Situation Analysis on PetSmart for my Adv/PR Research class at UTK. I specifically contributed mainly to the "Client Profile" section. However, much of this project was a team effort.

1. Introduction Through this research, we have found that PetSmart should hone in on the
“pet parent” as a core demographic. “Pet parents” view their pets as part of
the family and see this animal as a huge priority in their lives. This
demographic is extremely important because of the growth we have seen
from it in the last decade. Today, people are increasing more likely to agree
that they are a “pet parent.” Efforts to target this market segment should be a
retailer’s main focus.
We also examined PetSmart’s competitors in this research. Petco is
their main competitor, along with major supermarket chains like Target and
Walmart. Each of these stores offer something a bit different than PetSmart,
but PetSmart has a heads up on these other stores because of their expertise.
This competitor analysis in down in the Situational Analysis, which
provides great insight into the pet superstore industry.
After the Situational Analysis’ secondary research had been
conducted, we moved onto a more direct research, primary. We completed
this research by conducting a survey and focus group. Our survey was
conducted online using QwikSurvey to the “pet parent” demographic. We
did have a few people begin the survey who were not “pet parents,”
however, we used a question to screen our participants. We got 122
participants to take our survey by emailing the link out to family and friends
who could be categorized as someone who views their pet as their top
priority. This survey gave us lots of insight into the beliefs and attitudes of
our target market. We were able to see how they thought and viewed certain
pet ideas and products, which allowed us to grasp our demographics' buying
Jim and Janice Dougherty first conceived the idea for a pet superstore in 1986; habits. We observed this by asking questions that observed monthly
however, the first two stores did not open up until 1987. The stores opened in Arizona and were spending and shopping frequency. This survey gave us a lot of insight. For
called PetFood warehouse. Shortly after opening, the names changed in 1989 to the official and example, men and women are not very different in terms of cause related
current name, PetSmart. The company started out by opening each store individually but then marketing and women tend to value quality over price.
began to buy out smaller chains to better adapt to the quickly growing market. After the survey was conducted and we had enough participants,
In the following decade PetSmart expanded its business by offering a variety of we began analyzing the data. This qualitative data gave us more to go on
services. It began to offer full-service pet salons, mobile pet clinics, an equine department, pet than the quantitative data that we had in the Situational Analysis. We
adoption centers, and the list continues to grow. Not only did PetSmart expand its company in downloaded our results onto SPSS which provides more in-depth insight
the competitive market but it also began charitable foundations and in 1994 formed PetSmart from charts and tables. We also conducted a focus group that gave us more
charities. Many of its efforts went into preventing pet overpopulation and euthanasia. These insight to our survey results. We created a Moderator Guide and objectives
efforts allowed PetSmart to open its 1000th store in 2007. to help keep us on track during our focus group. The qualitative data was
The current trend in the pet superstore industry is focused on pet health. PetSmart is very important to our research as it helped us make recommendations to our
promoting nutrition for animals by using natural products. Even through the economic client, PetSmart and to also understand the consumer further.
downturn people are treating their pets like family and are becoming increasingly conscious of All in all, after conducting both qualitative and quantitative
the health of their pets. They are currently moving away from the “mart” mentality to the research, we gained valuable insight into the “pet parent” demographic.
“smart” mentality when it comes to caring for your pet, which is why they have steered away These recommendations include pet adoption, chartity awareness, quality,
from PetsMart. and changed their name to PetSmart. Instead, PetSmart wants to be viewed as a clever advertisements, and incentives. We are now more accuratly able to
pet specialty store who trains its employees to specialize in an array of pet products. This target this market segment because of our research efforts.
knowledge is portrayed not only by its employees expertise but also from the services the it

2. Industry Overview
Brief History
Although historians are not positive as to when humans first started keeping animals as pets, they do know that dogs were one of
the primary animals to be domesticated. In ancient Egypt, dogs and cats were animals of great importance. Taking the life of a greyhound
held the same consequences as taking the life of a man. The Egyptians considered cats to be demigods or “half-gods” and began
domesticating wildcats from Africa. Because of their high status, they were prized and had higher importance than a human. If a house
was burning down, the cat would have been saved first. The Romans domesticated animals as well. Unlike the Egyptians, cats and horses
were both used as working animals. They instead regarded birds and dogs as pets.
