Brand Summary Market Size and Trends Competitive Review Cloud Star Marketing Strategy Market Research Analysis Media Plan Presentation Overview Executive Summary Brand Summary Cloud Star is a brand sensitive to dogs allergy needs in treats and food ID: 806443
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Slide1
Brand Positioning
Cloud Star Final Report
Slide2Brand Summary
Market Size and Trends
Competitive ReviewCloud Star Marketing Strategy
Market Research Analysis
Media Plan
Presentation Overview
Slide3Executive Summary
Brand Summary:
Cloud Star is a brand sensitive to dog's allergy needs in treats and food.
Performs very well with certain demographics; Cloud Star could either focus marketing on these groups or on ones they reach less.
Premium, all-natural dog treats, especially for pets with allergies.
Market Size & Trends:
The market is increasing in price and in dollar, however, volume sales is decreasing. This suggests that people aren't buying as the price of treats increases.
Pricing trends in the category increased by 4% in 2011 and are estimated to increase by 3% in 2012.
Competitive Review:
Direct competitors
also
focus on all-natural, allergen-sensitive dog food and treats (premium dog food makes up 40% of sales in dog food).
Competitors (Direct):
The Honest Kitchen
Zukes
Stella & Chewy's
Nutro
Sojo's
Blue Buffalo
Competitors (Indirect):
Greenies, Caesar, Pedigree
Purina
Hill's brand
Iams
Slide4Executive Summary Continued
Cloud Star Marketing Strategy:
Cloud Star can focus their marketing on ideas such as Made in the USA, all-natural ingredients, and food that is friendly to pets with allergies, since these are their strengths as a company.
Unique Selling Proposition including;
Made in the USA
All-Natural Ingredients
No Artificial Colors, Flavors, or Preservatives
Primary Business/Marketing Challenge: increase brand awareness.
Market Research Analysis:
Customers want a dog treat that is: Healthy, Nutritious, All Natural Product, Good for Teeth, U.S. Made, and Premium Quality. The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children.
Social Media is a new and upcoming market that needs to be acted on.
Online Ad's reach a small portion of respondents but is an easy market to get in to.
Media Plan:
Awareness is key to Cloud Star's success. Making customers aware of Cloud Star's health benefits for pets, as well as their generosity towards charity can strengthen brand awareness.
Executed through several avenues, including: in-store sampling events, merchandise displays, advertisements in magazines, social media activity, and Google Adwords.
Slide5Brand Summary
Slide6Business Description
Business/category competing in:
Dog treats (and extend to other pet food/care products).
Mission and business
philosophy:
To produce all-natural and wholesome products for dogs that are allergy-free, US made, and made from high quality ingredients
"For more than a decade, Cloud Star has been producing all natural and wholesome products for dogs, even those with allergies." -Cloud
Star
http://www.cloudstar.com/content/about-us.asp
Slide7Business Description
The product is:
Buddy BiscuitsWhy Buddy Biscuits?
Safe option for dogs with allergies
All-natural option for consumers looking for healthy choice for dogs
US made for those supporting production within the country
Company uses sales profits to give back to community.
Slide8Business Description
Current product positioning:
Premium, all-natural dog treats, especially for pets with allergies.
Product's competitive advantage:
All-natural
US made
Allergy free
Family owned
Charitable
Slide9Market Size and Trends
Slide10Market Size and Trends
Top
competitors in “the healthy segment”:The Honest Kitchen
Zuke's
Stella and Chewy's
Nutro
Sojo's
Blue Buffalo
Size of Dog Treat Market (Sales)
$2,378 million (2012, Euromonitor)
Slide11Market Size and Trends
Trends in the market:
Growing in Dollar at 0.6% (2011-2012)
Declining in Volume at (0.8%) (2011-2012)
(Euromonitor)
Note: Actual sales are increasing while volume declines, suggesting that dog treats are becoming more expensive, but less are being sold as price increases.
Slide12Market Size and Trends
Target consumer by demographics and product usage:
Female (72%)
Between 45-54 years old (24.9%)
White (86.6%)
Works in Professional Industry (16.9%)
Household Income between $75,000-$149,999 (34%)
Lives in Southern Region of the US (39.2%)
Currently Married (60.9
%)
Census Region: South (107/100 Index)
http://urereporter.mriplusonline.com/selectdemo.asp
Slide13Pricing Trends
Increased
by 4% in 2011Estimated 3% increase in 2012
Driven by strong growth of premium segment
http://www.portal.euromonitor.com.ezproxy.lib.calpoly.edu/Portal/Pages/Analysis/AnalysisPage.aspx
Slide14Cloud Star SWOT Analysis
StrengthsReaches consumers with special health needs for their pets (i.e. dogs with allergies to regular dog food).
