MP-APPENDIX B

STUDENT MARKETING PLAN FOR “CHICAGO ACTIVE TAILS”

A Marketing Plan Presented by:

Blanca Flores

Table of Contents

1. Executive Summary... ………………………………………………………………..…..3

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2. Strategic Focus and Plan………………………………………………………………….4 Mission Statement………………………………………………………………...4 Goals……………………………………………………………………………...4 Competitive Advantage …………………………………………….………….....4

3. Situation Analysis……………………………………………………………..…………..5 SWOT Analysis………………………………………………………..……….....5 Competitor Analysis… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 5 Company Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . 5 Customer Analysis . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 6

4. Market-Product Focus. . . . ………………………………………………………………6 Marketing & Product Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Market-Product Grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Target Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Points of Difference . . . . . . . . . . . . . . . ………………. . . . . . . . . . . . . . . . . . . . .8 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………………...8

5. Marketing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………………...8 Product Strategy . . . . . . . . . . . . . . . . . . ………………….... . . . . . . . . . . . . . . . . .8 Price Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .8 Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……..…………. .9 Place Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……………….…….. .9

6. Financial Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………….…... .9 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……………. . …. . .9

7. Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . ….108. Implementation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . ..... 109. Evaluation and Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . …10

Possible Deviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . ....10 Possible Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . .11

10. Bibliography …………………………………………………………………………….12

Appendices

Appendix A : Chicago Active Tails Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Appendix B: Chicago Active Tails Flyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Appendix C: Chicago Active Tails Coupon . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

1. Executive Summary

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Chicago Active Tails is a low costs thirty minute dog walking, and basic commands. This includes plenty of love and attention while we walk your dog and set out fresh water. If needed, we can feed your pet or administer medication. Chicago Active Tails also offers a daily thirty minute cat visit. This includes feeding, cleaning of litter box and exercise through play. We can also administer any medication if needed. All visits can be adapted to your pets’ specific needs.

Chicago Active Tails has an affordable service that anyone can afford. You will feel comfortable knowing Chicago Active Tails is taking care of your pet with the utmost care and attention. Chicago Active Tails strives to success and great customer service. You can be away from home knowing that Chicago Active Tails is insured and bonded. We make sure your pet feels comfortable and part of our family during each visit. With Chicago Active Tails we focus on having consistent walkers who are trustworthy and passionate about animals. We take pride and are pleased that we’ve built a business on referrals from our current happy pets.

Chicago Active Tails is eager and will work hard to accommodate your needs, as we invite all inquires. We are currently servicing the following Chicago areas: Edgewater, Andersonville, Ravenswood, Lincoln Square, Uptown, Lakeview, Wrigleyville, Roscoe Village, Lincoln Park, Wicker Park, Bucktown, Old Town, and Gold Coast. Chicago Active Tails will be a success not only because it has great customer service but because of the great low prices. With Chicago active tails you can have a 30 minute walk for only $12 while other companies charge $13 to $15 for just a 25 minute walk. Chicago Active Tails also offers great packages such as book four walks or visits during one week and get the fifth one free. Or you could also try our bi-weekly package “book 10 walks get each walk for only $11”. Chicago Active Tails has so much to offer. We provide service outside of regular business office hours. A $2.00 surcharge will be added for services before and after regular business hours 9am-5pm Monday through Friday as well as for Saturday/Sunday service hours are 8am-8pm for any visits. Our overnight in home  pet sitting service hours are 8pm-8am. All Holiday services have an additional surcharge of $10.00 any overnight in home care pet sitting is a flat rate of $70 per night. This includes 3 walks per day, feeding, watering, and medication as indicated by owner and cuddle time as well. This is perfect for pets that get stressed by being away from home

