Pet Industry Perceptions & Messaging Strategy · A dog breeder that does not provide proper care for the dogs 23% Any large scale commercial breeder of dogs 19% A dog breeder that

© 2019 ALL RIGHTS RESERVED CONFIDENTIAL

Pet Industry Perceptions& Messaging StrategyPresented: January 29, 2019

Pet Industry Leadership Conference

San Antonio, Texas

2 © 2019 ALL RIGHTS RESERVED CONFIDENTIAL

Introduction to LRW

LRW is a California-born global collaboration of data-driven

companies, best known for driving results through the use of

consumer and behavioral insights.

Our ability to translate deep human understanding and

sophisticated data analytics into business success has helped

our clients to innovate and grow.

ACCESSTo traditional and

emerging data sources

PERSPECTIVEData agnosticism with

advanced marketing

science and analytics

ACTIONDriving successful

business outcomes


RESEARCH OBJECTIVESThe Pet Leadership Council Engaged LRW to…

1 Establish a baseline understanding regarding

perceptions of the pet care community

Use these baseline findings to guide messaging

and communication efforts

Align the pet care community around shared

messaging to demonstrate a commitment to

doing the right thing and recapture trust

amongst the general public

2

3


A 3-phased research approach was used to meet these objectives

PHASE 1: ESTABLISHING THE BASELINE

• Understand what is known already; stakeholder knowledge,

internal document review, in-person consumer interviews

PHASE 2: INFORMING THE FUTURE

• To quantify pet care community awareness, perceptions

and attitudes

PHASE 3: STRATEGIC DIRECTION

• To provide more specific direction on messaging

© 2018 Lieberman Research Worldwide. All rights reserved. CONFIDENTIAL.


Pragmatic Brain Science® MethodologyIn addition to leveraging traditional scaled survey measurements, this research uses tools from LRW’s Pragmatic Brain Science Institute®, which are

designed to understand less conscious and non-conscious associations and perceptions.

Organization

Rapid Choice®

Respondents are exposed to either an organization or entity of the pet industry . Then, they are shown a rapid succession of

words to classify as describing the stimulus or not. Responses are quick, so that active cognitive processing is limited, and

latent associations are captured.

Respondents are shown two circles, one with their name and one representing either an organization (i.e., PLC, ASPCA,

HSUS, etc.) or entity of the pet industry (i.e., Veterinarian, Animal Welfare Organization, Pet Chain/Superstore, etc.). They

move one circle to describe the relationship with that organization or entity, and the overlap and speed of movement is

analyzed for a more subtle, and holistic understanding of relationship strength.

Implicit Identity Mapping (IIM)®

The BASE Framework is rooted in the fact that four core human needs exist: Belonging, Appeal, Security, and Exploration.

We’ve incorporated these BASE needs into our Rapid Choice® exercise, showing respondents attributes that represent each

of the four core human needs. Because judgments are made quickly, active cognitive processing is limited, and the extent to

which the stimulus is associated with the facet of BASE is captured. BASE tells us which human needs each company

description is delivering on.

BASE Framework

Belonging

Appeal

Appeal

Exploration

Exploration

YOU

SecuritySecurity


1 What are overall perceptions of the

pet industry?

2 What’s important to pet owners?

3 How is the pet industry is perceived on

these important aspects?

4 How can we use these learnings to inform

messaging and positioning?

DISCUSSION OVERVIEW


Preview | WHAT DID WE LEARN?

Messaging will need to be deliberate and thoughtful to ensure that

PLC introduces itself as an organization that understands the needs

of pet owners, has the best interests of pets in mind (and only

that), while avoiding connection with some of the negative

associations that currently exist

Consumer sentiment is

mostly neutral toward

the industry at large

At the end of the day,

pet owners just want

to take care of their

animals … and they

want the industry to

do the same

As expected,

awareness of PLC is

low, but there is room

to establish a

purposeful presence


What do consumers think

of the “Pet Industry”?

