Environmental Scan Project for Dog Grooming

Transcription

1 Environmental Scan Project for Dog Grooming in Markdale, Ontario Ariel Brown November 30, 2009 MKT 2315_310 Margaret O Brien

2 Index Introduction Business Description page 2 Pricing page 2 Distribution Method page 2 Mandate page 2 Research Introduction to Research page 3 Forces pages 3-6 Social page 3 Competitive page 4 Technological page 5 Economic page 5-6 Regulatory page 6 Conclusion page 6-7 Bibliography References page 8-9 1

3 Introduction Business Description My business, Perfected Paws, will be dog grooming, which includes nail clip, ear clean, brush, hair clip and trim, bath, blow dry and style. It will be located in the small village of Markdale, Ontario; 2 hours North West of Toronto. On the outskirts of this village will be a beautiful 100 acres of land for our clients pets to enjoy. The salon shop will be pleasantly presented and inviting. Prices Dog Grooming Nail Clip- $10 Bath- $15 Ear Clean- $5 Hair Clip- $10 Style- $20 Full Groom- Small $35-45 Medium $45-65 Large $65-90 Extra Large $ Extra Charges- Matted $15/hr Dirty (2 shampoos) $10 Aggressive Dog $15 Flea Treatment $10 Hours Monday- Thursday 8:00-4:00 Friday 9:00-5:00 Saturday 10:00-2:00 Call to arrange appointment, after hours may be available Other charges and requests upon booking. Also, size and condition of pet will influence pricing. Cat grooming available upon request, however significant price increases. Distribution Method I will create a flyer that includes some pricing and all services available. Also, photos of pets before and after I have groomed so customers can see my work. I will attach a sample of products, such as cologne, shampoo, or bandanas I use in my service. Mandate for Project I am developing an Environmental scan to find out whether a dog grooming business will succeed in Markdale, Ontario. 2

4 Research Introduction to Research I am performing a detailed research on social, competitive, technological, economic and regulatory forces in regards to a dog grooming business. I will be looking at; clientele, local similar businesses, online advertising, feasibility, and municipality laws and regulations. The findings of this research will determine whether dog grooming will succeed in Markdale, Ontario. Social Forces Data With retired people being a major market of mine, knowing that 27% of Canada s population is baby boomers is important. Baby boomers are retiring as we speak and will be for many years to come. (Lamb, Hair, McDaniel, Kapoor, Klaise and Appleby, 2010, 35) Generation X is mainly young families with launched careers. Even though half of them are divorced or separated, this market group will most likely have disposable income. Generation X, people born during , is more than 21% of Canada s population. (Lamb, Hair, McDaniel, Kapoor, Klaise and Appleby, 2010, 35) About 13.8 million Canadians own either a cat or dog in 2007; this was about 42% of Canada s population. (Canadian Animal Health Institute, 2007) Conclusion Based on the social information above, I can conclude the clientele for a dog grooming business is secure. Most Baby Boomers are retired and have pets since their children have moved out. They treat their pets like their children. Many seniors have disposable income because their expenses are minuscule. Generation X is mostly likely to have disposable income because they have launched their careers. This generation is young families, which probably includes pets in the house. With young children, parents like to keep the house clean and dust free as possible. Grooming helps this process because their hair is clipped short and they are bathed. A bath gets rid of the dirt on the dog, and with shorter hair there will be less shedding. Almost half of Canada s population owns a cat or dog. There is a huge market; it just takes a little bit to find the right market target. My market target would be Baby Boomers and Generation X for dog grooming. 3

