The Phoebe’s六星級寵物旅館 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University 碩士論文. 治政 Master’s Thesis大立 ‧ 國. 學 ‧. The Phoebe’s六星級寵物旅館 y. Nat. n. al. er. io. sit. The Phoebe’s Six Star Pet Hotel Ch. engchi. i Un. v. Student: Dennis Lin Advisor: Professor Samuel Chen. 中華民國九十九年七月 July 2010.

(2) The Phoebe’s六星級寵物旅館 The Phoebe’s Six Star Pet Hotel. 研究生：林恕立. Student: Dennis Lin. 指導教授：陳春龍. Advisor: Samuel Chen. 學. 國立政治大學. 商學院國際經營管理碩士學程. y. A Thesis. a. er. io. sit. Nat. 碩士論文. ‧. ‧ 國. 立. 政治大. n. iv Submittedl to CInternational MBAnProgram. U. h. i e n g c hUniversity National Chengchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國九十九年七月 July 2010 II.

(3) Acknowledgment. First of all, I would like to express my sincere appreciation to the IMBA Director, Mr. Samuel Chen, who is also my thesis advisor. I would like to thank him for his unconditional support to me; Samuel’s hard work and contribution have made the IMBA a great program. This thesis is an extension to a project study contributed by the other IMBA members, including Cathy Chan, Misha Lin, and Joyce Liu, and me. I would like to. 政治大. thank them for their generosity of letting me adopt the project study as a foundation of. 立. my graduate dissertation.. ‧ 國. 學. There are many great friends that I had met in the IMBA program, without their friendship and support I couldn’t have gone this far. Other than the three. ‧. above-mentioned classmates, Charles Ok and Betty Wu had also become two of the very. y. Nat. io. sit. important friends in my life. One of my best friends in the IMBA program eventually. n. al. er. became my wife. Joyce, thank you for having been there for me. Another sweet surprise. Ch. i Un. v. was Phoebe, my wife’s cat, and now the new love of my life and the inspiration of this thesis.. engchi. Last but not the least: I would like to dedicate this thesis to my parents, for their endless support to and care for me.. III.

(4) Table of Content. LIST OF TABLES .......................................................................................................... VI LIST OF APPENDICES .............................................................................................. VII I.. EXECUTIVE SUMMARY .................................................................................. 1. II.. COMPANY VISION............................................................................................. 2. . VISION STATEMENT ............................................................................................. 2. . MISSION STATEMENT ........................................................................................... 2. III.. BUSINESS DESCRIPTION ................................................................................ 3. IV.. THE MANAGEMENT TEAM............................................................................ 5. V.. BUSINESS ENVIRONMENT ANALYSIS ........................................................ 7. 立. 政治大. EXTERNAL ENVIRONMENT ................................................................................... 7. . TAIWAN PET MARKET OVERVIEW ........................................................................ 8 TOTAL AVAILABLE MARKET FOR THE PHOEBE’S ................................................11. ‧ 國. ‧. VI.. 學. . COMPETITIVE ANALYSIS............................................................................. 14. Nat. VII.. MARKETING PLAN ......................................................................................... 20. . MARKET SEGMENTATION................................................................................... 20. . THE PHOEBE’S VALUE PROPOSITION .................................................................. 21 THE PHOEBE’S LOCATION .................................................................................. 22 PRODUCT & PRICE ............................................................................................. 23 PROMOTION ....................................................................................................... 28 MEMBERSHIP ..................................................................................................... 29. VIII.. OPERATIONAL PLAN .................................................................................... 31. . BUSINESS PROCESS ............................................................................................ 31 KEY SUCCESS FACTORS ..................................................................................... 32 DEVELOPMENT ROADMAP ................................................................................. 33. . TERMS & CONDITION ........................................................................................ 35. n. al. er. sit. y. AMATEUR PLAYERS WITH UNCLEAR POSITIONING .............................................. 14 COMPETITION GEOGRAPHY ............................................................................... 15 COMPETITION CATEGORIZATION ........................................................................ 16 OVERSEAS PEERS BENCHMARK ......................................................................... 17. io. . Ch. engchi. IV. i Un. v.

(5) IX.. FINANCIAL PLAN ............................................................................................ 37. . PRO FORMA 5-YEAR INCOME STATEMENT ......................................................... 37. . PRO FORMA 5-YEAR BALANCE SHEET ............................................................... 39 PRO FORMA 5-YEAR CASH FLOW ...................................................................... 41 KEY FINANCIAL FIGURES PROJECTION .............................................................. 43. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. V. i Un. v.

(6) List of Tables TABLE 5.1 10-YEAR TREND OF AGE DISTRIBUTION IN TAIWAN.. .......................... 8 TABLE 5.2 PETS POPULATION IN TAIWAN ............................................................................. 8 TABLE 5.3 PET POPULATION DISTRIBUTION ........................................................................ 10 TABLE 5.4 PET MARKET VALUE ......................................................................................... 12 TABLE 5.5 TOTAL AVAILABLE MARKET – TAIWAN PET HOTEL ........................................... 13 TABLE 6.1 COMPETITORS DISTRIBUTION BY AREA ............................................................. 16 TABLE 6.2 KILLER FEATURES OF PET HOTELS IN TAIWAN ................................... 17 TABLE 6.3 CUSTOMER VALUE OF PET HOTELS IN TAIWAN................................... 17 TABLE 7.1 PET OWNER SEGMENT ...................................................................................... 20 TABLE 7.2 THE PHOEBE’S VALUE PROPOSITION ................................................................ 21 TABLE 7.3 SERVICES & PRICES .......................................................................................... 24 TABLE 7.4 THE PHOEBE’S VALUE DIFFERENTIATION ......................................................... 28 TABLE 8.1 THE PHOEBE’S BUSINESS PROCESSES ............................................................... 32 TABLE 8.2 THE PHOEBE’S DEVELOPMENT ROADMAP ........................................................ 34 TABLE 9.1 PRO FORMA 5-YEAR INCOME STATEMENT ......................................................... 38 TABLE 9.2 PRO FORMA 5-YEAR INCOME STATEMENT CHART ............................................. 38 TABLE 9.3 PRO FORMA 5-YEAR BALANCE SHEET .............................................................. 40 TABLE 9.4 PRO FORMA 5-YEAR BALANCE SHEET CHART ................................................... 40 TABLE 9.5 PRO FORMA 5-YEAR CASH FLOW ...................................................................... 42 TABLE 9.6 PRO FORMA 5-YEAR CASH FLOW CHART .......................................................... 42 TABLE 9.7 PRO FORMA 5-YEAR KEY FINANCIAL FIGURES ................................................. 43. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. VI. i Un. v.

(7) List of Appendices. APPENDIX 1. LUXURY DOG ACCESSORIES FOR UPSCALE PET SHOPPER................................ 44 APPENDIX 2. TWO MAJOR CATEGORIES OF PET HOTELS IN TAIWAN .................................... 45 APPENDIX 3. TWO EXAMPLES OF OVERSEAS FIVE-STAR PET HOTELS .................................. 48 APPENDIX 4. THE LOCATION OF THE PHOEBE’S ................................................................. 49. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. VII. i Un. v.

(8) I.. Executive Summary. . Why the Phoebe’s? The Phoebe’s is founded with the motivation of solving the founder’s own problem. and grabbing the huge market opportunity of the fast growing upscale pet business in Taiwan. . Company Vision The Phoebe’s is dedicated to providing the best dog boarding services on the island.. . Business Description. . The Team. 治政 Located in Taoyuan County, The Phoebe’s is a six-star 大pet hotel that provides a wide 立 range of product offerings including basic dog boarding and other value-added services. ‧ 國. 學 ‧. The management team of The Phoebe’s is composed of five NCCU IMBA. Marketing Plan. y. sit. io. al. iv n C The Phoebe’s is targeting upscale in Taiwan with the ultimate goal h dog e nowners gchi U n. . er. functional expertise.. Nat. classmates with highly diversified academic background, industrial exposure, and. being to become the only brand the target customers would trust when they have to go out of town. . Operation Plan The Phoebe’s has a set of well defined business processes and core competencies. ensuring its success in the initial stage. The Phoebe’s plans to accelerate overseas expansion and start IPO process in the 5th year after its foundation. . Financial Projection The Phoebe’s financial breakeven point is estimated to be in the 2nd year after its. foundation. 1.

