PuppyAgency.com Pitch Deck - Master Degree Capstone Project

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PuppyAgency.com James Zheng

Transcript of PuppyAgency.com Pitch Deck - Master Degree Capstone Project

PuppyAgency.comJames Zheng

AgendaMy idea in briefWhere is the opportunity?How to capture the opportunity?How will the plan work?How to evaluate the success?Appendix

PuppyAgency.com

My idea in brief

PuppyAgency.com

PuppyAgency.com is a trusted online platform to find and purchase healthy and premium quality puppiesUnique Brand Persona

Puppy Welfare Advocate180 Days Money Back Guarantee

Health of puppies assured Premium Quality Puppies

Prescreened Breeders and evaluated with proprietary rating system

PuppyAgency.com

Where is the opportunity?Customer Pain PointCurrent SolutionThe Unmet NeedCompetitive Landscape

Customer Pain Point: “I don’t trust the sellers online” – New Dog Owner, Katherine

The seller has pure breeds

The seller has enough information about the puppy

Other, please specify: _____

The seller is not selling puppies for monetary gains

The seller is selling at a reasonable price

The seller is trustworthy

0 5 10 15 20 25 30 35 40

2

3

5

8

12

38

What is the most important factor, if any, when you are choosing a seller to purchase a puppy from?

Based the results of first survey from 68 participants.

Katherine’s Trust Issue: Health of puppy Puppy mills

Large-scale commercial dog breeding facility Profit is given priority over the well-being of the

dogs As many as 10,000 in the United States

Genetic/Hereditary Diseases How do I know if the puppies’ pedigree is free of

genetic diseases Lack of dog ownership education

What should I do as a new dog owner? Will the seller assist me even after the purchase?

Source: American Society for the Prevention of Cruelty to Animals (ASPCA)

Choice of puppy: Health is the top priority

Whether the puppy is champion blooded

Other, please specify: _____

Whether the puppy is pure breed

Whether the puppy is available now

Price of the puppy

Health of the puppy

0 5 10 15 20 25 30 35

0

2

6

9

18

33

What is the most important factor, if any, when you are choosing a puppy for purchase?

Based the results of first survey from 68 participants.

Current Solution: Find people you can trust, such as Family Friend or neighbor

Resort only to trusted sources as reflected on the chart

Target to acquire non-shelter/rescue of market (68% of market) Family, friend or neighbor

(37%) Breeder (16%) Ad (9%) Purchased from pet store

(6%)

Source: Statista, Inc.

The Unmet Need: SAM of $6.6 Billion

TAM Potential dog owners in the US (38.1% of all

household) 45,256,000 households in 2014

68% acquired their dog through non-shelter/rescue sources 30,774,000 households At least 1 dog per household

Average price of all breeds of dog is $800 SAM

27% of participants willing to try website like puppy agency

$6.6 Billion

TAM: $24.6 Billion

SAM:$6.6 Billion

Source: Packaged Facts, based on Experian Marketing Services, Spring 2014 Simmons NHCS Adult Study 12-Month

& Based the results of second survey from 59 participants.

Competitive Landscape: Scattered marketplace

Least Trusted Most Trusted

Premium Quality

Ordinary Quality

Individual Breeders• Redteddypup.com• Vaccarellacorgis.com PuppyAgency.com

Local Players – Offline• City Pup Chelsea• Le Petite Puppy

Local Players – Online• Manhattan-puppies.com• Westchesterpuppies.com

National/International Players• Puppyfind.com• Mylittlepuppy.com• Adoptapet.com

American Kennel Club• Authority on dogs• Recent negative Press

How to capture the opportunity?Value PropositionUnique Selling Proposition (USP)Customer ProfileUser Acquisition

Value Proposition

For affluent adults aged 35 - 54 who are looking

to purchase a healthy and premium quality

puppy, we provide the most trusted solution

that helps you find, own and care for the new

member of your family.

