Marketing Task 1

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Southern New Hampshire University *

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Marketing

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Feb 20, 2024

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1 C212 – Marketing Task 1 Melissa Morrison Western Governors University Jock Sommese November 17 th , 2023

2 A. Introduction Happy Tails Grooming is a highly sought after pet care company located in the San Antonio area. Current services offered consist of in-store grooming, boarding, dog walking, and daily daycare. All employees go through a rigorous background check to ensure we are employing the best candidates who will treat your pet with the upmost care. As with any company, the goal is to continue to grow and expand our services to reach a larger clientele base. We will explore new products or services that we hope to implement within our company in the United States and expand globally into Canada. A1. Two New Products or Services Happy Tails Grooming has decided to launch two new services to expand our company and better serve our clients. The first service we will be offering is ease of mobile pet grooming and the second is a live streaming service, Paw Cam. By offering our clients the option of mobile pet grooming, we will bring everything directly to you in our state-of-the-art grooming clinic. During the grooming session, you will be able to access a live streaming service that will allow you to check in on your pet and ease your mind of any worries. A1A. Three Methods With expansion comes the important due diligence of ensuring there is a need for our services and if there was an existing globally market within the grooming industry. Happy Tails used the following three methods to determine if the two new services would be successful in Canada; online surveys, focus groups, and direct observations. By utilizing online surveys, Happy Tails was able to gather crucial information from existing clients who had used one or more of our services. Clients were asked what services were

3 preferred and what services they felt the company was missing. Gathering this information allowed the company to learn what the clients needs and wants are. The second method would be hosting consumer focus groups. Pride and Ferrell found focus groups can provide companies with ideas for new products or be used for initial testing of different marketing strategies for existing products (2014). To obtain the best results, ten focus groups consisting of ten people from different geological areas, age groups, and backgrounds were selected to participate. During the focus groups, the new products were presented, and the group was asked to advise if they would use the services and if they found them beneficial. The last method chosen was direct observation. Happy Tails deployed employees in various regions of Canada to obtain information by speaking with competitors. This allowed Happy Tails to gain a better understanding of the demand, operations, and potential areas to set up a brick-and-mortar to deploy from. A1B. Competitive Advantage With the addition of mobile pet grooming services and Paw Cam, our customers will have the luxury of having their animals groomed right outside their home and the ability to ensure they are well-taken care of and safe. Taking your animal to a groomer can be overwhelming for both the owner and the pet. The advantage of a mobile grooming is it offers a stress-free experience and environment for animals who benefit from having a one-on-one grooming session. More and more people are opting to have animals compared to children and as we know, pets are treated like family members. The advantage of Paw Cam is it allows customers to check on their pets during their grooming session to ensure they are being well- taken care of.

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4 A1C. Two Inherent Risks The first and biggest risk to launching a mobile pet grooming service is transportation failures. Having a reliable vehicle is crucial to the success of this service. Relaying on a vehicle could lead to missed appointments and a loss of revenue. To mitigate this risk, all vehicles will have a pre-inspection at the start of a shift and a post-inspection at the end of the shift. If any issues are identified, they can be addressed swiftly to prevent disruption of services. The second risk involves live streaming via Paw Cam. As with any live streaming service, there is a risk for disruption by hackers. “In fact, 11% of Canadian CEOs believe their company will be either highly or extremely exposed to cyber risks over the next 12 months— 18% over the next 5 years. ( PWC Canadian Cyber Threat Intelligence Report, 2023)”. To mitigate this risk, Happy Tails will utilize a VPN service such as Cisco Connect when connecting to company issued cameras prior to live streaming. Clients will be instructed to use a secure internet connection when checking Paw Cam. A2. Customer Relationship Management Happy Tails Grooming has selected Salesforce as our customer relationship management (CRM) platform to monitor and track our services sales and inquires. Salesforce is a cloud-based platform that allows businesses the ability to track data analytics effectively and efficiently in real time. Salesforce Customer 360 is a suite of applications that can help with collecting lead to creating a strong loyalty base of clients. A2A. CRM Practices Salesforce has many capabilities to aid in the success of businesses such as forecasting management. Utilizing forecasting management, Happy Tails can track sales by the geographically location of clients or services requested. This CRM can project when we would

5 need to schedule mobile grooming visits for repeat clients. Having access to the data via Tableau reports will allow Happy Tails to visualize data trends and identify areas of opportunity. Salesforce also offers marketing capabilities via AI generated messages or emails to track when customers interact with the ad or message ( What us Salesforce , 2023). A3. Distribution Channel Happy Tails Grooming two new services will be distributed directly through the internet on our company’s website or calling our office. Customers can either call and schedule for the new service directly or can opt to schedule an appointment on the website. Once the customer has scheduled an appointment, one of our groomers will deploy to the designated location to perform the mobile grooming. A3A. Key Considerations Key considerations of entering a global market can range from tariffs, cultural differences, and subsidiary laws. Expanding into Canada’s market requires companies to register in each providence that you plan to conduct business in and may also result in periodic taxes ( Canada subsidiary: G-P , 2023). Another consideration to examine is the cultural differences of the selected providences within Canada. It is vital for businesses to understand the cultural differences of the global market they are entering. For example, some provinces within Canada have a variety of different languages that may negatively impact a business who is not aware of the preferred language. A3B. Global Supply Chain Global Supply Chains issues can negatively impact the production of services or halt a company altogether in the blink of an eye. Happy Tails Grooming relies heavily on a secure and stable internet connection and mobile grooming salons to provide services to our clients.

