The Dog Marketing Blog

Packaged Facts recently released the 3rd edition of its Pet Care Services in the US report. I haven’t seen any online summaries of the report yet, but I could glean a few insights from the table of contents available online.  Total expenditures on pet care services in 2008 reached $23 Billion, hitting a 10 year high. Veterinary services are the fastest growing sector within pet services, with the increase in pet obesity with its health consequences as well as increasing numbers of geriatric pets helping to fuel this growth.  The number of households owning cats and dogs also continues to increase.

The report also covers changes in the structure of the pet services industry, increased corporate presence, more workers, and the growth of franchising.  Details about expenditures by service type, pet owner demographics and speculation about the  impact of the recession on spending are also included in the full report, which is available in a variety of formats on the Packaged Facts site.

Via a referral from the Pet Biz Helper on Twitter, I discovered an article on the Small Business Trends site regarding pet-related franchises.  The article quoted statistics from the American Pet Products Association regarding the strength and growth of the pet industry and then listed a number of “young” pet franchises. Most were in the pet care services area, including boarding/daycare, grooming, photography, food delivery and waste removal.  One I found particularly interesting was Interquest Detection Canines, which provides canine scent detection services to schools and other organizations.  It appears that one of the things you purchase from the franchisor are the trained dogs.

The realization that this industry is recession-resistant has attracted attention from enterprising business people who are offering these franchise opportunities. Most pet businesses sectors, with the exception of pet supply retailers, are dominated by small businesses. The success of some services, like grooming, can be highly dependent on an individual person’s skills and personality, which to me seem like they would be difficult to standardize in a franchise model.  Others, like pet food vending and waste removal, may benefit from the franchise approach. It will be interesting to watch this trend as it develops.

Primo Pad crate pads

Primo Pads was a vendor at the Ann Arbor Kennel Club shows July 4th weekend, so I stopped by to purchase a pad for one of my dogs and exchange one that had been chewed.  I decided to ask the business owner, Gary Berding, how he got into the business of making these durable, high density foam crate pads.  It was quite a tale! After being hit with a severe case of blood poisoning which landed him out of commission for nearly a year, he found himself virtually penniless. While visiting family, he went to a flea market and noticed the busiest booth in the place was selling foam padding. The sellers were the parents of the owner of a foam manufacturing plant who were helping him unload excess product. The material was waterproof,  non-toxic, and high density and was produced in large sheets. Within a couple weeks, Gary had a warehouse full of foam and needed to find customers. Initially he sold the foam for various athletic and household uses. Someone from a local kennel club happened to see his booth at a sports show suggested the foam would be great for dog beds and arranged to get Gary a booth at their show.  The  booth sold out twice the first day and he’s never looked back, focusing exclusively on the dog owner market since that time.

Primo Pads focuses on customer service, offers a money-back guarantee, and stays attentive to customer comments to keep  improving the products.  Upgrades include the addition of a heat sealed tough vinyl fabric covering and standardizing density so all mats are suitable for heavy dogs. Currently marketing efforts include booths at dog shows, a tri-fold b/w brochure, a website and word of mouth.  Pads are sized for all common crate sizes and custom sizes are available by special order.

I just finished reading Pets in America by historian Katherine C. Grier, published in hard cover in 2006 and paperback in 2007.  Although I found it a bit dry in places, overall it is a fascinating account of the subject. The book includes a tremendous amount of information about the marketing of pets, pet products, and retailing of all things related to pets.   Highly recommended for anyone with an interest in the topic, for a longer review I’ll refer you to Alida Baker’s in the New York Times.

I recently encountered an online dog supplies company called Oh My Dog Supplies on Twitter.  Since following them, I’ve been impressed by their use of social media.  I checked out the website, which features an interesting collection of  premium quality dog products with a guarantee that you won’t find any of their items at a pet superstore.  They sent me a direct message on Twitter inviting me to their Facebook site, then from Facebook alerted me to gender-segregated Manly and Sexy dog photo contests which even offer prizes on top of your bragging rights!  Since I’m pretty set in my ways and dog purchase habits, I think they’ve done a good job getting me this engaged. Time will tell if I convert to a customer . . .

Retailwire reported on research regarding pet category retail spending before and during the current recession.  Pre-recession research showed that pet spending was less likely to suffer during a econonmic downturn than spending on groceries, household and luxury goods.  However, data on actual spending in the fourth quarter of 2008 showed that pet owners shifted their shopping trips so that they were buying more of their pet supplies at mass marketers and dollar stores rather than grocery and pet specialty retailers.  The story concludes with a warning that retailers may be able to count on pet owners to keep purchasing pet supplies, but they cannot take their loyalty and spending levels for granted.

Petfood Industry News published an article about the increasing use of celebrities in dog food and product marketing.  Rachel Ray collaborated with Dad’s to create a  pet food  line called Nutrish, Cesar Milan has a relationship with Petco, Martha Stewart and Purina and Ellen Degeneres’ relationship with Halo foods are all detailed in the discussion.  For manufacturers using celebrity endorsers, there is always a risk/reward analysis to be made. A popular celebrity will raise awareness, but they must be seen as credible endorsers – not quite as much an issue with pets than say a car brand, and the manufacturer always runs the risk of celebrity controversies which can damage their brand as well.  In the case of celebrities launching products under their own label, a manufacturer can benefit through the additional production, but relies on the celebrity to do effective marketing to support  demand.

Photo by Drs. Foster and Smith

Can’t resist some shameless self promotion.  I recently got word that a dog I bred, Woodrow, will be in the fall Drs Foster & Smith dog supplies catalog. Woodrow’s owner, Doug Nartker, told me a dog trainer in the area had suggested Woodrow as a potential model.  Woodrow and the company are located in Northern Wisconsin, so location is everything!  Doug sent me the photos that will appear, showing his handsome tricolor Bull Terrier sporting an oatmeal colored dog sweater.

I went down to Knoxville with a couple of my siblings recently to visit my Mom. While we were there we visited the local Food City to do some shopping and my sister signed up for a shopper card to get a discount on her purchase. While checking out I noticed that there was an application for a Pet Club sitting by the checkout as well.  Turns out that Food City offers Baby, Kid, Wine and Pet clubs which allow the store to target offers at these specific shopper groups.  Their website gives few details, although it does promise a sweepstakes soon. I’ve got a frequent shopper card from PetSmart, but this is the only other time I’ve seen a shopper loyalty card aimed at pet owners. The application allows you to register up to three pets and indicate their gender and date of birth.  I notice there’s no place to indicate the pet’s species. Not sure if that’s an oversight or if they plan to infer species from the pet product purchases that show up on the ValuCard record for that customer, as they ask for the customer’s ValuCard number on the Pet Club application.

NPR’s  Fresh Air this week featured an interview with Michael Schaffer, author of One Nation Under Dog, a book about consumer dog culture seen through the eyes of a journalist and first time dog owner.  At this point I’ve listened to the interview and just started reading the book, but it chronicles the decision of Michael and his wife to get a dog, why they chose to rescue a dog and their selection process.  As life with their dog Murphy progresses, they become more and more aware of the vast array of products and services available to dog owners. Michael examines their choices, and explores the expanding world of pet products and marketing throughout the book, including a visit to the American Pet Products Association convention.   I expect I’ll find more Dog Marketing fodder as I get into the book – stay tuned.