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McCombs Spring Case Competition 2017
- 1. Rohan Trivedi Brian Mai Tim Basu Roy Veshal Arul Prakash PawPrint Bevoshire & Co.
- 2. SolutionIntro Financials Risks Conclusion Table of Contents Problems Goals Implementation Operations Human Capital Technology Financials Risks Rejected Alternative Conclusion
- 3. Intro
- 4. SolutionIntro Financials Risks Conclusion What is the problem at hand? Problem “Develop a realistic plan to help veterinarian clinics retain and win back clients for the pet food/medicine product segments.” Acquiring Customers Retaining Customers Dealing with Disruption
- 5. SolutionIntro Financials Risks Conclusion We hope to accomplish three specific goals with our recommendation Our Goals Provide better veterinarian service and increase customer satisfaction overall 3 Retain current customers, and incentivize them to buy food and medicine form the vet clinics 2 Acquire new customers for vet clinics1
- 6. SolutionIntro Financials Risks Conclusion Introduction Market Overview Dogs 37% Cats 30% Birds 3% Horses 2% Other 29% HOUSEHOLD PET DISTRIBUTION
- 7. Solution
- 8. SolutionIntro Financials Risks Conclusion Three Pronged Strategy Solution Focus on excellent customer service Usage of employee performance metrics Improve upon critical feedback 1 2 3 Personalized pet products Partnerships with pet shelters Marketing to increase recognition 1 2 3 Implement servers using AWS and SQL Review data through Tableau software Internal database management 1 2 3
- 9. SolutionIntro Financials Risks Conclusion The HC Solution Human Capital 70% of patients become irritated after just 15 minutes of waiting; less likely to return 46% of consumers were pleased after organizations respond to negative feedback Incentive programs can boost performance by 25 to 44 percent Hire additional vets spread across the network utilizing a multi-echelon system to increase efficiency IPad for surveys/check-in to maximize customer satisfaction Employee performance metrics to provide cash bonuses to top quarter of veterinarians The bottom line: increasing customer retention rates by 5% increases profits by 25% to 95%
- 10. SolutionIntro Financials Risks Conclusion The Tactics Operational Strategic Partnerships Focused Marketing Subscription Service
- 11. SolutionIntro Financials Risks Conclusion Subscription Service: PawPrint Operational PawPrint is a personalized subscription service which offers different tiers of prepackaged pet consumables tailored to your individual needs Allows for the acquisition of clients through retaining clinic visitors who walk through the door
- 12. SolutionIntro Financials Risks Conclusion PawPrint Operational 38% 89% …of patients never return after a first visit. The principal reason is lack of attention and neglect …of consumers believe personalization is important for customer service
- 13. SolutionIntro Financials Risks Conclusion Subscription Pricing Tiers Operational $24.99 Base food service and base flea medication $44.99 Mid food service, vitamins, and mid flea medication $69.99 High food service, vitamins, high flea medication, and heartworm medication Basic Level Mid-Range Level High-Range Level
- 14. SolutionIntro Financials Risks Conclusion Marketing Operational Social Media Marketing: Facebook, Dodo, Twitter Petting booths at colleges and young professional workplaces (downtowns) Television commercial in coordination with non-profits
- 15. SolutionIntro Financials Risks Conclusion Marketing Targets Operational 1 2 Millennials A majority of millennials — 76 percent — said they are more likely to “splurge” on their pets than for themselves, according to a 2014 study by Wakefield Research. Three-fourths of Americans in their 30s have dogs, while 51 percent have cats, according to a survey released by research firm Mintel.