Marketing supports the company’s strategy because it helps organize everything that is needed to be successful in our business. Marketing can help a company use its limited financial and human resources in a manner which best exploit existing business opportunities. Intelligent marketing incorporates good business judgment in the review and analysis of past trends and data pertinent to the business. This information assists a company in decisions relating to the type of business organization needed, the amount of money to be invested, the type and number of employees to hire, and the marketing strategies required such as what media tools to use and what type of customer are we looking for. In marketing, a company usually devises both long-term and short-term plans to help implement its strategies and to conduct ongoing evaluations of its performance. Although marketing can be time-consuming and costly for small businesses, it can also provide a variety of benefits, including an increased awareness of costs, a coordination of

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efforts toward company goals, improved communication, and a framework for performance evaluation. With this marketing plan Chicago Active Tails has all the knowledge needed to have a very successful business.

2. Strategic Focus and PlanThis aspect of our marketing plan focuses on the strategic planning of Chicago Active Tails to make it a successful business. There are three areas that we will discuss: mission statement, financial and nonfinancial goals, and competitive advantage.

Mission Statement Chicago Active Tails is eager and will work hard to accommodate your needs, as

we invite all inquires.

Goals

Financial:

1. Gain 5% more profit within each year2. Have more profits versus losses within the first three years of business3. Have financial stability so that we can continue to stay open4. Generate enough net income to expand our business

Nonfinancial:

1. Maintain a good reputation2. Satisfy every customer at an affordable price3. Be unforgettable 4. Treat all animals as our own5. Create a demand for business during the winter 6. Within three years expand our services to in-home pet sitting

Competitive Advantage

Big businesses thrive on their ability to provide customers with reliability and therefore gain a competitive advantage. With Chicago Active Tails, you deal with a company that's large enough that your dog will never miss a walk. If a walker is sick, we have others to cover. If everyone is sick, the manager/owner will cover. We live and breathe this business and animals are our one true love! However, despite being big enough to provide you with top quality service, we remain small enough to remember who you are. The relationships our walkers have with our clients are our biggest selling point. We don't treat this as a job. This means we will at

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times go out of our way to do something special. This could be something as taking pictures of your pet for you while you're at work and sending them to you. It may mean covering a last minute walk when you're stuck at work even if it takes us over an hour to get there in rush hour. And while we think we have a team of amazing walkers who are talented, and our service and our prices are the top notch, the experience of dealing with us is something that you and your pet(s) will not soon forget!

3. Situational Analysis

The SWOT analysis provides a brief description of the present environment in which Chicago Active Tails is operating.

SWOT Analysis

Strengths Weaknesses Opportunities Threats-Excellent employees-Transportation -Low prices -Great locations

-New business to owners and customers-Expensive marketing costsHiring and training new employees

-No local competitors-Great neighborhoods -marketing opportunities during festivals

-Bad weather -Upset customer -Brand name competitors

Competitor Analysis

The professional dog walking business is a growing one not only in the United States but in many other countries as well now. Many people work long hours or have busy schedules and don’t have the time they need for their furry friends. Still others have dogs that need regular daily care and attention such as those who need medication or regular care for a medical condition.

Chicago Active Tails understands that dog walking is about more than just grabbing a leash and getting some exercise. For many people, this is more than just a job; it is a passion. In addition to really caring about dogs and enjoying being with them. Chicago Active Tails does have dog walking competition around them but they don’t have any competition on their low prices that start as low as $12 for a 30 minute walk/visit.

Company Analysis

Chicago Active Tails is a partnership of Brian Flores and Yussef Crespo. Each has experience in the management and marketing aspects of business and has also participated in the start-up of a new business. With these skills, they are able to successfully manage a dog walking business and its staff. However, they will continue to learn new aspects of the dog walking industry daily when they encounter new situations and decisions.

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Chicago Active Tails is in the introduction stage of its marketing strategy. Brian and Yussef hope to make it a successful business venture in Chicago and to spread its popularity throughout Illinois.

In order to provide high quality of customer service Brian and Yussef will work in close association with local animal shelters to service their customers in return Chicago active tails will donate 10% of their monthly income to help out the local shelters.