CHAPTER ONE


74% Trust pet care/service providers

72%Trust animal welfare

organizations

65%Trust pet product

retailers/manufacturers

Veterinarians

Local Animal Shelters

Animal Welfare Organizations

Groomers

Companies That Make Or Sell Pet Food

Pet Chain / Superstores

Companies That Make Or Sell Pet Supplies

Small / Independent Pet Stores

Small / Hobby Pet Breeders

Large / Company Pet Breeders

Most

Favored

Least

Favored

76% BreedersMore

Regulation

Needed

74% Sale of live

animals in stores

68% Shelters

74% think shelters

have too many

animals to handleAnimal

Shelters 60% agree people

should never buy

pets, only adopt

At a broad level, trust is

strong

Industry Regulation and

Overpopulation of Shelters

are Top of Mind Issues

Consumers recognize that the industry is complex – a mix of good and bad players

Perception Snapshot


Most consumers either trust or have neutral opinions about the 3 sectors that make up the

industry, including those that make/sell pet products

A1_TypesOrgsTrust. Thank you for your answers so far. Now we would like to understand how much you trust individuals or professionals from some different industries. Please indicate how much you trust each of the following.

C1_StatementAgreement. Below are some statements having to do with pets. Please tell us what percent of Americans you think would agree with each statement. Please think about an average American, and for each statement, adjust the slider to indicate what percent of Americans you think would agree

with the statement regardless of what your own opinion might be.

88%

85%

82%

79%

75%

74%

72%

65%

37%

36%

36%

35%

16%

Firemen/EMTs/

First Responders

Nurses

Doctors

Teachers

Dentists

Companies that provide

care or services for pets

Animal welfare

organizations

Companies that make

or sell pet products

Pharmaceutical industry

Financial industry

Insurance

Lawyers

Politicians/Lobbyists

% Trust

vs. other industries

74%

73%

65%

22%

20%

28%

4%

7%

7%

Companies that provide

care or services for pets

Animal welfare

organizations

Companies that make

or sell pet products

% Trust% Don’t

trust% Neutral

67%Agree pet industry companies

can make a profit & care about

animals at the same time


The most favored entities are veterinarians, animal shelters, and animal welfare organizations;

pet breeders skew toward unfavorable opinions

B1_OverallOpinion. Next, we would like to understand how you feel about these organizations/types of companies. Please indicate if your overall opinion is favorable or unfavorable for each of the following. (Very unfavourable, Somewhat unfavourable, Neutral, Somewhat favourable, Very favourable)

% Have

Favorable Opinion

Veterinarians



Groomers







% Have

Unfavorable Opinion

85%

78%

72%

64%

60%

57%

56%

55%

40%

25%

10%

14%

20%

30%

29%

24%

34%

29%

31%

23%

5%

8%

8%

6%

11%

19%

10%

16%

29%

52%


Anyone who breeds dogs for

profit regardless of how

the dogs are treated39%

A dog breeder that does not provide

proper care for the dogs23%

Any large scale commercial breeder of dogs 19%

A dog breeder that does not meet U.S.

government standards for animal welfare12%

Am not familiar with the term “puppy mill” 7%

These misconceptions and negative perceptions drive consumers away from bred animals, or

animals for purchase (online, from breeders, or from pet stores)

C2_PuppyMillDefinition. Thinking about the term "puppy mill," which of the following statements comes

closes to the way you would define this term:

A4_WhereWouldntGetPet. Are there any sources you would NOT consider getting pets from?



What Is A “Puppy Mill”?

39%

37%

32%

29%

27%

Purchase online

Purchase from a pet chain/superstore

Breeder/hatchery/animal farm

Purchase from a small/local/ independent pet store

Purchase from a specialty store (fish/bird/reptile)

Where Consumers Would

Not Obtain Pets

60% agreePeople should never buy

pets, only adopt them from

shelters or rescues

57% agreeThe sale of animals in pet

stores is inhumane


The most commonly known organizations are ASPCA, PETA, WWF, AKC, and HSUS

A8_PetOrgAwareness. Please indicate your level of awareness for each of the following organizations.

96%

91%

90%

85%

83%

54%

48%

42%

32%

31%

30%

90%

84%

81%

73%

77%

41%

34%

31%

25%

23%

22%

75%

64%

60%

52%

61%

26%

22%

19%

16%

15%

14%

Have heard of it

Are aware of it (at least have an idea of what the

organization does)

Are familiar with it (know a little or a lot about it)


The majority have

favorable opinions of

these organizations

PETA is the exception


76%

76%

75%

74%

70%

69%

66%

66%

61%

56%

45%

15%

18%

17%

18%

24%

25%

26%

26%

30%

35%

21%

9%

6%

8%

8%

6%

6%

8%

8%

9%

9%

34%

% Have

Favorable Opinion

% Have

Unfavorable Opinion


How do pet owners think

about their pets, and

what is important?

