Washington State University - Advertising Campaign course (ADVER480) Spring 2011

1. The First Time
Moments By:
Campaign Kristiana Wright
Madeline Gregory
for PETCO Blair Breitenstein
Kelsey Pearman
Spring 2011 Erika Rattray
Christy Koontz
Alli Price
1

2. Executive Summary- 3
Situation Analysis- 4
The Market- 5
Competitive Position- 14
Advertising History- 17
The Consumer- 21
Dealers, Distributors & Brokers- 22
Sales Promotion- 23
SWOT Analysis- 27
Campaign Objectives- 28
Primary Research- 29
Recommended Target Market- 30
Selected Emphasis Regions- 36
Media Plan- 37
Objectives
Media Rationale
Cost Efficiency Analysis - 38
Media Flow Chart - 51
Consumer Media Channels - 52
Creative Strategy -56
Sales Promotions - 65
Budget - 72
Promotions Flow Chart - 80
Appendix -81
Citations - 83
Contacts - 85
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3. Executive Summary
What is it?
PETCO is a specialty pet food and supply store founded in 1965 headquartered in San Diego, CA. PETCO also specializes in services such
as grooming and boarding. The company lacks a brand identity with consumers. We see this campaign as an opportunity to build brand
identity for PETCO and differentiate it from competitors such as Walmart and PetSmart.
Who is PETCO’s current customer?
The average PETCO customer is affluent, has a higher income and tends to spend substantial amounts of money on caring for their pets.
One large differentiating trend for PETCO is that on average, PETCO receipt totals are higher there than any other pet and supply store,
including PetSmart and mass retailers such as Walmart. This shows that once shoppers begin purchasing their pet food and supplies at
PETCO, they are unlikely to switch and many of them become lifetime users.
Who is the proposed target audience?
For the purpose of this campaign, we recommend targeting adults 25-34, caucasian, with a college degree and an income of $40,000+.
The target demographic may have a child. This demographic was chosen based on high instance of first time pet ownership and a high
potential for generating lifetime brand-loyal consumers. It is this demographic where we have identified the most opportunity for
growth.
How do we plan to reach them?
Since PETCO lacks brand identity and awareness with consumers, we recommend a heavy emphasis on promotions. Promotions will be
directed toward both trade and consumers. Media will be used as well not only to build brand identity as well as drive traffic to stores
and to promotional events. Promotions and outdoor media will be focused in our key market cities while TV, Radio and Internet will be
distributed nationally.
The BIG Idea!
The foundation of this campaign is “first time moments”. This concept is inspired by the sentiment of first time parenting, just projected
onto first time pet owners. We want to convey this “first time feeling” through every part of the campaign and portray PETCO and THE
one-stop-shop for every pet owning need from the “first time” throughout a pets life.
3

4. Situation Analysis
Defining the Market
This report provides a snap shot of what happening in the pet supply
and pet food market. While most market analyses analyze a single
product or service, this specific analysis will delve into both the pet
supply and pet food markets. Within the pet food and supply market
there a plethora of products including food-wet and dry varieties-
supplies such as bedding and cat litter, toys and an endless amount of
leashes, harnesses and collars to name a few. PETCO is a top competi-
tor within this market as they offer a wide variety of products within
the category. Two distinct segments will be addressed within this
report;
1) Pet Food: Including all forms of food as well as treats, biscuits,
snacks and beverages.
2) Pet Supplies: The most significant portion of pet supply sales con-
sist of cat litter but also includes medicines, leashes and leads, toys,
clothing, clean-up items, training aids and many other specialized
items for the care of all types of pets.
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5. Defining the Market
SIC code
PETCO Pet Supply Stores Standard Industrial Classification (SIC) Code
has the potential to fall several different classifications. The main in-
dustries where PETCO competes are pet products, consumer products
manufacturers, consumer services, veterinary care, retail, and non-
store retail. Since PETCO competes in so many different markets, the
SIC code may not be as specific as other companies.
First, PETCO competes in consumer product manufacturing which
places it in the classification of 2047 which is dog and cat food. Organi-
zations under this category “primarily engage in manufacturing of dog
and cat food,” Also similar to this category and another classification
that PETCO falls under is 2048 which manufacturers food for other
animals.
Next, veterinary services are a market PETCO also competes in. SIC
code 0742 classifying veterinary services for animal specialties. PETCO
offers veterinary services where they provide vaccinations and a variety
of other health care related services. Similar to this, PETCO also offers
boarding kennels, and pet grooming which belongs in the SIC 0752,
Animal Specialty Services, Except Veterinary. Note: Sales of pet food and supplies, by segment, 2007 and
2009 (Mintel, 2009).
Finally, PETCO Pet Supply Stores also are placed in SIC 5999 which
consists of Miscellaneous Retail Stores, Not Elsewhere Classified which
encompasses pet food stores and pet supply stores as well.
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6. Market Size and Growth Trends
In 2010 alone, pet supply sales exceeded $10.4 billion and pet food reached $17.7
billion. The pet food and supply category has shown steady growth annually due to
rising demand as pet populations rise and increasing prices and has proven to be rela-
tively recession proof. Mintel forecasts continued growth at just less than 3% annually
in the foreseeable future.
The 2007 pet food and supply market was a very telling time as neither the economic unrest or
widespread recalls seemed to have a substantial effect on category sales with 2.9% annual growth
in 2007 and 3.2% growth in 2008 (Mintel, 2009). Sales were driven up in part by more expensive
options, namely premium and organic options becoming more popular as consumers lost some
trust in household brands due to contaminated pet food.
The economic environment of 2007 did not see a decrease in sales as a whole as consumers did
not quit buying food and supplies for their pets. In fact, more than half of pet owners reported cut-
ting back on their personal needs before those of their pets (Mintel, 2009). Consumers did how-
ever tend to turn to cheaper outlets such as Walmart and Costco Wholesale to save money. This
thrifty approach to pet care did take some shoppers away from specialty stores such as PETCO as
consumers searched for ways to conserve resources during times of economic unrest.
Note: Sales of pet food and supplies, by segment, 2007 and 2009
(Mintel, 2009)
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7. Market Forecast
Mintel forecasts substantial growth between now and 2014 as pet
populations rise and pet owners increasingly view their pets as fam-
ily members. Mintel forecasts the pet food and supply market will
grow more than 14% between now and 2014 with forecasted sales
well over $31 million in pet food and supplies.
Like previously stated the pet market is a very strong market in the
recession and remains resilient. According to Mintel, pet owners
have a vested interest in their pets and commit to feeding them the
best products and providing them with the best supplies possible.
There are four main factors that influence steady growth in the pet
market.
1. Specialization: Pet owners are willing to pay a premium
price for special pet foods. Pet owners have taken a special
interest in organic and natural foods for their pets.
2.Inflation: The inflation in food prices has forced pet food
manufacturers to push through price increases and be in
novative in tactics to reduce cost such as smaller packages. Note: Total U.S. Retail Sales of Pet Food and Supplied, at Current
3.Recall After Effects: In the spring of 2007, there was Prices 2004-2014 (Mintel, 2009).
a wide-spread recall of pet foods. This recall did not affect
the pet food industry as extensively as many thought. In
fact, the recalls motivated most pet owners to seek out
“safer alternatives” in their pet food, which resulted in
spending more on pet foods.
4.Increased emphasis on value: offering the highest qual
ity nutrition and convince pet owners they provide this at a
reasonable price.
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8. Market Drivers
Pet population is the most prominent driver of pet
food and supply sales. According to American Pet
Product Association, dogs and cats account for
96% of pet food sales. In the past two years the
cat and dog population has risen 4% pointing to a
relatively steady increase in demand.
As the U.S. population as a whole ages, house
holds with children under 18 decrease. Thus, we
have identified the increase in the Hispanic mar-
ket as a prominant market driver. Especially they
continue to become evermore affluent, they are
developing into a promising consumer group.
Note: U.S. Pet Population (Mintel, 2009). Note: Small Animals includes rabbits, hamsters,
guinea pigs, ferrets, mice, rats, gerbils, chinchillas, hermit crabs, pot-bellied pigs and hedge-
hogs.
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9. Market Drivers Cont’d
In addition to steady pet population growth, children in the house-
hold are a major driver to owning pets. Mintel shows that house-
holds with children are 77% more likely than average to own a dog
and 37% more likely to own a cat.
Types of pets in the household, by presence of children (Mintel, 2009). Base
2,000 adults aged 18+ with internet.
9

