Marketing Plan-

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Running head: HEALTHY FRUIT DOG TREATS CREATED BY DIVERSION BRANDS, LLC

Healthy Fruit Dog Treats Created by Diversion Brands, LLC

SAMPLE

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Table of Contents

1.0 Executive Summary 3

2.0 Situation Analysis 4

2.1 Market Summary 6

2.2 SWOT Analysis 8

2.3 Competition 10

2.4 Product (Service) Offering 12

2.5 Keys to Success 13

2.6 Critical Issues 14

3.0 Marketing Strategy 15

3.1 Mission 17

3.2 Marketing Objectives 18

3.3 Financial Objectives 19

3.4 Target Markets 20

3.5 Positioning 23

3.6 Strategies 24

3.7 Marketing Mix 25

3.8 Marketing Research 28

4.0 Controls 29

4.1 Implementation 30

4.2 Marketing Organization 31

4.3 Contingency Planning 32

5.0 Conclusion 33

References 34

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1.0 Executive Summary

Diversion Brands, LLC is ready to promote and launch happy dog! dog treats in a neighborhood

near you. The brand message of happy dog! is simple: A happy dog has a happy owner and a good

life. Diversion Brands, LLC is preparing to launch this healthy, fruit-based dog treat into the emerging

gourmet pet food industry.

Diversion Brands, LLC can effectively compete in this niche market due to the uniqueness of the

organic, fruit-based product. The specific segment of consumer in this growing market is the pet owner

who treats his/her dog as part of the family. In addition, the consumer is focused on the healthy diet of

his/her pet. Diversion Brands, LLC is marketing to the growing pet owner population who considers

his/her pet as important as any family member. The happy dog! dog treat is unique, yet affordable for

daily use.

Diversion Brands, LLC has a primary market objective to achieve 20% local market share in

Dubuque, Iowa and the Tri-State area after 24 months. The secondary market objective is to achieve 2%

market share in the State of Iowa after 36 months. The primary financial objective is to break even in

year one and by the third year have $5,000 in net income.

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2.0 Situation Analysis

Diversion Brands, LLC is a new company with the strategic intent to market healthy fruit-based

dog treats to the local market in Dubuque, Iowa. The marketing plan will create structure to establish

and build upon demand and distribution options in the local market. The product will focus on fruit-

based flavors such as tangerine, strawberry, cherry and blueberry for the dog treats.

The macro environment is very important to the success of the product launch. The

employment and income of the individuals will affect their buying power of a luxury item, in this case

dog treats. In addition, the family structure may influence pet ownership if there are children in the

home. Overall, the Iowa economy is steady for employment and typically has dual income earners.

The demographic s of Dubuque County consists of the following metrics (Census.gov, 2013):

 Estimated 95,097 in 2012 total population

 Individuals under 18 years 23.5%; Individuals 65+ years 15.3%

 Female 50%

 Percent of individuals 25+ years with High School graduate or higher is 90.5%

 Percent of individuals 25+ years with Bachelor’s degree or higher is 25.5%

 Median household income, 2007 – 2011 is $49,663

The economic characteristics of the State of Iowa include (Census.gov, 2013)

 Unemployment is at 5.5%

 All parents in the labor force is 74.2% who have children under 6 years old

 All parents in the labor force is 80.4% who have children from 6 to 17 years old

 78.8% of the workers are private wage and salary workers

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 Educational services, and health care and social assistance comprise 23.7% of

the industry workforce, followed by manufacturing at 14.7%

There are several areas for Diversion Brands, LLC to review in order to compete efficiently and

effectively in the local market. First, the final formulation of each product taste needs to be tested and

taste approved. The supplier relationships will need to be established for the product ingredients.

Secondly, policies and procedures need to be established to follow the Federal Food, Drug, and

Cosmetic Act (FDA) and Association of American Feed Control Officials (AAFCO) for the commercial pet

licensing under which dog treats are categorized (AAFCO.org, 2013). In addition, any regulatory

requirements from the State of Iowa need to be understood and incorporated into the product plan.

For example, Iowa has a $10 annual license fee and a $50 annual fee per product pet food 10 lb or less

(AAFCO.org, 2013).

Thirdly, the marketing and advertising plan need to be created for the overall strategy. This

includes, but not limited to social media, retail packaging and branding and booth presentation. The

reseller and distribution channel needs to be established for future growth opportunity. These will be

key components to create the need for the healthy organic fruit-based dog treat in many homes.

