Is Your Business Pet-Friendly? Why Not?

A good article by SmartMoney Magazine on pet travel also highlights how diverse businesses profit by leveraging their existing pet-owning customer base.

Airlines, hotels, restaurants and retailers like Orvis are mentioned.

Check it out: "Pack Mentality: More People Than Ever Are Traveling With Pets," by Anne Kadet, SmartMoney Magazine, June 13, 2012
 

Pet Industry 2011 Strategic Outlook

A new market research report for pet industry business development is available for purchase online.

U.S. consumer spending continued to grow across all four segments of the pet industry, cementing its reputation as "recession resistant." But shifting demographics reveal changing patterns by core demographic groups. U.S. pet owner spending by age, income, higher income, household composition, and region are charted, with an Executive Summary by Dillon Media.

The Pet Industry 2011 Strategic Outlook analyzes nationwide spending, trends and business involvement in the industry, including how it fared during the recession and opportunities moving forward. The data aggregate consumer spending on all pets in four main segments: Pet Food, Veterinary Services, Pet Purchase Supplies & OTC Meds, and Pet Services.

The latest available data are from 2009, with forecasts through 2015. This report is valuable to participants in the nationwide pet retail market, for business plan citations, for product development strategy, for marketing and advertising plans, and for an overview of the pet industry landscape.
 

Toyota and Honda Dog-Friendly Cars

Honda's dog-friendly concept car introduced in 2005 has evolved into a comprehensive marketing campaign that is creating sales in Japan, according to Reuters ("Dog-lovers of the world unite...around Honda," by Chang Ran-Kim, Reuters, May 29, 2008).

Honda Dog uses its 1.5 million monthly website visitors to sell cars and its Travel Dog line of pet accessories.

Not to be outdone, Toyota also has a Japanese website for dog owners featuring the Corolla called C Loves Dog.

In case you don't read Japanese, it's still fun to click around these sites. I assume it's just a matter of time until the U.S. versions come out as the auto industry aggressively seeks to differentiate products while appealing to broad demographics.

Closer to home, DogCars.com helps American pet parents choose the best pet-friendly cars, by reviewing new models specifically from a dog owner's perspective.

Read all posts about dog cars.




 

Pet Business News

VCA Antech, Inc. (NASDAQ:WOOF) reported a profitable first quarter of 2008 as it continues to acquire animal hospitals and grow its laboratory business. Although elective procedures tend to diminish when consumers cut back, this strength highlights the fact that the bar is moving; some services once considered elective are now being considered necessities. VCA seems to be on its way to becoming the managed care company for pets, primarily dogs and cats.

Utilizing the pet industry to differentiate a business in a crowded market has been a popular strategy the last few years. Check out Peninsula House Hound dog-friendly real estate website, with features like 'Search Homes Near Dog Parks'.

Anyone watch Nascar this weekend? Dog food marketing is big business in the U.S., and Mars, Inc.'s Pedigree brand is prominently featured on Kyle Busch's number 18 car. This sports sponsorship by Mars draws an average of about 6 million viewers per race, according to ACNielsen ratings for April and May of 2008. But the company didn't stop there; Mars' Nascar marketing campaign is directly tied to its adoption drive, illustrating the importance of the adoption channel for generating long-term brand loyalty in the pet sector.
 

Pet Vacuum Cleaners

Browsing Williams-Sonoma's website, I noticed a $799 Miele Dog & Cat vacuum cleaner, made specifically to handle pet hair.

It seems the response to pet owner demographics, or at least Consumer Reports testing in 2006, has been swift, with pet-specific lines now available from Bissell, Eureka and Dyson, all retailing for under $200.



Two-thirds of American households own a pet of some sort. Forty percent of U.S. households own a dog. That's a large market, with lots of pet hair, suitable for an expensive dog & cat vac. Eight hundred bucks is a lot for a vacuum cleaner, but they are really nice. Even the lowest-end Miele model (the one I own) is fantastic.
 

Pet Owner Spending Trends in the U.S.

A new report has just been published on nationwide pet owner spending trends.

The aging population, childless consumers and the ascendancy of high-income baby boomers are analyzed by their pet spending habits. Charts and tables are included using data from the Department of Labor, Bureau of Labor Statistics that highlight core trends in U.S. consumer spending by income, age, general region, and family composition.

The Pet Industry 2008 Strategic Outlook is our annual report, written for businesses marketing to pet owners.
 

Standard & Poor's Take on the Pet Industry

In a research note upgrading PetSmart (PETM) today, Standard & Poor's Equity Research notes "while we expect a slowdown in consumer spending to impact sales of discretionary pet supplies, we continue to believe underlying demographic trends for the industry remain very strong." Well put.
 