10. Market Drivers Continued
While the pet food and supply industry has relied on the strong connection between pet own-
ership and children in the past, as the U.S.’s population as a whole is aging, households with
children are decreasing. In 2008 the number of households declined significantly with 69.4%
of households not having children.
However, Mintel forecasts a 13.9% increase in Hispanic children under 18 between 2009 and
2014. This household growth could have a powerful influence over the pet and food supply
market in the next few years. Experion Simmons data indicates Hispanic households are
overall less likely to own a pet, Mintel forecasts ownership rates will rise as the U.S. Hispanic
population becomes more affluent.
Number of children under 18 by race in HH (Mintel, 2009)
10

11. The Market Place
There are four leading companies in the pet food and supply
category:
Nestle Purina holds a broad line of brands and products
including Beneful, ONE and Dog Chow. This company has
product offerings across a variety of price points and pet care
needs and has proven to be a competitive and successful brand
as consumers tend to trust the well-recognized red and white
checkerboard logo.
Mars Inc. is a privately held brand. Their core line, Pedigree
dog food, has seen recent sales declines and as a result have
seen category slip.
Del Monte expanded it’s presence in the pet food category in
2006 when it acquired Meow Mix and Milk-Bone brands. In
2009 the company saw an overall category decline in both cat
and dog food. Other lines such as Alley Cat, and Gravy Train
saw growth as they have a lower price point. Other lines that
also saw growth included Kibbles ‘n Bits Wholesome Medley
and Meow Mix Wholesome Goodness which both offer bal-
ances natural ingredients.
Proctor & Gamble has two brands that have performed well
historically: Eukanuba and Iams. Eukanuba is a premium
product available only through specialty stores. Iams is also a
premium brand that performs well at supermarket and mass
merchant channels. P & G has focused on the premium market
which has helped to position them well in the pet food market.
FDMx sales of leading pet food and supplies companies, 2008 and 2009
(Mintel, 2009).
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12. The market place cont’d.
Pet supplies account for 38% of total pet food and pet sup-
plies sales and is the largest segment in the market. Since
2007 dog food and cat food have yielded slightly higher
growth in revenue due to consumers seeking premium nutri-
tion products which tend to have a higher price point.
The pet food and pet supply market is divided into segments
by species and function. From here they are separated into
four separate segments; dog food, cat food, food for pets
other than dogs and cats, and pet supplies. This research
supports the earlier discussion and explanation of the SIC
codes.
• Dog Food: Includes all foods, treats and biscuits.
• Cat Food: Includes all foods, treats and snacks.
• Food for pets other than dog and cats: Includes food,
snacks and other products for smaller animals.
• Pet Supplies: Most significantly consists of cat litter, but
also includes medicines, leashes, toys, clothing etc.
These four segments do not compete directly but are related
indirectly in the following ways:
• Branding: Many of the top brands stretch across both dog
foods and cat foods
• Nutritional Trends: Natural, balanced diets have spread
across both dog and cat food categories.
• Budgeting: Priority is placed on superior nutrition but may
result in fewer pet supplies purchased as consumers strive to
save money.
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13. Dog and cat food have seen steady
growth since 2004. Pet food other
than dog and cat have not per-
formed as well. Pet supplies, how-
ever, have continued to perform well
historically.
Sales and Forecast of Pet Food and Supplies, by segment, at current prices
(Mintel, 2009)
America's Pet Owners- Sales of Pet Food and Supplies by segment (Mintel, 2009).
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14. Competitive position
The top competitors and distributors of pet supplies are Walmart, PetSmart, and PETCO. PETCO Pet Supply Stores is the
second-largest US retailer of specialty pet supplies behind PetSmart. The company has more than 1,000 stores nationwide
with atleast one store in all 50 states and the District of Columbia, making it the only pet store to cover the entire US market.
PETCO carries a wide selection of products varying from food to toys, beds, litter, and aquatic supplies. PETCO places a strong
emphasis on their brand having something fit for every pet. They also capitalize on their 100% satisfaction guaranteed policy.
Walmart is the world’s largest retailer chain with $405 billion in sales for the end of the fiscal year of January 31, 2010. Walmart
has more than 4,000 facilities which include Walmart supercenters, discount stores, Neighborhood Markets and Sam’s Club
warehouses (Walmart Fact Sheet, 2010).
In 2009 Walmart was estimated to account for $1.4 billion in sales of pet supplies. However in 2010 Walmart has cut down in
its offering of pet supplies due to the “big box” law in some communities within the United States which limits supercenters
to 100,000 square feet. According to Mintel, Walmart, along with PetSmart and PETCO are among the most popular retailers
who target the primary/occasional buyer of pet supplies.
Pet owners who shop at Walmart seek brand names at affordable prices. These consumers may have a lower household income
but does not exclude higher income consumers. Walmart is known for bringing mass quantities at the best value as well as
one-stop shopping convince to the consumer.
PETCO differs from Walmart, the leading competitor, in two important ways. PETCO consumers generally have a higher
household income compared to Walmart consumers. The second important difference is in products available. PETCO is a
specialty store for pets, where everything a pet owner could ever need or want for their pet if offered. In contrast, Walmart is
viewed as a mass retailer in food and clothing and only carries the basics in pet supplies with limited selection. While PETCO
excels at offering a larger variety of products, their price point is higher than Walmart which is seen by some consumers as
undesirable.
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15. Competitive position cont’d
In 2006, PetSmart sales were nearly $4.2 billion. Since then Walmart has become the top retailer of pet supplies and foods followed
by PETCO. PetSmart and PETCO both cater to pets bringing thousands of pet products and supplies in one location to the consumer.
PetSmart, like PETCO, has created the identity of your pet being a family member. PetSmart is operating in more than 48 states and has
1,160 stores in the United States. Like PetSmart, PETCO is operating in all 50 states with about 1,000 stores nationwide (“ Facts Sheet-
General ”, 2011) . Both PetSmart and PetSmart on-line market offer more 10,500 different products for pets (“PetSmart Fun Facts,” 2010).
PetSmart targets higher end incomes consumers. Income is strongly correlated with which stores the consumer would shop at. PetSmart
offers a PetPerks savings card, which consumers can use to receive discounts on pet supplies within the store. Other services in PetSmart
stores include boarding, grooming, adoptions, training classes and even veterinary services. PetSmart and PETCO chains are seen and
looked at for their expertise in pets and a wide variety of pet supplies and pet foods. PetSmart is most similar to PETCO when comparing
the competition. Like PetSmart, PETCO offers PALS saving card for frequent consumers. In addition, PETCO also offers boarding, groom-
ing, adoptions, training classes, DNA breed testing, pet medical insurance and veterinary services (“ Facts Sheet- General”, 2011). Like
PetSmart, PETCO also has a green living policy to help ensure a safe environment for both our pets and family.
The most important differentiating factor between PETCO and PetSmart is that PETCO
shoppers typically leave the store with a higher receipt total that PetSmart shoppers. This
shows PETCO has been successful in capturing a highly affluent consumer base which is
unlikely to switch to other outlets such as Walmart.
The following charts offer a com- Type PETCO PetSmart Walmart
parison of popular pet food and
supplies available at Walmart, Beneful Original $12.99/ 7 lbs. $10.99/ 7 lbs. $9.98/7 lbs.
PETCO and PetSmart. As you will
see, PETCO does have a slightly Iams Weight $21.99/ 17.5 lbs. $12.99/ 8 lbs. $17.88/17.5 lbs.
higher price point in most, but not Control $38.99/40 lbs.
all cases. Walmart tends to be the
Pedigree Complete $17.24/ 20 lbs. $13.49/ 20 lbs. $18.24/20 lbs.
majority leader in low prices while
Nutrition
specialty stores-such as PETCO
and PetSmart tend to offer a wider Iams Premium $21.99/13.4 lbs. $19.99/13.4 lbs. $18.98/13.4 lbs.
selection. Protection
15