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2.1 Market Summary

The consumer market for organic, healthy fruit-based dog treats is rapidly expanding. In 2011,

there were approximately 70 million pet dogs in the United States (AVMA, 2011). This estimate

increased to 85 million dogs owned by households in 2012 (Taylor, 2013). The dog is really the

consumer since they eat the product however, the dog owners are the buyers and where the marketing

plan focuses its message. With the increase in pet ownership comes the opportunity to market to a

growing and select group of pet owners for the healthy, organic fruit-based dog treat.

According to the American Pets Product Association, estimated sales in 2013 in the U.S. for pet

food (which includes treats) will be $21.26 billion, and in 2012, the actual spend for pet food was $20.64

billion (americanpetproducts.org, 2013). Additional detail provided by the 2011-2012 APPA National

Pet Owners Survey, stated responses by U.S. owner showed they spent $70 annually on treats

(americanpetproducts.org, 2013).

In 2010, the United States the characteristics of generational pet ownership of dogs looked like

the following:

 Gen Y Adult (Age 18-29) 34.7%

 Gen X (Age 30-44) 42.4%

 Boomers (Age 45-64) 39.0%

 Seniors (Age 65+) 23.3%

Dog ownership comprised the largest sector of the pet ownership population and the ownership

rate remained grew from 2007 at 34.9% to 36.0% in 2010 for overall U.S. households (Pet Food in the

U.S., 9th Edition, 2011).

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As of 2010, United States households earning $70,000 or more account for 51% of the aggregate

pet market expenditure and these customers are spending their money on the premium pet products

(Taylor, 2013). In 2011, a survey from CouponCabin.com stated 68% of U.S. dog owners said economic

challenges did not affect their dog care spending. In addition, 21% of the survey respondents spent an

average of $100 or more per month on their dogs (Phillips-Donaldson, 2011).

There are two relevant trends in pet food spending which include the economy and the

humanization of pets. While the economy has placed individuals in situations where budgets are

required and spending habits changing, the pet owner feels good about spending a small dollar amount

on his/her pet. Based on the surveys, the average annual spend is between $70 -$100 per U.S.

household on dog treats. This small purchase creates a sense of happiness for the dog owner and in

turn, the happy pet.

The humanization of pets in the case of dogs means the pet owners are treating their dogs as

they would children in the family. People are taking their dogs with them on errands, letting them sleep

in their beds, purchasing clothes for them and purchasing treats for reward and recognition. Many

times people refer to their “furry kids” when asked about their family structure. People are including

dogs on the Christmas cards and part of family functions, which may include travel like vacations and

family reunions.

Diversion Brands, LLC will need to capitalize on this psychological and social belief the pet owner

holds of his/her dog. As part of the family, only the best treats should be given to the dogs, which hold

high nutritional and health values.

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2.2 SWOT Analysis

Strengths identified for Diversion Brands, LLC and the healthy fruit-based dog treat:

 High quality dog treat.

 Freshest dog treat available in the market.

 Follow and comply with FDA, AAFCO and state guidelines.

 Nutritionally balanced – no preservatives or artificial colors.

 Secondary marketing focus, in the area of pet allergies and pet owners sensitive to

calories for the dogs.

 Manufacturers, trade associations and media are educating and increasing the

awareness of proper pet nutrition for similar products.

 Owner has a strong reputation in the community and solid customer service

background.

 The local market area is in a tri-state geographic location, which includes Iowa, Illinois

and Wisconsin.

Weaknesses identified for Diversion Brands, LLC and the healthy fruit-based dog treat:

 A less expensive and/or larger selection of similar products may be available

commercially in the online market or at the regional based farm, home and auto retail

store.

 This product has not been marketed or distributed, nationwide, prior to its launch.

 This is a new product to the public and relatively unknown to the target market.

 No brand name associated with the product.

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 Production capabilities currently designed to meet demand at the Farmer’s Market

and retail locations of the Dubuque Regional Humane Society.

 The established gourmet pet treat makers have economies of scale production,

research and development capabilities along with financial advantage.

External Opportunities identified for Diversion Brands, LLC and the healthy fruit-based dog treat:

 Dog ownership continues to increase in the United States.

 The organic based treats are in an area, which seems to be recession proof.

