Strategic Plan SWOT Analysis

Big Dog |

Strategic Plan

Economic: According an April 2004 American Pet Products Manufacturers Association, Inc. (APPMA) news release, pet owners are projected to spend "$2.2 billion for other [pet] services" in 2004 (Veter, 2011). That's a small portion of the more than $34 billion they will spend on all classes of pet care and product spending in 2004. The same APPMA news release reports that consumer spending on pet products has doubled from $17 billion to a projected $34 billion since 1994 when the APPMA first began tracking pet industry statistics.

Social: The sales strategy will be to develop a list of happy past customers who are willing to act as referrals for Big Dog. Once this list is developed, their names will be given out when a prospective client calls (May, 2009). The advantages of pet foster care are so obvious relative to kennels that it will not be difficult to sign people up. The flip side to this demand is that in order to maintain all of these advantages, the operation must stay small so there will not be the possibility of growing the operation beyond its capacity.

Competitive analysis: We have many competitors in the pet products industry (Vetere, 2011). Direct competitors are designers and manufacturers of elevated pet feeders and complementary products such as pet fountains. Other competitors include, but are not limited to, private companies:

* Doskocil Manufacturing Company (LeBistro feeders and waterers)

* Veterinary Ventures, Inc. (Drinkwell fountains)

* A Charmed Life (Elevated feeders)

Indirect competitors for pet-related purchases include, but are not limited to, large public pet products corporations:

* Nestle Purina PetCare

* PETsMART

* PETCO

Large bricks and clicks retailers:

* Wal-Mart

* K-Mart

* Target

Online and catalog retailers:

* Drs. Foster & Smith

* Watson's Pet Company

* TrendyPet.com

* Orvis

Internal

Strategy: Big Dog will develop a loyal customer base through the use of a simple initial advertisement in the local newsletter, strategic alliances with veterinarians, and a word-of-mouth referral system. While this approach might seem a bit egotistical, based on the current service offerings for places to care for your canine, Big Dog is warranted in being a bit proud and assuming. Their service offering is unique and superior and will develop a loyal customer base quickly.

Goals: Big Dog believes that their service is so distinct and valuable, with no competition that little will be needed to build a customer base other than faithfully providing their service. Big Dog will be working with respected veterinarians as well as placing an advertisement in the Human Society newsletter as the means of communicating The Big Dog's availability to the general public. These will be the only strategies used to develop a loyal customer base.

Culture: Big Dog's target market is people who truly look out for their dog's best interests and can afford a pet foster family (Benett, 2010). Big Dog is targeting the market of people that believe there should be another alternative for the care of their dog. The other component of the target market are customers who can afford to keep a big dog in their house, since the typical suburban household income is $60,000.

Innovations: Dog owners consider cleaning up after their dog a major challenge. Unfortunately, currently available products offer dog owners little help as they are generally cumbersome to carry, crudely designed and manufactured, difficult to operate, and difficult to keep clean. Dog owners will welcome environmentally friendly products which can effectively address these problems (Vetere, 2011).

Strengths

Weaknesses

Opportunities

Threats

Economic

The pet industry is something which a lot of people invest money in The market for this industry is very small and select; not everyone is a pet lover

The product Big Dog offers is something unique which people would like to try out

Being in the economic state our country is in, the target market might get smaller

Social

The marketing strategy will be through word-of-mouth and very personal

The start-up using this scheme may be very small

Groups of people who are inclined to spend on their pets have friends who are the same

The market for these people are small, especially since it is more specific -- big dogs, not just dogs

Competitive

The type of products Big Dog offers is very unique in the market

Being a small company, it is not as well-known as other brands

People would rather products which are safer for their pets

Having people try the products would come as a difficulty

Strategy

Having a loyal customer base will ensure continuous sales

Starting up this customer relationship will take time

Since Big Dog is a small business, it will be locally known and an intimate relationship with customers can be established

To "catch" consumer attention, much capital is needed to promote sales through promos

Goals

The distinct nature of this business should catch the needs of very specific consumers

The market for these consumers is very small

Being a local business, clientele can be pinpointed easier, and our services are generally available to the public

Looking for a geographic location with a good amount of consumers will be difficult

Culture

The target market for Big Dog will be very specified, and it can be established through networking of dog lovers

The market for these consumers is very small

Consumers of Big Dog will have a close relationship with each other as well as Big Dog staff

Growth of consumers may take time

Innovations

The products Big Dog offers are very unique

People find new products, especially those they entrust to care for their pets, suspicious at first

The products have no competition with other brands, being environmentally friendly and organic

People may rather products which they are comfortable with The organization will adapt to consumer needs, which is aimed at better caring for pets and pet owners whilst being good for the environment (Vetere, 2011). However, changes in finances and in management may not adapt too well in the first years of business. Product lines will be vulnerable at the start, being a new company and offering something which is unique. Promotions of goods and services will be required to launch the company at first. Fortunately, being a small local business, the launch will not take very long as client relationships will be well established within the community (May, 2009). The business, Big Dog, will adapt to change as long as it satisfies its goal of being the leader in eco-friendly pet products.

The supply chain organization of the business will be very small, and does not need as much management from the start. Once sales begin to climb, we will hire a second person to take over inventory and office management. This person will coordinate orders and deliveries, pay bills, and provide back-up customer service coverage. In the second and third years we plan to hire a part-time sales representative to expand our commercial sales nationally. The personnel plan will be evaluated regularly and, as growth requires it, a detailed personnel plan will be developed based on business needs with guidance from the Occupational Outlook Handbook and staffing agencies. Our website, marketing and trade show activities are being undertaken under the advice of independently contracted consultants familiar with the pet-care industry.