Market Analysis Summary

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Sample Business Plans Children & Pets Pet Products & Services
Pet Supplies Business Plan

Plan Outline:
 Executive Summary
 Company Summary
 Products
 Market Analysis Summary
 Strategy and Implementation Summary
 Web Plan Summary
 Management Summary
 Financial Plan
 Appendix
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Tall Drink of Water
Market Analysis Summary

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. 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.
One market research company, Mindbranch, states that “inadequate

marketing has resulted in annual sales returns well below the level this
market should deliver,” which indicates that growth in this market could
be much stronger if marketing efforts were more sophisticated than they
are in the current fragmented market.
Based on our industry research, we think we have opportunities to attract

customers from the following market groups:
 Design professionals
 Pet care professionals
 Government agencies
 Individual consumers
The first three groups were selected because they offer growth outside of
the “usual” pet products consumer; their favorable opinion of the product
may help establish product reliability, brand credibility and influence
individual consumer purchases.
4.1 Market Segmentation
The four target market segments selected for this product are design
professionals, pet care professionals, government agencies and individual
consumers. Each segment is described below and illustrated in following
market analysis pie chart.
Design Professionals
Interior designers, architects, and landscape architects, were selected as a
target market for this product because the deluxe models are intended to
be customized to meet pets’ and owners’ needs. Designers who have
clients with pets will have access to a solution that is integral to their
designs, not an afterthought. The 2000 U.S. Census Occupations report
shows 1,926,689 people in architecture and engineering fields, but for the
purposes of this plan, we used the numbers reported by professional
organizations rather than Census data, because it is more specific and
representative of the populations we would have access to:
 Interior designers (American Society of Interior Designers): 20,000

 Architects (American Institute of Architects): 70,000
 Landscape architects (American Society of Landscape Architects):
14,200
Pet Care Professionals

Veterinarians, breeders, kennels and pet day care centers also need
access to a customized solution that works best for their clients.
Veterinarians recognize the health benefits of elevated feeders for pet
digestive health, as well as for the the joint, muscle and skeletal health of
older pets. They also recognize the benefits and pet preference for flowing
rather than stagnant water and can offer these products to clients to
address those health needs. Breeders, kennels and pet day care centers
all may have multiple pet facilities. Some of these facilities cater to high-
end clients who want assurance that their existing or future pets are well
cared for. Our customized multiple pet units can meet the pet care
professionals’ needs for feeding and watering pets and the pet owners’
need to know that their pets are receiving high-quality care.
We used data from the American Veterinary Medical Association and the
2000 U.S. Census for market data for this segment:
 Veterinarians (American Veterinary Medical Association): 69,000

 Pet care except veterinary services (2000 US Census): 28,320.
Government Agencies
Police departments and fire departments use dogs as service animals.
They may benefit from a customized, multiple-pet solution. Parks and
recreation departments that build and maintain dog runs or dog parks
may also benefit from a customized solution. In our research, we have
found that New York City area dog runs often have one water dish used by
hundreds of dogs throughout the day. We can offer another way for parks
and recreation departments to address the need to offer hydration for
pets in these locations: multiple height, water-dish-only units.
Market data for this segment was obtained from the 2002 US Government
Census report that shows parks and recreation and fire protection
departments as special district governments totaling 1,314 and 5,743
respectively, while state and local police agencies in 2000 totalled 17,784.
Further research may indicate that this market should be further
segmented to focus on New York City agencies to start.
Individual Consumers
The largest number of potential buyers for these products are individual
consumers. Industry experts estimate that more than 55% of U.S.
households own at least one pet cat or dog; many own multiple pets. The
2000 Census reported a total population of 281,421,960; 55% of that
number represents our potential individual consumer market,
154,782,078.
We project that the individual consumer segment will grow at a rate of

10% per year, while the commercial market segment, design
professionals, pet care professionals and government agencies, is
forecasted to grow at a rate of 5% annually.
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Market Analysis
Potential Growth CA
Customers
Individual 10% 154,782 170,260 187,286 206,014 226,616 10.00%

consumers (1000’s)
Government 5% 24,841 26,083 27,387 28,756 30,194 5.00%

agencies
Design 5% 104,200 109,410 114,881 120,625 126,656 5.00%

professionals
Pet care 5% 28,320 29,736 31,223 32,784 34,423 5.00%

professionals
Total 7.57% 312,143 335,489 360,777 388,179 417,889 7.57%
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4.2 Target Market Segment Strategy