PuppyAgency.com

USP: PuppyAgency.com = Advocate for puppy welfare Puppy welfare is our top priority

Strong stance against puppy mill Blog by the CEO

Education on puppy mill Though leadership on how to improve

the welfare of puppy and breeders Editorial calendar

Trust means doing our best for puppy welfare

Top 3 Features: Customer reviews, health insurance and search function

Availability of litterPhotos of puppies's parentsPedigree/bloodline of puppy

Videos of puppyPhotos of environment puppies growing up in

Photos of puppySearch function

Free health Insurance of puppyCustomer review of breeders

0 5 10 15 20 25 30 35 40 45 506

810

1515

1625

3443

Select up to 3 features that you would like to have on a online platform to find and purchase puppies

Based the results of first survey from 68 participants. PuppyAgency.com

Homepage: Their Welfare. Our Priority

180 days Money Back Guarantee If your newly

purchased dog is sick within the 180 days of your purchase, we will cover up the cost up to the purchase price of the puppy

Full terms & conditions in Appendix

Rating system to evaluate breeders: better visibility in internal search engine

Platinum, Gold, Silver and Bronze Level Higher level will

allow you to show up higher in the listing

Level depend on Health of puppies

sold Length of

membership Customer Reviews

Puppy University: Video Tutorial Course For Dog Owners Basic, intermediate

and advance courses Education on

responsible dog ownership

Information on how to take care of the puppy

Completing the course will give $10, $20, and $30 credit towards purchase depending on level

Customer Profile (Buyer): Adult 35-54, HHI $75,000-$100,000, with children Propensity to owna dog peaks between 35-54 Both Hispanic and non-Hispanic whites

Non-Hispanic whites account for 66% of adult population but represent 82% of dog owners

Hispanic accounted for 36% of the growth in dog ownership

Half of middle income households own dogs ($75,000-$100,000) BCC research also indicates that there is a significant

correlation between pet ownership and per-capita-income

Household with children are more likely to own a dog than those without

Source: Pet Population and Ownership Trends - Packaged Facts, Nov, 2014

Web Development (4 months)

• Jan - Apr 2017

Soft Launch (3 months)

• May - Jul 2017

Official Launch (5 months)

• Jul - Dec 2017

Growth (12 months)

• Jan - Dec 2018

Rollout Strategy Overview: 4 Phases

Personal Blog Attend Dog

Welfare Events

Puppy University Videos

Organize puppy welfare advocacy events

Customer Testimonial Feature Breeder visit and

interview

Brand Strategy

Customer And User Acquisition Strategy

SEO as building the website

BD Specialist to call Breeders

SEM Adwords & Bing

Search 13150 Clicks per

month

SEM Optimization Search Display 17500 Clicks

per month

Paid Social Boost Traffic to blogpost

Additional BD specialistPuppyAgency.com

Brand Strategy: Content & Welfare advocacy Trusted brand

Genuinely advocate for the welfare of the puppy

Target audience are middle-age, affluent Resonate with the core value of the brand

Puppy University A way of showing PuppyAgency invest on

the welfare of puppy Responsible leadership

As CEO will be the strongest proponent of dog welfare

Customer Acquisition Funnel

13140 Clicks @ $1.05 Per Click

Initial click to purchase rate

2%263

Customers

Per Month

Breeder Sign Up Funnel

6702 Calls per month

Qualify rate of 47%,

Conversion rate 2%

63 Breeders per month

Customer and User Acquisition Strategy: SEM, SEO, and Paid Social

Traffic to blog & social media page Assist in brand

strategy Encourage user

generated contents

$1000 in 2018 to generate additional 2000 visitors to blog

Source: Google Adwords Keyword Planner; Sample lists of Keywords and breeders in Appendix

PuppyAgency.com

Source: MarketingForSuccess.comLead qualification & conversion in Appendix

How will the plan work?TeamKey PartnersFinancial Highlights

Team Members: the Puppy Agents

CEO & Marketing – James Zheng

Website Manager 2 Web Developer (4-

month contract)

2 Business Development (BD) Specialist

VP of Sales & BD Account Manager Customer Service Specialist

4 Business Development (BD) Specialist

Video Production Specialist

Editorial Assistant Social Media

Manager

Web Development (4 months)

• Jan - Apr 2017

Soft Launch (3 months)

• May - Jul 2017

Official Launch (5 months)

• Jul - Dec 2017

Growth (12 months)

• Jan - Dec 2018

PuppyAgency.com

PuppyAgency.com

Key Partners: Breeders, Pet Supply Store, Vet & Legal consultant, Logistic List of recommended breeders included in Appendix

15 Breeders for 60 most popular breeds in US Puppy University surprise gift

Gift Voucher from PetSmart Veterinary consultant – Riverside Veterinary Group Legal – Legal Shield Logistic

Pick up Specialist Company – We Move Pets 3rd Party Transportation (chosen by breeders)

Source: American Kennel Club, The most popular dog breeds in America

PuppyAgency Service: 59% thinks $600 is acceptable

Based the results of second survey from 59 participants.