Towards the Middle Ages, pets were a luxury only to be had by the upper classes. Because of the infamous witch-hunts, many
owners and their cats were put to death on accusations of witchcraft. This jumpstarted the popularity in dogs as pets.
The first pet food to be created was bird food. During the 1800s many people owned birds for their singing abilities. Shortly after
this, the first dog food was invented in 1860.
World War II brought about the idea of canned dog food and in the 1920s people began to keep reptiles as pets. The first cat litter was
created in 1947, making it much more practical to keep a cat as an indoor pet.
With all of the advances in technology and information, people began to create different types of pet treats and products. It was
only a matter of time for companies like PetSmart and PetCo to enter the scene.
Timeline
1965 Walter Evans opened veterinary supplies
business called United Pharmaceutical
Company, or UPCO
1980 Petco opens first store outside of California
1986 PetSmart founded by Jean and Jim Daugherty
as Pacific Coast Distributing, Inc.
1994 Pet Smart Charities was founded—Petco went
public as the largest pet specialty retail chain
in the industry
1999 PetCo Foundation was established for
charitable giving to animal-related causes
2001 Launch of Petco.com
2

3. Size of Industry Sales They have similar values and concepts as PetSmart (15). The rest of
The pet superstore industry has seen a steady increase over the market is made up of companies targeted towards discount prices
the past five years. Even through the United States’ economic such as Wal-Mart, Pet Supplies Plus, or smaller private companies
crisis, the pet industry has consistently increased revenue, keeping (15).
its recession-resistant claim. According to Packaged Facts, the
sales of pet products and services rose by 5 percent in 2009, adding
Advertising
During the past five years the amount spent on the advertising
two and a half billion dollars to the industry. The industry seems to
industry has generally increased, with the exception of a slight decline
be growing, especially with the help of the “pet parent.” Those who
in 2009. According to Ad$pender, the main media outlets are network,
view their pet as part of the family are less likely to agree to cut
cable and television. In the 2004, over $242 million was spent in the
back on their shopping habits for their pets. In 2009 Packaged
industry. There has been an pretty steady increase in sales from 2004
Facts polled pet owners and 19 percent strongly disagreed that they
all the to the last year of data available, which is 2010. In 2010, over
would spend less on pet products because of the economy.
$678 million was spent on advertisements. By breaking down the
Quarterly Analysis for Pet Superstore expenditures by quarters, one will see that the most money was spent
Industry in the third quarter (July 1-September 30). This trend in
120,000.00 advertisement is most likely a result of pet owners being more active
during the warmer months.
100,000.00
Amount
Spent
80,000.00 Totals from Stages in the Product Life Cycle
Year
2006-2010 The pet superstore industry is in the growth stage of the product life
60,000.00
cycle (14).
40,000.00
20,000.00
PetSmart and Petco Sales
0.00 9,000
Quarter 1 Quarter 2 Quarter 3 Quarter 4 8,000
7,000
6,000
Sales (000)
Quarter
5,000
Source: Ad$pender 2010 Figure 1
4,000
3,000
2,000
Competitors 1,000
PetSmart’s primary competitor is Petco. Between the two 0
companies they are the leaders in retail for the pet industry. In 2004
2005
2006
2007
2008
2009
2008 they had a combined sales of almost $8 billion (15). Years
Petco alone had sales over $2.7 billion in 2008. They have Source: Packaged Facts
Figure 2
been able to increase rate of sales at a healthy pace since 2000. 3

4. Seasonality Economy of Industry
According to media expenditures, the pet supermarket Despite the recent economic downturn, many people are
industry spends the most advertising money during the third and continuing to be emotionally attached to their pets and are
fourth quarters. The industry spends more money during the warm becoming more conscious of their pet’s health. The fact that pet
months of the year and around the winter holiday season (Ad ownership is increasing reinstates the positive outlook on the pet
$pender). In 2010 the pet supermarket industry spent 22,918.8 superstore industry. It is helping put the industry in a recovery
million in the third quarter, which far exceeds 16,399.8 million phase. According to American Pet Products Association
that was spent in the first quarter. It is safe to assume that the President Robert Vetere, “people become more attached to their
reason behind the increase in the third quarter is that pet owners pets in times of uncertainty and stress, so we continue to reward
want to spend more time outdoors with their pets when the them for their unconditional love and companionship. Couple
weather is nice, and people also are inclined to be more active this with the trend of humanizing products and services for our
during the warmer seasons. This results in the need for more pets and the result is an overall increase in spending so we can
supplies (i.e. toys, treats for training, leashes, etc.). The strengthen that human animal bond” (14).
