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Cloud Star Final Report

Cloud Star Final Report

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Cloud Star Final Report

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  1. Cloud Star Final Report Brand Positioning

  2. Presentation Overview Brand Summary Market Size and Trends Competitive Review Cloud Star Marketing Strategy Market Research Analysis Media Plan

  3. Executive Summary Brand Summary: • Cloud Star is a brand sensitive to dog's allergy needs in treats and food. • Performs very well with certain demographics; Cloud Star could either focus marketing on these groups or on ones they reach less. • Premium, all-natural dog treats, especially for pets with allergies. Market Size & Trends: • The market is increasing in price and in dollar, however, volume sales is decreasing. This suggests that people aren't buying as the price of treats increases. • Pricing trends in the category increased by 4% in 2011 and are estimated to increase by 3% in 2012. Competitive Review: • Direct competitors also focus on all-natural, allergen-sensitive dog food and treats (premium dog food makes up 40% of sales in dog food). • Competitors (Direct): • The Honest Kitchen • Zukes • Stella & Chewy's • Nutro • Sojo's • Blue Buffalo • Competitors (Indirect): • Greenies, Caesar, Pedigree • Purina • Hill's brand • Iams

  4. Executive Summary Continued Cloud Star Marketing Strategy: • Cloud Star can focus their marketing on ideas such as Made in the USA, all-natural ingredients, and food that is friendly to pets with allergies, since these are their strengths as a company. • Unique Selling Proposition including; • Made in the USA • All-Natural Ingredients • No Artificial Colors, Flavors, or Preservatives • Primary Business/Marketing Challenge: increase brand awareness. Market Research Analysis: • Customers want a dog treat that is: Healthy, Nutritious, All Natural Product, Good for Teeth, U.S. Made, and Premium Quality. The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children. • Social Media is a new and upcoming market that needs to be acted on. • Online Ad's reach a small portion of respondents but is an easy market to get in to. Media Plan: • Awareness is key to Cloud Star's success. Making customers aware of Cloud Star's health benefits for pets, as well as their generosity towards charity can strengthen brand awareness. • Executed through several avenues, including: in-store sampling events, merchandise displays, advertisements in magazines, social media activity, and Google Adwords.

  5. Brand Summary

  6. Business Description Business/category competing in: • Dog treats (and extend to other pet food/care products). Mission and business philosophy: • To produce all-natural and wholesome products for dogs that are allergy-free, US made, and made from high quality ingredients • "For more than a decade, Cloud Star has been producing all natural and wholesome products for dogs, even those with allergies." -Cloud Star http://www.cloudstar.com/content/about-us.asp

  7. Business Description The product is: • Buddy Biscuits Why Buddy Biscuits? • Safe option for dogs with allergies • All-natural option for consumers looking for healthy choice for dogs • US made for those supporting production within the country • Company uses sales profits to give back to community.

  8. Business Description Current product positioning: • Premium, all-natural dog treats, especially for pets with allergies. Product's competitive advantage: • All-natural • US made • Allergy free • Family owned • Charitable

  9. Market Size and Trends

  10. Market Size and Trends Top competitors in “the healthy segment”: • The Honest Kitchen • Zuke's • Stella and Chewy's • Nutro • Sojo's • Blue Buffalo Size of Dog Treat Market (Sales) • $2,378 million (2012, Euromonitor)

  11. Market Size and Trends Trends in the market: • Growing in Dollar at 0.6% (2011-2012) • Declining in Volume at (0.8%) (2011-2012) (Euromonitor) Note: Actual sales are increasing while volume declines, suggesting that dog treats are becoming more expensive, but less are being sold as price increases.

