PetMeds annotated outline - Case Study Example

PetMeds Annotated Outline Introduction This introductory part describes the background of PetMeds Express. A. History and businessThe company participates in the pharmacy industry, and its major business is to provide non-prescription and prescription medications for pets, such as cats and dogs, among other health (PetMeds Website). The company was established in 1996 and has its headquarters in the Floridian city of Pompano Beach (Yellow Pages, 2014).B. Company namesThe company operates under the business name 1-800-PetMeds.

However, the legal name of the company is PetMeds Express, Inc. (Russel, 2010). 2. Marketing and Advertising In this section, the paper analyses the ways in which the company reaches its customers and persuades them to be loyal.A. AdvertisingPetMeds Express advertises its products using Television media. The length of the commercial aired on television range between 15-30 seconds and the emphasis of these commercials is on the affordability and promptness of delivering the products. The products are also advertised on the internet platform through social media and video advertisements (PetMeds Express, Inc, 2012).B. MarketingEmails are used to persuade new customers.

Old customers are reminded to make purchases through the emails, as well (PetMeds Express, Inc, 2012). The website of the company is also an effective means of marketing the products.3. OperationsThis section explores the manner in which the company conducts its business, right from the time the order is placed right to the point of consumption.A. PurchasesThe products sold by the company are purchased directly from four major manufacturers. However, these manufacturers offer a variety of resources that cater for the needs of all customers (PetMeds Express, Inc, 2012).B. Order processingCustomers make orders directly from the company’s website (PetMeds Website).

Optionally, a customer can make a toll-free call to the company’s customer representatives to place an order (PetMeds Express, Inc, 2012). C. Customer care and supportThe company has a program in which customer care representatives receive training, on a continuous basis, from training officers. These representatives take care of customer complaints and compliments hence evaluation of customer satisfaction is possible (PetMeds Express, Inc, 2012).D. ShippingAfter making the order, the company’s supply-chain section, based Pompano Beach, processes the order and ships it to customers across the US.

Customers can track the progress of their orders through the company website (PetMeds Express, Inc, 2012).4. CompetitionThis section analyses the market threats of the company and how it has achieved to counter them. The company has experienced stiff competition from veterinarians and other retailers, traditional and online based. In fact, the veterinarians have even engaged in a litigation battle with the company (Fiala, 2012). However, the company commands a greater market share due to the affordability of its products, promptness in delivery and convenience.5. Performance of the companyUnder this section, the paper digs into the financial performance of the company in the past years and the future prospects in this respect.A. Net profitThe company’s net profits have been relatively flat in the past years, and this is attributed to the increased administrative and general expenses.

Nevertheless, this is set to improve in the coming years through the pricing strategy (Proactive Investors, 2011). B. Ordinary dividendsDespite the tenuous dampening in the profits of the company, the dividends to the ordinary shareholders have been on a steady step-up.C. Stock performanceThe company trades its stock in the Nasdaq stock Exchange. The current price of the company’s shares is $13.59 per share, which is higher than a year’s target (Bloomberg Businessweek, 2014). Moreover, it is a relative appreciation of the value of the stock.D. Past RankingsThe company was ranked fourth by Forbes in 2006, under the category of 200 best small business Companies (Gage, 2006).

Also, Businessweek ranked PetMeds Express as the 27th “Hot Growth Companies” Category in 2004 (Barrett, 2004).6. ControversiesThe company was sued in 2001 for selling flea control products that were allegedly purchased from a manufacturer not based in the US, which was against the regulations. Also, the shareholders of the company sued it in 2004 for failing to disclose, in advance, some underlying problems in the company so as to enable them sell their shares. Nonetheless, the lawsuits were dropped, later on (Business Wire, 2005).

Besides, the company has been involved in several lawsuits with veterinarians (Fiala, 2012).7. Summary and conclusion This section summarizes all the issues addressed pertaining to PetMeds Express, both the negative and positive. Finally, a conclusion on the viability of investing in the company is drawn. Despite the lawsuits and the deteriorating profits, prospective shareholders can confidently purchase shares in PetMeds Express.ReferencesBarrett, A. (2004, June 6). Hot Growth Companies.

Bloomberg Businessweek. Retrieved from http://www.businessweek.com/stories/2004-06-06/hot-growth-companiesBloomberg Businessweek. (2014) PetMed Express Inc (PETS: NASDAQ GS). Retrieved from http://investing.businessweek.com/research/stocks/ownership/ownership.asp?ticker=PETBusiness Wire. (2005, February 1).PetMed Express D/B/A 1-800-PetMeds Announces the Dismissal of Class Action Suits. Retrieved from http://www.businesswire.com/news/home/20050201006050/en/PetMed-Express-DBA-1-800-PetMeds-Announces-Dismissal-Class#.

VI-ac8nHTK8Fiala, J. (2012, January 16). Veterinarians confront Internet pharmacy PetMed Express. VIN News Service. Retrieved from http://news.vin.com/VINNews.aspx?articleId=21166Gage, J. (2006, October 12). Americas 200 Best Small Companies. Forbes. Retrieved from http://www.forbes.com/lists/2006/23/biz_06200best_The-200-Best-Small- Companies_land.htmlPetMeds Website. Accessed 15 December, 2014: http://www.1800petmeds.com/PetMed Express, Inc. (2012). 2012 Annual Report. Pompano Beach, FL: PetMed Express Proactive Investors.

(2011, January 24). PetMed Express reports third quarter profits fall 20%. US Market News Report.Russel, F. (2010, October 5). PetMed Express, Inc. (NASDAQ: PETS) Investment Letter. Accessible from www.fredricerussell.com.Yellow Pages. (2014). PetMed Express: Business Details. Retrieved from http://www.yellowpages.com/pompano-beach-fl/mip/petmed-express-16745482