SWOT Analysis
Swot analysis reviews the strengths, weaknesses, opportunities, and threats within the market place for a particular product. The Mobile Dog Grooming Enterprise has a vision to meet the needs of its clients who walk into their premises to buy their favorite pets. Those customers who have great passion and care for dogs will buy as many dogs as they can even if prices go beyond reasonable rates. To the contrary, a section of population with less passion for dogs hardly buys those pets in the event that prices go up to unmanageable levels. The firm has a responsibility to ensure prices do not discourage its potential customers who could have bought the pets. Hence, it is crucial for the enterprise to consider doing thorough market research regarding the industry (Besanko, 2010). It is important for the business enterprise to consider investigating and analyzing its strength and opportunities that lie ahead of it. Similarly, the management should also take into account all the pending weaknesses and threats that may deter the firm from achieving its long-term objectives to offer better services for its esteemed clients. The realization of the organization’s weaknesses and strengths marks the beginning of the mission to improve its turnaround (Besanko, 2010).
Strengths
The Organization has competitive advantage over its rivals, a wide range of resources, assets, experience, knowledge and data. Mobile Dog Grooming enterprise provides high quality pets at affordable prices to its customers in the U.S. and beyond country borders. The enterprise has always been in at the forefront in conducting market research to boost the rate at which the pets reach the customers including those living far away from the enterprise. Financial reserves and the likely returns are vital aspects the enterprise must consider even as it injects more money into the organization-a move that would ensure increase in supply of dogs and a rise for returns (Besanko, 2010).
Weaknesses
The enterprise must take into consideration the capabilities. The enterprise faces financial constraints, which may paralyze normal operations. Star-up-cash-drain, continuity, cutthroat competition from other rivals, lack of reliability of data, and unpredictability of company’s long-standing goals and objectives may scuttle operations. Low staff morale or commitment to accomplish set goals and poor leadership styles could scuttle the company’s ambition to achieve its long term and short-term goals (Donald & Dunbar, 2004).
Opportunities
The business enterprise through its massive resources should take the opportunity to establish itself properly in the market and take advantage of competitors’ vulnerability. The industry and lifestyle trends encourage operations of the firm following the increase in the demand for pet dogs (Donald & Dunbar, 2004). Today, many people than ever before purchase dogs. Technological developments and innovation have provided the opportunity for the company to establish itself adequately in the niche target market.
Threats
Political upheavals, state legislation regarding dog business, environmental effects anf new technologies pose great challenge to growth and development of the firm amid fears of many other obstacles to its way. Financial and credit pressures threatens achievements of set goals and objectives amid cases of economic slump affecting the U.S. and many other countries in Europe and Asia. The demand for dog pet has decreased considerably over the last few years (Donald & Dunbar, 2004).
Distribution strategy
The competitive advantage of the company will allow the company in configuring their networks with potential consumers. The company would have to determine proper distribution channel that would maximize the yield of its production. The distribution channel should enable the services offered by the company to meet the needs of every consumer. In choosing the distribution channel, the organization would have to consider the effective of the chosen method in responding to the requirement by the consumers (Donald & Dunbar, 2004). The company will involve itself in choosing appropriate intermediaries to enhance the distribution of the services. The choice for the channel will also depend on the cost effectiveness of the distribution. This would ensure that the business have maximized their services to the consumers by minimizing the cost of the production process. This is a strategy for the business to increase its profit in the mobile grooming services. The state of the business (grooming dogs) will also require the need for intermediaries who are aware of the services being offered. Maintaining pets usually require more knowledge since any deviation from the services to the dogs implies the failure of the business in its functioning. Consequently, the business would have to choose a distribution channel that would suit the needs of the business in the distribution of its product (Dent, 2011).. At most times, thee business would have to consider a direct contact with its consumers since the service of grooming pets is always sensitive to any deviation.
The organization also offers consumer products thereby validating the need for aggregators (remote access or local accessing). These processes enable the business to keep a close contact with its potential consumers. Remote access enables the potential consumers to connect with the organization especially when it comes to making orders for the services through mail, telephones or through internet communication (Dent, 2011). In the local access, the business would be able to maintain an inventory at the outlets allowing on-site purchase by the customers. To ensure sustainability in the distribution processes, the business would have to consider coordinating between the local access and the remote access.
