The History Of Aussie Pet Mobile Marketing Essay

The History Of Aussie Pet Mobile Marketing Essay Aussie Pet Mobile offers driving come to home grooming services for pets, providing the expert loving pet care that the same as the owners would provide. Our target customers are toward the pets owners especially for those who are singles with one or more pets or both working full time parents with poor time availability. Aussie Pet Mobile supplies different kinds of pet grooming services for releasing people from dull housework in washing pets. The pet care industry has seen growing tendency over the last ten years throughout Australia. Although the pets owners are below in the average of national, the density of pets is still visible in Canberra. Based on the target market segmentations, the analysis indicates that the pets owners are willing to spent money in the pets care services as they treated their pets as family members. The environment in mobile pet grooming industry is being regulated strictly by environmental and legal factors. While there are currently 11 companies providing mobile pet grooming services in ACT, only three of them are oligopoly to provide expert services. Compared with other major competitors, providing expert services in affordable price is the promise of Aussie Pet Mobile. To better compete in the fierce environment, the situation about SWOT and competitors analysis will be given by identifying the position of APM business. The recommendation based on 4P analysis suggests plan to assist APM in obtaining brand equity and market share. Then the recommended survival chain plan will be provided to assist the APM business in customer profitability, employee productivity, and internal and leadership audit. 1. Introduction In nowadays, the trend in raising pets has significant increased due to the rapid changes in peoples lifestyle. The subdivision in pet care industry has become more and more important according to the tendency. This is a decartelisation industry that derived value to pet owners to obtain market share, not only for the direct consumption such as foods, treats and accessories, but also related with pet care services like grooming, training and dog hotel and so on. To distinguish with traditional pets grooming salon, a new style which through appointment and coming direct to the home services has been launched. It is undeniable that with the changing in the technology, globalisation has provided various opportunities for this emerging industry. However, the potential problems will be exposed in the practice. The marketing report will evaluate on the environmental and situational impacts, and target market will be pointed out. Based on those analyses, the recommendation for the Aussie Pe t Mobile will be illustrated in terms of product, price, promotion and place. 2. Objectives The objectives are settling out based on the corporate, and marketing factors. For corporate perspectives, Aussie Pet Mobile has commenced on the successful marketing strategy and participates in the leadership in the industry. It aims in provide great value to all customers, and developing uniqueness and differentiate services to the public. On the other hand, for the perspective of marketing strategy, APM has positioned four goals in different aspects to gain competitive advantages. To recover into financial recession, it aims to achieve mutual practice on cost-efficient and differentiation strategy and becoming the best choice of Canberra within 2 years. To break even to cover all costs requires more profits that including vehicle costs, wages, direct materials and overhead costs. To encourage employee productivity and control costs in the manner of workers in obtaining business production efficiency in the social aspects. On the personal perspective, the managing on the customers relationships and brand image can support the process in generating revenue. Lastly, in maximising the using eco-friendly and nature materials and water saving will lead to implement sustainable development for the business. 3. Company Description Aussie Pet Mobile was formed in 1996 in Australia, and further expanded into global headquarters in the America in 1999 (Aussie Pet Mobile 2013). It regarded as the top brand in driving to home pet grooming services in the worldwide. The later on in introducing the franchise operations have become the most important strategy in developing their business scale. And the franchise chain is growing rapidly and currently faces totally over 400 territories serviced everyday through eight countries. They are continuously reinvented themselves to the evolution of pet grooming services to achieve customers satisfaction. They are commitment to the quality, flexible and loving care services to pets, and also to provide convenient to pets owners. 