Professional Documents
Culture Documents
Market Research
alfred endeio
Table of Contents
Executive Summary ................................................................................................................................................................................. 2
Decision Problem ..................................................................................................................................................................................... 3
Research Problem ................................................................................................................................................................................... 3
Secondary Research ................................................................................................................................................................................ 4
Demographics .................................................................................................................................................................................. 4
Household Incomes ..................................................................................................................................................................... 5
Competitors ...................................................................................................................................................................................... 6
Comparison Chart ............................................................................................................................................................. 7
Pet Grooming Market Trends.................................................................................................................................................. 8
Business Trends .................................................................................................................................................................. 8
Marketing Trends .............................................................................................................................................................. 9
Primary Research ................................................................................................................................................................................... 10
Data Collection Method ....................................................................................................................................................... 11
Questionnaires .................................................................................................................................................................. 12
Sampling Plan .................................................................................................................................................................... 12
Limitations ......................................................................................................................................................................... 13
Results & Analysis .................................................................................................................................................................................. 14
Exhibit 1....................................................................................................................................................................................................... 16
Exhibit 2 ...................................................................................................................................................................................................... 19
Sources ...................................................................................................................................................................................................... 22
alfred endeio
Executive Summary
In the fall of 2010, alfred endeio LLC worked with client Sparkys Pet Salon of Orlando, FL. The client
wanted to know how to increase revenue at its current location while also exploring the possibility of
opening a second pet-salon.
The research conducted utilized primary research (including current-client surveys, and potential-client
surveys) and secondary research (including demographic studies and census information). The project had
four major findings:
First, location is highly important to customers; location is more important than amount of dog
grooming services, but not as important as pricing and quality of services.
Second, dynamic pricing could alter client-scheduling habits and fill mid-week empty appointment
slots; discounts of 20% of more would be necessary.
Third, Sparkys Pet Salon needs too better communicate its convenient location (e.g. free garageparking). Marketing communications should be heavily online-based.
Fourth, a second Sparkys location should, most importantly, be conveniently located but also remain
small in size. Dog-owners are not interested in dog boarding.
alfred endeio
Decision Problems
Sparkys Pet Salon routinely experiences broad fluctuations in demand for its services throughout the week.
There is very little demand for Sparkys services on off-peak days such as Tuesdays, Wednesdays, and
Thursdays. Conversely, Fridays and Saturdays provide more demand than is currently serviceable. This
situation leads to inefficiencies of operational time usage. Sparkys Pet Salon seeks to decrease the volatility
of its demand, thus normalizing its operations throughout the week. To aid Sparkys in a volatility decreasing
solution, the following questions were asked:
Discovery-Oriented Problems:
1. How important is the location and is the
2.
Research Problem
To help Sparkys make an informed strategic decision, alfred endeio gathered an understanding of which
factors inhibit walk-in traffic and reservation booking during off-peak days. In addition, research about
possible solutions to these inhibitors was gathered. The research was conducted using the following
methods:
1. Inquiries of current Sparkys customers assessing sentiment toward location, facilities, service
offerings, pricing, and promotions
2. Research on industry standards of service, pricing, promotion, and best practices
3. Survey of local dog owners assessing factors that motivate usage of pet grooming services, for
example: location, expediency, convenience, price, etc.
alfred endeio
Secondary Research
alfred endeio believes secondary research of the market for Pet Groomers within Sparkys accessible area,
and comprehensive research on Sparkys immediate competition are necessary to supplement the teams
findings through primary research (surveys and interviews). The following sections highlight the teams
secondary research discoveries. The demographic and competitive research contained within was gathered
around the 13 zip codes nearest Sparkys Pet Salon, as the owner has expressed he would like to remain in
the general area. For the remainder of the report this area will be referred to as the target area. In
addition, several published documents describing pet grooming trends and pet owner behaviors were
researched and will be referenced within.
