GPS Cat Collar Presented By Purr Innovations: Ryan Johnson, CEO & CFO Ross Kaplan-Winn, CMO & Senior Market Researcher Jennifer Voorhees, COO & President

GPS Cat Collar

Presented By Purr Innovations:

Ryan Johnson, CEO & CFO

Ross Kaplan-Winn, CMO & Senior Market Researcher

Jennifer Voorhees, COO & President of Design and Technology

http://www.gottoast.com/shop/images/5.5pawprint.jpg

The Rundown• Description• SWOT• Target Market• Positioning

Strategy• Marketing

Objectives• Marketing Mix

• Product• Place• Price• Promotion• Summary

• Time Schedule• Profit/Loss

Statement• References• Questions

New-to-the-World Product Description:

• GPS-enabled cat collar

• Locates missing cats

• Peace of mind

• Detects heart rate

• Online access available

• Hand-held receiver

• iPhone application

• Personalization options

• Small enclosure for GPS technology

CPS (Cat Positioning System)







Product Analysis

Features:• CPS Technology• Wide selection of designs, colors etc.• Internet Accessible Tracking• Hand-held device (tracks up to 3 collars)• On/off switch • Waterproof• Built-in battery charging port







Product Analysis

CollarHand-held

Device

GPS Transmitter







Competitive Advantages

Level One:• Customization options

• Location accuracy

Level Two:• Patent pending CPS technology

• First mover advantage







SWOT AnalysisWeaknesses:

• Heavier than most collars

• Unknown brand

• Price

• Limited Financial Resources

• Lack of Manufacturing Experience

Strengths:

• Customization

• Insight of target market

• First Mover Advantage

• Customer service







SWOT Analysis

Threats:• Indirect

competitors– All forms of

collars• Economic

turbulence

Opportunities:• 13% projected

growth, 2008-2013

• 38.4 million households

• 88.3 million cats• GPS for dogs• No legal blocks







Market Opportunities & Issues

StrengthsOpportunities

Capitalize on:• Success of dog

GPS– Plus

customization

• Intimate knowledge & experience

WeaknessesThreats

• High price= tough to gain market share

• Only offer to full-grown cats (heaviness)







Target Market Strategy

Primary Customer Target:

Owners of full grown cats Demographic

• Non-Hispanic, White• Spend more than the average pet owner

• Affluent --> $75,000 +• Ages 45-54• Educated (Associates degree +)

• Married couples• Empty nesters

Geographic• Within the United States

• West (spend 16% more)Forecasted Target Market= 3,044,616* *See Target Market Handout

Publications, Inc. New Strategist. Who's Buying for Pets (Who's Buying). Ithaca: New Strategist Pubns Inc, 2006.







Additional Future Targets

• All sizes of cats domestically– Technological advances

• All cat owners globally– Japan

• Growing at 8% with 6,245,000 cat owners

– China• Growing at 12% with 5,006,000 cat

owners

Euromonitor International. (2008). Pet Ownership. Retrieved April 5, 2009 from the GMID database.







Positioning Strategy

USP: We offer a customizable cat collarcapable of transmitting the cat’s locationto a hand-held device and online.

• Type: Attributes/Benefits

• Slogan: “Peace of Mind For Your Feline”







Marketing Objectives

Measured May 2009 through April 2010Increase brand awareness by 65%

Calculated through website hits

Sales objectives: 5% of target market152,231 units (15% direct, 85% indirect)Total sales= $31,968,511

Direct= $12,559,058 ($550 each)

Indirect= $19,409,453 ($150 each-wholesale)







Marketing Mix- Product

Product Mix• Single product

– No cross-selling– No trade-ups

• Accessories and add-ons,– Color variations, embroidering, bedazzling, etc.– iPhone application– Internet tracking– Battery– Battery charger

• Expand into product line– Limited function locator







Marketing Mix- Product

Branding Strategies• Brand Name: Cat Positioning System (CPS)

• Branding strategy: New Brand• New-to-the-world• High need/demand

• Brand Mark:

PS







Product Life Cycle StageCPS Collar= Introduction







Marketing Mix- Place

Direct Channel• Merchant E-business

model

• Sell directly to consumers through online purchases on website

(www.PurrInnovations.com)

*See handout for Google Adwords

Indirect Channel• Manufacturer to Retailer

to Consumer

• Selective Strategy using limited outlets or a chain of outlets in a given territory to sell our product.

• Gain exclusive contracts with Pets Mart, PETCO, and other small pet stores in select regions of the country.

http://www.purrinnovations.com/







Marketing Mix- Place

Direct

Indirect

Our Website







Indirect Channels

Distribution coverage strategy: SelectiveRetailers:Pets MartPetCoNo Wholesalers Sales Reps= Us!

