Customer Analysis

Customer Analysis:

The following is a breakdown of the customers in the market we will be operating in:

There are approximately 78.2 million owned dogs in the U.S. 39% of U.S. households own at least one dog. About 60% of owners own one dog. 28% of owners own 2 dogs. 12% of owners own three or more dogs. (According to the 2011-2012 APPA National Pet Owners Survey)

In 2011, $50.96 billion was spent in the U.S. pet industry, and it is estimated that $52.87 billion will be spent in 2012. Of that $52.87 billion spent in 2012, $4.11 billion is spent on pet services (grooming and boarding) alone. In 2011, $3.79 billion was spent on pet services. Despite the recent recession and a slower "ruff" economy, there is an overall growth trend spent on pet and dog services. Pet services projected growth rate is 4.1%. The customers that are willing to spend dollars on Fido despite the slower economy are the customers that Paws on the run will be focusing on.

According to the American Veterinary Medical Association's pet ownership calculations, there are 9,938 dog owning households in Missoula. There are a total of 24,141 households in Missoula which equals 41% of households owning dogs.

Of the 41% of households in Missoula that own dogs, we will be focusing on households that have medium to higher class incomes, busy dog owners, and baby boomer dog owners.

Our niche is segmented into the following categories:

* Baby boomers/Elderly

* Young professionals

* Busy families

Baby boomers are a thriving segment in Missoula. 1 in 11 residents are 65 or older, and there is indication that that number will continue to grow. According to a recent study done by the Milken Institute, Missoula was ranked as one of the top 10 places for "successful aging." We will focus on young professionals and busy families because it takes time to drive across town to get your pooch washed and groomed. According to ABC News, Americans work more than anyone in the industrialized world. The American Time Use Survey released by the Bureau of Labor Statistics said that on the days that people worked, employed people spent on average 7.6 hours working. For full-time employed individuals and couples, it is difficult to find that extra time to bring their dog across town to get groomed. That is why Paws on the Run will come to them. It saves them time and yet their pet gets an exceptional, personalized experience near the comfort of their home.

Unique Benefits: Paws on the run brings the grooming to the pet parent's own property in the form of a fully rigged grooming van. The van is equipped with grooming tools, bath tubs, grooming tables, hair dryers, and other grooming supplies. We also offer a range of dog products including leashes, collars, toys, and treats that you can purchase right on site.

By using our service, pet parents save themselves the hassle of running across town to get their dogged groomed or grooming a dirty dog in their own house. Our client on-site grooming allows the customer to give us input on how they would like their dog groomed right then and there. Also, by being on-site, the dog is closer to their owner. This allows dogs that dislike being groomed or dogs that experience anxiety while being groomed, to be closer to their owner and home. Besides our customized one-on-one experience, superior customer service, and convenient services, we use environmentally friendly products. According to the American Pet Products Association's 2011 pet products trend report, reducing your pets' carbon paw print was one of the top pet product trends of the year.

Alternative Products: Paws on the run offers a variety of dog products and accessories that can be purchased on-site including leashes, collars, toys, treats, flea and tick treatments, and apparel.

Purchasing Decision: The purchasing decision is made by the pet parents.

Product/Service Life Cycle: Customers are likely to buy from the growth and acceptance stage of the product life cycle. In this stage, our clients will begin to purchase our services and products in large enough numbers for sales to rise and profits to materialize. Because of our unique position in this competitive market, we will be able to meet customer needs and see sales and profit margins to rise throughout this stage.

Alternative Customer Groups: The alternative customer groups that Paws on the Run could potentially include as a targeted segment include cat owners and other furry friends. We also could focus on offering our services to non-profit organizations. These would include Animeals, the Humane society, and Missoula City Animal Control.

Marketing Strategy

Service Strategy: We are seeking to create additional value with our customers by offering simplicity and convenience in purchase and use of our dog grooming services. In addition to the overall ease and accessibility, we will be offering a unique and environmentally friendly experience for all pets and pet parents.

Our service both meets and exceeds the needs of our customers through our Five T's customer service model. This model offers both a comforting atmosphere and structured approach to our services as well as a highly personalized experience for each pet.

Time represents our overall respect for the customer's busy schedule in addition to the amount of time needed to perform the best service possible.

Trust refers to our commitment to gain the trust of both our pet clients and their devoted parents.

Taking care reminds us that our quality of service is secondary to the ultimate care and consideration we must have for the animals who come to see us.

Task at hand is a reminder that quality of services performed and products used must be of the highest caliber and should be utilized in providing the greatest benefit to each pet.

Tail wag establishes the most honest feedback system for us as a business. A happy dog wags its tail. If we do our job well, our pet customers should leave with tails wagging. Of course, we will also give great consideration to the comments and feedback, both verbal and emoted, from the human half of our customer base.

Through a detailed questionnaire for new customers as well as careful observation on our