(9) II. Company Vision The Phoebe’s has crafted its company vision and mission statements, which are the guiding principles of how The Phoebe’s will be founded and operated, how the services will be provided, how employees will be recruited, retained, and trained, and how The Phoebe’s will be developed in the future. . Vision Statement The Phoebe’s is dedicated to providing the best dog boarding services on the island.. With our professional, experienced, and passionate service team as well as our. 治政 well-designed facilities and service packages, The Phoebe’s 大 is the first and only brand 立 our customers would trust for taking care of their dogs when they have to go out of town. ‧ 國. 學. . Mission Statement. We do our best to ease the separation anxiety1 for both dogs and their owners;. ‧. ♦. ♦. al. We ensure that the best care will be provided to dogs.. iv n C We promise dog owners a wonderful h e n g ccustomer h i Uexperience. n. ♦. io. ♦. er. distance between dogs and their owners.. sit. y. Nat. we try to provide any possible means to shorten the mental and physical. We are the leading player among all the service providers on the island, and we dedicate ourselves to continuously reinforcing our leading position.. ♦. We strive for building a trustworthy brand for The Phoebe’s.. ♦. We see the staff, brand, and professionalism as the most critical assets of The Phoebe’s.. 1. Separation anxiety in dogs is the fear or dislike of isolation which often results in undesirable behavior. Separation anxiety is one of the most common causes of canine behavioral problems (Polin 1992; Voith and Borchelt 1985). 2.

(10) III. Business Description The Phoebe’s is a professional branded six-star dog hotel which provides ultimate indulgence services for dogs owned by our upscale target customers. The Phoebe’s provides a total package of physical and mental services aiming to take care of dogs, when they are temporarily away from their owners. The total package of services includes following items:. . 政治大 The Phoebe’s will offer lodging with the capacity for 30 small and medium size dogs 立 Lodging and boarding. ‧ 國. 學. plus 20 large dogs. The variety of sizes and the nature mentalities of different dog breeds will be considered in the lodging design. The Phoebe’s will offer customized lodging for. y. sit. SPA. Nat. . ‧. dogs.. n. al. er. io. To ease the separation anxiety of the boarding dogs, The Phoebe’s will provide SPA. i Un. v. services include grooming, pedicure, facial, and massage. A professional crew will be. Ch. hired to perform these SPA services. . engchi. Exercise In order to keep the boarding dogs healthy and fit, The Phoebe’s will provide dog. sports facilities such as a swimming pool and an outdoor grass yard. Professional dog physical trainers will be hired to accompany and guide the boarding dogs when dogs are swimming, jogging, and exercising. . Training courses As for value-added services, The Phoebe’s will provide professional dog training. courses such as obedience and potty trainings.. 3.

(11) . Real-time surveillance Although the physical distance between the boarding dogs and their owners may be. far, The Phoebe’s still tries to keep the mental distance between the dogs and the owners the shortest. For this initiative, The Phoebe’s will provide real-time surveillance that enables customers to see their beloved dogs’ daily activities through the internet. . Health check In order to create a healthy and joyful environment for boarding dogs, The Phoebe’s. will provide initial health checkups when every dog checks in and will reserve the right. 政治大. to refuse dogs with infectious diseases. To keep dogs healthy during their boarding, The. 立. Phoebe’s will hire on-site contract veterinarians to conduct regular health checkups and. ‧ 國. 學. emergency medical treatments. . Pet limo. ‧. For shortening the distance between boarding dogs and their owners, The Phoebe’s. y. Nat. io. sit. will provide pet limo service which includes picking up dogs from their homes if their. n. al. er. owners are too busy to check in those dogs in person before departure . The pet limo. Ch. i Un. v. service also includes an option to take dogs to greet their owners at arrival hall before checkout. . engchi. Photo album Aiming to create a pleasant customer experience, The Phoebe’s will spontaneously. take pictures of boarding dogs and then select the wonderful ones to make a unique photo album. The album, representing a dog’s good time spent in The Phoebe’s, will then be given to its owner during checkout.. 4.

(12) IV. The Management Team All the members of our management team have a selection of different solid backgrounds with diversified functions and experiences from various industries, yet they all have passion for pets.. Chairman: Charles Ok Charles Ok was the General Manager of the Taiwan Branch of LG Chemicals from. 政治大 Taiwan Branch of Ace Digitech. Starting from 2007, Charles has been running a 立. 1998 to 2003. Then during 2005 and 2007, he served as the General Manager of the. ‧ 國. 學. self-owned trading company.. With Charles’ 20 years of experience in the high-tech industry and especially his. ‧. experience of founding a self-owned company, it is expected that he can bring The. Nat. sit. n. al. er. io. and legal issues.. y. Phoebes’ team insights into starting-up affairs, company operation, financial operation,. General Manager: Cathy Chan. Ch. engchi. i Un. v. Cathy Chan was the Sales Manager of Eastern Microelectric from 2002 to 2007. Presently she is the Sales Director of Global OEM Business Group of Everskill Technology Co.,Ltd. With more than 15 years of sales experience, Cathy is expected to help The Phoebes’ team with sales training and management. Her industry connection is also another great help for The Phoebe’s to establish its initial customer base.. Financial Manager: Dennis Lin Dennis Lin has served the posts of Product Manager, Marketing Manager, and Sales. 5.

(13) Manager in Applied Materials and 3M. He currently works for Moxa Tech. as the Product Manager. With his sales, product management, and marketing experiences and his focus on Finance in the NCCU IMBA program, Dennis is expected to be a big help in The Phoebe’s financial operation, business flow, and product design. Dennis has also been a pet lover since his senior high school years.. Marketing Manager: Misha Lin Misha Lin had spent her early career years in the pet industry as the Marketing. 政治大. Executive of Nestle Purina Pet Care. She currently works for Lighting Sector of Philips. 立. Taiwan as the Product Manager. With her in-depth experience and knowledge in pet. ‧ 國. 學. supply industry, Misha is expected to help The Phoebe’s with cost estimation, market positioning, and marketing campaigns. Misha’s wide-spanned contact in the pet industry. ‧. is also a big plus to The Phoebe’s.. io. sit. y. Nat. n. al. er. Operation Manager: Joyce Liu. Ch. i Un. v. Joyce Liu has served several different posts in General Semiconductor and Vishay. engchi. Semiconductor such as Regional Marketing Manager and Business Planning Manager. Now she works for HP as the Planning Manager. With Joyce’s expertise in material and production planning, she is expected to play an important role in defining and operating The Phoebes’ operation and business flows. Joyce has also been a pet lover since she was a little girl. In fact The Phoebe’s is named after Joyce’s beloved 8-year-old cat.. 6.

(14) V. Business Environment Analysis Following the same trend in other developed countries, the pet market in Taiwan is fast growing and gradually moving towards a highly segmented business. Giving the fact that pet owners are willing to spend more and more on their beloved dogs and cats, the upscale customer segment in the pet market is growing exceptionally in Taiwan.. External environment. 政治大 raising a pet has become a trend for modern urban people. 立. With the decreasing birth rate and increasing percentage of the older generation,. ‧ 國. 學. The cost of raising a pet is definitely much lower than raising a child. Compare to the average of NT$5 million spent in a child’s education until he is 24 years old, the cost. ‧. of raising a pet is less than 10% of that amount.. Nat. sit. y. Nowadays, pets have become substitutes of children. From a social standpoint, pets. n. al. er. io. play a significant role in many lonely people’s lives.. i Un. v. The mindset of having pets is also changing; people don’t see dogs or cats as. Ch. engchi. animals, instead, they treat them like humans. Dogs and cats are not requested to fulfill tasks like guarding a house or catching mice anymore. On the contrary, pets are now more expected to provide emotional benefits, like healing, accompanying, and pleasing. Another set of data can explain the situation from a different angle. According to the data retrieved from the Executive Yuan, Taiwan, from 1996 to 2006, the ratio of population of age over 60 in Taiwan had increased from 11% to 13.5%. On the other hand, the ratio of population of age under 5 had shrunk from 7% to 4.8%. The numbers imply not only possible growth of the customer base in the pet business for there are more and more aged customers, but also the needs for having a dog or cat for mental. 7.

