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Petco Brand Audit + Creative Campaign

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Petco Brand Audit + Creative Campaign

  1. 1. Presented by Laura Parkinson December 16, 2008
  2. 2. I. EXECUTIVE SUMMARY
  3. 3. The pet industry is a large and rapidly growing market. Pet superstores reign in today’s marketplace and this reportaudits the brand of the #2 retailer, Petco Animal Supplies, Inc. The audit is presented in four parts. An Introductiontakes a look at the pet industry. An Inventory provides a profile of the company and an evaluation of the brand and itspositioning. An Exploratory reviews consumer attitudes and perceptions. And a Recommendation suggests strategies tohelp the brand grow its equity and marketshare.Sales data and in-depth analysis shows that Petco has built and managed a strong, modern brand. The brand image,voice and personality remain consistent across all marketing efforts. However, consumer insight reveals that there issome brand confusion between Petco and its chief competitor PetSmart. A variety of marketing efforts ranging fromadvertising increase, demographic segmentation, strategic partnerships and website enhancement will help the brandgrow and establish a unique position within the consumers’ mind and preference.
  4. 4. II. INTRODUCTION
  5. 5. The Pet IndustryAmericans love their pets! More than 70 million households have a pet, and most have more than one. In fact, these pethouseholds are home to more than 350 million dogs, cats, hamsters, horses, snakes, birds, fish and lizards. Americans have even made spending on pets the eighth largest retail segment by shelling out $40 billion dollars last year alone. The growing U.S. pet industry is highly fragmented with a variety of retail outlets: Pet superstores, supermarkets, warehouse clubs, mass retailers, pet supply chains, independent pet stores, veterinarians, catalog retailers and e-commerce players. PetSmart controls the top share of the U.S. market with 12.7% and Petco Animal Supplies, Inc. follows behind with a 6% share.
  6. 6. www.wikinvest.comMajor product segments within the industry include pet food (which accounts for 40% of revenue), pet suppliesand medicines (25% of revenue), veterinary care (25% or revenue), pet services (6%) and pet sales (4%).
  7. 7. III. BRAND INVENTORY
  8. 8. COMPANY PROFILE PETCO Animal Supplies, Inc.Founded in 1965 and incorporated in Delaware, San Diegoheadquartered Petco Animal Supplies, Inc. is a privately ownedcompany following its merger with Texas Pacific Group and LeonardGreen & Partners in 2006. The nation’s second largest pet supply Type Private Genre Pet foodspecialty retailer operates in all 50 U.S. states and the District of Founded 1965Columbia and employs nearly 19,000 workers in more than 900 Headquarters San Diego, California Industry Retailstores. Products Pet supplies Website http://www.petco.comPetco superstores are typically 15,000 sq. ft and they carry approximately 10,000 pet-related items and premium cat anddog foods including Nutro, Iams, Hill’s Pet Nutrition and Natural Science Diet.www.Wikipedia.org
  9. 9. Petco superstores are located in high traffic areas, usually in strip malls, co-anchored by other strong superstores. Theaverage superstore generates about $3 million of revenue annually, with sales per square foot of about $200.The Petco retail stores are designed in a layout called Pisces, which was launched in 2004 and integrated from valuablecustomer, store associate, and vendor partner input. The design goal was to create an “uplifting, cool, humble,professional and an enjoyable place to shop.” (Display & Design Ideas; 2005). Pisces stores include wide circular“racetrack aisles” to encourage and facilitate customer traffic throughout all companion animal categories. Colorfuldisplays and vibrant signage is intended to appeal to adults and children alike. Each Pisces store features a dramaticdisplay of aquatics merchandise or a live animal category at the center of the design as well as new elements such as anupscale grooming salon and day spa.Pet ownership drives demand for Petco and spending generally resists economic cycles as owners consider products fortheir animals to be necessities. Petco plays up specialty products and premium brands to distinguish its merchandise mixfrom supermarkets and mass merchandisers.