  12. Market Size and Trends Target consumer by demographics and product usage: • Female (72%) • Between 45-54 years old (24.9%) • White (86.6%) • Works in Professional Industry (16.9%) • Household Income between $75,000-$149,999 (34%) • Lives in Southern Region of the US (39.2%) • Currently Married (60.9%) • Census Region: South (107/100 Index) http://urereporter.mriplusonline.com/selectdemo.asp

  13. Pricing Trends • Increased by 4% in 2011 • Estimated 3% increase in 2012 • Driven by strong growth of premium segment http://www.portal.euromonitor.com.ezproxy.lib.calpoly.edu/Portal/Pages/Analysis/AnalysisPage.aspx

  14. Cloud Star SWOT Analysis Strengths • Reaches consumers with special health needs for their pets (i.e. dogs with allergies to regular dog food). • Cloud Star integrates charity with its sales, so customers are actively aware of the brand's generosity towards animal welfare. Weaknesses • Low activity and presence on social networks. • Small share of overall dog treat market. • While a higher recognition for dog treat "Buddy Biscuits," there is lower recognition for brand name "Cloud Star."

  15. Cloud Star SWOT Analysis Opportunities • Grow presence with customers on social networks. • Target consumers through marketing who are current buyers, as well as target consumers who are not necessarily buyers yet. • Showcase their all-natural, organic products compared to their competitors (and the allergen-sensitive benefits). • Capitalize on current recalls of competitor's dog treats by picking up the consumers who switch from recalled brands (also US made). Threats • Dog treats market expanding, prices are becoming competitive. • Competitors have a more active presence and interactions online with consumers (i.e. Nutro).

  16. Competitive Review

  17. Direct Competitors & Positioning Competitors: • The Honest Kitchen • Zuke's • Stella and Chewy's • Nutro • Sojo • Blue Buffalo Positioning (for all competitors): • Marketing healthy, natural, premium, gourmet, and speciality products with a focus on sustainable and eco-friendly methods that appeals to a specialty market. • Premium Food accounts for 40% of Dog Food Sales (2010)

  18. Indirect Competitors & Positioning Competitors: Greenies, Caesar, Pedigree • Mars, Inc. Purina • Nestle Hill's brands • Colgate Palmolive Iams • Proctor and Gamble Positioning (for all competitors): • Top four companies account for 82% of sales • Marketing focuses on the emotional aspect of having a pet and the model is focused at the mass market

  19. The Honest Kitchen Marketing Dehydrated Pet Food • Start with fresh raw whole foods and then dehydrate Health Benefits • Food is medicine • Helps with overall health, digestion, skin and coat, prevents ear infections, body weight and energy • Natural vitamins, minerals and valuable phytonutrients are maintained Ingredients and Quality • 100% Human grade • Made in Human Food Facility, same food standards as human food • No Genetically modified foods

  20. The Honest Kitchen Marketing Eco-friendly: "Reducing Paw Print“ • Conventional ingredients to certified organic • 100% free range, antibiotic free, sustainable chicken • Use all wild caught fish • No genetically modified seeds or grains • All manufacturing in North America • Light weight shipping, reduces emissions • Dehydration uses less energy than other processes like canning

  21. The Honest Kitchen Vendor Pledge

  22. Zuke’s Marketing • Markets it's brand using a platform that consists of 6 specific beliefs: • Healthier Pets make Happier Pets • Nutrition fuels a healthy pet life • Staying Active • Adventure Together with your Dog • Showing Devotion • Be a devoted companion to your dog • Healing Others • Support Dog and Cancer Fund • Living Green • Pays employees to ride bikes or scooters to work • Power offices using 100% Green electricity • Boxes are 60% recycled • Getting Involved • Fundraising for pet shelters and animal rescue • Supports Meet the Breeds, a dog and cat show in New York

  23. Stella and Chewy’s Marketing Principles: • “Pets deserve pure, simple, minimally processed food – the way nature intended”: • Only the Good Stuff • Stella & Chewy’s product is made with raw, naturally raised meat, poultry or fish, sourced from USDA-inspected facilities, without hormones or antibiotics • Nutrition as Nature Intended • Products are natural and raw • Stickler’s for Safety • Products have a seal that states that it went through the Secure-By-Nature food safety process • A raw diet is better for pets • Improves: • appetite and digestion • healthy skin and coat • Stamina • helps support a healthy immune system