Doggie Demographics
There are 412,000 dogs registered as pets in Orange County Florida. Nearly 200,000 of those are located in
the target area of downtown Orlando, and its closest districts [1]. Currently Sparkys services only 5% of the
registered pet population within the target area. The following map displays geographic concentrations of
registered dog ownership by zip code. The map is centered on Sparkys Pet Salon. Concentrations of
registered dogs are displayed by color. Red indicates those zip codes containing more than 15,000
registered dogs, orange represents those zip codes containing between 10,000 and 15,000 registered dogs,
and yellow represents zip codes containing less than 10,000 registered dogs.
alfred endeio
According to the 2008 census report, there are 43,000 registered dogs contained within Sparkys zip code
and its four closest surrounding zip codes, (3 yellow, 1 orange) 11,500 of which are contained in the zip
code 32806. As of 2008, only 5,656 registered dogs resided within Sparkys zip code. Roughly 83% of these
dogs have not yet utilized Sparkys services.
Income:
Zip Code:
Income:
32801
$57,538
32811
$21,911
32803
$61,772
32812
$44,911
32804
$87,516
32822
$26,912
32805
$20,351
32839
$25,604
32806
$69,939
32789
$153,740
32807
$27,687
32792
$43,882
32808
$23,868
alfred endeio
Canvey Enterprises
Sales: $1,000,000
Sales: $290,000
Sales: $200,000
Sales: $1,000,000
3019 Edgewater Dr
Love on a Leash
Sales: $500,000
Sales: $60,000
Sales: $500,000
Sales: $60,000
Among Sparkys local competitors is the Florida Institute of Animal Arts. The Florida Institute, not only has
pet grooming and boarding services, but also offers training for future pet groomers. This exposure as a pet
groomer training facility greatly increases Florida Institutes pet grooming sales. As you can see from the tale
above, the two nationally registered Pet Groomers located in Sparkys immediate vicinity have the lowest
sales, bringing in only $60,000 annually. Additionally, four of Sparkys most profitable competitors are located
in or close to the Winter Park area, with the least competitive of those bringing in $200,000 in annual sales.
alfred endeio
Comparative Services:
As aforementioned, there are dozens of other non-registered pet groomers competing for clients within
Sparkys target area. A few of these include the Metropolitan Dog Spa, Luvin Pups, Dog Day Afternoon, All
Creatures Pet Grooming, and Petco [4]. Sparkys offers many equivalent services to these competitors, and
its prices are lower than those of its competitors. Below is a breakdown of Sparkys services and fees as
compared to a few of its competitors:
Service
Sparkys
Metro D.S.
Luvin Pups
$45
$47
$55
$65
$55
$60
$75
$75
$65
$80
$75+
$85
$25
$25
$25
$95
$30
$35
$35
$50
$40
$45
$45
$55
Flea Care
$10
___
$10
$65
Teeth Clean
$10
$10
$10
___
Nail Trim
$10
$10
$10
___
Ear Clean
$10
$10
$10
___
$15
___
$5
___
___
___
Relatively few of Sparkys competitors have a published list of prices. Even fewer offer dynamic pricing
throughout the week to stabilize their demand. Petco is one of Sparkys competitors that offers dynamic
pricing, however Petcos base prices far exceed those of Sparkys for all services.
alfred endeio
alfred endeio
Marketing Trends:
Another trend in the pet grooming industry is the use of online social-networking; Social networking was
not new in 2009 but the successes of the early adopters such as @PetsitUSA and @petrelocation are driving
more and more pet businesses online.
[7.]
Each of these companies uses social media platforms to offer
discounted pricing, and promotions to stabilize their demand throughout the week.
Additionally, pet owners are looking for groomers to offer a wide variety of online and offline tools to help
communicate, and showcase themselves as respected experts in their pet industry niche. [8.] Tools like
Facebook and Twitter are tools being used more often by groomers as a way to market through
establishing credibility.
alfred endeio
10
Primary Research
In order to gain insight into the nature of the problem, we participated in both exploratory research and
descriptive research.
primarily helped to increase our familiarity with the problem, and provided inspiration for further research,
which we decided would best take the form of primary descriptive research.