  10. 10. Petco buys large quantities of key products like dog and cat food directly from manufacturers at deep discounts. Dog andcat food is typically marked up between 20 and 30 percent while other pet foods and supplies are marked up between 80and 90 percent. A computerized inventory management system efficiently tracks the tens of thousand of items fromthousands of different suppliers.A second source of revenue for Petco is via pet services. The stores offer grooming; obedience training, vaccinationclinics, professional photography, pet insurance, DNA Breed Testing and they also sponsor pet adoption for cats and dogsin conjunction with local animal-welfare organizations. (Petco.com, 2008)Petco’s final source of growing revenue is through selling products on its multi-functional company website store,www.Petco.com. The company also participates in a very successful affiliate program that includes about 1,500publisher sites and generates about 20% of the online retailer’s traffic and sales. According to a pet industry blog, “85% ofthe results come from 2% of the affiliates, and it’s those highly productive partners that get most of the retailer’s attention.”(Typepad.com, 2008)
  11. 11. Petco has a national footprint, but considers itself significantly under-penetrated in many of the country’s major markets.Their long-term strategy is to expand square footage by approximately 10% annually through new store growth. Each yearthey focus on strengthening their presence in geographic markets where they already have stores while also targeting oneor two new markets. In addition to opening new stores, they annually close the bottom 2-3% of their store base in an effortto maintain an overall successful real estate strategy. (Petco Annual Report, 2006) Corporate executives perceive atarget potential of 1500-1600 Petco stores in the U.S. With more than 900 stores nationwide currently, they are morethan halfway to their targeted national goal.
  12. 12. BRANDINGThe positioning of the brand is clear, “At Petco Animals Always Come First…Our People Make it Happen.” Theexecutives at Petco have crafted a fine-tuned brand. Voice and visual consistency is seen throughout their efforts fromthe store interiors…to the website design…to the marketing campaigns…and on to everything else in between. “PETCOs vision is to best promote, through our people, the highest level of well-being for companion animals and to support the human-animal bond.” “PETCOs strategy is to provide a broad array of premium products, companion animals, and services, and a fun and exciting shopping experience.” “PETCOs value proposition to the pet parent/customer is provided through friendly, knowledgeable associates in convenient, community-based locations.” - 2006 Petco Annual ReportPetco’s vision focuses on the emotional connection between people and animals. While customers are encouraged toshop its stores with their pets, the policy communicates the level of welcome and importance that the brand extends toanimals. In everything it does the core marketing goal of the brand is to position Petco as an authority on pets.
  13. 13. Brand ElementsPetco’s brand name, characters and slogan are all wrapped into their logo. These elements contain effective attributesthat help to build strong brand equity.Memorability: The Petco brand name is short and easy to remember while the logo is colorful and nicely designed in acasual font. The red dog and blue cat are friendly characters and they’re supported by the welcoming slogan, “Where thepets go.”
  14. 14. Meaningfulness: The brand name makes complete sense for the product category as it implies that it’s a “pet company.”Likability: Pets are loveable and this association is directly transferred to the brand by playful graphics in primary colorswhich presents a feel-good visual imagery and plays up the emotional connection that people have with their pets.Transferable: Petco brand elements transfer seamlessly from the brick-and-mortar stores to the website. The URL isexactly what a consumer would expect, www.Petco.com. The graphics, visual elements and brand voice have completecontinuity. The entire brand concept also works across geographic borders, age demographics, ethnicities and genders.Adaptable: The brand elements are basically timeless and are not only adaptable from the stores to the web, but alsoacross branded gift cards, private label products and the charitable Petco Foundation.Protectable: The distinctness of the brand name, logo and slogan make it legally protectable. However, in the mindsand eyes of the consumer its similarity in name and brand color use (red and blue) to PetSmart can lead to confusion.
  15. 15. Sources of Brand EquityEmployeesPetco makes it clear in its positioning (…our people make it happen), its vision (…to bestpromote through our people) and its value proposition (…provided through friendly,knowledgeable associates) that its employees are a main source of brand equity. Thebrand uses its employees, place throughout the stores, to enhance their overall customerrelationship marketing strategy. Marketing Support Programs Petco integrates customer-focused communications throughout its marketing programs…all while creating seamless branding and consistency across messaging, graphic elements and brand personality.
  16. 16. Pals Loyalty Program - Since 1997, millions of animal lovers have signed up to bemembers of the Petco Pals Loyalty Program. PALS members enjoy hundreds ofmembers’ only discounts throughout the store on products and services and receivespecial bonus offers and exclusive invitations to pet-friendly events. 11 years worth ofcustomer loyalty has generated not only tremendous revenue, but also tremendous brand equity for Petco.Celebrity Endorsements – The use of celebrities also helps bring credibility and equity to the Petco brand.In July of 2008, Petco signed a licensing and endorsement deal with popular dog behavior specialist and star ofNational Geographic’s Dog Whisperer, Cesar Millan. The deal debuts a new line of branded dog products in thestores as well as an online dog coaching course, developed by Millan and offered by Petco on its website. Millanisn’t the first celebrity to partner with Petco. Comedian Ellen DeGeneres earlier this year launched her own line ofnatural pet products for the retailer, called Halo. (Brandweek, 7/24/2008).