4. Environment Analysis 4.1 Economic environment According to Australian Bureau of Statistics (2012), the unemployment rate of ACT was 3.4%, and down from 4% in the previous year whereas lower than 5.2% of the national rate in 2012. Moreover, the average weekly earnings of Canberra are steadily increased up to 1,554.5 while the average rate in this state was 1,333.5 in the last year (Australian Bureau of Statistics 2012). Those data would indicate that the people in ACT have surplus on it budget to afford pet services. In the Australia, people are most enjoyed in spending substantial amount of money on pet care as they treated pets like their family members. Since there is a stronger signal in Canberra economy, the survival possibility for new business like pet service will be feasible. Referred to the evaluation of Headey (cited in Australian Companion Animal Council n.d.), the annual contribution of pet industry is around $4.74 Billion which becomes one of the largest industries in Australia. Overall, the mobile pet grooming indu stry is a fast growing industry that has great opportunity to expand in its best interest. Social Environment In many ways, pets have been treated more like love substitutes where children are undertaken in modern industrial society. Particularly, pets could be trained in a kindly way which is easier to love and helping owners to become sociality and more adequate tailored new lifestyle (Nast 2006). From physical activity perspective, pets become a kind of social support when they are owners exercising. A recent study reported that 31% of women who has no pets or job were less likely walk for exercising their bodies (Bell et.al. cited in Cutt 2006). The regular exercise is now playing a key role in a health life and prevention from illness. In targeting of Middle age adults, a national campaign in Australia is aimed to achieve small walking exercise everyday in order to make people involving in social marketing and social cognitive (Booth et.al. 2011). Indeed, walking with dogs could bring more attention, and can encourage communications between people. As advocates of making pets included i n the factors of social capital and community, pet owners will engage in green living by taking care their pets. Environmental analysis For the mobile pet grooming business, the most potential problem could be polluting. According to the Environment Protection Act 1997 and the Environment Protection Regulation 2005, this kind of business must strict complying with the regulation to avoid potential liability or fines (Environment and Sustainable Development 2012). The operator should consider how it might impact on the environment, such as water, land or air. Also, the noise pollution when you are working should be taken into account. For the water using to wash pets, there is limited amount to use, and avoid wastewater to flow into stormwater system. Ensure no spilling of chemicals or detergents to pollute stormwater, and the maintenance of machines should be regularly checked. The rubbish such as fur, nails and other wastes should be collected into general garbage and disposed it to participate in the environmentally friendly action everywhere you working. 4.4 Technological environment The technological environment is the most important part to support mobile pets grooming service. In relation with the working, the portable pets washing area as opposed to the fixed location should have enough space and well equipped to assist grooming service. Furthermore, to better competitive in this industry area, an improvement on water saving or recycling technology should be designed to help this business to survival, such as speciality shower heads or changing washing times. Also, the development of internet in head office must be appropriate built for the purpose of database design and customers feedback receiving. The benefits are easy to track employees work, build customers profile, and response to claims, which might further assist in creating brand image. As for a mobile pet grooming business, the calling system of direct interaction between customers should be well built as the core technology of company. 4.5 Legal environment The responsibility of pets grooming services is set up by Australian Welfare Code of Practice, and such standards in aim of providing protections during pets mobile services. Animal Welfare Act 1992, Animal Welfare Regulation 2001, Domestic Animals Act 2000, Domestic Animals Regulation 2001, and Animal Disease Act 2005 are aim to enforce these legislation in Canberra (Urban Policy Analysts and Town Planners 2006). These regulations have been put in place to monitor from the time of transferring custody rights of pets, and until it return to the pets owner. Also, there is the need of registration of vehicle and trailer for the vehicle that using in mobile pets grooming. From protection environment view, as I concluded in above, there is an offence to pollute stormwater system, and the Environment Protection Authority will manage the noise pollution while they received complaints (Environment and Sustainable Development 2012). Political environment The Australia Government do have policies to protect small business development. It aims in providing fair competitive environment for new growing business, and the regulations will guide small business in respect of their businesses operating, such as workplace health and safety, workplace relations, financial and other professional services and so on (COSBOA 2013). 5. Situation Analysis 5. 