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APPENDIX
The following is an example of a marketing plan, which shows how the marketing planning process could be implemented. This model is a useful guide if you have to prepare a marketing plan.
Note that due to corporate confidentiality, some of the financial figures are not disclosed or have been changed. The authors would like to thank Paul Banker and Michael Parness from Outward Hound; and UTS students Rachel Montgomery, Isabel Tran, Stephanie Moore, Catherine Fu, Alexis Georgiou and Treylone Federici for their assistance with the plan.
Marketing plan Outward Hound: Fun Feeder bowl
Executive summary This report is the marketing plan for Outward Hound in Australia for 2018.
The purpose of this marketing plan is to outline the complete marketing strategy for a new product, the Fun Feeder dog bowl. The bowl features ridges and mazes that keep dogs engaged for up to ten times longer at mealtime. Eating is slowed to a healthy pace, subsequently improving digestion.
Australians are increasingly interested in creating and maintaining a healthy lifestyle for their pets, and there is a gap in the pet accessory market for a slow-feeding dog bowl that makes dining healthy and fun.
Mission statement. Improving lives of pet parents with meaningful innovations.
Corporate vision: To be the world leader relentlessly focused on delivering intuitive, durable, engaging and fun pet product experiences that Raise The Woof.
Corporate values: We live our values every day to always Raise The . . .
We love dogs as much as they love us.
One team. One dream. One vision.
Our culture thrives on passion, innovation and integrity.
Fun-ergy!
Six objectives are set, with three specifically relating to the Fun Feeder. Specific objectives relating to the Fun Feeder are as follows.
Marketing objective:
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• to increase distribution of Outward Hound’s Fun Feeder in Australia by 10 per cent within 12 months. Sales objective:
• to achieve a 10 per cent increase in sales of the Fun Feeder in 2018 through online and retail sales. Communication objective:
• to increase product awareness of the Fun Feeder by 20 per cent within 12 months. Three market segments are identified:
• career-driven individuals • early innovators • pet lovers.
The marketing mix strategy will consist of the following.
Product. The Fun Feeder is a healthy non-slip slow feeder.
Price. Five variations of the product priced from RRP$15.99 to RRP$49.99.
Place. Online and pet specialty retailers, including Petbarn, Pet Shop Direct and Australian Pet Suppliers.
Promotion. The Fun Feeder’s campaign theme is ‘making dining healthy and fun’ and will include catalogue advertisements and competitions, sponsorship of major dog shows, shelf displays and several activities on social media channels.
The proposed campaign will span for one full year from January to December. The management of Outward Hound will be responsible for the implementation of the media plan.
The campaign will be evaluated via focus groups and continuous online monitoring.
Introduction Since entering the Australian market, Outward Hound (http://outwardhound.com) has carried out regular low-key marketing activities to promote their products. Although the company is based in the United States, local awareness of the brand and its products is growing. The Fun Feeder bowl is new to the Australian market and Outward Hound has an opportunity to educate consumers in the benefits of the slow-feed bowl and promote the Outward Hound brand name.
The company is currently in the growth stage of the product life cycle and is looking for marketing opportunities to assist in expansion. While Outward Hound creates a variety of high-quality toys, chews, games, gear and feeders, this report will focus on marketing the Fun Feeder bowls within Australia, with the campaign theme ‘making dining healthy and fun’.
Situation analysis Company analysis
Outward Hound, formerly The Kyjen Company, was founded by Kyle Hansen (CWO — Chief Woof Officer) and is based in Centennial, Colorado, USA. The marketing department consists of Michael
Parness, chief marketing officer, and Paul Banker, senior manager of content marketing. They are responsible for Outward Hound’s marketing communications, including the brand image and brand positioning. Outward Hound primarily features their marketing campaigns online, through their website, YouTube, Facebook and other social media accounts.
Outward Hound Products are sold around the world and are distributed in Australia through several retailers including Petbarn, Woof N’ Wag and Lucky Pet.
Consumers view Outward Hound as a caring, fun and exciting brand that is like no other pet accessory company. It develops a relationship with consumers through their shared love for dogs, which gives the brand extra credibility.
Environment analysis The purpose of analysing the marketing environment is to identify the possible external factors.
Political and legal factors Outward Hound exports their products to countries all over the world, meaning they have to abide by laws and minimum standards in many countries. Within Australia, each state has legislation to ensure the welfare of pets. There are numerous regulations that set conditions and specifications for pet and pet food–related products — these must be constantly reviewed.