conclusion for higher spending in the fourth quarter could be Pet products and service rose by 5 percent in 2009,
attributed to the ever-growing idea of “pet parents,” the idea that adding two and a half billion to the market during the recession.
your pet member is part of your family. The fourth quarter of the Retail sales in the pet superstore industry have been projected to
year contains many of the winter holidays, and during these increase by 2.5 percent throughout 2010. Housing and
holidays spending on advertising and consumer spending on employment are also supposed to improve. The economy is
purchasing increases. If people consider their pets’ part of their slowly but surely recovering (14).
family they are not only going to increase purchases for their
family but for their pets as well. The average spending in the Legal & Regulatory Issues
third quarter from 2006- 2010 is at least 20,006.6 million above There are very strict regulations within the pet industry.
every other quarter. The ad industry has taken this into account Organizations like the Food and Drug Administration (FDA),
when devising strategies for targeting time periods where there is American Pet Products Association (APPA), the US
an increase in consumerism. Environmental Protection Agency (EPA), and the Pet Industry
Distribution Association (PIDA) work to help enforce these laws
at local, state, and federal levels. These regulations apply to
Growth Potential/Forecasts
anyone in or looking to become a part of the pet industry. Laws
According to Packaged Facts, the pet superstore industry
have been put in place to monitor and regulate the labeling, sale,
outlook is very promising. Right now the leading share in the
and production of all pet products as well as shipping, handling,
market is veterinary services. In 2009, sales in this category
and sale of animals. In 1951 the Pet Animals Act required a
increased by 10 percent and had a projection of a 6 percent sales
license to own a pet shop.
rate increase in 2010 and 2011 (15). With the advancement in
The FDA works hand in hand with the department of
medical supplies and procedures for pets, along with an increase
agriculture for each state on a general scale to regulate the
in the importance of the “pet-parent” relationship, the veterinary
manufacturing and distribution of pet food and more specifically
market will consist of 41 percent of sales by 2014 (14).
every single ingredient used has to meet certain standards 4

5. depending on the state. In 2007 the Food and Drug Amendments Authorization Act required the FDA to spread new laws for pet food by 2009
and under the Bioterrorism Act, all food must be registered with the FDA. Most states have very particular procedures for registering all pet
products sold. Products that fall with in the category of pesticides must register through the EPA. Like registration for pet food, there is also a
registration fee concerning pesticides. Some products may be excluded from the pesticide list, if and only if, all ingredients are exempt.
An issue that the pet industry is facing more every day is the ownership of exotic animals. One of the most recent laws imposed by the
government was the captive wildlife and safety act in 2003. This law addresses the concerns regarding the private ownership of big cats in the
United States. This law was imposed after a 10 year old boy was attacked and mutilated by his aunt’s 400 pound tiger. The law makes it illegal
to move certain types of live big cats across the U.S. borders unless you qualify as exempt.
There are many strict regulations about the sale, transportation and ownership of animals in the United States. Due to the Pet
Animals Act of 1951, a license is required in order to open and run a pet shop. Registration forms must be filled out and transportation must
take place within a certain and quick timeframe to best benefit the animal. The Animal Welfare Act (AWA) sets a minimum of standards for the
handling of commercial animals. The purpose for shipping or transporting the animal must be clearly defined and approved. Currently in
Glendale, California the City Council has been trying to ban the sale of dogs and cats within the city limits. Organizations like PIJAC (Pet
Industry Joint Advisory Council) are fighting against bans like this because the results of such a ban will not create a positive situation for the
pets.
Societal & Cultural Considerations
The most popular cultural trend in the pet industry right now is that of the “pet parent.” The human-animal correlation is what Packaged
Facts calls an “untapped goldmine” (14).
Pets as Family:
In 2009, 75 percent of cat owners highly agreed that they would consider their cat as a family member, 77 percent of dog owners highly
agreed, and 73 percent of all pet owners highly agreed that their pets are a part of the family (15).