Cloud Star integrates charity with its sales, so customers are actively aware of the brand's generosity towards animal welfare.Weaknesses
Low activity and presence on social networks.
Small share of overall dog treat market.
While a higher recognition for dog treat "Buddy Biscuits," there is lower recognition for brand name "Cloud Star."
Slide15Cloud Star SWOT Analysis
Opportunities
Grow presence with customers on social networks.
Target consumers through marketing who are current buyers, as well as target consumers who are not necessarily buyers yet.
Showcase their all-natural, organic products compared to their competitors (and the allergen-sensitive benefits).
Capitalize on current recalls of competitor's dog treats by picking up the consumers who switch from recalled brands (also US made).
Threats
Dog treats market expanding, prices are becoming competitive.
Competitors have a more active presence and interactions online with consumers (i.e. Nutro).
Slide16Competitive Review
Slide17Direct Competitors & Positioning
Competitors:
The Honest
Kitchen
Zuke's
Stella and
Chewy's
Nutro
Sojo
Blue Buffalo
Positioning (for all competitors):
Marketing healthy, natural, premium, gourmet, and speciality products with a focus on sustainable and eco-friendly methods that appeals to a specialty market
.
Premium Food accounts for 40% of Dog Food Sales (2010)
Slide18Indirect Competitors & Positioning
Competitors:
Greenies, Caesar, Pedigree
Mars, Inc.
Purina
Nestle
Hill's brands
Colgate Palmolive
Iams
Proctor and Gamble
Positioning (for all competitors):
Top four companies account
for 82% of sales
Marketing focuses on the
emotional aspect of having a
pet and the model is focused at the mass market
Slide19The Honest Kitchen Marketing
Dehydrated
Pet
Food
Start
with fresh raw whole foods and then dehydrate
Health
Benefits
Food
is
medicine
Helps
with overall health, digestion, skin and coat, prevents ear infections, body weight and
energy
Natural
vitamins, minerals and valuable phytonutrients are maintained
Ingredients and
Quality
100
% Human
grade
Made
in Human Food Facility, same food standards as human
food
No
Genetically modified foods
Slide20The Honest Kitchen Marketing
Slide21The Honest
Kitchen Vendor Pledge
Slide22Zuke’s
Marketing
Markets it's brand using a platform that consists of 6 specific beliefs:
Healthier Pets make Happier Pets
Nutrition fuels a healthy pet life
Staying Active
Adventure Together with your Dog
Showing Devotion
Be a devoted companion to your dog
Healing Others
Support Dog and Cancer Fund
Living Green
Pays employees to ride bikes or scooters to work
Power offices using 100% Green electricity
Boxes are 60% recycled
Getting Involved
Fundraising for pet shelters and animal rescue
Supports Meet the Breeds, a dog and cat show in New York
Slide23Stella and Chewy’s Marketing
“Pets deserve pure, simple, minimally processed food – the way nature intended”:
Only the Good Stuff
Stella & Chewy’s product is made with raw, naturally raised meat, poultry or fish, sourced from USDA-inspected facilities, without hormones or antibiotics
Nutrition as Nature Intended
Products are natural and raw
Stickler’s for Safety
Products have a seal that states that it went through the Secure-By-Nature food safety process
A raw diet is better for pets
Improves:
appetite and digestion
healthy skin and coat
Stamina
helps support a healthy immune system
Principles:
Slide24Nutro Marketing
Proven. Natural. Nutrition.
Dog Food that is tailored to a dog's life stage, breed size, and health condition
Premium natural ingredients with fortified vitamins and minerals
Claim that their product is taste preferred by 7-10 dogs
A small firm stool is guaranteed
Slide25Nutro Marketing
Pet Food Safety and Quality
Own facilities
Make over 600 quality checks daily
Inspected by FDA
Good Manufacturing Practices, Good Hygiene Practices and Hazard Analysis and Critical Control Points
Test every grain shipment for myotoxins
At least one complete shutdown for in-depth cleaning and sanitation per week
Slide26Sojo’s Marketing
Options:
grain free
gluten free
raw freeze-dried meat
just add water
add water and meat
Human grade ingredients, USDA meat, no genetically modified foods
Nutrient profiles for products
Frequently asked question section on website
Slide27Marketing of Blue Buffalo
Why BLUE? Because only BLUE is made with the unique combination of high-quality, natural ingredients plus exclusive
LifeSource Bits.Nutrition Philosophy
“
Love them like family. Feed them like family.”What’s
In Our Food and Why
What’s
Not In BLUE and
Why
LifeSource
Bits
LifeSource Bits are the small, dark kibbles mixed in with our BLUE dog and cat dry foods. They contain a precise blend of vitamins, minerals, and antioxidants selected by holistic veterinarians and animal nutritionists. To ensure that dogs and cats get the full benefit of these vital nutrients,
LifeSource
Bits are “cold-formed” to help preserve their potency.
