The Pet Hospitality Industry - Case Study Example

The pet hospitality industry Overview Statistics show that the American consumer is changing the way that he/she treats his/he pet. The focus is mainly on the dog and the cat although the former is the most favored. The global consumer electronic market is the only one that is faster growing than the pet market. Traditionally, the life of mans best friend was restrained to the effects of nature and a few scraps from the dining table. However, with the changing trends, many people who choose not to have children have cited a pet as a close alternative. Interestingly, it is very important to note that most people who own pets spend more on them than those that have children do on these children. The trend nowadays is to focus on the customization of pet products and services so that they resemble those of human beings. The bottom-line in the attempt to treat pets as people are treated is the fact that the 75 million dogs and 88 million cats are trainable. One pet enthusiast and the CEO of PetSmart.Inc Phillip L. Francis concedes that the care of pets is because unlike snakes and fish, the can be trained to accompany man. The company is one of the leading retailers in pet foods and has even gone a step further by attempting to teach people to become better pet parents. The line between the way that these four-legged mammals are treated and the way that the two-legged mammals are treated has thinned. This paper will attempt to answer a couple of questions mostly on how hotels and other retailers of pet products and services can take the rise in pet enthusiasm to their advantage. Question 1: Product attributes for an upscale hotel The fact that only the consumer electronic market is faster growing that the pet market shows that opportunities are many and the market can be easily tapped by customizing products so that they better satisfy these consumers. For an upscale hotel to be in a position to capitalize on the growing pet market, a number of things have to be done. First, the hotel should ensure that it has the best facilities than its competitors. This means that a market research is of utmost importance. Pet owners should be interviewed so that their input is used to better the facilities that may be available for the pets. Most hotels offer private suites for pets that are characterized by raised platform beds. This is a shift from the traditional low lying beds that were next to the pet owners beds. However, it is now almost a rule that pets have their own beds that resemble those of their owners. Additionally, there are television sets in those suites that are tuned into the animal channels. Research into pets has shown that animals usually are fascinated by watching others on the television more than they enjoy watching other channels. Additionally, there are bone booths in the pet private suites where the pets can call their owners. The floors of these suites are usually porous so that the animals can urinate on them and no stench or stains will be left. Additionally, there is the use of fish tanks in cat rooms to satisfy the fascination which cats have with fish. In most cases, the air filtration systems are different in dog and cat suites so that the animals are not offended by the presence of the others. All these features in the pet suites have been as a result from the input from pet owners and the research done in the market. Other services that are offered for the pets include grooming, training and also health facilities. These products and services are offered by a large number of upscale hotels and have been the reason why PetSmart has seen its revenues grow from virtually nothing in 2000 to about $450 million presently (Bond 4). This also accounted for about 10% of all sales in the country. The CEO of the company claims that people are no longer driven by the price of products and services when catering for their pets but rather by emotion and compassion. The products attributes that these upscale hotels pursue are those that provide utmost comfort for the pets and their owners. The product attributes that upscale hotels and upscale kennels offer are not very different. However, kennels offer more services for the pets including walks and massages that may not be offered by the hotels. This is because most upscale kennels are most likely resorts and hence have more in terms of location, products and services. Question 2: Strategies for Petco to pursue Petco should pursue strategies that may enable the company to build customer loyalty and also to make sure that there is increased store traffic. A very efficient strategy is the use of charitable causes so that the products and services offered receives a promotion. The donation of funds to activities that border on the welfare of animals is very important. This initiative also makes sure that the company will stay in touch with many like minded organizations which allow it to receive some market advantage through brand visibility in the promotion efforts of these other organizations. Additionally, the giving of discounts for products offered is also a viable strategy that may increase the market share for the company. For example, the company may give a discount for the branding of pets which is a very common practice in the USA. The procedure involves the implanting of microchips under the skin of pets so that they can be easily tracked (Masters 5). This may entail the partnership of Petco with other companies that do the microchipping. Another strategy is the use of special occasions like pet walks in order to give pet owners information on how they