The document provides a product strategy report for an automatic pet feeder called "Paws & Relax". It discusses the problems the product aims to address such as busy pet owners being unable to feed pets regularly and rising pet obesity. The product objectives are to provide peace of mind for owners, better weight management for pets, and less stress for pets and owners. The report outlines the product features, pricing, target audience, and plans for extensions and ongoing services. It proposes partnerships and revenue models including tie-ups with furniture, grocery and veterinary companies. The overall conclusion is that the product will help provide better care for pets that need owners.
1. PRODUCT STRATEGY REPORT
SMART FEEDER
Submitted By
Abdullah Saghir Ahmad (C002)
Atishay Agrawal (D012)
Karumanchi Bala Rama (C026)
Nilakshi Agarwal (C034)
Pragya Shukla (C039)
Sauman Bhakta (C046)
Under the guidance of
Prof. Harsh Vardhan
Narsee Monjee Institute of Management Studies, Bangalore
2018
2. “Paws & Relax”
WHAT CORE PROBLEM IS THE PRODUCT TRYING TO SOLVE AND FOR WHOM
Working professionals are wary of adopting pets because of their busy schedule (who will feed the pet when I am
not around). Also, pet obesity is on the rise, especially when many owners keep pet bowls and feeders topped off
with kibbles for their cats or dogs to graze on throughout the day. We often leave a "little more" as a treat,
sometimes out of guilt when we're away at work or off for a day/weekend trip without our faithful tailed
companion. Our product is a solution to both these problems. Now working professionals can adopt a pet without
the fear of feeding problems. The automated portion control mirrors what nutritionists and trainers recommend
for people seeking healthier dietary habits: eat more often, but in smaller portions, all throughout the day on a
set schedule.
WHY IS IT AN IMPORTANT PROBLEM REQUIRED TO BE SOLVED
Well, because all pets are good for your health! Not only do animals give you unconditional love, but they have
been shown to be psychologically, emotionally and physically beneficial to their companions. Also, according to a
pet obesity prevention study, out of the 171 million cats and dogs we include as family in our households, an
estimated 93 million US dogs and cats are overweight or obese. That's a staggering figure with even more sobering
effects:
Osteoarthritis
Insulin Resistance and Type 2 Diabetes
High Blood Pressure
Heart and Respiratory Disease
Cranial Cruciate Ligament Injury
Kidney Disease
Many Forms of Cancer
Decreased life expectancy (up to 2.5 years)
WHAT ARE THE TOP OBJECTIVES THAT USERS WILL ACHIEVE BY USING THIS PRODUCT?
Peace of mind for you: Perhaps the greatest benefit of an automatic pet feeder is the convenience for the
owner. You'll have the peace of mind knowing your pet is being fed whether or not you're at home. You'll
also have a much healthier pet with a much healthier weight!
Better weight management: A fat pet is not a healthy pet. Obesity is the foundation of serious health
problems like diabetes, arthritis, high blood pressure, and kidney disease. Not only does this mean your
beloved pet is suffering, but it can cost you a lot of money in veterinary bills.
Less stress for your pet: All animals have well-developed internal clocks. Whenever your pet starts
weaving around your feet, you don't need to look at the clock to know it's feeding time. If it's mealtime
and you're not home, this will create stress for your pet. The same goes for days when you oversleep and
focus on making your breakfast instead of feeding your hungry pet. And how often does your pet give you
a "wake up call" when it is hungry in the morning? The automatic pet feeder will eliminate the stress for
both of.
More freedom for you: Do you work long hours? Do you need to go away overnight? Do you have an
upcoming business trip or weekend getaway? Rather than stressing about finding a pet sitter, use the
automatic feeder. Just fill it up, program it for meals, and your pet will be automatically fed while you're
away.
Control when your pet eats: If you're trying to set up a feeding schedule for your pet, the automatic feeder
is a perfect solution. It's literally as easy as the flip of a switch. Your pet will have a healthy scheduled diet
plan.
3. Less bugs: The automatic pet feeder is a clean, mess-free solution. Because the lesser the food sits out,
the lesser bugs it attracts.
WHAT IS THE (ECONOMIC) OPPORTUNITY THAT THIS PRODUCT WILL ADDRESS?
