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Business Plan for Food Enhancing Microwave Product Jack Smalley, President/CEO. Ultimate Pet Pleasures Products that Pamper your Pets. Ultimate Pet Pleasures LLC 2200 Kraft Drive, Suite 1000 Blacksburg, VA 24060 www.ultpet.com January 2012. Company Proprietary. - PowerPoint PPT Presentation
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Business Plan forFood Enhancing Microwave ProductJack Smalley, President/CEO
Ultimate Pet PleasuresProducts that Pamper your Pets
Ultimate Pet Pleasures LLC2200 Kraft Drive, Suite 1000Blacksburg, VA 24060www.ultpet.com January 2012 Company Proprietary
Ultimate Pet Pleasures
2
Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Ultimate Pet Pleasures, founded in 2011, works with technology developers to create proprietary products that maintain and/or increase the quality of life of dogs & cats who are considered family members by their owners. Products will be sold through specialty pet supply retailers in the U S and Canada.
US Pet Market
3
Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Own Dogs but no Cats; 21.4%
Own Cats but no Dogs; 17.0%
Own Dogs & Cats; 14.7%
Own other pets; 3.0%
Not Pet Owners; 43.9%
Pet Ownership as Percentage of the 114 Million Households in the U S:
Source: AVMA US Pet Ownership & Demographics Sourcebook; US Census Bureau
There are 60 million household in the U S with dogs and/or cats
Ultimate Pet Pleasures
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
The human-animal bond continues to grow in the U S, with most dogs and cats now considered family members by their owners:
Source: AVMA US Pet Ownership & Demographics Sourcebook
Owners Consider Pet to be
Family Member;
51.0%
Owners Consider Pet to be Compan-
ions; 47.5%
Owners Con-sider Pet to be Property; 1.5%
Dogs
Owners Consider Pet to be
Family Member;
46.1%Owners Consider Pet to be Compan-
ions; 52.1%
Owners Con-sider Pet to be Property; 1.8%
Cats
1st Product Market Segment
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
The increase in the human-animal bond, along with recent pet food recalls, has resulted in Gourmet Animal Food having a significant market share:
This means there are currently 7.6 million U S householdsserving gourmet animal food to their pets
An additional 80,000 – 100,000 households enter this market annually
Dog Owners Cat OwnersOwners who
feed their pets Gourmet
Animal Food in the U S
8% 18%
Source: The New Gourmand by J Boncy, Pet Business, December 2011
1st Product: UPP Warming Oven
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Dogs & cats like their (wet) food warm, not cold- Shown in dog & cat consumer tests
but:
most people – including pet owners - will not put animal food in their microwave oven
Ultimate Pet Pleasures’ first product will be the UPP Warming Oven:
a 600 watt, <0.5 cu ft cavity countertop microwave oven specifically designed for warming gourmet dog & cat food
Competitive Advantage
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
The UPP Warming Oven is designed to: Automatically heat the food to 75 C Evenly heat the food Maintain the moisture content of the food
The oven uses proprietary - patented technology developed by Gerte Applied Engineering (GAE). GAE has extensive expertise in microwave engineering, PLC controls, software development and computer-aided design. It also has in-house fabrication capabilities and laboratory testing services. The technology used in the UPP Warming Oven is exclusively assigned to Ultimate Pet Pleasures for the pet market.