(15) substation. 16% 14% 12% 10% 8% 6% 4% 2% 0% 1996. 1997. 1998. 1999. 2000. 2001. 2002. 2003. 2004. 2005. 2006. (%) over 60 (%) 政under 5治大. 立. TABLE 5.1 10-YEAR TREND OF AGE DISTRIBUTION IN TAIWAN.. ‧. ‧ 國. 學. * Source: 2006 Executive Yuan, ROC. Overview of the Pet Market in Taiwan. Nat. sit. y. From the species’ point of view, household pets refer to dogs and cats. In Taiwan,. n. al. er. io. the proportion of pet dogs is much higher than that of pet cats (see Table 1).. Ch. DOG. engchi. Household. i Un. v. CAT. 7,282,350. Population (No. of Pets). 1,141,521 (72%). 439,174 (28%). Household Penetration. 12.4%. 6%. # of Pets Per Household. 1.54. 1.67. TABLE 5.2 PET POPULATION IN TAIWAN Source: 2006 Council of Agriculture, Executive Yuan. If we focus on dogs, in the aspect of regional market distribution, the dog. 8.

(16) population distribution in Taiwan is North: 46%; central: 26%; south: 23%; others 5%.2 The top three cities with the largest number of dogs per household are Taipei county (15% of island wide dog population), Taipei city (13% of island wide dog population), and Taoyuan county (7% of island wide dog population).. Region. Number of Dogs per City/County. Ranking. Ratio. Northern. Keelung City. 23,455. 18. 2%. Northern. Taipei County. 169,238. 1. 15%. Northern. Taipei City. 142,863. 2. 13%. 83,908. 學. 3. 7%. Hsinchu County. 43,345. 10. 4%. Hsinchu City. 19,603. 19. 2%. sit. Household. 37,087. 13. 3%. 78,409. v30,651. 4. 7%. 14. 3%. y. Miaoli County. io. Central. Nat. Northern. ‧. Northern. Taoyuan City. Taichung County. n. al. er. Northern. ‧ 國. Northern. 立. 政治大. 2. Ch. i Un. Central. Taichung City. Central. Changhua County. 65,481. 6. 6%. Central. Chiayi County. 30,318. 15. 3%. Central. Chiayi County. 9,496. 22. 1%. Central. Nantou County. 39,523. 12. 3%. Central. Yunlin Countu. 42,581. 11. 4%. South. Tainan County. 50,276. 9. 4%. South. Tainan City. 24,916. 16. 2%. South. Kaoshiung Country. 70,849. 5. 6%. engchi. Based on a 2006 research by Council of Agriculture, Executive Yuan and Zoology Institute, NTU. 9.

(17) South. Kaoshiung Country. 57,203. 8. 5%. Others. Pingtung County. 62,825. 7. 6%. Others. Yilan County. 12,263. 21. 1%. Others. Hwalian County. 24,868. 17. 2%. Others. Taitung County. 18,395. 20. 2%. Others. Penghu County. 3,968. 23. 0%. Total. 1,141,521. 100%. TABLE 5.3 PET POPULATION DISTRIBUTION. 政治大. Source: 2006 Council of Agriculture, Executive Yuan. 立. ‧ 國. 學. Since dogs are outdoor animals, the facilities and the derived services provided to dogs are much more than those to cats. The annual spending on a dog is NT$8,676 and it. ‧. does not include the costs from first time purchase and the funeral. 40% of the total. Nat. sit. n. al. er. io. etc.3. y. spending is on food, while 30% is on health and 30% on others: clothes, entertainments,. i Un. v. In the global pet accessory market, it is also observed that the pet market is going to. Ch. engchi. be more diversified and service-intensive with time. Products are designed for from puppies to senior dogs, including from simple food, treats, to exclusive pet restaurant. There are schools for obedience training and photography services for pets. Following this trend, lots of designers’ brands, like LV, Coach, and Gucci, have also produced exquisite accessories such as handbags, leashes and clothes.. The analysis of the business environment provided some hints to The Phoebe’s:. 3. The annual spending and category spending ratio are based on a 2006 research from Company A. Company A is the world’s largest dog food and accessory supplier and is kept anonymous due to confidential info. 10.

(18) ♦. The Phoebe’s will provide boarding services to pet dogs only since most of household pets are dogs and the market for dogs is much larger than that for cats.. ♦. The Phoebe’s is going to provide services in Northern Taiwan in its initial stage.. ♦. The Phoebe’s will only focus on serving upscale dog owners.. Total Available Market for The Phoebe’s. 政治大. In 2006, the annual average spending on a household dog is $8,676 in Taiwan, and. 立. the total market size is NT$9.9 billion per year. The figure includes the values of foods,. ‧ 國. 學. clothes, accessories, health and entertainment, but not first time purchase prices and funeral costs. The amount of spending on entertainment and health related areas has. ‧. increased year by year.. y. Nat. io. sit. Again, in the aspect of regional distribution, Northern Taiwan, including Taichung,. n. al. er. accounts for 52% of the overall consumer spending on pet dogs, and the area with the. Ch. i Un. v. highest spending on dogs services (not include foods) is Northern Taiwan.. engchi. Monthly. Ratio of. Spending. Region. (NT$). Spending. Average Spending per dog per month (NT$). Northern. 827. 429,538,594. 52%. Central. 634. 187,879,002. 23%. Southern. 655. 174,267,658. 21%. Others. 565. 33,602,370. 4%. 825,287,625. 100%. Total monthly spending Total annual spending on dogs 11. 9,903,451,500.

(19) Annual spending per dog per year. 8,676. TABLE 5.4 PET MARKET VALUE Source: 2006 Council of Agriculture, Executive Yuan. The followings are the steps to calculate the total available market of pet hotels in Taiwan and of The Phoebe’s:. Step 1. Calculate the fundamental numbers. 政治大. Head Count – Traveling Overseas per Year (a). 立. 8,208,000. Ratio of Adults in People Traveling Overseas (b). 90%. ‧ 國. 學. Average Adult Count per Family (c). ‧. Family Count – Traveling Overseas per Year (d=a*b/c). 2. Nat. y. 3,693,600. n. er. io. al. 12%. sit. Ratio of Families – Raising at Least One Dog (e). i Un. v. Step 2. Obtain the total number of days dogs are away from their owners per year. Ch. engchi. Dog Count – Away from Their Owners per Year (f=e*d) Average Traveling Duration (g). 458,006 10.6. Total Number of Days Dogs Are Away from Their Owners per Year (h=f*g) Step 3. Obtain the total number of boarding days for dogs per year Percentage of Dog-Raising Families Having Traveled and Bought Services from Pet Hotels (i) Total Number of Boarding Days for Dogs per Year in Taiwan (j=h*i). 12. 4,854,868. 30% 1,456,460.

(20) Step 4. Obtain the value of dog hotel market in Taiwan per year Average Pet Hotel Selling Price per Day (k). NT$ 500 NT$ 728,230,176. Value of Dog Hotel Market in Taiwan per Year (l=j*k). Step 5. Obtain the total number of boarding days for dogs in Northern Taiwan per year Ratio of Household Dogs in Northern Taiwan (m). 46%. Total Number of Boarding Days for Dogs in Northern Taiwan 669,972. per Year (n=j*m). 政治大. Step 6. Obtain the total market value of The Phoebe’s. 立. The Phoebe's Target Segment (Top % consumer) (o). 10%. ‧ 國. 學. The Phoebe's Total Loading Days for Available Dogs (p=n*o). ‧. High End Peer Avg Price per Day (q). y. Nat. NT$ 1,300 NT$ 87,096,329. er. io. al. sit. The Total Market Value of the Phoebe’s (r=p*q). 66,997. v. n. TABLE 5.5 TOTAL AVAILABLE MARKET –PET HOTEL IN TAIWAN. Ch. i Un. Source: 2005 Tourism Bureau and Council of Agriculture, Executive Yuan. engchi. It can be concluded that the estimated available market size of The Phoebe’s is NT$ 87,096,329.. 13.