16. Type PETCO PetSmart Walmart
Meow Mix $14.49/17.6 lbs. $11.49/16 lbs. $11.77/17.6 lbs
Purina One $13.40/7 lbs. $11.99/7 lbs. $10.98/7 lbs.
Sensitive System
Iams Proactive $13.99/6.8 lbs. $13.99/6.8 lbs. $12.77/6.8 lbs.
Health
The Good Life $9.99/6 lbs. $8.59/6 lbs. $9.97/6 lbs.
Product PETCO PetSmart Walmart
Scoop Away Cat $9.37/25 lbs. $9.99/25 lbs. $9.37/25 lbs.
Litter
Purina Beggin $7.99/10 oz. $12.99 25 oz. $9.92/25 oz.
Strips $29.99/40 oz.
Dingo Dental Stick $4.99/6.02 oz. $3.99/6.2 oz. $6.95/3.1 oz.
API Fresh $31.99 $32.29 Not Available
Master Kit
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17. The Consumer
Size of the Consumer Market:
The size of the pet food and supply market consists of about 86 percent of the United States population who own either a cat
or dog. This is a very large percentage of the United States population, therefore showing that pet food and supplies are a constant
need amongst Americans. Also, about 32 percent of the US population owns another type of animal (fish, bird, reptile, rodent, rab-
bit, or ferret) (Mintel Market Drivers, 2009).
Purchasing Habits and Usage:
In 2009 the estimated sales of pet food and supplies were about 27.5 billion dollars, which is an increase of 2.9 percent over
2008 (Mintel, 2009). Specifically the purchasing habits among pet owners have become more about nutrition trends. “The
idea of natural, balanced, diets has spread across both dog and cat food. Specialization
is also prevalent in other pet food, where specific varieties exist at the species and even
sub-species level” (Mintel America’s Pet Owners). Since the importance of nutrition has increased, pet stores have seen a
small decrease in the buying habits of pet supplies like toys. Mintel states that it could be a trade-off that pet owners are willing to
spend more money on food rather than buying an unnecessary amount of toys.
Older people that own an animal, specifically a dog or cat, will most likely buy weight management food for their pet. This shows
that older people most likely have older pets and will provide care for their animal that is similar to their own lifestyle needs.
Younger owners of pets who most likely have children in the house are more likely to feed a healthier choice to their animal, just as
they would to their own children (Mintel, 2009).
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18. The Consumer Cont’d
Pets by Presence All Children in No Children in Today’s PETCO con-
of Children % HH % HH % sumer is likely to have
at least one child in the
Dog 44 62 35 household.
Cat 33 41 30
All 18-24 25-34 35-44 45-54 55-64 65+
% % % % % % % Pet ownership is rela-
tively equal across
HH Owns a 40 48 40 45 46 37 26 agegroups. Specific to
Dog PETCO, shoppers tend to
HH Owns a 28 32 29 31 31 27 19 be older, simply because
Cat they have more dispos-
able income.
HH Owns 58 63 62 63 65 55 39
any Pet
All Under $25k- $50k- $75k- $100k- $150k+
$25k 49.9k 74.9k 99.9k 149.9k
Pet ownership is relative-
% % % % % % % ly low with consumers
whose income is under
HH Owns a 40 28 33 44 48 45 50 $40k. Above $40k, in-
Dog stance of pet ownership
HH Owns a 28 20 26 30 31 34 30 is significantly higher.
Cat
HH Owns 58 44 51 62 64 66 66
any Pet
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19. Total 18-24 25-34 35-44 45-54 55-64 65+
The Market Adults with internet
access who own a
% % % % % %
dog
For Companionship 86 90 83 85 84 85
For Security 48 56 53 47 48 39
The main reasons for a consumer Because I have 46 54 43 41 48 45
to own a pet is companionship and always had one
security. About 86 percent of dog Other 8 4 6 8 9 7
owners and about 75 percent of cat
owners believe that companion-
ship is the most important reason
for owning a pet in the household. All One or More No Children
% Children %
Reports from Mintel show that the %
average pet owner would be Cau-
casian, between the ages of 45-54, HH Owns Pet 58 63 55
have children, and have a higher
income. Children play a large part
HH Owns a 40 44 38
when owning an animal and it Dog
shows that about 63 percent of the HH Owns a 28 29 28
US population has one or more Cat
children in a household with a pet
(Mintel Pet Owners) HH Owns a 14 17 13
Cat and Dog
HH Owns a 8 14 5
Fish
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20. Attitudes and Knowledge
Since most pet owners have pets for companionship and security, they are most likely to purchase food and supplies that
best supports their pets health and longevity and look at these purchases as an investment in their pets longevity. When
selecting pet food and supplies owners seek quality products just as they do for their own personal purchase needs.
Owning a pet also increases the owner’s quality of life. A study showed, “The most common theme is improved health and
well being, and among the many specifics are stress reduction, prevention of depression, lower blood pressure, and reduced
risk of heart disease” (Mintel, 2009). Pet owners are aware that they can actually improve their own lifestyle, and have that
sense of care and compassion simply by having a pet in the household.
Factors Influencing Brand Selection:
Most of the consumers who own a pet are aware that their pet’s nutritional needs change as they age. As said before, older
animals will need a weight management diet whereas younger animals will need a diet with a lot of nutrition to support
healthy bone, joint and muscle growth. Consumers with a higher income are more likely to buy more expensive food for
their animal, whereas lower income buyers are more likely to buy a store brand product to save money.
20

21. Advertising History
Advertising for leading pet supply retailers uses powerful emotion in their In 1999, the PETCO Foundation began incorporating
advertising campaigns to gain consumer awareness and support. By focusing charitable giving into their advertising to raise aware-
on the idea that pets are more than animals, but like members of the family, ness and funding by donating to help save millions
consumers feel the need to provide top care for their pets. The majority of pet of abandoned animals. By its 10th year in 2009 the
owners consider their pet(s) to be part of the family and are thus interested in PETCO Foundation had raised nearly $70 million
purchasing products that will guarantee longevity and quality of life. Adver- dollars to help more than 7,000 animal welfare part-
tising within the industry has both reflected on and created these notions ners nationwide.
through the use of powerful messages with a strong emotional appeal. In 2004, PETCO sponsored a brand new ballpark
Advertising Spending: in downtown San Diego which they named PETCO
Park. The park has capacity for over 42,000 people,
Currently, Walmart is the leading pet supply retailer followed by PetSmart which boosts exposure to PETCO advertising. PETCO
and PETCO. Walmart increased advertising spending in 2008 for their pet launched an advertising creative tagline of “PETCO,
care products due to sales in pet supplies remaining consistent despite the where the pets go.” This message was effective at ap-
poor economy. pealing to consumers and helped PETCO become a
more recognizable pet supplier.
According to Kantar media, from January through October 2010, PETCO
spent $12 million on measured media in the US. In comparison, during the Advertising expenditures:
same time period, PetSmart spent $58 million in advertising. In 2011, PETCO
PETCO- $12 million
is looking to increase spending in advertising and promotions.
PetSmart- $58 million
PETCO
When PETCO- originally called UPCO or United Pharmaceutical Compa- Despite spending relatively low amounts of money on
ny- opened its first retail store in La Mesa, California in 1976, the company advertising (compared to other companies) consum-
mission and advertising campaign was to provide quality pet and veteri- ers reported remembering PETCO’s slogan more than
nary supplies to sell to the public as well as animal professionals at lower leading companies including one of its top competi-
discounted prices. In 1995 PETCO became known for also providing pet tors, PetSmart (Maquire, 2005). The message behind
services such as grooming. That year they also launched a customer loyalty this campaign is that people shop for themselves at
program, PETCO Animal Lovers Save (P.A.L.S). supermarkets, because they are specialized in prod-
ucts “for people.” Pets deserve to have products that
are specialized for them, at PETCO.
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22. Dealers/ Distributors/Brokers
Pet stores and vet offices dominate as the most trusted distribution channels for pet food and supplies. While other channels exist
including supermarkets and mass merchandizers such as Costco, consumers tend to prefer channels that can offer convenience,
value and expertise. The top five retailers at Walmart, PetSmart, PETCO, Supermarkets, Target and mass merchandizers (in order).
In 2010, the combination of these channels brought in more than $8.5 billion.
The leading manufacturers are Nestle Purina, Clorox Company, Hartz Mountain Corp. and Church & Dwight and Co. Inc.
The current sales leader Walmart thrives on offering one of the most valued attributes- low price. Stores like PETCO can leverage
their offering of quality, expertise, variety and durability of goods. PETCO stores use 10 distribution houses located across the U.S.
PETCO and PetSmart are different than other retailers because they offer online retail services. And the stores offer perks which
other stores are unable to offer, because majority of smaller competitors have fewer stores resulting in less profit. Both of these
stores also offer in store services in addition to products. The services include, boarding, grooming, adoptions, vets, training class-
es, and a unique experience which is, you can shop with your pet. Also “salad bars” of dog bones offer consumers the opportunity to
shop for your dog an alternative way. Petco employees are responsible for unloading products from packages and stocking shelves.
Employees restock shelves once a week.
22