cater for their pets. It is prudent that pet owners learn on first aid procedures for their animals, on how and what vaccinations are important and also on how the animal should be sprayed in order to keep them clean and free from ticks and fleas. Finally, the company should continue its product branding strategy as it helps its products to be distinguishable form those of the competitors. The major emphasis should be on the treatment of pets as children. Strategies for Marriott to pursue Marriott has the advantage of being a market leader in the hospitality industry (DeLollis 4). Many customers trust the company to provide the best products and services. Therefore, this reputation is the point from which the hotel chain should strive to build on. Since the emphasis is on the best treatment for pets, the first thing that the chain should do is to make sure that customers are aware of the products and services offered. This may be through the use of paid up advertisements in the various advertising channels. The use of social media like twitter and facebook should be the major channel for advertising. Additionally, the hotel chain should use television and the print media to reach a wider audience and customer base. Marriott should also ensure that it has a wide range of products and services that are aimed at meeting the various needs of pets from accommodation, to nutrition and even entertainment. By conducting researches, the company should be in a position to know what trends are most current in the pet industry and should strive to be the market leader in providing products and services that are reflective of those trends. Another strategy that Marriott should aim to pursue is the formation of partnerships with other service providers in the industry. Since the hotel chain basically offers the accommodation, food and entertainment services for pets, it should partner with charitable organizations, for example, and other health service providers which will provide extra attention and service to the pets and also serve to educate the pet parents. The end result for such partnerships would be that the hotel chain will be promoted through campaigns launched by these partners.. Question 3: Pros and cons for multiproduct branding and multi branding strategies for Petco and Marriott Multi branding and multi product branding concepts are very important when it comes to marketing of products. Multi branding entails having many different brands encompassed within the company. It may involve foods, drinks or even entertainment. Multi product branding on the other hand entails having many products under a single brand. The two concepts are aimed at making sure that the companies have a wide range of products and services that can allow them to have a large customer base as the preferences of people may differ. First, the major advantage is that customers have a choice of products and services to choose from. This ensures that there is a large number of people who are attracted to the different brands on offer hence ensure that the companies continue to build a large customer base. Additionally, the companies are able to have a wide range of brands which satisfies a large number of pets and hence ensures that the companies attract a wide range of pets thus reducing over reliance on a single market. For example, both Marriott and Petco have a large number of brands targeting a wide array of pets including dogs and cats (Petco). On the other hand, they have a wide range of products that are aimed at a single category of pets. This means that if one product does not perform well in the market, improved sales in the other products can offset the deficit. The disadvantage of these strategies is that there is competition between the products and brands from each other within the companies. This ultimately reduces the revenues that are attracted by a single product or brand since the revenues are spread out across a large number of products and brands. There is also the fact that the product may drive customers away since some of them may not have the time to choose from the wide range of similar products marketed under different brand names. Question 4: Royal Pets’ Hotel The Royal Pets’ Hotel is an upscale hotel and spa that is dedicated to the utmost care of pets allowing their owners to have a relaxing time (Royal Pets’ Hotel). The hotel boasts as having the highest ratio of caregivers at any one time whoa re trained and qualified for the job of handling pets be they cats, dogs or puppies. Furthermore, they claim that they treat the pets as their own family members and also allow them to interact with others. There is a wide range of services that the hotel offers. First, the hotel has very upscale lodging faculties for pets which include a wide range of packages that pet owners can choose from. Additionally, the hotel has activities like playtimes for pets, play dates where there is supervision as pets play with each other, business walks for pets who may want a change of scene, story time and tuck-ins where pets get to hear stories as well as be pampered and cuddled while they sleep, best homemade treats that are very nutritional for the pets and bathing and grooming where the pets receive a bath with a brush, nail trimming and shed control in the spa. PetSmart Pet Hotel At the PetSmart Pet Hotel, there are a wide variety of services and product most of which resemble those at the Royal Pets’ Hotel. These include walks for dogs and state of the art accommodation. There is a separate atrium where the air is filtered multiple times before it enters this area that is reserved