Question

Business Case situation: You have decided to explore the idea of opening your own pet food and supplies retail store. You have 10 years of retail management experience, a college diploma in business and a strong love for animals. You currently live in the Toronto area – but are willing to move. You are leaning towards serving the higher end of the market – but are not sure. You want to provide a good range of products, maybe focused more heavily on higher quality goods that cater to other pet lovers like you. At the same time, however, you know the value of a dollar and that everything seems very expensive. You are a bit unclear on the specific direction you should take. You know that a great deal of research and analysis is needed to better understand the opportunity, formalize your mission/goals and shape your business. Your research will also help inform how your business may grow. You also know that at the end of the day, you may need to make very important assumptions – some of these at a very high level. Indeed, you know from your time as a student that the perfect set of relevant research may be unavailable or incomplete.

Please create a competitive analysis assuming you're in the Toronto, Canada area (500-750 words)

Answer 1

Pet Food Store:

Toronto-based Pettie & Co. (Supposes that Toronto has the highest animal population and grows at a reasonable rate). Based on information given and some assumptions made on the market, we carry out an (external), SWOT market analysis about our core strengths and weaknesses (interior). The company was to be extended to other cities as a growth strategy.

Strength

• Wide selection of pet food, equipment and other services related to pet care.
• Great customer service-in particular, consumer attention is a strong category of purchase.
• Shop position–Place the shop in key areas strategically.
• Strong retail management team with experience beforehand.

Weakness

• The' fresh' tag–the industry's inexperience.
• Less ability to contend with other big players.

Opportunities

• Each neighborhood has large homes with dogs.
• Animal owners with high buying potential are increasing populations.

Threats

• Any future economic downturn that affects the target population's buying power.
• Similar shops are arriving in the area.
• Some adverse policies of government that occur.

Carrying out the Market Analysis for the Pet Food & Supplies Shop – Pettie & Co.

Market trends are targeted, particularly in the case of the innovations in Pet related services, such as grooming, purification, and sitning, available for animal owners in the same shop. Pet supplies shop is a growing trend. More and more people are accompanied by pets, which is why the demand for pets increases rapidly. Though supermarkets and retailers sell a wide variety of items, specialist pet-stores managed to develop their own niche clients. The service offered is usually a high-end offering.

The Target Market

Some laws govern the care of domestic pets. The store should be able to comply with these laws and the stock of different products should be reviewed periodically. Pettie & Co will also perform market research locally but would provide global standards, reflecting the aspirations of each of the target markets from Toronto.

All kinds of animals, including dogs, cats, fish, birds and other species, should be legally licensed to be kept as livestock. The product of the store will be slightly tailored to local needs. Other items such as leashes, colliers, shampoos, toys and pet accessories, above all from a marginal point of view, should be kept as well, as they are high marginal goods.

Competitive Advantage

It is really important to have a customer center approach in the sense of a high involvement and emotional buying decision. The store will be characterized by ingenuity in marketing, packaging and constructive practices in the business.

The position of the store will mean that consumers are able to spend more time in the store taking part in a variety of activities with their pets. At least 15-20 cars must be parked at a single go in the shop.

Staff engagement and retention-Pettie & Co., in addition to recruiting a specialist team, will ensure that its workers are handled properly. Appropriate pay and good benefits will enable the workers to accomplish a shared purpose.

Income Sources

• Branded Pet food store.
• Retail with all sorts with branded and unbranded products such as collars, leashes, toilet equipment, etc.
• Cleanning, toiletries, training etc.
• Strategy for Distribution & Marketing.

Hold' Pet Fest' every year in each of our locations–effectively a brand building activity where the parents of Pet can come and compete with their pets. A forum to demonstrate new and potential products.

Loyalty Plan–earn points for future purchases.

Presence of social media with handles on both websites. Forums and blogs related to animals to raise awareness and create brands.

At key sites, banners and billboards.

Create an eye-catching and appropriate logo.

Payment options–cash, money, bank transfer or e-wallet approved in any form of currency.

Provide revenues and expenditures for each of the expenditures related to business growth, publicity, launch of shops, registration fees, and launches and maintenance of the website.