In 2016, the global automatic pet feeder market was valued at $502.51 Million and is expected to grow to
$2813.54 Million by 2021 with a CAGR of 31%.1
WHAT (BUSINESS) GOALS SHOULD THIS PRODUCT MEET?
The primary factors that are contributing to the growth of the global automatic and smart pet feeder market are:
Changing lifestyle patterns and busy work lives of urban populace
Growing concern for pets' health
Our focus is to provide an intelligent feeder that takes care of your pet’s health and gives you peace of mind.
We want our product, “Paws and Relax” to become synonymous with pets, to become a brand that pet owners
around the world trust.
THE PRODUCT
Our product is an automatic pet feeder that dispenses food on a schedule and pairs with your phone to automate
and track feedings. So you have peace of mind knowing your pet will be fed, even if you’re running late or are out
for some work.
FEATURES AND BENEFITS
BASIC FEATURES
Automate your pet’s daily meals, personalize your pet’s food portions and get notified when your pet's
been fed
This device can provide regular feeding without disrupting owner's work. Owners can monitor feeding
process with their smartphone virtually. Through the automatic feeder, the user can set feeding time and
portion per serving through smartphone. The device sends feeding report (eaten or partially eaten), and
pet arrival notification when the feeding time has arrived. Every setting about feeding time, portion, stock
and waiting time will be set on the mobile app. Also, a smart scale on the feeding bowl will indicate the
optimal level when feeding the pets manually
ADVANCED FEATURES
Pet owners will be able to see their pets through a camera, hear their pets through a built-in microphone,
interact with their pets by feeding them treats, and play with their pets through an interactive laser
pointer. Pet owners have full control over the 360-degree mobility of the robot through the app and can
securely take and save pictures and videos of their pets.
o Voice Service Integrations - Compatibility with Amazon Alexa and Google Assistant means users
can dispense feedings by using their voice and get audible updates about the latest feeding and
current food supply.
o Cam Integration - The feeder has a cam and also works with Nest Cam to send users a snapshot
of their pet eating. Nest Cam also works with Amazon Alexa, meaning users can ask Echo Show to
display the Nest Cam video of the automatic pet feeder by simply asking Alexa to do so.
1
https://www.businesswire.com/news/home/20171025005532/en/Automatic-Smart-Pet-Feeder-Market---Drivers
4. o Play with your Pet – With the built-in camera and two-way speaker/microphone you can watch,
talk and listen to your pet. You can play with them or work on tricks with them. And when they
ace the trick or you want to play fetch, fling a treat from the screen of your smartphone and the
automatic pet feeder will fling a ‘treat’ kibbles/biscuit towards your pet. This will make your office
breaks more exciting. Our pets are there for us, waiting, this will enable us to be there for them
too. With this feature, they will know that their loved ones are just around the corner.
o Improved Food Compatibility - Compatibility with more foods, including pyramid and flat shaped
kibbles.
o Pet Proofing - Pet-proofed lid and dispensing features make it nearly impossible for pets to break
into the stored food.
o Portion Control - Sensors allow for greater accuracy with portion control and feeding
notifications.
o Machine Washable - Machine washable hopper and dispensing mechanism. Every part of the
automatic pet feeder that touches pet food is washable.
SERVICES
o Food suggestions
o Automatic ordering capability / alert when the food stock runs low
o Smart bowl measures temperature and monitors pet’s health
o Food recipe suggestions by analyzing the nutrients of the current meal item(s)
TARGET AUDIENCE
Demographic: Developed and Developing Countries
Working Professionals aged 25 to 55 years
Socio-Economic Classification: Households with income of 8 LPA and above
Psychographic: Innovators and Pet Lovers
PRODUCT DIFFERENCES
Relative Advantage: Feed your pet from anywhere with your phone and receive real-time alerts for meal-times
and food levels so that you know that your pet is taken care of. No more second thoughts before adopting a pet
just because of dearth of time to feed them.
Compatibility: Automatic pet feeder’s design is modern and it looks similar to a small cabinet. Also, the idea of
food being dispensed from a container is not new, hence, the product is compatible with our target audience.
Complexity: Works with wifi and an app. The technology is not very complex but customer’s might have questions
like, what happens if the power or internet goes out? Proper training and briefing to the owners should eliminate
such complexities.