(21) VI. Competitive Analysis Comparing to the situations in other developed countries, offering pet hotels in Taiwan is more of a value-added service attached to other major pet businesses rather than a well-developed individual business sector. Because of its immaturity, pet boarding services right now in Taiwan are mostly run by pet shops or vet clinics. But as a matter of fact, an emerging sector of dedicated professional pet hotels has been observed on this island.. 政治大 There are 2,640 registered pet stores island wide. 50% of them are individual 立. Amateur players with unclear positioning. 4. ‧ 國. 學. stores selling puppies, foods, and accessories, while the other 50% of them are vet clinics providing health checks, vaccine injection, and consulting. Around 70% of them offer. ‧. stay-over services, and are chosen by dog owners for the following reasons:. Nat. y. Convenience of location. sit. ♦. n. al. er. io. Location is the major concern when pet owners are looking for a place to buy. i Un. v. pet foods and accessories, or a veterinary clinic for their beloved pets. ♦. Trust. Ch. engchi. Most pet owners take very good care of their pets as if they were their kids. Very similar to the factors and processes to be considered when choosing babysitters, trust has been a major concern when choosing pet hotels. Vet clinics therefore have inherent advantages over other choices to be handpicked by pet owners. ♦. Emergency handling This is something related to trust, but with more techniques, experiences, and capacity to handle emergencies, especially dog’s health problems that require. 4. The pet store statistics is retrieved from a survey conducted by Company A in 2006. 14.

(22) instant medical treatments and care during boarding. Vet clinics again have inherent advantage to meet this requirement. ♦. Facility and service quality To middle to high end consumers of pet hotels, the facility and service quality matter significantly. Details such as the air conditioning, living spaces, service staff’s knowledge and professionalism are all magnified when choosing pet hotels. Generally speaking, very few pet stores and vet clinics have facilities with good quality for pet boarding services owing to space and profession limitations.. 立. 政治大. Furthermore, none of the players in Taiwan have created any brand images or had a. ‧ 國. 學. clear market positioning compared to matured branded pet hotels in Japan, Singapore, Europe, and USA.. ‧. Dog owners have no knowledge of the uniqueness and advantages when selecting. n. al. er. io. sit. y. Nat. between pet hotels.. Competition Geography. Ch. engchi. i Un. v. Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung, are still the core areas of pet related businesses to enter.. 15.

(23) 政治大. 立. ‧ 國. 學. TABLE 6.1 COMPETITOR DISTRIBUTION BY AREA Source: 2006 research by Company A.. ‧ sit. y. Nat. Competition Categorization. Subsidiaries. al. n. ♦. er. io. Pet hotel business units in Taiwan can be divided into 2 categories:. Ch. engchi. i Un. v. Business units that provide pet boarding services as value-added services attached to their core businesses. The most common players in this category are vet clinics and pet shops. ♦. Professionals Business units that provide pet boarding services as their core businesses. The common players in this category are downtown pet hotels and countryside pet resorts.. To really understand these two categories, the killer features and customer value provided are compared as below.. 16.

(24) Categories. Pick Up Service. Pool for Pets. Pet Grooming Service. Single Room Service with Air Conditioning. Outdoor Exercise. Surveillance Availability. Subsidiary of Pet Shop. Yes. No. Yes. No. No. No. Subsidiary of Vet. No. No. Yes. No. No. No. Downtown Pet Hotel. Yes. Yes. Yes. Yes. No. Yes. Countryside Pet Resort. Yes. Yes. No. Yes. Yes. No. 立. 政治大. TABLE 6.2 KILLER FEATURES OF PET HOTELS IN TAIWAN. y. Fair. n. al. sit. io. Best. Facility Quality Service Quality. Price Advantage. Fair. Good. Fair. Fair. Best. Fair. er. ‧ 國. Medical Attention. Nat. Subsidiary of Pet Shop. Convenience of Location. ‧. Categories. 學. Source: First hand survey data and personal experience.. i n CBest U hengchi. v. Subsidiary of Vet. Good. Downtown Pet Hotel. Good. Good. Good. Best. Fair. Countryside Pet Resort. Fair. Fair. Best. Best. Fair. TABLE 6.3 CUSTOMER VALUE OF PET HOTELS IN TAIWAN Source: First hand survey data and personal experience.. Overseas Peer Benchmark In our observation, there are no players in Taiwan which qualify to be five-star or 17.

(25) even six-star pet hotels. To obtain a role model for The Phoebe’s, benchmarking overseas peers is necessary. We have benchmarked several renowned five-star pet hotels in the US, Singapore, Japan, and Britain, and we found that they have some common elements as listed below: ♦. Real five-star atmospheres From check in counter, to check out process, all software and hardware for customer interfaces present a real five-star feeling and quality, just like any five-star hotels for human beings.. ♦. 政治大. More than trustworthy lodging. 立. Trustworthy lodging no doubt is the essential service those five-star pet hotels. ‧ 國. 學. want to bring to their customers. Actually they want to achieve much more than that; they want to make both the boarding pets and their owners happy as much. ‧. as they can, and they want to do anything possible just to help pets and their. y. Nat. io. Absolute professionalism. n. al. er. ♦. Ch. sit. owners vent out the bad feelings from separation.. i Un. v. With only a glance, you can tell their professionalism. Most of the overseas. engchi. five-star pet hotels have professional crews performing different services; they also have in-depth knowledge of pet care, medical treatment, and even pet import/export regulations. Many of them are members of professional pet care associations, among the associations the most mentioned one is Pet Care Services Association (formerly known as ABKA)5.. 5. The Pet Care Services Association (formerly known as ABKA or American Boarding Kennel Association) is the non-profit trade association for over 3,100 pet care service businesses in the United States and around the world. Only Pet Care Services Association members commit to the Pet Care Services Association Code of Ethics and the Pet Owners' Bill of Rights which assures pet owners that their beloved pets will receive professional, loving care. Pet Care Services Association members offer a variety of services for your pet including boarding, dog daycare, grooming, training, pet transportation, shipping, pet supplies, food sales, etc. 18.

(26) ♦. Overwhelming service offering Besides basic lodging and boarding, they provide value-added services ranging from day camps for exercise, swimming pools, training courses, pet import and export, remote real-time surveillance, puppy selling, grooming and pedicure, pet taxi and ambulance, dog-walking service, pet accessory selling, cremation and columbarium.. ♦. Solid customer relationship management All customer interfaces, such as web portal, reservation system, customer. 政治大. testimonials, and check in/out process, have been well designed and managed.. 立. Many of them even have membership club for increasing the customer loyalty.. ‧ 國. 學. ♦. Often being in chain business. Many overseas five-star pet hotels are in chain hotel business type. It means that. ‧. once if the pet hotel business model has been well established in one location, it. y. Nat. n. er. io. al. sit. will be easy to be replicated to other locations.. Ch. i Un. v. One other important finding is that five-star pet hotels tend to be built in cities with. engchi. heavy-traffic airports, like New York City, Los Angeles, Singapore, and Hong Kong. The same characteristics apply to Taoyuan, where Taoyuan International Airport with climbing air traffic and high hope of cross-strait direct flights is located.. 19.

(27) VII.. Marketing Plan. Market Segmentation The Phoebe’s is targeting the high-end consumer segment with the belief that their pets are not only their best friends but also their beloved children. According to the market survey conducted by Company A in 2006, the pet food market can be segmented into different levels of pet owners, with the so called “Indulgent nutritionist“ being the segment that The Phoebe’s is targeting. In that segment, pets are often being liked more than most humans.. Practical Provider. Basic Food Feeder. Pampering Preparer. Uninvolved Owner. The pet is a best friend or “child” often loved more than most humans. The pet is a likeable family member, but not special. The pet is a pet, often for children. The pet is a companion or “child” on whom to dote. The pet is not more than an animal with a practical purpose (child’s playmate, mousecatching, etc.). n. y. sit er. PET. ROLE OF. io. al. Indulgent Nutritionist. ‧. Although likeable and fun, the pet has a role to play. Nat. The pet is best friend/ “child” to be protected and loved. Healthy Habitualist. 學. Expert Driven Provider. ‧ 國. 立. 政治大. Ch. engchi. i Un. v. TABLE 7.1 PET OWNER SEGMENT Source: Company A.. A typical target consumer figure would be Paris Hilton. “My dog is my family, he is not just a dog, I am willing to do anything to make him happy,” said Hilton. As Paris is a public figure and needs to travel around a lot, there are places that might not be suitable for her dog to come along. In order to relief her pet from separation anxiety; a six-star upscale pet hotel would absolutely be her first choice. Just like Paris, there are many pet owners in Taiwan who treat their pets as their 20.

