
Boxes are 60% recycled
Getting Involved
•
Fundraising for pet shelters and animal rescue
•
Supports Meet the Breeds, a dog and cat show in New York
Stella and Chewy’s Marketing
Principles:
“Pets deserve pure, simple, minimally processed
intended”:
food – the way nature
Only the Good Stuff
•
Stella & Chewy’s product is made with raw, naturally raised meat, poultry or fish, sourced
from USDA-inspected facilities, without hormones or antibiotics
Nutrition as Nature Intended
•
Products are natural and raw
Stickler’s for Safety
•
Products have a seal that states that it went through the Secure-By-Nature food safety
process
A raw diet is better for pets
•
Improves:
o
o
o
o
appetite and digestion
healthy skin and coat
Stamina
helps support a healthy immune system
Nutro Marketing
Proven. Natural. Nutrition.
•
Dog Food that is tailored to a dog's life stage, breed size, and health condition
•
Premium natural ingredients with fortified vitamins and minerals
•
Claim that their product is taste preferred by 7-10 dogs
•
A small firm stool is guaranteed
Nutro Marketing
Pet Food Safety and Quality
•
Own facilities
•
Make over 600 quality checks daily
•
Inspected by FDA
•
Good Manufacturing Practices, Good Hygiene Practices and Hazard Analysis and
Critical Control Points
•
Test every grain shipment for myotoxins
•
At least one complete shutdown for in-depth cleaning and sanitation per week
Sojo’s Marketing
Options:
o
grain free
o
gluten free
o
raw freeze-dried meat
o
just add water
o
add water and meat
•
Human grade ingredients, USDA meat, no genetically modified foods
•
Nutrient profiles for products
•
Frequently asked question section on website
Marketing of Blue Buffalo
Why BLUE?
 Because only BLUE is made with the unique combination of high-quality,
natural ingredients plus exclusive LifeSource Bits.
Nutrition Philosophy
 “Love them like family. Feed them like family.”
 What’s In Our Food and Why
 What’s Not In BLUE and Why
LifeSource Bits
LifeSource Bits are the small, dark kibbles mixed in with our BLUE dog and cat
dry foods. They contain a precise blend of vitamins, minerals, and antioxidants
selected by holistic veterinarians and animal nutritionists. To ensure that dogs
and cats get the full benefit of these vital nutrients, LifeSource Bits are “coldformed” to help preserve their potency.
Promotional Programs of "The Honest
Kitchen"
"Customer Rewards Program"
•
Earn free coupons and rewards by sending in UPCs of any full size box of dog food
"Animal Rescue Organizations"
•
Approved organizations may qualify for a 30% discount
•
Breed Rescues, Sanctuaries, Shelters and Foster Families associated with
registered rescue organizations
Promotional Programs of "The Honest
Kitchen"
"Allies Program"
•
"Allies" receive an Honest Kitchen discount on purchases, a free Honest Kitchen
T-shirt, literature and access to product samples as well as a chance to participate
in new product taste-tests
"Non-profit Donations"
•
Provides product samples, full-sized products and occasional monetary donations
to a variety non-profit events nationwide
•
Charity Galas, Walks, Raffles, Auctions, Sponsorships, Goodie Bag items and
other community outreach programs
Promotional Programs of "The Honest
Kitchen"
"Honest Breeders Program"
•
•
•
Work with responsible breeders
They don't allow their products to be sold in stores that sell puppies or kittens
Work with responsible breeders who work hard to place their puppies and kittens
in loving homes
• Qualified and approved breeders are set up with a special discount
code for online dog food purchases
Promotional Programs of "The Honest
Kitchen"
"Service and Working Dogs"
•
Special Program for the following service dogs:
o
Search & Rescue, FEMA, Bomb Squad, Active Military, Police K9, Avalanche,
Cadaver and Registered Service Dogs
o
Standard Working Dogs discount of 20% off MSRP
o
30% off and occasional free products for active Working Dogs whose
handlers allow the use of photos of their work and provide endorsements for
promotional purposes
Promotional Programs of "The Honest
Kitchen"
"Working with the Veterinarian Community"
•
Free Box of food, complimentary samples and literature and/or an Honest
Kitchen hosted 'Lunch & Learn'
Other
•
The Honest Kitchen (thk) Blog
•
Giving Back
o
•
"Charity of the Month“
Media Center
o
View recent media clips about the company and their products
Promotional Programs of "Zukes"
Donates a portion of annual profits to Dog and Cat Cancer Fund
Sponsor Events:
•
Zuke's Fuel the Love Tour
•
Dock Dog World Championship
•
Hero Dog Awards
•
Flyball NAFA CANAM Classic
•
Skyhoundz World Canine Disc Championship
•
Furry Scurry
Promotional Programs of "Stella &
Chewy's"
"Charitable Work"
•
Friends of Barrington Dog Park
•
Central Park Paws
•
Animal Rescue, Inc.