Trialability: Customers can have an experience of the product easily through demoes. They can also play with a
friend’s pet through the smartphone app. Also, they can catch the real-time action when they visit an existing
user.
Observability: Most people play games or engage in casual conversations during their office breaks. The automatic
feeder will enable the pet owners to play with their pet in such breaks. This will increase the observability of the
product as people will be intrigued when they see their colleagues playing with their pets through their mobiles.
The product will be also observed by people who visit the homes of our existing users.
5. PLATFORM STRATEGY
Modular design provides the source of platform strategy for our product. There are 3 modular parts in the product:
Top part where the food is kept/stored. It has 2 parts. One for normal food, one for treats.
Middle module has the screen, camera and other sensors which are used to detect the health, motion
etc., of the pet. There will be a hole in the middle so as to allow the food from top to come below.
Bottom part has the food tray and the base.
There are many uses because of this modular design:
For any repairs, the whole machine need not be taken. Only the dysfunctional module can be replaced.
Any hardware updates in the future, which can occur due to technological innovation, can be easily done
by just replacing the parts.
Modular design provides less moving mechanical parts, because of which there will be less sounds, which
will not scare pet away.
The reliability increases due to modules, providing higher life time value to the customer.
6. CATEGORY CREATION
Pet Care, primarily includes pet supplies and healthcare. We aim at redefining the category by expanding the
already existing definition. The pet care category will include providing healthy diet (through supplies) and proper
portions, training, grooming, mating, health and hygiene and other services for your pet. The details are
mentioned in the subsequent sections of the document.
All you have to do is just order “Paws & Relax” and unlock 360-degree care of your pet, physical as well as
emotional.
PRODUCT EXTENSION
The feeder will be launched with the initial features of the built-in feeding station, an interactive pet camera
which the owner could operate using the app to interact with the pet and a treats section which could be used to
dispense off treats for the pets when required using the real time user interaction through the app.
From 6 months of launch of the product, a dietary plan feature would be introduced. Since the app has been
tracking and observing your pet’s diet for 6 months, it would be able to suggest the suitable diet he should follow
taking his medical health and complications (if any) as data on the app and suggesting the daily plan accordingly.
After 3 months from this, a feature of measuring the physical well-being of the pet would be introduced wherein
the sensors already installed in the feeder tray would record the pet’s temperature, heartbeat and breathing
pattern. These observations would be available on a daily basis and a weekly analysis of the health report will be
provided but on a subscription basis.
Having analyzed your pet’s taste preferences, diet and health conditions for 12 months now, the app would be
enhanced to suggest the likeable items you could purchase as a daily feed or as treats which would be shown
through e-commerce retailers which we would tie up with. Also, it would have recipes of food that you could use
to cook for your pet.
In the 15th
month we would introduce the feature of recording of psychological parameters, physical uneasiness
and veterinary suggestions for the pets. The owner can get a live alert if the pet shows more than usual physical
movement or is irritated or agitated at any point, the suggestion list of nearby and recommended vets will be
available at all times with suggestions and ratings from past pet owners’ experiences.
18 months from launch, a feature called ‘Pet Play Dates and Mating’ would be introduced. Now, that we have all
the data of the owners and their respective pets we could match them according to either pet requirements or
pet owners’ match of interests and they could agree upon a pet play date or a pet party. Also, since mating of pets
with a preferable breed is a task for many pet owners, the app would provide detailed description of registered
7. opposite breed pets and the owner could shortlist the ones he would want his/her pet to mate with and
accordingly on request, talk to the owner of the other pet to fix a meeting on mutual consent.
A ‘Pet Waste Scrubber’ will be launched by the 21st
month of initial launch. Assuming we have created a strong
user community we would now launch a new product in extension to the existing one- An automated biological
waste cleaner for the pets which would have to be manually switched on when required and would release a soap
cleanser and sanitize the area, with minimum hassle to the owners.
BUSINESS REVENUE GENERATION
Tie up with IKEA for their pet friendly furniture of line
called Lurvig, which includes everything from dog beds and
couch covers to cat tunnels and scratching posts. Providing
the owners, the good line of comfortable furniture and
IKEA with all the registered app users.
Big Basket: Paws & relax app tying up with Big Basket to
provide the daily treats requirements and regular refill
tracks as available on the apps. They can get the detailed
information of the breeds of pets’ available area wise,
their requirements and quantity of those required
products. Targeted advertising of those products in those
specified areas can be carried out for a better traction as
and when these features are introduced. This tie up would
help us get revenue out of the digital and online
advertising.
