Free Essay

Petsmart

In: Business and Management

Submitted By zar722
Words 343
Pages 2
In spite of a weak economy PetSmart’s business was able to grow because of PetSmart’s strategy which includes a broad selection of products, growing pet services, full-service veterinary services, and competitive prices. Expanding services are important to PetSmart’s overall business success because it gives the company a competitive advantage as well as a larger margin than on products. PetSmart’s success tells me that the company has been able to identify trends between people’s age, race, household, and pets in which the company is able to provide the supplies and services to satisfy the consumer. In particular PetSmart has been able to provide products for US customers’ pets in which other countries would not find necessary. During the past two years, PetSmart’s services segment grew from $300 million per year to $525 million per year. Today, the services segment represents approximately 10% of total revenues.PetSmart is focusing on growing its services segment. If the services segment continues to grow at the same rate in the next two years as it did in the past two years, and if total sales remain “flat”, what percent of total sales will be from the services segment by the end of the 2nd year going forward? Services segment for the past 2 years grows at a rate of $300 million to $525 million.
Growth percentage = (525 million)/(300 million) = 1.75% for past 2 years. Services segment growth for the next 2 years =1.75% ($525 million) = $919 million. If the total sales remain “flat” at $5 billion in overall sales, the percent of services segment will be ($919 million)/($5 billion) = 18%. If the services segment does grow as indicated in #1, I think there is justification for a projection of overall sales to grow beyond the $5.1 billion level. The 8% growth of services segment accounts for $394 million in sales for the services segment alone. The $394 million or $0.39 billion will put the overall sales over the $5.1 billion level even if the other 3 segments stay “flat”.…...

Similar Documents

Premium Essay

Marketing Plan

...Invisible Leash to market. The Invisible Lease is a pet friendly containment and training tool that utilizes unique vibration technology in lieu of an electronic shock in a collar worn by the pet. The Invisible Lease Marketing Plan includes a current analysis of the market and competition, a marking strategy and implementation plan. A current analysis of the market shows that 62% of Americans own a pet and this percentage will continue to increase every year (IBISWorld, 2012). With pet owners spending more and more on their pets every year, there is definitely room for new innovative products. The Invisible Leashes SWOT Analysis reinforces that a strong product can overcome a competitive atmosphere. Invisible Leashes largest competitor, PetSmart, holds over 40% of the pet market (IBISWorld, 2012). Competitor with such a high market share will make reaching the potential customers a critical issue. One of keys to success is identifying with animal friendly organizations like PETA with Invisible Leashes vibration technology. Invisible Leashes Market Strategy coincides with its mission to “aspire to make every training event, a bonding experience between our four legged clients and their pet-parents”. A 1% gain in market share per year equates to about 270000 units sold and 27 million in revenues in our first year. With the goal of becoming the pet friendly and ethical alternative to the electric shocking competition, the Invisible Leash will share its product awareness backed......

Words: 4116 - Pages: 17

Premium Essay

Evaluation of Corporate Performance

...Evaluation of Corporate Performance – PetSmart, Inc. PetSmart is the largest pet retail chain that caters to all type of pet needs for the lifetime of the pet. The company employs 52,000 and currently has 1,289 stores. It also has more than 196 in-house pet hotels that specializes in boarding cats and dogs. PetSmart carries more than 11,000 products that include food, bedding, leashes, toys, training products and many books on all type of pets. PetSmart is a solid company and would be a good investment for the conservative investor. This company has a great web presence and offers over 10,000 products from their website http://www.PetSmart.com . This website offers a very convenient way for consumers to order their products online and have them delivered to their home without having to go to the physical store. This is important because not only does PetSmart have to compete with the chain stores such as WalMart and Kmart and Target, they also have to compete with online stores as well. PetSmart also has to compete with the common grocery store chains as well. PetSmart falls in the category of Specialty Stores. When evaluating this company I also had to look at the market sector that it falls into. Market Grade stated that PetSmart was ranked fifth in the Specialty Store sector. In first place was Ulta Salon, Cosmetics & Fragrance, Inc. followed by Bed Bath and Beyond, Inc. and coming in third was Winmark Corporation and in fourth place was Lumber......