Customer Analysis

The Customers of Chicago Active Tails will be of a wide range. We are going to target customers with pets and with a busy life schedule. People looking for dog walkers have often just gotten a puppy and are looking for tips on training. New dog owners are also interested in learning about dog health, local parks, and pet organizations. This is also a great opportunity for Chicago Active Tails. Chicago Active Tails realize that their clients will have all sorts of expectations, based on their own beliefs in dog-care and often with a dose of guilt that they can't spare the time to do what you are doing for them. Chicago Active Tails Respects their clients concerns and tolerates the more difficult requests. Gentle advice and negotiation will often win the clients over!

Industry Analysis

Nation-wide dog walking services have become an important factor in people’s lives. More than ever people are looking for local dog walkers or pet sitters to help them take care of their pets while they are at work.

4. Market-Product Focus

This section describes the marketing and product development for Chicago Active Tails and also provides information concerning the marketing and product objectives, market-product grid, target markets, points of difference, and positioning of Chicago Active Tails.

Marketing and Product Objectives

Chicago Active Tails marketing aim is to promote its great customer service at a low cost that anyone can afford. In order to accomplish this task, Chicago Active Tails will focus on current markets, look to expand into new markets by extending our services, and continually offer new packages.

The primary objective of Chicago Active Tails is to market our services to local residents as a good and affordable rate. Since we are currently only servicing on the north side of Chicago we want to use to our advantage by creating and open and friendly “nautical” atmosphere. The atmosphere of our service is the key in determining whether or not a customer will return, and that is why we pay close attention to how the customer “feels” during their visit. Our goal is to

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make each customer’s visit an enjoyable experience by combining excellent service and atmosphere with high quality products so they will return again and again!

Chicago Active Tails also desires to extend its services in order to tap into new markets. Dog shows, pet adoption events, or any shelter events these are a few examples of the special events that we want to sponsor. Sponsoring will increase the volume of products we sell and more importantly, will give ourselves exposure to a large variety of potential customers.

Market-Product Grid

The following market-product grid provides vital information to help segment the bagel market. According to the survey that Chicago Active Tails conducted, the following information was analyzed and utilized to form the appropriate market-product grid.

Basis of Segmetation Segmentation variables Typical BreakdownsGeographic Region

City SizeStatistical areaMedia TelevisionDensity

Northeast 2.7 millionMicropolitan statistical areasn/athe city

Demographic GenderAgeRace/ethnicityLife stageBirth eraHousehold SizeMarital status

IncomeEducation

Occupation

Male; Female18-24 25-34 34-50All types Adult; Senior Baby boomer and Generation1;2;3Never married; separated; divorced; widowed $30,000 and upHigh school graduate or GED; collage; university Anything

Psychographic PersonalityValues

LifestyleNeeds

Gregarious; busy; ProfessionalThinkers; achievers; experiences; believers All Service; price/ value; convenience

Behavioral Outlet typeDirectProduct featuresUsage rateUser statusAwareness/intentions

All Door to door; direct response; internetGeneral Regular userInterested; intending to buy; purchaser; aware

According to the market-product grid and its calculations, it is in the best interest for Chicago Active Tails to segment its market toward local citizens. This is due to the fact that local citizens are always busy at work and could use the extra hand of help. The best time would be to service from 9am to 5pm Monday – Friday.

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Target Markets

Chicago Active Tails has one specific target markets. The specific target market is the local citizens of the north side of Chicago and surrounding communities. In this market Chicago Active Tails will work at promoting to those individuals who have very busy schedules.

Points of Difference

There are many characteristics that set Chicago Active Tails apart from our competitors;

We offer low cost visits starting at $12 for a walk or visit We administer medicine if needed at no additional cost We are open to accommodate our customers’ needs We don’t see the animals as pets we see them like family

Positioning

It is the desire for Chicago Active Tails to be known in customers’ minds as the best dog walking business that provides great customer services at a low cost that anyone can afford.

