Account Executive

Kristiana Wright Media Alli Price

Christy KoontzMadeline Gregory

Creative Blair

BreitensteinErika Rattray

Kelsey Pearman

Executive Summary

What is it?

Who is PETCO’s current customer?

Who is the proposed target audience?

How do we plan to reach them?

What’s the Big Idea?

The Market

Pet Food

$17.7 billion in sales (2010 projected) Pet Supplies

10.4 billion in sales (2010 projected)

2006 2007 2008

PetSmart 11% 11.2% 11.4%

PETCO 5.7% 5.8% 6%

Other 88.3% 83.0% 82.6%

Market Share

Competitive Position

Top competitors and distributors: Walmart, PetSmart, and PETCO

PETCO

High receipt total

Pets Welcome

Expertise

Specialty services

Walmart

Worlds largest retailer chain

4,000 facilities

Brand names at low prices

The Consumer

Affluent

Children in household

Over 63% own a dog or cat

Companionship and security

Wellbeing and stress reduction

Dealers, Distributors, Brokers

Top Retailers

WalmartPetSmartPETCO

SupermarketsTarget

Costo (other mass merchandisers)

$8.5 billion

Advertising History

Advertising

Emotional appeal as industry wide trend

Pets are part of the family Expenditure

PetSmart - $58 million

PETCO - $12 million

SWOT

Strengths

• Pet friendly stores• Expertise

•Variety of products •Services

• Affluent consumerbase

Weaknesses

• Steep prices• Lacks brand

identity

Threats

• Supermarket One-stop shop• Decline in children in household

Opportunities

• Pet ownership• Hispanic population

• Willingness to pay for

organic and natural • Growth despite

economy

Campaign Objectives

• Launch campaign June 6th, 2011• Target men and women ( ages 25-34)• Emphasis on first time pet owners•Drive consumers to PETCO for purchase of pet food and supplies over mass retailers

• Position as a company completely unique to it’s category- expertise and trust for a lifetime. • Generate consumer interest and trust around PETCO• Maintain a budget of $9.6 million

Target Audience

Adults 25-34

Caucasian

Married

$40,000+ income

Bachelors degree or higher

Age Horiz% Vert% Index22-24 2.19 41.2 7725-29 8.49 61.5 11530-34 10.9 55 10335-39 9.68 61.2 11440-44 10.3 59.2 11045-49 10.9 64.6 12050-54 12.4 61.4 11555-59 9.64 56.7 10660-64 7.97 52.7 9865-69 4.91 44.3 8370-74 3.69 36.2 67

Race Total <000>

<000> Horiz % Vert % Index

White 61,360 52,618 85.8 59 110Black or African America

n

61,360 3,965 6.46 29.2 54

Asian 61,360 1,111 1.81 27.8 52Some Other

61,360 3,666 5.97 50.7 95

Not White or

Black

61,360 4,776 7.78 42.6 79

Marital

Status

Total <000>

<000> Horiz% Vert% Index

Presently

Married

55,378 34,051 55.5 61.5 115

Widowed 11,676 4,374 7.13 37.5 70Divorced 17,300 8,827 14.4 50.9 95Seperate

d3,388 1,676 2.73 49.5 92

Never Married

26,635 12,432 20.3 46.7 87

Not Married

59,029 27,309 44.5 46.3 86

HH Income

Total <000>

<000> Horiz % Vert % Index

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

35,000-39,999

5,950 2,793 4.55 46.9 88

40,000-44,999

5,509 3,053 4.98 55.4 103

45,000-49,999

4,723 2,484 4.05 52.6 98

50,000-59,999

9,229 4,912 8.01 53.2 99

60,000-74,999

11,166 6,533 10.6 58.5 109

75,000-99,999

13,832 8,351 13.6 60.4 113

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

Income of $40k +

Pet Loving Cities

Why These Cities?