Words: 2487 - Pages: 10

Premium Essay

Mba Marketing

...at the University of Iowa and to the Iowa City Chamber of Commerce and a local bank and bookstore, the University of Iowa Alumni Association is now online. Visit its web site at http://www.iowalum.com/ . a. Who are the target markets for the alumni association's Internet marketing efforts? b. What is being promoted to these individuals? c. What are the promotional objectives of the web site? 2. PETsMART maintains a web site that offers a store locator, a statement of the firm's low price guarantee, information about pet health and behavior, the opportunity to subscribe to a free eNewsletter, a gift shop, and community interaction. Whether customers have dogs, cats, birds, fish, hamsters, iguanas, or snakes, they can enjoy shopping for their pets at the PETsMART website at http://www.petsmart.com . a. PETsMART does not sell dogs or cats. Instead, it facilitates the adoption of thousands of homeless pets by building permanent adoption centers in all of its stores. Determine what pets PETsMART does sell. Why does PETsMART promote the adoption of dogs and cats? b. Locate the PETsMART store nearest your home. What information is provided as a result of the search? c. Use PETsMART's website as an example to describe the communication process. How can noise affect the process? Online Exercises 17 1 .The LEGO company has been making toys since 1932 and has become one of the most recognized brand names in the toy industry. With the company motto "Only the best is good......

Words: 4016 - Pages: 17

Premium Essay

Test

... What these environmentalists failed to research is that Yorktown Technologies had already taken the necessary precautions with dozens of international scientists to ensure that the ecosystems are collaborated properly and is safe (Allen, 2012). While the distribution strategies are having challenges, marketing is seeing some downfall as well because the GloFish is not as appealing to the consumer as anticipated; therefore, the number of sales had not been reached (Kerin & Peterson, 2009) Case Analysis Yorktown Technologies has not yet reached its full potential in marketing strategies even though it has increased its sales slightly every year. Unfortunately, the large conglomerate retailers such as Wal-Mart, Petsmart and PETCO selling the same and similar products, it makes it challenging for Yorktown Technologies to move forward. Yorktown Technologies has even made product enhancements, provided consumer and retailer education, and made distribution decisions to enhance productivity and these overall improvements have not made any impact. Alan Blake said, “There is a way to reach the large market for ornamental fish. We will achieve this goal by modifying our marketing strategies so that we will continue to be successful.” This is a bold statement considering that 1 out of 8 Americans own a fresh water aquarium (Kerin & Peterson, 2009). Unfortunately, this might pose a potential problem because of the environmental groups who are......

Words: 1784 - Pages: 8

Premium Essay

Petsmart Company Report

...PetSmart, Inc. (NASDAQ: PETM) As the largest specialty pet retailer of services and solutions for the lifetime needs of pets, we employ approximately 52,000 associates and operate 1,289 stores and more than 196 in-store PetSmart PetsHotels® dog and cat boarding facilities in the United States, Canada and Puerto Rico. We provide a broad range of competitively priced pet products and in-store services including pet adoption, boarding, grooming and training. Our stores are stocked with more than 10,000 products and we’re also a leading online provider of pet supplies and pet care information (http://www.petsmart.com/). Through our in-store pet adoption partnership with PetSmart Charities®, PetSmart has helped save the lives of more than 5 million pets since 1994. PetSmart Charities, Inc. and PetSmart Charities of Canada, Inc. (“PetSmart Charities”) are independent, nonprofit organizations that save the lives of homeless pets and reduce shelter intake through spay/neuter efforts. In 2012, nearly 450,000 dogs and cats found homes through the organization's adoption centers in all PetSmart stores and by sponsoring community adoption events. PetSmart Charities is the leader in granting money to help pets in need, with more than $28 million given in 2012 throughout North America. We operate 196 in-store PetSmart PetsHotels dog and cat boarding facilities. These overnight boarding facilities feature associates who are hand-picked for their love of pets and at least one......