•
Tri County Humane Society
•
Friends of First Run
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Broadway Barks
•
The Mayor's Alliance for NYC’s Animals
•
Dog Habitat Inc.
•
Hope Veterinarian Clinic
•
Animal Haven
Promotional Programs of "Stella &
Chewy's"
"In The Press"
•
Huffington Post: The Blog
•
Dogster.com
•
The New Barker: Product Reviews
•
Pawdogs
•
Forbes: Leadership
•
Pet Product News
•
Pet Business
•
And 16 others
•
The New York Times: Well Pets
Promotional Programs of "Nutro"
"My Nutro Rewards Program"
•
Sign-up, receive savings, pet-health tips and the latest news via email
•
Tailored pet information and articles
•
News about promotions and events
•
Insights into natural nutrition
"Sustainability & Community Initiatives"
•
"Room to Run" Dog Park Appreciation Project
•
The National Disaster Search Dog Foundation
•
"Rescue Bank" Pet Food Donation
•
In-kind Donations
Promotional Programs of "Nutro"
"Commitment to Veterinary Community"
•
Continued research of pet nutrition to develop solutions and optimal nutrition
that Veterinarians can recommend with confidence
"Free Continuing Education Webinar"
•
"Veterinary and Pet Owner Attitudes and Awareness Toward Natural Nutrition"
"Nutro Company Breeder Program"
•
Breeders receive special offers and information
Promotional Programs of "Nutro"
"Nutro Pet Food Trainer Kit"
•
Brochure about the Nutro Family of Products
•
$5-off coupons for each pet parent
•
$10-off coupon for any Nutro Dry Dog Food
News & Press
•
A Variety of Press Releases
Promotional Programs of "Sojo’s"
"Breeders who use Sojo’s"
•
List of breeders who use Sojo’s products
"Sojo’s in the Media"
•
Pet Business Magazine, Pet Product News, Pet Elite Magazine, Animal Wellness
Magazine, etc.
Press Releases & Product Photos
Promotional Programs of
Blue Buffalo
Create your own BLUE Trading Card
o “Card’s of the Month”
o Compare your Brand to BLUE
o BLUE TV
o Mailing List Sign-Up
Media used by “The Honest Kitchen
https://www.facebook.com/TheHonestKitchen
https://twitter.com/honestKitchen
http://pinterest.com/honestkitchen/
http://www.youtube.com/HonestKitchen
http://www.thehonestkitchen.com/thk-blog
Media used by “Zuke’s”
https://www.facebook.com/ZukesPets
https://twitter.com/ZukesPets/
http://pinterest.com/ZukesPets/
http://www.zukes.com/join-us/rss
http://www.youtube.com/user/ZukesPets
Media used by “Blue Buffalo”
https://www.facebook.com/BlueBuffaloAllNaturalPetFood
https://twitter.com/bluebuffalo
Media used by “Stella & Chewy’s”
http://www.facebook.com/stellaandchewys
https://twitter.com/stellachewys
Media used by “Nutro”
https://www.facebook.com/NutroProducts
https://twitter.com/nutro
http://www.youtube.com/user/thenutrocompany
Media used by “Sojo’s”
http://www.facebook.com/pages/Sojos/100210990057533
https://twitter.com/sojospetfood
http://www.youtube.com/user/sojos
https://plus.google.com/108636661741092643568#108636661741092643
568/posts
Cloud Star Marketing Strategy
Marketing Strategy
Unique Selling Proposition (USP)
•
•
•
•
•
•
Made in the USA
All Natural Ingredients
No Artificial Colors, Flavors, or Preservatives
Free of Corn,Yeast, Sugar, Salt & Soy
Wheat Free and Low Fat Options Available
At least 10% of net profits donated to non-profit organizations that benefit animals,
women, children and the environment
Primary Marketing/Business Challenge
•
Increase Brand/Product Awareness
Pricing Strategy
Original Natural Biscuits (16 oz.)
