The World of Marketing to Pets Rosenthal 2006 Pets as the “other children” for many owners We’re treating dogs & cats like children The human is making the purchase decision Dogs have gone from the outside doghouse to sleeping in the basement to the main house to the master bedroom Pets become the new American children, spoiled like the kids Later marriage-age couples trying out a pet as a test for children Mainstream publications like GQ & TimeOut devoting stories & columns to pets & pet products Boomers now buying pets thanks to products like timer-driven feeding & water devices – Fill the void of the empty nest Rosenthal 2006 Pet Passion $40 Billion industry is growing ($17 billion in 1994) – – – – 65 Million pet-owning households (62%) – – – 56% in 1988 More pets than people in the U.S. (350m vs. 378m) – $20 billion on toys for humans, $24 billion on candy for humans $13 billion on pet food $ 5 billion on pet-related products $10 billion on pet-related services including vets 43 million dog owners, 34 million cat owners Especially with kids 5-19 40% of homes have more than 1 pet Spent $350/yr. on pets in 1998 Baby boomers who are empty nest; young professionals who are delaying families. Rosenthal 2006 Pet Passion 40-100% of respondents* – – – – – – – – – Gave their pet a holiday present – 100% Include their pet in holiday celebrations – 97% Consider their pet “smart” or a genius – 75% Celebrate a pet’s birthday – 63% Take time off to care for a sick pet – 53% Prepare special meals for a pet – 52% More attached to their pets than at least 1 other human – 52% Take their pet to work – 44% Display a pet’s photograph at work – 43% *1999 survey of 1100 pet owners by American Animal Hospital Assn. Rosenthal 2006 Health Benefits of Pet Ownership Helps lower blood pressure Helps reduce stress Helps prevent heart disease Helps lower health care costs Helps fight depression Rosenthal 2006 Pet Industry Super-premium pet foods by Iams in 1976 – – Pet superstores – PetSmart in 1987 – Eukanuba brand & Science Diet Co. 70 brands today led by Ralston-Purina Matched increase in consumer pet purchases Superstores & discounters – 50% of sales Rosenthal 2006 Pet Retail 2003 Holiday Sales Make pet gifts a major part of holiday marketing plan Nearly 90% of pet owners will buy gifts for their 4-legged friends (National Taubman Centers Survey) 10% of pet owners will spend up to $50 on their pets for the holidays 40% plan to spend $100 this year to pamper their pets 40% plan to have their pets photographed – Taubman Santa Paws nights benefiting animal welfare causes Rosenthal 2006 Yes to Gifts, No to Antlers Exclusive companies have diversified into dog wear & paraphernalia in 2003/4. – – – – – – – – – – – Ralph Lauren Fair Isle cashmere sweaters($100) & polo shirts for dogs Prada, Chanel and Burberry dog collars & leashes Gucci dog beds ($2,000) Sterling cat bowl ($1,220) Tiffany & Co. inscribed sterling-silver pet tags ($80) L.L. Bean pet booties, Harley- Davidson black-vinyl jacket Omaha Steaks steak pet treats Swarovski Crystal designer collar ($55-$140) Coach signature dog coat with shearling trim ($150) Saks leather dog carrier ($750) Colognes for dogs Rosenthal 2006 Look What Santa Brought 29 million dog owners bought Christmas gifts for their dogs 37 million cats owners bought Christmas gifts for their cats Rosenthal 2006 Rosenthal 2006 Birthday Barks 10 million dog owners celebrated their dog’s birthday 5-10% gave their dog a party with other dogs or pets or took birthday photos or took their dog to a favorite place 13 million cat owners celebrated their cat’s birthday Rosenthal 2006 Americans Go “Batty” for Halloween Pet Costumes & Candy “SuperDog” and “BatDog” by Rubie’s Costume Co. “Puppy Pilot” – cap with goggles & kerchief Pet candy: – – – YipYap doggie breath mints Sniffers beef & cheese dog candy Pit’r Pat cat breath mints Pet-friendly destinations in your neighborhood Rosenthal 2006 Pets Prove to be America’s Sweetheart 9 million Americans will buy their pet a Valentine’s Day gift (2003 APPMA) – – – Pet charm jewelry by Celitei Luscious