feasibility study

Krupali Patel Paws Fur Beauty & P’etcetera

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 there’s no doubt it will pick up again in 2011. Wal-

Mart 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 nests.

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Paws Fur Beauty & P’etcetera 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 don’t 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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Political Trends – Introduced on May 13, 2010 were amendments to legislations that

now allowed soliciting, accepting, and processing of 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.

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 & P’etcetera 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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customer’s 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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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 & P’etcetera understands these needs and is based on providing just that

experience.

2. Goals and objectives: It is the Mission of Paws Fur Beauty & P’etcetera to

become the recognized standard of excellence in our field by consistently

exceeding our customers’ expectations, through our focus in the following three

areas:

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.

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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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

objective for 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 & P’etcetera 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.

Caring and prompt customer service.

The most up-to-date equipment and supplies to make your pet's experience a

joyful experience.

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 haven’t 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 don’t 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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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-to-

par family of friendly pet groomers.

The personnel plan will be as follows:

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.

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:

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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6. Potential competitors: There are several mobile groomers around our area that

service the same areas but don’t 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 & P’etcetera 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 & P’etcetera will 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:

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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Use promotional items such as frisbees, collars, coffee mugs, etc. with Paws

Fur Beauty & P’etcetera logo 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 & P’etcetera 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: 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.

o 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:

De-matting for long hair costs about $7 to $9.

For $3 to $10 extra, groomer will use flea-killing shampoo or skin-

soothing colloidal oatmeal shampoo or do a hot oil treatment.

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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Risk Analysis:

11. Strengths

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

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grooming industry

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.

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New competition can cut our profits

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 & P’etcetera 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. Porter’s Five Force Analysis:

FactorsDegree of the Forces Details

Rivalry amongst existing firms

Low Use of Green products is new in mobile pet grooming

Potential entrants Medium Economy of scale is a key factor. Low startup costs.

Threat of substitutes Medium Mobile dog grooming is fairly accepted now as

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a service provider.Bargaining power of

suppliersHigh Staff skill and ability is

crucial for the business. 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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feasibility study

Documents