  17. 17. Petco FoundationA powerful source of brand equity comes from the charitable Petco Foundation. The foundation has raised morethan $44 million since its inception in 1999 to help promote and improve the welfare of companion animals. Inconjunction with the foundation, PETCO works with and supports more than 5,000 local animal welfare groupsacross the country to help find homes for nearly 300,000 adoptable animals every year. (BazaarVoice 2007) Thishigh-visibility source of goodwill helps generate not only brand equity, but also a “love of brand” among consumers.PromotionsFrom Howl-O-Ween pet costume contests to Hamster Ball Derbies to Paws Across America community dog walks,Petco uses customer-focused promotions to build store traffic and customer loyalty. Many of these promotionsadditionally trigger charitable donations to the Petco Foundation. (PromoMagazine.com, 2007).Petco also executes frequent vendor promotions to build awareness. Hill’s Pet Nutrition ran an in-storesweepstakes to lead Petco’s recognition of September as Natural Food Month. Science Diet’s Nature’s Bestnatural food line is currently running the “Escape with Nature’s Best” sweeps which will reward three grand-prize
  18. 18. winners with 2009 Ford Escape Hybrids and up to $3,900 for a year’s worth of gas. Secondary prizes include Petco gift cards. (In-Store Marketing Institute, Sept 2008) Petco Park - The brand has a huge competitive edge over any other pet product retailer. It holds the naming rights to the San Diego Padres’ ballpark in downtown San Diego. This relationship with the Padres not only resonates with the locals in the company’s headquartered city, but the name gets an enormous amount of national media exposure. The association with the Padres and Major League Baseball is a core brand equity component.Innovation + Experiential EnvironmentMuch of Petco’s brand equity is driven by innovation as the company continually seeks new ways to offer their customersa unique and entertaining shopping experience. The Pisces store format differentiates Petco from all its competitors whilethe marketing managers also are innovative in applying Web 2.0 tactics to their website. There is a lot of online similaritywith PetSmart, however, the superstores are differentiated from other competitors with their active use of socialnetworking through pet communities, message boards and blogs.
  19. 19. Vendor PartnershipsThe P.A.L.S. VALS affinity marketing programadds value to Petco’s frequent buyer programand equity to the brand. Offers from over 15national and 80 regional partners are compiledin free booklets given to P.A.L.S. members inPetco stores. Many of the vendors offer cross-promotional marketing exposure includingChoice Hotels, Samsonite and Budget Rent aCar. Over 3 million booklets have beendistributed to date.
  20. 20. Brand Health + Competitive EnvironmentA recent issue of DSN Retailing Today (2007) reported that Petco earned a 5.1% increase in same-store sales in itsfourth quarter. The increase marked the 48th consecutive quarter in which Petco reported an increase of 4.6% or better insame-store sales. According to the publication that’s an unmatched streak in all of retail.Petco’s sales record is a direct reflection of the high marks it earns for its efforts in creating and marketing a stronghealthy brand. However, an area in which Petco trails the competition is in product pricing. While both superstores ownthe “premium” end of the retail pet marketplace they do lose significant revenue to the grocery stores and mass marketersbased on pricing of two core products: pet food and cat litter. While pet enthusiasts will pay $40 for a bag of all-naturalfood, everyday “Joe Pet Owner” can’t or won’t and this segment of the marketplace is being underserved by thesuperstores. Additionally, Petco is generally priced slightly higher than PetSmart, but it does underprice them in selectpromotional offerings. PetSmart also earns significant income from high-revenue service offerings (veterinary servicesand pet boarding services) in which Petco doesn’t compete.
  21. 21. The superstores definitely stand out from their other competition on the web by offering a multitude of social networkingopportunities as well as charitable services such as pet adoptions. However, Petco.com and Petsmart.com are eerilysimilar to each other in layout and content.www.Petsmart.com www.Petco.com
  22. 22. IV. BRAND EXPLORATORY BACKGROUNDThe marketplace for pet products has dramatically grown from the years when Rover was relegated to the backyard.Today, a large category of current pet owners can be considered “pet enthusiasts” who are passionately committed totheir pets and regard their pet as a member of the family. These customers are the biggest buyers of a variety of new petproducts including clothing, costumes and novelty products, and they’ve also created a demand for services such
  23. 23. as luxury boarding, insurance and photography. The strong commitment of these owners for their pets is shown by someof the 2007 statistics provided by the American Pet Association: 28.5 million dog owners purchased Christmas gifts fortheir dogs; 9.8 million dog owners celebrated their dog’s birthday with a special treat, meal, cake, ice cream or new toy.And, not to leave the cats out, 37 million got Christmas gifts and 13 million also had their birthdays celebrated.If we consider consumer preference to be represented by marketshare, consumers clearly have ranked Petco (6% share)behind PetSmart (12.7%). Another telling statistic is presented by the America’s Research Group (2005) in a nationalstudy of consumer shopping preference between the top two ranking retailers in each channel. The report shows that outof 1000 respondents 65.1% rate PetSmart as their Favorite Store (“Which do you shop at more often?”)compared to 34.9% who prefer Petco. And further insight shows that while PetSmart has an 8.4% Rate ofAttrition (percent of customer base lost to the competition), Petco is losing 22.1% of their customers to PetSmart.While the previous two indicators show that PetSmart has a significant advantage in the marketplace over Petco, theannual Most Competitive Retail & Consumer Goods Study (wRating Corp., 2008) ranks Petco 10th out of 540-pluscompanies when identifying the best performing companies through a method that blends financial and consumer data.
