This document proposes launching a "Mystery Box" subscription service for pet owners. It would include samples of toys, treats, and health products to introduce customers to new options and educate them. Boxes would be priced at $19, $35, or $49 depending on included products and quantity. The service could be hosted on its own website or third-party sites to reach new customers, or sold as a SKU on the company's main site. With success, the box could expand to include themed or specialized products to drive further growth over time.
2. Goals
Introduce current customers to new
products. Remove risk barrier to buying.
Create new must-haves for their pets.
Attract new kinds of customers. Educate
pet owners on care options. Become an
authority on all things pets.
Increase average customer lifetime
orders by making reorders automatic. Set
it, forget it, enjoy the benefits.
Use short dated products as samples.
Educate customers about options.
Increase future demand.
Offer sampling program for vendors. Get
free stuff, give free stuff, generate
interest in and demand for new products.
Negotiate COOP benefits. Capitalize on
advertising opportunities. Get kickbacks
for premium products.
$$
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3. Who’s the box for?
Dog owners
With regular size dogs
Who want the best, but
Don’t know what the best is,
Don’t want to risk the wrong choice,
Or want to try before deciding.
4. What’s in the box?
Toys: Customer favorites include rope chews,
balls, plush-free, fetch, and treat balls
Treats: Customer favorites include biscuits,
freeze dried, training, natural, dental, and
skin/coat support
Health: Customer favorites include anxiety
solutions, vitamins, water additives, tartar
control, fish oil, nutritional, and probiotic
5. Why’s it in the box?
Short Dated & Overstock: Expiring within six
months or more than one year of stock
Samples:
● New house products
● Small vendor products needing exposure
● Newly released big vendor products
● Pre-packaged samples
Premium: Popular, big-selling brands or luxury
products
6. Pricing tiers
Products: Short dated, overstock,
samples, and premium
Amount: 6-7 products
Type: Toys, treats, health
Margin: 5-25% (inc. shipping)
COG possible: $5.00 - $6.33
Shipping: Free
Products: Short dated, overstock
and samples
Amount: 4-6 products
Type: Toys, treats, health
Margins: 5-25%
COG possible: $5.25 - $8.31
Shipping: Charge
Products: Short dated and
overstock
Amount: 3-4 products
Type: Toys, treats
Margins: 1-20%
COG possible: $5.07 - $6.02
Shipping: Charge
$19
Back to Basics
$35
Premium Pack
$49
Boutique Visit
7. $49
Boutique Visit
$35
Premium Pack
Competitive edge
Reach people willing to spend more
on their pets. Can be converted into
high AOV customers.
Considerations: Extra effort
required to create a specialized
experience driving long-term loyalty.
Meet customer expectations.
Reach same group of customers as
existing services. Sheer number of
competitors says this group is large.
Considerations: Pricing the same
means we have to provide better
products or advertise creatively to
reach new people. It’s a big pie, but
it’s all taken right now.
Reach price-sensitive shoppers.
Use to recover some value from
short dated products.
Considerations: Projected losses
are products nobody wants even
nearly for free. Customers will buy
this once, then cancel their
subscription.
$19
Back to Basics
8. Distribution
Create dedicated, conversion
streamlined site. Reach new
demographic. Acquire new contacts.
Considerations:
● New domain advertising
● Development time
● Existing competition
$35
Premium Pack
Host on third party box sites. Reach
multiple existing customer bases.
Minimal management time.
Considerations:
● Contracts possible
● Third party SEO limitations
● Existing competition
Create as SKU on entirelypets.com.
Advertise to current customer base.
Simple add to cart. Easy auto-ship.
Considerations:
● Subject to all discounts
● No duplicate purchase limit
● Multi-department updates
● Lost in 15,000 SKUs
$49
Boutique Visit
$19
Back to Basics
9. How can this expand?
Life
Event
Themed
Toys
Only
Large/Small Sizes For Cats
Treats
Only
Natural
Only
Made in
USA
Holiday
Themed
L
s
10. Do it right, go all the way.
Nothing less than the best.
11. Promote Expand
Externally, host on third parties.
Internally, call it an “affiliate,”
“partner,” or “child” service.
● Promote as own entity
● Benefit from other existing
customer bases
Have a plan. Set milestones that
mark when new things will happen
and what will be done.
● E.g. after 200 subscribers,
offer large box
● E.g. after 6 months, review
pricing tiers
Develop as its own brand. Let it
have its own customer base. Treat
these customers differently.
● Distinguish from lineup
● Develop streamlined sub-site
● Box and ship separately
Separate
Recommendation: As a product
12. Recommendation: Inside the box
Leverage size, market reach, and
knowledge. Be bold, call out
competition. Be better, offer more.
● New and edgy brands
● Content education
● Price comparisons
Drive long-term growth. Tell
customers where to get more. Make
it easy to buy again.
● 6-month coupon codes
● Savings on re-purchase
● Only from “affiliate” site EP
Keep logistics simple. Pre-pack
boxes for easy shipping. Start small,
increase with demand.
● Chase items in a few (e.g. 1
in 100 boxes have CET)
● Short dated and overstock
used as happy “bonus” items
Prepare Value Retain