Lips plush red velvet toy by Dogmopolitan Crunchkins’ Crunch Cards – edible dog greeting cards “My Heart Belongs to You” “Friends Fur-ever” Rosenthal 2006 More Pet Picks Team jerseys – L.A. Lakers & Dodgers ($30) Ralph Lauren deodorizing spray tested by veterinary dermatologists ($25) Wall Paw print frame at Things Remembered ($35) Rosenthal 2006 Home Away From Home Burberry pet tote ($100) Coach plaid pet carrier ($400) Discovery Store pet hammock ($30) Brighton leather cat or dog carrier with braided leather loop handles ($300) Wrought iron beds from Nixon’s Top Dog Bakery ($300-700) Legally Blonde 2 polka dot tote ($450) – Nixon’s Top Dog Barkery Rosenthal 2006 Mark Your Territory Private label pet treats & spa products Harry Barker pet shampoos & beauty products Happy Hound Biscuit Company treats with store logo & décor theme Rosenthal 2006 Service Industries Catering to Pets Airlines Hotels adopting pet-friendly policies – – Pet pillows, plush doggie robes, check-in gifts, licensed dog masseuse on staff Sheraton, Westin, and W Rosenthal 2006 Pet-friendly Hotels San Francisco Hotel Monaco “Bone-a-Petite” package includes a designer dog dish, gourmet treats and toys, and temporary dog tags. No pet? You can borrow a goldfish for your stay, or check out petthemed videos. Boston Nine Zero Hotel Pets with impeccable manners can still wind up “In the Doghouse,” courtesy of a complimentary package that includes a welcome treat, plus bowls and bedding. Let the concierge arrange for pet sitting, grooming, walking, and massage for your pooch. New York City Soho Grand Hotel Humans sharing the bed with furry friends will appreciate the free doggie toothbrushes, and lonely guests can choose a fish for a temporary (or permanent) adoption. San Diego Loews Coronado Bay Resort Order a snack from the vet-approved room service menu. Telluride Wyndham Peaks Resort Doggie Spa: Packages include guided playtime, baths, haircuts, “pawdicures,” ear and teeth cleaning, blow drying, brushing, massage, and gourmet lunches. Rosenthal 2006 Visitors on Board Pet lovers winning the battle against allergy-sufferers 13 carriers allow pets in the cabin & d on’t alert passengers 29 million people traveled with pets by plane or car – $150 round-trip fee Dogs, cats, birds, hamsters, ferrets, guinea pigs Rosenthal 2006 Merchandising Mania NY International Gift Fair AAPPMA’s Pet Products Trade Show Rosenthal 2006 Emotional Well-Being Yoga for dogs at Waldenbooks ($15) Paw balm by Ralph Lauren ($25) Gramercy park dog cologne by Ralph Lauren ($25) SnugglePuppy/Kitty plush with simulated heart beats at Petland ($40) Discovery Intellibone pet toy develops canine coordination & puzzle-solving skills ($15) Rosenthal 2006 2003 Pet Trade Show Reptile lunch box ($3) – – Kosher food – Boxes of live crickets for lizards, frogs or birds 2-3 week shelf life www.kosherpets.com Breath mints – – www.chompinc.dom Yip Yap for dogs, Pitr Pat for cats Rosenthal 2006 Premium & Specialty Pet Products 50% increase in nutraceutical properties (’97-’98) 20% increase in natural, holistic properties (’97-’98) Increase in behavior modification products Increased specialization re. breed, stage of life, lifestyle Increased interest in emotional & mental stability – Hyperactivity, motion sickness, sleep disorders, anxiety Rosenthal 2006 Pet Parents Think of & treat their pets like children “Paws ‘N More” line – – – – Puppy key teether Pacifier & play mat Fish mobile for cats Rosenthal 2006 Pet Products Trend Report Going to the Dogs Pets Welcome Pet Products Sold Here The Lap of Luxury Dinner is Served State-of-the-Art Loosen Up Rosenthal 2006 Pet Products Trend Report … Cont. Ultra-Clean Help Yourself Straight from the Catwalk Keep on Truckin’ Hello, My Name is … Human Look-Alikes Convenience and on-the-go products Rosenthal 2006 In Memory of Pets Best friend memorial stone, $100, by Kay Berry – It's tough on your kids (and you) when your faithful friend and companion dies... ease the pain with a personalized Pet Memorial Stone. http://www.in-memory-of-pets.com – – Poems Prayers Rosenthal 2006