-Save moneyFuture strategies: Kiosks in malls Eventually hire reps for different regions Wholesalers

Cost = $150Cost = $100

Cost = $300Markup = $50 or 50%

Margin = 33.33%

Markup = $150 or 100%Margin= 50%

Markup = $200 or 66.67% Margin = 40%

Producer Wholesaler Retailer

$150

$500

Marketing Mix- Price

$300

Online cost = average of $50 premium = $550







Marketing Mix- PriceProduct Price

CPS-Cat Positioning System

$500.00

Petsafe Cat Containment System

$199.95

Houdini-Proof Cat Containment System

$895.00

Feline Fantasy Collars $9.00

RoamEO GPS Pet Location System

$399.00

http://www.purrfectfence.com/images/products/new-arch-top.jpg







Marketing Mix- Price

Objectives:• Price Skimming

• Technologically superior product

• More affordable than some alternatives

Price Variations: Shipping/Handling:

$9.59 per package Quantity Discounts:

2/10 Net 30 Accessories: jewelry,

beads, sparkles, embroidering, color/size variation,

United States Postal Service. 15 Apr. 2009 <https://wwwapps.ups.com/ctc/request>.







Marketing Mix- Promotion

Purr Innovations Charity Walk• St. Jude Children’s Hospital

– Denver, May– Portland, August– San Francisco, November– Phoenix, March

• Press release

Publicity







Sales Promotion

TradeshowsBuyers:• Global Pet Expo • WWPIA SuperZooConsumers:• America’s Family Pet Expo

– Contest to build database







Database & Direct Marketing

Database: Build database from online orders Build database from in store purchases Build database from tradeshow contests Email database members

Brochures: Sent to those in database Handed out at tradeshows/expos Available at humane societies







Advertising & Media

• Magazine Ads- half page– Cat Fancy100,000 circulated

– Cats USA25,000 circulated

• Trade Publications- articles– Pet Age– Pet Business

http://www.mbemagazines.com/products/Pets/picts/catfancy.jpg







Advertising & Media







Summary of Marketing Mix• Establish brand as technologically advanced, higher end

product aimed at creating peace of mind for the consumer and their cat.

• Promotions and advertising serve to generate awareness and drive consumers to our website.

• Distribution allows us to reach maximum number of consumers in our target market.

• Our brand logo and slogan both consist with our strategy to sell peace of mind to the consumer.

“Peace of Mind For Your Feline.”

One Year Time Schedule2009-2010 Time Schedule

2009 2010

February May June July August Sep Oct Nov Dec Jan Feb March April

Consumer Magazines

Cat Fancy

Cats USA

Trade Publications

PetAge

Pet Business

Trade Shows Global Pet Expo 2009

Obtain Buyers

WWPIA SuperZoo2009

Consumer Trade Show

America's Family Pet Expo

St. Jude's Charity Walk

Internet

Website

Catster

AdWords








Projected Profit & Loss

• Total sales: $31,968,511• COGS: $15,223,100• Expenses: $4,589,260 • EBT: $12,156,151• Taxes (35%): $3,646,845

• Net Profit: $8,509,306







ReferencesAPPA. "Industry Statistics & Trends." 2009. American Pet Products Association. 8 March. 2009

<http://www.americanpetproducts.org/press_industrytrends.asp>.

Brockman, Beverly K."The price of unconditional love: Consumer decision making for high-dollar veterinary care." Journal of Business Research May. 2008. 8 March. 2009 <http://www.sciencedirect.com/science/article/B6V7S-4PDSYV1-1/2/91cc15d21d73affe2a73bda828545be9>.

Euromonitor International. (2008). Pet Care Products in the US. Retrieved March 5, 2009 from the GMID database.

Euromonitor International. (2008). Pet Ownership. Retrieved April 5, 2009 from the GMID database.

"Industry Statistics & Trends." Welcome to the American Pet Products Association (APPA). APPA. 09 Apr. 2009 <http://www.americanpetproducts.org/press_industrytrends.asp>.

Publications, Inc. New Strategist. Who's Buying for Pets (Who's Buying). Ithaca: New Strategist Pubns Inc, 2006.

United States Postal Service. 15 Apr. 2009 <https://wwwapps.ups.com/ctc/request>.

"West Region - Income in the Past 12 Months (In 2007 Inflation-Adjusted Dollars)." American FactFinder.

U.S. Census Bureau. 09 Apr. 2009 <http://factfinder.census.gov>.

Questions?

PS



Documents

GPS Cat Collar Presented By Purr Innovations: Ryan Johnson, CEO & CFO Ross Kaplan-Winn, CMO & Senior Market Researcher Jennifer Voorhees, COO & President