1 SWOT Analysis 5.1.1 S-Strengths Mobile pet grooming services can offer great value to pet owners. Firstly, customers can obtain exclusive time value from Aussie Pet Mobile. Since it is directly come to the home services which conveniently benefit for customers saving time. Secondly, as the services can come to the home of customers, it offers place value to them. Compared with the other retail stores, the advantage of flexible place can provides customers to release from shuttling between two places. Thirdly, customers can gain form value through services including grooming, bathing, nail-clipping, ear and dental care and so on. Moreover, because of it is an Australian wide franchise store, the quality of product or services has a warranty to customers and the company has capacity to provide superior services. Lastly, they have follow-up customer services which enable enquiry and feedback to reduce cognitive dissonance ( ). 5.1.2 W-Weaknesses There are many factors which might exposes problems in practice. Many people, against pet mobile services, are willing to wash their own pets to save money. To some extent, there is a majority of customers doing by themselves unless the need of trimming. The weakness relates with facilities and profession skills also harmful to business success. As pet mobile services need to rely heavily on vehicle use, this will lead on extra cost like petro, vehicle and registration and insurance. The possibility will be created in enhancing the price of services as those values adding cost happened. Besides, the requirement of qualifications and training on staff is essential to survival in the pet grooming industry. As the process directly contacts with pets, the knowledge of breed, behaviour, and health issues are required by the groomer. 5.1.3 O-Opportunities For Aussie Pet Mobile, there are some factors that can be improved to strengthen its services. As there is a large amount of pet owners in Canberra, the trend for pet grooming services will quickly grow. Especially for dog, it is the most adequate pets to washing and grooming, AMG can provide benefits to the busy dog owners and the communities they are part of. The improving on the washing facilities can assist in the effectiveness on pets grooming and saving water. Using media resources to promote in public influences can help in obtaining market shares and awareness. Although it is a franchise company with scale, the influence in the Canberra area still need more efforts. Also, to build its brand image and good reputation, excellent and professional services can create great opportunity for AMGs business. 5.1.4 T-Threats The negative impact will be carried out in internal and external environment. First of all, there are lots of different sizes pet services existed in the market, not only for mobile pet grooming services, but also various local dog washing venues. Indeed, as it is simply to set up, new competitors may easily enter in the market. Mobility can provides the lowest cost on build new mobile pet grooming business due to there is no requirement on the permanent shop. Furthermore, the external environment, which is economic recession, might encourage customers to wash pets by themselves to save money other than waste it in unnecessary ways. 5.2 Competitive analysis 5.2.1 Competitive advantage The Aussie Pet Mobile can gain competitive advantages in its marketing strategy. Firstly, the positioning strategy requires it providing outstanding services in affordable prices. 5.2.2 Competitors analysis The market of mobile pet grooming in Canberra is highly concentration competitive environment. The oligopoly occupied by three businesses in ACT area which are HydroDog (Blue wheelers), Aussie Pooch Mobile, Jims Dog Wash and Jams Dog Wash. In addition, there are listing 11 competing mobile suppliers in Yellow Pages (2013). The market in Canberra is volatility as there are new players continuously entered in. The potential threat could be some small family-based businesses, such as Sparkling Paws Mobile, occupied the market share quickly in specific region. For Sparkling Paws, it provides cost-efficient services in lowest prices. As it is family based, it normally uses home to operate business, and it can easily built relationship with neighbours. However, on the other hand, with respect of business size where small businesses may hardly survival in expanding their business strategy in short term. According to below positioning map of major competitors, it can be seem that HydroDog and James Dog Wash provide high standard services which also results in high price charging. Especilly for HydroDog, where renamed as Blue Wheelers, it aims in developing expert in modern technologies, products and new areas of customer service. The unique blue dog mobile salon is equipped with top of the range grooming and washing facilities such as air conditioning, specialist washing treatment and so on (Blue Wheelers 2013). While Aussie Pooch Mobile is rated second satisfaction in the Top Franchise Awards of level of initial investment less than $50,000 (Franchise Survey 2009), it is the number one dog wash and grooming professionals in the Australia and in the world (Aussie Pooch Mobile 2013). The operators in Aussie Pooch Mobile are specialist in pets stylish and massaging, and the services are in affordable price. 