23. Sales Promotion
The primary focus of their products is quality. PETCO states that In regards to promotional packaging, PETCO also utilizes Quick
its brand is the “name you trust and the quality you demand, all for Response codes on their pet supplies to promote interaction as
a great value”. PETCO uses a lot of couponing tactics to generate well. They also have printable coupons for their consumers to
sales and encourage consumers to purchase and try their products. access on their website and print them off to redeem them and
Some other promotions PETCO utilizes to drive brand interactions receive sales on their PETCO supplies, products and services.
and purchases are sweepstakes and contests.
Another major promotional tactic that PETCO has developed
PETCO ran a “Once a day $50 Gift Card Giveaway” Sweepstakes. is their PETCO PALS club. This club has a free membership so
It began November 27th 2009 and ended on December 31, 2009. In there is very little risk for their consumers to join. Once consum-
this sweepstakes, contestants could enter themselves through email ers join they can immediately begin to enjoy the benefits PETCO
for a chance to win a $50 gift card to use on their favorite PETCO has to offer. Right away consumers enjoy exclusive offers and
pet supplies. They could enter themselves once a day for 34 days. rewards as well as are up for customized offers. When consumers
shop with their PETCO PALS club they can save money instantly
PETCO also ran a sweepstakes called “PETCO Sweepstakes” with PALS. The PALS club offers storewide savings on products
where contestants could answer trivia questions regarding facts ranging from supplies and a wide selection of nutritious food
about PETCO as a company and if answered correctly they could to incredible toys and treats. PALS also allows consumers to be
win a PETCO gift card with a $50 value. This promoted the brand invited to exclusive invitations to pet-co friendly events.
by engaging the contestants as well as integrating trivia facts about
PETCO in a fun and interesting way. Another sweepstakes they
ran also called “PETCO Sweepstakes” where PETCO shoppers PETCO also has many ways on their website to inte-
could stop in at any PETCO store and fill out an entry form to win grate their consumers into their products. They have blogs where
one of 3 Ford Escape hybrids, plus a gas card for a year. By filling people can join and meet other pet owners and share stories,
out this form contestants could also be up for winning one of over advice, and information on products regarding their pets. They
5,000 $25 or $50 PETCO gift cards. This sweepstakes ran August also include upcoming events going on that includes pets for their
24th 2008. PETCO also ran the “I’m home with PETCO” sweep- consumers to participate in which further promotes their brand.
stakes where contestants could win a $2500 PETCO gift card and a
matching donation to their favorite shelter.
23

24. SALES PROMOTION- Internet
The internet has proven to be a very successful advertising medium for PETCO, raising awareness about the
company and boosting sales. The PETCO website, launched in 2000 utilized emailing and helped gain loyal
customers by giving special deals, coupons, and pet care information. Keep in mind, in 2000, few compa-
nies were truly leveraging the internet to create a online business process and the early adoption of PETCO
gave them an edge in a relatively clutter free cyber world.
In the infancy of their online advertising, PETCO offered coupons for PETCO products, free products such
as small bags of dog food, and discounts on various merchandise. This helped build a strong customer base
and gain purchasing out of the store.
To make the website personal, PETCO began an e-mail campaign targeting pet owners by type. Pet own-
ers had an option to register information on their pets that allowed PETCO to email recommendations on
specific products and information to better support and care for their individual pets (Maguire, 2005)
Using an internet review application from BazzarVoice, in October of 2006, PETCO incorporated an area
to post consumer reviews of products and services provided by PETCO on their site. This enabled custom-
ers to share their true opinions and thoughts about PETCO products for other customers to see. This helps
build trust in the company and at times has proven to be more successful that traditional, company spon-
sored advertising.
For the email campaign, PETCO chose six top-rated products for each pet type and included positive re-
views on these products and sent them to matching pet-type owners on the mailing list. This helped boost
the image the PETCO is indeed “where the pets go” to get quality and personal care. Email recipients could
click-through on the message to read the rest of the featured reviews, as well as other reviews of the prod-
uct. Vice President of E-Commerce said that emails containing reviews had a 200% higher click through
rate (Internet Retailer, 2008).
The website currently sells everything from dog clothing to grooming kits and has helped the company rise
to one of the country's largest animal and supplies retailers.
In addition, PETCO launched a specialized newsletter with animal care information and excusive offers
available on their website. This campaign was especially successful in its early years and currently has al-
lowed PETCO to obtain the number three spot for most online purchases for a pet supply retailer (Mintel,
2009).
24

25. Social Media:
PETCO joined the social media bandwagon and has a Twitter and Facebook account as well as a YouTube channel. These social media
sites allow followers to interact and connect with other pet owners, share experiences and recommendations, and get expert advice. In
addition, these channels help to create a sense of community between PETCO shoppers.
Television:
Television is one of PETCO’s primary mediums. The visuals used in their commercials feature pet owners spoiling their pets and then
concluding with the tagline “PETCO . Where the pets go.” In one ad, two pet owners are bathing their dog as they bathe themselves in a
bubble bath. An announcer’s voice proclaims. “People shop for people at supermarkets. Pets shop for pets at PETCO.” Through televi-
sion ads, an image of loving pet owners caring for their pets is conveyed.
Walmart
Leading the market with top sales in pet supplies is Walmart noted for providing brand names at low prices (Mintel, 2009).
Walmart ads focus primarily on low prices using “pet food at affordable prices” as its category title and slogan. Their website fea-
tures top brand names for the market such as Iams and Purina One at lower prices. However, their Ol-Roy brand which is very
cost affordable leads the category with top sales.
PetSmart:
Publicis Group created PetSmart’s current tagline- “That’s smart. Pet smart”. Their ads feature a relatively similar message to
PETCO that pets deserve quality products. PetSmart’s mission is “we love to see healthy, happy pets” and highlight this state-
ment in their ads and frequently throughout their website. The image of PetSmart products and services show just that: healthy,
happy pets. PetSmart also uses television, internet, and social networking sites to build brand awareness.
25

26. PetSmart
PetSmart is one of PETCO’s biggest competitors because the two companies are so
similar. PetSmart utilizes couponing, discounts, and promo codes to drive consumers to pur-
chase their products. PetSmart also ran a sweepstakes called the “Science Diet PetFit Challenge”
where contestants could enter and have a chance to win $500,000 along with many chances to
win gift cards with up to a $100 value. They also ran a sweepstakes called “Super Summer Re-
wards Sweepstakes” where consumers could enter to win one of two cars or other prizes.
Costco
Costco is a major competitor to PETCO because they sell their products in bulk at a
great value. They also have a satisfaction guaranteed policy on their products as well. Costco
has a huge variety of products consumers can purchase. Costco offers customers a “one stop”
approach. Not only can consumers buy their pet food and supplies at Costco but they can also
purchase the groceries, medications and other home items they may need as well. This entices
consumers to purchase their supplies there because it is convenient and not nearly as time-con-
suming as making several stops at different locations to get the items they need. Costco offers a
lot of savings on their products through coupons. They also use a lot of promotional tactics such
as sweepstakes and contests. One sweepstakes Costco ran during the holiday season was called
“12 Days of Giveaways”. Contestants could win full-HD televisions, cross trainers, luggage sets
and much more. Daily instant prizes included items such as GPS systems and Bluetooth head-
sets. They could also be up for winning the grand prize of a $1500 Costco gift card.
Walmart
Walmart is another major competitor to PETCO because they sell products at very low
prices. They place a strong emphasis on selling their products at prices that are affordable to
the majority of people. Their pet supplies and pet food is sold at a lower price than other stores.
For those consumers who are finance-conscious or simply like to purchase their products for
low prices this entices those to become loyal to Walmart. Walmart also utilizes couponing and
promo codes as ways for their consumers to redeem and receive savings on all their Walmart
products. Walmart also ran a sweepstakes called “$25 Walmart Gift card Sweepstakes” where
consumers could enter online and fill out an entry form for a chance to win a $25 gift card to use
on Walmart products. Another sweepstakes Walmart ran was called the “Lucky Fan” sweep-
stakes. In this sweepstakes contestants could enter and be up for winning a $50 gift card to use
on their Walmart purchases.
26