 As people want to continue to improve personal health, so to becomes the focus to

improve the dog’s health.

 The trend of humanization of pets, specifically dogs, encourages the consumer to

spend on products, which mimic human tastes and preferences in lifestyle choices.

 Partnership with the Dubuque Regional Humane Society as a Board Member and

strong relationship with local veterinarians, to provide opportunity to sell the product

in brick and mortar locations.

Threats identified for Diversion Brands, LLC and the healthy fruit-based dog treat:

 Competition can invest in technology at a faster pace.

 Competition can use research and development activities to improve the product

itself and to create efficiencies in the manufacturing process.

 Competition continues to increase on a local, regional and national basis.

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2.3 Competition

There are strong organic pet food manufacturers and distributors in the gourmet dog pet food

and treat market. There are approximately 24 established brands and as an emerging market,

competition continues to increase across the country. The established brands have attractive

packaging, well created websites, and distribution channels.

Located in Northeast Minnesota and established in 1985, the Sojo’s mantra is making healthy

food and treats for dogs. This company does not use fillers, preservatives, artificial color or artificial

flavors. They utilize retail locations across the country to resell their products. They have distributors

across the U.S., including Puerto Rico and Canada. They are fully -integrated in social media, including

58 online retailers, along with an 800 number for customer support. A family owned business, the staff

is comprised of the 2 owners and 13 individuals. They have a national sales and marketing team,

customer service and production team. The competing products include treats with flavors like apple

dumpling, blueberry cobbler, duck and cherry and lastly, lamb and sweet potato (Sojo’s, 2013).

Based on a family pet that had food allergies, Grandma Lucy’s started in 1999 to develop safe

and healthy food treats. The company has 23 distributors and many retailers across the United States

and Canada. A family-owned business, which has continued its expansion over 13 years, they are

located in Irvine, CA. They produce both dog and cat food, along with treats for both. The competing

products include treats ,which are freeze- dried or organic ,like pumpkin, blueberry, apple and banana to

list a few. The company offers a rewards program for dog food purchases. They utilize a website and

have a customer service area (Grandma Lucy’s, 2013).

Stella and Chewy’s, located in Milwaukee, Wisconsin is a family-owned business that specializes

in dog and cat food and treats. It started with an animal rescue and led the owner to develop healthy

dinner and treats for her dog. The uniqueness of this organization is the dinners are raw and kept

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refrigerated. The treats are not competitive from the fruit perspective, and they carry only freeze-dried

meat based treats. They are in resellers across the United States, have an online presence with the

website and 70 online retailers, and a customer- support email address and phone number (Stella and

Chewy’s, 2013).

The remaining national brands in the marketplace forming the competition are

(goodkarmadog.com, 2013):

Barkworthies Bixbi CocoTherapy Crump’s Naturals

Etta Says! Fromm Healthy Dogma Himalayan Dog Chew

K9 Granola Factory Lincolnbark Northern Biscuit Orijen

Plato Pet Treats Polkadog Bakery Purebites Sam’s Yams

Snicky Snaks The Honest Kitchen Wet Noses Whole Life Pet Products

Zuke’s

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2.4 Product Offering

The healthy fruit-based treat serves a portion of pet owners who want to provide nutritional

treats to their dogs while also providing flavor and enjoyment to the dogs. The concern of many pet

owners is the chemical additives, sugars and fats, which can be detrimental to a pet’s health. Dogs are

omnivores, eating both meat and plants, so fruit is a perfect addition to the dog’s diet (Marlo, 2007).

For an overweight dog, serious health problems such as diabetes, heart disease and arthritis

could be present, states Edward Moser, V.D.M, DACVN, an adjunct member of the nutrition faculty at

the University of Pennsylvania School of Veterinary Medicine (Chen, 2010). Fruit-based treats support

the low-calorie, high fiber diet good for pets both overweight and not overweight.

The packaging for the treats would be in bags, re-sealable and recyclable. The size would be 8

oz or 10 oz with approximately 20 treats in each bag. An environmentally conscious organization, it

encourages recycling to reduce waste in the environment. The flavors of the treats would begin with

tangerine, strawberry, cherry and blueberry. The treats would have natural ingredients, no artificial

flavors or colors and no preservatives.

Healthy treats compliment the various uses by pet owners, from dog training rewards, going

into a kennel or simply on special occasions. As part of the family, the dog deserves the same quality of

treat as anyone in the family. Currently, there is a limited selection of healthy fruit-based treats

available in the market.