Slide28Promotional Programs of "The Honest Kitchen
"
"
Customer Rewards Program
"
Earn
free coupons and rewards by sending in UPCs of any full size box of
dog food
"Animal Rescue Organizations
"
Approved
organizations may qualify for a 30%
discount
Breed
Rescues, Sanctuaries, Shelters and Foster Families associated with
registered
rescue organizations
Slide29Promotional Programs of "The Honest Kitchen
"
"
Allies Program
"
"
Allies" receive an Honest Kitchen discount on purchases, a free Honest Kitchen
T-shirt
, literature and access to product samples as well as a chance to
participate in
new product taste-tests
"Non-profit Donations
"
Provides
product samples, full-sized products and occasional monetary donations
to a
variety non-profit events
nationwide
Charity
Galas, Walks, Raffles, Auctions, Sponsorships, Goodie Bag items and
other community
outreach programs
Slide30Promotional Programs of "The Honest Kitchen
"
"
Honest Breeders Program
"
Work
with responsible breeders
They
don't allow their products to be sold in stores that sell puppies or
kittens
Work
with responsible breeders who work hard to place their puppies and kittens in loving homes
Qualified and approved breeders are set up with a special discount code for online dog food purchases
Slide31Promotional Programs of "The Honest Kitchen
"
"
Service and Working Dogs
"
Special
Program for the following service
dogs:
Search
& Rescue, FEMA, Bomb Squad, Active Military, Police K9,
Avalanche
,
Cadaver
and Registered Service
Dogs
Standard
Working Dogs discount of 20% off
MSRP
30
% off and occasional free products for active Working Dogs whose
handlers
allow the use of photos of their work and provide
endorsements
for promotional purposes
Slide32Promotional Programs of "The Honest Kitchen
"
"
Working with the Veterinarian Community
"
Free
Box of food, complimentary samples and literature and/or an Honest
Kitchen
hosted
'Lunch & Learn
'
Other
The
Honest Kitchen (thk)
Blog
Giving Back
"Charity
of the
Month“
Media Center
View
recent media clips about the company and their
products
Slide33Promotional Programs of "Zukes
"
Donates
a portion of annual profits to Dog and Cat Cancer
Fund
Sponsor
Events:
Zuke's
Fuel the Love
Tour
Dock
Dog World
Championship
Hero
Dog
Awards
Flyball
NAFA CANAM
Classic
Skyhoundz
World Canine Disc
Championship
Furry
Scurry
Slide34Promotional Programs of "Stella & Chewy's
"
"
Charitable Work
"
Friends
of Barrington Dog
Park
Animal
Rescue,
Inc.
Friends
of First
Run
The Mayor's Alliance for NYC’s Animals
Hope Veterinarian Clinic
Central Park Paws
Tri County Humane Society
Broadway Barks
Dog Habitat Inc.
Animal Haven
Slide35Promotional Programs of "Stella & Chewy's
"
"
In The Press
"
Huffington
Post: The Blog
The New Barker: Product Reviews
Forbes:
Leadership
Pet Business
The New York Times: Well
Pets
Dogster.com
Pawdogs
Pet Product News
And 16 others
Slide36Promotional Programs of "Nutro
"
"
My Nutro Rewards Program
"
Sign-up
, receive savings, pet-health tips and the latest news via
email
Tailored
pet information and
articles
News
about promotions and
events
Insights
into natural
nutrition
"
Sustainability & Community Initiatives
"
"
Room to Run" Dog Park Appreciation
Project
The
National Disaster Search Dog
Foundation
"Rescue
Bank" Pet Food
Donation
In-kind Donations
Slide37Promotional Programs of "Nutro
"
"
Commitment to Veterinary Community
"
Continued
research of pet nutrition to develop solutions and optimal nutrition
that Veterinarians can
recommend with confidence
"Free Continuing Education Webinar
"
"
Veterinary and Pet Owner Attitudes and Awareness Toward Natural Nutrition"
"Nutro Company Breeder Program
"
Breeders
receive special offers and
information
Slide38Promotional Programs of "Nutro
"
"
Nutro Pet Food Trainer Kit
"
Brochure
about the Nutro Family of
Products
$5-off
coupons for each pet
parent
$10-off
coupon for any Nutro Dry Dog
Food
News &
Press
A
Variety of Press Releases
Slide39Promotional Programs of "
Sojo’s"
"
Breeders who use
Sojo’s
"
List
of breeders who use
Sojo’s
products
"
Sojo’s
in the Media
"
Pet
Business Magazine, Pet Product News, Pet Elite Magazine, Animal Wellness Magazine, etc
.