27. Strengths
SWOT
PETCO is a specialty store that of- Weaknesses Opportunities
fers much more than your average More than half of Ameri-
supermarket or mass-retailer such PETCO is viewed as expensive can households own a pet. With
as Walmart. At PETCO not only is and during times of economic children being an indicator for
your pet welcome to shop with you depression consumers tend to pet ownership and the 15% pro- Threats
but multiple services are available turn to stores with lower price jected population growth of the Many consumers want
to you and your pet such as groom- points such as Walmart. 18 and under Hispanic popula- to be able to shop at a special-
ing, obedience classes, veterinary Lack of brand identity. tion in the next few years there ty store but either can’t afford
services and treat bars to make Consumers tend to know of is a strong opportunity for this it or need the convenient a
your pets shopping experience PETCO but don’t choose them market to be captured. supermarket or mass retailer
enjoyable. as their number one choice In addition, the Hispanic offers.
The average PETCO shop- for purchasing pet food and population as a whole is more American households
per is a fairly affluent one with a supplies. PETCO was founded willing to pay the higher price of with children in home are on
relatively high income and educa- in 1965 but still comes in 3rd premium, organic food products the decline.
tion level. PETCO shoppers tend after Walmart and PetSmart. and are also more likely to spoil
to spend more at the point of their pets with toys, treats and
purchase which shows a tendency luxury bedding items.
to utilize services and selection. Due to the 2007 recalls
people are turning more to
natural, organic and premium
options and a brand/service
they can trust. PETCO meets all
of these criteria where many of
their competitors do not.
Despite the economic
downturn, pet food and supply
sales continue to flourish. In
fact, according to Mintel, some
people may even be driven to
acquire a pet or become closer
with their existing pet to help
relieve stress.
27

28. CAMPAIGN OBJECTIVES
-Launch a comprehensive consumer and trade compaign to adress the challenges PETCO currently faces
-Target men and women ages 24-35 years old with an emphasis on first time pet owners
-Drove consumers to PETCO store for the purchase of pet food and supplies over mass retailers
-Position PETCO as a company completely unique to it’s category-expertise and trust of a lifetime
-Generate consumer interest and trust around PETCO
-Stay within a budget of $9.6 million
28

29. PRIMARY RESEARCH
To help develop the PETCO campaign and identify an overall objective and theme, we conducted primary research using an online
survey. The survey was distributed to adults between the ages of 25-34 and asked questions regarding shopping preferences and
media habits. We also asked questions about what they look for in a frequent shopper program to help enhance the existing PETCO
Pals program. 137 respondents participated in the online survey.
The survey revealed several insights about peoples purchase preferences regarding pet food and supplies. Costco was the leading an-
swer for the preferred/frequent place of purchase for both pet food and supplies. Walmart came in second followed by supermarkets
for pet food and PetSmart and PETCO for the purchase of pet supplies.
Respondents reported price and quality as being the two most important factor when shopping for pet food and supplies. This is
parallel to the data we found on Mintel which stated consumers are in a constant struggle nowadays to not sacrifice quality for price.
When asked what perks respondents would like to see in a frequent shopper program the most common answer was discounts for
frequent shoppers and coupons tailored to the products they purchase. Overall, customers want to be rewarded for their loyalty
which is important in today’s highly competitive market.
Other significant findings included:
-Internet reported as the most frequently used media followed by television and radio.
-Respondents reported being more likely to trust information about a product provided by an actual user rather than
information distributed directly from a company.
-Less than half of respondents reported interest in a free-online nutritional consult.
-Respondents reported they would feel swayed to shop at a store they knew was participating in charitable causes for
homeless pets over a retail channel that was not.
“ I want coupons and discounts tailored towards my pur-
chase preferences.” -Survey respondent
29

30. Target Audience
Recommended target:
Through a national campaign, PETCO will target consumers as well
as more niche groups such as breeders and veterinarians through
various media channels and promotional activities. Through exten-
sive primary and secondary research, we have developed a specific
recommended target audience for your consideration.
The recommended primary consumer is white, married adults be-
tween the ages of 25-34 with at least a four year college degree and an
income of $40,000 or above. This consumer is likely to be at the point
in their life where they are looking to start a family.
This demographic is unlike today’s PETCO shopper for several rea- The following table illustrates instance of pet ownership by
sons. Today’s PETCO shopper typically has a higher income, is older age group. As you can see, pet ownership is well performing
and shops at PETCO because they seek higher end items for their pet, well through mid-life and only decreases around the age of
not unlike their personal purchase preferences. Instead of focusing 60+. For the purpose of this campaign, however, we recom-
this campaign on attracting more of the same consumers, we recom- mend targeting the younger demographic to capture first time
mend a different approach. pet owners who may be more willing to shop at a store offer-
ing expertise and who also have a higher potential to become
The younger demographic we suggest is promising for several reasons. loyal PETCO shoppers.
First, this audience is likely to capture many first time pet owners. First
time pet owners tend to spend more money on food and supplies to Age Horiz% Vert% Index
ensure they are taking good care of their new companion and are more 22-24 2.19 41.2 77
likely to splurge on luxury items such as toys and vanity goods such as 25-29 8.49 61.5 115
rhinestone accessories. Next, while this demographic does not have a
large income at this point in their lives, since most of our target audi- 30-34 10.9 55 103
ence has a college education, that their income will increase over time 35-39 9.68 61.2 114
making them a valuable asset to the PETCO consumer base. In addi-
40-44 10.3 59.2 110
tion, capturing this demographic before they have developed loyalty to
another pet food and supply outlet will help to generate lifetime users.
30

31. Pet ownership between females and males is relatively equal. Thus, it is
important to target both males and females. It is worth noting, however,
that females do have slightly stronger numbers and tend to do more of the
household shopping than men so a slight skew towards females might be
desirable.
Gender Total <000> Horz % Vert % Index
<000>
Male 47,509 24,124 39.3 50.8 95
Female 66,898 37,237 60.7 55.7 104
Whites have the highest instance of pet ownership. That is not to say that
other races do not own pets. In fact, with the projected population growth of
Hispanic children under the age of 18 at 15% between now and 2014, they are
an important group to keep in mind throughout the campaign.
Race Total <000> <000> Horiz % Vert % Index
White 61,360 52,618 85.8 59 110
Black or 61,360 3,965 6.46 29.2 54
African
American
Asian 61,360 1,111 1.81 27.8 52
Some Other 61,360 3,666 5.97 50.7 95
Not White or 61,360 4,776 7.78 42.6 79
Black
31

32. While people across all income levels own pets, we do not begin to see
consistently well performing numbers until 40k and above. We recom-
mend targeting this demographic as they might have more disposable
income than lower income groups and be willing to spend their money
providing for and even pampering their pet.
Education Total <000> <000> Vert % Horiz % Index
Graduate Degree 10,876 3,108 15.7 28.6 161
Graduated College or 30,032 7,953 40.1 26.5 149
more
4 Year Degree 15,728 3,992 20.1 25.4 143
Attended Grad. School 3,428 853 4.3 24.9 140
No Degree
2 Year Degree 13,419 2,440 12.3 18.2 103
Attended College 1-3 32,920 5,401 27.2 16.4 93
Years
Attended College Less 25,941 4,266 21.5 16.4 93
than 1 Year
32