Looking Toward 2008

The pet industry has been called recession-resistant by many people, myself included, as it stood up to economic shocks in 2002 and again in 2005 after hurricane Katrina.

This year may test that theory, however. A decade of strong growth has created some fluff in an industry that has been growing like a balloon, in every direction at once. Balloon, bubble...we think slowing growth or contraction in certain segments is inevitable in 2008.

Sure, pet owners will continue to spend money on their companions in tough times, but on what? The latest available data from the Department of Labor show spending on pet purchases and supplies declined 20% in 2006 from the year before, while the other segments of food, services and veterinary services grew but at a much slower pace.

Just like humans, spending constraints will probably result in cutting out non-essential products and services, but with some interesting twists. Higher income demographics are supporting more and more of the industry each year.

Two new reports on U.S. pet owner spending are out.

Pet Food Consumer Spending Data Tables

How much money Americans spend on pet food by age, income, region and family composition.

Veterinary Services Consumer Spending Data Tables

How much we spend at the vet each year.

Pet Owner Spending by Income

The latest available data from the Labor Department show the first decline in pet industry spending in over 10 years.

Check out the new report Pet Industry Spending by Income which includes new 2007 and 2008 forecasts by Dillon Media and charts of expenditures on all segments by income bracket through 2006.

Pet Trade Shows

It's trade show season for the pet industry. This list will be updated throughout the year as schedules are finalized and websites go online, so bookmark it and check back.

Global Pet Expo 2008
Feb 14-16, San Diego, California
Presented by the top industry manufacturers and distributors' trade organizations, over 800 companies will launch pet products at this show.

H.H. Backer Spring 2008 Trade Show
May 16-18, Baltimore, Maryland
Traditionally in Atlantic City, show organizers moved this event to Baltimore, citing improved logistics and metropolitan city services for the participants.

Interzoo 2008
May 22-25, Nurnberg, Germany
Floor space is already 85% sold as of this post date. This biennial international pet trade show drew almost 1,300 companies from 56 nations in 2006, and 2008 should be even better.

Attending a Tradeshow?
Dillon Media can help with booth design and marketing material. Learn more...
 

Dog Friendly Cars

These days, consumers are taking pets into consideration when making large purchasing decisions, and the market has responded.

Last year, home and garden stores and catalogues, as well as custom home builders, ramped up marketing to pet owners, and now, a new company helps dog owners buy a new car.

DogCars.com reviews new automobiles from a dog owners perspective. Dog friendly cars tend to be roomy: SUVs, trucks, wagons, hatchbacks and crossovers, and there are some pleasant surprises on the site like the Suzuki Forenza and Honda Fit reviews.

Surveys indicate up to 50% of dog owners consider a pet's needs when buying a new car.

[Update Jan 2008] DogCars.com is seeking advertisers for its new website. Check them out to reach a niche market of high income pet owners in the market for a new car.

Read all posts about dog cars.

  

Handmade Leather Dog Collars

A small company poised for growth is Paco Collars. Run by leather artisans and dog owners, they create and sell custom and handmade leather dog collars. These collars are beautiful but also highly functional, with tapered neck widths for smaller dogs and multiple sturdy leash attachments. Each order is handmade to each dog's specifications and takes 6-8 weeks for delivery. The company also sells leashes that match the collar in color, leather and brass or silver hardware.

The depth of commitment to the human-animal bond (and to the customer) is on display, from the initial order process to a lifetime guarantee on parts. When the dog passes the company can make the collar into a bracelet for the owner.

When asked who's buying these expensive collars, founder Ana Poe responded, "The one really interesting trend that we've found in our sales is that there is no one demographic that's buying. When we think we've got the consumer pegged, there's a whole new crop of people that surprise us.  Rich, poor, young, old, you name it and they're buying."

Maybe this widespread appeal is why a Paco Collar was recently spotted in a television ad for Proctor & Gamble's Febreze air fresheners.

It seems Paco Collars is well-positioned in the pet industry as it moves forward. By offering premium, well-designed, custom products to pet parents across demographic groups, the company is aligned with core trends in spending and consumer behavior.

The Pet Economy

BusinessWeek dedicates its August cover story to Americans' spending spree on pets. The article has lots of great pet industry statistics. For instance half of all dog owners consider the pet's comfort when buying a car.

The Pet Economy, by Diane Brady and Christopher Palmeri, BusinessWeek, August 6 2007.
 

Petco Expands Services Offerings

Petco announced a partnership with Sittercity.com today, adding in-home pet sitting services to its lineup. While PetSmart (NASDAQ:PETM) focuses on bringing the customer to the store for daycare and PetsHotels, where they subsequently load up on high-margin tennis balls and the like, Petco is going in the other direction, extending its reach directly into the consumer's home. Here's the press release.