Yes59%

No41%

If the price of the puppy is $1500, do you think it is worth additional $600 for services described in the

above website? Advance Search

function 180 days money back

guarantee Prescreen premium

quality puppies Free Video Tutorials on

dog ownership

PuppyAgency.com

Revenue Model: 40% of mark up of seller’s intended price Buyer

Paid full amount at transaction 30 days to clear from the bank

Get guarantee for 6 months Reimbursement for any congenital defects, genetic diseases or health problem at birth

up to the purchase price of puppy Seller

Received 80% of amount (less of PuppyAgency’s profit) at transaction, 20% as deposit 30 days to clear from the bank

20% at the end of 6 months If any health issue occurred, deposit is forfeited

PuppyAgency.com

Key Assumptions Average price of dog from signed-up breeders – $1500 Actual selling price of dog - $2100 Breeder & puppy

Average size per litter – 7 Female gets pregnant once a year (twice a year is the standard)

Marketing Metrics During soft launch - Click to purchase rate 2%, average CPC $1.05 From official launch – Click to purchase rate 3%, average CPC $0.95 (10% lower)

Number of breeders signed up by 1 BD specialist per month 32 in Year 1 42 in Year 2 (10% increase in conversion rate)

Dog illness rate Typically at 5%

PuppyAgency.com

Scenario Analysis: Profit for dog illness rate at 11%,5% and 1%

Janua

ry

Februa

ryMarc

hApri

lMay Jun

e JulyAug

ust

Septe

mber

Octobe

r

Novembe

r

Decembe

r

Janua

ry

Februa

ryMarc

hApri

lMay Jun

e JulyAug

ust

Septe

mber

Octobe

r

Novembe

r

Decembe

r $(100,000.00)

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

Estimated Profit after tax for Worst, Base & Best Cases

Best (1%) Base (5%) Worst (11%)

Estim

ated

Pro

fit a

fter t

ax

Worst Case (11%) Full Refund on all ill

puppies included Positive Profit

($48,000 after tax) Positive Cash Flow

For the puppies: Up to 10% of profit will be donated to support welfare of puppy Use metrics to determine the final percentage to

be donated The higher the social engagement, the more the

donation Puppy University course views Social Media posts

Reposts/like on featured posts Blog post likes & comments

Funds use to help advocate for responsible breeding

PuppyAgency.com

Key Milestones

Web Development (4 months)

• Jan - Apr 2017

Soft Launch (3 months)

• May - Jul 2017

Official Launch (5 months)

• Jul - Dec 2017

Growth (12 months)

• Jan - Dec 2018

Events

KPIs

Website Completion Minimal Viable

Product Social media

accounts established

Website optimization

Puppy University Videos produced

Total Registered Breeders

372 654 1124 4780

Total Customers 0 789 3747 27628Total Visitors to Blog

500 1500 7500 55000

SEM optimization 3% conversion

rate 10% less CPC

Customer growth rate @ 15% per month

Videos on breeder visits & interviews

PuppyAgency.com

Support Agent Ian & Invest on PuppyAgency Today! PuppyAgency.com domain is available Total of $230,000 investment

$150,000 Initial Investment 4 month of initial web development Salary: $143,398

2 BD specialists, 2 Web developers, 1 website manager, 1 video production specialist Marketing (SEO): $1000 per month for consultation

$80,000 at 5th Month Given performance on or above expectation Cover COGS for payment to clear in 30 days

Investment term Preferred equity

PuppyAgency.com

Thank You!

Q & A PuppyAgency.com

Appendix

The Business Model CanvasFull terms & conditionsSuggested Keywords

PuppyAgency.com

Recommended BreedersPuppy Listing SnapshotRecommended List of Animal Welfare Events

Full Terms & Conditions Our Health Guarantee to You* Health Check Policy - Before your puppy is sent home to you, he or she has undergone an extensive

veterinary health check and breeders have followed our vaccination and deworming protocols in an effort to ensure your puppy arrives healthy and happy.

180 Days Health Guarantee - If, within one year of purchase, your puppy is found to have a congenital or hereditary condition which adversely affects your puppy's health, we will provide you with a replacement puppy of equivalent value.

Your Obligations – YOU MUST FULFILL THESE OBLIGATIONS, AS EXPLAINED HEREIN, OR THIS HEALTH GUARANTEE WILL TERMINATE AND BECOME NULL AND VOID*

You must have your puppy examined by a licensed veterinarian within two (2) business days of receipt of the puppy and, to ensure the health of your dog, you must visit the veterinarian on a regular basis ensuring your dog receives proper health checkups and timely inoculations.

