Doggie Door

GROUP 5
ANGELICA | CELLY | LUIS | CARLOS | MALSHA

Product

Doors with built in

pet doors

The need it satisfies

A single piece of product that serves
both pets and house/pet owners

SWOT Analysis
FAVORABLE
INTERNAL

EXTERNAL

Strengths
Door itself a single piece of product
No tools needed to cut out the pet door
Come in variety of colors, sizes and designs to
fit customer and pet need
Opportunities
Growing number of pet owners
Increasing cost for separate pet doors
installation by professionals

SWOT Analysis
UNFAVORABLE
INTERNAL

EXTERNAL

Weaknesses
Growing demand for integrating expensive
materials to the door
Preinstalled pet door cannot be tested until the
door is purchased
Not designed to stop other animals in the
neighborhood entering the house
Threats
House/pet owners lack of confidence in buying a
single product
There are house owners have pets after the house
is purchased
Rising security concerns
Concerns of energy efficiency

Environmental Scanning
Social
Economics
Technological
Competitive
Regulatory

Social
The trend of pet Humanization increase demand for
specialized products
Pet parenting
Pet/animals are treated as a family member

Economic
Average rate of pet ownership will increase at 2.2 percent
annually
The American Pet Products Association (APPA) the total U.S. pet
industry expenditures for 2008 was $43.2 billion while it is
estimated at $55.53 billion for 2013.
By looking at the overall economy, pet industry was less
affected by the recent recession than other retail sectors.
Going forward, growth in the pet industry is projected to be 4
percent annually.

Technological
Cost of installing doors by professionals
The consumers reluctance on installing the door which may be
time consuming to them
Recycling material; less waste

Competitive
There is no known company that offers such a
product.
Complete product only competition is 2 separate
products
Doggie Door Kit
Doors

Essential goal is to make a quality product that is your

first thought to purchase.

Regulatory
APPA has an established Government and Regulatory
Affairs Department
Minor Use and Minor Species Animal Health Act (MUMS)
Consumer Protection Act

Industry Analysis
According to the APPA, the
market for pet products and
services was $28.5 billion in
2001, $43.2 billion in 2008,
and $58.51 billion in 2014.
It is only expected to increase
since more and more pet
owners now consider their pets
family.

70

Pet Expenditures
58.51

60
50

45.53
36.3

40
30

28.5

20
10
0

2001 2005 2009 2014

# of Pets Owned in U.S.

Saltwater Fish

13.6

Freshwater Fish

145

Horse 8.3
Dog

83.3

Cat

95.6

Bird

20.6
0

50 100 150 200

In Millions

Demographic trends are

positive for the pet industry.
The most rapidly growing
market segment is pet
supplies, which represents
5.5% of the market.
In the US the most popular
pets owned are cats, dogs,
and fresh water fish.

Competition Analysis
Power of buyers and Suppliers
Low switching cost
Possible barriers to enter the market

Competition Analysis
There are currently NO other companies who offer a pre-cut pet door, only kits
that require you to cut in to your existing door are out there.
Door kits are readily available everywhere from your local Walmart to Amazon,
people could find the best price to purchase it and either do it themselves or
call someone else to do it.
37-47% of all households in the US have a dog and 30-37% have a cat. (APPA)
58.51 billion dollars was spent in the pet industry in 2014. (APPA)

Customer Analysis
140 cats and dogs are owned in the United States, this is our
Dogs base
Cats
customer
Percent of households
Owning

36.5%

30.4%

Number of Households
owning

56 Million

45 Million

Average number owned by

household

1.5

Total number in US

83.3 Million

95.6 Million

We love our pets

The American Pet Products Association (APPA) runs
surveysevery year to estimate pet expenditures in
the US.
According to the APPA , 58 billion dollars was spent
on pets in 2014, where dogs and cats account for
about 60% of this figure (estimated 34.8 Billion)

Where do those 34 billion go?

Expenditur
e

Dogs

Cats

Surgical Vet
visits

$621

$382

Routine Vet

$231

$193

Food

$239

$203

Treats

$65

$36

Boarding

$327

$337

Vitamins

$64

$77

Grooming

$61

$20

Toys

$41

$23
(In Billions)

Our Market
Our customer lies in the Boarding division of the expenditures
which includes things like beds and dog door installations
Expenditure

Dog

Cat

Boarding

$327

$337

(In Billons)

Boarding is the second most expensive expenditure for these

two pet categories.

STP Analysis
SEGMENTATION
Our Product is aimed for those pet lovers that want to take care of their pets.
The reason owners install doggies doors are to allow access to their pet to be
able to go out side without the guidance of the owner.
Our product will eliminate the pet owner from having to pay extra for another
doggie door kit because it was not installed correctly.

STP Analysis
SEGMENTATION/TARGETING
U.S. pet-ownership estimates from the APPA for 2012 Dogs
83.3 millionNumber of owned dogs
47 percentPercentage of households that own at least one dog
70 percentPercentage of owners with one dog
20 percentPercentage of owners with two dogs
10 percentPercentage of owners with three or more dogs
1.47Average number of owned dogs per household
http://www.humanesociety.org/issues/pet_overpopulation/facts/pet_ownership_statistics.html

STP Analysis
TARGETING
Dog pet owners.
Adult with ability to buy these doggie doors.
According to APPA the average owner spends about $231 a year for vet
expenses. Not including food and extra commodities.
Seeing that owner is already willing to invest in securing the wellbeing of
their pet. Investing a premade doggie door will allow them to add another
great thing for their pet.
People who own their own house or rent.
Ways of media to reach different generations. Social Media, news paper,
magazines, TV, Internet Ads and so forth.