In the distribution types, the business should consider all the three variety of distribution before determining the most effective. This includes the intensive distribution whereby the organization would have to focus in distributing its product to the variety of outlets. The use of selective distribution implies that the organization would have to depend on agents who act as intermediaries. The company can also consider having exclusive distribution whereby there is focus on some special intermediaries who will only specialize in carrying only the products of the business I would recommend the use of exclusive distribution since it ensure that the business have utilized fully the services provided by the intermediaries.
Promotion Strategy Recommendation
As the clients are majorly the dog owners, individuals will yearn to formulate the rounds of the dog pet shops, as well as, the veterinary offices with their catalogs or leaflets and business cards in an attempt to introduce themselves, leave their materials, and request for referrals. Placing an advertisement under the pets classified segment of the local papers and in the pet-grooming segments of the local Yellow Pages will sell the grooming services to the public. This widens the scope of the market.
In the case of a mobile pet-grooming service, a van is of significance or an aged but functional motor household if there could be any that is already available. Consequently, there should be a setting up of the pet grooming apparatus with tubs, grooming tables, generators or exterior cords sufficiently long to grant the services access to the exterior supply of power are of significance in the grooming work. Additional materials include grooming supplies and tools.
Promotion Strategies
There are various types of promotional strategies, which the Mobile dog grooming business can use in marketing of their business. The mobile dog grooming business must use the precise types of promotional strategies, which can make various differences at the way the company succeeds and achieve its targets. There different types of promotional strategies, which the Mobile dog grooming business can use, include; online promotions, use of traditional media, use of push marketing, and use of pull marketing.
Online Promotions is an effective way in which the mobile dog grooming business can use to promote to promote its business. Here, it is the use of online as a way of promotional strategy. This type of promotional strategy is advantageous compared to other types of promotional strategies. Online promotions will reach a large number of audiences or it will focus on specific groups in the market. To ensure a positive response from the audience, the company should display its advertisements on related websites. It can also do this by sending out emails to its audience in Central New Jersey in order to market the dogs. Other forms of online promotions include pay-per-click marketing. In this type of online promotions, the grooming company will pay only when the audiences click on the advertisements in case he visits.
Traditional Media; this is another effective promotional strategy which the company may effectively use to its advantage. In this type of strategy, the company will have to reach its audience by use of traditional forms of media. Such methods of traditional media include the use of TV and radio advertisements. The company can also do its promotions by the use of print media. This type of promotional strategy is effective in reaching large number of audience. In case the company integrates its marketing into various mediums, then the company will have to make sure that its message is steady across all its customers. This way, the company will repeat it message hence it will create its services awareness moving forward.
Push Marketing: In this type of promotional strategy, the dog company will have to aim to push its product to the market. In this case, the Mobile dog grooming business. The strategy entails the company using professional sales force in order to market the mobile dog grooming into the market. This type of promotional strategy is suitable in this type of business because, many people do not know the mobile dog grooming business but the use of it, it will create awareness to the customers.
Pull marketing; this is another type of promotional strategy, which will entail the company generating interest whereby the company’s customers will have to ask specifically for the grooming business right away from the mobile dog grooming business. The design of the online courses walks individuals as best as possible without performing the steps. The courses and programs tend to be further affordable as they additionally provide certificates upon completion. Putting the certificate in a frame and hanging it on the portable dog grooming unit assists with the addition of a professionalism touch to the business. Among the best affordable online programs are the mobile pet grooming business course. It highly recommendable as the pricing is reasonable and covers a vast deal of information regarding dog grooming, as well as, the aspect of pet grooming business.
Getting a Permit for a Mobile Dog Grooming Business
Individuals, who are serious about initiating their individual portable pet grooming businesses, should get out of the way the legalities. Procedures such as having an appointment with the office of the county clerk, figuring out the zoning licenses types, and acquiring the business permit needed in order to begin the dog grooming business are some of the fundamental aspects that need consideration. Furthermore, going to the other local salons and asking questions could assist individuals who are starting up the business for the first time. Individuals should not be afraid of visiting their competitors. The competitors may perceive them as curious perspective clients.
