Chapter-2 Market Study

NATIONAL COLLEGE OF BUSINESS AND ARTSBachelor of Science in Business Administration Department

Fairview, Quezon City

CHAPTER 2

MARKET STUDY

Market Description

Target Market

Pets with benefits is an establishment that offers pet grooming,

healthcare services, training and boarding. The company’s primary

target market consists of dog owners who are financially committed or

are willing to spend for their dogs. Most of them will be from high-

earning individuals that are usually away from home because of work.

People who prefer stand-alone services—not the package type that

PWB offers—are also part of our market.



Market Segmentation

45%

30%

25%

Market Segmentation

Working dog owners

Family-type dog owners

Full-time dog owners

The proponents classified the market based on the lifestyle or

activity of dog owners.

The first type is the working owner, who spends less than ten

(10) hours per week with their pet. These individuals make-up the most

of our target market because dog owners of this type do not have

enough time to bond with their pet since their work is consuming most

of their time, a factor preventing them to take care of their pet

properly.



Second, the family type dog owners who spend most of their free

time with their pet or at least spend four (4) to six (6) hours a day with

them. These types of owners are usually the married ones with

children; they are family-oriented people and treat dogs as part of their

family. They are part of our market because not all the time they are

able to give their dog’s need for attention since they have children to

take care of, too.

And last is the full-time dog owner, who spends 15 hours every

day with their pet. These are hands-on owners and are really dedicated

to giving their all for their pet. They control a small part of our market

since they are expected to avail our stand-alone services like grooming

and healthcare.



Demand Analysis

The target market of Pets with Benefits is the pet owners near Pearl

Drive, Quezon City. The pet owners who want to train their dogs and

those who want to leave their dog at the center. We also offer

grooming services for those who wants to make their dog well-

groomed. We also have a veterinary clinic inside the club dealing at

taking care of dog’s health.

a. Historical Demand

LOCATION 2010 2011 2012 2013 2014

Barangay

Fairview 6,846 7,168 7,504 7,855 7,873

Barangay

Greater Lagro 3,024 3,033 3,069 3,092 3,115

Barangay

North Fairview 5,467 5,956 6,486 6,920 7,211

Barangay

Pasong Putik 4,561 4,761 4,970 5,044 5,264

TOTAL 19,898 20,918 22,029 22,911 23,463



b. Projected Demand

In order to get the projected demand, the proponents expand on

the Arithmetic straight line formula:

Average Increase = Yn – Yc / n – 1

Whereas: Yn = Final Value

Yc = First Value

n = Number of years

Thus:

AI = Yn – Yc / n – 1

= 23,463 – 19,898

5 – 1

= 3,565

4

= 891.25

Average Increase of Demand = 891

Projected Demand = Average Increase + Past Demand



Projected Year

Average

Increase Past Demand

Projected

Demand

2015 891 23,463 24,354

2016 891 24,354 25,245

2017 891 25,245 26,136

2018 891 26,136 27,027

2019 891 27,027 27,918



Supply Analysis

There has never been a center in the country that offers all the

dog’s needs in one place. Thus the data gathered below are from the

center’s indirect competitors.

a. Historical Supply

Competitor 2010 2011 2012 2013 2014

Animal House 3,360 3,461 3,562 3,663 3,764

Furry Tails 5,040 5,292 5,544 5,796 6,048

House of Puppies 6,000 6,120 6,240 6,360 6,480

TOTAL 14,400 14,873 15,346 15,819 16,292

b. Projected Supply

In order to get the projected supply, the proponents used the

same formula:

Average Increase = Yn – Yc / n – 1

Whereas: Yn = Final Value

Yc = First Value

n = Number of years



Thus:

AI = Yn – Yc / n – 1

= 16,292 – 14,400

5 – 1

= 1,892

4

= 473

Average Increase of Supply = 473

Projected Supply = Average Increase + Past Supply

Projected Year

Average

Increase Past Supply

Projected

Supply

2015 473 16,292 16,765

2016 473 16,765 17,238

2017 473 17,238 17,711

2018 473 17,711 18,184

2019 473 18,184 18,657



Demand and Supply Gap / Unsatisfied Gap

The projected demand and projected supply for the years 2015

to 2019 will be used to determine the unsatisfied gap. The said gap will

serve as the projected sales of the doggy day care center.

Demand and Supply Gap = Projected Demand - Projected Supply

Projected Year

Projected

Demand

Projected

Supply

Demand and Supply

Gap

2015 24,354 16,765 7,589

2016 25,245 17,238 8,007

2017 26,136 17,711 8,425

2018 27,027 18,184 8,843

2019 27,918 18,657 9,261

Unsatisfied Gap = Demand and Supply Gap / Projected Demand x 100

Projected Year Unsatisfied Gap

2015 31%

2016 32%

2017 32%

2018 33%

2019 33%



The unsatisfied gap will be the company’s projected sales for the years

2015 up to 2019.



Marketing Strategies

Services Strategies

Doggie day care center offers grooming, training, lodging and

healthcare. In grooming services the strategy we had is an advantage

card, that for every five grooming services that they avail will get a

free service or a freebie.

For the training the strategy we have is to encourage and

reinforce good behaviours for the dogs. We have different kinds of

training like for puppy we had a puppy training which great

introduction of simple cues and basic manners is. We also have a

beginners training for dogs five months older. Also we had

intermediate training, advance training and additional training.

For the lodging services the strategy that we had is while they

boarding they have air conditioners and music. We also had a 24/7

CCTV for the protection of the dogs.