Press
Releases & Product Photos
Slide40Promotional Programs of Blue Buffalo
Create your own BLUE Trading Card
“Card’s of the Month”
Compare your Brand to BLUE
BLUE TV
Mailing List Sign-Up
Slide41Media used
by “The Honest Kitchen
https://www.facebook.com/TheHonestKitchen
https://twitter.com/honestKitchen
http://pinterest.com/honestkitchen/
http://www.youtube.com/HonestKitchen
http://www.thehonestkitchen.com/thk-blog
Slide42Media used by “Zuke’s”
https://www.facebook.com/ZukesPets
https://twitter.com/ZukesPets/
http://pinterest.com/ZukesPets/
http://www.zukes.com/join-us/rss
http://www.youtube.com/user/ZukesPets
Slide43Media used by “Blue Buffalo”
https://www.facebook.com/BlueBuffaloAllNaturalPetFood
https://twitter.com/bluebuffalo
Slide44Media used by “Stella & Chewy’s”
http://www.facebook.com/stellaandchewys
https://twitter.com/stellachewys
Slide45Media used by “Nutro”
https://www.facebook.com/NutroProducts
https://twitter.com/nutro
http://www.youtube.com/user/thenutrocompany
Slide46Media used by “Sojo’s”
http://www.facebook.com/pages/Sojos/100210990057533
https://twitter.com/sojospetfood
http://www.youtube.com/user/sojos
https://plus.google.com/108636661741092643568#108636661741092643568/posts
Slide47Cloud Star Marketing Strategy
Slide48Marketing Strategy
Unique
Selling Proposition (USP
)
Made
in the
USA
All
Natural
Ingredients
No
Artificial Colors, Flavors, or
Preservatives
Free
of Corn, Yeast, Sugar, Salt &
Soy
Wheat
Free and Low Fat Options
Available
At
least 10% of net profits donated to non-profit organizations that benefit animals, women, children and the
environment
Primary Marketing/Business Challenge
Increase Brand/Product Awareness
Slide49Pricing Strategy
Original Natural Biscuits
(16 oz.)
$6.49 Soft & Chewy
(6 oz.)
$5.99
Slide50Competition Pricing Strategy
Zuke's Grain Free Jerkey
Bites Natural Dog Treats (6oz.) = $7.99
Blue Buffalo Health Bar Dog biscuits w/ chicken liver (16oz.) =
$9.71
Slide51Competition Pricing Strategy
The Honest Kitchen "Smooches" Low calorie, free-range chicken & cranberry natural dog treats 8 oz box =
$7.99Sojo's
grain free lamb & sweet potato dog treats (10 oz) =
$7.29
Slide52Distribution Plan
Products
can be found at pet food
stores nationwide
Select items can be found at pet food stores or supermarket pet food aisles
Also available online at
www.amazon.com
www.kvvet.com
www.cloudstar.com
www.petfooddirect.com
www.chewy.com
www.sitstay.com
www.valleyvet.com
www.dogtoys.com
www.wag.com
www.drugstore.com
Slide53Distribution Plan
By
inquiring on Cloudstar.com, individuals can get more info about becoming wholesalers if they obtain a resale certificate
Request Certificates
can be completed by consumers who are unable to find Cloudstar products in their market of choice and returned to manager to show interest in product line
Slide54Recommended Positioning
For pet owners who are looking for all natural pet food products,
Cloud Star's
Buddy Biscuits are organic, US made dog treats that are allergen free and contain nutritious and healthy ingredients for their dog(s).
Slide55Preliminary Marketing Objectives
Gain
Market Share
Increase
Brand Awareness
Increase
Sales
Slide56Advertising Copy Strategy
Who the advertising is directed
at
Dog owners looking for all-natural, healthy dog
treats
A promise of the basic benefit to the
consumers
Promise is provided in the ingredients description and nutrition facts on the
label
The reasons why the promise is believable and can be
delivered
The American Association of Feed Control Officials (AAFCO) regulates the ingredients
Slide57Differentiate From Competition
A
f
ter thorough research of Cloud Star and its competitors, Cloud Star’s pricing, marketing, and promotional strategies,as well as the product itself, are very similar to the competitor’s
This may be something that the company wants to address to make themselves stand out more
Slide58Key Consumer Attributes
to Focus On
Target
Customer
Roughly 2/3 consumer population is female
Age brackets of 21-30 & 46-55
HHI > $60,000/year
Has children
Owns 2 or less
dogs
Product Attributes Ranked Most
Important
Healthy
Nutritious
USA Made
Good For Teeth
All
Natural
Slide59Market Research Analysis
Slide60Research Methodology
Survey research obtained by conducting questionnaires and in-person interviews of dog owners in targeted central coast locations
San Luis ObispoMorro Bay
Arroyo Grande
Pismo BeachLos
Osos
183 Respondents in total survey
Slide61Demographics- Gender
Total Population
> 70% chance of buying
Slight variation between
Total
and
>70%
, but difference is negligible
Roughly 2/3 of the population that purchases treats is female
Slide62Demographics- Age
There is no difference between
Total Population
and >70%
Both Total Population and
>70%
are consistent with the fact that the two main age demographics are 21-30 and 51-60