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2.5 Keys to Success

There are several keys to success in delivering a healthy fruit-based dog treat to the market.

First, the quality of product is critical to the customer loyalty factor and repeat purchasing. It is

necessary to maintain the quality so very little customer service issues, potential recalls or other

unknown issues arise for the product.

Secondly, financial funding to launch the product development and marketing will assist in

establishing a long-term product offering to the market. It will be important to continually review and

improve upon the product to meet the needs of the consumer.

Thirdly, establish a website and online presence through social media on Facebook and Twitter.

For market awareness and expansion, these will be critical areas. It is important to have easy-to-

navigate sites, which provide the information the consumer is seeking. In addition, the ability to

capitalize upon a customer -relationship management system, to provide capabilities such as emails and

newsletters will be important to the company to remain top of mind to the consumer.

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2.6 Critical Issues

The distribution process to the consumer will happen in stages for Diversion Brands, LLC. The

initial stage will include a small roll out of the product to the social network of family, friends and

acquaintances. The next roll out will include a booth at the Farmer’s Market in Dubuque, Iowa which is

held year-round. The Farmer’s Market is held outside from May thru September and inside from

October thru April. This incorporates vendors and visitors from the Tri-State area of Iowa, Illinois and

Wisconsin. The third phase will include placing the product at the two retail locations of the Dubuque

Regional Humane Society, which services all of Dubuque County. In addition, collaborate with local

veterinarians to offer the product in their respective office locations.

As the market penetration continues to expand, incorporating sales from the website and

forming a partnership with Theisen’s Home Farm and Auto retailer will expand the product offering both

nationally via the web and regionally via Theisen’s with 20 store locations in Iowa. The final phase will

create partnerships with resellers and distributors across the United States.

The goal of creating the need is meant to start small and grow exponentially so Diversion

Brands, LLC can meet the demand and maintain appropriate product supply.

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3.0 Marketing Strategy

In creating an integrated marketing strategy, Diversion Brands, LLC will focus on several

strategies, which build upon and complement each other. Brand awareness will be the key to launching

the product. The goal will be to build the customer database within 6 months and increase the

customer database by 25% in the following 6 months.

For brand awareness, Diversion Brands, LLC will fully integrate social media with the company.

Diversion Brands, LLC will develop a website along with the ability to have e-commerce purchase

capability of the products. Diversion Brands, LLC will utilize Twitter to post updates, articles and

information related to healthy dog treats and proper care for pet dogs. LinkedIn will focus on the

company and build a networking group of pet lovers, pet food resellers and pet food distributors.

Facebook will create the fun and friends image, company information and potentially engaging in prizes

for participation in activities. Pinterest will be centered as a B2C company to engage dog owners in

boards which provide value and the “wow” factor. Lastly, Instagram to engage in the visual content by

showing the products, happy and healthy dogs, etc. By utilizing all these channels effectively and

timely, an individual can connect at any time using their preferred means of communication.

In addition to social media, the initial marketing will take place at the booth at the Farmer’s

market. This will be the first location where the actual product will be sold in-person. The goal will be

to engage dog owners in company awareness and purchase the product. Following 6 months at the

Farmer’s market, brand awareness should increase by 45% and revenue generation should increase by

70%. The repeatability of the customer base at the Farmer’s market, along with the social media

presence will improve the brand awareness within the desired 12 months.

The Farmer’s market will also provide the research study for the consumer group as the taste

test market. These customers will be the test group to understand if the product is liked and desired by

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the dogs. This will assist with development of the various product flavors. When the consumers provide

feedback, either positive or negative, it will support plans to move the various product lines forward or

need for reformulation. With positive results, these consumers can be used in marketing the positive

feedback for the product.

For print advertising, in the development phase of the partnership with the Dubuque Regional

Humane Society (DRHS), Diversion Brands, LLC will purchase advertising in the print and email versions

of the DRHS monthly newsletter. This will support the product presence in the two retail locations.

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3.1 Mission

The mission of Diversion Brands, LLC is to deliver a healthy, natural fruit-based dog treat to the

consumer who is concerned about the health and well-being of his/her dog. With the rise in pet

ownership, the benefits of pet ownership reducing stress, and the overall rewards of companionship

means the value of a healthy and happy dog extends to the overall health and happiness in the owner’s

life.