  24. Nutro Marketing • Proven. Natural. Nutrition. • Dog Food that is tailored to a dog's life stage, breed size, and health condition • Premium natural ingredients with fortified vitamins and minerals • Claim that their product is taste preferred by 7-10 dogs • A small firm stool is guaranteed

  25. Nutro Marketing • Pet Food Safety and Quality • Own facilities • Make over 600 quality checks daily • Inspected by FDA • Good Manufacturing Practices, Good Hygiene Practices and Hazard Analysis and Critical Control Points • Test every grain shipment for myotoxins • At least one complete shutdown for in-depth cleaning and sanitation per week

  26. Sojo’s Marketing • Options: • grain free • gluten free • raw freeze-dried meat • just add water • add water and meat • Human grade ingredients, USDA meat, no genetically modified foods • Nutrient profiles for products • Frequently asked question section on website

  27. Marketing of Blue Buffalo Why BLUE? • Because only BLUE is made with the unique combination of high-quality, natural ingredients plus exclusive LifeSource Bits. Nutrition Philosophy • “Love them like family. Feed them like family.” • What’s In Our Food and Why • What’s Not In BLUE and Why LifeSource Bits LifeSource Bits are the small, dark kibbles mixed in with our BLUE dog and cat dry foods. They contain a precise blend of vitamins, minerals, and antioxidants selected by holistic veterinarians and animal nutritionists. To ensure that dogs and cats get the full benefit of these vital nutrients, LifeSource Bits are “cold-formed” to help preserve their potency.

  28. Promotional Programs of "The Honest Kitchen" "Customer Rewards Program" • Earn free coupons and rewards by sending in UPCs of any full size box of dog food "Animal Rescue Organizations" • Approved organizations may qualify for a 30% discount • Breed Rescues, Sanctuaries, Shelters and Foster Families associated with registered rescue organizations

  29. Promotional Programs of "The Honest Kitchen" "Allies Program" • "Allies" receive an Honest Kitchen discount on purchases, a free Honest Kitchen T-shirt, literature and access to product samples as well as a chance to participate in new product taste-tests "Non-profit Donations" • Provides product samples, full-sized products and occasional monetary donations to a variety non-profit events nationwide • Charity Galas, Walks, Raffles, Auctions, Sponsorships, Goodie Bag items and other community outreach programs

  30. Promotional Programs of "The Honest Kitchen" "Honest Breeders Program" • Work with responsible breeders • They don't allow their products to be sold in stores that sell puppies or kittens • Work with responsible breeders who work hard to place their puppies and kittens in loving homes • Qualified and approved breeders are set up with a special discount code for online dog food purchases

  31. Promotional Programs of "The Honest Kitchen" "Service and Working Dogs" • Special Program for the following service dogs: • Search & Rescue, FEMA, Bomb Squad, Active Military, Police K9, Avalanche, Cadaver and Registered Service Dogs • Standard Working Dogs discount of 20% off MSRP • 30% off and occasional free products for active Working Dogs whose handlers allow the use of photos of their work and provide endorsements for promotional purposes

  32. Promotional Programs of "The Honest Kitchen" "Working with the Veterinarian Community" • Free Box of food, complimentary samples and literature and/or an Honest Kitchen hosted 'Lunch & Learn' Other • The Honest Kitchen (thk) Blog • Giving Back • "Charity of the Month“ • Media Center • View recent media clips about the company and their products

  33. Promotional Programs of "Zukes" Donates a portion of annual profits to Dog and Cat Cancer Fund Sponsor Events: • Zuke's Fuel the Love Tour • Dock Dog World Championship • Hero Dog Awards • Flyball NAFA CANAM Classic • Skyhoundz World Canine Disc Championship • Furry Scurry

  34. Promotional Programs of "Stella & Chewy's" "Charitable Work" • Friends of Barrington Dog Park • Animal Rescue, Inc. • Friends of First Run • The Mayor's Alliance for NYC’s Animals • Hope Veterinarian Clinic • Central Park Paws • Tri County Humane Society • Broadway Barks • Dog Habitat Inc. • Animal Haven