Fun for dogs and owners

Excellent veterinary care

Active Human Society

Embrace pets

Primary Research Qualtrics Survey

137 respondents

Attitudes towards pet food, supply retailers and media habits

Most Frequent Place of Purchase for Pet Supplies

Costco 25.8%Walmart 16.1%Target 6.5%Supermarket 6.5%PetSmart 25.8%PETCO 19.4%

CostcoWalmart

TargetSupermarket

PetSmartPETCO

Most Frequent Place of Purchase for Pet Food

Costco 23.5%Walmart 17.6%Target 5.9%Supermarket 14.7%PetSmart 11.8%PETCO 11.8%Other 14.7%

CostcoWalmart

TargetSupermarketPetSmartPETCO

Other

Most Influential Factor When Shopping for Pet Food and Supplies

Longevity 5.9%Taste 2.9%Price 44.1%Quality 47.1%

PriceQuality

Longevity

“I want coupons and discounts tailored toward my purchase preferences.”

Peer recommendations outweigh advertising

Price and quality as most influential factor

Media Objectives

• Leverage media and sales promotions to target adults 25-34

• Reach niche markets

• Utilize cable television, internet, radio, and outdoor to reach audience

• Reach breeders, veterinarians and other influencers

• Distinguish from Walmart

• Stay within a budget of $4 million

Television

Cable Television

60 spots with call to action

High rating with lowest cost per point

Total <000>

<000> Vert % Horiz %

Index

Quintile I 21,003 2,465 23 11.1 116Quintile II 22,118 3,874 19.5 17.5 99

Quintile III

20,675 3,388 17.1 16.4 92

Quintile IV

21,082 3,713 18.7 17.6 99

Quintile V 27,039 5,235 26.4 19.4 109

Cable Television

Radio

Spot Radio in target cities

Adults ages 25-54

Radio by Format Total<000>

Horiz% Vert % Index

Alternative 21,410 20.8 17.3 115

Contemporary 17,199 23.2 19.4 129Country or Western 17,099 20.8 17.2 115

Hot Adult Contemporary

16,947 25.8 18.1 113

Total <000>

<000> Vert % Horiz % Index

Quintile I 20,411 2,276 21.2 11.2 116Quintile II 21,360 2,638 24.6 12.3 129Quintile III 20,045 2,198 20.5 11 114Quintile IV 19,932 2,312 21.6 11.6 121Quintile V 26,290 1,755 16.4 6.68 70

Radio

Trade Publications

Veterinary Medicine – Circulation: 54, 836

PetAge – Circulation: 26,119AKC Gazette – Circulation: 37,000

RadioOutdoor

8 week flight

Target Cities

Outdoor Total <000>

<000> Vert % Horiz % Index

Quintile I 21,405 2,331 21.7 10.9 114Quintile II 22,016 2,176 20.3 9.8 103Quintile III 22,237 2,308 21.5 10.4 108Quintile IV 22,883 1,919 17.9 8.38 88Quintile V 23,378 1,988 18.5 8.5 89

Big Idea

“First Time Moments”

Creative Objectives

One-stop shop

Knowledge and emotions

Brand awareness

Single comprehensive message

Budget $1.4 million

Website

Facebook Ad

Social networking expert

500 million active users

$1,000/day

Google Ad Words

Most used search engine – 49.2%

Keyword optimization

$3,000/day

Keywords: DogCat

Pet foodPet supplies

Pet care

Mobile Application

Promotions

Events: Pet Expos, Parades, etc.

• Photo Booth • Gift bags

• Obedience trainer present

PETCO PALS

• Rewards program • First time users - $10 off coupon when signing up

• Current users - $20 off coupon at point of purchase

“Give Them a First Time”

PETCO partners with the Humane Society of U.S.

•3,500 animal shelters across U.S. •$1.00 donation for every animal adopted•Estimated 185 pets adopted per shelter

Paw Print Promo

•Two weekend event •Paw print tiles

•Symbol of partnership in pets growth •Christmas ornament

Budget

Promotions 26%

$4.3million

Production 15%

$1.3million Media 40%$3.8 million

Reserve 2%$89,209.50 million

MediaPromotionsProduction Reserve

THANK YOU!