33. HH Income Total <000> Horiz % Vert % Index
<000>
20,000-24,999 6,282 3,222 5.25 51.3 96
25,000-29,999 6,561 2,899 4.72 44.2 82
30,000-34,999 5,647 2,357 3.84 41.7 78 Married people are more likely to own a
pet than any other marital status reported.
35,000-39,999 5,950 2,793 4.55 46.9 88
Not only are married people more likely
40,000-44,999 5,509 3,053 4.98 55.4 103 to live in a place where they can own pets,
they are likely looking to start a family
45,000-49,999 4,723 2,484 4.05 52.6 98
and a pet can be perfect practice for tak-
50,000-59,999 9,229 4,912 8.01 53.2 99 ing care of a family. Since children are
a driver for owning a pet, if the couple
60,000-74,999 11,166 6,533 10.6 58.5 109
already has children it makes them even
75,000-99,999 13,832 8,351 13.6 60.4 113 more appealing.
150,000-249,999 7,751 5,081 8.28 65.6 122
250,000-499,999 2,551 1,625 2.65 63.7 119
Marital Total <000> <000> Horiz% Vert% Index
Status
Education is an influential factor in pet ownership.
As you can see in the chart below, the more educated Presently 55,378 34,051 55.5 61.5 115
a person is, the more likely it is that they will have a Married
pet. We recommend targeting those with a 4 year de-
gree. Although having a graduate degree has a higher Widowed 11,676 4,374 7.13 37.5 70
index number, it represents a much smaller segment
of the population as a whole. In addition, there is high
Divorced 17,300 8,827 14.4 50.9 95
correlation between education and income. Since
PETCO has a slightly higher price point, it is impor- Separated 3,388 1,676 2.73 49.5 92
tant to market to those with a higher level of dispos-
able income.
Never 26,635 12,432 20.3 46.7 87
Married
Not Married 59,029 27,309 44.5 46.3 86
33

34. SUMMARY: The demographic we have outlined above has the greatest growth po-
tential for PETCO. These consumers have not developed loyalty towards a specific retail outlet,
are likely seeking quality goods for their first time pets and as a result are a very promising group
for PETCO to market towards.
Through secondary research, we derived 8 Pet Loving Cities which Within these regions, we have identified 8 cities within
we have identified as key market areas for the PETCO campaign. 5 states to serve as key markets during the PETCO cam-
These cities were chosen based on Simmons Choices 3 data indicat- paign for use as test markets and focal points for out-
ing high instance of pet ownership by region, as well as consider- door advertisements and promotional events.
ation for high population and being considered pet friendly by it’s
residents. As illustrated by the chart below, the regions with the These include:
highest instance of pet ownership are the mid-west, the south and
the west. · Portland, OR
· Los Angeles and Long Beach, CA
Geographies Total <000> <000> Horiz % Vert % Index
· Chicago, IL
North-East 11,914 1,766 14.8 8.48 81
· Austin and Houston, TX
Mid-West 11,914 2,832 23.8 10.9 105
· Jacksonville and Orlando, FL
South 11,914 4,633 38.9 10.8 103 · Los Angeles, CA 46.5%
West 11,914 2,683 22.5 10.9 105 · Long Beach, CA 35.8%
· Austin, TX 30.5%
· Houston, TX 37.4%
34

35. It is important at this time to mention the presence of
Hispanic population in these key market areas. Accord-
ing to the 2010 census, there is substantial presence of the
Hispanic population in 4 of our key market areas (2010
Census).
The Hispanic market is important to consider in key
market cities as the projected growth within the Hispanic
market for children under the age of 18 is 15% of the popu-
lation between now and 2010 (Mintel, 2009). In these
areas we will be conscious of spillover to the Hispanic
population when choosing recommended media and pro-
motional activities.
35

36. Selected Emphasis Regions
36

37. Media Plan
Media Objectives
• Stay within a budget of $4 million.
• Leverage media and sales promotion to reach adults 25-34.
• Reach niche markets including trade, pet friendly cities and areas
with high Hispanic population.
•Reach recommended consumer target audience using cable TV, radio,
internet and outdoor.
•Use trade magazines to reach breeders and veterinarians to establish
PETCO as a quality retailer to recommend to first time pet owners.
•Build brand identity and differentiate from mass retailers such as
Walmart using quality and expertise.
Media Rationale
We recommend selecting media based on cost efficiency and having high appeal to our target au-
dience. In addition, it is important to be conscious of spillover to the Hispanic population as they will be
an important up-and-coming consumer base.
37

38. 38

39. 39

40. 40

41. 41

42. 42

43. 43

44. 44

45. 45

46. 46

47. 47

48. 48

49. 49

50. 50

51. 51

52. Radio
Our research shows that radio ranks very high among our target audi- Chicago, another chosen target market for media emphasis,
ence. With an index number of 116 in Quintile I, Radio is ideal to reach we have chosen WVAZ-FM which serves a primary target
our target audience effectively. Based on our recommended target audience of women 25-54 with a format of Urban Adult Con-
cities, we have choosen the top radio stations in those areas to increase temporary.
media coverage.
In Austin, we have selected KASE-FM which hosts a Country
Radio Total <000> Vert Horiz Index format and primarily targets persons 25-54.
<000> % % In Portland, we have selected KXJJ-FM which also hosts a
Country format and primarily targets person 18-54. Another
Quintile 20,411 2,276 21.2 11.2 116
I station we have selected KINK-FM which provides an Album
Adult Alternative format with a primary target audience of
Quintile 21,360 2,638 24.6 12.3 129 person 25-54. KRSK-FM is the final station we have selected
II
in Portland. KRSK hosts a Hot Adult Contemporary format
Quintile 20,045 2,198 20.5 11 114 with a primary target audience of persons 25-34.
III
In the Houston-Galveston area, we have chosen KODA-FM,
Quintile 19,932 2,312 21.6 11.6 121
IV which similar to the other stations host an Adult Contempo-
rary format with a primary target audience of persons 25-54.
Quintile 26,290 1,755 16.4 6.68 70
V
Finally, in Jacksonville, we have chosen WQIK-FM which
hosts a Country format with a primary audience of persons
Los Angles, which is one of our chosen target areas for added me- 25-54.
diaemphasis, we have chosen KIIS-FM and KKGO-FM. KIIS-FM’s
provides a format of contemporary hits and serves a primary target Each recommended radio station is chosen to effectively
market is women 18-49 with a secondary target of persons 18-49. reach our target audience. In consideration of the stations
KIIS’s target audience is ideal to the target audience we recommend. target audience and the format, Country, Contemporary
KKGO-FM is out other selected station in Los Angeles which pro- Hits, and Adult Contemporary are the best formats for our
vides a country format. KKGO serves a primary audience of persons audience.
18-49 and a secondary target of persons 25-54. Both stations offer us
the ideal target audience and format to effectively reach our market.
(SRDS)
52

53. Television TV Total <000> Vert Horiz Index
<000> % %
Research has shows that our target audience of adults ages 25
to 34 are heavy viewers of prime time television. Realistically,
Quintile 21,003 2,465 23 11.1 116
I
prime time network buys are not conducive to our campaign
due to exceptionally high spot costs. But Cable TV is very ideal. Quintile 22,118 3,874 19.5 17.5 99
Through a cost efficiency approach, we recommend the follow- II
ing for television. We recommend running our spots on E!’s Quintile 20,675 3,388 17.1 16.4 92
Khloe and Lamar, TLC’s Extreme Couponing and Cake Boss, III
CMT’s Singing Bee, Comedy Central’s Tosh.O, Discovery’s
Deadliest Catch, and A&E’s Criminal Minds. By running our
Quintile 21,082 3,713 18.7 17.6 99
IV
original commercial on these cable channels during the prime
time hours, PETCO will obtain the highest exposure to our Quintile 27,039 5,235 26.4 19.4 109
target audience. V
Out of Home Outdoor Total <000> Vert Horiz % Index
To supplement our television and radio spots, we
<000> %
recommend out of home in the format of billboards Quintile 21,405 2,331 21.7 10.9 114
to be placed in our target DMAs. Our target audi- I
ence responds highly to outdoor advertisements
with an index of 169 in quintile I which makes this
Quintile 22,016 2,176 20.3 9.8 103
II
recommendation ideal for this campaign. Through
Clear Channel Communications, we have identified Quintile 22,237 2,308 21.5 10.4 108
specific billboards that we will utilize in our multi- III
faceted campaign. Quintile 22,883 1,919 17.9 8.38 88
IV
Quintile 23,378 1,988 18.5 8.5 89
V
53