Total Population
> 70% chance of buying
**41-45 was not included as one of the answer options.
Slide63Demographics- Household Income
There is no difference between the
Total Population and
>70%
Our consumer's HHI is over $60,000 per year
47.3% have HHI over $60,000
**Note: data taken from data filtered
>70% chance of buying
Slide64Demographics- Number of Dogs
There is no difference between
Total Population and >70%
Majority
has 1 dog
About 90% have 2 dogs or less
88.3% have 1-2 dogs
( >70% chance of
buying)
89.9% have 1-2 dogs
( Total Population)
Slide65Where does the consumer shop for dog treats?
Top 4 Locations
PetSmart or Petco
Grocery store
Local pet
store
Large retail
Store (
e.g. Costco)
People who are more likely to try Buddy Biscuits are more likely to buy at large pet store chains and local pet stores
>70% chance of
buying
Total
Population
Slide66Target Consumer Demographics:
>70% chance of buying
The target consumer...
is female (66.7%)
are in the age brackets 21-30 (32.4%) or
46-55
(29.5%)
has 1-2 dogs (88.3%)
has a HHI of over $60,000 per year (47.3%)
has children (58.3%)
Children are ages 16-25 (55.2%)
**Note: All percentages were taken from data filtered >70% chance of buying
Slide67Types of Dog Treats Purchased
Type of
Treat
% of Respondents
Cookie/Biscuit treats
58.2%
Chewy treats
36.7%
Jerky Treats
38.0%
Training treats
18.4%
Treats with specific health benefits (i.e. dental care, eye health, coat health)
29.1%
All Natural treats
27.8%
Home made or home cooked treats
14.6%
Other (please specify)
4.4%
Other types of treats:
Cow Hooves
Rawhide Bones
Rope Toy Chews
Peanuts
Chew Bones
Dehydrated Meat
Bones
Respondents were asked what types of dog treats they purchase for their dog.
Type of treat most purchased = Cookie/Biscuit Treats (58.2%)
**Data is from total sample
Slide68Features Customers Look For When Buying Dog Treats (Top 8)
Top Features of Dog Treats:
Healthy, Nutritious
,
Good for Teeth, US MadeThose who have heard of Buddy Biscuits rate the attributes higher
Attribute
Score
Attribute
Score
Healthy
95.2
Healthy
90.6
Nutritious
92.2
Nutritious
88.0
US Made
87.8
Good for Teeth
80.4
Good For Teeth
87.4
Premium Quality
79.8
All Natural
87.0
All Natural
79.4
Premium Quality
84.8
US Made
79.0
Organic
82.8
Inexpensive
76.0
No Artificial Preservatives
82
Organic
75
Heard of Buddy Biscuits
Total Sample
Slide69Attribute
Score
AttributeScore
Vitamin Fortified
78.8
Vitamin Fortified
74.4
Company that gives back to the community
78
No Artificial Preservatives
73.6
Grain Free
72.2
Company that gives back to the community
70
Helps Control Weight
70.6
Helps control weight
67.6
Inexpensive
69.6
Grain Free
65.2
Recommended by a Pet Store
66
Recommended by Pet Store
62.2
Breed Specific Treats
62
Breed Specific Treats
57.6
Fun Label
59.6
Fun Label
55
Heard of Buddy Biscuits
Total Sample
Features Customers Look For When Buying Dog Treats (Bottom 8
)
Those who have heard of Buddy Biscuits rank
Giving back to the community
higher than those who have not
Slide70Feature
Mean
FeatureMean
All Natural
86.2
Price
79.2
Donates to Animal Shelters
83.4
All Natural
78.0
Price
79.6
Donates to Animal Shelters
73.0
Donates to Environmental Groups
73.2
Donates to Environmental Groups
64.4
Donates to Women and Children
70.8
Donates to Women and Children
64.0
Important
Attributes in the Decision to Buy Buddy
Biscuits
Total Sample
>70% Will Purchase Buddy Biscuits
Likely users of Buddy Biscuits are rate donates to animal shelters higher than non-users
Slide71Product Attribute Recommendations
Customers
want a dog treat that is Healthy, Nutritious, All Natural Product, Good for Teeth, US Made, and Premium
Quality
The qualities that people want to see in Buddy Biscuits are
All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and
Children
The front of the box should clearly say that Buddy Biscuits has these attributes
.