Words: 413 - Pages: 2

Premium Essay

Internal Control Procedures

...Internal Control Procedures For Petsmart Jayla West University of Phoenix August 31, 2014 I chose Petsmart as my topic for my paper. Mainly because I have pets and that is where I purchase all my necessities for the animals that I truly treat like my kids. I thought it would be interesting to see what the internal procedures for this company are. Petsmart has an audit committee which is selected by the Board of Directors, and is comprised of at least three board members who remain independent of the company and the management team. This is mainly because of the NASDAQ National Market rules that are in place and must be followed. By following these rules outlined, all committee members will meet the financial literacy requirements of the NASDAQ, and at least one member will meet the financial expertise required by the NASDAQ. The purpose of the Committee is to assist the Board in fulfilling its oversight responsibilities relating to the integrity of the Company’s financial statements and accounting and financial reporting processes; the audit of the Company’s financial statements; the compliance by the Company with its systems of internal accounting and financial controls and legal and regulatory requirements; the independence of the Company’s external auditors and the performance of the Company’s external and internal auditors. The committee is allowed access to all financial books, records, facilities, and personnel of the company in order to......

Words: 1140 - Pages: 5

Premium Essay

Doggie Grooming

...website looking through there are several company that offer most of the same product as the expansion company. PetSmart PetSmart is one of the largest pet supply retailer with over 1160 stores nationwide with location in the United States, Canada, and Puerto Rico. PetSmarts website is exceptionally strong, with bold graphics visually engaging, Bright vibrant colours easy to follow lay out that response to one click of the mouse instantly. A complete range of products are offered, including food, toys, cages/furniture, health care products, dog daycare and obedience training. Included in the website is a search engine so if customers are searching for a produce that cannot be found in the multitude of category’s offered, you can search. E- Commerce The PetSmart website offers a full featured e-commerce capabilities, this feature will only allow purchases if you are register, registration is an easy, account identification and passwords are set up by the customer. Once the account identifications is set up the customer can click and add any items to their cart, when finished with the purchases the customers can continue to checkout where they can use any major credit card, PayPal, and “ Bill Me Later” sale tax and shipping charges are immediately added. They only drawback would be for people with concerns about online privacy. Social Media Petsmarts website is incorporated with Facebook, Twitter, Pinterest, and U Tube, accessed by icons at the both of the web......

Words: 3822 - Pages: 16

Premium Essay

Business Proposal

...on the competitor in the market and the money that we need to produce it. With how unique GPawS is the price ranges accordingly; Small- $59.99 and then adds ten dollars each through a Medium, Large and X-Large. For additional prices the Heat sensor is $39.99, Heat/Activity Tracker- $39.99, Tone Trainer- $39.99 and a Customized tag for $9.99. Every customer who purchases a collar from us get to download our App for free. The App consist of 7 clickable icons once the app is opened, the user will simply click on the icon of their need and let the app and collar do the rest, keeping it very simple and user friendly. There are three competitors up against GPawS, they are Whistle, PetSmart and Tagg. Whistle has a product that attaches to the collar itself and measure the activity of the animal. PetSmart is the top pet industry, which provides a big variety of products which one is collars and certain attachable accessories. The last competitor is Tagg, they provide a GPS pet tracker with a docking station that connects to the device itself. There are 4 P’s in marketing that is referred to as the marketing mix. These include product, place, price, and promotion. GPawS offers a product that is the most customizable animal collar on the market. GPawS offers the cheapest customizable collar on the market. Our goal is to make customers feel that the price they pay for our collars is worth every penny. GPawS will mostly focus on online sales through our website, we also understand......