We used descriptive research for three reasons: 1) to gain profile data on dog owners in the Orlando area,
2) to be able to split them up according to specific behaviors and proportions, and 3) to be able to predict
certain behavioral outcomes from the gathering of this data. Regarding causal research, although we did
want to know what elements specifically caused certain dog owner behaviors, we chose to exclude this due
to the lack of time needed for both developing the experiments and running them. However, before
implementing our descriptive research, we needed to answer the five questions of who, what, when, why,
and how:
Who:
We wanted to target only dog owners in the Orlando area, more specifically, dog owners who have taken
their dog(s) to a dog groomer at least once in the past. Since dog owners who havent actually taken their
dog(s) to a groomer yet are still potential customers, we felt it was valuable to get their response data.
What:
We wanted general demographics, such as sex, age group, and zip code of dog owners. We also wanted to
know specific information, such as how many dogs they own, how often they take their dog(s) to the
groomer, etc. (please see Exhibits 1 and 2).
When:
We wanted to get any dog owners to fill out our questionnaire at any time, no matter how recent they
have been to a groomer.
alfred endeio
11
Where:
We chose to target three specific, physical locations where dog owners would frequent. These areas are
pet stores (Petco, PetSmart, etc.), dog parks (Fleet Peeples Park), and Park Avenue, where it is very
common for dogs and their owners to walk up and down the avenue or just hang out. We also emailed
(from Sparkys current customer email list) respondents at home or work (or wherever they receive and
engage their emails).
Why:
Since we ideally wanted to get data from dog owners who have taken their dog(s) to a groomer, we
thought that the best target group would be Sparkys current customers. We know that they all have gone
to a groomer at least once. And since we couldnt solicit survey information outside competitors stores,
we thought that just finding dog owners en masse would be the next best option (hence, pet stores, dog
parks, and Park Avenue).
How:
We chose to use a questionnaire with two versions. The first version is more general, aimed at dog owners
who may not have heard of Sparkys. The second version is more Sparkys-related, and these were emailed
(using Sparkys customer email list) to those respondents that have been to Sparkys at least once.
Lastly, we chose to use a cross-sectional analysis, or a sample survey. Longitudinal analysis and the use of
panels wouldve provided more accurate and deeper data, but, again, time would simply not allow for this.
We also hoped that a sample survey would provide us with a more random or representative cross-section
of our target market, as panels often cannot do this.
alfred endeio
12
we chose a semi-high structure with our questionnaires (with a few open-ended questions), no disguise, a
natural setting, and human administration.
The Questionnaires:
Our questionnaire came in two versions: 1) for current or past customers of Sparkys (please see Exhibit 1)
and 2) for those we would target in the specified locations (pet stores, dog parks, and Park Avenue) (please
see Exhibit 1). The first version has 26 total questions, five of which are open-ended, and the second has
28 total questions with six open-ended questions. Both versions contain eight multichotomous questions,
but the first version has three dichotomous questions, while the second version has four, bringing version
one to a total of 11 close-ended questions and version to 12 close-ended questions. Both have ten scaled
response questions, specifically, seven questions using the Likert scale and three questions using an ordinal
scale. Client Questionnaire (version one): 26 total questions = 5 open-ended, 8 multichotomous, 3
dichotomous, 7 Likert, and 3 ordinal. Public Questionnaire (version two): 28 total questions = 6 openended, 8 multichotomous, 4 dichotomous, 7 Likert, and 3 ordinal.
Question topics were grouped together, and personal or demographic/classifying questions were placed last
with the most relevant and non-threatening questions placed first. One thing to note is that we originally
wanted to incorporate questions using a ratio scale, but since we also wanted to focus on keeping the
questionnaire as short as possible (regarding completion time), we felt that this would take too much time
for people to accomplish, which would go against our undisguised intentions (as we wanted to approach
potential respondents by asking them fill out a five-minute survey). The questionnaire was presented on
either one sheet of eight by eleven white paper with two sides or two sheets with one side on each. We
felt it was important to present a short-looking questionnaire to back up our promise of a five-minute
commitment.
The Sampling Plan:
After having defined the target population as dog owners who have patronized or have considered
patronizing a dog groomer at least once, we felt the best sample for our purposes would be a simple
random sample. But again, time (and skills/resources) forced us to go with a non-probability sampling design.
We chose to use judgmental sampling, mainly due to convenience. Since we knew we needed to contact
dog owners, we used Sparkys email list for the first version of the questionnaire, and we chose several
alfred endeio
13
convenient locations that would be most likely to contain dog owners, these places being pet stores, dog
parks, and Park Avenue.
