The new business will appeal to travelers who consider pets as a part of their families and would like to present gifts to them after being away. It will exploit opportunities emerging from new regulations that require hotels to have pet parks and the need to present gifts to pets.
3316 West 78th Place, Los Angeles, California in a home office.
Products and Services
The company’s products include doggie tee shirts, doggie bandannas, pet travel cases and catnip toys considered as souvenir gifts for global travelers.
Product pricing will account for both high-end consumers and other market segment (Havinal 67).
The Market and its Potential
This is a new market opportunity, which has not been explored before based on pet products. Hence, the market has potential. Pet owners who travel or tour other regions would like to take presents to their pets once they are back.
The great products and services offered by strategic partners, such as Action Bags, DXE Corporation, Hire Fishbrain, The Fresh Pet Club and BC would ensure the growth of the market niche.
The US Department of Transportation has introduced regulations that require airports to have pet parks, whereas selected hotels such as Hilton, Kimpton, Loews, Indigo Hotels, Marriot’s and Starwood Hotel Group.
The purpose of this business to offer pet products to pet owners with the aim of satisfying pet owner’s guilt after being away from their pets for considerable periods. Generally, the target customers consider their pets a part of the family.
Pet owners find it difficult to give their pets gifts once they are back from tours. A wide range of pet products and service offered by these partners would offer suitable solutions to pet owners.
Currently, there are no pet collections at the airports and this is a good opportunity for the company.
The company will also use its two characters, Woodmere, a dog and Holly, a cat to develop its company videos for children. Children would use such videos to learn about dogs and cats. Small, printed videos and storybooks about cats and dogs would provide additional revenue stream to the company and create other jobs.
The company anticipates limited competition because such products and services are not available at the airports and hotels. The company expects some minimal competitions from souvenir markets, but it the advantage of meeting customers at the airports and hotels.
One major challenge is that the market for these products and services is still at nascent stage. The company will overcome these challenges through effective marketing and promotional strategies (Kuratko 32).
The company will create competitive advantage from its human resources team who understand pets and souvenir markets (Schermerhorn and Wright 98).
The business will generate revenues from product and service sales. It expects venture capital of $65,000 with 25% stake of ownership. So far, a pitch has been well received by potential investors.
Additional revenues will be generated from sales of storybooks and videos.
Entry and Marketing Strategies
The company intends to use a concession group with several outlets in the US. It will use ‘Fast Pitch’ present the proposal to potential partners.
The distribution channels around selected locations would ensure that the company penetrates the market faster.
It will acquire contracts with airport concessionaires such as Paradies, World Duty Free and the Hudson Group among others.
There would be bi-monthly newsletter, constant contact e-mails and network marketing.
Future Growth and Expansion Strategies
The company shall expand to other continents such as South America, Europe, Asia, Africa and Australia.
Havinal, Veerabhadrappa. Management and Entrepreneurship. New Delhi: New Age International Publishers, 2009. Print.
Kuratko, Donald. The Entrepreneurial Decision. Indiana: Ball State University, 2000. Print.
Schermerhorn, John R. and Barry Wright. Management, Second Canadian Edition. Toronto, Canada: John Wiley& Sons, 2011. Print.