Your puppy comes with up to date vaccinations. You therefore should not vaccinate the puppy within the first ten (10) days of receiving the puppy to avoid over vaccination.

If your dog's breed is prone to hip dysplasia, do not over-feed or over-exercise your dog and, regardless of breed, do not over-exercise your dog during his or her growth period.

If your dog is a female it must not be bred.

Full Terms & Conditions– Part 2 *Terms and Conditions of Health Guarantee 180 Days: If within six (6) months from the date of purchase from Seller, a dog is found and certified by two

(2) duly licensed doctors of veterinary medicine (DVMs) of Purchaser's choosing to have a congenital or hereditary condition which adversely affects the health of the dog, and if Seller is notified within five (5) business days of the first veterinarian's determination, the Seller will provide a replacement puppy of equivalent value. Seller reserves the right to obtain a third opinion of Seller's choosing to determine the congenital or hereditary condition. All laboratory verification must be done by a licensed DVM.

Veterinary Costs: Unless required by law, veterinary costs are not covered by Seller. Purchaser Acknowledgments: Purchaser is aware that owning a puppy means frequent visits to a licensed

DVM and understands that he/she will be responsible for all costs associated with all veterinarian visits, such as but not limited to any veterinarian costs associated with spaying or neutering, including undescended testes. Failure of the Purchaser to provide puppy with timely inoculations or regular veterinary care will void this Health Guarantee. Purchasers should follow a recommended nutritional program, including feeding only premium dog foods and vitamin supplements. No replacement or credit will be given if breeds that are known to be prone to hip dysplasia are overweight or over exercised. All dogs should not be over exercised during their growth period. Seller sells pets for companion purposes only. If your dog is bred, this Health Guarantee shall terminate and become null and void. Temperament issues are not covered under this Health Guarantee as they can be caused by a number of factors outside control of Seller or the breeder including, without limitation, lack of training, discipline or proper dog socialization. The owner is responsible for all transportation costs to and from the Seller.

Full Terms & Conditions– Part 3 In addition to all the conditions set forth in this agreement, the following additional conditions shall apply

and must be met or this Health Guarantee shall terminate and become null and void: The Purchaser must have the puppy examined by a licensed DVM within two (2) business days of receipt of the puppy, for

the puppy's New Puppy Examination (NPE). A copy of the examination (medical record) for the NPE must be sent to Puppy Agency by e-mail ([email protected]) or fax (123-456-7890) within four (4) days of receipt of the puppy. The Purchaser shall not vaccinate the puppy within the first ten (10) days of receiving the puppy. Failure of the Purchaser to comply with the provisions of this sub-part (i) shall void this Health Guarantee.

In case of severe knee, elbow or hip dysplasia, the radiograph should be permanently identified in the film emulsion with: registered name and/or number, name of the veterinarian or hospital making the film, date of radiograph taken. Furthermore, the radiograph and report must meet the standard submission requirements of the Orthopedic Foundation for Animals.

If the Purchaser declines any replacement puppy, then the Seller shall be under no further obligation and it shall be deemed that the Purchaser has released the Seller from any and all further claims and waived any rights to pursue any claims against the Seller.

This Health Guarantee shall terminate and become null and void if the Purchaser fails to comply with any term in this Agreement regarding the care, maintenance, or medical treatments or procedures that the Purchaser is responsible for providing to the puppy.

[English Bulldog Health Guarantee Limitations: English Bulldogs are only covered for a period of one (1) year from original purchase date. During this time, unless otherwise required by law, this Health Guarantee does not cover what in Bulldog breeds we consider normal: Cherry Eye, Entropion, “loose hips”, skin allergies, elongated soft palate, small trachea, stenotic nares.]

The value of the puppy for purposes of this Health Guarantee is limited to the Purchase Price of the puppy, and does not include taxes, shipping, health certificate and veterinarian costs, shipping crate or any additional costs or expenses incurred or asserted by the Purchaser. This Health Guarantee is non-transferable and is not valid for sales of any puppies delivered outside the United States and Canada.