54. Trade Magazine
Finally, trade publications such as AKC Gazette, Veteri-
nary Medicine, and PetAge are recommended to reach an
important niche audience. By placing advertisements in
these trade publications, professionals such as breeders
and veterinarians will be exposed to the PETCO brand and
promote the expertise that PETCO has to offer it’s custom-
ers.
Internet
Internet use is also exceedingly high with our target audience. Creating Veterinary Medicine reaches over 50,000 companion-
a website that compliments the “first time” concepts will help increase animal veterinarians in their circulations and provides a
the gross rating points we are looking for in this campaign. The target print and digital version of their publication. Placing ads
audience of adults ages 25-34 are 69% more likely to use the internet in this trade publication will allow us to reach the ultimate
than the average consumer. Tailoring the site to the first time pet own- influencers in pet care and ensure that the PETCO will
ers we are focusing on will yield spillover to the general consumer base be promoted with the knowledge and backing of animal
and increase overall exposure to PETCO. professionals.
Publishing ads in PetAge will enable us to reach other
Internet Total <000> Vert Horiz Index retailers and manufacturers of pet food and supplies. Pet-
<000> % % Age reaches over 25,000 pet food and supply manufactur-
ers and small retailers in circulation. These publications
Quintile I 14,713 2,378 22.2 16.2 169 suggest industry trends, product innovations, and animal
care. Utilizing PetAge’s consumer base for further influ-
Quintile II 14,042 1,746 16.3 12.4 130 ence into our audience will pose PETCO at a great advan-
tage.
Quintile III 14,029 1,528 14.3 10.9 114
AKC Gazette reaches over 35,000 readers in circulation
including breeders, pet enthusiasts and many other deci-
Quintile IV 14,291 2,156 20.1 15.1 158 sion leaders. AKC Gazette focuses on news on purebred
dog breeding and showing, health and grooming, and even
Quintile V 14,488 1,157 10.8 7.98 83 legal issues concerning dogs and the field of breeding.
Ideally, reaching these consumers will help instill PETCO’s
expertise in the minds of breeders and influencers.
54

55. Mobile Application
Mintel and Simmons Choices 3 both show heavy smart phone usage with the recommended target
demographic of adults 25-34. In addition, the Hispanic population also exhibits very high usage of smart
phones making the channel very conducive for use in the PETCO “first time moments campaign.” In order
to keep PETCO in the minds of our target market we propose an application that will accomplish this. We
will introduce this app at the beginning of our campaign as another way to remember that PETCO is there for
first time moments and every step of the way. By having an app on a smart phone our consumers will have a
constant reminder that PETCO is the pet supply merchandiser that truly wants to be involved in lives of our
consumers by encouraging them to capture all the precious moments that occur when someone starts to care
for their first pet. The app will allow anyone with a smart phone to take pictures of their puppies and upload
them to site that shares the pictures publicly. This way family and friends or fellow pet owners can compare
and gawk over precious puppy photos in a scrapbook format. In order to encourage consumers to use this app,
we will award the submission with the best picture at the end of every week with a dollar amount. Site viewers
will have the ability to “love” their favorite photos. The photo with the most “loves” will be awarded.
Media considered but not recommended…
Network Television: Network TV is a hugely effective way to reach any audience. Research shows
that our audience is 16% more likely to watch prime time network television than others. However,
taking cost efficiency into consideration, cable television was a better choice to stay within our
budget.
Consumer Magazine: Reaching our audience through visual communication is ideal for effective
influence. Yet, consumer magazines are not represented well within our target audience. With
35% of our audience represented in Quintile III, consumer magazines are not ideal for use in this
campaign.
55

56. Creative Objectives
-Position PETCO as the one-stop-shop that is there for pet
owners from the time they acquire theri first pet throughout
the pets life.
-Use knowledge and emotion to appeal to the target audience
-Build brand awareness
-Reach consumers and trade audiences with a single compre-
hensive message
-Stay within a budget of $1.4 million for creative production
costs.
CREATIVE CONCEPT
The foundation of the “first times” creative concept stems from the idea that first time pet ownership
is a precious experience that calls for special care. This time can also be confusing and leave first-
time-owners with a lot of questions. We recommend positioning PETCO as the place that can help
take the guess work out of the process with their expert employees, products and services that cater
to the difficulties first time pet owners face. The inspiration behind the creative concept came from
the feeling of excitement first-time parents experience. We projected these emotions onto first-time
pet owners to develop a creative campaign with “legs” to be used across several mediums.
56

57. Trade Magazine
57

58. Trade Magazine
58

59. Television
Visual: Audio:
A puppy runs into the water off a wooden dock in slow motion. A woman narrator with a gentle voice speaks: first times can be
messy like,
The puppy lands in the water with a giant splash. Then the camera (MUSIC UP AND UNDER, Splish-Splash/Bobby Darin): The first
freezes the frame. swim…
The puppy comes out of the water and shakes off his wet coat. Pro- The first roll in the mud…
ceeding to plop into a giant mud puddle near the lake shore. Then the
camera freezes the frame.
The puppy continues to shake and the owners ( a young man and The first trick...
women wave for him to stop). The puppy sits, tilts his head, then the
frame freezes.
The commercial cuts to a backyard with the puppy a tin bath tub To the first bath.
squirming about. The frame freezes.
Then commercial cuts to the dog pulling the owner through the sham- So... get help from PETCO. PETCO knows which shampoo will
poo isle. The puppy spot the grooming window and the frame freezes. help to keep knots away and coats shiny... and PETCO offers in
store grooming. Let PETCO take the stress out of your first times.
For first times, and every step of the way.
59

60. TheTV Storyboard
60

61. Radio Spot
The Narrator is a woman pet owner with a gentle and honest voice:
Narrator: “The moment we saw the puppies at Petco, we knew which one we wanted to adopt. He was small and clumsy.”
Puppy (A small childlike boy voice/ high pitched: “I tried to stand out amongst all the puppies! I barked loud and fell into my water
bowl...
But I did it right!”
Narrator: “We were newlyweds and our puppy practice for our child on the way, so we wanted the best of everything. PETCO gave us
expert tips on products and services to care for our new family member.”
Puppy: Now I’m the luckiest puppy in the world because my parents shop at PETCO.
Narrator: From my first pet, to the first shopping spree ...with many more first moments come, I trust PETCO to be there ever step of
the way.
61