- 16. SolutionIntro Financials Risks Conclusion Shelter Partnerships Operational
- 17. SolutionIntro Financials Risks Conclusion Shelter Partnerships Operational One-stop-shop model to impose switching costs 3.2 million shelter animals are adopted each year
- 18. SolutionIntro Financials Risks Conclusion Technology - Tableau Operational Complex data visualization Comprehensive performance analytics Complete quality assurance and control
- 19. SolutionIntro Financials Risks Conclusion Technology - AWS Operational Scalable cloud storage eliminates upfront costs of hardware Cost efficient on-demand model
- 20. SolutionIntro Financials Risks Conclusion Technology – MySQL Operational OSS allows for lower TCO than competitors Scalability allows for growth and flexibility
- 21. Financials
- 22. SolutionIntro Financials Risks Conclusion • NPV Model of the PawPrint Project Financials
- 23. Risks
- 24. SolutionIntro Financials Risks Conclusion Evaluation of risks PawPrint faces Risks Economic Downturn Competitors Potential economic recession may discourage people from spending during recession Disruptive innovation by pet food and medicine startups Mitigation Even during recessions, people ONLY decrease their spending on pets by 0.1% We provide three unique feature: Face-to-Face interaction, personalized subscription service, and contractual switching costs
- 25. SolutionIntro Financials Risks Conclusion Porter’s Five Forces Risks Barriers to Entry High cost of obtaining vets High cost of customer services Bargaining Power of Buyers Medium for pet foods Low for medicine/veterinary services Intensity of Rivalry High cost competition Threats of Substitutes High upfront costs Bargaining Power of Suppliers Many substitutes available Volume pricing
- 26. SolutionIntro Financials Risks Conclusion Concluding Thoughts Conclusion E-Commerce Future Growth for the Vet Clinic in market share Expanding Partnerships
- 27. Appendix
- 28. SolutionIntro Financials Risks Conclusion CapEx
- 29. SolutionIntro Financials Risks Conclusion COGS
- 30. SolutionIntro Financials Risks Conclusion Discount Rate
- 31. SolutionIntro Financials Risks Conclusion Subscription
- 32. SolutionIntro Financials Risks Conclusion Revenue Projections
- 33. SolutionIntro Financials Risks Conclusion Attention to Company
- 34. SolutionIntro Financials Risks Conclusion Customer Service
- 35. SolutionIntro Financials Risks Conclusion Service Lose Sales
- 36. SolutionIntro Financials Risks Conclusion Incentives
Editor's Notes
- Opaque after movement of white block The bottom line: increasing customer retention rates by 5% increases profits by 25% to 95% (http://hbswk.hbs.edu/archive/1590.html)
- Subscription service offers a personalized solution aimed at retaining vet clinic visitors acquire clients by retaining the ones who walk through the door
- Subscription service offers a personalized solution aimed at retaining vet clinic visitors acquire clients by retaining the ones who walk through the door 38% of patients never return after a first visit. The main reason is lack of attention from the practice and too little of the veterinarian's time. Human capital approach will decrease churn rate, and increase clientele 89% of consumers believe personalization is important for customer service
- Social Media marketing Facebook, Dodo, Twitter Booths with Animal Shelters Petting booths at colleges and young professional workplaces (downtowns) A majority of millennials — 76 percent — said they are more likely to “splurge” on their pets than for themselves, including for expensive treats (44 percent) or a custom bed (38 percent), according to a 2014 study by Wakefield Research. Three-fourths of Americans in their 30s have dogs, while 51 percent have cats, according to a survey released by research firm Mintel. Television commercials in coordination with non-profits
- A majority of millennials — 76 percent — said they are more likely to “splurge” on their pets than for themselves, including for expensive treats (44 percent) or a custom bed (38 percent), according to a 2014 study by Wakefield Research. Three-fourths of Americans in their 30s have dogs, while 51 percent have cats, according to a survey released by research firm Mintel.
- Shelter Partnerships Acquire customers by reaching out to new pet owners One-stop-shop model to impose switching costs Offer “starter” packages which contain leashes, beds, pads, etc Guidance Approximately 3.2 million shelter animals are adopted each year (1.6 million dogs and 1.6 million cats). https://www.aspca.org/animal-homelessness/shelter-intake-and-surrender/pet-statistics