  35. Promotional Programs of "Stella & Chewy's" "In The Press" • Huffington Post: The Blog • The New Barker: Product Reviews • Forbes: Leadership • Pet Business • The New York Times: Well Pets • Dogster.com • Pawdogs • Pet Product News • And 16 others

  36. Promotional Programs of "Nutro" "My Nutro Rewards Program" • Sign-up, receive savings, pet-health tips and the latest news via email • Tailored pet information and articles • News about promotions and events • Insights into natural nutrition "Sustainability & Community Initiatives" • "Room to Run" Dog Park Appreciation Project • The National Disaster Search Dog Foundation • "Rescue Bank" Pet Food Donation • In-kind Donations

  37. Promotional Programs of "Nutro" "Commitment to Veterinary Community" • Continued research of pet nutrition to develop solutions and optimal nutrition that Veterinarians can recommend with confidence "Free Continuing Education Webinar" • "Veterinary and Pet Owner Attitudes and Awareness Toward Natural Nutrition" "Nutro Company Breeder Program" • Breeders receive special offers and information

  38. Promotional Programs of "Nutro" "Nutro Pet Food Trainer Kit" • Brochure about the Nutro Family of Products • $5-off coupons for each pet parent • $10-off coupon for any Nutro Dry Dog Food News & Press • A Variety of Press Releases

  39. Promotional Programs of "Sojo’s" "Breeders who use Sojo’s" • List of breeders who use Sojo’s products "Sojo’s in the Media" • Pet Business Magazine, Pet Product News, Pet Elite Magazine, Animal Wellness Magazine, etc. Press Releases & Product Photos

  40. Promotional Programs of Blue Buffalo Create your own BLUE Trading Card • “Card’s of the Month” • Compare your Brand to BLUE • BLUE TV • Mailing List Sign-Up

  41. Media used by “The Honest Kitchen https://www.facebook.com/TheHonestKitchen https://twitter.com/honestKitchen http://pinterest.com/honestkitchen/ http://www.youtube.com/HonestKitchen http://www.thehonestkitchen.com/thk-blog

  42. Media used by “Zuke’s” https://www.facebook.com/ZukesPets https://twitter.com/ZukesPets/ http://pinterest.com/ZukesPets/ http://www.zukes.com/join-us/rss http://www.youtube.com/user/ZukesPets

  43. Media used by “Blue Buffalo” https://www.facebook.com/BlueBuffaloAllNaturalPetFood https://twitter.com/bluebuffalo

  44. Media used by “Stella & Chewy’s” http://www.facebook.com/stellaandchewys https://twitter.com/stellachewys

  45. Media used by “Nutro” https://www.facebook.com/NutroProducts https://twitter.com/nutro http://www.youtube.com/user/thenutrocompany

  46. Media used by “Sojo’s” http://www.facebook.com/pages/Sojos/100210990057533 https://twitter.com/sojospetfood http://www.youtube.com/user/sojos https://plus.google.com/108636661741092643568#108636661741092643568/posts

  47. Cloud Star Marketing Strategy

  48. Marketing Strategy Unique Selling Proposition (USP) • Made in the USA • All Natural Ingredients • No Artificial Colors, Flavors, or Preservatives • Free of Corn, Yeast, Sugar, Salt & Soy • Wheat Free and Low Fat Options Available • At least 10% of net profits donated to non-profit organizations that benefit animals, women, children and the environment Primary Marketing/Business Challenge • Increase Brand/Product Awareness

  49. Pricing Strategy Original Natural Biscuits (16 oz.) $6.49 Soft & Chewy (6 oz.) $5.99

  50. Competition Pricing Strategy • Zuke's Grain Free Jerkey Bites Natural Dog Treats (6oz.) = $7.99 • Blue Buffalo Health Bar Dog biscuits w/ chicken liver (16oz.) = $9.71