62. The Mobile Application
62

63. Internet
63

64. Billboard
64

65. Promotions Rationale:
One of the main objectives of the first time moments campaign is to drive consumers to PETCO
over mass retailers. In order to differentiate PETCO stores from the mass merchandisers we sug-
gest running promotions that shows consumers that PETCO understands the importance of pet
care and perceiving pets as part of the family. Specifically, our promotions will encourage first
time pet owners to shop at PETCO to take the frustration away of owning a new pet. PETCO will
take away the guesswork of owning a new pet whether it may be figuring out the appropriate food,
perfect pet toy, and other products that will fit their new pet adequately. Each promotion has
creative intuitions that correlates with the campaign message, and are dispersed throughout the
year-long campaign.
Promotional Events:
Sales promotions at different events for PETCO’s new campaign will make consumers aware of their
specialty products and get PETCO involved with the consumers on a more personal basis. Since the
focus of the campaign is generated towards “first time moments”, different events throughout the
designated target markets will give PETCO the opportunity to communicate with the consumers about
different products and services for those moments. Specifically, small gift bags that include certain
products that will help the consumers ease in to their new lives of owning a new pet. An obedience
trainer will be on site at each event, so new time pet owners can learn more about properly training
their new puppy. Also, for the pet friendly events PETCO booths will have a photo booth that consum-
ers and their pets can take pictures for “first time memories.” These particular events chosen have high
attendance rate in the cities and most of them are pet friendly, therefore their pet pal can join them
throughout the whole event.
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66. Gift Bags:
These gift bags that will be handed out at each event (minus the North-
west Pet & Companion Fair in Portland) so consumers can take them Insert
home and become more aware of PETCO’s special products. Each gift photo
bag includes a pamphlet, dog treats, magnet, and a $5.00 off coupon here
when spending $10.00 or more at a PETCO store. The most important
aspect of the gift bag is the pamphlet, which offers a variety of informa-
tion regarding owning a new pet. Some information in the pamphlet
includes everything a consumer needs to know when owning a new pet
from when they first get their new pet up to when they turn one-years-
old. For example, the pamphlet will remind the consumer when their
new pet should get the appropriate shots at the certain age, appropri-
ate treats and toys, types of dog food and tell them when they should
switch to something new, and examples of different types of collars that
would fit their specific breed. These gift bags will give consumers a
remembrance of PETCO, and entice them to stop by the store to let the
PETCO expertise help them through the process of owning a new pet.
Photo booth:
The photo booths will be offered at every pet event that is pet friendly, so consumer s can make memories with their
pets. Also, inside the gift bags are magnets that can appropriately fit the pictures that are taken from the photo booth.
The magnets offer a new gift for the consumers and have last longing memories of their pet. On the magnet will be the
PETCO logo, so consumers can also stop by the nearest PETCO store to learn more about taking care of a first time pet.
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67. Northwest Pet and Companion Fair:
This event is in Portland, Oregon and has about a 7,000 attendance rate. It will take place on April 9th and
10th of 2012. PETCO will not offer the gift bags, because this event makes up their own bags of different com-
mercial sponsors. PETCO will put the pamphlet in this bag, which is the most important for the consumer to
be exposed to. At the PETCO booth it will have extra pamphlets, a bucket full of treats for the dogs, magnets,
and coupons that consumers can take as they choose. A photo booth will be offered, because this event is pet
friendly. This year the fair is offering a best dressed contest, so the photo booth will be very popular amongst
the consumers to take pictures of their pets in cute costumes.
America’s Family Pet Expo:
This event is in Los Angeles, California and has about a 35,000 attendance rate. It will take place on April 15th
-17th of 2012. This is by far the biggest event chosen and offers many opportunities to expose consumers to
PETCO. This expo has many different informational events throughout the three days to keep consumers in-
terested to stay for a long period of time. The booth will offer the gift bags, but unfortunately will not offer the
photo booth since this expo is not pet friendly.
Amazing Pet Expos:
This event is offered in Houston, Texas, Austin, Texas, and South Florida, Florida. It will take place in
Houston on April 16th, 2012, in Austin on October 8th, 2011, and in South Florida on March 31, 2012.
These pet expos have about a 13,000 attendance rate. Similar to the America’s Family Pet Expo in Los
Angeles, these pet expos offer many different informational events throughout the day. These expos are
pet friendly and have a best costume contest, so therefore the photo booth will be very enticing to the
consumers to use.
Chicagoland Family Pet Expo:
This expo is in Chicago, Illinois and has about a 15,000 attendance rate. It will take place on March 18-
20th in 2012. This is known as the biggest pet expo in the Midwest. The Chicagoland Family Pet Expo
is unfortunately not pet friendly, so a photo booth will not be provided. The gift bags will be offered
throughout the day until they run out.
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68. Chicago Pet Show:
This expo is in Chicago, Illinois and has about a
2,000 attendance rate. It will take place on October
30th and 31st of 2011. Since this pet show is smaller,
it benefits PETCO that they will be more noticed by
the attendees throughout the day. This expo focus-
es a lot on pet adoptions, therefore this works for
the new PETCO campaign for the first time owning
a pet. The gift bags will be provided, so new pet
owners can learn about adoptions at other booths
than see the vital information needed for owning
a new pet. This pet show is not pet friendly, so the
photo booth will not be offered.
Haute Dog “Howl’oween” Parade:
This parade will take place in Long Beach, Califor-
nia and has an estimated attendance rate of 5,000
people. It will take place on October 30, 2011.
Haute Dog is an organization that includes dog lov-
ers, supporters, rescuers, etc. that support dogs and
to make it a dog friendly community everywhere.
This parade is the world’s largest Halloween event
for dogs. It is a twelve block parade on 2nd street in
downtown Long Beach, so PETCO will specifically
place their booth towards the end of the parade.
This is a fun and entertaining event for pet own-
ers, and particularly new pet owners that wanted
to dress up their pet for the first time. The booth
will offer the gift bags and the photo booth, which
should be very popular throughout the day.
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69. Paw Print Promo:
One of the main objectives of the first times campaign is to
drive consumers to PETCO over mass retailers . In order
to differentiate our store from the mass merchandisers we
suggest running a promotion that shows consumers that
PETCO understands the importance of pet care and our
pets. We will accomplish this through our campaign and
promotions. More specifically one promotion that will get this
aspect across is our Paw Print Promo.
The Paw Print Promo will run in the beginning of our
campaign. Pet owners will be invited to PETCO for a one
day event. On this day customers will dip their pet’s paws
in paint and stamp it onto archival paper, then sign and date
it. The paw print will then be hung in the store front so that
every-time customers comes back to PETCO they will see
their spot in the store and be reminded of how small there pet
once was. This paw print will be a symbol of our partnership
and involvement in your puppies growth. Then in december
the prints will be sent out and transformed into a christmas
ornament. Not only will december be a half way mark in
our campaign ,but this is a way to get PETCO back into the
homes of consumers when spending trends are up and family
is important. By encouraging consumers to track first time
moments, scrap book, and measure paws we hope that this
will remind consumers of PETCOS dedication to a lifetime
partnership.
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70. Google AdWords:
The rationale for using Google AdWords is that
Google, the search engine mogul, is the most used
search engine taking up 49.2% of the market share
for search engines (Sullivan, 2006). Google also has
keywords to help optimize the consumer’s results as
specific as possible giving PETCO the most accurate
search results. Our target market is very tech-savvy;
therefore we found it vital to have Internet-based
advertisements. We will allocate $3,000 a day on a
cost-per-click basis until the very end of our cam-
paign, which will cost about $1,077,000.
Facebook Advertising:
Another logical approach to using Internet based ad-
vertising is to turn to Facebook, the social network-
ing expert. Facebook has more the 500 million ac-
tive users and 50% of active users log on to Facebook
in any given day (Pressroom, 2011). In 2009, 24% of
our target market had an account and was an active
user of Facebook (Smith, 2009). Our approach to
using Facebook was to pinpoint our target market by
specifically targeting people who live in pet friendly
cities and have likes/interests related to pets. For our
Internet campaign we suggest spending $1,000 a day
until the end of our campaign. Facebook will only be
charging us for cost-per-click.
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71. PETCO PALS Program:
In order to reach our consumers both first time users of the PETCO PALS
program, as well as already users of the program the first 1,000 customers
at our top DMA stores will receive a coupon. The first 1,000 customers
that have not signed up for the PETCO PALS program will receive a $10.00
off coupon to use with their next purchase. The first 1,000 customers who
already are users of the program will receive a $20.00 off coupon of a pur-
chase of $100.00 or more. After the 1,000 new users and the 1,000 old us-
ers of the PETCO PALS program runs out at each one of our DMA stores,
than the promotion for the rewards card would be over. We hope more of
our consumers will take advantage of the PETCO PALS program and see
what kind of advantages it has for future uses. We will send out numer-
ous reminders regarding different events, new promotions, and coupons
to keep consumers enticed to use the rewards card and to keep shopping
at PETCO.
“Give Them a First Time”
PETCO and the Humane Society of the United States are teaming up to-
gether to help support underprivileged dogs and cats for another chance
of having a healthy and happy life. We have allocated $650,000 to 3,500
animal shelters throughout the United States that will donate $1.00 for
each animal adopted from one of the animal shelters. It is estimated
about 185 pets could potentially be adopted at each animal shelter that
we could donate $1.00 to the Humane Society of the United States. Our
target audience is interested in companies that support a social respon-
sibility program; therefore the “Give Them a First Time” program could
entice our consumers to adopt from an animal shelter. PETCO fully sup-
ports adoption agencies, so being able to give underprivileged animals the
opportunity to share their “first time moments” with their new owners
would give PETCO a positive reputation for helping these animals. This
would start at the beginning of the campaign, and run until the $650,000
has been fully donated to the Humane Society of the United States.
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72. 1.5%
13.5%
40%
45%
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