  24. 24. To arrive at the rankings, wRatings ask consumers how well companies meet their expectations every quarter. PetSmart,while still ranking highly at #19, shows that it is vulnerable to the effective marketing efforts of the Petco team.Petco brand managers keep an open dialogue with their customers through product rankings, The Den (a microsite thatcombines all their Ask and Answer content), and most recently by adding video reviews to their website. All this customerfeedback provides Petco with a huge source of brand equity.A brief brand perception study was taken in October of 2008 by the IMC 613 Brand Equity class at West VirginiaUniversity. While the survey group was not representative of the U.S. population and the questioning wasn’t as in-depth as typical proprietary research, the results did reveal interesting perceptions of the Petco brand. Accordingto the survey group, the Petco brand has 100% consumer recognition. 90% of the respondents surveyed also revealedvery positive feelings towards the brand while 10% were indifferent. These feelings were described as “cheerful”“reputable”, “positive”, “clean and tidy” and “friendly environment.” The brand is doing a very good job of having its upbeatpersonality reflected in the consumers’ perceptions at the same time as brand performance ideals are high.
  25. 25. The brand slogan “Where the Pets Go” was quoted without prompting by 30% of the respondents and was the single mostmentioned brand element. Many of the respondents also formed their feelings and judgments about Petco based on thiswell-recognized slogan. However, only 10% of the respondents mentioned the brightly-colored Petco logo anchored by adrawing of a blue cat and red dog sitting side-by-side.As the brand Inventory revealed, that company executives position the brand so consumers know, “At Petco AnimalsAlways Come First…Our People Make it Happen.” This feeling was voiced as customers admitted that they patronizedthe store since it welcomed their pets. Additionally, several respondents specifically mentioned Petco’semployees and noted that they are “knowledgeable”, “customer-oriented” and “friendly.”While respondents universally showed knowledge of the brand’s purpose to deliver a wide selection of pet products, theresponses rarely mentioned Petco’s second tier revenue source… its pet services. This indicates that the brandmanager could focus more marketing weight against the services if they want to grow that end of the business.Overall survey results showed that consumers consider the Petco brand as memorable, meaningful, and likeable.However, while the results didn’t explore brand associations of transferability and adaptability, it did reveal that the brand
  26. 26. is terribly exposed when it comes to the issue of protectablity. The protectablity doesn’t come in the form of legal rightsand brand logos. It is an issue where Petco has not protected their exclusive image in the mindsets of 60% of therespondents. The key issue of concern is that 40% of the respondents could not differentiate Petco from their chiefcompetitor, PetSmart. A survey comment sums up the consensus from this group, “the one brand is the same as theother to me.” An additional 20% could only mention the logo or slogan as a single unique brand element. It is also verytelling that not a single respondent identified themselves as exclusively brand loyal to Petco, and this includes the 40% ofrespondents who had the highest brand knowledge. This final group should be the brand loyals, yet areas ofdifferentiation quoted were mild, such as, “Petco is smaller.”According to the Keller textbook, “effective differentiation is the key to a successful branding strategy.” This statementand the results from the 2008 survey come to the same conclusion. Petco can strengthen its position by developing amarketing program that will differentiate itself once and for all from PetSmart.