(28) families. Plus the birth rate of Taiwan is decreasing while the total spending in the pet market is growing at the same time; The Phoebe’s niche is to offer the upscale pet owner the best pet hotel services for their beloved dogs.. The Phoebe’s value proposition. The Phoebe’ Phoebe’s Value Proposition Dog Satisfaction. Distance Compensation. Eat well Sleep well. 立. 政治大. distance Shortest physical. ‧ 國. 100% trust & relief. Shortest mental. Excellent consuming. Owner. experience. 學. Exercise well. Dog. Owner Satisfaction. Sense of social status. distance. ‧. TABLE 7.2 THE PHOEBE’S VALUE PROPOSITION. sit. y. Nat. n. al. er. io. Like every pet boarding service, The Phoebe’s has two layers of customers to. i Un. v. serve; boarding dogs and their owners. Even though decisions of the buying activities are. Ch. engchi. made by dog owners, how their dog will be treated in The Phoebe’s will definitely be taken into account. Despite the traveling-related reasons of dog owners, the separation between owners and their dogs are the bitterest thing to handle during owners’ whole trips, moreover, the separation can even cause dogs’ separation anxiety. That’s why the value proposition of The Phoebe’s will be categorized into three sections: ♦. Dog satisfaction: The Phoebe’s promises to make sure boarding dogs can eat well, sleep well, and exercise well.. 21.

(29) ♦. Owner satisfaction: The reasons why pet owners choose certain dog hotel among numerous choices available may be very complex. The Phoebe’s hopes to be 100% trusted by dog owners with excellent consuming experiences and sense of social status to our target customers.. ♦. Distance compensation: The Phoebe’s exceptionally focuses on developing tools and services to shorten the distances, both mentally and physically, between our boarding dogs and their owners.. Location of The Phoebe’s. 立. 政治大. The location of The Phoebe’s is an essential mean to achieve The Phoebe’s unique. ‧ 國. 學. value proposition. The Phoebe’s will be set up in Taoyuan County by the airport. With this specific location, The Phoebe’s will be facing the most severe competition.. ‧. Based on the data, Taoyuan is the county with the highest amount of pet stores other than. y. Nat. io. sit. Taipei County; it is also one of the cities with highest dog population.. n. al. er. However, despite of the equally big challenge to the opportunity, the location of. Ch. i Un. v. The Phoebe’s can actually carry out many of the ideas of its unique values. Because of. engchi. the location, The Phoebe’s may acquire a larger space than any other location in downtown Taipei with the same amount of budget. The larger the space is; the higher dog satisfaction will be. Another unique value of The Phoebe’s is the distance compensation. Because of the location is nearby the air port with a very convenient highway traffic network, The Phoebe’s is able to design various shuttle services not only to pick up dogs for check-in, but also to bring dogs to the arrival hall to greet their owners when they are back. The shuttle service is aimed at shrinking the physical distance between dogs and their owners. The Phoebe’s is taking the location advantage to attract all customers located in the 22.

(30) area northern of Taichung since they have to travel through the International Airport in Taoyuan, Taiwan.. Product & Price Also, with the location advantage, The Phoebe’s will lease 200 pins of land with a 3-floor building of 100 pins floor size to lodge at most 20 large dogs and 30 small to medium dogs. The land allocation and floor design of The Phoebe’s are as below: ♦. 1st floor. 立. 政治大. There will be 100 pins of out door grass yard with dog sports and training. ‧ 國. 學. utilities such as stairs, tubes, swimming pools, etc, and 100 pins of indoor space with reception and check-in counters, a kitchen, SPA and herbal treatment, and. ‧. indoor training courses.. io. y. sit. 2nd floor. Nat. ♦. n. al. er. There will be 30 rooms for small & medium dogs and a medical center on the 2nd floor of the hotel building. ♦. 3rd floor. Ch. engchi. i Un. v. There will be 20 rooms for big dogs, an office, and an MIS control room on the 3rd floor of the hotel building.. The services and the prices The Phoebe’s will be offering are listed in the table below:. 23.

(31) Service Basic Accommodation ( Including Food Supply ). Small/Medium. Large. NT$1,200. NT$1,500. "Never Go Away" Program. Free Daily Health Check Up. Free. Daily Individual Play Time. Free. Daily Group Play Time. Free. Swimming Class (summer). Free. "Healthy Baby" Program. "See You in the Airport" Program. Free. "Happy Day" Album. Free Single Trip. NT$1,000. Round Trip. NT$1,800. Pet Limo. SPA & Herbal Treatment. 立. NT$300. NT$500. Facial/Skin Care/Massage. NT$500. NT$800. Essential ( 2 Week ). NT$3,000. Advanced ( 1 Month ). NT$5,000. 學. ‧ 國. Obedience Training. 政治大. Grooming/Jacuzzi/Pedicure. 360 Degree Health Check. y. Nat. Basic Boarding. io. sit. ♦. ‧. TABLE 7.3 SERVICES & PRICES. NT$2,000. n. al. er. The best dog foods and accessories will be offered boarding dogs in The. Ch. i Un. v. Phoebe’s. Each dog has its own single comfortable bedroom with isolated air. engchi. conditioning. A designated professional dog-sitter will be assigned to each dog to take care of that dog during its entire boarding period. All these efforts help to ensure that boarding dogs can eat well and sleep well. The price of the basic boarding service is NT$1,200 for a small to medium dog, and NT$1,500 for a large dog. ♦. “Never Go Away” Program Owners can get our “Never Go Away” keep-in-touch package for free. The package includes real-time online video surveillance and call-in service. Owners can log in to The Phoebe’s web portal anytime to get a real time video 24.

(32) stream of their beloved pets that may be eating delicious foods, sleeping on soft pads in their single bed rooms, or running over the big grass yard with their friends. Selected video clips can also be sent through public cell phone networks to owners’ cell phones. If owners want their beloved dogs to hear their voices, simply call The Phoebe’s during lobby hours and we’ll bring their dogs to the phone. Both real-time surveillance and the call-in service are free of charge and they can effectively ease the pain caused by separation and shorten the mental. 政治大. distance between dogs and their owners.. 立. The “Never Go Away” program is free of charge.. ‧ 國. 學. ♦. “Healthy Baby” Program. The “Healthy Baby” program includes daily health check up, daily individual. ‧. play time, daily group play time, and swimming classes that are only provided in. io. sit. y. Nat. summer.. n. al. er. The daily health check up will be conducted by The Phoebe’s contract on-site. Ch. i Un. v. vets, and during the daily individual and group play time, dogs will be. engchi. accompanied by The Phoebe’s on-site trainers. The “Healthy Baby” program will ensure beloved dogs enjoy every healthy and joyful day in The Phoebe’s, and the “Healthy Baby” program is free of charge. ♦. “See You in the Airport” Program Once owners buy this service, their beloved dogs will appear in the arrival hall prior to their arrivals. This service drastically shortens the physical distance between owners and their dogs. Owner and their dogs will be able to see each other right away at the airport, and The Phoebe’s even allow the check-out process to be efficiently completed at the 25.