With the email list, we simply emailed the questionnaire to everyone on the list and waited to get responses
back. We understood that this method, although reaching everyone within the current or past customer
target population, was far from random, as respondents would only represent those types of people who
would be willing to fill out a survey for whatever reason. It could be because they had a genuine interest in
dog groomers, improving Sparkys, aiding graduate students, etc., but those who didnt care about these
things would not be represented in this survey.
With the second version of the questionnaire, we approached any and all dog owners we could ask without
artificially restricting our target population. If they declined, then we would politely thank them and move
along. Anyone with a dog was welcome to fill out our questionnaire because we felt that as dog owners,
their opinions on dog groomers could prove insightful.
After one month of data collection, we attained 597 filled questionnaires.
Limitations:
The research report has four main limitations. First, the current-client survey was delivered only via-email,
perhaps creating a bias for future online communication and appointment booking. Second, the surveys
given to dog-walkers on Park Ave and other areas were inherently biased; surveys, for example, were given
to approachable dog-walkers, or owners with small or non-threatening dogs. Third, online survey
respondents represent customers with good experiences at Sparkys (i.e. unhappy customers would have
been less likely to fill out the survey). Fourth, the in-persons surveys were conducted in places of
convenience (Park Ave, etc.), as opposed to a wider and more encompassing geographical area possibly
better representing the entire community.
alfred endeio
14
2. What effect would dynamic pricing, and increased promotional activity have?
Measuring the frequency of reported results, we discovered that 55% of respondents were willing to change
their current scheduling habits for a discount. We also discovered that 30% of the unwilling respondents
would consider changing their scheduling habits if given a discount of 20% or more.
alfred endeio
15
3. How should Sparkys use the information gathered to append its marketing practices?
Sparkys currently uses a variety of different methods to reach out to customers. Through our primary
research we asked respondents what methods of communication were most efficient for them. We used a
pair T-test to discover the relationship between these various modes of communication. Respondents
ranked the marketing channels in the following order:
Email (1st),
Facebook (2nd),
Phone Text (3rd),
Print Ads (4th)
Twitter (5th)
Based on these results we suggest Sparkys would benefit from pursue a dynamic pricing strategy, that offers
at least a 20% discount to its current prices during non-peak business days. Additionally, Sparkys would
benefit from communicating its convenience (such as 15min free parking) to customers. We also suggest
Sparkys use email and Facebook as primary means to communicate these discounts and convenience items
to customers.
4. If/How should Sparkys choose a new business location or an expansion location in the future?
Based on our research we cannot conclude that Sparkys should relocate its primary service location. There
are several other factors outside of market research that must also figure into such a decision. However,
should Sparkys wish to open an additional service location we suggest it consider a convenient location (i.e.
near on-street parking, or parking garage, and two way streets), in a zip code with a higher annual income
per household than its current locations zip code. Additionally, we recommend keeping the new location
small, as there is no perceived added benefit to boarding animals.
alfred endeio
16
How far do you live from your dog groomer? Please check
one.
important):
a. Location
____
b. Quality of Service
____
c. Price
____
d. Range of Services
____
____
3.
7.
If you live more than 5 miles away, briefly explain why you
one.
____________________________________________________
[ ] Very inconvenient
[ ] Somewhat inconvenient
4.
How many different dog groomers have you gone to? Please
check one.
[ ] Somewhat convenient
[ ]0
[ ] Very convenient
[ ]1
8.
[ ]2
[ ]3
_____________________________________________
[ ] More than 3
9.
5.
one.
[ ] Less expensive
[ ] Drive
[ ] More expensive
[ ] Walk
[ ] Bicycle
[ ] Pet Pick Up Service
alfred endeio
17
[ ] I strongly disagree
check one.
[ ] I somewhat disagree
[ ] Yes
[ ] No
[ ] I somewhat agree
[ ] Maybe
[ ] I strongly agree
[ ] Less than 5%
[ ] I strongly disagree
[ ] 5%
[ ] I somewhat disagree
[ ] 10%
[ ] 15%
[ ] I somewhat agree
[ ] 20%
[ ] I strongly agree
____________________________________________________
[ ] Yes
__________________________________________
[ ] No
[ ] Maybe
[ ] I strongly disagree
only coupons) (with 1 being the least and 5 being the most)
[ ] I somewhat disagree
[ ] I somewhat agree
[ ] I strongly agree
[ ] Facebook
[ ] Phone Text
[ ] I somewhat disagree
[ ] I somewhat agree
a.
