Blog #4: Personalized Topic Report

As I started to research topics for my paper, my dog Bentley kept nudging me for attention. He’s my three-year-old poodle-mix that has been a big part of my life since my senior year of college. I love my pet. I’ve written about him in previous blog posts, but these visuals show what a big part of my life he is. I bring Bentley everywhere!

So, I started thinking about all of the pet owners that are probably like me – or are a more extreme version of me. My dog is a part of my family, and I worry about his health. I want him to have a good life. I’ve tried various ‘healthy’ foods for my dog, he has at least ten toys and he gets exercise regularly. I also am always conscious about planning my schedule so that either a friend or I am able to let my dog outside during the day. He’s my buddy, but I also felt safer living alone when I had a dog. What do these behaviors mean for marketers and advertisers?

Advertisers seem to have picked up on this growing market segment because I’ve seen more advertising involving pets the last few years. There are also all kinds of pet contests! I just came across this WholeFoods contest today. I also see advertising for Walgreens pet meds every time I get on the bus to school.

There must be a strategy and interesting insights behind why these advertisements were created, and I would like to learn more. I’m interested in learning more about this demographic and the key customer insights for pet owners. So, I decided that my topic is about understanding America’s Pet Owners and the innovative ways brands are trying to reach this market segment. After further research, I would like to be able to give recommendations about what brands could do further in this space. I will use the Mintel report (America’s Pet Owners – US 2012) in addition to current articles to examine this type of customer. This Mintel report gives an overview of the market size and forecast, market drivers, segment performance and issues in the market. This report also gives insights into the consumer’s spending habits, perceptions of a pet’s primary role, attitudes toward treatment of pets, the social and entertainment roles of pets vs. technology and shift in spending on pet-related items. The report also goes into further details about this consumer. This report also touches on marketing strategies and innovations/innovators from a brand/company perspective. An example given for innovation in pet products is DogPacer’s MiniTreadmill. Pet owners that are concerned about their pet getting adequate exercise can buy a dog treadmill. I didn't realize this type of pet product was on the market!

In addition to this Mintel report, I will use current articles to add to my research. Pets Are Serious Business for Marketers is an interesting Forbes article that came out in April 2013. This article opened with “Pets are serious business. A recent American Pet Products Association report revealed that spending on pets hit a record $53 billion in 2012–a three-fold increase since 1994. Will we break another record this year? Probably. Because today nine in 10 pet owners see their pet as a member of the family.”

If spending in the pet industry is continuously growing, it would be valuable for marketers to gather and identify key customer insights for this segment. Even if the brand is not necessarily in the pet industry, it could be valuable to engage with customers that show loyalty to their pets. Perhaps this level of loyalty is also applicable to other areas of their life.

This Mintel infographic (from the report cited above) is an interesting look at America’s Pet Owners.

This infographic has many noteworthy points. Pet owners are interested in “innovative technology that promote, or better yet improve, their human-pet interactions.” Additionally, “almost half (47%) of pet owners believe that having a pet is better for your social life than social networking sites.” Again, the sentiment is reiterated that most pet owners consider their pets to be part of their family. Another noteworthy insight is that “The pet services segment is the fastest growing portion of pet related retail and, though only a relatively small percentage of pet owners use these services, pet owners have proven price-insensitive and eager for innovation.” If pet owners are eager for innovation, this could be a great opportunity for brands that are playing in and entering this space.

According to the Forbes article mentioned above, IKEA Germany built “dog parking lots” which is an Astroturf space for your dog to hang out while you shop. “This move not only bakes the idea of pet-friendliness into the core service, it adds real value to people’s lives.” I think this is a brilliant and innovative way to engage with pet owners. IKEA found a way to give pet owners a better shopping experience, and further differentiate the IKEA brand.

Additionally, the Forbes article stated, “Americans’ deepening identification with their pets creates a big opportunity for brands. While today most of the money spent on pets is for food, veterinary care and boarding, trends suggest a willingness to indulge our pets in other ways. Today’s pets travel and exercise with us, have their own social-media accounts, require stimulating day care, eat organic food, doze on luxury fabrics and even quaff doggie beer. The opportunities for brand extensions seem almost limitless. Like Travelers, Subaru and Toyota, brands that recognize pet love can make stronger connections with their customers.”

If there is a big opportunity for brands to cater to pet owners in the US, I want to be able to analyze this from a design thinking process. I want to do a deep dive into this topic to see the full potential for brands targeting these consumers. The purpose of this blog post is to layout my preliminary thoughts and research that will act as a guidepost for this paper. I want to further understand what is making this industry grow, and what consumers value most from the companies that are advertising and marketing to them.