6. Target Market Segmentation 6.1 Geographic The population of dogs in Australia has increased significantly to 3.41 million whereas the cat population was 2.35 million in 2009. With the growing tendency in population of Canberra, the number of people has increased to 367,800 in 2011, which represents 15% growth rate compared with ten years ago(Australian Bureau of Statistics 2012). A survey conducted in 1993 (Revill 1994) that the estimation of the dog population in ACT has reached 36,000, and the number of amount will become extremely considerable at nowadays. Examine on behaviour of raising pets is considered their pet as part of the family and further indication in willing to cost money in their pet (RSPCA, 2005). The largest suburb population in Canberra is distributed in Belconnen area, and followed by Tuggeranong with 90,700, 89,300 respectively (ACT Chief Ministers Department 2010). This information makes it clear that there is more possibility to promote mobile pet grooming service in those areas. Since Belconnen is th e town centre of Canberra, of those people who leaves in there might pursue more convenient services for available releasing themselves from fast lifestyle, as well as taking care of pets. As Aussie Pet Mobile is a drive in service which could be directly in front of customers door, the distribution requirement has very less limitation on this company. However, there might be more demand in the large population of suburbs. Demographic There are several aspects to support people in raising pets. The more important aspect is financial capacity to sustain the expenditure on pets, as the cost varies from food, care, to veterinary services. According to the analysis above, the average earnings of Canberrans are beyond the national rate which indicates they owned substantial money to afford pets services. For the different group of people, household with young kid, in which is aged bellowing 5, were less possible to keep pets compared with those families who have children in school age. The trend grows consistently with the age of child, and with three-quarters of families raised pets where the aged of their child among 10-14 years old (Australian Bureau of Statistics 2012). The married couples with dependents have the largest proportion to own pets in all household types whilst lone parents were the second percentage with 49% and 41.1% respectively, and typically women are the major carers of the pet (RSPCA 2005). For those people who have pet, they could be identified as the potential customers for Aussie mobile pet grooming service especially for married women and lone parents who also need work and taking care about family and pets. Psychographics The influence of social class could be affected by three aspects: income, occupation, and education level (Perner 2012). As pet grooming services from Aussie Pet Mobile grooming are not cheap, with starting $55 per dog to $90 and the price varying depends on the size of pets. As for occupation of pets owners, the impact might depends on the how many available times are pets owners having, as well as income. For a busy worker, he or she might focus plenty of time on work to gain more personal values and salaries, but less time to look after pets. In other words, of those who have to constant to work, they are more likely to seek for mobile pets grooming services. Since there is a positive relationship between occupation and income, the regular worker will have less time but enough money to consume in Aussie Pet Mobile. Also, the impacts of income are obviously important in relation with purchasing pet grooming services. In a nutshell, the middle and upper class have more chance to uti lize the services. For the people who are attracted packaging more important than quality, such as aspirer, and have social awareness and respect value of time and curious about new thing like reformer, will be the majority group in consuming mobile grooming services. Behavioural For the time poor pets owners, also recognised as regular user, they are more likely to take repetitive purchases and heavily relied on the mobile grooming services. These group of people involve full time singles who own one or two more pets, both working parents with pets, and active no child couples who both have full time works, and enjoy in the social activities other than trifling chores. For example, they are tired with washing pets by themselves. After these groups are aware of coming front pets grooming services, and have experience in it, they might continuously use this services as it free them from consuming and limitation of time. Secondly, there might be some occasional users that potentially purchased mobile grooming services. For example, on special events, some local vets might wish to keep up with demand, and utilised their service referred to Aussie Pet Mobile services via discount deals. Also, some customers might curious about coming-to-home pets grooming service s and want to have a try, or they are busy at some specific time. In a word, there are two types customers to use Aussie Pet Mobile services, one is constant users who are lack of time to wash pets, and the other one is occasional users that are potentially demanded on services. 