$6.49
Soft & Chewy (6 oz.)
$5.99
Competition Pricing Strategy
 Zuke's Grain Free Jerkey
Bites Natural Dog Treats
(6oz.) = $7.99
 Blue Buffalo Health Bar Dog
biscuits w/ chicken liver
(16oz.) = $9.71
Competition Pricing Strategy
 The Honest Kitchen
"Smooches" Low calorie,
free-range
chicken & cranberry
natural dog treats 8 oz box
= $7.99
 Sojo's grain free lamb &
sweet potato dog treats (10
oz) = $7.29
Distribution Plan
•
•
Products can be found at
pet food stores nationwide
Select items can be found at
pet food stores or
supermarket pet food aisles
• Also available online
at
www.amazon.com
www.kvvet.com
www.cloudstar.com
www.petfooddirect.com
www.chewy.com
www.sitstay.com
www.valleyvet.com
www.dogtoys.com
www.wag.com
www.drugstore.com
Distribution Plan
• By inquiring on Cloudstar.com, individuals can get
more info about becoming wholesalers if they
obtain a resale certificate
• Request Certificates can be completed by consumers
who are unable to find Cloudstar products in their
market of choice and returned to manager to show
interest in product line
Recommended Positioning
For pet owners who are looking for all natural pet food
products, Cloud Star's Buddy Biscuits are organic, US made
dog treats that are allergen free and contain nutritious and
healthy ingredients for their dog(s).
Preliminary Marketing Objectives
 Gain Market Share
 Increase Brand Awareness
 Increase Sales
Advertising Copy Strategy
•
Who the advertising is directed at
o
•
A promise of the basic benefit to the consumers
o
•
Dog owners looking for all-natural, healthy dog treats
Promise is provided in the ingredients description and nutrition facts on
the label
The reasons why the promise is believable and can be delivered
o
The American Association of Feed Control Officials (AAFCO) regulates
the ingredients
Differentiate From Competition
• After thorough research of Cloud Star and its competitors,
Cloud Star’s pricing, marketing, and promotional
strategies,as well as the product itself, are very similar to
the competitor’s
• This may be something that the company wants to address
to make themselves stand out more
Key Consumer Attributes
to Focus On
•
Target Customer
o
o
o
o
o
•
Roughly 2/3 consumer population is female
Age brackets of 21-30 & 46-55
HHI > $60,000/year
Has children
Owns 2 or less dogs
Product Attributes Ranked Most Important
o
o
o
o
o
Healthy
Nutritious
USA Made
Good For Teeth
All Natural
Market Research Analysis
Research Methodology
 Survey research obtained by conducting questionnaires and
in-person interviews of dog owners in targeted central coast
locations
o San Luis Obispo
o Morro Bay
o Arroyo Grande
o Pismo Beach
o Los Osos
o 183 Respondents in total survey
Demographics- Gender
• Slight variation between Total and >70%, but difference is
•
negligible
Roughly 2/3 of the population that purchases treats is female
Total Population
> 70% chance of buying
Demographics- Age
• There is no difference between Total Population and >70%
**41-45 was not included as one of
the answer options.
o
Both Total Population and >70% are consistent with the fact that the two
main age demographics are 21-30 and 51-60
Total Population
> 70% chance of buying
Demographics- Household Income
•
There is no difference between the Total Population and
>70%
o
Our consumer's HHI is over $60,000 per year
47.3% have HHI
over $60,000
**Note: data taken from data filtered >70% chance of buying
Demographics- Number of Dogs
•
There is no difference between Total Population and >70%
o
o
Majority has 1 dog
About 90% have 2 dogs or less
89.9% have 1-2 dogs
( Total Population)
88.3% have 1-2 dogs
( >70% chance of
buying)
Where does the consumer shop for
dog treats?
• People who are more likely to try Buddy Biscuits are more likely to buy at large pet
store chains and local pet stores
Top 4 Locations
o
PetSmart or Petco
o
Grocery store
o
Local pet store
o
Large retail Store (e.g. Costco)
>70% chance of buying
Total Population
Target Consumer Demographics:
>70% chance of buying
•
The target consumer...
is female (66.7%)
o are in the age brackets 21-30 (32.4%) or 46-55 (29.5%)
o has 1-2 dogs (88.3%)
o has a HHI of over $60,000 per year (47.3%)
o has children (58.3%)
o

Children are ages 16-25 (55.2%)
**Note: All percentages were taken from data filtered >70% chance of buying
Types of Dog Treats Purchased
Respondents were asked what types of dog treats they purchase for their dog.