This trend is great for the pet industry because the U.S. Pet Ownership & Demographics Sourcebook’s data suggests that those who
consider their pet as family tend to spend more money on their pet than those who don’t (15).
Traveling and Pets:
As people follow the trend of being a “pet parent,” they also become more inclined to follow other trends, like traveling with their pets.
This has opened up an entirely new aspect to the pet industry with airlines and hotels providing pet oriented alternatives. Under the Safe Air
Travel for Animals Act, placed effective in June 2005, requires airlines to report all incidents involving animals to the Department of
Transportation’s Aviation Consumer Protection Division (ACPD). This has brought about a new form of emphasis on pet travel and has inspired
services like Delta’s Pet First (14).
When pet owners cannot bring their pets with them, there are options like PetSmart’s PetHotels, a service that allows the owner to leave
their pet in a safe and reliable environment while they are absent. (19)
Green Movement:
The pet industry is no exception to the fast-growing trend of going green. This green movement is beneficial for the animals and for
companies’ business aspect. The green products draw customer appeal and change like the one that Cardinal Labs in Azusa, CA have made by
switching to run their plant solely on solar power, which in turn helps save money (14). 5

6. Mobile Grooming and Veterinary Care:
Right now there is only a small following but this type of grooming is the hottest trend in the pet
supermarket industry right now. Petco has recently paired up with Aussie Pet Mobile, who was named #1 in the pet category
of Entrepreneur's magazine Franchise 500 list (14). Packaged Facts predicts that mobile veterinary care, like ambulances, will hit a high growth
rate within the next few years (14).
Client Profile
Company History
Jim and Janice Dougherty formed the idea for a “PetFood Warehouse” in 1986. By the next year, PetFood Warehouse was opened in
Phoenix, Arizona. The company changed its name to PetSmart in 1989 based on the slogan, “We’re a MART for PETs that’s SMART about
PETs.” During the same year, the company began its first full-service, in-store salon for dogs and TV commercials (19).
Over the next three years the company expanded to obtain a larger customer base. PetSmart proudly presented its first private pet food labels in
1992. Because the labels are exclusive to the company, it brought higher margins than other foods (19).
Ironically, in 1993 the company bought Unipet Distributors. Not only was this the first company PetSmart bought, but it was also the company
where the pet product warehouse idea initially started. A year later PetSmart formed PetSmart Charities, Inc. This nonprofit organization is
dedicated to ending euthanasia of animals and helping homeless pets find homes (19).
Between 1995 and 1996 PetSmart hit the billion dollar mark, bought three more companies and went international by opening stores in Canada.
Coming into the new millennium PetSmart bought PetsHotel Plus, a pet boarding hotel that had huge potential for customer appeal and finally
opened two stores within two years (19).
In 2006 the company unveiled Smart Nutrition Selector online and in stores. This program suggests list of foods that will best suit the pet’s
needs. Finally, the company hit their 1,000th store mile marker in 2007, only two decades after the first one opened (19).
Now, PetSmart is proud to stick by its original vision, “To provide Total Lifetime Care to every pet, every parent, every time” (19). PetSmart
currently operates more than 1,197 stores in the United States, Canada and Puerto Rico. It provides a wide variety of products and services
making it the largest specialty pet retailer in the pet supply industry (19). Between the PetSmart salons, PetsHotels, Doggie Day Camps,
PetSmart Charities and The Pet Hospital, PetSmart provides ample amount of convenient service for pet-parents today.
Targeted Audience
For PetSmart, the target audience is directed toward younger generations who are delaying starting a family and, instead, getting a pet.
This target audience, referred to as the “pet parent,” considers his or her pet as more than just an animal. They also target adult females with
higher income who can afford to take care of their pet.
The company targets its consumers through a variety of services aimed to attract new pet parents. The grooming, pet training, PetsHotels and
Doggie Day Camp are their largest sectors. These programs provide the company with a better understanding of their customers, which can help
change their behavior and build long-term loyalty.
PetSmart has incorporated sustainable initiatives into its marketing. “Going green” is the most popular marketing for most industries at
the moment, and Packaged Facts predicts that within the next decade most companies will become more sustainable. This will not only appeal
to current customers but also help to reign in more customers (14).
