Market Research Report for SNOGGO 「XX DOG BAKERY P epared for Dr an Prepared by May9,1997
V.V.& L.s. esearch inc 1705 Espina Las Cruces, New mexico 8800 05)521-3289 May 9, 1997 Mr. Beau Gilbert. President Snoggles Dog Bakery 6111 Los hermanos ne Albuquerque, NM87111 Subject: Market Research Report for Snoggles Dog Bakery Dear Mr Gilbert: Enclosed is the market research report for Snoggles Dog Bakery that you requested. This report study was approved on February 17, 1997, and is now completed The results from the survey data collected was inconclusive. We recommend that another primary study will need to be conducted to make any major decisions concerning the objectives. We suggest that a random sampling method be used in the future for data collection due to the fact that using a convenience sample produced skewed results. Projects results are extremely informative and should be considered when structuring future studies. It will give you a general idea of what to expect. We also recommend that sccondary data be used. It may provide helpful information about the dog biscuit market at a lower cost. We are grateful to Snoggles Dog Bakery for giving us an opportunity for conducting a primary research study on all natural dog biscuits. Feel free to port,or if any questions arise. Please keer us up to date with your decisions after reviewing this report
Table of contents Snoggles Dog Biscuits Albuquerque Area Survey Results Letter of transmittal Executive Summary Research Introduction Results 5-12 Consumer Behavio Demographics Limitata Conclusions 13 Recommendations 14 Research Prop Survey Design Frequency tables Cross Tab Tables
EXECUTTVE SUMMARY Background Pets are ranked as the third largest animal industry in the United States. annually the dog and cat food industry gross sales of nearly $9 billion, which consists of canned dried, and semi-moist products, along with snacks and treats. Because two-thirds of ll adult dogs are overweight, there is a need for low-calorie, lo-fat, and lite products The pet industry has the potential to become very profitable if they can target the right market. Snoggles Dog Bakery is a company that will be niche marketing all natural dog baked biscuits in the Albuquerque area. Snoggles Dog Bakery' s mission is to bake and distribute fresh healthy dog biscuits by utilizing natural ingredients Snoggles plans to open a dog bakery in Albuquerque within the next two years. The purpose of this study is to learn more about the dog food industry in the Albuquerque area. This information will be used by Snoggles Dog Bakery to get an idea of what its target market is and to make decisions regarding how they want to focus future search projects Several key areas were identified when determining the boundaries of this study.The following were the specific research objectives: identifying the target market and characteristics that exist in the dog biscuit market, determining if the product has potential, discovering how much the consumer is willing to invest in their pet, and identifying methods of reward that consumers display to their pets An exploratory resecrch study was conducted in the Albuquerque area for Snoggles Dog Bakery which consisted of primary data gathering. Snoggles needed an inexpensive, convoniont, and officient way of collecting data about dog owners behaviors, interests, and preferences in Albuquerque. People who are pet owners purchase dog biscuits for other peoples pets in the Albuquerque area were eligible for participating in the research study. Respondents were selected by convenience sampling. Out of 200 surveys, only 141 were answered and collected for a% response rate. The surveys successfully answered used a statistical method for analyzing the results, which was obtained through the use of SPSS Statistical Analysis Computer Program. Throughout the use of this program mean, frequency and cross tabulation data was generated which reflects the results of the report Results Consumer Behavior The majority (68%)of the respondents give dog biscuits to"reward good behavior and 43% ranked"pampering"as the second most popular reason to give do biscuits. Fifty-four percent of the respondents between the ages of 19-29 garve biscuits to their dogs to pamper them. Income has no impact on the reasons respondents give biscuits"to their dog The majority (74%)of the respondents viewed"doy biscuits"us the number one treat The second most popular treat was" affection "with 60% followed by"dog toys, "(43%)
"people food, (41%): walk,"(26%); " give nothing. "(7%)and"other,"(6%). Sixty-one percent of the respondents between the ages of 19-39 gave"affection as a treat There is a relationship between giving"affection as a treat household income When the respondents income bracket increases the percentage of respondents answering yes they gave"affection as a treat"decreases Thirty percent of the respondents replied that they purchase dog biscuits"1-2 weeks ago"followed by 27% who purchased dog biscuits"3-4 weeks ago. " Fifty-seven percent of the respondents purchase dog biscuits in a 1-4 week time period The majority(45%)of the respondents purchased their dog biscuits at grocery stores followed by 31% who purchased at Petsmart Product Attributes The majority(64%)of respondents preferred"traditional beef flavor. The next most popular flavor was"veggie"with 44%, followed by"oatmeal raisin"and"peanut butter"with 41% each. Thirty-eight percent of the respondents preferred " granola followed by"carob"with 43%, " cheese"with 34% and"mint"with 31%. These resull indicate that all the flavors show a significant amount of respondent interest Forty-three percent of the respondents preferred small dog biscuits and 36% preferred medium. Two dollars and twenty-five cents is the average price respondents are willing to spend on a box of fifteen medium dog biscuits Price"was ranked as the most important feature by 31.6% of the respondents, followed by"quality"with 24.7% and "nutritional value"with 20.8% Demographics Eighty-one percent of the respondents owned a dog. The typical number of dogs per household is 1. 