e Motives data Ltd
Our vision is to globalize our pet tracking device by providing our customers with 100% customer satisfaction on the basis of superior technology and price. We at pettrak recognize the value of pets. Our mission is to provide you with a absolute solution to locate and trace your pets with convenience, at a very economical price using the modern technology. Its our responsibility to provide you with good value for money. Our objective is to increase our sales by 85000 units and revenue by 9.5millon in two years by improving the product according to the customer’s needs and demands. It is also our obligation to move the product to the purchase price of 40-50£ with a service income of 5-10£ each month.
The company’s targeted sales had forecasted to be 15000 units in the first year which had fetched revenue of £1.5m which grew to 100000 units in third year with revenue of £11m. They were also certain to lower their cost in the future but due to non decline in the production cost because of lack of sales volume. The Costs of components supplied from overseas had been affected by the decreasing value of the pound against the dollar and rise in prices of plastics. The growth was not sustained by itself and it had become increasingly more difficult to attract multiple chains. In particular, general grocery multiples (Tesco, Asda etc) had not taken the product up citing its relatively high retail price as a significant barrier to adoption as a ‘pets accessory.’ The management of the company also had many critical issues which led to many conflicts within different departments.
The product has many weaknesses as well, according to customer feedback report, consumer were not happy about accessing the battery via mobile phone and that fact that battery needed to be recharged to often. The plastic casing / attachment loop also needed to be strengthened as mentioned after the engineering evaluation. Due to lack of finance, the company was not able to position itself properly in their target market.
Thus they decided to get into partnership with Hainan Electronics based in China and the decision to reposition the brand image by developing a stronger and more reliable product. The following changes took place: Change of company logo to have a better impact on the customer; Replacement of thin plastic casing by metal to have a strong attachment loop for large dogs; Due to risk of tumours, product casing was redesigned as well providing new and variety of casing designs and sizes; The battery was changed to the option C3, where ‘pull’ mode will be implemented. Power consumption would be based on standby usage until needed and will in turn increase the recharge time to once per seven to ten days.
It is further recommendation, PetTrak is to increase the target market from just cat and dogs to other animals like birds, endangered species and can also be used to vehicles. The company can also increase their market size by expanding from UK to wider European market or even go global.
The company PetTrak that was launched in 2008 by a start up company called eMotive Data Ltd. PetTrak is a new tracking and location finding device product based on GPS (global positioning system) and GPRS (mobile phone technology) which is attached to the pets collar and aimed at the cat and dog market. Along with the market leading technology, the company also focuses on the after sales services and customer relationship management. The company’s top level management includes four key people namely- Amanda Jones the managing Director who also looks after the HRM, finance and purchase departments, Jonathan Cook for production, Steve brooks for marketing & sales and Sue Roberts for product engineering & development. Along with staffing, the company also had conflicts over decision making between different departments. The company’s finance was also not in the right place. There were many problems with the products as well, consumer were not happy about accessing the battery via mobile phone and that fact that battery needed to be recharged to often. The plastic casing / attachment loop also needed to be strengthened as mentioned after the engineering evaluation. Due to lack of finance, the company was not able to position themselves properly in their target market. The company had to decide whether to put the company into administration or to search for another investor.
According to the resources / information given by our company [Riboud Ventures]
Repositioning of brand image by product development and differentiation that can be done by taking the following steps:
* Change of company logo to have a better impact on the customer
* Replacement of thin plastic casing by metal to have a strong attachment loop for large dogs
* Product casing was redesigned to reduce the amount of radiation which might cause tumour.
* Provide new and variety of casing designs and sizes
* The battery backup, which was the biggest drawback as mentioned in the customer survey, was changed as well to the option C3 and will in turn increase the recharge time to once per seven to ten days.
* The company management is also re-structured there were new managers for the Human resource and Finance department. The two external managers are professional and experienced. Re-structuring of the company will give PetTrak a strong and a better position.
The market segment for the brand is people with cat and dog as pets.
The company makes its products for cats and dogs. The profile between cat and dog owners is quite different.
In broad terms cat owners are young females (25-34), working full time and of higher socio-economic groups. Their internet usage is higher than average and their TV usage is lower. They are generally in one or two person households. Females are more likely to view pets as part of the family and are more likely to agree with the statement that pets are good company. Females place greater value on the companionship and emotional bond of pet ownership and more likely to claim to treat their pets like children. The maternal instinct is a constant and enduring part of the pet ownership experience for females.
By contrast, dog owners show an even male-female profile (25-34), however they are owned by lower socio economic groups. They are heavy TV watchers, light internet users and more likely to be in family life-stage and therefore larger households. Men are more likely to claim that their pets can look after themselves.
POSITION OF THE NEW BRAND
PetTrak strategic positioning includes
the below swot analysis represents the market position of the company. On the basis of the strength, weakness, opportunities and threat PetTrak can make decision regarding the changes to be made and what position they have in the market.
• PREMIUM PRODUCT
• MODERN TECNOLOGY
• LOW PRICE
• DEVICE USED FOR LOCATING NOT TIME TRACKING
• LESS CONTROL OVER DISTRIBUTION
• TECHNOLOGY UPGRADATION
• RISING MARKET
• NO PATENT ON TECHNOLOGY
• LOW EXIT AND ENTRY BARRIERS
• HIGH MARKET GAP
· PORTERS FIVE FORCES: the below Porters five forces represents the competitive position of PetTrak which shows the current position of the company in the market.