Pricing Strategy Recommendations
Psychological pricing
This pricing strategy allows the business to attract customers through using persuading the customers emotionally in terms of the pricing messages (Smith, 2012). The business set the prices of their offerings at prices points that seem unusual which makes the customers feel that the prices offered are los. For instance, more consumers will go for the products with prices set at $29.99 rather than $30. This pricing strategy will attract the customers who usually look for value of the product. The preference of this method is due to the chance that if gives to the business allowing it to attract more customers without changing the content of the product.
Differential pricing
This pricing strategy allows the business to adjust pricing in favor of the customers with reference to variety of circumstances. The differential pricing may come in form of discounts coupons or rebates. The discounts will increase the number of customer since it attracts those who might not be able to afford the original price. The differential pricing serves as a form of incentive to the customer since it relieves them of the supposed high prices.
Product line pricing
This is a pricing strategy used by firms, which would like to sell different products in the same product range and at different prices points based on the features and benefits (Smith, 2012). It is suitable for the business since it would like to offer mobile grooming services that always come with multiple products. Mobile grooming is the primary while other product arises from this such as maintaining friendly environment for the pets.
Promotional pricing
This strategy is suitable for Mobile Dog Grooming business since it involves the firm being flexible in their prices (Smith, 2012). This pricing strategy allows a business to reduce the price of offering in the quest of attracting customers. It applies to almost all existing industries hence it will be suitable for the business.
Pricing Objectives and Typical Actions taken to achieve them
There are several pricing objectives for the Mobile Dog Grooming Business. The prices paid by households for the service would depend on the level of income of the households, country’s economic performance, and the worth attached to the dog by the owners. The Dog Grooming firm will however consider several factors both internal and external before setting prices for services offered to their esteemed clients. The pricing objectives would include survival, profit, return on investment, market share, cash flow, status quo, and product quality. For the pet grooming business to survive, it is crucial for the firm to adjust price levels to increase sales volume to match the organizational expenses. The firm should also identify price levels and cost levels to allow it maximize on its profits. Similarly, identification of price levels that enable the firm to yield targeted return on investment is another priority for the business enterprise.
The firm would also seek to adjust price levels either to maintain or increase sales relative to sales of the competitors in the industry. In order to facilitate rapid cash flow, the firm would set price levels that encourage quick sales. By identifying price levels that help stabilize demand as well as sales, the firm shall have maintained the status quo. To maintain high quality products, the organization would set prices that help in recovering expenditures on research and development alongside establishing a high-quality image. In essence, factors such as product cost, demand, and competition are instrumental for effective pricing strategy as well as accomplishment of pricing objectives. The pricing strategy and objectives have substantial effect on the marketing plan.
Market analysis
In order to achieve a successful business, it is valuable to study the market for the accessing of the usual dynamism. A producer will have to consider the dynamism in the market before deciding the product type to take to the market. The market dynamism refers to the various changes that occur in the market due to the consumer’s choices and tastes. It will be beneficial to study the taste of the consumers towards the intended products before introducing the business of grooming dogs. The consumers have differing taste in the product they prefer; consequently, the business would have to determine the segmentation and the group of customers targeted. This will help in meeting the needs by the targeted customers while avoiding wastage due to targeting wrong consumers. For mobile dog grooming, the business would have to target the consumers who own pets. This implies that the business would only have to concentrate on the product suiting the owners of the dogs; consequently, not considering the taste of others since the latter has little effect on mobile grooming operations.