For the healthcare, every month after vaccination they will have

a free vitamin for the entire month.



Pricing Strategies

The prices at Pets with Benefits are in line with the exceptional

services that we offer and rest assured that it is competitive in the

local market. Selling our products and services at premium prices is

part of our strategy. Thru this, we are giving the customers the

impression that they will involve themselves in an establishment that

gives the best and high quality services for their dog.

Evidently, we want to give our clients comfort, too, by creating

different kinds of promos and advantages wherein the prices are

depleted, making it uncomplicated once a competitor enters the

market because these advantages are given for showing loyalty and

supporting our doggy day care center.

The centre’s strategy will mainly be the competition pricing

wherein the company will set a price in comparison with competitors.

The firm has three options and these are to: decrease the price,

maintain the price or increase the price.



Dog Grooming Services

The Doggy Day Care Center will take care of your pet’s needs;

one of those is the grooming service that provides complete grooming

package or simply do the grooming as your desire.

Grooming package:

Bath

Shampoo

Blow-dry

Ear cleaning

Nail trim

Sanitary trim

Teeth brushing

Hair cut

BREED PRICE

Small Php500.00

Medium Php600.00

Large Php700.00



Additional Services:

Teeth brushing - P75

Mouth wash - P75

Eye wash - P75

Ear cleaning - P75

Nail trimming - P75

Tear stain removal - P100

Bath and blowdry - Small breeds -P200

Medium breeds -P350

Large breeds -P450

Pet massage - P300

Peticure

(Nail caps

application/removal) - P200

Dog Training Services

Training opens up a line of communication between you and your

pet. It may not solve all behaviour problems, but it is the foundation for

solving just about any problem. Spend quality time with your dogs by

joining our classes and learn some ways on how to play and interact

with your pets indoor/outdoor.



At Pets with benefits, we give training services at very affordable

training rates with the quality guaranteed.

20 days session - P10,000

(If ever the dog failed to learn within the span of specified time,

training will continue without any additional fees or charges until the

dog has learned)

Board and Lodging

Out for an errand, or going out for a vacation with no one to

leave your pet at home, Pets with Benefits is here to solve your

problem. You can leave your household companion at our Boarding

house that is specified for your pets. You don’t have to worry along the

way to your trip, your pet is at the capable hands of our doggy day

care center.

Our pet boarding has a very comfortable place for your pet. Air

conditioned room. Separate crates for each pet with bed sheets and

pillow plus pet food and distilled water.

Day Boarding

(starts at 7am – 5pm)



Weekdays - P75/hr

P175 for 3 hrs.

Succeeding hrs. P25/hr

Weekends - P100/hr

P250 for 3 hrs.

Succeeding hrs. P40/hr

Overnight Boarding

(Starts at 5pm – 8am)

Small breed - P700

Large breed - P850

Whole day

Small breed - P1000/day

(0-20kg) P1700 for 2 days

Succeeding days add P600

P4550/week

Medium/Large breed

(21 kg. Up) - P1200/day

P2150 for 2 days

Succeeding days add P800

P6000/week



Veterinary Services

At Pets with Benefits, we give only the best veterinary services

and recommendations for the client’s beloved furball.

SERVICES PRICES

Consultation 400.0

0

Urinalysis 250.0

0

Direct Fecal Smear 250.0

0

Deworming 250.00 per 10kg body

weight

Vaccination

Rabies 300.0

0

5-in-1 (dogs/puppies) 3,250.00

Parvo Test 800.0

0

Distemper Test 750.0

0

Heartworm Test 700.0

0



Promotion Strategies

It is vital that the company has a strong promotional strategy and in

order for the business to achieve the desired numbers of clients,

several advertising and sales promotion techniques are laid and can be

used by the proponents:

Social Media

Social media websites such as Facebook, Twitter and Instagram offer a

great way to promote products and services in a stress-free

environment. They connect the company to potential customers, giving

them an idea of what our business is like and what we offer. Online

videos can be made to entice people to visit the center.

Business Flyers

One great way of promoting Pets with Benefits is thru flyers or leaflets

wherein a brief description of the product or service is stated as well as

the prices, contact numbers, location, and other basic information that

the potential client has to know.

Tarpaulin



For a very affordable price, the proponents can place a tarpaulin in

areas where the amount of people increases every minute—especially

outside subdivisions and in areas near malls.

Loyalty or Advantage Cards

The proponents appreciate the support of the clients and a better way

to reward these loyal customers is by giving them loyalty cards. The

goal of this strategy is to reward the client for a service that he

availed. For example, when a dog owner purchased five (5) grooming

services for his pet then he will get the next grooming service

absolutely free. Through this strategy, the company is promoting

customer appreciation, making them—and their pets—feel loved which

may lead them to referring the center to other people.



Industry Analysis

The dog day care center industry is increasing outside the

country. The pet service industry primarily consists of establishments

that offer grooming services, dog obedience training, healthcare

services and board and lodging. Also, it offers pet products and

accessories, medicines and other pet needs.

The reason why this industry is present is because of the

increasing rates of pet ownership. And now, with the number of pet

owners here in the Philippines, it is vital that establishments like this

emerge. Not only it will help these pet owners who are working for

longer hours, it will also give them the sense of not feeling guilty of

leaving their pet unattended in their home all day and not worrying if

their pet receives its need for attention and love.

Chapter-2 Market Study

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Transcript of Chapter-2 Market Study