CHAPTER TWO


Most Important Attributes

in Driving Favorability

Can be trusted to do the right

thing for animals

Genuinely cares about pets

Pet’s best interest in mind

Cares more about the well-being

of animals than profits

Smart

Reliable

Trust

Friendly

Caring

Generous

Sensible

Safe

EXPLICIT IMPLICIT

Security Belonging

Decision Influencers Snapshot

Pet owners care deeply about their companion animals, and expect pet industry

companies/organizations to do the same


Most care deeply about their pets, are engaged in their well-being, and feel confident they’re

providing the best they can for their pets

A5_GeneralAttitude. Next, we would like to learn more about your general attitudes and behaviors when it comes to your pets. For each pair of statements, please consider which one you agree with more and whether you agree with it much more or somewhat more. If you agree with the statement on the left

more, indicate how much more by selecting one of the two boxes on the left. If you agree with the statement on the right more, indicate how much more by selecting one of the two boxes on the right.

My pet brings me joy every day 83% 17% Sometimes it is a hassle to have a pet

Pets help to increase my quality of life 83% 17%The pets in my household are for other household members or

functional purpose

I have no trouble finding information for my pets 82% 18% It is difficult to find the information I am looking for

I feel confident I am providing the best care I can 81% 19% I constantly worry that I am not providing the best care I can

I take my pet to the veterinarian routinely

for check-ups and preventative care69% 31%

I do not seek help from a veterinarian unless my pet is very

sick or injured

I actively seek out new information related to my pet 65% 35%I usually just happen to come across bits of

information pertaining to my pet/the care of my pet

I have concerns about what is in the food I feed my pet 56% 44%I trust the food manufacturers to provide

quality food for my pets

Money is no object or concern when it comes to my pet 54% 46%I worry about the costs involved in properly

caring for my pet

I am always interested in unique and new products/services/ways of

caring for my pet51% 49% I usually stick with what I know works for my pet

% Agree (Somewhat More or Much More)


Not surprisingly, genuine care is a key influencer of pet owner decisions

A6_CareOfYourPet. Listed below are some things you might consider when you are making decisions about your pet or about the care for your pet. Please indicate the degree to which each of these influences your decisions when it comes to your pets.

67%It is important to me that the pet/pet care organizations and

companies genuinely care about the animals they raise/serve

51%I prefer to deal with pet/pet care organizations and companies that

support the greater animal welfare community

47%When getting a pet, it is important to me that I have a good understanding

of where the pet came from/what its background is

45%I believe all organizations and companies across the pet community share the

responsibility of finding homes for pets in need (homeless, abandoned, rescued)

35%It is important to me that the pet/pet care organizations and companies I deal with

strengthen and support my local community

% Strongly Influences Pet Decisions


Similarly, organizations are perceived most favorably when they communicate animals being a

top priority and demonstrating genuine care

Drivers of Favorability (derived importance)

Independent Variable: B2_Ratings. For each statement below, please indicate which organizations/types of companies you feel each statement describes well. If none of them fit the description, please select None of these.

Dependent Variable: B1_OverallOpinion. Next, we would like to understand how you feel about these organizations/types of companies. Please indicate if your overall opinion is favorable or unfavorable for each of the following. (Very unfavourable, Somewhat unfavourable, Neutral, Somewhat favourable,

Very favourable)

117

112

109

106

99

99

98

94

94

93

92

88

Can be trusted to do the right thing for animals

Genuinely cares about pets

Pet’s best interest in mind

Cares more about the well-being of animals than profits

A resource I can trust for info on pets/pet care

Offers unbiased info on pets/pet care

Knowledgeable resource for pets/pet care info

Enables a happier life for me & my pet

Helps me do what's best for my pet

Good resource for new pet owners

A good partner in helping me care for my pet

Helps me provide the best for my pet

Most Important Explicit Attributes



Delivering on needs for Security and Belonging, like being a trusted, reliable, and caring source

for their pets and the care of their pets, are also high impact drivers of favorability

Drivers of Favorability (derived importance)

Independent Variable: B12_Exercise. We are going to show you a series of words. Please decide whether the word you see on the screen describes {INSERT ORGANIZATION/ENTITY}. Indicate, using the yes and no keys, whether the word describes the organization. Please give your answer quickly based on

your first gut reaction.