STP Analysis
POSITIONING
Product Built in doggie door on house hold doors. Not something that is new
but definitely something that will eliminate a need that our customers have.
Place Our customer base would be any pet/dog owner looking to eliminate a
problem. Seeing as its tailored for animals, the U.S. would be where our
product would be placed.
Price Based of the need of size, material, and style of door we would
customize a prize range less expensive or matching price of what it would
take to buy a regular new door and the doggie door kit.
Promotion Hardware stores, vet clinics, pet stores.

Product Strategy
Classified as a Customer Product
Qualities of both Shopping and Specialty Products
Shopping- furniture, alternate prices and quality.
Special- tailored towards customer wants, limited edition, effort in research of
product.

Product Line

3 sets of doors
Not a new brand just new idea
Renovations, exterior/interior
Familiar shopping places for home renovations, pet supplies
Single Product

Product Strategy
NPD Process: Strategy Development
The idea is presented as to what our new product is.
A pre-built in doggie door for home owners that want this type of product for their
pets use.
Figure out a way to not only make the product appealing to the public but make
sure that they understand it will be something useful and a great investment in
their life.

SWOT
NPD Process: Idea Generation
Homeowners that want to invest in a product for their home and their pets.
Competitors are zero to none. As of now, there is no known company offers such
product like this one.

Product Strategy
NPD Process: Screen and Evaluation
The idea is to have a base where we can sale the product by demand online but
also start finding distributors and vendors in big cities where the pet to home
population is equal so that we may have a faster testing trial.
The idea here in not to go on a global take over but to start in small regions or
different cities in the U.S. and see where that leads

Commercialization and Life Cycle

Will start with position and launch of the product. It will not be an overnight launch.
Present the idea to the public at least a year in advance before actual production of
the doggie door begins.
Stating with the least expensive social media. Head to the blogs, start a website
and make some noise about the product to get influential people on the internet to
talk about our product.

Pricing Strategy
Due to lack of competition we are setting the price bar.
Very Important to make an affordable product for the consumer, but also
allows us to cover costs
We want to be around for many years to come!

Determining the Cost

Fixed Costs:
BEP =
FC
Unit Cost
Variable Cost

Rent: $2,000

Utilities: $1,000

Labor: $4,000 (10 employees working 40 hours a

week at $12/hr)
Equipment: $30,000

Totaling $38,000

Variable Cost: $100/per unit

Product Line
Consumer want to be offered choices.
Our line would offer 3 doors that cater to the consumers needs in both the
price and appearance areas.
Simple Door - $200
High Tech Door - $350
Stylish Door - $300
This allows us to have a small variety of doors available but not so many that
it is difficult to produce or overwhelming for the consumer to decide on one.

Break-Even Analysis
Break Even Analysis
400

378

350
300
250
189

200
151

150
100
50
0

Simple $200

High Tech $350

Stylish $300

Our COMPLETE door vs. DIY

Door starting from $100 and on up
Kits - $20-300 Depending on the features offered
Installing yourself rental of tool $50 , labor $80 ($40/roughly 2 hrs)
Installation services: $200-$300
DIY not always the cheaper route!

Discounts:
Our complete door could offer discounted installation services to lure in new
customers maybe unsure of all the benefits of purchasing our doors.

Channels and
Distribution
Channels:
The indirect channel, our primary choice, would make
the product more widely available.
Customers looking for convenience: Walmart
Customers looking for a specific item in a store that is dedicated only to
pets: Petco and PetSmart
Other good retailers: Home Depot and Lowes
Our target market includes homeowners in a rural area so stores would also
have to be located in rural areas
A standard door would be $200.00: that would fit a medium size pet and be
a simple wood finish

 The direct channel would not have as

much concentration, but would be used
for those customers who are really
dedicating time to doing research for all
of their options.
Our product is larger and it might take a lot of thought
before a decision is made
We would offer a website in which the customer would
be able to customize their door as they wish
For online buyers: there is an initial discount of 10%
for going to the website and signing up for more
product information
Price for customized doors would naturally be higher
depending on what the customer wants in finish,
material, and size

Distribution
Selective distribution
We want to sell through several suitable outlets but not all of them
Retailers we have chosen have their own promotions and websites
established so they already do things to boost their image
That would not be specific to our product
The distributors would be ideal because they are stores that offer
information and expertise to assist our customers in making their decision

Communication and
Advertising
Great way to reach audiences is
through the internet and social
media
Integrating our product with an
already established following of
another page would allow for
cheap and easy advertising
For example, allowing the Home
Depot Facebook page to talk about
our product and its promotion at
their stores.

Public Relations
Face to face interactions are still very valuable both to the customer and the
company
Setting up demos outside of home improvement stores would allow our
company to demonstrate the product and its benefits
Demos at pet shelters and pet stores can also reach a part of our audience.

Advertisement
Most of our advertisement would be
limited to home improvement and
pet stores
Posters and flyers would lean
towards an informative mindset
Highlight customization and ease of
installation

YouTube
YouTube provides a
platform for free
advertising
Our video would be cost
effective as opposed to
traditional TV media
Highlight benefits of our
product and why it is
better than our
competitors

Conclusion
One of a kind product
Eliminate inconvenient DIY methods / hiring professionals
Durable product
Product line consists of three types of doors
Primarily Indirect channels
Promote message of simplified pet door application / avoid replacing cost if
ruined
Cost effective methods of advertising- Social media and YouTube videos
2-in-1 product!

Sources
http://www.americanpetproducts.org/press_industrytrends.asp
http://www.multibriefs.com/briefs/exclusive/pet_businesses_will_prosper.htm
l#.VPJNTDMtHIV
http://
www.bplans.com/pet_products_manufacturer_business_plan/market_analysis_summary_f
c.php
http://www.americanpetproducts.org/press_industrytrends.asp
http://www.homedepot.com/c/SV_HS_Door_Installation