The box should give a story on side panel that talks about how they donate to animal shelters and made in US.
Slide72Price per Package
$ Spent Per Package
% of
Respondents
$0-5
36.1%
$
6-10
44.9%
$11-15
12.2%
$16-20
4.8%
>$20
2%
Respondents were asked how much they typically spend on a package of dog treats.
A majority of the respondents (81%) said that they spend $10 or less on each package of dog treats they purchase
**Data is from total sample
Slide73Amount Spent on Dog Treats Per Month
$ Spent Per Month
% of
Respondents
$0-5
18.5%
$
6-10
19.1%
$11-15
14%
$16-20
21.7%
$21-25
5.1%
$26-30
8.9%
$31-40
5.7%
$41-50
3.2%
>$50
3.8%
Respondents were asked about how much they typically spend total on dog treats per month
A majority of the respondents (73.3%) pay $20 or less on dog treats per month
**Data is from total sample
Slide74Amount of Dog Treats Purchased in a 3 Month Period
Packages
Purchased
% of Respondents
0 - 3 packages
48.6%
4 - 6 packages
32.9%
7 - 10 packages
12.9%
>10 packages
5.6%
Respondents were asked approximately how many packages of dog treats they have purchased within the last 3 months
A majority of the respondents (81.5%) have purchased 6 or less packages of dog treats in the last 3 months
**Data is from total sample
Slide75Brand Awareness
Top
Heard of Brand =
Iams
Top Purchased Brand =
Milk
Bone
Cloud Star's brand is significantly less known than any major dog treat brand.
Buddy Biscuits has more awareness among users and non-users than Cloud Star
Brands
% People who have heard of the brand
% People who have purchased the brand
Iams
90.4%
26.2%
Pedigree
86.6%
29.8%
Milk Bone
85.4%
38.3%
Purina
82.8%
27.7%
Kirkland Brand
81.5%
29.8%
Buddy Biscuits
32.5%
12.1%
Cloud Star
20.4%
7.8%
Top 5 Brands Compared to Buddy Biscuits and CloudStar
Slide76Brand Awareness
Buddy Biscuits is heard of similarly to the mid 5
brands
Buddy Biscuits has a greater purchasing intent by respondents compared to Canidae and
Zuke's
CloudStar still falls below average in both categories, heard of and purchased
Brands
% People who have heard of the brand
% People who have purchased the brand
Natural Balance
57.3%
25.5%
Nature Select
51.6%
14.9%
Nutro
47.1%
14.9%
Canidae
30.6%
6.4%
Zuke's
26.8%
9.9%
Buddy Biscuits
32.5%
12.1%
CloudStar
20.4%
7.8%
Mid 5 Brands Compared to Buddy Biscuits and CloudStar
Slide77Brand Awareness
Other brands respondents have purchased:
Vitabones
Trader Joe's brand
Blue Buffalo
Science Diet
Newman's
Bully Sticks
Dogswell
Greenies
Stella and Chewy's
Wellness
Pure Bites
Brands
% People who have heard of the brand
% People who have purchased the brand
Sojos
22.9%
5.7%
The Honest Kitchen
21.0%
----
Pinnacle
18.5%
3.5%
Other
1.9%
11.3%
Buddy Biscuits
32.5%
12.1%
Cloud Star
20.4%
7.8%
Bottom 4 Brands Compared to Buddy Biscuits and CloudStar
*
The Honest Kitchen was not included in the questionnaire for purchase intent
Slide78How are people hearing about their dog treat brand? (Top 5)
There is no difference between where people find out about treats
In-Store Ad's are the best way to reach new customers of Buddy Biscuits
Source
% of Respondents
Source
% of Respondents
In-Store Ad
45.6
Friends
43.7
Friends
43.9
Family
42.3
Family
42.1
In-Store Ad
37.3
Vet
22.8
Commercial
28.9
Promotions In-Store
21.1
Vet
19.0
>70% Likelihood to Purchase Buddy Biscuits
Total Sample
Slide79Source
% Respondents
Source% Respondents
Commercial
17.5
Promotional Material from pet store, like Petco
14.8
Online Ad
15.8
Online Ad
10.6
Social Media
10.5
Social Media (facebook, pinterest or Yelp)
4.9
Emails from the treat company
3.5
Emails from the treat company
3.5
Billboard
1.8
Billboard
0.7
Total Sample
>70%
Likelihood to
Purchase Buddy Biscuits
How are people hearing about their dog treat brand? (Bottom 5)
Likely users of Buddy Biscuits are more likely to find out about treats via Social Media than non-users
Online Ad's reach a small portion of respondents but is an easy market to get in to.