5. Marketing Program

Product Strategy

The Service line of Chicago Active Tails is relatively simple. We are offering the following services:

Regular business hours are 9:00 am - 5:00 pm (Monday - Friday)-We provide service outside of regular business office hours

30 Minute dog walks 30 Minute cat visits Cleaning of litter box Feeding/changing of water Administer Medication In home pet care

Our services are very basic and easy to remember. These services are things that need to be done at daily basics. To see all services, go to Appendix A

Price Strategy Chicago Active Tails pricing varies from the service or package. Single 30 minute walks

are $12.00 this includes basic commands, setting our fresh water, feeding, and administrating any medication if needed. This price is for any type of bread and every additional dog is $3.00. But by just one walk is $1.00 more expensive than if they book 10 walks. The reason why we decided to add the bi-weekly package is for the following two reason; one you just booked 10 walks which means that you just made $110.00 for just one dog, and two you just saved the

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customer $10.00. We also offer a weekly package for those who don’t like commitment. If they book four consecutive walks with us we give them the fifth free. So if you compare buying five walks every month you would pay each walk at $12.00 rather than if you book four consecutive walks you get the fifth free so there you are all ready saving $12.00. Our in home pet care is $50.00.  We provide service outside of regular business office hours. A $2.00 surcharge will be added for services before and after regular business hours 9am-5pm Monday through Friday as well as for Saturday/Sunday service hours are 8am-8pm for any visits. Our overnight in home pet sitting service hours are 8pm-8am. All Holiday services have an additional surcharge of $10.00 any overnight in home care pet sitting is a flat rate of $70.00 per night.

Promotion Strategy

Because Chicago Active Tails is a new dog walking business in Chicago, we must advertise our business extensively. The different methods of our promotion strategy are to pass around flyers promoting our business, submit an advertisement in the local shelters and pet stores. Through the use of different methods of promotion, we are able to reach a variety of people.

Passing out flyers is a great way to reach customers on our unique flyers we give them our contact information and a description of our business and services. We also advertise our website where they can explore online or on their mobile phone. The website gives a more detailed description of what our company has to offer. We will place these flyers in strategic places, such as shopping centers, veterinarians, pet stores, pet groomers, shelters, hotels, and gas stations in order to reach a variety of customers. To view the flyer, please turn to Appendix B

We are also going to offer a “Refer a Friend Program”. Every customer that refers a family member or friend will receive 10% off for the entire month. Each additional customer will be credited for the next month. To View the Coupon, please turn to Appendix C

Place Strategy

As noted before, Chicago Active Tails is currently servicing the following areas; Edgewater, Andersonville, Ravenswood, Lincoln Square, Uptown, Lakeview, Wrigleyville, Roscoe Village, Lincoln Park, Wicker Park, Bucktown, Old Town, and Gold Coast. We have targeted the high income locations. These are the type of customers that have a very busy schedule and also can afford to buy our services.

6. Financial Projections

The break-even amount of the typical walk is $12.00. The fixed costs for Chicago Active Tails are $5,000 which includes selling and administrative costs, insurance, marketing materials, and website costs. The unit variable cost is $7.00. This includes employee cost.

BEP={FC/(P-UVC)}

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BEP Quantity= {5,000/(12.00-7.00)}= 1,000 walks

BEP Revenue = 1,000 walks x $12.00/walk = $12,000

The figure that was calculated was the number of walks that must be booked to break-even. In order to determine the dollar amount, we multiplied the figure by the cost of a typical walk, $12.00. For Chicago Active Tails to brake-even in its first year of business, it must have $12,000 in revenue.

7. Organization

Chicago Active Tails is locally owned and operated. There are two owners, Brian Flores and Yussef Crespo, who operate the day-to-day dog walking business. They make the decisions concerning services, management, and personnel. Because Chicago Active Tails is a new business, Brian and Yussef will often work long hours to establish a good reputation for their dog walking business. There will be one other employee who will be employed at the opening of the business, and as the business grows, Brian and Yussef hope to add more people to the staff at Chicago Active Tails.