  27. 27. V. RECOMMENDATIONS
  28. 28. OVERVIEWAs we learned from the brand Inventory, Petco generates half the annual revenue of its chief competitor, PetSmart. IfPetco wants to seriously challenge PetSmart’s position in the marketplace, it will take a very aggressive business strategysupported by a potent branding strategy to reach this goal. Petco’s greatest potential for generating increased revenuewould be if the brand competed in two high-revenue service offerings: veterinary services and pet boarding. Additionally,from a product standpoint, Petco could steal significant marketshare from all competitors by pricing its private label petfood and cat litter below PetSmart, the grocery stores and mass retailers. While these business strategyrecommendations are not within the scope of this brand audit, they would be supported by the branding strategyrecommendations.Petco has taken all the steps necessary to create a modern textbook brand; however, they still trail the category leader,PetSmart by a significant amount. To increase brand equity Petco needs to concentrate on generating increasedawareness and differentiation through multiple marketing efforts. The following recommendations are offered:Awareness
  29. 29. Retain all 2008 advertising vehicles, but increase brand-building media weight by running more frequent advertisingcampaigns. The increased advertising flights should be in Television and Online Media. Television is recommended forits ability to create mass awareness and online display banner campaigns are recommended for their ability tostrategically reach pet owners through behavioral targeting. The television messaging needs to differentiate the brandfrom its competitors. Similarly the online campaign should differentiate, but also be used to advertise promotional pricingand drive consumers to Petco.com where they can make a brand connection with social marketing features.Target SegmentationCreate a subsegment that focuses on children and their pets. While pet retailers primarily focus their marketing efforts onthe typical pet consumer, a 44 year old woman, children drive a large percentage of household consumer purchases.Beginning with Build a Bear, children have practiced buying clothing, toys and accessories for their make-believe pets.Through the Internet and social media sites such as Club Penguin and Neopets, children have also practiced beingconsumers as they house, clothe and accessorize their virtual pets. Two suggested programs would include a loyaltyprogram where kids earn Petco points, and a student sales program that could also benefit the schools (similar to a SallyFoster gift wrap program that encourages kids to sell Petco products to their family and neighbors.)Strategic Partnerships
  30. 30. In order to increase awareness and build brand equity Petco should extend its pro baseball relationship by creating a setof branded trading cards featuring Major League Baseball players and their pets. An extension of the concept could beoffered to kids online that allows them to create and personalize cards for their own pets.Additional partners should be approached such as: Yahoo, MSN or AOL (by having Petco provide content or sponsoringlost pet or adoption pages); local zoos (by sponsoring a petting zoo or learning exhibit); an upscale spa (that offers spatreatments to women and their pets within the same facility); and Party City and Baskin Robbins (to create an entirebranded line of Petco party decorations and ice cream cakes to encourage a pet party craze.Brand Ambassador ProgramPetco should initiate a brand ambassador program. Members could be leaders of local dog breed Meet-Up Groups.Additionally, the company could foster its relationship with its core demographic, Women 25-54, by using brandambassadors to host Petco product parties in their homes.
  31. 31. Brand ExperienceCamp Petco could be developed as a place to give consumers a true brand experience and include such features as acamping facility, obstacle course, play and swimming area, hiking trails, etc. Brand ambassadors and consumers couldearn points through the loyalty program to qualify for a trip.Website DesignA final brand recommendation encourages Petco to work on differentiating itself from PetSmart through its website.Design elements should be distinct and new features such as branded gaming sections and blog builders could beincorporated.The Petco brand is strong and profitable. However, adopting an aggressive business and marketing strategy for 2009could head the brand to the front of the pack.
  32. 32. PART 2:CREATIVE CHALLENGE
  33. 33. I. Target Audience/Day in the Life
  34. 34. TARGET MARKET-Demographics. Petco primarily focuses their marketing efforts on the typical pet consumer, a 44 year oldwoman. However, pet owners come in all demographics which provide a lot of segmenting opportunities.-Psychographics. “Pet enthusiasts” who are passionately committed to their pets and regard their pet as amember of the family are Petco’s primary target. These customers are the biggest buyers of a variety of new petproducts including clothing, costumes and novelty products, luxury boarding, insurance and photography.-Geographic concentration. While Petco has a national footprint, many pet consumers rank location convenienceextremely high. Petco’s range is limited by consumer distance in many areas.-Usage factors. While every brand would like to just concentrate on their brand loyals, Petco will never grow in share ifthis group is their only focus. While 94% of U.S. pet revenue goes to other retailers, Petco needs to focus not only ondeveloping more brand loyals, but also on attracting new category users and potential brand switchers.
  35. 35. A Petco Consumer Story . . . . . . . . Meet Valerie. She’s 46 years old and lives in San Elijo, a suburb of San Diego. Valerie is divorced and after she lost her parents she decided that she needed some unconditional love in her life. She doesn’t have any children… or does she? Meet Joey. He’s a Golden Retriever who was adopted by his mom, Valerie. Joey loves taking walks, swimming, getting toys and having play dates. Joey eats premium Nature’s Balance and has his own petinsurance policy. Even though Valerie devotes her life to Joey, she can’t play with him when she’s working from home. Meet Kalani. She’s Joey’s new sister and she has completed Valerie’s family. When she came along Valerie had to buy a new SUV Lexus so they all had enough room when going to the doggie park.