5 with an average age of 5.4 years Forty-two percent of the respondents are between the ages 19-29. Thirty-three percent had completed"some college" while 30% are"college graduate's "Twenty-seven percent of the respondents are "students. The majority(28%)of the respondents had a total income"<20,000-$24,999 Conclusions Income has no impact on whether or not respondents give their dogs biscuits. Dog biscuits are the number one treat given to dogs. Lower income respondents will purchase, less dog biscuits than higher income respondents. Respondents purchase dog biscuits in a 1-4 week time period. This purchase tends to occur more frequently at grocery stores and Petsmart. There was a significant amount of interest in the eight flavors of dog biscuits surveyed (traditional beef, veggie, oatmeal raisin, peanut butter, granola, carob, cheese, and mint). The majority of respondents preferred small dog biscuits and price was the most important feature considered when purchasing
Recommendations The result's of this report are not intended to provide conclusive evidence from which to determine a particular course of action. It should be noted that subsequent research will bo required to provide such conclusive evidence. Future research should be directed to a target audience about specific objectives. The new research study should be conducted more scientifically to obtain the results needed to make business related decisions. Ordinal and interval data questions should be asked to help in analyzing the data. A larger sample size and a random sumple iechnique should be used in order to obtain meaningful data
SNOGGLES DOG BAKERY SURVEY RESULTS Introduction Pets are ranked as the third largest animal industry in the United States. People invest great amounts of time and money in to their beloved animals. Annually the dog and cat food industry gross sales of nearly $9 billion, which consists of canned, dried, and semi-moist products, along with snacks and treats. No longer are they fed only scraps from the table. In view that two-thirds of all adult dogs are overweight, there is a need for low-calorie, low-fat, and light products. This rapidly growing industry holds a great opportunity for the newly emerging entrepreneur or business. The pet industry has the potential to become very profitable if they can target the right market Businesses and advertisers know that pet owners love to indulge their pets and are willing to spend the money to do so. today you see more and more businesses taking advantage of this and breaking into the growing pet industry market Snoggles Dog Bakery is a company that will be niche marketing all natural doo dke barked biscuits in the Albuquerque area. Snoggles Dog Bakery s mission is t and distribute the fresh healthy dog biscuits by utilizing natural ingredients in reusable and refillable containers. This in turn will satisfy all dogs and their owners Snoggles plans to open a dog bakery in Albuquerque within the next two years. The bakery will primarily scll a varicty of all natural healthy dog biscuits and will offer other dog paraphernalia that customers can purchase for their dogs The purpose of this study is to learn more about the dog food industry in the Albuquerque area. Snoggles has contracted V.V. and L S Research to conduct an exploratory study in order to determine the market potential of Snoggles dog biscuits The research will be conducted in order to discover interest in all natural dog biscuits This information will be used by Snoggles Dog Bakery to get an idea of what its target market is and to make decisions regarding how they want to focus future research projects Objectives Several key areas were identified when determining the boundaries of this study. The following describe the specific research objectives To identify the to market and characteristics that exist in that market To determine if the product has potential To discover how much the consumer is willing to invest in their pet To identify methods of reward that consumers display to their pets
