- Making your decisions ahead of time weighing out the options of
whether you prefer burial or cremation, types of service or merchandise you prefer
- Determining your family’s needs and budget ahead of time - Finalizing your pet’s cremation or pet burial pre-arrangements
eliminating hastily made decisions and later regrets
- Locking in today’s prices for services that may not be needed for many years.
4. Market Overview
4.1 Overall Market
According to statistics by end of 2008, Panama’s Pet market is full of potential as the total count of pets is approximately 25% of total population.
For anyone considering pet ownership Pets are a lifetime commitment. Adopting a pet is just like adopting a child because it entails all the same responsibilities; financial, medical, emotional, physical, and more. Pets need constant attention, supervision, and consistency of rules to train them to live inside a home. A pet's medical needs cannot be ignored. Even diet must be considered. What a pet owner feeds their pet cannot be the cheapest food they can find! Would anyone feed their kids cheap junk food every day and expect them to be healthy? Pets give back so much to their pet parents. The unconditional love and companionship they freely provide should be shown appreciation with the best possible pet parenting one can give.
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I wish every person could and would adopt a pet, but only if they are willing to go the full distance, treating that pet as if it's a member of the family or their only child. Anything less is unacceptable.
4.2 Market opportunities
Reasons for starting this kind of business and why it might be profitable:
- Regional economies expansion
- Change in lifestyles (childless couples usually adopt pets) - Pets have becomes relevant in families and individuals lives
- Increase in mass communication and promotion in the pet’s category - Most countries in the region during the decade have shown growth - In recent years, has evolved the idea that the dog is man's best friend
because of his faithfulness.
- In different countries, trends have emerged where a pet is treated like a child, and therefore requires more care and attention
The market for pets has been increasing over the past years. According to veterinarians, the result of this growth has affected the average monthly expenditure for a person who owns a pet, which includes spending for food, medical, baths and accessories. Another point worth noting is the growth of our country veterinaries, especially in the last decade where the demand has grown.
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Experts say that a few years ago, veterinarians usually received three to four visits a day and today have risen to around 20 visits a day. According to studies results in the following years this market may continue to grow.
4.3 Consumer Profile
Pet’s Heaven has the following profile:
- People who own pets: they are our target audience as it is they who would require the service.
- Belong to the socioeconomic level A and B: according to our economic growth, people have increased their purchasing power, so as a result of this effect, people increase their investment in their pets.
- People who are within this range know how important pets are, depending on this, owners will decided either to spend in funeral services for their pets or not.
4.4 Competitive Analysis - Threat of new entrants
In this market entry barriers for new competitors are low because they are easy to overcome, but it is also true that a corporation would find a little profitable to get in the niche of the market that we are heading to. It is
important that our corporate strategy is to position ourselves to be prepared for any threat of entry in the long run.
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- Rivalry among competitors
Our direct and indirect competitors in the market are not very strong so far, our company would be prepared to face this market and our strategy of differentiation is to offer a high and proven quality funeral services which would only be offered by us, on the other hand, the growing market for pets makes the rivalry among competitors less intense. It should also mention that our company long-term strategy is to reduce fixed costs, set aggressive
advertising and promotions
- Bargaining power of buyers
The market is considered less attractive because we will allow buyers to
choose between buying our different products, Also, we will try to address this position and gain loyalty is by offering a product/service that is almost
nonexistent in the market but seems to be attractive. Buyers are small and are not organized. There is also very low probability that there will be a backward integration.
- Bargaining power of suppliers
Bargaining power of suppliers is low because we don’t need to make much purchase to offer our main services, for extra services even if the inputs are key to us, there are many providers of these. Also as our sales grow, which consequently will grow our purchases, we will gain more power over them.
- Threat of substitute products
We know that our greatest threat of substitute products are the alternative services that some veterinary clinics could offer, but they are not focused on providing this kind of service and are not 100% proven as us. But we also
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know that it would be difficult to make the entry of a substitute product, so our company aims to improve its processes y expand its portfolio of alternative services which allow the market to provide products with higher strengths.
4.5 Swot Analysis
Table 1. Swot
Strength
Quality Service Guaranteed First in the market
No need to Bank Refinancing Good Profit Margin
Weakness
Some people won't see worthy to spend in this kind of business and would bury their pets by themselves or maybe throw them away in a plastic bag
Opportunities
Big changes in people's lifestyle growing demand for pet related products and services
Environment is more pet friendly nowadays
Threats New people entering in the pet market as New Competition