• Type of treat most purchased = Cookie/Biscuit Treats (58.2%)
• Other types of treats:
o Cow Hooves
o Rawhide Bones
o Rope Toy Chews
o Peanuts
o Chew Bones
o Dehydrated Meat
o Bones
Type of Treat
% of Respondents
Cookie/Biscuit treats
58.2%
Chewy treats
36.7%
Jerky Treats
38.0%
Training treats
Treats with specific health benefits (i.e. dental care, eye health, coat
health)
18.4%
All Natural treats
27.8%
Home made or home cooked treats
14.6%
Other (please specify)
4.4%
**Data is from total sample
29.1%
Features Customers Look For When Buying
Dog Treats (Top 8)
 Top Features of Dog Treats: Healthy, Nutritious, Good for Teeth, US Made
 Those who have heard of Buddy Biscuits rate the attributes higher
Heard of Buddy
Biscuits
Total Sample
Attribute
Score
Attribute
Score
Healthy
95.2
Healthy
90.6
Nutritious
92.2
Nutritious
88.0
US Made
87.8
Good for Teeth
80.4
Good For Teeth
87.4
Premium Quality
79.8
All Natural
87.0
All Natural
79.4
Premium Quality
84.8
US Made
79.0
Organic
82.8
Inexpensive
76.0
No Artificial Preservatives
82
Organic
75
Features Customers Look For When Buying
Dog Treats (Bottom 8)
•
Those who have heard of Buddy Biscuits rank Giving back to the community higher than
those who have not
Heard of Buddy Biscuits
Total Sample
Attribute
Score
Attribute
Score
Vitamin Fortified
78.8
Vitamin Fortified
74.4
Company that gives back to the
community
78
No Artificial Preservatives
73.6
Grain Free
72.2
Company that gives back to the community
70
Helps Control Weight
70.6
Helps control weight
67.6
Inexpensive
69.6
Grain Free
65.2
Recommended by a Pet Store
66
Recommended by Pet Store
62.2
Breed Specific Treats
62
Breed Specific Treats
57.6
Fun Label
59.6
Fun Label
55
Important Attributes in the Decision to
Buy Buddy Biscuits
 Likely users of Buddy Biscuits are rate donates to animal shelters higher than non-users
>70% Will Purchase
Buddy Biscuits
Total Sample
Feature
Mean
Feature
Mean
All Natural
86.2
Price
79.2
Donates to Animal Shelters
83.4
All Natural
78.0
Price
79.6
Donates to Animal
Shelters
73.0
Donates to Environmental
Groups
73.2
Donates to Environmental 64.4
Groups
Donates to Women and
Children
70.8
Donates to Women and
Children
64.0
Product Attribute
Recommendations
•
Customers want a dog treat that is Healthy, Nutritious, All Natural
Product, Good for Teeth, US Made, and Premium Quality
•
The qualities that people want to see in Buddy Biscuits are All Natural,
Donates to Animal Shelters/ Environmental Groups/ Women and
Children
•
The front of the box should clearly say that Buddy Biscuits has these
attributes.
•
The box should give a story on side panel that talks about how they donate to
animal shelters and made in US.
Price per Package
Respondents were asked how much they typically spend on a package of dog treats.
•
A majority of the respondents (81%) said that they spend $10 or less on each package of
dog treats they purchase
$ Spent Per Package
% of Respondents
$0-5
36.1%
$6-10
44.9%
$11-15
12.2%
$16-20
4.8%
>$20
**Data is from total sample
2%
Amount Spent on Dog Treats Per
Month
Respondents were asked about how much they typically spend total on dog treats per month
 A majority of the respondents (73.3%) pay $20 or less on dog treats per
month
$ Spent Per Month
% of Respondents
$0-5
18.5%
$6-10
19.1%
$11-15
14%
$16-20
21.7%
$21-25
5.1%
$26-30
8.9%
$31-40
5.7%
$41-50
3.2%
>$50
3.8%
**Data is from total sample
Amount of Dog Treats Purchased in a 3
Month Period
Respondents were asked approximately how many packages of dog treats they have purchased within
the last 3 months
• A majority of the respondents (81.5%) have purchased 6 or less packages of dog
treats in the last 3 months
Packages Purchased
% of Respondents
0 - 3 packages
48.6%
4 - 6 packages
32.9%
7 - 10 packages
12.9%
>10 packages
5.6%
**Data is from total sample
Brand Awareness
Top 5 Brands Compared to Buddy Biscuits and
CloudStar
•
•
•
•
Top Heard of Brand = Iams
Top Purchased Brand = Milk Bone
Cloud Star's brand is significantly less known than any major dog treat brand.
