Pet business marketing in tough economic times

There is no doubt that times are tough. The economy is severely hampering many businesses. So, what's a business to do?

I was meeting with a new prospect yesterday and we talked a lot about their marketing - what they've done in the past and sharing ideas about what they need to do for the future. But most importantly, we talked about the tough economy and how it is effecting their business, their marketing plans, and how they can still market with the resources they have and meet the goals they need to survive, and even thrive, in this desperate business climate.

One important item I shared with my prospect may or may not surprise you; what I see regularly from businesses is that during tough times, marketing is frequently the first to go. Many businesses believe that marketing is expendable during tough times. But in reality getting the word out about your business has never more important than during downs in the economy. You are now fighting, and fighting hard, for prospective customers, customers and customer loyalty.

During tough times, connecting with your current and prospective customers has never been as important as it is now. Businesses must provide the highest levels of customer service, have the utmost respect of prospects and customers, stand out from the competition, and build awareness and connect with prospective and current customers; because if they don't, those prospective customers and current customers will go somewhere else to fulfill their needs.

But how do you market when you have less resources? I say, market smart.

During my meeting with my potential client yesterday, I talked a lot about 'grass roots marketing.' What is 'grass roots marketing?'

'Grass roots marketing' is building awareness of your company from the ground up, connecting with customers the way they communicate, it's creative, it's personal - and the biggest benefit is you will learn much more about their wants and needs, you will be exchanging ideas, you will learn about your products and services and how they may or may not fulfill your customers needs.

By analyzing your business, your competition, your resources, your marketing options, and then taking that information to formulate a good 'grass roots marketing' plan that not only meets your goals, but meets your budget, really is possible. You just need good, experienced advice to help you. Contact Pawsible Marketing today to find out more.

We will be posting more about 'grass roots marketing' in upcoming posts so stay tuned, and subscribe to our blog vis RSS Feed or email to keep up to date on great ideas to help you market your business in tough times.

News: According to APPA, pet spending topped $43B in 2008

Looks like if you're in the pet business, you're in the right business!

According to an article just released yesterday by the American Pet Products Association:

Pet ownership and pet quality of life continues to rise. Despite the recession and cuts in discretionary spending, the pet industry is robust and resilient, according to the American Pet Products Association.

APPA’s latest pet industry spending figures show that total pet spending reached $43.2 billion in 2008, with no declines in any category from 2007. APPA forecasts that it won’t stop there either, estimating that total pet spending for 2009 will reach $45.4 billion.

APPA released the data Feb. 13 at Global Pet Expo in Orlando, Fla.

Leading the way in the health care-related pet spending categories is veterinary care. Total spending in this segment in 2008 was $11.1 billion.

Medical advances have made for a much broader and more elaborate menu of services, such as cat scans, root canals, cancer surgery, antibiotics and grief counseling. This leads to an anticipated 9.9 percent growth in this category to $12.2 billion in 2009.

With the added costs of pet health care comes an increase in pet insurance, currently estimated at $271 million and projected to grow to $500 million by 2012.

Pet services is the next fastest growing category. This includes grooming, boarding, training and pet sitting, among others. In 2008, total spending reached $3.2 billion. This category is expected to grow 5.9 percent to reach $3.4 billion in 2009.

Other reported categories include pet food, which reached $16.8 billion in 2008 and is expected to grow 3.6 percent to $17.4 billion in 2009, supplies and over the counter medication, which reached $10 billion in 2008 and is expected to grow 2.1 percent to $10.2 billion in 2009, and live animal purchases, which reached $2.1 billion in 2008 and is expected to grow 4.7 percent to $2.2 billion in 2009.

“These numbers further demonstrate that people are more willing to sacrifice on themselves before trimming back on their four-legged friends,” said Bob Vetere, APPA president. “People want to reward their pets in human terms and even in this economy are still demanding the highest quality products and services.

“The pet industry continues to grow at a record pace and has proven to remain strong during times of change, stress and setbacks. As pet ownership and pet quality of life continues to rise, so will the pet industry.”

APPA is a nonprofit trade association serving the interests of the pet products industry.

News: Spending is strong on premium pet products

According to a recent article in the Detroit Free Press, spending is strong on premium pet food, toys and other products and services. The article states:

"Susie Atherton, founder of Pet Industry Retailers, an online networking group, said pet shop owners are cautiously optimistic, despite a gloomy economy.

"Since Americans consider their pets part of the family, they will continue to spend money on them," she said in an e-mail.

Atherton said that while some consumers are cutting back on nonessentials and trading down to cheaper brands, many shops are seeing steady or increased sales in "super premium pet food," treats and toys.

Joe Fucini, spokesman for Pet Supplies Plus, a Farmington Hills-based chain of 250 independently owned stores in 22 states, said he believes customers are spending more carefully but will buy high-quality products that last, even if they cost more.

"The upside of the current economic turmoil is that suppliers are more eager to sell and more eager to give you good deals," he said.

The store chain recently surveyed 328 pet owners on its Web site; 93% said it's more fun to shop for pets than family."