Economic factors A major economic factor that affects the sales of Outward Hound products is the exchange rate between the US and Australian dollars, as all products are imported from the US. The higher the US dollar, the more expensive it is to import the products to Australia, making it harder to sell to Australian retailers. The general condition of the economy can also affect sales, as if the economy is slow, pet owners are less inclined to spend extra money on their pets, or replace products.
Social factors Outward Hound’s main demographic is women aged between 35 and 60, who are either married or in a relationship. High-income households have been identified as a dominant force in the industry — it is estimated that three-fifths of pet industry spending comes from this group. These owners are expected to be a driving force behind the uptake of ‘premiumisation’ products, as they seek the best products for their companions (Stewart, 2015). However, research has also identified the Millennial generation (aged between 18 and 33) as a growing market segment. It is projected that Millennials will have greater spending power than Baby Boomers by 2018 (Mantle, 2015).
Technological factors In recent years, the most successful pet-related products have resulted from improvements, instead of significant inventions. With Millennials soon to become the largest spenders on dog products, it is important that manufacturers embrace technology and innovation to design and produce engaging toys and habitats. As consumers become more educated, they are demanding that toys be eco-
friendly, healthy and safe. As such, Outward Hound Fun Feeder bowls are designed to provide efficient meal-lengthening ridges and mazes.
Environmental factors A significant trend in the pet industry is premiumisation, which has caused a rise in organic and natural treats, food and toys. Dog owners are pushing for more environmentally sustainable materials to be used in the production of pet products as they become more concerned with their impact on the environment. Outward Hound is a member of the Pet Industry Sustainability Coalition and is dedicated to implementing best practice for the benefit of the environment, community and pets (Outward Hound, 2016). Fun Feeder bowls are manufactured using environmentally-friendly materials that are BPA, PVC and phthalate-free.
Cultural factors A joint study in 2005 by the RSPCA and researchers from the School of Veterinary Science at the University of Sydney found that 33.5 per cent of Australia’s dogs are overweight and 7.6 per cent are obese (Pet Obesity, 2005). Therefore, in recent years there has been growing concern in relation to overweight dogs. This has resulted in the development of many innovative products aimed at lowering the chances of obesity-related health issues in dogs, as well as a trend to exercise pets regularly, feed them a balanced diet and practice portion control. Fun Feeder bowls will keep pups engaged for up to ten times longer at mealtime, which improves digestion by helping them eat at a healthy pace.
Competitive analysis Dogs are the most common household pet in Australia, with an estimated 4.2 million dogs in the country — around 19 for every 100 people (AVA, 2013). The pet product industry is large and very competitive, with a lot of overlap between products. Having differentiated products therefore gives companies significant competitive advantage. The main competitors are outlined in table 1.
T A B L E 1 Major competitors
Company Background
KONG • Dog toys and treats • Started in 1976 • Strong and durable toys; the most popular product is a rubber snowman-shaped pet toy line named the
KONG.
KONG is an extremely viable competitor in the pet toy and product industry. Their long history of
developing exceptionally durable toys makes them a direct competitor for Outward Hound. KONG has sold 50 million of their iconic toys since starting in 1976. With a similar edge for innovation and high-quality
products, KONG presents a threat to Outward Hound market share in Australia.
Nylabone • Dog chew toys shaped like bones • Started in 1955 • Tough, long-lasting dog bones, made of nylon, with multiple sizes, shapes and flavours.
Company Background
Nylabone is a strong competitor for Outward Hound, as they offer high-quality products, with a long history in producing dog toys. Their iconic products are sold in all Australian pet retailers, giving them a
competitive advantage, as their products can be easily purchased.
Customer analysis Outward Hound’s primary customers are ‘pet parents’, specifically, dog owners who are looking for new and innovative designs for their pets. Further, their products are designed for dog owners who are concerned with their pet’s health, digestion and overall wellbeing. Outward Hound’s target market can be described as ‘petaholics’ — people who go over and above for their pets. It is hard to generalise pet owners; for example, age and income can range considerably, although the main demographic is women aged between 35 and 60, who are either married or in a relationship, and live in a high income household.