7. The Marketing Mix 7.1 Product Recommendation The Aussie Pet Mobile provides variety of services to customers including washing, clipping, teeth brushing, and puppy cuts and so on. It developed 15 Steps of grooming for all breeds of dogs and cats. The process includes cleaning the ears and the eyes and clipping the nails. The full brush is doing before and after the bath. In the shower, they use completely eco-friendly and nature shampoo and conditioner and double rinse after that. They will do trimming of the paws and feathers if you required. They will treat pets tasty food after a little fragrance. However, the services that APM provided are similar compared with other mobile pet grooming business. To better differentiate itself, the expansion on the services is vital for the long-term development. The designed services towards different group of pets that is important to differentiate it from all kinds of pet grooming business not only for the mobile grooming services. The designed services can be carried out in terms of different types of pets, but also develop it into all area. For example, the 15 Steps grooming services are mainly toward to dogs in terms of its physical characteristics. However, the services in treating cats should be carefully evaluated as it is not friendly pets to strangers. The designed services should be aimed in making cats more comfortable and ease in line with its physical and behaviour features. Also, providing different classes of services can gain more loyalty customers. The alternatives of choices in services will lead in the changing on the expectations from customers (Wells Foxall 2013). For instance, rich customers might look for the expert services whereas normal customers expected affordable price in suitable performance. The other area se rvices could be developing on consulting working, guarding and training to pets. The consulting and training services can contribute on the promoting their expertise in branding. 7.2 Price Recommendation The price decisions are always the most important component in the companys marketing strategy. Also, it cannot be ignore that reasonable price, continue with product quality, are the two ingredients in balancing marketing mix (Magrath 1986). The price of Aussie Pet Mobile is determined by service driven factors. There is a difference between small and large pets with the range from $55 to $90 depend on the weight (Aussie Pet Mobile 2013). Considering with services that APM provided, it is included driving come to home, 15 steps processing on the pets. The costs might invisibly absorb profits as there are some non-value adding activities. Price variables, including retail price, bargaining purchase, allowances, creditability, influence the testing of acquisition value by customers (Atamin et al. 2010). To maximise it pricing power, the cost leadership and differentiation strategy should be mutually used to compete with the other businesses. For the cost leadership strategy, the measurement of cost drivers is essential. There are many factors which might result in cost adding. For example, the driving come to home services will lead to cost on petrol. However, the suggestion would be to better arrange the operators in bustling region. As for an operator, the charge of business in only Belconnen area is more efficient than rushing on the road between Tuggeranong and Belconnen. Also, once the business targeted on 15 steps services, the evaluation on the repetitive activities should be carried out. Since there are two brush and two rinse activities included (Aussie Pet Mobile 2013), the usage of water and shampoo and cond itioner will be increased. The control on the consumptions of first time will lead more cost-efficiently not only for water saving, but also for retrench on direct materials. The differentiation strategy is based on the assumption of setting different classes of services. Then the value-based pricing could be implemented in high class services as it is the perception value (Kotler et.al. 2013) that high level pets owners expected. 7.3 Promotion Recommendation According to Atamin et.al. (2010), it stated that promotion is increasing the satisfaction of the objectives and influence the perceptions of target consumers to facilitate exchange within customers and company; also it contributes in effectively and efficiently communicating the decisions of business strategy. The general approach is through the using of television, radio, and printed advertisements in the geographic areas to hold the likelihood of repeat purchase. Especially in the downtown centre of Belconnen and Tuggeranong, the degree of publicity in public area for Aussie Pet Mobile, should be extremely enhanced in busy hours at the weekends. For example, increasing repetitive advertising on TV in shopping centre or famous restaurant in lunch time could strengths the memories of APM in relative with lower advertisement costs in whole day. The highly repetitive advertisement in specific times will increase the informing indication to customers (Quester et.al. 2011). Also, the customer promotion tools can be used to help APM gaining more market share (Kolter et.al. 2013). In some large occasions, such as public holiday, APM can send operators to bustling area in volunteer washing pets, and also hand out redeemable coupons and discount offers. The designed vehicle of APM could be the best spotlight to attract customers attentions because of it is the vital services operating tool, and it is the first thing showed up in customers mind rather than groomers. Besides, the trade promotion tool can also be implemented. Since the group buying activities are in growing tendency, APM can offer some allowanced discount in great value through internet marketing. Also, for the business to business purpose, Aussie Pet Mobile grooming can integrate their services to local vets or dog hotels during the busy periods. These services can keep up with demand and on the basis of promotion deals. 