  36. 36. Valerie loves to shop at her neighborhood Petco since she can take her babies in with her. When they’re in the store they can’t resist shopping for Halloween cards to send their friends in the GoldenRetriever Meet Up Group. Today will be a great day since the family is going to a birthday party for one of their friends, Buddy, and after they swim, have an ice cream social and a nap they may even stay for a sleepover!
  37. 37. II. Creative Strategy
  38. 38. THE PROBLEMDespite strong branding efforts Petco trails the category leader, PetSmart significantly in sales. Personalresearch also confirms that many consumers can’t differentiate between the two brands, or if they can,they don’t have any reason to be brand loyal to Petco.The hypothetical marketing director intends to differentiate the brand and increase sales by initiating aloyalty and brand ambassador program directed initially to kids…and eventually to parents and teachers.The premise is to market and build loyalty with your future consumers and to have children influence theshopping behavior of their parents. The program will eventually benefit the schools when Petco allows theparticipants to use product sales as a fund raising source such as the Sally Foster Giftwrap sales program.STRATEGY STATEMENTThe Advertising will convince school aged kids (5-14) to register and participate inthe Petco Kids and P.A.L.S. programthat is exclusively offered by Petco and available to any kid who has a real, sponsored or virtualpet andwill provide fun, friendship, rewards, recognition, social benefits and companionship.The Support will be justified by the success of television kids’ clubs of the ‘80’s, Beanie Babiesand Build-A-Bear, and the child/computer behavior exhibited in websites such as Club Penguinand Neopets.The Tone will be fun, cute and amusing.
  39. 39. III. Creative Briefss
  40. 40. CREATIVE BRIEF I - OriginalWhy are we advertising? To launch a new brand ambassador program that will build brandequity and brand loyalty among children and eventually extend to parents and teachers.Whom are we talking to? School aged kids in grade school and middle school who have a pet(real, stuffed or virtual) and love to use computers for social networking with friends andplaying games. These kids are also competitive and positively respond to point-basedprograms to earn rewards. The kids like to share their interest in pets with their friends andfamily and love to buy real or virtual products for their pets.What do they currently think? I love animals and have fun showing my pets off to friends. Ilove to visit pet stores where I can see real animals and pick out toys, treats and clothes. Mymom buys the food and supplies for our pet, but I’m not sure where she always gets it.What would we like them to think? I want to join the Petco Kids and P.A.L.S program where Ican register my pet(s), have fun with my friends and earn prizes.
  41. 41. CREATIVE BRIEF I - PrintWhy are we advertising? To support the launch of a new brand ambassador program that willbuild brand equity and brand loyalty for Petco.Whom are we talking to? Teachers and parents of school kids.What do they currently think? The school district can no longer provide basic supplies for ourclassrooms. We need consistent and easy fundraising opportunities. Parents additionallythink: I value my child’s education and I’d love to support my schools especially if I can do itwith every day purchases.What would we like them to think? I want to join the Petco Kids and P.A.L.S program where Ican earn desperately needed supplies for our classrooms without any additional cost.What is the single most persuasive idea we can convey? Petco offers a program that easilyallows teachers and parents to support our schoolrooms.Why should they believe it? Petco offers program support in their stores and on their website.What is the personality we want to convey? Fun and persuasive.What are the specific media needs? 2 print ads
  42. 42. CREATIVE BRIEF II - RadioWhy are we advertising? To support the launch of a new brand ambassador program that willbuild brand equity and brand loyalty for Petco.Whom are we talking to? Teachers and parents of school kids.What do they currently think? The school district can no longer provide basic supplies for ourclassrooms. We need consistent and easy fundraising opportunities. Parents additionallythink: I value my child’s education and I’d love to support my schools especially if I can do itwith every day purchases.What would we like them to think? I want to join the Petco Kids and P.A.L.S program where Ican earn desperately needed supplies for our classrooms without any additional cost.What is the single most persuasive idea we can convey? Petco offers a program that easilyallows teachers and parents to support our schoolrooms.Why should they believe it? Petco offers program support in their stores and on their website.What is the personality we want to convey? Fun and persuasive.What are the specific media needs? 1 :60 radio spot
  43. 43. CREATIVE BRIEF III- Television + InternetWhy are we advertising? To launch a new brand ambassador program that will build brandequity and brand loyalty among children and eventually spread to parents and teachers.Whom are we talking to? Kids in grade school and middle school who have a pet (real, stuffedor virtual) and love to use computers for social networking with friends and playing games.These kids are also competitive and positively respond to point-based programs to earnrewards. The kids like to share their interest in pets with their friends and family and love tobuy real or virtual products for their pets.What do they currently think? I love animals and have fun showing my pets off to friends. Ilove to visit pet stores where I can see real animals and pick out toys, treats and clothes. Mymom buys the food and supplies for our pet, but I’m not sure where she always gets it.What would we like them to think? I want to join the Petco Kids and P.A.L.S program where Ican play, have fun with my friends and earn prizes.