Outward Hound identifies their consumers’ attitudes as active, on the go, social and sharing. They are looking for pragmatic, obvious and emotional solutions to enhance their dog’s lives. They further identify the main drivers of consumer purchases as ingenuity, social, active, health, quality and relevance (Outward Hound, 2014).
Dogs are the most commonly-owned pet in Australia — they can be found in 39 per cent of households. In fact, there is a higher proportion of Australians living in a household that includes dogs and cats than with a child under the age of 16 (Roy Morgan, 2015). Companionship is cited by seven out of ten Australians as the main reason for getting a dog. Today, most pet owners consider their pets to be members of the family. This has a powerful impact on how people look after their pets and influences buying behaviour. Pet parents want the best for their dogs, so they are always on the lookout for outstanding products (Australian Veterinary Association, 2013).
The buying behaviour and spending nature of this target market is significantly influenced by age. Married couples without children at home, most of them empty nesters, spend more than the average household on pets. Baby Boomers are currently the largest spenders in the pet market and they are particularly health-focused. Pet parents are also increasingly concerned with ‘the green initiative’, and they expect companies to maintain corporate social responsibility (High, 2011).
SWOT analysis From the evaluation undertaken in the situation analysis, the points highlighted above have been identified as strengths, weaknesses, opportunities or threats. These areas will be addressed throughout the remainder of the plan.
SWOT analysis
Strengths
• Offer unique dog products like no other.
Weaknesses
• Currently only engage in online marketing, which limits their reach to new customers.
SWOT analysis
• Reputation for caring for dogs and producing a durable,
high-quality product.
• Leaders in creating innovative and engaging dog products.
• Limited advertising exposure in Australia, therefore
lacking a brand image in the Australian market except
for current customers.
Opportunities
• Concentrating on developing more eco-friendly and
sustainable dog products.
• Use other marketing such as television, print and outdoor advertising.
• Expanding sales by focusing on specific products such
as the Fun Feeder.
Threats
• Intense competition from other pet brands.
• Pet industry easily attracts entrepreneurs entering the
market with innovative products. • Threat of imitation from competitors.
Objectives Marketing objectives
• To achieve 25 per cent growth in Outward Hound’s online customer base by the end of the first year.
• To gain 500 new subscribers to Outward Hound’s email list by the end of 2018. • To increase distribution of Outward Hound’s Fun Feeder in Australia by 10 per cent within 12
months.
Sales objectives
• To achieve a 10 per cent increase in sales of the Fun Feeder in Year 2018 through online and retail sales.
Communication objectives
• To increase product awareness of the Fun Feeder by 20 per cent in 2018. • To maintain a favourable attitude towards Outward Hound and reach at least 50 per cent of the
intended target market with the brand name.
Target market Three main market segments have been identified.
Career driven individuals
Career driven individuals
This market segment includes people who work long hours and have limited time to spend with their dogs. As the Fun
Feeder is creatively designed with meal-lengthening ridges and mazes, career driven individuals do not have to slowly feed or watch their dog eat. Instead, the Fun Feeder slows down the dog’s eating pace by ten times the average eating
time.
Buying behaviour Most career driven individuals are between the ages of 23 and 35 years old, and are often single who look for some companionship after a long day at work. They often save their income and are more likely to spend on luxury products. Thus, price is a
small purchasing decision factor.
Shopping habits Due to their tight schedules, this market group tends to make purchases through online platforms.
Media consumption Social media, websites, billboards
Size 20 per cent (of target market)
Demographics Single, between the ages of 23 and 35, either female or male
Early innovators
This market segment includes all consumers who are willing to try new advanced products. The Fun Feeder is different from the traditional dog bowl. The Fun Feeder is made available in different maze designs, colours and sizes. It is made
with high-quality, ABS plastic with a non-slip base.
Buying behaviour Although this target market is willing to try products as they become available, they are often well-educated and undertake personal product research before purchasing the product.
Shopping habits This target market would be more suited to an in-store purchasing experience to allow for browsing. However, early innovators tend to purchase products soon
after the launch and often make recommendations to their friends.
Media consumption Social media, product reviews, pet blogs
Size 10 per cent (of target market)
Demographics Mainly male, between the ages of 21 and 35
Pet lovers
Consumers who have a strong, deep connection with their pet(s). Pet lovers are very passionate about their pets and look at their pets as a family member.
Buying behaviour Price is a small purchasing decision factor, and pet lovers will often spend large amounts of money for their beloved pet(s).