Vets: Tying paws & relax app with good veterinary hospital
for analyzing the health report launched after 9 months of
the product launch by studying the pattern of the food
consumption, and for study of the psychological parameters like heartbeat rates, breathing and body temperature
launched after 15 months. This app would have different reports and data tracked required by the Vets to be able
to identify the health conditions and required medical tests. These Vets would be available on app too for any
suggestions and these would be certified doctors to have an authenticity attached to this service provided by the
app.
Local Pet Shops: The Local pet shops have a better grasp of the area and hence can help us get a cross branding.
We would provide them with the data of the number of houses with pets and their dietary requirements. Below
the line marketing with the help of local shops would help in an easy penetration in minds of the customers.
The product will have 3 different modules integrated into a single unit. 3 modules will be assembled into 1 unit.
Any of the module can be taken out whenever required to upgrade or in case of any repair.
We have employed Exchange value model pricing which quantifies the price boundaries. By strategically
considering comparable alternatives and their differential value to calculate the exchange value, we have
reduced our uncertainty in pricing from a factor greater than 1000 to something closer to 3. Also, by reaching
operational efficiency we have made sure that there is a consumer surplus which means that the consumer
feels, he is getting more value than the price he is paying for the product.
8. PRICING2
Module 1:
Opaque container INR 500
Module 2:
Sensor Circuit INR 3000
Camera INR 4000
Microphone & Speaker INR 1000
LCD panel INR 4000
Module 3:
Feeding Smart bowl INR 1500
TOTAL COST INR 14000
S.P. (Cost + Margin (Includes Shipping
Charges))
INR 16999
Accessories:
Modular Adjustable Panel stand INR 3499
These costs are inclusive of all the variable costs and exclusive of all the fixed costs.
SUBSCRIPTION PRICING
Health report (Bi-Monthly) 7999 Per Annum
Food Recipes (Weekly) 1999 P.A. Or FREE with Any other Subscription
Auto Order 999 P.A.
Food Recommendation 999 P.A. or FREE with Any other Subscription
Strategy to counter the effect of low early adoption
Initially to capture the market and induce purchase of our products
we will keep the margins low by offering the product at a price
which is very close to the nearest comparable product. Consumers
will feel that they are getting much more value by paying the same
price and it will be a no brainer for them to buy this product.
CONCLUSION
Pets need to be cared for. Most pet owners across the globe
cannot afford to spend quality time with their pets owing to their
busy work lives. The advent of nuclear families and evolved
lifestyle patterns of the global population imply less time to spend
at home. The dietary habits and medications of pets need to be
religiously scheduled. This requires the pet owner to be home at
specific times of the day, thus restricting the owner from venturing
out for long. The solution to all these problems and worries is
“Pause & Relax” which takes overall care of your pet, be it physical or emotional.
2
Please refer Annexure A
Proposed Design
9. ANNEXURE A – PRICING
Online Selling-
Selling would be done through our own website and Amazon (since the reach is vast).
Amazon charges as per their pricing model are –
For our 5 kg product – INR 124(handling) + INR 40(fixed) + INR 30(standard shipping) = INR 194
Digital Marketing-
Purchase of Adwords, keywords to be purchased for search engine optimization and to increase awareness and
reach which would be variable from INR 5 to INR 50 depending on the popularity of the keyword.
Manufacturing Costs and Assembling-
A centralized manufacturing unit with regional assembling units, small is nature and hence the costs would not
be too high. Making/procurements cost are included above and other cost such as labor, plant costs, operations,
etc. would be high enough to almost negate the margin (given other initial costs) during the initial year but
reducing thereafter.
Promotional Costs-
Launch of our product would be aided by initial discounts on memberships or distributing memberships free on
purchase of the product to induce people to purchase our product. These costs would be there till a brand
identity is established. Range would be 10% – 12%, reducing the margins to 10% approx.
Cost Impact-
These costs are almost negating the margins but we are following a market penetration strategy (hence the
product price is INR 16,999/- with a margin of INR 3000) and relying on our product competiveness to attain a
good market acceptance following which we would be on our trajectory of normal profits which efficient
operations.