8. Implementation Plan

As a new business, Chicago Active Tails has a relatively short-term implementation plan. We have scheduled the following activities to be completed by the given dates;

Activities DatesCreate Advertisements June 2013Open Chicago Active Tails July 2013Distribute Flyers July2013Begin Coupons For “Refer a Friend” July 2013Research Dog events August 2013

9. Evaluation and Control

Chicago Active Tails has several objectives and goals that it aspires to meet. If for some reason those goals are delayed, perceived as unattainable or deviate from the original plan, corrective action must be taken.

Possible Deviations

1. There may not be enough demand to keep our business open year-round.2. Customers may be dissatisfied with our products or our service.

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3. We have set a goal of expanding to dog sponsoring service within five years and for some reason that may not be possible.

Possible Solutions

1. If there is a lack of demand we could try to promote our business during the winter months by expanding our minutes by moving 30 minutes to 40. Another possibility is to create a Chicago Active Tail reward card. This would award our customers for every booked walk or visit.

2. If customers are dissatisfied with our services we would work very closely with our customers in finding out where they are not satisfied. If customers are unhappy with the service, then the management would evaluate employees’ performances and offer suggestions. In hiring future employees, management would spend more time training and stressing the importance of customer service.

3. First, we must determine why the dog sponsoring events have been delayed. One reason may be that the managers are too busy to devote time to developing an adequate dog sponsoring service plan. If this is the case, another employee should be hired to handle the dog sponsoring service. If it is not possible because of finances, then Chicago Active Tails should looking in to getting a loan, look to cut cost, or increase sales.

Bibliography

Chicago Active Tails (2013) Dog walking site

Retrieved from www.chicagoactivetails.com

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This is the main website to Chicago active tails. This gives me more details of what the company

has to offer.

Kerin/Hartley/Rudelius. (2009), Marketing.

Retrieved from http://devry.vitalsource.com/#/books/0077590457

This book was my guide to how to write an appropriate Marketing plan.

Appendix A

Chicago Active Services

We provide service outside of regular business office hours. A $2.00 surcharge will be added for services before and after regular business hours 9am-5pm Monday through Friday as well as for Saturday/Sunday service hours are 8am-8pm for any visits. Our overnight in home  pet sitting

service hours are 8pm-8am.

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All Holiday services have an additional surcharge of $10.00  Any overnight in home care pet sitting is a flat rate of $70 per night.

Dogs Cats 30 Minute Walk Basic Commands Set out Fresh Water (Optional ) Feed (Optional) Administer Medication (Optional)

$12.00 *Each additional Dog - $3.00*

30 Minute visit Feeding Cleaning of litter box Exercise through play Administer Medication (Optional )

$12.00*Each additional Cat  $3.00*

*All visits can be adapted to your pets’ specific needs* Cat Visit Packages

Specials Dogs Cats

Weekly Package

Book 4 walks within a week and get the 5th walk FREE!

Bi-Weekly Package

Book 10 walks, get each walk for $11.00 1-Dog -$110 2-Dogs - $140 3-Dogs - $170

Weekly Package

Book 4 visits within a week and get the 5th visit FREE!

Bi-Weekly Package

Book 10 visits, get each visit for $11.00 1-Cat -$110 2-Cats - $140 3-Cats - $170

In Home Pet Care - $50We offer this for an overnight stay in your home.  This includes 3-walks per day, feeding, watering, and

medication as indicated by owner and cuddle time as well. Perfect for pets that get stressed by being away from home

Cancellation Policy

All services are paid in cash or check. Cancellations should be made no later than 8:00 AM central time on the same day, or the service will be charged at its full rate.

Appendix B

Chicago Active Tails Flyer

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Appendix C

Chicago Active Tails “Refer a friend” Coupon

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Save 10% for every Family or Friend that you recommend