Dependent Variable: B1_OverallOpinion. Next, we would like to understand how you feel about these organizations/types of companies. Please indicate if your overall opinion is favorable or unfavorable for each of the following. (Very unfavourable, Somewhat unfavourable, Neutral, Somewhat favourable,

Very favourable)

134

122

77

67

Security(Smart, Reliable, Trusted, Sensible, Safe)

Belonging(Friendly, Caring, Generous)

Appeal(Cool, Attractive, Popular)

Exploration(Exciting, Fun, Innovative, Modern)

Belonging

Appeal

Appeal

Exploration

Exploration

SecuritySecurity

Most Important Implicit Attributes



Is the pet industry meeting

these consumer needs?

CHAPTER THREE


Veterinarians, shelters,

and welfare

organizations are top

performers on both

explicit and implicit

measurements

Performance Snapshot

Veterinarians




Groomers






Explicit Implicit


Most entities within the pet industry are perceived positively on the important drivers of

favorability. However, consumers are less confident that the overall well-being of animals is the

top priority for larger pet-related businesses and breeders.

B2_Ratings. For each statement below, please indicate which organizations/types of companies you feel each statement describes well. If none of them fit the description, please select None of these.

Veterinarians



Groomers







Can be trusted to do the

right thing for animals

Genuinely cares

about pets

Pet’s best interest

in mind

Cares more about the well-

being of animals than profits

87% 89% 85% 70%

72% 77% 76% 71%

67% 74% 74% 72%

59% 67% 58% 48%

57% 64% 59% 49%

49% 52% 50% 35%

42% 49% 48% 37%

49% 48% 48% 33%

38% 37% 36% 30%

26% 24% 23% 22%

Performance on the Most

Important Explicit Attributes


Most perform well on Belonging and Security, the most important implicit metrics, though larger

pet-related businesses trail behind

B12_Exercise. We are going to show you a series of words. Please decide whether the word you see on the screen describes {INSERT ORGANIZATION/ENTITY}. Indicate, using the yes and no keys, whether the word describes the organization. Please give your answer quickly based on your first gut reaction.

79.9

77.3

75.8

68.8

71.9

70.4

62.7

61.2

52.9

34.9

Security Belonging Appeal Exploration

Veterinarians



Companies That Make

Or Sell Pet Supplies

Groomers



Companies That Make

Or Sell Pet Food



67.7

62.7

62.2

64.8

65.3

60.2

66.7

58.7

47.8

38.0

83.0

75.8

74.2

71.1

71.9

68.7

64.1

66.0

49.8

36.9

65.0

61.3

59.8

65.2

61.0

59.4

62.1

58.5

45.7

37.3

MOST IMPORTANT


Consumers feel the most connection with Veterinarians

B10_IIMExercise. Move your circle to best describe your relationship with the organization or type of company below. Please move your circle horizontally, either to the left or right. Once your circle is placed in this way, please click the ‘Continue’ button at the bottom of your screen.

Average: 41%

57% 49% 47% 41% 41% 40% 40% 38% 31% 24%Veterinarians Local

Animal

Shelters

Animal

Welfare

Orgs

Small/Ind.

Pet Stores

Groomers Pet Chain/

Superstores

Companies

That Make/

Sell Pet

Food

Companies

That Make/

Sell Pet

Supplies

Small/

Hobby Pet

Breeders

Large/

Company

Pet

Breeders

Affinity / Connection

(Implicit Identity Mapping®)


How should PLC position

itself and what should the

message be?

CHAPTER FOUR


Messaging Input Snapshot

Many are open to hearing from a collective pet industry group,

but messaging will need to be relevant and meaningful

Most would trust or

are neutral to the idea of

hearing from the collective

group

Messaging should focus

on the well-being of pets. Consumers react most positively

to messages showing dedication to

the health and well-being of the

pets

References to a

“community” will be better

received, while “animal

advocates” should be

avoided.The word “community” elicits more

positive reactions, and the term

“animal advocates” elicits more

negative reactions


Most are open to messaging from a group like PLC, though the high amount of “neutral”

reaction suggests there is a need for more persuasive and compelling communication.

Messaging coming from a group that does not include “advocates for pets” is more likely to be

trusted.

C5_TrustMessages. First, overall, how likely would you be to trust messages coming from a group like this?

This might include companies that make or

sell pet food or products, raise or sell pets, and

veterinarians and academics.