6

7. PetSmart’s Annual Sales Growth
Sales Data 14.00%
Despite the U.S. recession, the pet supply industry 12.00%
has remained recession-resistant. Sales of pet products
and services actually rose 5percent in 2009 (14). 10.00%
As shown by the graph, “PetSmart – Annual Sales
Percent
8.00%
Growth,” PetSmart had total revenues of $5.7 billion in 6.00% Total
2010 which was an increase from the previous year’s Sales
total sales of $5.3 billion (20). 4.00%
It is predicted that the pet supply industry will 2.00%
continue to have a higher demand because of the 0.00%
emotional bond between pet owners and pets. Many 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
view their pet as a member of the family which proves
Years
an advantage for pet markets (14). Source: 20, RetailSails Annual Sales Data Figure 3
Advertising Expenditures Advertising Expenditures
Over the past five years, PetSmart has used various $80,000.00
advertising methods to promote its products and services.
$70,000.00
The economy has had some effect on advertising budgets
throughout the years. $60,000.00
Referring to the graph (Advertising Expenditures), $50,000.00
Advertising
there was a steady rise in expenditures from 2006 to 2008. Expenditures:
$40,000.00
However, the recession did cause PetSmart to cut back on (Ad$pender)
its advertising budget in 2009, only to increase the budget $30,000.00
in 2010 for the highest amount spent in the past five years $20,000.00
(3).
$10,000.00
With the exception of 2009, PetSmart has consecutively
increased spending on advertising from 2006 to 2010, $0.00
capping at over six million dollars on advertising in 2010. 2006
2007
2008
2009
2010
The categories that have drawn the most money are Cable Years
TV, Syndication and Network TV (3). Source: Ad$pender Figure 4
7

8. Media Mix PetSmart’s Total Media Spending
PetSmart’s advertising expenditures range from 11 different (2006-2010)
media outlets. From Cable TV to Outdoor advertising the company
Outdoor
has a wide breadth of promotional efforts.
Nat Spot Radio
PetSmart's media mix involves various media outlets. Television, Network Radio
syndication and radio are amongst the largest categories that are used Newspaper PetSmart
throughout the campaign (3). The chart demonstrates PetSmart media National Spending Total
mix in 2010. The expenditures that were least used were Sunday Newspaper
Sunday (2006-2010)
Magazine at 0 percent, Outdoor at 18 percent and Spot TV at 36 Magazine
Magazine
percent. These media outlets were seen as least useful in the Spot TV
marketing mix and were therefore less used. Syndication
The expenditures that draw the most money are Cable TV at Cable TV
42.19 percent, Syndication at 24.52 percent and Network TV at 15.39 Network TV
percent. PetSmart has consecutively increased spending on 0 20000 40000 60000 80000 100000
advertising from 2006 to 2010. It spent over six million dollars on
advertising in the year 2010 alone (3). Source: Ad$pender Figure 5
Creative Strategy
PetSmart strategy highlights the services that the company
offers as well as implementing seasonality ads. During the fall,
PetSmart sends out a series of ads about Black Friday, the day after
Thanksgiving where Christmas shoppers find great deals on gifts for
the holidays.
Another example is the promotion of Easter, which can be
seen to the left. Using the seasonality strategy gives customers an
excuse to go into the store and provide them with ideas.
PetSmart plays up its in-depth service features because they
believe consumers will see it as a benefit to themselves and their pets.
Every company’s main purpose, when implementing advertising
strategies, is to get the consumer interested in their store or brand.
Obviously, PetSmart has completed this task by being the largest pet
superstore retailer of servicers of and solutions.
8

9. Positioning
“PetSmart moved away from the “mart” mentality and focused on providing “Smart” solutions and
information” (19). PetSmart wants its customers to see the company as more than just a store’ instead, it wants
customers to see the employees as individuals who care about their pet as much as the owners. This is shown by the
extensive employee training, superior customer service and the outstanding services provided within each store and
the quality of products sold.
PetSmart bases its position on customers finding superior products and exclusive services for an affordable
price in one convenient location. By creating its own private pet food and the Nutrition Selector program, .