  44. 44. What is the single most persuasive idea we can convey? Petco offers a club for kids and theirpets that provides fun, prizes and a chance to win a puppy or kittenWhy should they believe it? Petco offers program support in their stores and on their website.What is the personality we want to convey? Fun, cute and playful.What are the specific media needs? 1 :60 TV spot, 1 :15 TV spot, 2 banner ads
  45. 45. IV. Prints
  46. 46. TEACHER’S PET Every teacher’s pet can support our schools!Join the Petco Kids & P.A.L.S. Club and learn how easyeveryone in your class can earn classroom supplies withtheir pet purchases. www.petcokids&pals.com
  47. 47. Even parents can be the TEACHER’S PETwhen they join the Petco Kids & P.A.L.S. Club and support ourschools by turning every day pet purchases into neededclassroom supplies. www.petcokids&pals.com
  48. 48. V. Radio + Internets
  49. 49. PETCO “Teacher’s Pet” :60 RadioSFX: BARKING DOGS, A CAT CHASE WITH SCREATCHES, BIRDS CHIRPINGTEACHER: (YELLING ABOVE THE NOISE) Ok class, let’s settle down now! We need to finish taking attendance before we move on to our lessons for the day. (ANIMAL “TALKING” QUIETS) Now where were we? (YELLING OUT) Sparky?SFX: SMALL DOG SINGLE BARK RESPONSETEACHER: (YELLING OUT) Tuffy?SFX: CAT MEOWTEACHER: Polly, are you in class today?SFX: (PARROT) Polly wants a cracker!TEACHER: No, dear, it isn’t snack time yet. (FADING UNDER) Bowser, please keep your paws to yourself.SFX: DISTANT DEEP BARK
  50. 50. ANNOUNCER: Right now there is an entirely new set of teachers’ pets helping out in the classrooms. When you sign up for the Petco Kids and P.A.L.S. program your every day pet purchases help provide needed supplies for our schools throughout the year. It’s easy to join by visiting w-w-w. PetcoKids&PALS.com or by stopping in for more information at any of our neighborhood stores. Parents, please let Petco care for your pets AND help support your child’s education at the same time. Teachers, if you sign up your class you’ll automatically earn a one hundred dollar reward certificate to start off the program. At Petco, animals and kids always come first!SFX: DOG BARKINGTEACHER: Yes, I see that. Boots, stop drinking the water out of Nemo’s fish bowl!SFX: CAT MEOW, UNDERWATER BUBBLE SOUNDSPETCO “OMG” :10 Online Banners
  51. 51. OMG!vote 4ur favorite photo and win $$$! CLICK HERE
  52. 52. (The 4 photos fade in and out in top left position via flash)
  53. 53. OMG! play games! win prizes! join 4 free now! CLICK HERE(The above copy will appear via flash as typed text one letter at a time)
  54. 54. VI. Televisions
  55. 55. PETCO “Kids and PALS CLUB” :30 TV2/3 LEFT SPLIT SCREEN 1/3 RIGHT SPLIT SCREEN AUDIO1. CU PUPPY RUNNING INTO CAMERA SHOT CUTE MUSIC UNDER TITLE (WHITE ON RED): “SEE SPOT RUN”2. CUT TO CU PUPPY ROLLING ON LAPTOP COMPUTER TITLE (WHITE ON RED): “SEE SPOT PLAY”3. CUT TO CU PUPPY DIGGING/”TYPING” SFX: KEYBOARD TYPING4. CU HOME PAGE OF PETCO KIDS AND PALS CLUB TITLE (WHITE ON RED): SFX: KEYBOARD TYPING “SEE SPOT JOIN”5. MS PET TOYS & CLOTHES SFX: KEYBOARD TYPING TITLE (WHITE ON RED): “SEE SPOT EARN POINTS AND PRIZES”6. MS KITTENS AND PUPPIES FROLICK ON LAPTOP TITLE (WHITE ON RED): “SEE SPOT INVITE ALL HIS FRIENDS TO JOIN”7. FULL SCREEN CLOSING SLIDE (SEE NEXT PAGE) ANNCR 1 (VO): THE PETCO KIDS AND PALS CLUB… FREE TO KIDS WITH PETS OF ALL KINDS WEBSITE ADDRESS TYPES OUT “www.PetcoKidsAndPals.com” ANNCR 2 (VO): A PUPPY AND ONE LETTER AT A TIME (BLUE) KITTEN ARE GIVEN AWAY EACH DAY. JOIN TODAY!