(33) airport. After the check-out process is done, owners can just go home with their beloved dogs without waiting. The “See You in the Airport” program is free of charge. ♦. “Happy Day” Album With the idea like human beings love to keep sweet memory by taking pictures during their trips, The Phoebe’s wants to create an atmosphere, so that when owners are abroad for their pleasant trips, their pets can have their vacations as well in The Phoebe’s.. 政治大. With this initiative, The Phoebe’s offers the “Happy Day” album for free.. 立. Professional photographers will catch every happy moment of boarding dogs in. ‧ 國. 學. every corner of The Phoebe’s. An exquisite “Happy Day” album will be prepared and given to owners during their check-out process. The album not. ‧. only enhances the consuming satisfaction but also presents a solid evidence of. y. Nat. n. al. er. Pet Limo. io. ♦. sit. how well dogs have been taken care of in The Phoebe’s.. Ch. i Un. v. With the advantage of The Phoebe’s location, it is intuitive for The Phoebe’s to. engchi. offer limo service. The Phoebe’s “Pet Limo” service includes single trip (from homes to The Phoebe’s or the opposite) and round trip, for not only dogs but also for owners. Price for the single trip Pet Limo service is NT$1,000, and NT$1,800 for the round trip service. ♦. SPA & Herbal Treatment The Phoebe’s provides exquisite SPA and herbal treatment to boarding dogs to ease their tension in their owners’ absence. The service will be performed by professions using upscale branding accessories. The SPA and herbal treatment 26.

(34) service includes 2 packages, the Grooming/Jacuzzi/Pedicure package, which is NT$300 for one small to medium dog and NT$500 for one large dog, and the Facial/Skin Care/Massage package, which is NT$500 for one small to medium dog and NT$800 for one large dog. ♦. Obedience Training Besides regular free-of-charge exercise for boarding dogs, The Phoebe’s also provides educational obedience courses. The training program will be conducted by certified partner coaches and the program is separated into the Essential. 政治大. Program and the Advanced Program. For the sake of completion, dogs will be. 立. required to stay in The Phoebe’s for at least 2 weeks for the Essential Program,. ‧ 國. 學. and 1 month for the Advanced Program.. Price for the Essential Program is NT$3,000 and NT$5,000 for the Advanced. y. Nat. 360 Degree Health Check. io. sit. ♦. ‧. Program.. n. al. er. The Phoebe’s also provides the “360 Degree Health Check” program. Unlike. Ch. i Un. v. other similar products offered by vet clinics, The Phoebe’s can do a lot more. engchi. because of accompanying for longer terms and close observation on boarding dogs. Owners who purchase this service will receive a 360 degree health report of their dogs with description of dogs’ physical statuses, mental statuses, and customized recommendations from our professional vets for dogs’ even healthier future lives.. With all these unique value propositions and value-added services, The Phoebe’s will be a real six-star pet hotel standing out from the competition on the island. 27.

(35) Never Go Away. Daily Health Check up. Play Time. Swimming Class. See You in the Airport. Happy Day Album. The Phoebe’s NT$ 1,500 Professional NT$ 1,000 Pet Shop NT$ 500 Vet NT$ 300. 政治大. TABLE 7.4 THE PHOEBE’S VALUE DIFFERENTIATION. 立. Promotion. ‧ 國. 學. In the first year of The Phoebe’s foundation, the major slogan for marketing will be. ‧. “The Phoebe’s; the shortest distance between you and your dog”. The slogan is set to. y. sit. io. er. vision.. Nat. highlight the unique customer value of The Phoebe’s, and also to imply our company. al. The major focus in the first stage of The Phoebe’s marketing promotion is mass. n. iv n C marketing communication. Since ThehPhoebe’s is positioning e n g c h i U itself as the first branded pet hotel in the market in Taiwan, the brand awareness establishment will be the key to success. The tools for mass marketing communication will be: ♦. E-Marketing E-marketing channels of The Phoebe’s include a well-designed web portal, keyword bidding with major search engines such as Goggle and Yahoo, community websites, blogs, website sponsor links, and sending EDMs with the mailing list database obtained from online media.. ♦. Cross Brand Event The Phoebe’s will be working closely with high class pet food and accessories 28.

(36) suppliers by issuing coupons for free SPA service or discount for lodging. The Phoebe’s will also aggressively take part in the pet owner gathering events to build up brand awareness among pet owners. In the meantime, The Phoebe’s will also co-work with online travel agencies with luxury travel routes and provide coupons if the travelers’ dogs need to be taken care of when their owners are away from home. ♦. Celebrity Promotion Campaign To really touch our target audience, The Phoebe’s plans to hold one major. 政治大. celebrity promotion campaign in the first year. The purpose of the campaign is. 立. to promote The Phoebe’s six-star brand image and to create a sense of belonging. ‧ 國. 學. to an upscale consuming group of pet hotel. The deliverables of this campaign are to increase brand exposure, brand awareness and recognition, and the initial. ‧. customer base.. y. Nat. io. sit. The preliminary celebrity candidates are Tao Ching Ying and Rosemary Ho. Tao. n. al. er. Ching Ying is a famous singer, writer, and TV show host in Taiwan; she has. Ch. i Un. v. been a dog lover for a long time and owns a golden retriever dog. Rosemary Ho. engchi. was the former President of HP Taiwan; she is famous for frequent traveling, and she loves cats and dogs. The Phoebe’s is going to invite the chosen celebrity to enjoy The Phoebes’ service for free and ask them to share their experience via media.. Membership The Phoebe’s will establish its membership system and loyalty program which are similar to airlines’ loyalty club programs for their frequent travelers. The membership program provides discount as well as promotional season service for members. Since the 29.

(37) pet hotel is to ensure pets’ safety and health, The Phoebe’s is targeting to build a tight relationship with pet owners with relationship, so that owners can rely on us and make sure their beloved pets are in good hands.. Other than marketing communication events and membership programs, public relation will be another main focus for The Phoebe’s marketing efforts. The Phoebe’s will actively contact pet related magazines or other media for interview opportunities. Also The Phoebe will attend all major pet and traveling related exhibitions to introduce its brand name to the market.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 30. i Un. v.

(38) VIII.. Operational Plan. Business Process The business processes in The Phoebe’s are categorized into 5 groups by their functional meanings: ♦. Core Processes The processes that can generate revenue for The Phoebe’s, including the basic lodging & accommodation process, other value-added service processes (refer to Table 7.3), and the Pet Limo process.. ♦. Supporting Processes. 立. 政治大. The processes that can support the Core Processes, including the human. ‧ 國. 學. resources process, the selling process, the finance process, the facility maintenance process, and the logistics processes such as procurement,. ‧. contracting, and warehousing.. y. Nat. Management Processes. io. sit. ♦. n. al. er. The processes that are beyond the hotel daily operations but crucial to The. Ch. i Un. v. Phoebe’s, including the hotel management process, the product development. engchi. process, the quality system, and the marketing management process. ♦. Customer’s Interface Processes The processes that are in the first line of the relationship between The Phoebe’s and its customers, including the web portal operation process, the phone inquiry process, the reservation process, and the check in/out process.. ♦. Customer’s Loyalty Processes The processes that manage customers’ loyalty to The Phoebe’s; including the Customer Relationship Management processes, the customized service process, and the Loyal Fan Club operation process. 31.

(39) Management Processes Hotel management Development Quality system Marketing. Customer’ Customer’s Interface. Customer’ Customer’s Loyalty. Core Processes. Web operation. Accommodation. CRM. Phone inquiry. Value-added services. Customized Service. Reservation. Pet Limo. Loyal fan club. Check-in/out. Finance. Sale. Facility. 學. Logistics. Supporting Processes. ‧. ‧ 國. 立 HR. 政治大. sit. n. al. er. io. Key Success Factors. y. Nat. TABLE 8.1 THE PHOEBE’S BUSINESS PROCESSES. i Un. v. The Phoebe’s can be extraordinarily successful only if it is equipped with all the key success factors listed below: ♦. Ch. engchi. High quality, cost effectiveness and stable supply Two major types of items The Phoebe’s supplies are dog food and dog accessories. A strong relationship needs to be built between The Phoebe’s and the vendors which provide the highest quality dog food and accessories that fit the brand image and quality insistence of The Phoebe’s.. ♦. Pioneer Branding Advantage Branding is very important to The Phoebe’s since it positions itself as the first branded pet hotel island wide. Once the brand name is being established, the pioneer branding advantage will be a huge help for The Phoebe’s future success. 32.