Slide80Purchasing
Intent
Likelihood of Purchasing BB in the Next Year
Total Respondents
Certainly Will Buy (99 chances in 100)
12.0%
Almost Sure Will Buy (90 chances in 100)
7.0%
Very Probable Will Buy (80 chances in 100)
8.9%
Probably Will Buy (70 chances in 100)
9.5%
Good Possibility (60 chances in 100)
12.0%
Fairly Good Possibility (50 chances in 100)
12.0%
Fair Possibility Will Buy (40 chances in 100)
5.7%
Some Possibility (30 chances in 100)
8.2%
Slight possibility (20 chances in 100)
10.1%
Very Slight Possibility (10 chances in 100)
5.7%
No Chance You Will Buy (0 chances in 100)
8.9%
>Good Chance of Purchasing BB
37.4%
*After showing the Buddy Biscuits concept and competitive board
Of the total respondents
About 37% of all respondents shown the Buddy Biscuits concept would have a good chance of purchasing the product.
Slide81Purchasing Intent
Of those who ranked the dog treat feature “gives back to the community” as Excellent/Very Good Quality
These respondents were 14% more likely to purchase Buddy Biscuits as compared to all respondents
Likelihood of Purchasing BB in the Next Year
Gives Back to Community
Certainly Will Buy (99 chances in 100)
14.5%
Almost Sure Will Buy (90 chances in 100)
13.2%
Very Probable Will Buy (80 chances in 100)
14.5%
Probably Will Buy (70 chances in 100)
9.2%
Good Possibility (60 chances in 100)
7.9%
Fairly Good Possibility (50 chances in 100)
13.2%
Fair Possibility Will Buy (40 chances in 100)
3.9%
Some Possibility (30 chances in 100)
3.9%
Slight possibility (20 chances in 100)
7.9%
Very Slight Possibility (10 chances in 100)
5.3%
No Chance You Will Buy (0 chances in 100)
6.6%
>Good Chance of Purchasing BB
51.4%
*After showing the Buddy Biscuits concept and competitive board
Slide82Purchasing Intent
Of those who responded that they have heard of Buddy Biscuits
If the consumer is aware of Buddy Biscuits, he/she is nearly twice as likely to purchase
59.7% of people who have heard of Buddy Biscuits have a good chance of purchasing
Likelihood of Purchasing BB in the Next Year
Heard of Buddy Biscuits
Certainly Will Buy (99 chances in 100)
25.0%
Almost Sure Will Buy (90 chances in 100)
13.5%
Very Probable Will Buy (80 chances in 100)
7.7%
Probably Will Buy (70 chances in 100)
13.5%
Good Possibility (60 chances in 100)
3.8%
Fairly Good Possibility (50 chances in 100)
3.8%
Fair Possibility Will Buy (40 chances in 100)
5.8%
Some Possibility (30 chances in 100)
3.8%
Slight possibility (20 chances in 100)
9.6%
Very Slight Possibility (10 chances in 100)
5.8%
No Chance You Will Buy (0 chances in 100)
7.7%
>Good Chance of Purchasing BB
59.7%
*After showing the Buddy Biscuits concept and competitive board
Slide83Price of Buddy Biscuits
Price Level
% of Respondents
Too High
27.4%
Just Right
70.7%
Too Low
1.9%
Respondents were shown the Buddy Biscuit concept board with product size and pricing, and also the competitor’s products with their sizes and pricing.
A majority of the respondents (70.7%) found that Buddy Biscuits is priced just right
**Data is from total sample
Slide84Implications for Brand Positioning
Among those likely to try, the charitable
component
is important to them
Advertise
about giving back to community on:
Packaging
Social media sites
In-Store
Ads
Giving
Back to Charity is Important
Respondent Type
Good chance of buying BB in the next year
% of Total Respondents that agree the trait is good
Total Respondents
37.4%
--------
Giving Back Respondents
51.4%
24.4%
Heard of BB Respondents
59.7%
19.3%
Slide85Perception of
the Quality
of Dog Treats
Cloud Star ranked the highest quality among those who have heard of Buddy Biscuits
Brand awareness is vital
Brands
Mean Rating (Heard of BB)
Mean Rating (Total Sample)
Cloud Star
78
69.2
Nutro
76
70.6
Natural Balance
75.6
74.8
Nature Select
75.6
73.2
Zuke's
72
66.8
Canidae
70.8
67.2
Iams
68
71
Pinnacle
67.6
64.2
Milkbone
65.8
70.4
Kirkland Brand
64
67.6
Pedigree
63.8
69.8
Purina
62
68.4
Slide86Media Plan
Slide87Media Plan
The target customer for Buddy Biscuits is a female between the ages of 46 and 55 with a HHI of over 60,000 per year. This person also highly values a company that donates to non-profit organizations.