  56. 56. (CLOSING SLIDE SHOT)(“KIDS AND PALS CLUB” LOGO REPLACES “WHERE THE PETS GO”) www.PetcoKidsAndPals.com
  57. 57. PETCO “Kids and PALS CLUB” :15 TV2/3 LEFT SPLIT SCREEN 1/3 RIGHT SPLIT SCREEN AUDIO1. CU KITTEN RUNNING INTO CAMERA SHOT CUTE MUSIC UNDER TITLE (WHITE ON RED): “SEE KITTY RUN”2. CUT TO CU KITTEN DIGGING/”TYPING” TITLE (WHITE ON RED): SFX: KEYBOARD TYPING “SEE KITTY PLAY GAMES”3. CU HOME PAGE OF PETCO KIDS AND PALS CLUB TITLE (WHITE ON RED): SFX: KEYBOARD TYPING “SEE KITTY JOIN”4. CUT MS KITTENS AND PUPPIES FROLICK ON LAPTOP “SEE KITTY ENJOY WITH FRIENDS”5. FULL SCREEN CLOSING SLIDE (SEE NEXT PAGE) ANNCR 1 (VO): THE PETCO KIDS AND PALS CLUB… FREE TO KIDS WITH PETS OF ALL KINDS WEBSITE ADDRESS TYPES OUT “www.PetcoKidsAndPals.com” ANNCR 2 (VO): A PUPPY AND ONE LETTER AT A TIME (BLUE) KITTEN ARE GIVEN AWAY EACH DAY. JOIN TODAY!
  58. 58. (CLOSING SLIDE SHOT)(“KIDS AND PALS CLUB” LOGO REPLACES “WHERE THE PETS GO”) www.PetcoKidsAndPals.com
  59. 59. VII. Non-Traditional
  60. 60. PetcoKids&Pals.com Interactive WebsiteThe Home Page on the microsite will combine visual continuity and live photography from the main Petco.com website yetuse more vibrant coloring and animated features such as from ClubPenguin.com.
  61. 61. PetcoKids&Pals.com Content Categories-Member Room. Membership details and management pages for kids, includes invitation sender for friends-Teacher’s Store. Teacher log-in page, membership point management, classroom supply store-Parent’s Corner. Program benefit details.-Game Room. A variety of games where members play to earn points for exchange at the PALS Store.-PALS Store. Point exchange store for Petco products, prizes, trips to Camp Petco-Virtual World. An animated, virtual “Second Life” for pets-Design Shop. Members create E-cards, pet trading cards, print & banner ads; and access desktop wallpaper,-Blog Builder. A template members use to build a blog about their pets. Members can also post their blogs.-Pet Gallery. Members post their pet photos, avatars and videos.-Chat Room. Kid brand ambassadors lead the chats.-Calendar. Local community event pages.
  62. 62. Kids and Pals “Camp Petco” Experiential MarketingCamp Petco is a branded campground where kids can take their pets and families for a playful weekend experience.This experiential camp allows consumers of all ages to connect with the Petco brand and their pets in a personallyrelevant and memorable way. Invitations to Camp Petco are earned through point accumulation.Camp features include family and pet tents and cabins; doggie pool and doggie beach; pet obstacle courses and mazes;puppy and kitten playrooms, campfire and chuck wagon, etc.Camp events would include pet fashion shows; seasonal costume contests, pet parades, pet magic shows, professionalpet photo shoots, family & pet treasure hunts, pet trick classes, etc.
  63. 63. VIII. Summary(Kids + Pets + Teachers + Parents) + (Petco Kids & Pals Campaign) = Brand Equity x 2
  64. 64. REFERENCES:Keller, K. (2002). Strategic Brand Management: Building, Measuring, and Managing Brand Equityhttp://www.hoovers.com/pet-stores/--ID_222--/free-ind-fr-profile-basic.xhtml2006 Petco Annual Report. Retrieved September 28, 2008.http://appma.typepad.com/pet_industry_insight/2008/04/president-of-th.htmlhttp://www.instoremarketer.com/article/43633http://www.brandweek.com/bw/esearch/article_display.jsp?vnu_content_id=1001021749http://www.brandweek.com/bw/content_dieplay/news-and-features/licensing/imw=Yhttp://online.wsj.com/article/SB120424814122801745.htmlhttp://www.instoremarketer.com/article/43633http://promomagazine.com/retail/marketing_pet_friendlyhttp://proquest.umi.com.www.libproxy.wvu.edu/pqdweb?vinst=PROAnonymous. Shoppers reveal dirty little secret: Loyalty is not forever. DSN Retailing Today. New York, 11/7/05.Doug Desjardins. DSN Retailing Today. New York: Mar 28, 2005. Vol. 44, Iss. 6; pg. 6, 1 pgs

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