The product will meet FDA HHS Standard 1030: Performance Standard for Microwave and Radio Frequency Emitting Products
Competitive Products
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Most available microwave ovens have a larger cavity than is needed for heating dog & cat food; none have the features of the UPP Warming OvenThe closest competitive ovens are available from Whirlpool, Sharp and Haier; Sharp’s product is consisted the most competitive:
*Currently sold out
The selling price of the UPP Warming Oven will be $95
Manufacturer
Special Features
Cavity Size Cu Ft
Power Level Watts
Price
Whirlpool 0.5 750 $129
Sharp* Preprogrammed settings 0.5 600 $95
Haier 0.6 600 $45
2nd Product: UPP OrthoMassage Bed for Dogs
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
A dog bed that provides a warmed, dry sleeping area and (sonic) vibration massage to combat hip dysplasia and arthritic discomfort Common in breeds that weigh over 60 lbs Worst thing for a dog with hip dysplasia is sleeping on a cold, hard floor (Sonic)vibration treatment is a form of massage therapy that combats muscle atrophy and relieves pain and discomfort
Will partner with companies who have developed proprietary orthopedic bed and sonic vibration technology
Business Model
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Ultimate Pet Pleasures identifies product opportunities through market research; and subcontracts its technology and product development as well as product manufacturing. Products are built using the company’s proprietary technology.
Product
Identification
Product Design
Product
Manufacture
Technology Development
Product Development
Product Testing
Distribution Specialty Pet Supply Stores Pet Owner
Marketing/Sales
Customer Service
Ultimate Pet Pleasures
Subcontractors - Partners
Sales Channels
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Products will be sold through specialty pet supply retailers in the U S and Canada, including:
1,200 stores in the U S & Canada > 1,000 stores in the U S
> 350 stores in the U S & Canada > 110 stores in the U S
They may also be sold through infomercial sales channelsThe UPP Warming Oven will be sold to retailers for $65;
they would sell it for $95, giving them a 45% markupSource: Hoovers Advanced Company Search
Management Team
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Jack Smalley, President/CEO Previously President of Anotec, a developer of
ceramic membrane materials & filtration devices; acquired by Whatman
Market research and product design expertise
Don Brush, Product Development Manager Previously product development engineer at
consumer products company Whirlpool
To be hired in 2012: April: Marketing Manager - candidate identified
with consumer product marketing & sales experience
July: Operations Manager
Timeline
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
First Quarter
2012
Second Quarter
2012
Third Quarter
2012
Fourth Quarter
2012
First Quarter
2013UUP Warm Oven Product Design
Prototype Development & Testing
Sales Partnering Agreements
Identify Manufacturing Subcontractor
Initial Production Run
First Sales: Christmas 2012
UPP OrthoMessage Bed for Dogs Product Design
UPP Warming Oven is to be ready for Christmas 2012 sales:
1st Product Introduction Timeline
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
June
2012
July
2012
August
2012
September
2012
October
2012
1st Prototypes Available
Show Prototypes to Retailers
Review Product with Pet Owner Focus Groups
Test Market: Washington Metro Area (75 stores) ;1st Sales
Placement of 1st Christmas Order
Promotional Campaign (with retailers)
Christmas Sales
UPP Warming Oven
Business Development Budget: 2012
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Provided by Management
TeamFunding Required
Product Development $125 $105
Marketing 30 65Manufacturing 50General & Administrative 15
Total $155 $235
Estimated ExpensesDevelopment of UPP Warming Oven
Thousands of Dollars
Financial Projections: UPP Warming Oven
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
2012 2013 2014 2015 2016
Units Sold 10,000* 100,000 200,000 250,000 275,000
2012 2013 2014 2015 2016 $(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Revenues Gross Profit EBITDA
*over 2,500 identified retail outlets
Exit Strategy Options
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
1. Continue to develop new products and create company division for each: sell to investors
2. Sell product lines as each matures to existing pet products companies
3. Sell to pet food company: Mars, Purina/Nestle
4. Sell to specialty pet supply retailer chain: Petsmart
Opportunity Summary
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Ultimate Pet Pleasures
Products that Pamper your Pets Company Proprietary
Ultimate Pet Pleasures will work with technology developers to create proprietary products that maintain and/or increase the quality of life of dogs & cats who are considered family members by their owners, subcontract product manufacture, and sell its products through specialty pet supply retailer chains
60 million pet owners in this market First product revenues are projected to exceed
$15 million within five years Expect to launch a new product line every 2 years Total initial investment for first product is less
than $500,000; projected 5-year NPV is about $9 million