PetSmart’s position is based on customers finding superior products and exclusive services for an affordable price in
one convenient location. The company has taken steps toward its position by creating its own private pet food labels
and a program, Smart Nutrition Selector, which guides pet owners to get the best quality and services for their
specific pet (19).
It has also implemented a customer loyalty program called PetPerks. This program will allow PetSmart to
customize its marketing and communicate more effectively with its customers (19). With convenient prices, several
locations, products and services, PetSmart makes it easy to satisfy consumers’ needs.
Specifically, the company’s vision is “to provide Total Lifetime Care to every pet, every parent, every time” and its
slogan is “Happiness in store” (19). These sum up PetSmart’s positioning on how it wants its customers to view the
company. It seeks to provide the best service and products possible to keep the customers and pets happy.
Cause Related Marketing
PetSmart founded PetSmart Charities, Inc. in 1994. This is an “independent, nonprofit organization that creates and supports programs
that save the lives of homeless pets, raise awareness of companion animal welfare issues and promote healthy relationships between people and
pets” (19). By providing more than $134 million in grants and programs that benefit animal welfare organizations, PetSmart Charities has
assisted saving the lives of more than 4.5 million pets (19).
Its vision is simple: “A lifelong, loving home for every pet.” This shows how PetSmart is more than just a company trying to make
money, but a company that truly cares for animals. It influences current pet owners to help out those in need and helps acquire new customers
who also have a love for pets (19).
The mission of PetSmart Charities is “to improve the quality of life for all pets by creating and supporting programs that save the lives of
homeless pets and promote healthy relationships between people and pets.” PetSmart carries out this mission statement through various ways:
• Funds programs that save lives of homeless pets
• Collaborates with animal-welfare agencies across the U.S. and Canada
• Provides emergency relief for animals in critical need
• Raises awareness by promoting healthy and happy relationships between people and pets
• Implements customer and associate fundraising programs (19).
9

10. More than ever before, cause-related marketing is an essential strategy in today’s industry.
Marketers have been using cause-related marketing as a way for customers to sanction spending extra
money. In return, when a company is associated with a cause, it gives customers one more reason to shop at
that particular store (14).
Competitor Profiles
Primary Competitors
Petco is considered to be one of PetSmart’s primary competitors in the pet industry. The two pet
supply companies accounted for more than half of total industry revenue in 2011 (20). PETCO is a privately
owned company that has more than 1,000 stores nationwide and is the only pet store to provide service in all 50
states, including the District of Columbia (17). PetSmart and PETCO both offer quality pet and veterinary
supplies that are sold directly to animal professionals and to the public at discount prices. In 2010, both pet store
chains accumulated combined sales of approximately $8.7 billion.
Brief History
Petco was originally founded in 1965 by Walter Evans and five associates as a mail-order veterinary
supplies business. Initially, the business was called United Pharmaceutical Company (UPCO), and opened its
first store in La Mesa, California in 1976. At the time, the primary customers consisted of ranches, kennels,
catteries, and grooming shops (17). In 1979, UPCO changed its name to Petco in order to promote a better
connection between its product supplies and household pets. The first official Petco store opened in Tigard,
Oregon in 1980 (17).
Petco’s business increased in 1988 after it bought two pet supply chains WellPoint and the Pet Department.
This tripled Petco’s stores from 40 to 130, expanding the stores to states outside of
California. Petco’s growth continued, and by 1994, it went public as the largest pet specialty
retail chain in the industry with 218 stores in 13 states and sales of more than $189 million (17). The success of
Petco brought the company the opportunity to develop pet services directly to its customers, and opened its
grooming business in 1985. In 1999 Petco established the Petco Foundation to manage and promote charities
related to animal causes. Since its establishment, the independent nonprofit organization has raised over $7
million for more than 7,000 animal welfare partners throughout the nation (17).
Due to the market depression and undervalued shares in 2000, Petco changed to private ownership. In
2002, Petco launched pet supply services through its website. Petco has more than 1,000 stores in all 50 states
with more than 22,00 associations across the country (17).