Buddy Biscuits has more awareness among users and non-users than Cloud Star
Brands
% People who have heard of the
brand
% People who have purchased the
brand
Iams
90.4%
26.2%
Pedigree
86.6%
29.8%
Milk Bone
85.4%
38.3%
Purina
82.8%
27.7%
Kirkland Brand
81.5%
29.8%
Buddy Biscuits
32.5%
12.1%
Cloud Star
20.4%
7.8%
Brand Awareness
Mid 5 Brands Compared to Buddy Biscuits and
CloudStar
•
•
Buddy Biscuits is heard of similarly to the mid 5 brands
•
CloudStar still falls below average in both categories, heard of and purchased
Buddy Biscuits has a greater purchasing intent by respondents compared to Canidae
and Zuke's
Brands
% People who have heard of the
brand
% People who have purchased the
brand
Natural Balance
57.3%
25.5%
Nature Select
51.6%
14.9%
Nutro
47.1%
14.9%
Canidae
30.6%
6.4%
Zuke's
26.8%
9.9%
Buddy Biscuits
32.5%
12.1%
CloudStar
20.4%
7.8%
Brand Awareness
Bottom 4 Brands Compared to Buddy Biscuits
and CloudStar
Brands
% People who have
heard of the brand
% People who have
purchased the brand
Sojos
22.9%
5.7%
The Honest Kitchen
21.0%
----
Pinnacle
18.5%
3.5%
Other
1.9%
11.3%
Buddy Biscuits
32.5%
12.1%
Cloud Star
20.4%
7.8%
*The Honest Kitchen was not included in the questionnaire for purchase intent
Other brands respondents have
purchased:
•
•
•
•
•
•
•
•
•
•
•
Vitabones
Trader Joe's brand
Blue Buffalo
Science Diet
Newman's
Bully Sticks
Dogswell
Greenies
Stella and Chewy's
Wellness
Pure Bites
How are people hearing about their dog
treat brand? (Top 5)
 There is no difference between where people find out about treats
 In-Store Ad's are the best way to reach new customers of Buddy Biscuits
>70% Likelihood to Purchase
Buddy Biscuits
Total Sample
Source
% of
Respondents
Source
% of
Respondents
In-Store Ad
45.6
Friends
43.7
Friends
43.9
Family
42.3
Family
42.1
In-Store Ad
37.3
Vet
22.8
Commercial
28.9
Promotions InStore
21.1
Vet
19.0
•
How are people hearing about their dog
treat brand? (Bottom 5)
•
Likely users of Buddy Biscuits are more likely to find out about treats via Social Media
than non-users
Online Ad's reach a small portion of respondents but is an easy market to get in to.
>70% Likelihood to Purchase Buddy Biscuits
Total Sample
Source
% Respondents
Source
% Respondents
Commercial
17.5
Promotional Material from
pet store, like Petco
14.8
Online Ad
15.8
Online Ad
10.6
Social Media
10.5
Social Media (facebook,
pinterest or Yelp)
4.9
Emails from the
treat company
3.5
Emails from the treat
company
3.5
Billboard
1.8
Billboard
0.7
Purchasing Intent
*After showing the Buddy Biscuits concept and competitive
board
Of the total respondents
•
About 37% of all respondents shown the Buddy Biscuits concept would have a good chance of
purchasing the product.