Suggest Keyword List Sample

Ad group Keyword CurrencyAvg. Monthly Searches (exact match only)

Competition

Suggested bid

German Shepherd german shepherd USD 550000 0.16 1.52Puppy puppies USD 450000 0.08 1.32Shih Tzu shih tzu USD 301000 0.14 1.24Dog dog breeds USD 301000 0.07 0.32English Bulldog english bulldog USD 201000 0.11 0.71Puppies For Sale puppies for sale USD 201000 0.81 0.75Shepherd Puppies german shepherd puppies USD 165000 0.35 0.72Yorkie yorkie USD 165000 0.08 0.86Retriever Puppies golden retriever puppies USD 135000 0.24 0.73Husky Puppies husky puppies USD 110000 0.31 1.05Dogs For Sale dogs for sale USD 110000 0.72 0.8Yorkie teacup yorkie USD 90500 0.41 0.56Yorkie yorkie puppies USD 74000 0.58 0.82Puppy rottweiler puppies USD 74000 0.3 0.66Puppy boxer puppies USD 74000 0.26 0.78Bulldog Puppies french bulldog puppies USD 60500 0.56 0.61Yorkie yorkie poo USD 60500 0.13 0.77Puppy pug puppies USD 60500 0.28 0.88Puppy beagle puppies USD 60500 0.22 0.74Puppy great dane puppies USD 60500 0.2 0.7Bulldog Puppies english bulldog puppies USD 49500 0.55 0.59

Source: Google Adwords Keyword Planner

Recommended Sample List of BreedersName Phone Number Email AddressEllen Schusterson  518-758-1407 [email protected]

omP.O. Box 115Kinderhook, NY 12106

Margaret Daly 518-581-9251 [email protected] P.O. Box 925Saratoga Springs, NY 12866-0925

Karen Gunzel  201-310-4220 [email protected] 433 Dupont AveHopatcong, NJ 07843

Anne Bowes  (781) 934-0110 [email protected] 

Box 2141Duxbury, MA 02331-2141

Lisa Burns  508-362-2868 [email protected]  24 Sandy Neck RoadEast Sandwich, MA 02537-1208

Marie Cooner  (860) 455-9981 [email protected] 88 Federal Rd.Chaplin, CT 06235

Ellen Childs  860-379-0668 [email protected] 50 Bruning RoadNew Hartford, CT 06057

Puppy Listing Snapshot

Dog Breeders PetSmart Veterinary

consultant – Riverside Veterinary Group

Legal – Legal Shield Logistic

Dog transportation

Matching the buyer to right type of breed

Assist seller by create a go-to platform for listing

IT knowledge to build an easy-to-use website

Breeder sourcing and qualifying

Breeder relationship

For affluent adults aged 35 - 54 who are looking to purchase a healthy and high-quality puppy, we provide the most trusted solution that helps you find, own and care for the new member of your family.

Easy selection process

Free Education on dog ownership

Affluent household with children who want to become a dog owner

Dog owners who are looking to own another dog

2-sided platform Digital Channels

Adwords Display Paid Social

Future Magazine Pet Supply store

Salary 180 days money back guarantee Website development and maintenance Customer and User acquisition

Mark-up on sell price In the future, charges for additional services

Recommended List of Animal Welfare EventsEvent Name Date Address OrganizerNYS Animal Adocacy Day Tuesday, June 07, 2016 at

09:30 AMLegislative Office Building in Albany, NY

NYCLASS

Best Friends – Save them all National Conference

July 14-17 Salt Palace Convention CenterSalt Lake City, Utah

Friends Animal Society

Adoptapalooza Sunday, May 22, 2016Noon–5:00 p.m. (rain or shine!)

Koeppel Subaru42-01 Northern Boulevard, Long Island City, NY

Mayor's Alliance for NYC's Animals

Broadway Barks Saturday, July 11, 20153:00–6:30 p.m.

Shubert Alley, West of Broadway, between 44th and 45th Streets, between Broadway and 8th Avenue, Manhattan

Mayor's Alliance for NYC's Animals

The ASPCA Annual Humane Awards Luncheon

Thursday, November 17, 2016

Cipriani 42nd Street, NY ASPCA

2015 Young Friends Benefit October 15 2016 IAC headquarters, NY ASPCA

Breeders Sign-ups: Cold calling lead qualification & conversion Lead qualification -

Purebred only (47% of all US dogs according to American Humane Association Report)

Length of breeding > 3 years Demonstrate extensive knowledge of the breed's history, traits, temperament, and

conformation Specialized in only 1-2 breeds

AKC certified pedigree If shown concern about where the puppy will end up in Breed for dog show preferred Champion/Grand Champion bloodline preferred

Conversion – 2% Signup to list their litter on PuppyAgency.com