Australian Companion Animal Council

After losing to Donald Trump in the 2016 United States Presidential Election, Mrs. Hillary Clinton has decided to invest her time and money into something close to her heart. After much consultation, she has decided to move to the Southern Australian region of Victoria for a siesta after the rigors of politics. She has deliberately chosen Australia, a country that is renowned for pet ownership; with statistics showing that majority of Australians enjoy the company of pets. Mrs. Clinton is a well-publicized pet lover, with her family owning at least four dogs.
Since Mrs. Clinton has chosen this particular corner of the globe, she has identified Marketing Consultation Inc., a leading marketing research firm based in Australia, to conduct a marketing research on the city and for the firm to report back on the viability of the venture. This research aims to establish the current state of pet ownership in the city of Victoria, more so the ownership of dogs, various trends that will affect the business among other important factors. Mrs. Clinton has decided to name the pet café Seamus, after a Labrador that the family had lived with for ages. Sadly, the dog passed on, and she has decided to honor him in this manner.
Buyer behavior
According to Maslow et al, consumer purchases are influenced by a number of factors, ranging from psychological, economics, attitudes, and demographics among many others (Maslow 12-16). Therefore, it is essential that the Seamus Pet Café be situated in an area that is accepting to pets, more so the canine kind.

The business model that will be implemented here will focus on the various attitudes in the city of Victoria in regards to dog ownership and how much the locals are willing to spend on their canine companions.
According to the “Australian Companion Animal Council,” Australians spend roughly $8 billion per year to take care of their pets (Facts and Figures 29). In fact, data from the same institute shows that currently, there are more pets than people in Australia, with many citizens dedicating much of their time and money to the care and upkeep of their animals. Mrs. Clinton will be pleased to know that in the 7.6 million households that own pets, dogs are heavily widespread, with stats indicating that there are 19 dogs for every 100 people. With over 4.2 million dogs, accounting for about 39% of all animals, it is clear that canines are among the favored companions (Quickstats 45).
Research has shown that many Australians, as much as 7 in 10 hold their pets in the same regard as family members (Facts and Figures 67). In fact, majority of these individuals cite companionships as the main motivating factor in their ownership of pets and the needs of their pet animals are considered primary. In turn, the purchasing analytic trends have evidently shown that pets are being taken care of with much affection, with Barrett noting that pet food, along with baby food have maintained a steady performance even during times of economic shakes (Barrett 34). With Australians clearly willing to invest their money in advanced pet care services, ranging from food, insurance and health services, it is clear that a pet-oriented business will quickly gain a foothold in Victoria.
According to Australian Bureau of Statistics, Australians spend roughly $3.0 billion annually on pet food, with dogs accounting for about 53% of that figure (Quickstats 24). With dog ownership in Victoria being recorded as the highest in the country, Mrs. Clinton’s dog café will surely become a hit. Furthermore, plenty of dog owners have stated that they enjoy taking their pet animals for a walk, with one in five claiming that they prefer to take their dogs almost everywhere (Latour 1-16). Therefore, a café that provides an opportunity for social interaction, good food for both the pet and its owner among other services is very likely to gain popularity quickly. According to the Institute of Tourism of New South Wales, roughly 840,000 dogs are regularly taken out by their owners to various hotels and cafes that cater for their needs (Tourism New South Wales 1).
Macroenvironment analysis
Just like any other business, the Seamus Pet Café will be influenced by various societal factors that may be out of the management’s control. For instance, various “demographic, natural, economic, technological, cultural and political trends” are likely to have an impact on the operating business and its consumers who come into the facility. This section of the research will explore the various factors that influence the start and growth of the Seamus Pet Café.
With the Australian society being fully established as pet-friendly and quite invested both emotionally and financially, societal demographics clearly show that majority of the locals, more so in the Victoria region are dog owners of some sort. For instance, dogs are quite popular in many societal demographics in Australia, with many people ranging from children, young adults, families and the elderly adopting canines as their companions (Baguley 352-359). Furthermore, with dogs assisting in therapy, assisting the blind, elderly companionship, learning assistance, it is clear that the Australian society is quite receptive of canine companionship of some kind.