Words: 4781 - Pages: 20

Premium Essay

10k Analysis

...| PetSmart Inc. | PetSmart; NASDAQ; PETMhttp://www.sec.gov/Archives/edgar/data/863157/000086315714000040/petm-20140202x10k.htm10K SEC Analysis | | Salvador Galvez | 3/18/2015 | | PetSmart Analysis PetSmart was incorporated in Delaware in 1986 and opened its first store in 1987, their headquarters are currently located in Arizona. The fiscal year for PetSmart end on the Sunday closest to January 31. As of 2013 they have a total of 1,333 stores in the U.S, Canada and Puerto Rico. PetSmart has become a leader in providing pet products and services to pet owners in North America. A key strategy is to become the preferred provider for the lifetime of pet needs. The market for PetSmart has only grown over the year and it will continue to grow. The amount that customers spend on pet needs as of 2013 was $55.5billion dollars. 68% of household have pets that is roughly 82 million households that have pet needs. PetSmart outside auditors are Deloitte & Touche LLP and they are located in Phoenix, Az. Inventories According to PetSmart 2014 10k in notes to consolidated financial statements (pg F8) inventory is recorded at their lowest cost of market and the cost is determined by a moving average. Inventory physical counts are preform on a regular basis and will be adjusted accordingly. PetSmart contains inventory reserves for obsolescence and to reduce inventory to the lower cost of market. Inventory is evaluated for excess, obsolescence, or any other......

Words: 725 - Pages: 3

Premium Essay

Petsmart

...I chose Petsmart as my topic for my paper. Mainly because I have pets and that is where I purchase all my necessities for the animals that I truly treat like my kids. I thought it would be interesting to see what the internal procedures for this company are. Petsmart has an audit committee which is selected by the Board of Directors, and is comprised of at least three board members who remain independent of the company and the management team. This is mainly because of the NASDAQ National Market rules that are in place and must be followed. By following these rules outlined, all committee members will meet the financial literacy requirements of the NASDAQ, and at least one member will meet the financial expertise required by the NASDAQ. The purpose of the Committee is to assist the Board in fulfilling its oversight responsibilities relating to the integrity of the Company’s financial statements and accounting and financial reporting processes; the audit of the Company’s financial statements; the compliance by the Company with its systems of internal accounting and financial controls and legal and regulatory requirements; the independence of the Company’s external auditors and the performance of the Company’s external and internal auditors. The committee is allowed access to all financial books, records, facilities, and personnel of the company in order to properly discharge the responsibilities of the committee to the company. The committee has the power to investigate......

Words: 1111 - Pages: 5

Premium Essay

Petsmart Company Analysis

...Petsmart Company Analysis In 2014 there were twenty five top pet specialty chains in North America. Petsmart is number one with 1,289 stores nationally as of January 1st, 2014. All of these chains have strengths and weaknesses. They also have opportunities to improve in several areas. Many of the threats that they face are the other big competitors. This analysis will focus on Petsmart strengths and weaknesses while touching on the history of the company. Many opportunities will be addressed as well. Petsmart is a well-known brand that lacks motivated employees but has the opportunity to grow outside of the United States unless there is another economic decline. (Kalaygian) In 1987, Jim and Janice Dougherty opened a company called, The Pet Food Warehouse selling large bags of dog food at discount prices. This concept was new to the pet industry. In less than two years the warehouse was losing money and not attracting investors. The Dougherty’s were removed and Sam Parker was hired as a chairman because he could exert managerial control. He turned Pet Food Warehouse into Petsmart, Inc. Petsmart, Inc is the largest operator of pet food, pet supplies, and pet services in the United States. It is a $29 billion industry. All of their stores were larger than 18,000 square feet and had more than 12,000 items. In 1999, they launched their website PetsMart.com which became the leading provider of pet information and products that were available on-line. The firm...

Words: 1122 - Pages: 5

Premium Essay

Hdkgfkbg

...Day 2 - Angles…Headlines and a following quote EXERCISE Your task in this exercise is to create an angel for a feature about Donald Beaver, Senior Vice President and Chief Information Officer at Petsmart Corporate office in the USA. 1. Here are a few very short pieces of information about him…read them and decide which pieces might make for the most interesting angle…yes, there is more than one interesting angle here! Donald Beaver joined PetSmart in May 2005 as senior vice president and chief information officer. Beaver previously held the position of senior vice president and chief information officer for H-E-B Grocery Company from 1999 to 2005. Prior to that, he served 14 years at Allied Signal Aerospace, Inc. Beaver started his career at Eastman Kodak. Since 1994, PetSmart Charities, Inc., an independent, nonprofit 501(c)(3) organization, has created and supported programs that save the lives of homeless pets, raise awareness of companion animal welfare issues and promote healthy relationships between people and pets. The largest funder of animal welfare efforts in North America, PetSmart Charities has provided more than $165 million in grants and programs benefiting animal welfare organizations and, through its in-store adoption program, helped save the lives of nearly 5 million pets. Dogs and their pet parents grow smarter each year with help from our accredited pet training instructors. In addition to ensuring pets are happy, well-behaved members......