Areas to place media:
In-Store
Advertisements
Specialty Magazines
Public Relations
Non-profit organization websites for animal shelters, environmental groups, and groups that benefit women and children
Google AdWords
Social media websites
"
In
their
use of technology, the youngest Baby Boomers (ages 45-55) are nearly as likely to be online (and to have a home broadband connection) as younger adults
"
http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/
Slide88In Store Advertisements
Awareness is key for Cloud Star's success
Research shows that brand awareness leads to high brand rating for Cloud Star
Get the brand name out there
Recommendations
In-store samples
"Costco Approach" - give those with dogs a free sample in retail locations
Displays
"Stand-up displays attract over 60% more business than product presented on the shelf"
Slide89Print Advertisements
Slide90http://www.media-brokers.com/Magazine/RateCardCMG/6856/21/Akc-family-dog.aspx
National Magazine Cost
Slide91Public Relations
Cloud Star PR
Philanthropic
Healthy
Made in US
Recommendations
Seek
free advertising
on non-profit organization's websites
Cloud Star donates to organization; organization returns the favor via free advertising on its site
Special Events
“Cloud
Star
5
K-9”
A 5k for dogs and their owners
Proceeds benefit local animal shelters
Creates brand awareness
Slide92Benefits (taken from website)
Effective
Advertising on the most used search engine worldwide and on our network is an effective way to drive
more
people to your website and attract more customers.
Transparent
With AdWords you always know what you get for your money. There are many tools and reports to tell you what is working and how you could further improve your campaign.
Flexible
You can fine-tune virtually all aspects of your campaign at any time. For example, you can change your budget, ad texts, keywords,
geographic
targeting, the days and times your ads will appear, and many more settings.
Slide93Google AdWords Budgeting
Pay only for results
With AdWords you're charged only if someone clicks on your ad and lands on your website, not when your ad is displayed. In other words, you only pay when your advertising works.
Start with any budget
How much you invest is up to you – there are no minimum budget requirements and no minimum terms.
For example, you can start with a daily budget of five dollars and a maximum cost of ten cents for each click on your ad. And, you can change those settings online at any time.
Suggested price $1,000.00 = 100,000 clicks
http://www.youtube.com/watch?v=tx2L6EGa9DY -
How to use AdWords
Slide94Social Media
Facebook
The Honest Kitchen has over 150,000 likes
Over the last 6 weeks, The Honest Kitchen gained over 12,000 new FB likes and consistently had 2,500-5,000 people talking about their brand
Cloud Star gained only about 200 new likes in the same time period
Cloud Star had 100-300 people talking about their brand
Nutro, THK, and Zuke's all had over 1,000 people talking about their brand through interactions on the page (interactive posts, pictures, shared links via related websites, etc.)
Twitter
Companies like The Honest Kitchen which have over 5000 followers have multiple tweets every day.
Cloud Star Tweets only once a day or every other day
THK and Nutro ask questions to their followers to keep them engaged
Cloud Star is following 11 while THK follows nearly 1500 pages.
Slide95Social Media
YouTube
Cloud Star's presence on YouTube
is very small
It may not be the best platform to market a dog food company, but there is still potential there
(See recommendations on next slides)
Pinterest
Amongst Cloud Star and its competitors, Zuke's is the only brand with a Pinterest page
However, the search words "Buddy Biscuits" and "Cloud Star" show many Pins from different pet-related Boards
Slide96Recommendations for FB and Twitter
Facebook
Utilize Facebook to help increase brand awareness by inviting customers to post a photo on their FB page of their dog eating a Buddy Biscuit treat
E
x) Every
photo posted, Cloud Star will pledge to donate a box of its treats to an animal shelter
Free coupon offered for "Liking" page (BOGO, $1 off, etc.)
See Honest Kitchen "Try a free sample" offer
Twitter
Tweet at least three times a day
Ask followers questions. Ex: Tweet pictures of your dog? What year did Cloud Star begin? Do you have a dog that looks like another species, if so post a pic.
Follow more pages and tag them in posts. "@"
Slide97Recommendations for Youtube and Pinterest
Youtube- create videos people want to watch
Potential Videos
"How It's Made- Buddy Biscuits"
Industry Expert talking about benefits of Cloud Star products
Philanthropic Video- where donations go and who they benefit
Pinterest
Create a Pinterest page to gain more brand awareness
Boards with:
Funny dog pictures
Customers using product
Philanthropic endeavors
Slide98Questions?