6 Disturbance to the internet from inclement weather or natural disaster could be catastrophic to our business. Customers may become frustrated and opt for a traditional brick-and-mortar grooming salon which would result in loss of revenue for Happy Tails. Loss of revenue would mean employee layoffs and eventually closure of the business. A4. Pricing Strategy Companies need to be strategic when deciding on pricing their products or services to be profitable but not overly priced. Happy Tails Grooming has decided to use bundle pricing by offering our two new services as a package deal for a lower cost. Clients will see several options on our website for individual products or services but will also see the bundled packaged for mobile grooming with Paw Cam access. An individual service of mobile grooming is available for $40.00, and Paw Cam is available for an additional $15.00. However, if the client would like to select the bundled package of an individual grooming session with Paw Cam, this would cost $50.00. A4A. Associated Costs The initial upfront cost associated with launching a mobile grooming service and a live streaming feed will be quite extensive. Happy Tails Grooming will purchase two mobile sprinter vehicles that will need to be equipped and fitted to function as a mobile salon. Additional expenses associated would be the electric tablets for live streaming, wireless internet, marketing, and training. Once established, Happy Tails Grooming hopes marketing expenses will decrease over time as clients will refer our company to friends and family.

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7 A4B. Consumer Acceptance After analyzing the feedback from market research, focus groups, and direct observation, Happy Tails Grooming has concluded the selling price for the two new services are reasonable and will be accepted by consumers. The focus group proved to people in Canada love their pets and were excited to hear mobile pet grooming would be an option with our company. “Canada is predicted to have 28.1 million pets in 2021, and that number is expected to grow to 28.5 million by 2025” ( Opportunities in Canada's pet care market , 2021). Happy Tails Grooming is offering pet grooming at a flat rate compared to competitors who price by the breed and size of animal. When reviewing the pricing of services clients were please we offered individual products or services and the bundled packaged for mobile grooming with Paw Cam access for a cheaper price. A4C. Competitor Prices Luxury Paw Spa is our main competitor in Canada who offers a similar service of mobile pet grooming. Luxury Paw Spa prices are their grooming based on the size and breed of the dog which can range from $25 to $75 per session whereas Happy Tails Grooming offers a flat rate of $40 per grooming session. The competitor will take a before and after photo of the animal to send to the customer at no additional cost compared to a $15 live steaming session offered by Happy Tails. A5. Promotional Strategy Successfully promoting your company is crucial to implement new services and grow your clientele. Just about everyone has access to technology whether that is via a cell phone or on a laptop and is a great way to reach an audience with marketing techniques. Happy Tails

8 Grooming will deploy a pull strategy to build awareness, create demand, and increase customer loyalty. A5A Media Channels Happy Tails Grooming will use television and radio as our two preferred mass media channels to promote our new services. The two social media channels that will be utilized are TikTok and Facebook. With the use of these four media channels, Happy Tails Grooming aims to reach a large audience and create awareness of the new products. A5I. Channel Justification The justification in choosing television as a mass media channel is most households have at least one television. Stoll (2023), published a report that shows the average daily time spent watching television in 2021 to 2022 averaged between 22.2 and 36.4 hours. Based on that data, Happy Tails Grooming in confident that running a thirty second commercial promoting our new services will attract more clients. Choosing radio advertising as the second mass media channel will reach the audience of people who commute to and from work. The social media platform TikTok has grow in popularity and offers viewers a live look at products or services by creating a video. People will be able to get a live look of the mobile grooming salon and see how well treated the animals are. During the video, employees can advertise the new products and answer any questions people may have. Happy Tails Grooming will use Facebook as the second social media channel. This platform is the leading social media platform in Canada with 78% or 30 million people using it (Bush, 2023). A5B. Sales Promotion As part of the sale promotion, Happy Tails Grooming will create a referral campaign. Customers who book and complete a grooming session and refers others who also book and

9 complete a grooming session will receive 10% off their next grooming session. The second sales promotion will be a raffle. New and existing clients will have their name entered into a raffle and once a month a winner will be selected to receive 50% off their next scheduled grooming session.

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10 References Bush, O. (2023, October 16). Facebook statistics in Canada for 2023. Made in CA. https://madeinca.ca/facebook-statistics-canada/ Canada subsidiary: G-P. G. (2023, August 19). https://www.globalization-partners.com/globalpedia/canada-employer-of-record/ subsidiary/? network=o&msclkid=9b44e3197d5d1d8b3b05864eb4ccd496&utm_source=bin g&utm_medium=cpc&utm_campaign=Search+%7C+US+- +HP+Subsidiary+Countries+%5Ben %5D&utm_term=expand+business+halifax+canada&utm_content=Subsidiary+ %7C+Canada Opportunities in Canada’s pet care market. Grow Trade Consulting, Inc. (2021, December 1). https://growtrade.ca/2021/12/01/opportunities-in-canadas-pet-care-market/ Pride, W. M., & Ferrell, O. C. (2014). Marketing . South-Western Cengage Learning. PWC Canadian Cyber Threat Intelligence Report . PwC. (2023, August 6). https://www.pwc.com/ca/en/media/release/pwc-canadian-cyber-threat-intelligence-report- 2023.html Stoll, J. (2023, September 7). Hours of TV watched per week by age in Canada 2022. Statista. https://www.statista.com/statistics/234311/weekly-time-spent-watching-tv-in-canada-by- age-group/

11 What is Salesforce?. Salesforce. (n.d.). https://www.salesforce.com/products/what-is-salesforce/? d=70130000000i7zF

Marketing Task 1

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