Likelihood of Purchasing BB in the Next Year
Total Respondents
Certainly Will Buy (99 chances in 100)
12.0%
Almost Sure Will Buy (90 chances in 100)
7.0%
Very Probable Will Buy (80 chances in 100)
8.9%
Probably Will Buy (70 chances in 100)
9.5%
Good Possibility (60 chances in 100)
12.0%
Fairly Good Possibility (50 chances in 100)
12.0%
Fair Possibility Will Buy (40 chances in 100)
5.7%
Some Possibility (30 chances in 100)
8.2%
Slight possibility (20 chances in 100)
10.1%
Very Slight Possibility (10 chances in 100)
5.7%
No Chance You Will Buy (0 chances in 100)
8.9%
>Good Chance of Purchasing BB
37.4%
Purchasing Intent
*After showing the Buddy Biscuits concept and competitive
board
Of those who ranked the dog treat feature “gives back to the community” as Excellent/Very Good
Quality

These respondents were 14% more likely to purchase Buddy Biscuits as compared to all respondents
Likelihood of Purchasing BB in the Next Year
Gives Back to Community
Certainly Will Buy (99 chances in 100)
14.5%
Almost Sure Will Buy (90 chances in 100)
13.2%
Very Probable Will Buy (80 chances in 100)
14.5%
Probably Will Buy (70 chances in 100)
9.2%
Good Possibility (60 chances in 100)
7.9%
Fairly Good Possibility (50 chances in 100)
13.2%
Fair Possibility Will Buy (40 chances in 100)
3.9%
Some Possibility (30 chances in 100)
3.9%
Slight possibility (20 chances in 100)
7.9%
Very Slight Possibility (10 chances in 100)
5.3%
No Chance You Will Buy (0 chances in 100)
6.6%
>Good Chance of Purchasing BB
51.4%
Purchasing Intent
*After showing the Buddy Biscuits concept and competitive
board
Of those who responded that they have heard of Buddy Biscuits
•
If the consumer is aware of Buddy Biscuits, he/she is nearly twice as likely to purchase
•
59.7% of people who have heard of Buddy Biscuits have a good chance of purchasing
Likelihood of Purchasing BB in the Next Year
Heard of Buddy Biscuits
Certainly Will Buy (99 chances in 100)
25.0%
Almost Sure Will Buy (90 chances in 100)
13.5%
Very Probable Will Buy (80 chances in 100)
7.7%
Probably Will Buy (70 chances in 100)
13.5%
Good Possibility (60 chances in 100)
3.8%
Fairly Good Possibility (50 chances in 100)
3.8%
Fair Possibility Will Buy (40 chances in 100)
5.8%
Some Possibility (30 chances in 100)
3.8%
Slight possibility (20 chances in 100)
9.6%
Very Slight Possibility (10 chances in 100)
5.8%
No Chance You Will Buy (0 chances in 100)
7.7%
>Good Chance of Purchasing BB
59.7%
Price of Buddy Biscuits
Respondents were shown the Buddy Biscuit concept board with product size and pricing, and also the
competitor’s products with their sizes and pricing.
• A majority of the respondents (70.7%) found that Buddy Biscuits is priced just
right
Price Level
% of Respondents
Too High
27.4%
Just Right
70.7%
Too Low
1.9%
**Data is from total sample
Implications for Brand Positioning
•
•
Among those likely to try, the charitable component is
important to them
Advertise about giving back to community on:
o
o
o
Packaging
Social media sites
In-Store Ads
Giving Back to Charity is Important
Respondent Type
Good chance of buying
BB in the next year
% of Total Respondents
that agree the trait is
good
Total Respondents
37.4%
--------
Giving Back Respondents
51.4%
24.4%
Heard of BB Respondents 59.7%
19.3%
Perception of the Quality of Dog Treats
• Cloud Star ranked the highest quality among those who have heard of
•
Buddy Biscuits
Brand awareness is vital
Brands
Mean Rating (Heard of BB)
Mean Rating (Total Sample)
Cloud Star
78
69.2
Nutro
76
70.6
Natural Balance
75.6
74.8
Nature Select
75.6
73.2
Zuke's
72
66.8
Canidae
70.8
67.2
Iams
68
71
Pinnacle
67.6
64.2
Milkbone
65.8
70.4
Kirkland Brand
64
67.6
Pedigree
63.8
69.8
Purina
62
68.4
Media Plan
Media Plan
The target customer for Buddy Biscuits is a female between the ages of 46 and 55
with a HHI of over 60,000 per year. This person also highly values a company that
donates to non-profit organizations.