10

11. Sales Data Petco Media Mix 2006-2010
In 2006 Petco went back to becoming a privately Network TV
owned company. Because of this, the company’s financials
Cable TV
are no longer available to the public. This limits the ability to 5% 10%
Syndication
analyze a year-by-year dissection of the company’s financial
performance (20). Spot TV
Despite this, a projection has been made by IBISWorld 30% Magazines
22%
of Petco’s positive growth within the five years to 2011. It has Sunday Magazines
been estimated that Petco’s revenue will total $2.9 billion in National Newspapers
2011, indicating a 5.9 percent annual growth over the five- Newspapers
year period (20). National Spot Radio
11% 4%
Network Radio
10% 4%
PETCO Pet Supplies Inc. – Financial Performance 3% Outdoor
1%
Source: Ad$pender 2010 Figure 7
3,500
Revenue (Millions $)
3,000
Advertising Expenditures
2,500
Petco has been efficient in its efforts to use all of the
2,000
various types of traditional media outlets for its marketing and
1,500
promotional advertising. It can be seen from the total spending
1,000
chart that most of the spending was in the year 2006, with Petco
500
spending a total amount of $24,200,000 on advertising.
0
Advertising spending has gone down since 2006, with only
2006
2007
2008
2009
2010
2011
$9,492,600 spent on advertising. However, the economic
Years
Source: Annual Report and depression of 2008 can be assumed to have been a major factor
IBIS World Figure 6
in the spending cuts. ***I don’t have a source for this sentence,
Media Mix it’s just an assumption since we are in a sort-of economic
Between the years of 2006-2010, Petco’s marketing and depression. Feel free to take it out if you need to*** Spending
promotional efforts have been invested in all forms of traditional went up for Petco in 2010 with a total amount of $13,534,300 in
media outlets except Sunday Magazines outlet (3). Most of the advertisement costs. Throughout the years of 2006 to 2010, most
spending was invested in radio and television. The most spending of Petco’s spending has gone towards network, cable,
was Network Radio (29.69 percent) and Cable Television (21.85 syndication and spot television advertisements (67%), as well as
percent). network and national spot radio (15%). These mediums are used
Television is one of Petco’s primary mediums because the for Petco’s advertising strategy because the target audience is
target audience is considered heavy viewers of prime time considered heavy viewers of prime time television and radio
television (26). listeners (26). Newspaper is the next medium used by Petco in
their advertising spending with 11 percent. 11

12. Petco Media Mix 2006-2010 Positioning
Total Spending Petco emphasizes the importance of nutrition and healthy
living for pets. This positioning gives Petco the opportunity to focus
30000 on pet specialty exclusive brands and strengthen their brand as a
25000 health and natural market player (14). The company considers itself
to be the pet nutrition headquarters due to its wide selection of high-
Amount Spent
20000
quality premium and natural pet food (17).
15000 The positioning of Petco is also strengthened by its
Total $
10000 nationwide pet nutrition education campaign, which aims to educate
consumers about pet nutrition from the help of internal and external
5000
nutrition experts (17).
0
2006 2007 2008 2009 2010 Audience Segments
Petco’s targets audiences and groups such as breeders and
Years veterinarians through various media channels and promotional
Source: Ad$pender Figure 8 activities that focus on its national campaign. The recommended
primary consumer for PETCO is white, married adults between the
Creative Strategy ages of 25-34 with at least a four year college degree and an income
In 2011, Pertco announced Draftfcb Orange County as its of $40,000 or above (26).
Agency of Record for brand and product advertising. The agency is Petco’s used these qualifications to target consumers who plan
responsible for the brand’s creative strategy and development of in- on having a family in the future and who also want to include a
store, digital and design work for specific campaigns (10). household pet as a part of that future family (26).
The agency’s first campaign for PETCO consisted of a Many of The Petco Foundation’s sponsored events are
consumer awareness campaign with digital, newspaper insert, in-store targeted towards these audience types. The Petco Foundation donates
and TV components. The consumer awareness campaign promoted about $15 million a year to help animal-welfare organizations. This is
Petco nutrition found in its stores (18). This particular campaign part of Petco’s cause-related marketing efforts. The Foundation also
capitalizes on Petco’s 100% satisfaction guaranteed policy (20). provides nationally known experts to increase adoptions at a fraction
Part of the creative strategy is sending out e-mails sent to of the price. Local shelters hold adoption events at Petco stores and
members of its customer loyalty program Petco Pals. The e-mails invite customers to think of adopting (17).
encourage consumers to visit the company’s website and learn of its Another local fund supported by The Petco Foundation is the
events, sales and other information being promoted (18). “We Are Family Too” fund. The Foundation provides funds to
As part of Petco’s consumer awareness campaign, the agency used humane groups who develop programs that help families keep their
spending on digital outlets that exceeded the year before, including pets during the current economic hardship (17).