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3.2 Marketing Objectives

In achieving the desired sales and revenue results, Diversion Brands, LLC will utilize a Customer

Relationship Management (CRM) system. The ability to capture and connect with those interested in

purchasing the product will be critical to the business success. By contracting with Salesforce.com, in

either the Group or Professional edition, it will improve sales productivity and grow revenue

opportunities.

The marketing objectives to be reached are the following:

 In 6 months, expand brand awareness by 45% by creating and building the

customer base from zero to 500 customers.

 In 6 months, track the click rate on the Company website and Facebook to

improve content value and increase by 35% from the initial 0% at start-up.

 In 12 months, using the customer database expand the brand awareness by an

additional 20%.

 In 12 months, improve the click to purchase rate by 15%.

 In 12 months, become the primary healthy fruit-based treat provider to the

retail stores of the Dubuque Regional Humane Society.

 In 24 months, become a local leader in manufacturing and selling of the healthy

fruit-based dog treats with 20% market share.

 In 36 months, secure shelf space at the retail store of Theisen’s Home Farm and

Auto Store in the 20 locations in Iowa.

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3.3 Financial Objectives

In order to reach the desired financial objectives, several partnerships need to be established to

build the brand awareness and sales opportunities. By the third year, Diversions Brands will need to

secure the shelf space at the regional store of Theisen’s Farm Home and Auto stores. To accomplish this

goal, Diversion Brands, LLC will engage with a pet food contract manufacturer and pet food industry

expert to improve the revenue cycle for the product sales.

The financial objectives to be reached are the following:

 In 6 months, have gross sales of $2000.00.

 In 12 months, have gross sales of $5000.00.

 In 12 months, improve cost-of-goods and production efficiency by 20%.

 In 12 months, have break-even income to expenses.

 In 24 months, increase the number of per unit sales by 65%.

 In 36 months, increase gross sales to $15,000.00.

 In 36 months, have net income of $5000.00.

With the additional marketing plan focus both online and print, the brand awareness will

continue to increase exponentially. The distribution channels continue to expand which also improves

the brand awareness. The long-term financial goal in five to seven years is expansion by resellers and

distributors across the United States. This will allow the company to invest in R&D and expansion of the

product line.

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3.4 Target Markets

The general target market for the healthy fruit-based dog treats are male and female pet

owners who have disposable incomes along with the desire to have healthy well-balanced dogs. There

are three main characteristics, which drive the purchasing power for this product. Those are age,

income and accessibility to computers and the internet.

In the 2010 census brief, the State of Iowa has more females than males although the sex ratio

is almost equal at 98.1% (Census.gov, 2013). Both males and females shop for the dog food and treats

in both the retail and grocery stores.

Age is an important factor in this target market. The median age in Iowa is 37.5 to 39.9 which

generally indicates a more established work career. In the State of Iowa 34.6% of the population is

between 18-44 years, 26.5% is between 45 to 64 years and 14.9% is over 65 years of age (Census.gov,

2013).

Another important factor is the computer and internet usage for households with access both at

home and outside the home (work, library, etc). For U.S. household incomes between $50,000 -

$99,999, 62.8% of households have computer and internet access. U.S. household incomes between

$100,000 to $149,999, is 79.4% with computer and internet access. In the Midwest, access averages

44.1% (Census.gov, 2013). Computer and internet access is very important for the brand awareness and

purchasing power for this product.

The demographic breakdown by individual characteristics, include the following for computer

and internet access (Census.gov):

 Male 60.0%; Female 60.3%

 Age 25-34 years – 68.5%

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 Age 35-44 years – 66.0%

 Age 45-64 years – 59.8%

 Age 65+ -- 31.7%

As mentioned earlier, the demographic s of education and income Dubuque County consists of

the following metrics (Census.gov, 2013):

 Percent of individuals 25+ years with High School graduate or higher is 90.5%

 Percent of individuals 25+ years with Bachelor’s degree or higher is 25.5%

 Median household income, 2007 – 2011 is $49,663

Dubuque County has proportionately a higher number of high-income households in the State

of Iowa. It is ranked with 252 – 883 households which is the 2nd highest measurement by the American

Community Survey from 2007 – 2011. There are 34,587 or more households, which equates to 2.160%

- 3.247% of concentration of the high-income households for Dubuque County (Census.gov, 2013).