Methodology VV& L.S. Research conducted an exploratory research study in the Albuquerque area for Snoggles Dog Bakery which consisted of primary data gathering. Snoggles needed an inexpensive, convenient and ani efficient way of collecting data about dog owner's behaviors, interests, and preferences in Albuquerque. In order to meet these needs a structured questionnaire was designed. The survey included a variety of questions(such as category scale, constant sum and likert)which related to the research objectives. The survey was collectively designcd by V.V.& L.s. Rosearch The President of Snoggles Dog Bakery assisted with the survey collection People who are pet owners or purchase dog biscuits for other peoples pets in the Albuquerque area were eligible for participating in the research study. Respondents were selected by convenience sampling. The distribution of the surveys was executed two. Respondents taking their dog for a walk in the park were intercepted ar were obtained through store interception at Petsmart in Albuquerque, M d others The ainn was to distribute and collect 200 surveys. Out of those 200 only 141 were answered and collected for a 71% response rate. Some of the surveys were incomplete and contained missing answers. V.V. & L.s. Research believe that the problems encountered were due to the fact that the survey directions may have been somewhat vague amd/or lacked attention given to the questions by the respondents which was obtained through the use of SPss Statistical Analysis Computer Program Through the use of this program mean, frequency and cross tabulation data was generated which is reflected in the results of the report RESULTS Consumer behavor Reasons To Give Dogs Biscuits Frequency: The majority(68%)of the respondents give dog biscuits to"reward good behavior. "The second most popular reason to give dog biscuits was" pampering with 43%.The ranking after the top two are as follows: "training, (39%); "leaving dog aione,"(38%);"fresh breathe, "(28%); "cute behavior, "(26%). The next grouping of responses are:"out of habit, "(19%); "no reason, "(15%);"distract attention, "and"stop annoying bahavior, (14%)each. (See Graph 1.1)
Reasons To Give Dogs Biscuits 岛8卫 10.00 0 9>mo Re asons Graph lI Income: Cross tab analysis es that there is no relationship between giving dog biscuits to"reward good b and"household income There was also no relationship between giving biscuits for"pampering"and"household inco suggests that income has no impact on the reasons respondents give biscuits to their dogs Age: Cross tab analysis indicates that age plays an important factor in determining why consumers give their dogs biscuits. When a cross tab analysis was run on pampering"and"age"of respondents an underlying relationship was discovered The majority(54%)of the respondents who answered yes, that they give biscuits for pampering, were between the ages of 19-29. These results suggest that this age group indulges their pets due to the fact that this is the first pet they have ever owned When another cross tab was run on"leaving dog alone"as a reason for a treat and age"another significant relationship was discovered. The age group "<18 had the owest percentage(2%)of respondents who answered yes. This can be attributed to the fact that most of these people are not the primary owners of the dog and they are generally not the ones leaving the dogs alone. The rest of the respondents had a higher percentage that ranged from " 19-29"with 35%to"40-49"with 10%. This can be attributed to the fact that most of these people are in the work force and/or attending school. Subsequent cross tab analyses run on the rest of the reasons for giving a treat turned up no relationship Types of Treats Given Frequency: The majority (74%)of the respondents viewed"dog biscuits"as the number one treat. The second most popular treat given to dogs is"affection"with
(41%),"walk, "(26%);giving nothing, "(7%)and"other, "(6%).(See Groph\2/od 60%. The ranking after the top two are as follows toys, "(43%);"people fo Top Treats Given To Dogs 8000 000 Affection People GNe Biscuits Reasons Graph 1.2 Income: Cross tab analysis indicates that there is no relationship between giving dog biscuits as a treat"and"household income. " This suggests that there is an run between"affection as a treat"and"houschold income"a strong relationsh owas inelastic demand for dog biscuits among pet owners. When a cross tab analysis was emerged. Thirty percent of the respondents that give affection to their dogs are in the $22, 499 below rang income bracket. When the respondent's income bracket increases to $27, 499 the percentage drops dramatically to 14%. The percentage continues to fall as the income brackets increase. This implies that people in a lower income bracket cut down on the costs associated with pets by showing them love and people in a higher income bracket find alternate methods of treating their dogs. as subsequent cross tabs were run on the treats given to dogs no relevant relationships were discovered Age: Cross tab analysis indicates that age plays an important factor in determining what consumers give to their dogs as treats. When a cross tab analysis was run or affection given to dogs as treats"versus"age"of respondents an underlying relationship was discovered. The majority(61%)of respondents who answered yes, their dogs. This suggests that this age group should not be considered a potent 6B that they gave"affection as a treat, "are between the ages of 19-39. Another cross ta was run between"people food given as a treat"and"uge. The rnajority (43%)of the respondents between the ages of 19-29 said, yes they give"people food as a treat target market. As with income no relationship existed between"age"and"dog biscuits as a trea