To read more, visit the Detroit Free Press website.

Super Bowl is going to the dogs!

We all know that one of the fun things about watching the Super Bowl beyond the big game of course, is watching the creative and fun commercials.

I always enjoy the commercials as much as the game, even when my beloved Colts and Cowboys were in there battling it out for the championship in past years. Ok, so you're not a fan...anywho...

At $3 Million for 30 seconds - these ads have got to be good, effective, creative and fun. So, if you're going to be watching the Super Bowl this weekend, be on the look out for Pedigree's new Pet Adoption drive commercial.

Watch closely as Pedigree doesn't push their product, but pushes their cause in an effort to build their brand, their company and product loyalty, a cause close to their hearts, and in turn build their sales. And visit the Pedigree website for more information about their adoption drive.

Here's a preview:


According to the Wall Street Journal:

"Pedigree, a dog-food brand owned by Mars, is joining the likes of well-known marketers such as Anheuser-Busch InBev and PepsiCo in the advertising battle taking place during the gridiron matchup on Feb. 1.

But rather than hawking its chow, the pet-food maker will be pushing a cause: pet adoption. The advertising strategy of promoting a cause instead of peddling one's wares more directly in tough times -- especially in such a fiercely competitive product category -- could fall short."

And according to Ad Age Magazine:

Pedigree takes a lighthearted approach to Bowl ad and also aims to increase dog adoptions, and feed shelter dogs.

"NEW YORK (AdAge.com) -- Pet-food marketer Pedigree may be known for ads that tug at the heartstrings, but for the Super Bowl it plans to make viewers laugh.

For its first Super Bowl commercial, Pedigree opts for a humorous tack to highlight the role pooches play in our lives. The 30-second ad, which will run during the first quarter of Super Bowl XLIII, airing Feb. 1 on NBC, imagines life with wild animals instead of Fido: a dog sticking its head out the car window is replaced with a wild boar, and rather than a pup chasing the mailman, it's an ostrich."

According to John Anton, marketing director for Pedigree, "we go into the Super Bowl with a lot of confidence from a business point of view," Mr. Anton said. "It doesn't feel risky for us because we've had so much success over the past four years of the campaign ... it really does help more dogs get adopted, and inevitably, it's going to better help us communicate to consumers what we stand for," he said.

For a full list of advertisers for the Super Bowl, visit Ad Age's "Who's Buying What in Super Bowl XLIII."

Reportlinker.com announces a new market research report available related to the pet food industry

Reportlinker.com announces a new market research report related to the Pet food industry available in its catalog.

Learn about the Pet Food in The U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition

Here's a synopsis: (Learn more about the report - available for purchase $4700.00)

The U.S. pet food market has not just survived the spring 2007 recalls but proven its resiliency, with 2007 sales up over previous years and healthy growth continuing through 2008.

Yet heightened safety concerns on the part of pet food makers and consumers continue to shape product development and marketing, as well as the choices of pet owners looking for the safest and healthiest products possible.

At the top of the list are kibble, canned and raw/frozen foods made with ingredients that are natural, organic, grain-free/non-allergenic and pure, as well as made in the U.S.A., locally grown, “whole” (fruits, vegetables, grains, etc.) and human-grade. Foods making functional appeals also continue to proliferate, especially those targeting age- and weight-related conditions via the inclusion of novel ingredients like glucosamine, omega fatty acids, antioxidants and probiotics.

In other words, premium pet foods remain the primary value growth driver in the U.S. market, with ever higher quality ingredients fueling the premium wave.

Working with animals, a quick start guide!

I was visiting the site Dog Star Daily the other day, one of my favorite sites for tips, tricks and information on canines. I ran across a good basic article for those considering working with animals or starting a new business related to working with 'best friends.'

Check out this article by Veronica Boutelle, MA, CTC, it includes some good basic information on getting started in your new pet business. And if you are looking for more guidance, here is a great list of books all geared toward starting or running a business or career with animals, including the recently published "101 Best Businesses for Pet Lovers."

News: Pet owners splurge on premium food

According to a recent article on MSNBC, pet owners are splurging on premium foods for their animal companions.

"The premiumization trend in the global pet food market indicates that pet owning consumers are as willing to spend more on premium food infused with health fortifying ingredients such as glucosamine, omega fatty acids, antioxidants, and probiotics for their pets as they are for themselves.

Premium pet foods cover all bases -- from natural/organic to functional/nutraceutical to special diet (segmented by lifestage, weight, health condition, breed, etc.) to gourmet -- while also often reflecting trends in human foods.

North America accounted for the largest share of global pet food sales in 2008 with 40%. "Particularly in the United States, the premiumization trend goes beyond the tendency Americans have to be better educated about health and nutrition issues. In addition, the pervasive humanization dynamic cannot be underestimated. Pet owners often view their pets as part of the family, or even as surrogate 'children.' Thus they are looking for the safest and healthiest products possible," says Tatjana Meerman, Publisher of Packaged Facts. "

To read more, visit the MSNBC website article.