As mentioned earlier, some of the economic characteristics of the State of Iowa include

(Census.gov, 2013):

 78.8% of the workers are private wage and salary workers

 Educational services, and health care and social assistance comprise 23.7% of

the industry workforce, followed by manufacturing at 14.7%

In 2010, the United States the characteristics of generational pet ownership of dogs looked like

the following:

 Gen Y Adult (Age 18-29) 34.7%

 Gen X (Age 30-44) 42.4%

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 Boomers (Age 45-64) 39.0%

 Seniors (Age 65+) 23.3%

Dog ownership comprised the largest sector of the pet ownership population and the ownership

rate remained grew from 2007 at 34.9% to 36.0% in 2010 for overall U.S. households (Pet Food in the

U.S., 9th Edition, 2011).

As it relates to the overall health of the citizens in the State of Iowa, according to the United

Health Foundation, Iowa ranked 20th in overall health in 2012 and 16th in 2011. Contributing factors to

this ranking are the few poor mental and physical health days per month and the high rate of high

school graduation (United Health Foundation, 2013). The overall health of the citizens in the state is an

important contributing factor when reaching the target market for the healthy fruit-based dog treat.

The target market is well positioned in this geographic area as a starting point to launch the

product. The age, income, accessibility to technology and the health of the general population points

directly to the purchasing segment of the desired population.

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3.5 Positioning

With this product produced by Diversion Brands, LLC it occupies a distinctive place in the minds

of the consumer in this target market. The product is in the infancy stage, approaching significant

growth as the consumer begins to equate their healthy lifestyle and proper diet, to the healthy lifestyle

and proper diet of his/her dog. For the treat market, the consumer is looking to purchase healthy

alternatives to the common dog bone, which is typically mass-produced and meat based. The healthy

fruit-based treat fills a gap that is currently available only on a limited basis.

The largest opportunity to fill in the consumer’s mind is to complement the humanization of

his/her dog. As an individual begins to evaluate his/her own diet, to eat healthy this includes the

portion of the meal, which is the dessert or treat. As with many desserts, individuals want to have a

tasty, fulfilling treat that creates a feeling of happiness. In turn, as the dog’s diet is analyzed the pet

owner wants the dog to have a healthy, yet satisfying treat as part of the dog’s diet.

The healthy fruit-based treat positions the product to benefit the health and well-being of the

dog. Currently, the consumer who leads a healthy lifestyle is aware of the product or becoming more

aware of the available offering. The use of the product will be as a standard daily use as a dessert/treat

or reward for positive behavior. The position of the product will be based on its uniqueness of the fruit

flavors and the quality it provides with the nutrition. It does not have artificial flavors, colors or

preservatives. Price will not be a positioning point, as it will be price competitive with other organic pet

treats on the market.

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3.6 Strategies

The market opportunity in the pet gourmet food category has a tremendous growth

opportunity, which is ready for rapid expansion. In this recovering economy, consumers are

psychologically searching for small purchases to make life a little happier. The friendship of the dog

owner to his/her dog is a target area to assure happiness in the home. The research has concluded this

type of purchase is part of the remaining budget. Along with the humanization of the dog as part of the

family, the gourmet dog treat becomes part of a normal shopping experience.

Diversion Brands, LLC built the marketing plan to complement the desired growth plan of the

company. Starting small with local awareness, building to limited retail stores, which complement

community involvement to the third stage of regional awareness in the State of Iowa. The fourth stage

is the implementation of national resellers and distributors across the United States. This supports the

financial planning required to build and grow the marketing and manufacturing processes.

The ability of Diversions Brands, LLC to provide the gourmet, premium pet product is unique to

the State of Iowa. There is minimal direct competition, which provides a competitive advantage for the

company. Research trends continue to demonstrate the infancy of this market and the opportunity for

tremendous growth.

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3.7 Marketing Mix

Product brand name: happy dog! dog treats

Features/Attributes:

 No artificial preservatives

 No artificial colors

 No fillers – corn or wheat

 Made with natural, organic ingredients

 Made with real fruit and other human quality ingredients

Warranty:

 100% satisfaction guaranteed

 Made fresh and stamped with expiration date for product use

 Made in the USA

Packaging:

 Recycled Packaging

 A window to view the product in the package. The window shape will be in the

form of a smile.

 Size of package will be in 8 oz or 10 oz bag

 The packaging will have a main color of golden yellow, which represents

happiness, joy and friendship. The writing will be in black or very dark brown.