5 Competitive Forces Data Small or medium-sized businesses in Ontario had $203, of debt in The grooming sector of businesses in Canada had $38, of debt in (Statistics Canada and Survey of Suppliers of Business Financing, 2008) Saugeen Boarding Inc. is a local dog grooming business that is located about 30 minutes from mine. Strengths of theirs include; skunk baths and express anal glands available, near a big town, and groomers are certified by Bryson Grooming Academy. Weaknesses of theirs include; prices are higher, hours are shorter, and they only groom dogs. (Mark & Siobhan Goodburn, 2008) Happy Dog is about 20 minutes from my business and is a local dog grooming business. Low pricing, boarding available, and their patent Pawdicure are their strengths. No weekend appointments, located in a small town, and only groom dogs are their weaknesses. (Kerry Koller, 2009) Conclusion Based on the competitive information above, I can conclude that the local dog grooming businesses are well established. However, they both have their strengths and weaknesses. I have very flexible hours, which neither one of my competitors do. There is usually a certain feature that separates each business. Happy Dog s feature is the Pawdicure and skunk baths and anal gland expressing for Saugeen Boarding Inc. My feature is that I am willing to groom cats. Not a lot of grooming businesses will groom cats because of their claws and they are aggressive. Cat grooming will widen my market significantly. I also plan on going to Bryson Grooming Academy to be certified. This is an 8 week course and costs $5,000, which is a good reason there is debt accumulated by small businesses. Canada s small and medium businesses accumulated substantial debt, and my sector of business is major contributor. To succeed in small business ownership a financial plan must be in place and there will be an initial expense. However, once a clientele is established and revenue is being made, the dog grooming business will succeed. Technological Forces Data Facebook took less than a year to get 50 million users. Compared to radio- 38 years, TV- 14 years and Internet- 4years. Facebook now has more than 300 million users, which is an excellent advertising resource. (Steve Strauss, 2009) 4

6 Setting up Facebook advertising is simple. Four easy steps with tips and instructions: design your ad, targeting, campaigns and pricing and review your ad. (Facebook, 2009) Other features of Facebook advertising include; attach social actions for relevance, create your logo on the page, choose how to advertise (webpage, event, group, application), choose payment plan, track your progress with real-time reporting, find out who is clicking on your ad and make modifications. (Facebook, 2009) Conclusion Based on the technological information above, I can conclude that Facebook would be an excellent resource for advertising. With easy setup and many useful features to choose, this source of advertising would be very effective. Facebook is rapidly expanding throughout the world, already with 300 million users that could see my ad. This new modernized advertising will help my business retrieve clientele and succeed. Economic Forces Data Unemployment rate percentage has increased by 2.3% in the last year (Statistics Canada & CANSIM, 2009) Average weekly earnings has increased by 2% in the last year (Statistics Canada & CANSIM, 2009) A study in the U.S. shows pet owners spent $18,500,000 in 2006 for pet care. Every year is a 6% increase spent. (Unknown, 2007) Conclusion Based on the economic information above, I can conclude that due to the increasing unemployment rate it may be hard to have a feasible business. Many owners that have lost their jobs or on a fix budget due to the recession, will not need dog grooming services because it is not a necessity. However, I found it interesting that although unemployment rate increased by 2.3%, average weekly earnings increased by almost the same amount. The increase in earnings would indicate that these people have more disposable income which is good for a dog grooming business. In the U.S. pet owners spend vast amounts of money on pet care. Since our economies are very similar, I found this data relevant to my environmental scan. If U.S. pet owners do spent a 6% increase each year, the amount spent in 2009 would be $20,033,796. Owners are willing to pay for their pets to be happy, healthy and looking good. Even though unemployment is increasing, hopefully it will restore once the recession has ended. Since average weekly earnings have increased and owners are willing to spend the 5