(40) ♦. Target Audience Accessibility The Phoebe’s is targeting the top 10% of customers for the area northern of Taichung at the initial stage. However, how to effectively and efficiently reach the target audience will be a very important factor with influence on whether The Phoebe’s can successfully penetrate into the target market or not.. ♦. Market Differentiation Unique market positioning comes with unique value differentiation. The unique value proposition and the value-added service programs of The Phoebe’s will. 政治大. help it stand out from the competition. Core Competence. 立. 學. ‧ 國. ♦. In order to take the market leading position and make a sustainable success, The Phoebe’s must be equipped with the core competence that can not be replicated. ‧. easily by competitors. Therefore, professionalism and knowledge with. y. Nat. io. sit. certificates on how to take care of dogs and how to run a hotel will be the. n. al. er. key factors to stand out from the competitive companies which are mostly being. Ch. i Un. v. operated by non professionals. From the technology point of view, the pet. engchi. surveillance system using the video streaming and broadcasting technologies is the core technology that should be obtained and continuously enhanced in The Phoebe’s. Lastly, The Phoebe’s will need to focus on the customer relationship management just like any other upscale hotels in order to meet their customer requirements and to improve customers’ satisfaction. Development Roadmap To make The Phoebe’s a company with continuous success; a development roadmap has been designed as the cooperation’s five-year objective:. 33.

(41) Year 1 ~ 2. Year 3 ~ 4. Year 5 and beyond. Maximizing brand awareness. Branding. CIS. Business Expansion. The Phoebe's flagship for Northern Taiwan. 3 franchise hotels for Northern, Middle, and Southern Taiwan. One branch hotel in Shanghai, one branch hotel in Beijing. Operation. Seting up SOP Optimize Business Process. ISO9001-2000 Certified. Overseas Operation Model. Increasing brand equity. Total Capital NT$18M OM (10M) & OPM (8M). Capital Plan. Kick-off IPO Process. 政治大. TABLE 8.2 THE PHOEBE’S DEVELOPMENT ROADMAP. 立. ‧ 國. 學. The development road map focuses on the four areas, including Branding, Business Expansion, Operation, and Capital Plan.. ‧. With the initial capital expenditure of NT$18 million, The Phoebe’s management. Nat. sit. n. al. er. io. investors.. y. team will invest NT$10 million while another NT$8 million will be obtained from other. i Un. v. For the Branding roadmap, a strong CIS has to be established in the first two years. Ch. engchi. of The Phoebe’s operation. An appropriate CIS will be a crucial factor for the future success on the establishment of the franchise system in year 3 and 4. With the franchise hotels being launched, the brand awareness of The Phoebe’s can be maximized island-wide and brand equity of The Phoebe’s can be quickly accumulated. To ensure that the franchise system can be successfully built up and sustained, a SOP6 for each defined business process needs to be set up in order to optimized the operation of The Phoebe’s and ensure the top quality services will be delivered to customers. By setting up SOP and successfully establishing the franchised system, The. 6. SOP: Standard Operation Procedure 34.

(42) Phoebe’s is targeting to get the ISO qualification by year 3 and 4. By year 5 onwards, The Phoebe’s will try to open up overseas market and establish branch hotels in two major cities in China, Shanghai and Beijing. With its booming trend of overseas traveling, China will be the first target overseas market for The Phoebe’s once the operation platform is established and operated in home market, Taiwan. With the extra capital demand comes the planned overseas expansion, The Phoebe’s will start the IPO process in year 5, and plans to go IPO in year 7.. 政治大. Terms & Conditions. 立. Legal liability must be managed with extra attention in the pet hotel business.. ‧ 國. 學. Before checking in The Phoebe’s, owners should be aware of and follow the terms and conditions in order to assure that both side’s benefits are being well protected.. The. ‧. followings are the terms and conditions which will be posted on The Phoebe’s web portal. Nat. sit. n. al. er. All vaccinations should be completed 4 weeks prior to boarding. Please bring. io. 1.. y. and delivered to pet owners before they make reservations.. i Un. v. in the certification upon arrival. Pet without vaccinations certification will be rejected for lodging. 2.. Ch. engchi. All pets brought to us for boarding must not have a contagious disease or have been exposed to a contagious disease within the past month.. 3.. Pets that have physical impairments due to age or health conditions may not be accepted for boarding, please discuss your pets' difficulties with us prior to making your reservation.. 4.. The pet owner must provide us with any necessary medications for conditions being treated.. 35.

(43) 5.. All pets must be parasite free and have a clean, brush able, hair coat; any necessary treatments will be provided at a fee determined by your pet's condition. Pets under the age of 4 months may not be accepted for boarding unless very specific criteria are met. Please ask.. 立. 政治大. 學 ‧. ‧ 國 io. sit. y. Nat. n. al. er. 6.. Ch. engchi. 36. i Un. v.

(44) IX. Financial Plan Pro Forma 5-year Income Statement Two most important factors taken into account in the calculation of The Phoebe’s 5-year income statement are average stay period (days per dog per stay) and the room utilization rate: ♦. Average stay period According to the 2007 data retrieved from the Tourism Bureau, the average length of ROC people’s overseas travel is 10.6 days; the number is adopted in. 政治大. The Phoebe’s revenue calculation model. ♦. 立. Utilization rate. ‧ 國. 學. The room utilization rate is the commonly-used determinant for hotel revenue estimation. Conservative room utilization rates have been adopted to calculate. ‧. The Phoebe’s revenue estimation: average 40% for Year 1, 60% for Year 2, 70%. Nat. sit. n. al. er. Cost of goods sold. io. ♦. y. for Year 3, 75% for Year 4, and 80% for Year 5.. i Un. v. Dog food and accessories dominate more than 90% of total cost of good sold.. Ch. engchi. The cost estimation is obtained mainly from the survey of fair market prices.♦. General and admin expenses Utility, rents, and HR expenses are the three major categories and share 22%, 30%, and 48% of total general and admin expense, respectively.. The Phoebe’s will have its breakeven point in the 2nd year of operation.. 37.

(45) Pro Forma 5-Year Income Statement Enter data in thousands of NTD Year 1 2009 Revenue Total Cost of Goods Sold. Year 2 2010. Year 3 2011. Year 4 2012. Year 5 2013. 10,538 720. 15,807 1,080. 18,441 1,260. 19,758 1,350. 21,076 1,440. Gross Margin Marketing Expenses General and Admin Expenses. 9,818 1,200 8,040. 14,727 1,200 8,040. 17,181 1,200 8,040. 18,408 1,200 8,040. 19,636 1,200 8,040. Total Operating Expenses. 9,240. 9,240. 9,240. 9,240. 9,240. Depreciation Expense (5-year Straight Line). 2,160. 2,160. 2,160. 2,160. 2,160. Operating Profit Other Income (Expenses) Interest Income Interest Expense. (1,582). 3,327. 5,781. 7,008. 8,236. 222 0. 305 0. 318 0. 560 0. Pre-Tax Income. (1,406). 3,549. 6,086. 7,326. 8,795. 822. 1,435. 1,742. 2,049. 2,727. 4,651. 5,584. 6,746. 0 0. 0 0. 0 0. 0 0. 176 0. 立. (1,406) 0 0. TABLE 9.1 PRO FORMA 5-YEAR INCOME STATEMENT. Nat. sit. y. ‧. Preferred Dividends Common Dividends. 0. 學. Net Income. ‧ 國. Income Tax. 政治大. Pro Forma 5-Year Income Statement 2010. n. al. 2011. 25,000 20,000 15,000. Ch. engchi. 2012. er. io. 2009. i Un. 2013. v. (K NTD). 10,000 5,000 0 (5,000) (10,000) (15,000) (20,000) Revenue. Other Income. Cost of Goods Sold. Sales & Marketing Expenses. G&A Expenses. Depreciation, Taxes, and Interest Expenses. Net Income. TABLE 9.2 PRO FORMA 5-YEAR INCOME STATEMENT CHART 38.