The initial market focus will be on the commercial market segments:
design professionals, pet care professionals and government agencies.
Design professionals were selected because they can recommend
customized product solutions to existing pet owners as an added value to
their new or remodeled home. Pet care professionals can inform, assure
and influence pet owners regarding the health benefits of the products for
their pets. Government agencies can offer the product as value added to
attract visitors to dog runs and dog parks by demonstrating an interest in
the health and well-being to pets that visit them. Other government
agencies, police and fire departments that use service dogs can benefit
from improved feeding and watering for the larger breed dogs typically
employed for this kind of service. Together, these market segments were
selected to establish product reliability, brand credibility and brand
recognition.
Once the products are established in the commercial market segments,

the company will introduce them to individual consumers who think of
their pets as family, and are style and status conscious.
To support this strategy, we will attend industry trade shows and enter
design competitions. This strategy will allow us to form partnerships with
people and organizations that can help the company establish the highest
level of product performance and customer service.
4.3 Industry Analysis
In an April 2003 news release, the American Pet Products Manufacturers

Association (APPMA) forecasted that pet owners would spend $31 billion
for the care, feeding, spoiling and pampering of their pets. According to
their April 2004 news release, actual spending on pet products in 2003
was $32.4 billion, $1.4 billion more than projected. Industry researchers
estimate that the industry will grow between 5% and 15% annually
through 2008.
Industry experts also report that the pet products industry is competitive
and highly fragmented with no clear brand leadership, and under utilized
marketing opportunities. There are opportunities for successful entry to it
that we intend to use to our advantage.
4.3.1 Competition and Buying Patterns
We have many competitors in the pet products industry. Direct

competitors are designers and manufacturers of elevated pet feeders and
complementary products such as pet fountains. In our research, we
identified one direct competitor that is publicly traded, OurPet’s
Company. 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
Current consumer buying habits for elevated pet feeders are driven
primarily by the products’ functionality, elevating pets’ food and water
dishes to a level that is healthier for them or providing flowing water,
which pets not only prefer, but is also healthier for them, encouraging
hydration and reducing microorganism growth that occurs in stagnant
water.
Some consumers, dissatisfied by current market offerings for elevated pet

feeders are building their own elevated feeders or asking friends or
relatives to build them to suit their unique space, aesthetic tastes or pet
needs. Others, like me, are starting companies of their own to offer
products to address consumers needs for functional products that also
suit the owners’ needs for products that fit their lifestyles.
Previous: Products Next: Strategy and Implementation Summary

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 Business Planning

Sample Business Plans Children & Pets Pet Products & Services

Pet Supplies Business Plan

Start my business plan

Tall Drink of Water

Market Analysis Summary

One market research company, Mindbranch, states that “inadequate

Based on our industry research, we think we have opportunities to attract

 Interior designers (American Society of Interior Designers): 20,000

Pet Care Professionals

 Veterinarians (American Veterinary Medical Association): 69,000

We project that the individual consumer segment will grow at a rate of

Need actual charts?

Individual 10% 154,782 170,260 187,286 206,014 226,616 10.00%

Government 5% 24,841 26,083 27,387 28,756 30,194 5.00%

Design 5% 104,200 109,410 114,881 120,625 126,656 5.00%

Pet care 5% 28,320 29,736 31,223 32,784 34,423 5.00%

Total 7.57% 312,143 335,489 360,777 388,179 417,889 7.57%

Need real financials

4.2 Target Market Segment Strategy

Once the products are established in the commercial market segments,

4.3 Industry Analysis

In an April 2003 news release, the American Pet Products Manufacturers

4.3.1 Competition and Buying Patterns

We have many competitors in the pet products industry. Direct

 Doskocil Manufacturing Company (LeBistro feeders and waterers)

 Nestle Purina PetCare

Large bricks and clicks retailers:

Online and catalog retailers:

 Drs. Foster & Smith

Some consumers, dissatisfied by current market offerings for elevated pet

Previous: Products Next: Strategy and Implementation Summary

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