Words: 375 - Pages: 2

Premium Essay

Retailer Analysis

...A. History of the Company:  Who did you interview?  (Full name and position.) How long have they been in business? According to the company website, Petsmart started out as PetFood Warehouse with 2 stores in Arizona in 1987. The Oshkosh location opened up for business in February of this year (2016). How has their business changed over the years?  The original founders started off in the pet industry in 1986 as a pet food distributor under the name of Pacific Coast Distributing. Only a year later, they decided to take their pet superstore concept and apply it to physical retail stores. They opened up 2 stores in Arizona in 1987 under the name PetFood Warehouse. Committed to further developing their business, they decided to switch names to Petsmart in 1989. Due to rapid expansion after the name change, they hit 50 physical retail stores by 1992. By going public in 1993, the original founders idea took off and today they boast over 53,000 associates, in over 1433 locations through out the U.S., Canada and Puerto Rico. What is their mission statement? Taken directly from Petsmart.com, their mission statement is: We believe pets make us better people. That’s why we create more moments for people to be inspired by pets. Do they plan to expand, penetrate, diversify, or change their retail format in the near future? B. Retail Strategy  1. Who is their Target Market: Define their customer according to demographics (age, gender, income......

Words: 1022 - Pages: 5

Free Essay

Del Monte Lbo

...socially. Social networking was not new in 2009 but the successes of the early adopters such as @PetsitUSA and @petrelocation are driving more and more pet businesses online. Pet-related small business owners have always known the power of numbers and are turning online to get noticed, one shopper or one business partner at a time, on Twitter, Facebook, and LinkedIn. Many rescue organizations are using social networking as part of their funding drives such as the ASPCA and The Humane Society. 7. Larger players get larger. Target and Wal-Mart are both expanding their pet selection and in the case of Wal-Mart, their services. Big box pet specialty retailers, such as PetSmart, continue to grow and PetSmart recently saw 9+% growth in its pet services, fueled by grooming services and new pet hotels. If PetSmart is feeling any pinch from Wal-Mart’s entry into pet grooming, there is no evidence of it at this point. 8. Customers tell it like it is, whether you like it or not. Sales of items such as electronics and books have long benefited (or not) from online reviews and passionate customers stating their views on their purchases for good (or bad.) Pet products and services are now catching up with the growing popularity of review sites such as www.petinsurancereview.com, product reviews on Amazon.com, and instantaneous feedback on Twitter. Companies that ignore the impact of these sites are going to be playing catch up in future years. 9. Increased online sophistication......

Words: 1541 - Pages: 7

Free Essay

Petco

...small animals and birds. They do not sell dogs and cats due to over-population; however they do sponsor pet adoptions and can refer customers to variety of breeders. Even though they do not sell dogs and cats they still offer a variety of products and services that fulfill the needs of these types of animals. PETCO sells a variety of different products amounting to more than 10,000. These products include a variety of foods, toys, medicine, shelter and many other items that pet need on a daily basis. PETCO also provides a plethora of different services including grooming, obedience classes and veterinary clinics. PETCO went public in February of 2002, and is the second largest pet supply specialty store in the United States. PETsMART is the number one in the industry and other competitors include Kroger and Wal-Mart. In 2003, PETCO’s sales were $1,476.5 Million. Their current stock price is 37.73 + 0.07. (www.hoovers.com and www.petco.com) CHAPTER 1: THE STRATEGIC MANAGEMENT PROCESS Mission Statement PETCO’s mission statement is “to become the leading category-dominated national chain of community pet food and supply superstores by offering its customers a complete assortment of pet-related products at competitive prices with superior levels of customer service.” (Mikus 1) PETCO strives to be the number one premium pet supplies retailer in the United States. They plan on doing this by placing their stores in convenient locations within communities......

Words: 5322 - Pages: 22