This case is talk about Michael Ebert, president of Omega Paw, wants to expand its market and “grow the business quickly”. The company is in a hard competition environment but it has enough fund and technological to target a larger market. But Ebert was considering how to expand its marketing initiatives and alternative channels of distribution. Alternative analysis list four main alternatives and analysis those pros and cons. In my opinion, the “A mail order/TV campaign” and sold its “self-Cleaning Litter Box” to mass distribution outlets would help the company accomplish their gold.
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They do not much concern about specific pet care stuff. So the cheaper and simple is the key point.
From the consumer analysis, the company should pay more attention to the segment 2. What do they want is the main trend of market. For the segment 1, they want to buy the all series of products and the segment 3 would buy cheaper and practical product.
In the segment 2, providing the existing cat owners’ demand would get the highest profit. The company should know what they want. The segment 1 and segment 3 could become potentially accounts in the future. Attracting them would increase
“Everclean Self Scoop Litter Box” retailed its product for between $53 and $63. It had North American-wide distribution and well-know home, automotive, and pet-care products.
“Quick Sand” used a series of three trays method and was priced at $29 retail. They spend between $200,000 to $300,000 per week for six month, and gained exposure throughout Canada and Unite States.
“Lift & Sift” was similar to the “Quick Sand”. It had limited advertising exposure.
Many cat owners favor the basic model. It retailed for $10 to $15, was sold at numerous locations, and represented the majority of the litter box market (approximately 90 per cent). But they were awkward, messy, and smelly.
“Litter Maid” offers a computerized self-cleaning litter box. It could be purchased via mail order for $199.00 U.S.
It is a hard competition environment. Each company has its dominant position to attract customers. However the Omega still can find potential market. It needs to increase the advertising and choose a fit price.
External Analysis (Social/Technological/Economic/Political)
In the social: in the mid-1990s, North American was home to approximately 6 million cats. Approximately 33 per cent of the ten million households in Canada had two cats. The cat population was estimated to continue growing at an annual rate of four per cent for the next years.
In technological: self-cleaning litter box becomes a new element of market. It brings an easy and quick method to solve the cleaning problem.
In Economic: the typical cat owner spent approximately $520.00 annually on his or her feline pet and most of them spend on food and veterinarian visits. So the Omega sold their product for $18 is pretty chapter.
From the whole market, the number of cat owners are increasing and the new technological is stimulating the customers’ desire. It is a positive market environment to develop the business. In the yearly budget, the owners would cautiously choose a product by price and function.
Corporate Capabilities (HR/Finance/Operations/Marketing)
The company has a marketing budget of $100000 is available and the manufacturing facilities has a capacity of 3500 units per week. Its management group can understand...