Pet lovers
Shopping habits This target segment can be easily marketed to and tends to purchase on an impulse.
Media consumption Social media, outdoor advertising, print magazines
Size 70 per cent (of target market)
Demographics Can be families, mainly women aged 35–60, who are either married or in a relationship, and live in a high income household. Can also be retired consumers or widowed, and are passionate about their pets.
Marketing mix strategy Product The product highlighted in this marketing plan is the Outward Hound Fun Feeder dog bowl. The bowl features meal-lengthening ridges and mazes that keep dogs engaged for up to ten-times longer at mealtime. This results in improved digestion, decreased bloating and regurgitation, and lower levels of canine obesity. The bowl is made with high-quality, food-safe ABS plastic and was rated Modern Dog’s favourite find of 2014.
It is available in three unique colours (orange, purple and teal) and designs (mat, bowl and 3-in-1 feeder). The Fun Feeder bowl also features a slip-resistant base to prevent sliding and food spillage. Fun Feeder bowls are top-rack dishwasher safe, BPA, PVC and phthalate-free, and available in mini (two-cup) and regular (four-cup) sizes.
Price Outward Hound offers five different variations of the Fun Feeder, all at different recommended retail prices.
Product RRP
Fun Feeder Regular $39.99
Fun Feeder Mini $29.99
Premium 3-in-1 Fun Feeder $49.99
Fun Feeder Mat $19.99
Fun Feeder Mat Mini $15.99
Distribution (place) Outward Hound has an extensive distribution network comprising multiple channels to allow their products to be purchased by consumers all over the world. They use channels such as online — both
their website and Amazon — as well as regular retail pet shops. In Australia they sell their products in most pet specialty retail stores, including Petbarn, Pet Shop Direct and Australian Pet Suppliers, and numerous Australian online pet suppliers.
Promotion It is recommended that Outward Hound continue its promotional strategy focused on communicating the high-quality, unique and stimulating nature of their products. Their media strategy is primarily online and uses quirky ideas and images, appealing to its target audience’s love for dogs. As the Fun Feeder bowl is new to the Australian market, this product is a chance to educate consumers in understanding the benefits of a slow-feed bowl as well as promoting the Outward Hound brand name. The Fun Feeder’s new campaign theme is ‘making dining healthy and fun’.
Some of the promotional activities that are planned include:
• collaborative advertising with pet stores, including advertising in pet store catalogues • catalogue advertising combined with a competition for Outward Hound prizes • event sponsorship at the Sydney Royal Easter Show and Royal Melbourne Show dog exhibitions • small point of sale Fun Feeder shelf displays • Fun Feeder bowls prominently featured on Outward Hound’s social media pages: Facebook,
Instagram, Twitter and Pinterest • links on the company website to all articles and other press coverage on the Fun Feeder, including
articles written by Yahoo and the BarkPost • online advertisement ‘Go beyond the bowl!’ one-minute video www.youtube.com/watch?
v=MnWZbMKEpzY.
Budget The primary consideration when designing the budget for this marketing plan is to ensure that the money spent to achieve the objectives is realistic relative to the amount that Outward Hound is able and willing to outlay on just one of their products in Australia — remembering that it is a small company. However, it is expected that promoting the Fun Feeder will also raise awareness of the Outward Hound brand.
The budget for this campaign is $40 000. Table 2 outlines the promotion budget for the Fun Feeder in Australia.
T A B L E 2 Fun Feeder promotion budget
Production Media Total
Catalogue advertisements
Catalogue competition
2 000 8 000
5 000
10 000
5 000
Sponsorship
Event 10 000 10 000
Production Media Total
Point of sale
Shelf display 5 000 5 000
Social media
Maintaining social media
sites
10 000 10 000
Total 17 000 23 000 40 000
Note: The above figures have been changed for privacy reasons.
Implementation Print The Fun Feeder will have a quarter-page advertisement in the Dog Lovers catalogue every three months. The catalogue is distributed to the main pet stores in Australia, particularly those that stock Outward Hound products.
As well as the advertisement, the catalogue will feature a full-page story on the Fun Feeder and a special Christmas-themed ad for the December issue. There will also be a competition where owners can submit pictures of their dog using a Fun Feeder and they will be in the draw to win more Outward Hound products.