For additional packaging options, purple, which symbolizes wisdom and royalty,

along with orange, which symbolizes energy and balance may be utilized.

Promotion:

Advertising will focus on creating brand awareness and knowledge of the new product and its

features. After creating the awareness of the brand, the goal to will be persuasive and encourage the

purchase of the product. The initial advertising campaign will be local in nature by having a booth at

the Farmer’s Market with print media available as a takeaway. Farmer’s Market is a year-round market,

outside from May thru October and inside from November thru April.

Diversion Brands, LLC will create a public relations strategy for happy dog! dog treats. In the

first year, happy dog! dog treats will be featured by the Chamber of Commerce in their monthly

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newsletter both print and online, the public radio spots featuring new companies and a one-time press

release to be included in the business section of the local newspaper called The Telegraph Herald. In

addition, Diversion Brands, LLC will become part of any print or online media offered by the Farmer’s

Market to promote its vendors. The message of happy dog! dog treats is simple: A happy dog has a

happy owner and a good life.

At 12 months, advertising will expand to the two Dubuque Regional Humane Society retail

stores. Shelf marketing copy will be created to highlight the product. The DRHS newsletter, both online

and print will feature a story about happy dog! dog treats and its benefits. At this time, a potential sales

promotion will be created, such as a 10% off coupon good for 3 months, available only for purchase at

the DRHS. This will promote retail traffic at the DRHS. Simultaneously, and from the beginning, social

media will be fully integrated to promote the education of the company and product along with the

ability to purchase the product.

The many forms of media and public relations within the first 2 years will be relatively low cost.

The budget will be reflective of the local market awareness, and the social media options will build a

customer following. The results of the advertising campaigns should support the goal of 20% local

market share after 24 months.

Place/Distribution:

Diversion Brands, LLC will use multiple channels to support the growth of happy dog! dog

treats. The online website will feature the direct purchase from the buyer and shipping from the

company. The Farmer’s Market supports the direct marketing channel as well, from the company

booth to the final customer. As the business begins to expand, the next channel is the retail stores of

the Dubuque Regional Humane Society. In this manner, the company will have a two-level channel as

the supplier to the retail store.

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At the point of securing the partnership with Theisen’s Home Farm and Auto stores with their 20

locations in Iowa, a distribution relationship will be established. The main distribution center for

Theisen’s is located in Dubuque, and Diversion Brands, LLC will collaborate to supply and ship most

effectively. At the market share continues to grow, the pet food industry has established marketing

channels, which include resellers and distributors. The key component will be to attend trade shows

and network to build partners who will resell the product in boutique shops, and those who will

distribute it to larger chain stores.

Building the relationships will overcome the challenge of brand awareness and support of new

product entry. One challenge is the established relationships of those in the product line on a national

basis. However, the niche area of this product provides the uniqueness the resellers and distributors

will want and need to support the consumer demand. Channel partner relationships will be promoted

on the website and customers will be directed to make purchases in their local communities. This will

create stronger relationships with the resellers. In developing the channel strategy with resellers, it will

be a coordinated rollout on a geographic basis. Selecting areas of the country and focusing on success

in one area before building new relationships in the next area. This will assist in forecasting and

planning for demand and manufacturing.

Price:

Pricing of this product is straightforward. The 8 oz bag will cost $6.99 + tax, and the 10 oz bag

will cost $7.29 + tax. There are no differences based on geography or bundling of products. The federal

regulations and the state regulations will be followed for all manufacturing and licensing processes and

procedures.

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3.8 Marketing Research

The initial marketing research provided for solid data to support the idea and launch which

included data from the U.S. Census Bureau and the American Pet Products Association. Along with

data from First Research, the information provided necessary detail to explain nuances of the industry

and created a marketing plan, which understood the purchase probability of the consumer with this

product.

The Food and Drug Administration provided guidance regarding the manufacturing process and

commercial pet food requirements by State. The initial test market included family, friends, neighbors

and acquaintances who introduced the product to a variety of dogs. This introduction allowed happy

dog! dog treats to continue modifying the formulation process for tasty treats.

Diversion Brands, LLC investigated the competition in the gourmet pet food industry. The

review included sampling the actual product, understanding how and where manufacturing of the

product was completed, and packaging and pricing comparisons. Taste testing the samples on personal

pets was also included to understand the dog’s response.