This might include companies that make or

sell pet food or products, raise or sell pets,

veterinarians and academics, and

advocates for pets.

35% 30%Trust messages a little

or a lot from this group

Trust messages a little

or a lot from this group

47% 49%Are neutral about messages

from this group

Are neutral about messages

from this group

82%Trust or are neutral

about messages

from this group79%

Trust or are neutral

about messages

from this group

% Trust Messaging From Each PLC Description



The description “animal advocates” does not successfully elicit positive perceptions, likely fueled

by perceptions that animal rights groups are “too extreme,” so there may be the potential to

replace the term with “animal welfare organizations” and leverage the highly favorable position

of these organizations




C14_AWTrustChange. If these messages were endorsed or put out in partnership with animal welfare organizations, how would that impact your likelihood to trust the message?

55%Agree that animal

rights groups are

too extreme

72% 20% 8%

% Have

Favorable Opinion

% Have

Unfavorable Opinion

66%Would be more likely to trust

messages that were endorsed or

put out in partnership with

animal welfare organizations


In addition, PLC should also avoid any reference to the “pet industry” and instead refer to the

industry as the “pet care community,” as it garners a more positive reactionWhile overall sentiment is still largely neutral, the term “pet industry” evokes more negative reactions than “pet care community,” with more references to making money and

issues around the quality of pet food.

A7_PetIndustry_OE. Next, we’d like to understand what you think about the broader [INSERT “pet industry” OR “pet care community”]...what comes to your mind when you think of it? We’d like to know what comes to your mind overall; and if there are any specific organizations that come to mind please let us

know what those are as well.

Pet

IndustryPet Care

Community

Overall

Sentiment When

Describing the

“Pet Industry”

Negative Positive

Neutral

Overall

Sentiment When

Describing the

“Pet Care

Community”

Negative Positive

Neutral


Messaging focused on the overall well-being and quality of life for pets, not about specific issues

or actions, will serve PLC best and further demonstrate that pets are PLC’s main priority

C6_MessageRanking. Below are some of the messages you might see from this group. Please rank these from 1 to 6, with 1 being the message you like most and 6 being the message you like the least.

30%

19%

15%

14%

12%

11%

Assuring the health, well-being and

quality of life for pets is our passion

The pet care community’s mission is to

promote a good home for every pet

The pet care community advocates for responsible breeding of

dogs and for the proper care of animals from shelters and

rescues

Every home who wishes to have a pet and

can care for it should have access to one

We are committed to working with regulators and

policy makers to help assure the best care for pets

The pet community works together to

enrich the lives of pet lovers

% Selected as Top Message

51%Agree that charity efforts

coming from the pet industry

are just for publicity


Recommendations


The PLC must establish credibility by driving consumer education, increasing

awareness of PLC, and enhancing understanding of the group’s mission.

Recommit to a Consumer-Driven Identity And Mission, One That Puts Pets First

o “Assuring the health, well-being and quality of life for pets is our passion” is a message that captures

these important category themes and was the top performer of the messages tested.

oCommunicate this mission clearly: the current level of awareness and understanding of the PLC is low. In

order to establish trust and credibility, consumers must know what the PLC stands for in order to more freely

accept messages

oConsider a name change: the name “Pet Leadership Council” is functional. It doesn’t paint a picture of a

group that actively advocates for animals and puts animals and their well-being first, as seen in PLC’s explicit

attribute ratings in this research and in feedback from the qualitative research conducted.


oRefer to the “Pet Care Community” and not the “Pet Industry” as this language evokes an overall more

positive reaction and is generally less tied to themes of money and profit, breeders, and puppy mills.

oRefrain from referring to “advocates for pets” as it generates slightly less feelings of trust when included.

Animal Welfare Organizations have strong positive perceptions, it’s possible that including this exact

term may increase trust.

Choose messages and “missions” wisely – those that are easily accessible for consumers and for PLC to

deliver on are where to begin.

And, Use Language and Context that will Resonate


Any Questions?


JENNIFER VALENZUELAVice President, General Manager

[email protected]

310.552.7776

LRW

1900 Avenue of the Stars, Suite 1600

Los Angeles, CA 90067

www.LRWonline.com

For more information, please contact:

Documents

Pet Industry Perceptions & Messaging Strategy · A dog breeder that does not provide proper care for the dogs 23% Any large scale commercial breeder of dogs 19% A dog breeder that