Photo: PR Newswire Photo Service/Sittercity.com

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Marketing Pet Services?
The Pet Industry 2008 Strategic Outlook is an affordable market research report on current and emerging trends and demographics for pet businesses.

Sony Hopes The Puppies Will Help

On the paws of successful titles like Nintendogs and Sims2 Pets, it's become clear: pets in video games attract women. Nintendo credited its game for attracting female market share, and Sims2 Pets sold over 3 million units in three months (which is a good number for a video game, by the way).

The New York Times reported this week that Sony Online Entertainment, in trying to diversify the demographic profile of its 85% male customer base, has added puppies to its new release, Free Realms.

Marketed toward girls, the game is free but relies on paid registration and microtransactions like buying virtual pets. Puppies, that is. Apparently the male design team wanted pets with fighting capabilities until someone came to their senses ("Sony's Other Games Division Makes Push in New Direction," by Seth Schiesel, New York Times, June 11, 2007).
 

Starbucks targets dog owners

Starbucks, in a localization trend, has started to appeal to dog owners. According to the Wall Street Journal, a Starbucks in Portland responded to strong dog owner demographics by adding an outside window counter so customers can purchase coffee without bringing their pets inside ("At Starbucks, Coffee Comes With New Decor," by Janet Adamy, The Wall Street Journal, Nov. 10, 2006).

PetMed Express

PetMed Express continues to increase the dosage. As the largest pharmacy for dogs, cats and horses, PetMed is well positioned in the prescription and non-prescription pet health segments.

PetMed won the 27th spot on BusinessWeek's list of the top 100 Hot Growth companies. By focusing on their best-selling products and their relationship with vets, PetMed grabbed 1.3 million customers in the past two years, each spending about $76 ('Hot Growth: 100 Sizzling Companies to Watch,' by Arlene Weintraub, BusinessWeek, June 5 2006).

And Standard & Poor's on June 5 announced that PetMed Express, Inc. (NASDAQ:PETS) will be added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Catalog Retail Sub-Industry Index on Monday, June 12.

Besides the natural alignment with pet health trends, I think PetMed is also decently positioned against high gas prices simply because of its online business model.

Marketing Pet Health Products or Services?
A new report is out, with trends and demographics by age, income, region and family size, called 'Consumer Spending on Veterinary Services 2000-2004.' Check it out.

Honda Introduces Pet Friendly Cars

The Wall Street Journal reported this morning that Honda Motor Co. will unveil a minivan designed for dog owners later this month at the 2005 Tokyo Motor Show. [Update: Honda Dog Website Launched]

The concept car, currently being tested for consumer reaction, includes amenities like a built in dog dashboard carrier, washable seats, a third seat row that reconfigures into a holding pen for larger dogs, and tire treads shaped like paw prints.

Honda will also introduce the "Travel Dog" line of car accessories in Japan, including a $440 "pet cargo cover" that pulls out into a dog bed, according to the newspaper.

Source: "Honda Caters to Japan's Pet Population Boom," by Jathon Sapsford, The Wall Street Journal, Oct. 5, 2005

Related Posts:
Aug 17, 2007 Dog Friendly Car Reviews by DogCars.com
 

Pet Evac Roundup

A rapid understanding and acceptance after the horrific aftermath of Katrina on people and pets has resulted in equally rapid movement to make things better.

In the face of Rita, preventive action was taken by informing people to get out of town and bring their pets. It has been widely reported, on CNN, the BBC, RAI Italy and the Financial Times among others, that cars evacuating Texas are full of pets this time around, unlike Katrina where many people left their pets assuming they'd be back in a couple of days.

But most hopeful is the legislation sponsored by Representatives Tom Lantos (D-Calif), Barney Frank (D-Mass) and Christopher Shays (R-Conn) that would condition state and local disaster preparedness plans on having provisions for companion and service animals. Read more here.


Related Posts:
PetSmart and FEMA
No-pet policy is 'a lousy plan'
Lesson for FEMA: feed the dog
Pets and hurricane Katrina
The dog as part of the family

Target pets tv ad campaign

Less than two months after launching a new pet website, Target Corp is bringing its pet products into your living room.

CNBC just aired a television commercial by Target featuring nothing but pet products, the first pet-only ad I've seen from the company.

Focusing on mid to high-end dog products with traditionally high margins, as well as multiple pet owner demographics, the catchy ad campaign should drive some valuable customers (the pet parents) into the stores.

Related posts:
Feb 2006: Target Launches Premium Pet Food Label
PetSmart rebrands, previews new TV ads
Pets in advertising
Pets in catalogs