On the other hand; economics have played a large part in both enabling and restricting pet ownership. For instance, many families with pet animals have stated that they would rather incur extra costs in the care of their pets than lose them (O’Haire 226-234). However, many urban dwellers, especially young adults living in small apartments have cited the lack of space and enough disposable income as a factor for not owning pets, despite the intention to. Furthermore, despite the consumer confidence in Australia being hit by the global financial crises, it is clear that pet owners are not ready to compromise the well-being of their animal companions, with dog owners spending roughly $1.6 billion on dog food (Barrett 30)
Technology has also played a big part in dictating animal care and consumer spending trends in Australia. For instance, an increasing number of pet owners are now likely to use the internet to order for pet food and other related accessories for their animals. Furthermore, a majority of pet related businesses are trying to establish an online presence in order to attract more customers. With the advent of social media, dog owners too have taken to the cybersphere to interact with other pet owners and to share various experience relating to their animals. In this regard, it is highly critical for a business, such as the “Seamus Pet Café” to employ a business model that embraces the change and has technology embedded into the services it is offering.
In Australia, the political and legal factor has greatly influenced pet ownership and various consumer behaviors. In fact, the Victoria State government has been roundly criticized for various measures that it seeks to introduce in regards to dog ownership and sale. According to the Financial Times Magazine a popular newspaper in the Melbourne Area, proposed reforms to the Domestic Animal Act will be too restrictive for dog owners (Knight 1). With the local government claiming that its intention was to curtail the large scale breeders, who have been accused of cruelty to animals, locals have protested that the new laws will affect even small, genuine breeders (Department of Local Government New South Wales 1). Therefore, it is important for the business to analyze the local political atmosphere and decide whether the increasingly restrictive legislation will affect consumer behavior.
Other crucial variables that may have an impact on the business environment include cultural factors. Australia has been noted as being among the most culturally diverse countries on the globe, with cultures ranging from the “native Aboriginals,” “Caucasian settlers from England,” “East Asian immigrant communities” and other numerous peoples from all over the globe (Quickstats 93). Despite numerous backgrounds and languages, the country is quite stable and democratic, hence making it a smooth transition for Mrs. Clinton into the community. In fact, many businesses in Australia are foreign owned with expatriates viewing the country as a choice destination.
Microenvironment analysis
Target Audience
The Seamus Pet Café seeks to offer both the pet and their owner a serene environment, where they can bond, away from the confines of their homes, many of which are in a cramped urban environment. Mrs. Clinton has insisted that the premises be situated in an area away from the congestion of the Central Business District. With research showing that both pets and people are adversely affected by the extremely cramped and overly busy city life, the Seamus Pet café will offer pet and nature lovers an experience away from the rigors of the urban center.
In accordance with Maslow et al, the consumer is easily influenced by psychological needs (35-42). Therefore, the Seamus Pet Café will present an opportunity to the consumer to interact with fellow pet canine owners, for dogs and their owners to enjoy good nutritional food and to participate in various leisure activities with their pets, such as games and walks. Furthermore, on several occasions, Mrs. Clinton has intimated that she will be joining the clients with her own pet dogs.
Suppliers
With the Seamus Pet Café aiming to provide services to dog owners and their canine companions, especially in the Victoria region, the enterprise will have to identify the target market, suppliers and the various competitors in the area. As the Victoria State area is noted for its large pet canine population, there is no shortage of the aforementioned. The area has a number of dog food suppliers, with various outlets providing the needed products. Since the Seamus Café will also cater for both dogs and their owners, the locality is also rife with markets with fresh produce that will cater for both the pets and their guardians.
In the case of pet food, there are numerous suppliers of both dry and wet food in the Victoria state area. In fact, the average Australian household spends about $382 per animal on food alone (Quickstats 89). Therefore, it is well established that the provision of food to both the owner and the pet canine is quite valuable business that has taken root in the Victoria state. In most of Australia, hence the Victoria State too, the most dominant supplier of pet canine food is Mars Australia. According to the “Australian Companion Animal Council,” the Mars Group accounts for roughly 43% of all canine. Just after Mars, the Nestle Purina Petcare has the second largest share, especially after its acquisition of the Supercoat brand (Facts and Figures 44).
Competitors
The Victoria State area, more so in the city of Melbourne has very few competitors offering the same services as the Seamus Pet Café. There are about three cafes that accommodate both the pet dogs and their owner in the city. Two of these cafes offer drinks to the clients, while also providing an assortment of dog food to their pets. However, all three have time limits in regards to the time spent at the premises. Furthermore, one of these cafes is quite short on sitting space due to lack of expansion space.
However, two of these establishments have been criticized online for their pricing, with many customers feeling that their charges are a bit high. This research has looked at various online review sites such as Yelp and noted that customers are not quite satisfied and therefore, the Seamus Pet Café will seek to employ a business model that will offer competitive prices while providing high-quality service to both the pets and their companions.