(46) Pro Forma 5-year Balance Sheet ♦. Marketable securities In Year 3, The Phoebe’s plans to start to purchase and maintain certain level of blue chip stocks or government bonds.. ♦. Account Receivable Customers are only allowed to pay by cash or credit card. The Phoebe’s would have no account receivable.. ♦. Inventory. 政治大. The Phoebe’s holds 2 month rolling stock for supply. Long-term Assets. 立. 學. ‧ 國. ♦. The major items of long-term assets hold by The Phoebe’s are facilities, equipments, and a car for “See You in the Airport” and Pet Limo service. The. ‧. long term assets are taking 5-year straight line depreciation.. y. Nat. io. The Phoebe’s holds no long-term liability.. al. n. ♦. Retained earnings. Ch. engchi. sit. Long-term Liability. er. ♦. i Un. v. The Phoebe’s does not plan to give any dividend in the first 5 years.. 39.

(47) Pro Forma 5-Year Balance Sheet Enter data in thousands of NTD Day 1. Year 1 2009. Year 2 2010. Year 3 2011. Year 4 2012. Year 5 2013. Asset Cash and Cash Equivalents Marketable Secutiries Account Receivable Inventory Other Current Asset Total Current Asset Net Facility & Equipment Other Long-term Asset Total Long-term Asset. 5,880 0 0 120 1,200 7,200 10,000 800 10,800. 7,414 0 0 120 600 8,134 8,000 640 8,640. 10,153 3,000 0 180 600 13,933 6,000 480 6,480. 10,592 10,000 0 210 600 21,402 4,000 320 4,320. 18,651 10,000 0 225 600 29,476 2,000 160 2,160. 8,871 9,000 0 240 600 18,711 20,000 0 20,000. Total Asset. 18,000. 16,774. 20,413. 25,722. 31,636. 38,711. 0 0 0 0 0. 180 0 0 0 0. 270 822 0 0 0. 315 1,435 0 0 0. 338 1,742 0 0 0. 360 2,049 0 0 0. 180. 1,092. 1,750. 2,080. 2,409. 0 18,000 5,972. 0 18,000 11,556. 0 18,000 18,302. Liabilities Account Payable Taxes Payable Other Current Liabilities Long-term Debt Other Long-term Debt. 立. Total Shareholder's Equity. 0 18,000. 0 18,000 (1,406). 0 18,000 1,322. 18,000. 16,594. 19,322. 23,972. 29,556. 36,302. 18,000. 16,774. 20,413. 25,722. 31,636. 38,711. ‧. Total Liabilities & Shareholder's Equity. 0. 學. Shareholder's Equity Preferred Stock Common Surplus Retained Earnings. ‧ 國. Total Liabilities. 政治大. al. 2010. 2011. n. 40,000. sit. io. 50,000. Pro Forma 5-Year Balance Sheet. Ch. 30,000. engchi. 2012. er. Nat 2009. y. TABLE 9.3 PRO FORMA 5-YEAR BALANCE SHEET. i Un. 2013. v. (K NTD). 20,000 10,000 0 (10,000) (20,000) (30,000) (40,000) (50,000) Total Current Assets. Net Facility & Equipment. Total Current Liabilities. Shareholder's Equity. Other Long-term Assets. TABLE 9.4 PRO FORMA 5-YEAR BALANCE SHEET CHART. 40.

(48) Pro Forma 5-year Cash Flow The Phoebes holds conservative finance operation guidelines. Positive cash inflow will be generated in first consecutive 4 years. A negative cash flow will occur in year 5 for overseas hotel branch expansion.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 41. i Un. v.

(49) Pro Forma 5-Year Cash Flow Enter data in thousands of NTD Year 1 2009 Cash Flow from Operating Activities Net Income Depreciation. Year 2 2010. (1,406) 2,160. Year 3 2011. 2,727 2,160. Year 4 2012. 4,651 2,160. Year 5 2013. 5,584 2,160. 6,746 2,160. Net Change in Asset & Liabilities Inventory Other Current Asset Account Payable Tax Payable. 0 600 180 0. (60) 0 90 822. (30) 0 45 614. (15) 0 23 307. (15) 0 23 307. Net Cash Provided by Operating Activities. 780. 852. 629. 314. 315. Cash Flow from Investing Activities Capital expenditures Purchase of security Proceeds from sale of security Net Cash Used by Investing Activities. 0 (7,000) 0. 0 0 0. (20,000) 0 1,000. 0. (3,000). (7,000). 0. (19,000). 政治大 0. 0. 0. 0. 0. 0. 0. 0. 439. 8,058. (9,779). 10,592. 18,651. 18,650. 8,872. Net Cash Used by Financial Activities Net Increase (Decrease) Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of the Year. 0. 0. 1,534. 2,739. 5,880. 7,414. 10,153. Cash and Cash Equivalents at End of the Year. 7,414. 10,153. 10,592. 20,000. sit. 2011 2012 a l 2010 iv n Ch engchi U. n. 25,000. Pro Forma 5-Year Cash Flow. er. io 2009. y. Nat. TABLE 9.5 PRO FORMA 5-YEAR CASH FLOW. ‧. ‧ 國. 0 (3,000) 0. 學. 立. Cash Flow from Financing Activities Dividends paid to shareholders. 0 0 0. 15,000. (K NTD). 10,000 5,000 0 (5,000) (10,000) (15,000) (20,000) (25,000) Net Income. Depreciation. Net Cash Provided by Operating Activities. Investing Activities. Cash and Cash Equivalents at End of the Year. Accumulated Free Cash Flow. TABLE 9.6 PRO FORMA 5-YEAR CASH FLOW CHART 42. 2013.

(50) Key Financial Figures Projection 2009. 2010. 2011. 2012. 2013. Liquidity Current Ratio Quick Ratio. 4519% 4452%. 1276% 1260%. 1223% 1211%. 1417% 1407%. 777% 767%. Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin. 93% -15% -13%. 93% 21% 17%. 93% 31% 25%. 93% 35% 28%. 93% 39% 32%. Activity Inventory Turnover Total Asset Turnover. 6.0 0.63. 6.0 0.77. 6.0 0.72. 6.0 0.62. 6.0 0.54. Shareholder Ratio EPS ROA ROE. -0.78 -8% -8%. 3.10 18% 19%. 3.75 17% 19%. 立. 政治 1.52 大 2.58 13% 14%. 18% 19%. ‧ 國. 學. TABLE 9.7 PRO FORMA 5-YEAR KEY FINANCIAL FIGURES. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 43. i Un. v.

(51) Appendix 1. Luxury dog accessories for upscale pet shopper. LV Dog Collar. 立. LV Dog Carrier. 政治大. ‧ 國. 學. Gucci Dog Backpack. ‧. n. al. er. io. sit. y. Nat. Coach Dog Sweater. Ch. engchi. 44. i Un. v.

(52) Gucci Dog Pendant. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 45. i Un. v.

(53) Appendix 2. Two major categories of pet hotels in Taiwan Professionals ♦. Downtown Pet Hotel http://www.petsdreampark.com/tw/services/boarding.htm. 立. 政治大. 學. Nat. sit. y. Countryside Pet Resort. io. http://www.weimaraner.com.tw/index-chinese-hotel.htm. n. al. er. ♦. ‧. ‧ 國. . Ch. engchi. 46. i Un. v.

(54) Subsidiaries ♦. Vet Clinic http://www.vet.com.tw/news/new_96112201.htm. 立. 政治大. 學 y. n. al. Ch. engchi. 47. sit. io. http://www.doggy-house.com.tw/doggy3web/. er. Pet Store. Nat. ♦. ‧. ‧ 國. . i Un. v.

(55) Appendix 3. Two examples of overseas five-star pet hotels ♦. United States: Petsmart PetsHotel http://petshotel.petsmart.com/index.shtml. 政治大. 立. ‧. ‧ 國. 學 y. Nat. io. http://www.pethotel.com.sg/about_us.htm. n. al. Ch. engchi. 48. sit. Singapore: The Pet Hotel. er. ♦. i Un. v.

(56) Appendix 4. The location of The Phoebe’s. 立. 政治大. ‧. ‧ 國. 學. Nat. n. al. er. io. sit. y. The red balloon indicates where the Taoyuan International Airport is located.. Ch. engchi. 49. i Un. v.

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