Phone
____
b.
Website
____
c.
____
d.
Phone Text
____
e.
Walk-in
____
[ ] I strongly agree
alfred endeio
18
[ ] I strongly disagree
[ ] 18-24
[ ] 35-44
[ ] 55-64
[ ] I somewhat disagree
[ ] 25-34
[ ] 45-54
[ ] 65+
[ ] I somewhat agree
[ ] I strongly agree
28. Have you ever heard of Sparkys Pet Salon? Please check one
[ ] Yes
[ ] No
check one.
[ ] I strongly disagree
[ ] I somewhat disagree
[ ] I neither agree nor disagree
[ ] I somewhat agree
[ ] I strongly agree
[ ]0
[ ]1
[ ]2
[ ]3
[ ] More than 3
[ ] $50
to $75
[ ] $76
to $100
[ ] $101 to $200
[ ] More than $200
[ ] $25,000 to $50,000
[ ] $50,001 to $100,000
alfred endeio
19
1.
5.
most important):
a. Location
____
b. Quality of Service
____
c. Price
____
d. Range of Services
____
_______________________________________________
____
3.
6.
2.
[ ] Very inconvenient
[ ]0
[ ] Somewhat inconvenient
[ ]1
[ ]2
[ ] Somewhat convenient
[ ]3
[ ] Very convenient
[ ] More than 3
7.
4.
check one.
[ ] Drive
[ ] Walk
8.
[ ] Bicycle
[ ] Less expensive
alfred endeio
20
[ ] More expensive
[ ] I dont go to other groomers
a.
Phone
____
[ ] Yes
b.
Website
____
[ ] No
c.
____
[ ] Maybe
d.
Phone Text
____
e.
Walk-in
____
[ ] Less than 5%
[ ] 5%
[ ] I strongly disagree
[ ] 10%
[ ] I somewhat disagree
[ ] 15%
[ ] 20%
[ ] I somewhat agree
[ ] I strongly agree
11. If you own more than one dog, would package deals
[ ] Yes
[ ] I strongly disagree
[ ] No
[ ] I somewhat disagree
[ ] Maybe
[ ] I strongly agree
___________________________________________
[ ] Phone Text
alfred endeio
21
[ ] I somewhat agree
[ ] I strongly agree
[ ]2
[ ]3
[ ] More than 3
[ ] I strongly disagree
[ ] I somewhat disagree
[ ] I somewhat agree
[ ] I strongly agree
[ ] $50
to $75
[ ] $76
to $100
[ ] $101 to $200
[ ] I strongly disagree
[ ] I somewhat disagree
one.
[ ] I somewhat agree
[ ] I strongly agree
[ ] $25,000 to $50,000
[ ] $50,001 to $100,000
[ ] I strongly disagree
[ ] I somewhat disagree
[ ] I strongly agree
26. Please indicate your age group. Check one.
[ ] 18-24
[ ] 25-34
[ ] 35-44
[ ] 45-54
[ ] 55-64
[ ] 65+
[ ] Prefer not to Say
alfred endeio
22
Sources
[1.] http://www.lnstatistical.com.ezproxy.rollins.edu:2048/Main.jsp
[2.] http://www.melissadata.com/lookups/TaxZip.asp
[3.] http://www.naics.com/censusfiles/ND812910.HTM
[4.] Google Search Pet Groomer 32801
[5.] New mobile pet grooming business set to expand into York County, Pa.
Knight Ridder Tribune Business News. Washington: Sep 6, 2009
[6.] Entrepreneur opens second pet grooming location Ike Wilson. McClatchy - Tribune Business News.
Washington: Oct 6, 2010.
[7.] http://smallbiztrends.com/2010/01/pet-industry-trends-for-2010.html
[8.] http://www.marketingmypetbusiness.com/2010/02/top-pet-trends-for-2010.html
ok