Never out ofSight! In the UK we truly are a nation of pet lovers. 10.4m of us (48% of households) share our homes with some 15.2m cats and dogs, a number that has increased by 4.8% between 2006 and 2008 alone. The primary driver for owning a pet is companionship, and 81% of owners claim to treat their pets as part of the family. However with our busy lifestyles we regularly spends days and nights away from our companions, particularly cats who like to assert their independence by roaming through the neighbourhood and beyond. It is, therefore, a cause of great anxiety when a cherished pet goes missing. PetTrak is a new tracking and location finding device product based on GPS (global positioning system) and GPRS (mobile phone technology). Attached to the pet’s collar, PetTrak is aimed at the cat and dog market. Mintel are able to quantify the size and trends spent on non-food pet items, many of which are discretionary such as toys and grooming equipment. Overall the pet accessory market has an annual value of The profile of cat and dog owners is quite different. In addition to pet accessories owners spend £215m per annum on pet healthcare and £1. The key insight this gives into the nature of the relationship between owner and pet is that the mutual bond is very strong and there are many owners prepared to spend above and beyond the basic costs of pet ownership in the same way parents invest in their children. meaning they treat their pets like little humans. the key insight is that Pet Track will add incremental value to this mature and establish category through it’s added value proposition. Mintel point to a trend of cat and dog owners becoming increasingly anthropomorphic. for example organic and provenance-assured foods are becoming prevalent. Mintel highlights that the trends in human food consumption are being witnessed in the pet food market. Within this the market for basic pet collars and leads has an annual value of £44m.£269m and this is forecast to increase by 15% over the next five years reaching £295m per annum by 2013. Mintel research also gives detailed information which enables us to understand the demographic and attitudinal profiles of pet owners. .6bn is spent annually on pet food. . working full time and of higher socio-economic groups. By contrast. however they are owned by lower socio economic groups. Their internet usage is higher than average and their TV usage is lower.In broad terms cat owners are young females. They are generally in one or two person households. dog owners show an even male-female profile. They are heavy TV watchers. light internet users and more likely to be in family life-stage and therefore larger households. Females place greater value on the companionship and emotional bond of pet ownership and more likely to claim to treat their pets like children.Females are more likely to view pets as part of the family and are more likely to agree with the statement that pets are good company. The maternal instinct is a constant and enduring part of the pet ownership experience for females. Men are more likely to claim that their pets can look after themselves! . . PetTrak was launched in 2010 by a start up company called eMotive Data Ltd. to address what they saw as a market gap for a midpurchase priced but high service product.Up until now there have been basic devices available which attempt to track lost animals using RFID technology (for example Loc8tor with line of sight and limited distance) or expensive systems utilising GPS like RoamEQ and Snooper. eMotive Data’s research showed zero customer awareness of competing brands however details of each competitor are mapped out below. Target sales in the first year are 15. the objective is to move toward a purchase price of £40-50 with a monthly fee of between £5 and £10 depending upon the level of services subscription (see trajectory). None of the current brands were seen as effective in terms of marketing. offering stand alone services and limited interaction with the customers once the device had been sold. There was no evidence of an ongoing relationship between brand owners and customers.000 units in third year with revenue of over £11m. rising to £533k in year 3. rising to nearly 100.000 units making a revenue forecast of £1.5m.2011 2012 2013 The PetTrak proposition was one of marketing leading technology and added value services. a total spend over three years of £1m . Launching in the Spring of 2010. eMotive Data expect to obtain a high gross profit allowing substantial advertising and promotional activity £137k in year one. Over years two and three regional sales forces will be developed to target independent retail outlets and vets.Personal Selling Initially targeting grocery multiples due to the scale that can be reached through a single buying contract. For makes the emphasis will be placed on opinion leaders in technology and those who bring out the fun side of pet ownership. . Marc Abraham celebrity vet from the Paul O’Grady show. Appealing to women aged 25-35 are celebrities like Fern Cotton and Holly Willoughby who publically support pets’ charities. Bespoke branded point of sale material and merchandising unit will be given to stores. Public Relations Secure key brand ambassadors in the public eye. Jeremy Clarkson and Jason Bradbury of the gadget show and Jonathon Ross as a male celebrity pet owner. Cheryl Cole represents a growing trend of visible celebrity pet ownership. . Direct Marketing Mainly on line their targeting via facebook (46. will be rolled out Outdoor advertising media will be developed in year three. Advertising Advertising will be based mostly around advertorials in key publication to drive awareness and knowledge of the concept and brand. This allows 24/7 real time tracking and near total UK coverage without the problems of “line of sight” or limited radius associated with some products.120 people) and a similar number on thepet. In year two.net. a major campaign is proposed on the side panel of a major petfood brand. such as Whiskers. Sales Promotion Limited promotional activities based around incentivising customers to recommend friends as the single most cost effective method of attracting new subscribers. How it Works Combining GPS and GPRS technology the device relays the cat or dogs position (accurate to a few meters) back to a secured server every two minutes. . Petplanet etc) and a larger number of independent stores. Wilkinson etc) . with a small number of multiple chains (like Petsathome. The pet shops trade channel is relatively fragmented. Grocery multiple sales for non-food items are heavily concentrated amongst the major players (Tesco. Asda. Additional valued added service include Automated proximity alerts Replay of pets movements for the day Automated daily emails giving a breakdown of the pets activity On-line activity league tables An igoogle application for easy constant update iPhone/iPodtouch applications for quick updates Distributors The majority of sales for pet accessories go through pet shops and grocery multiple. Argos.The pet can be located by accessing any PC or mobile phone connected to the internet. but older technology integrate chipsets suitable for this application are imported directly from generic suppliers (mainly in China). . but more expensive. Companies like SiRF being seen at the leading edge of development of patented devices. Microcontroller chips and rechargeable batteries are generally commodity products (with the exception of very high specification batteries) available via wholesalers. Pre-fabricated Modules (see above) could available as an alternative.Components GPS/GPRS chips: these are readily available but undergo rapid changes in technological advancement. source. All of these companies are used to supplying large volumes directly to major manufactures or via electrical wholesalers to smaller customers. however. what insight does this analysis give you into the priorities and problems for your first year of operation? . the casing and the packaging will vary by size of the animal. the collar. packaging locally source is All the products are identical in terms of the main technology. Questions 1/ Perform a Five Forces Analysis on the case 2/ If you were a director of Petrak. (limited colour variants are available) Similarly.SIMS cards from mobile operator (charging monthly fee for data charges) Collars are sourced directly from standard pet collar manufacturers The entire unit is sealed in an injection moulded plastic casing sourced locally.