Marketing strategy
The Seamus Pet Café will employ a broad marketing strategy that employs customer satisfaction as its key form of advertisement. With the advent of social media and other forms of information technology, customers are quickly proving to be quite vocal on the cyber sphere. This research has noted that, through various sites such as Yelp, Facebook, and many others, customers can greatly affect brand perception. It is, therefore, essential to provide every visitor to the premises with an experience that will ensure that whatever they post online will be of a positive nature.
The target market will consist of mainly three profiles of consumers who will be targeted by our marketing strategy. The first consumer is the young working class adult, who often lacks time to interact with their pet adequately. The Seamus Pet Café will, therefore, offer this particular client cheap pricing since a majority of these consumers lack a lot of disposable income. Furthermore, the premises will offer among other services, free WI-FI to ensure that such clients maximize social media to inadvertently promote brand awareness and special offers for occasions such as birthdays and anniversaries for their pets.
The next kinds of clients that the marketing campaign will target are families with one or more canine pets. By providing special offers such as competitive prices for the whole family, the Seamus Pet Café will advertise itself as a family friendly venue, with emphasis on family bonding and interaction with their pet dogs. This particular segment will benefit from family oriented facilities such as pet and children playground that may lack in the city confines. Finally, the last consumer profile will consist of the elderly, who may have canine pets for companionship or assistance. Such consumers are more likely to enjoy a quiet time with their pets, with little interference from the staff.
Business positioning
Simply put, business positioning is the position a brand occupies in the mind of the intended consumer. One of the most important factors in marketing, brand position is considered vital to the very survival of a business (Maslow 35). After much scrutiny of the intended audience and the various factors that affect the business environment, the Seamus Pet Cafe has chosen to employ a business model focused on delivering affordable, but quality service to both the pet canines and their owners. From the provision of a serene environment, quality food and specialized packages to relevant consumers to ensuring affordability, our firm has advised Mrs. Clinton to employ a customer-oriented model to ensure strategic business positioning.
Marketing mix
The Seamus Pet Café will offer a variety of services that will seek to provide a memorable experience for both the pet owner and their canine companion. Firstly, on Mrs. Clinton insistence, the premises are located on the outskirts of Melbourne, away from the congested city. This will ensure maximum serenity for all customers and their pets. Furthermore, the food that will be provided will be prepared to meet international standards of cooking and catering, and this will apply to all species. Furthermore, there will be various programs that will seek to enhance the customer experience, ranging from free Wi-Fi and various gaming and leisure activities.
The pricing strategy that will be employed will seek to be customer friendly while maintaining competitiveness. Due to the various competitors in the Melbourne City area, the Seamus Pet Café will ensure that the prices offered will reflect on the quality of the services offered. Finally, the business will be located in the City of Melbourne, Victoria State due to the high number of canine pet owners in the area, quality food that is available, low competition among other factors.

References
Baguley, J. “An Analysis of the Demand for and Revenue from Companion Animal Veterinary Services in Australia between 1996 and 2026 Using Industry Revenue Data and Household Census and Pet Ownership Data and Forecasts.” Australian Veterinary Journal. 89.9 (2011): 352-359. Print.
Barrett, Chris. Australia and the Great Recession. Washington, D.C: Woodrow Wilson International Center for Scholars, 2011. Print.
Department of Local Government New South Wales. “Companion Animals Frequently Asked Questions: Microchipping and lifetime registration,” 18 February 2013. Web. 27 December 2016. <http://www.olg.nsw.gov.au/>
Facts And Figures. 1st ed., Melbourne, “Australian Companion Animal Council,” 2010, http://www.fediaf.org/fileadmin/user_upload/facts_and_figures_2010.pdf. Accessed 27 December 2016.
Knight, Stephen. “The Increasing Humanization of Our Pets.” Perth: Perth University Press. 2016, Print.
Latour, Pierre. Pet Dogs and Working Dogs. South Yarra, Vic: Macmillan Education Australia, 2004. Print.
Maslow, Abraham H, Deborah C. Stephens, Gary Heil, and Abraham H. Maslow. Maslow on Management. New York: John Wiley, 1998. Print.
O’Haire, M. “Companion Animals and Human Health: Benefits, Challenges, and the Road Ahead.” Journal of Veterinary Behavior: Clinical Applications and Research. 5.5 (2010): 226-234. Print
Tourism New South Wales. Pets rule in New South Wales. 2013. Perth. Internet Resource.
Quickstats. Canberra: “Australian Bureau of Statistics,” 2013. Internet resource.