Rise and Decline of a Pet Supply Retailer - 1650 Words

Rise and Decline of a Pet Supply Retailer (Essay Sample) Content: NameCourseInstructorDateSWOT AnalysisBelow are the strengths, weaknesses, threats and opportunities of the company broken down in points. StrengthsExcellent Customer Care - The greatest strength of the online pet company is its customer care strategy. Ultimately, for the company to make profits and stay ahead of competition, they not only have to retain a loyal client base but have to grow their market share. Pets.com Inc. shows a great commitment to giving customers a great experience by meeting their needs and surpassing their expectation.The companys partnership with Amazon - They were able to get Amazon to partner with them which also strengthened their brand. Amazon is one of the greatest and most successful online companies. It serves the company better therefore to have them as a partner than it would as a competitor. Experienced and Competent Management Staff including CEO Julie Wainright who was former CEO of Reel.com, Amazons video games online store. She ma sterminded the companys partnership with Amazon.Quality Processes and Procedures Online transactions with customers are basically hassle free and seamlessWeaknessesHigh start up and operations cost The Company needed a lot of money to set up and operate in the beginning and even with the initial public offer it appears not to have acquired a strong financial position.Ineffective cost strategies - The Companys greatest weakness is it cost strategies. The return on expenses especially costs incurred in advertising and marketing have not yielded worthy returns which have caused the company to make losses. There seems to be a weakness in their financial planning and they definitely need better strategy in applying cost effective measures.Poor predictability among decision makers - The management and decision makers show a weakness in making predictions and using them to inform their decisions especially the decisions that involve additional expenses. All the decisions made as a result of a reduction in sales and stock price appear rash and not well thought out.Undifferentiated products in relation to the companys competitors There is nothing special or different in the companys products and packaging from its competitorsLack of marketing expertise The Companys methods of advertising were not effectiveThreatsFierce Competition from major pet stores- The Companys greatest threat is its competitors. For starters, its major competitors are very strongly established, some even in overseas markets.Increased number of retail pet stores within the companys location - There is an increasing number of retail pet stores who have embraced ecommerce and are selling their pets and pet merchandise online. As the market for pets grows, in this case the online market specifically, so will online pet suppliers. The company may face greater competition in the years to come in spite of an increase in target market size.Competitor rivalry There are three major competitors in addi tion to Pets.com vying for top positions on the stock exchange market.OpportunitiesIncreasing pet spending- Another opportunity is the increase in spending on pets. In the year 2013, Americans spent 56 billion dollars on pets. Of this, they spent 370 million dollars on pet costumes which is a relatively new and fast growing concept. Increasing number of internet users - The Companys greatest opportunity is the increasing number of internet users. There are close to seven billion people in the world and an estimated 2.9 billion were using the internet. In the United States alone, more than 84 percent of the population were constantly using the internet in 2014. The company therefore still has a chance to widen their market share through strategic planning.The firms acquisition of one of its greatest competitor firms The firm bought one of the three of its greatest competitors and rivals, Petstore.comNew International markets through the internet The internet provides a platform to reach more customers in international markets.2. Target Markets and Positioning Statements Based on the SWOT analysis above, the companys main target market is more than 60 percent of American homes that have pets or would like to have a pet. Being a huge company, they could also target retail outlets online or otherwise. They could act as whole sale suppliers for pet sellers and smaller pet stores. This target groups can be broken down to subgroups that include pet specific customers, pampered pet customers and health conscious pet customers. All subgroups have different specific needs and seek different experiences in pet stores. For the pet specific customers, their positioning statement would be For the pet owners who seek a specialty store that caters to their type of pet, Pets.com provides specialized care in all areas for your specific type of pet that makes us a one stop shop for all your pet needs. Unlike other pet stores, Pets.com walks with you all the way. This position al statement is justified by the fact that pet specific customers seek out pet stores that specialize in their specific pets needs including such things as foods, treatment, and pet specific advice and in some cases pet costumes. Health conscious pet customers are the customers that not only care about their health but are constantly concerned about their pets health too. For instance, a health conscious pet customer will opt for pet products made with natural ingredients as opposed to pet products with a lot of filler material. Quality is so important to them that they are willing to pay more for natural products that are healthy for their pets. The positional statement for this target market is For pet owners who care about their pets health, Pets.com provides an array of quality healthy pet products. Unlike other pet stores, Pets.com advocates for healthy living among customers and their pets. Pampered pet customers want the best for their pets and like to show their pets off. S ome of these customers have their pets as accessories. Examples of accessory pets are the Chihuahua and the Shi Tzu. These customers are also likely to be wealthy or celebrities or both. They are also the biggest spenders on pet costumes. The positional statement for this target market would be For pet owners who like to spoil their pets, Pets.com provides the necessary accessories and special pet treats for your specific pet. For the entire pet market including pet retail outlets, an all encompassing positional statement would be, For all pet lovers who are looking to not only buy a pet but maintain its wellbeing , Pets.com is your one stop pet shop for your pet and all its needs.3. The New Marketing MixThe marketing mix, also known as the 4 Ps of marketing comprises of product, price, promotion and place. These four factors have to be combined in the right balances to ensure the best performance for a specific product. The most basic marketing concept that encompasses the marketin g mix is the art of having the right product, at the right time, in the place and at the right time. For a firm to come up with the right marketing mix they need to research on a couple of important factors. One is the specific customer needs and wants of their target market(s). The other is the customers purchasing poser and how much they are willing to spend on the product. It is also important to determine a convenient location to place the product for sale and find out the best ways to let the target market know about it. In the case of Pets.com the marketing mix can be revised to improve sales, increase profits and consequently improve the value of the firm and its stock price. The current marketing strategy is clearly not working for the company. One of the objectives for the new marketing mix is to increase the companys current market share and to create a loyal customer base by getting more customers to choose Pets.com as their pet store. The company is facing fierce competi tion from many online pet stores and as a result, it is losing some of its customers to other pet stores. Seeing as the product is the same for all competitors, the only way to ensure that the company has a loyal ...