for pet exercise. The additional feature is the doggie day camp where dogs get to camp outside the premises for the day in the company of others and trained personnel. These products and activities provided by both hotels are aimed at treating the pets as they would at home. Both hotels boast that the pets leave their premises happier and healthier. Recommendations Both the Royal Pets’ Hotel and the PetSmart Pet Hotel should ensure that they increase their online presence (Petsmart Petshotel). Their respective websites just provide the basic services that they offer but not in as much detail as is important to generate considerable interest. Additionally, their websites have the same format and layout with little of note to tell them apart except the themes protracted. This paper recommends that the hotels do more to make use the prospective customers have more information on them. For example, the hotels should use more social media like twitter and facebook in order to generate the necessary interest. Moreover, the companies should strive to enhance their images by investing more in the designs and contents of their websites so that they are attractive and informative. Paid for advertisement in these social media as well as the formation of groups where customers give their feedbacks and opinions would also be a good way of ensuring that there is interest and a constant flow of information. Question 5: product lifecycle for the pet hospitality industry The pet hospitality industry is still in the growth phase in the product life cycle (Day 60-67). This is because the crafting of products and services is still ongoing and demand for the products has not reached the maturity level (Levitt 93). Considering the case of PetSmart Pets Hotel, it is possible to see that the demand for pet products is just beginning to peak. During the recession, the retail industry stagnated and revenues were low with major losses recorded in the industry. However, despite the recession, the pet industry continued raking in profits. PetSmart Pets Hotel recorded a profit during this period. This was driven by the desire of pet owners and pet parents to treat their pets in a manner that is equal to how human beings are treated. The economic downturn made people to tighten their spending as their incomes were reduced. This did not however affect the way that pets were being treated. Instead, these pet owners chose to scale down on their own spending rather than that of their four-legged companions. This year alone, the pet industry is estimated to have a 4.4% increase in revenues. The amount is meant to drop to 3.8% in 2012 (Shim 5). These facts help us to see that the pet hospitality industry is growing in all attributes. Additionally, the fact that hotels like PetSmart Pets Hotel have increased the range of products from pet foods, to accommodation and grooming to luxuries such as spas and walks for pets shows that the industry is increasing in the number and range of products offered compared to the market of human foods, where there is a saturation of products in the market (Petsmart). Finally, the fact that the hotel has 132 outlets and is still growing suggests that the pet hospitality industry is still a long way from becoming saturated. Conclusion The pet hospitality industry is fast growing. In fact, apart from the consumer electronics industry, there is no other industry that is as fast growing. Reports have shown that even despite the recession, the pet industry continues growing. This has been attributed to the lifestyles adopted by people involving the choice not to have children. For these couples, having a pet is equivalent to having children and they therefore spend considerably on them. The world pet “parent” has been coined in favor of pet owner in order to explain this transition. This trend has made it important for the hospitality industry to discover a new market. There is a whole hoard of upscale hotels and kennels that offer a wide range of services that are aimed at satisfying these needs that have been identified. The idea behind all the initiatives to make pets part of the family is to craft products that closely resemble those of human beings. There are spas for dogs, private suites for pets, play areas, walks and other facilities meant to make pets comfortable. Additionally, there is improved healthcare for pets. Hospitality outlets like the Marriott, Petco, PetSmart Pet Hotel and Royal Pets’ Hotel are now market leaders in the pet hospitality industry some with over 100 hundred outlets in the US alone. These developments have seen massive promotional initiatives launched in order to outdo the competition. Certainly, the only reason that every company is benefiting from the market presently is because the industry is still in its growth phase. The trend is expected to continue as more and more people adopt lifestyles that are more considerate to the pets. Works cited Bond, Jessica Taylor. Top 10 global petfood leaders. 11 Dec, 2011 Day, George. “The product life cycle: Analysis and applications issues.” Journal of Marketing, vol 45, (1981): pp 60–67. DeLollis, Barbara. "Marriott says no to adult movies in new hotels". USA Today, 21 January 2011. Levitt, Theodore. “Exploit the product life cycle.” Harvard Business Review, vol 43 (1965): pp 81–94. Masters, Catherine. "The year of the dog war". The New Zealand Herald. 25 March 2006. Petco. 11th Dec, 2011 Petsmart Petshotel. Services. 11th Dec, 2011 Petsmart. Grooming. 11th Dec, 2011 Shim, Janet. Pet Stores in the US. IBISWorld Industry Report 45391, 2011 p5 Royal Pets’ Hotel. Services offered. 11th Dec, 2011 Read More