Sponsorship Outward Hound will be in attendance at the Sydney Royal Easter Show (April) and Royal Melbourne Show (September) as an official sponsor of the dog exhibitions. Outward Hound will be an official sponsor of the exhibitions, as well as a named sponsor of four awards. There will be an Outward Hound stall at both exhibitions to promote the Fun Feeder. These events will allow dog-loving people to interact directly with the Fun Feeder before deciding to purchase, enabling them to fully understand its functionalities. This will get the product and the brand known to a large number of potential customers.
Point of sale A small point of sale shelf display will be placed near the Fun Feeder bowls at leading retail outlets, such as Petbarn. This will get the attention of potential customers as they are browsing the store, or specifically looking for a new bowl. This will particularly be shown in November and December, leading into the holiday season.
Internet and interactive media The Fun Feeder will have a significant online presence, with many purchasers opting to buy through this channel. All interactive online activities will lead customers to the Fun Feeder purchase page on the Outward Hound website. There will be a strong presence on Outward Hound’s social media pages:
Facebook, Instagram, Twitter and Pinterest. The online advertisement ‘Go beyond the bowl!’ will also feature on these sites.
Promotional schedule
Tactic Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Catalogue advertisements
Catalogue competitions
Sponsorship
Event
Point of sale
Display
Social media
Maintaining social media
Campaign evaluation
This campaign aims to increase awareness of the Fun Feeder product, as well as the Outward Hound brand name in Australia. The campaign is trying to achieve this through traditional media, particularly at the retail outlets, and through social media.
Pre- and post- campaign launch feedback will be considered to ensure the campaign is effectively evaluated. Marketing, sales and communications objectives will be tested allowing for revisions in activities to be made before, during and after the campaign to maximise the campaign’s effectiveness and achieve the objectives.
Pre-test Focus groups consisting of dog owners will be used to gain qualitative data that will be used to assess the marketing strategies and their ability to satisfy the communications objectives. Throughout the year and in different locations, five groups of ten subjects will be randomly sampled to gain a strong
understanding of the target market’s knowledge and perceptions of Fun Feeder bowls and Outward Hound in general.
Campaign monitoring Marketing tactics will be regularly monitored to allow for optimisations that drive more effective activities. The websites will be measured on click-through rates. Regular monitoring of sales and feedback will also allow the campaign to improve. Focus groups will be used during the campaign to gauge the awareness of the product, brand and slogan, and any changes in attitudes that might be significant for future campaigns.
Conclusion
This report sets out the proposed marketing plan that Outward Hound will be implementing for its Fun Feeder product. This report provides an overview of the local market. The objectives and target markets have been presented and a plan recommended in order to achieve these objectives. A minimum budget of $40 000 has been set and the promotional activities will include catalogue advertising, dog show sponsorship, point of sale displays and social media activities.
Finally, with changing economic, competitor, consumer and media trends, it is strongly recommended to regularly monitor the external environment to allow for contingency strategies and ultimately ensure the marketing plan provides Outward Hound with the best possible sustainable market growth.
References
Ava.com.au. (2016). Pet obesity — Australian Veterinary Association. [online] Available at: www.ava.com.au/news/media-centre/hot-topics.
Australian Veterinary Association (2013). Pet ownership statistics — Australian Veterinary Association. [online] Available at: www.ava.com.au/news/media-centre/hot-topics-4.
High, T. 2011, Pet Smart Situational Analysis, Pet Smart. Available at: https://adperspective.files.wordpress.com/2013/01/situational-analysis-final-pdf.pdf.
Mantle, S. (2016). Pet Industry 2015 — Pet Age. [online] Petage.com. Available at: www.petage.com/pet-industry-2015.
Outward Hound. (2016). Company — Outward Hound. [online] Available at: http://outwardhound.com/company.
Outward Hound Style Guide. (2014). 1st ed. [ebook] Clever Creative, pp.1–16. Available at:www.clevercreative.com/wp-content/uploads/2015/10/CC_OutwardHound_StyleGuide_Approval- copy.pdf.
Roy Morgan. (2016). ‘Doggone it: pet ownership in Australia’. [online] Available at: www.roymorgan.com/findings/6272-pet-ownership-in-australia-20150603234.
Stewart, C. (2016). ‘Projected 2016 Trends in the Pet Industry’. [online] Blog.marketresearch.com. Available at: http://blog.marketresearch.com/projected-2016-trends-in-the-pet-industry.