The segmentation
Determining proper market segmentation for mobile dog grooming will ensure that the business exhibits the highest return for the operation. This arises because of determining set of a prospectus that have high chances of purchasing the business products. Market segmentation will involve analyzing the category of need for business and the individual consumers. The needs of the business occur in three forms including strategic, operation, and functional forms (Donald & Dunbar, 2004). For the strategic needs, the business should consider whether the product it is offering is meeting the goals and the related objectives. Consequently, the business would have to sort the offered services in terms of the influence it has on the capital investment of the business. The influence should always be positive on the capital investment to ensure the success of the business. Operation requires the business to consider the effect of the chosen offering on the operating policies. An instance is the employee insurance plan that will occur by the influence of the prospect’s top-level operation management (Donald & Dunbar, 2004). The product should also be functional, such that it focuses on a function within the business like human resources and the general maintenance. This provides the domain in which a product should fall although the business would have to consider the other domains when the product purchase turns to be a perfect decision. The prospect’s functional management functions in making the purchase decision.
For consumers, the business has to consider social esteem that the mobile dog grooming would invoke in the potential consumers. The target consumers should always have a direct relation to the product such that the latter seems to be meeting most needs of the chosen consumers. The offering should meet the emotional needs by the consumers. Further, the business would have to consider the functional requirement relating to the potential consumers. The dog grooming business has to analyze how the intended product would help the consumers in maintaining the cleanness of their pets. The product should meet the functional requirements such as reducing the burden of washing the pets besides maintaining their friendliness (Donald & Dunbar, 2004). However, the business should ensure that the offering always meets both the social esteem and the social requirement of consumers, in order to become relevant in the market.
Strategic Analysis
In the recent years, the dog grooming business has become progressively popular. Through adhering to the few straightforward steps, individuals can effectively begin and operate their personal, portable grooming businesses. The initial step involves gaining of experience in the grooming of the diverse number of dogs. This either is by a professional training program or hands on exposure with a familiarized groomer. Prior to opening up the portable grooming businesses, individuals should consider the multiplicity nature of the business alongside the legal concerns. It is necessary for the proprietors to consult various professionals who have experience in offering advice concerning the benefits and undoing of coming up with their businesses.
As already aforementioned, the majority of the remarkable groomers operate from vans. When pricing the individual expenditure of grooming visits, considering the dog breed, kind of cut, and the duration it takes to finish an appointment should be under consideration. Pricing the prices, competitively results from the presence of other units of mobile grooming. The excellent platform is by advertising about the mobile grooming services through prominently featuring the contact information and business emblem on the rear and sides of the vehicle. The accomplishing of the exposure could be through customization of the paint jobs or utilization of hefty magnets affixed on the doors.
Financial Analysis
Although many people love their pets, they are unwilling to spend part of their time in the bathing and grooming process. Consequently, the majority of the people would seek such services from mobile pet grooming agencies. According to the American Veterinary Medical Association, the pet industry is vast with over 58 million households in the US being home to dogs and cats (Besanko 2010). With the increase in popularity of this lucrative industry by the day, the dog grooming organization has recorded substantial amount of income. Pet industry is a booming business in the United States and many other countries. Today, Americans own more pets than ever before. The increase in pet ownership and spending per pet contributes to imminent growth of the industry. The spending among dog owners has moved far beyond simple food and grooming expenses to include specialized and innovative premium products. Americans spent approximately $47.7 billion on pet products alongside services in 2010 (Besanko 2010). The amount constitutes a 4.8% increase over 2009 performance.
The underlying assumptions
There are several assumptions that surround the financial plan and analysis of Dog Grooming firm. First, the Dog Groomer will boast an estimated yearly revenue increase rate of 10%. Secondly, the owner of the business will acquire approximately $100,000 of debt funds for development of the business (Besanko, 2010). Thirdly, the loan will have a 10-year term with the interest rate at 9%. Apparently, the revenues of the Company are moderately sensitive to changes in the general economic market. Even though many households allocate substantial portion of their income toward pet grooming, provision of such services remains a luxury expense to households. In the event of a pullback, the business would therefore experience a considerable decrease in the amounts of revenue (Besanko, 2010).
References
Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.
Dent, J. (2011). Distribution channels: Understanding and managing channels to market. London: Kogan Page.
McDonald, M., & Dunbar, I. (2004). Market segmentation: How to do it, how to profit from it. Oxford [u.a.: Butterworth-Heinemann.
Smith, T. J. (2012). Pricing strategy: Setting price levels, managing price discounts, & establishing price structures. Australia: South-Western Cengage Learning.