Prior to the final product launch for happy dog! dog treats, additional statistical data is needed

to confirm and verify the growing market. This data would need to be purchased. There are several

industry groups to join including, but not limited to American Pet Products Association, Pet Food

Industry and Pet Food Institute. All of these organizations provide monthly information and annual

survey data on the premium pet food buyer, the national pet market opportunities and pet food

manufacturing.

Results from reviewing this data will assist in building a superior happy dog! dog treat which

promotes the message of “a happy dog has a happy owner and a good life”.

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4.0 Controls

Diversion Brands, LLC will utilize the profitability control model of marketing controls to assess

which marketing activities and programs support the growth of the product and organization. As the

organization launches and builds product awareness, reviewing the profitability of the sales, customer

growth and expansion in the various channels will determine if the marketing mix complements the

company’s sales.

Diversion Brands, LLC will review the profit-and-loss statements to have a clear understanding of

the net profit for the organization. The review of the marketing mix will determine which areas need to

modified, changed or removed to best support the growth of the product.

Diversions Brands, LLC will also keep detailed records based on customer feedback, focused

especially on satisfaction, complaints and repurchase rates. The greater connectivity to the customer,

the greater loyalty the customer will have with the happy dog! product.

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4.1 Implementation

Marketing resource management will be a key component to understanding the brand

awareness of happy dog! dog treats in the market channels. The gradual rollout of the product with

the defined marketing activities at each stage will be measured for effectiveness. As the visibility of the

product increases, the marketing activities will also increase.

A marketing calendar will coordinate all marketing activities across the channels of

communication. Coordination of the brand message and awareness will be critical to reach the goals of

market penetration. The social media strategy will provide real-time activity and responses to the

marketing efforts online.

In 12 months, brand awareness and building the customer database is essential to the launch of

the product. After 24 months, the goal is 20% local market share in Dubuque, Iowa. After 36 months,

the goal is 2% market share in the 20 store locations of Theisen’s Home, Farm and Auto store.

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4.2 Marketing Organization

Diversion Brands, LLC employs three individuals. Amy Breitfelder, Chief Marketing Officer; Tim

Breitfelder, Chief Executive Officer; and Andrew Breitfelder, Production Coordinator. Amy Breitfelder is

responsible for the public relations, marketing activities and channel relationships. Tim Breitfelder is

responsible for the financial monitoring and reporting. Andrew Breitfelder is responsible for the

production and product packaging. He is also responsible for the supply management and delivery.

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4.3 Contingency Planning

Diversion Brands, LLC plans to have a tiered customer support plan. Initially, the organization

will have an email address for customers to send communication regarding positive or negative

feedback regarding the happy dog! dog treats. The feedback will allow the customer to include

demographic information, including his/her phone number for direct contact.

As the organization grows, an 800-number will be established for the resellers and distributors,

as well as customers to report positive and negative experiences with the product. The customer

service 800-number response team will be outsourced to support this necessary component for superior

customer service.

In the event of any production issues, a back-up facility location will be available to maintain

product supply and availability. If the organization grows at a faster rate than planned, Diversion

Brands, LLC will have a contingency plan for rapid expansion. By building the relationships with those in

the industry, it would be possible to review for mergers or acquisitions.

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5.0 Conclusion

Diversion Brands, LLC is poised to launch a coordinated and comprehensive marketing plan for

happy dog! dog treats. This unique product fills a void in a niche market for gourmet dog treats. The

opportunity to create, launch and market a product to satisfy a consumer focused on the health and

wellness of his/her pet dog is exciting. Utilizing the scope and depth of social media, along with

traditional forms of marketing like print and word-of-mouth advertising creates brand awareness and

brand control of a product unique to the Tri-State area, the State of Iowa and nationally.

Diversion Brands, LLC plans to produce a high-quality product and market to the niche consumer

who is sensitive to his/her dog’s happiness and satisfaction for dog treats. The message is simple:

happy dog! dog treats make a dog happy, an owner happy and a good life for everyone (including the

animal) in the family.

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Chen, Jennifer. (2010, September/October). Paunchy Pet? Natural Health. Vol. 40 Issue 7, p22.

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Donaldson/Thank_goodness_for_humanization_of_pets.html

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References

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May 30, 2013, from http://www.franchisehelp.com/industry-reports/pet-care-industry-report

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