7 money on their pet, it will be feasible to operate a dog grooming business once a clientele is established. Regulatory Forces Data A Home Occupation Licence is required in Grey Highlands Municipality. It is issued by the Community Service Department and is required for any business that is operating within its home, for a small cost of $140. (Government of Canada, 2009) Section 9(3) of the Act provides that a by-law may regulate or prohibit respecting the matter; and, as a part of that power, require persons to do things respecting the matter, provide for a system of licenses, permits, approvals or registrations respecting the matter and impose conditions as a requirement of obtaining, continuing to hold or renewing a license, permit, approval or registration. (Municipality of Grey Highlands, 2007,1) Section 128(1) of the Act provides that a municipality may prohibit and regulate with respect to public nuisances, including matters that, in the opinion of council, are or could become the cause of public nuisances. (Municipality of Grey Highlands, 2007,1) Conclusion Based on the regulatory information above, I can conclude that there are some by-laws and regulations needed to be followed. Since I am having a business out of my home, a Home Occupation License is required. I have to ensure all permits and approvals are completed before I operate my business. Also, I have to ensure my neighbours are happy with my business being there. They have the right to report any nuisances to the municipality and they can prohibit my business from being out of my home. Overall Conclusion My research of social forces resulted in Baby Boomers and Generation X being my target market. This includes all who were born during , and of who own a dog or cat. Baby Boomers are retired with their pets at home instead of their children. Generation X is young families, which usually includes a pet. Having young children and pets in a home, keeping the house clean is crucial. Grooming helps with less dirt and shedding by bathing and hair clipping. Both of this generation have disposable income because when retired your expenses are minuscule and Generation X have launched their careers. My results of competitive forces are that the local grooming businesses are established and have their strengths. Each of us having our own unique feature helps to separate our businesses. Happy Dog has the Pawdicure, Saugeen Boarding Inc. does skunk baths and anal gland expressing, and I groom cats. To succeed in small business ownership a financial plan must be in place and there will be an initial 6

8 expense. However, once a clientele is established and revenue is being made, the dog grooming business will succeed. My research of technological forces shows that an effective advertising source is Facebook. It is easy to setup and has many useful features. Facebook is a worldwide social website that is rapidly expanding. There are already 300 million users that would have access to your advertisement. This new modernized advertising will help my business retrieve clientele. My economic forces results are that unemployment is increasing, but hopefully will restore once the recession has ended. Since average weekly earnings are increasing and owners are willing to spend the money on their pet, it will be feasible to operate a dog grooming business once a clientele is established. My results from regulatory forces are some by-laws and regulations I have to follow in my municipality. A Home Occupation License is required, I have to ensure all permits are completed, and be sure that I am not a nuisance to my surrounding neighbours. If the following are not in place, the municipality can prohibit my business from residing there. After reviewing my results, I believe that starting a dog grooming business in Markdale, Ontario would be successful. There is a big market target, but it will take a couple years to establish clientele. If a Facebook advertisement is made, it may be quicker. Although there is competition, we all have certain features that are unique to our business. I believe I can compete with them, as long as I have all the by-laws and regulations prepared. 7

9 Bibliography Statistics Canada & CANSIM (2009). Latest statistics (monthly). Statistics Canada, November 5, Retrieved: November 10, 2009, www40.statcan.gc.ca/101/cst01/media01- eng.htm. Lamb, Hair, McDaniel, Kapoor, Klaise & Appleby (2010). Social Responsibility, Ethics, and the Marketing Environment. MKTG Canadian Edition (35), Retrieved: November 14, Government of Canada (2009). Permits & Licences- Details. Canada Business- Services for Entrepreneurs, November 15, Retrieved: November 15, 2009, Statistics Canada & Survey of Suppliers of Business Financing (2008). Business debt outstanding, by selected supplier type. Statistics Canada, December 4, Retrieved: November 15, 2009, www40.statcan.gc.ca/101/cst01/busi04-eng.htm. Unknown (2007). Pet care industry is booming. Physorg.com- Science, Physics, Tech, Nano, News, June 26, Retrieved: November 15, 2009, Canadian Animal Health Institute (2007). Latest Pet Population Figures Released. cahi/icsa, November 15, Retrieved: November 15, 2009, Steve Strauss (2009). Focus on Facebook to boost business. USA Today, November 16, Retrieved: November 16, 2009, Mark & Siobhan Goodburn (2008). Grooming Services for Dogs Only. Saugeen Boarding Inc., December 31, Retrieved: November 16, 2009, Brochure. Municipality of Grey Highlands (2007). By-Law Number The Corporation of the Municipality of Grey Highlands (1), January 8, Retrieved: November 16, 2009, Kerry Koller (2009). Pet Grooming. Happy Dog, Retrieved: November 17, 2009, 8

10 Facebook (2009). Overview. Facebook Advertising, Retrieved: November 17, 2009, Facebook (2009). Step By Step. Facebook Advertising, Retrieved: November 17, 2009, 9