Areas to place media:
• In-Store Advertisements
• Specialty Magazines
• Public Relations
o
Non-profit organization websites for animal shelters, environmental groups, and groups
that benefit women and children
• Google AdWords
• Social media websites
o
"In their use of technology, the youngest Baby Boomers (ages 45-55) are nearly as likely to
be online (and to have a home broadband connection) as younger adults"
http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/
In Store Advertisements
• Awareness is key for Cloud Star's success
o
o
•
Research shows that brand awareness leads to high brand rating for
Cloud Star
Get the brand name out there
Recommendations
o
In-store samples

o
"Costco Approach" - give those with dogs a free sample in retail locations
Displays

"Stand-up displays attract over 60% more business than product presented
on the shelf"
Print Advertisements
•
Special interest magazines
o
o
o
•
Dog Fancy
Animal Wellness
Family Dog
Newer, upscale pet-specific magazines
o
o
Bark
Modern Dog
National Magazine Cost
http://www.media-brokers.com/Magazine/RateCardCMG/6856/21/Akc-family-dog.aspx
Public Relations
•
Cloud Star PR
o
o
o
•
Philanthropic
Healthy
Made in US
Recommendations
o
Seek free advertising on non-profit organization's websites

o
Cloud Star donates to organization; organization returns the favor via free
advertising on its site
Special Events

“Cloud Star 5K-9”
•
•
•
A 5k for dogs and their owners
Proceeds benefit local animal shelters
Creates brand awareness
•
Benefits (taken from website)
o Effective

Advertising on the most used search engine worldwide and on our network is an
effective way to drive more people to your website and attract more customers.
o Transparent

With AdWords you always know what you get for your money. There are many tools
and reports to tell you what is working and how you could further improve your
campaign.
o Flexible

You can fine-tune virtually all aspects of your campaign at any time. For example,
you can change your budget, ad texts, keywords, geographic targeting, the days and
times your ads will appear, and many more settings.
Google AdWords Budgeting
•
Pay only for results
o
•
With AdWords you're charged only if someone clicks on your ad and lands on
your website, not when your ad is displayed. In other words, you only pay when
your advertising works.
Start with any budget
o
o
o
How much you invest is up to you – there are no minimum budget requirements
and no minimum terms.
For example, you can start with a daily budget of five dollars and a maximum
cost of ten cents for each click on your ad. And, you can change those settings
online at any time.
 Suggested price $1,000.00 = 100,000 clicks
http://www.youtube.com/watch?v=tx2L6EGa9DY - How to use AdWords
Social Media
• Facebook
o
o
o
o
o
The Honest Kitchen has over 150,000 likes
Over the last 6 weeks, The Honest Kitchen gained over 12,000 new FB likes and
consistently had 2,500-5,000 people talking about their brand
Cloud Star gained only about 200 new likes in the same time period
Cloud Star had 100-300 people talking about their brand
Nutro, THK, and Zuke's all had over 1,000 people talking about their brand through
interactions on the page (interactive posts, pictures, shared links via related websites, etc.)
• Twitter
o
o
o
o
Companies like The Honest Kitchen which have over 5000 followers have multiple tweets
every day.
Cloud Star Tweets only once a day or every other day
THK and Nutro ask questions to their followers to keep them engaged
Cloud Star is following 11 while THK follows nearly 1500 pages.
Social Media
 YouTube
Cloud Star's presence on YouTube is very small
o It may not be the best platform to market a dog food company, but there is still
potential there
o (See recommendations on next slides)
o
 Pinterest
o
o
Amongst Cloud Star and its competitors, Zuke's is the only brand with a
Pinterest page
However, the search words "Buddy Biscuits" and "Cloud Star" show many Pins
from different pet-related Boards
Recommendations for FB and
Twitter
 Facebook
o
Utilize Facebook to help increase brand awareness by inviting customers to post
a photo on their FB page of their dog eating a Buddy Biscuit treat

o
o
Ex) Every photo posted, Cloud Star will pledge to donate a box of its treats to an animal shelter
Free coupon offered for "Liking" page (BOGO, $1 off, etc.)
See Honest Kitchen "Try a free sample" offer
 Twitter
Tweet at least three times a day
o Ask followers questions. Ex: Tweet pictures of your dog? What year did Cloud
Star begin? Do you have a dog that looks like another species, if so post a pic.
o Follow more pages and tag them in posts. "@"
o
Recommendations for Youtube and
Pinterest
• Youtube- create videos people want to watch
o Potential Videos
 "How It's Made- Buddy Biscuits"
 Industry Expert talking about benefits of Cloud Star products
 Philanthropic Video- where donations go and who they benefit
• Pinterest
o Create a Pinterest page to gain more brand awareness
 Boards with:
• Funny dog pictures
• Customers using product
• Philanthropic endeavors
Questions?