7.4 Place Recommendation Atamin et.al. (2010) said that the place are related with channels of distributions that delivering the product to the target consumers. However, because of pets groomer are directly toward customers to supply services, there is no distribution channel or through middle man sales. As it is free from place limitation, Aussie Pet Mobile may obtain place flexibility due to its particular types of business form. The shifting places will provide a mobile billboard advertisement for this business. To make sure of telephone number and website are on the appearance of van to promote business in everywhere. On the other hand, to build long term relationships with customers, the necessity of setting head office in local area is important. The function of this office is to manage consulting and job arrangement. And further in expanding their business provides a series of exclusive pet care work such as looking after pets when owners are away, and training pets to achieve sustainable development . 8. Overall Recommendation Aussie Pet Mobile is the largest franchise mobile pet grooming in the world (Franchise Help 2004). However, it is a stranger in the market of ACT. To increase brand equity, APM needs to focus on generating awareness quickly and differentiation. In order to obtain market share and brand loyalty, the survival chain should be audited based on the development. There are three factors that need to be attention. Firstly, the profitability and growth drivers are derived from customer loyalty. The action is on increasing brand-building media weight by participating more advertisement campaign. Television is recommended for the ability to draw massive attention. To use free social media might be a slow way to promote its brand, such as Facebook and Twitter, but still an appropriate way to run. Online marketing is an effective way to reach all kinds of customers, such as involving in the group buying sellers to offer discount package of services. Moreover, making some actions are toward target users through segmentation targeting. For the time poor regular workers, they might have less time on surf online to access discount information, so the information posters could be deliver to the mail box. For married women who have pets, the using of word of mouth can be developed in asking them to invite friends in consuming services and receive discount on their purchase. As women are the major carer of pets, they always consider about the value in using services. Secondly, the value derives from employee productivity can directly assist in achieving cost-efficient purpose. The efficiency and effectiveness is about how much resources being used in achieving organisation goals (Hupper Ishikawa 2005). A high performance employee will contribute to reduce costs as he or she has more productivity with respect of time range and direct materials costs. Lastly, a leadership and internal quality control underlies the survival chain success. The study on the market research and feasibility to seek suggestion from publics will help Aussie Pet Mobile easily entering into the market. With the brand audit, approachable suggestions and complaints from customers will help the business to track the problems. It demands to design on the website to provide a space to share experiences, such frequent asked questions, and blog builders incorporation. The voices from employees, including complaints and feedback, can directly influence the quality in services as it is the power of internal audit. 9. Budget To implement survival chain plan, associate costs should be taken into consideration. The typical costs are covered in advertisement on TV, negotiating deals with group buying, the printing cost of posters, labour cost, research and development such as questionnaires and information system design like website. According to Franchise Survey (2009), it stated that the initial investment of Aussie Pooch Mobile in capital is AU$25,000 $50,000, the estimated weekly turnover is $1154 whereas the estimated weekly marketing costs are $40. We can assume that the business scale is similar with Aussie Pooch Mobile, so the cost model is still same as their structure. However, although there is an economic inflation in nowadays, there will be slight increase in the weekly revenues as Aussie Pet Mobile is not charge in premium prices on the services whereas there will be great increasing on the costs. The result will be minimizing on the APMs profits. Obviously, the cost leadership strategy shoul d continuously implement throughout the businesss operation. 10. Conclusion In conclusion, the report mainly demonstrates the environmental factors influencing on Auss