Petco’s first TV campaign since 2007 (18). The emphasis on digital is The “We Are Family Too” fund is consistent with Petco’s
part of the creative strategy in communicating the message of the strategy to target a family audience and emphasize the importance of
campaign out to the public quickly. creating a relationship between owners and their pets. 12

13. New Developments Secondary Competitors
In 2009, Petco opened its first Unleashed by Walmart is considered to be PetSmart’s secondary competitor.
Petco store in San Diego, California. Unleashed by Walmart, PetSmart and PETCO are among the most popular retailers who
Petco was created as a smaller-scale, community target pet supply consumers. Walmart is the world’s largest retailer chain with
oriented store, focused primarily on helping customers’ $405 billion in sales for the end of the fiscal year of January 31, 2010. In 2009
pets become healthier (14). The boutique styled pet alone, the company estimated revenue of $1.4 billion in sales of pet supplies
store provides customers with natural, organic and (26). This revenue estimate conveys how aggressive Walmart has become in
higher-end products and first-rate pet service. Currently the pet market.
there are 38 Unleashed by Petco stores in the country Since its first aspirations to enter the pet supply market in 2005,
(17). Walmart has increased the category as high priority. In 2009 Walmart used the
Store features in Unleashed by Petco differ from television media outlet to broadcast a series of brand-focused television spots
Petco stores in order to exude a “neighborhood store” focused on the pet supplies provided in its stores. The company has also
atmosphere and promote community bonding among debuted a fair amount of pet oriented products and services. These include a
customers. One of the features includes a Treat Bar line of dog treats from dog bakery franchise
where customers’ pets are allowed to meet and socialize Three Dog Bakery, environmentally friendly
together. Customers are encouraged to bring photos of pet products and flea and tick medication
their pets that are displayed on a portion of the store’s formally available in veterinary offices (20).
wall as well. Each store also includes weight scales pet Walmart’s strategy is to provide mass
owners can use to actively monitor their pet’s health quantities at the best value price. Target
(23). Services provided at Unleashed by Petco consist consumers are assumed to have a lower
of private and group dog training, DNA breed testing household income, however this does not
and vaccination clinics. All associates of Unleashed by exclude consumers of a higher income level
Petco are nutrition certified (23). (20).
Unleashed by Petco also plans to host pet
adoption events regularly as part of The Petco
Foundation’s cause-related marketing efforts (23). 13

14. Consumer Analysis Important Factors in Product
Selection: Percentage of Shoppers
The Pet Parent
Despite the state of the economy in the U.S., “pet parents” have Rating Factors as Important or Very
Important
been relatively unaffected (11). The pet superstore industry has shown an
increase of 5 percent in sales in the past year (Packaged Facts). There are
currently about 75 million dogs and about 85 million cats owned in the It's a Brand Name 23
United States (6). The majority of these owners see their pets as a part of
the family. When polled, ninety-one percent of pet owners agreed with the Recommended by Friends/
26
statement “I consider my pet(s) to be part of the family” (14). This view is Relatives
one quality that distinguishes a pet owner from a “pet parent.” Pet parents
Dietary Restrictions 34
are individuals who place high importance on the care of their pets, their
relationships with them, and the emotional ties that justifies those pets as a
significant part of the individual’s family. These owners have a desire to It's Low Calorie 45
present their pets with the highest standard of life, and have the financial
means to offer the best quality and safety in every product and service they It has Reduced Sugar/Fat/Salt 53
purchase. Highly invested pet parents focus on premium products and
Factors
services for their pets, strengthening their emotional relationship with the Avaliable Size Options 62
pet, as well as providing for their health and wellness (14). Consumers of
the pet superstore industry take a variety of factors into account when they It has Future Health Benefits 63
shop for their pet, based on their own personal values and abilities to do so.
spent just a decade ago. It is on Sale 80
In the graph on the right, the majority of pet parents place higher
emphasis on the quality, price, and safety of a pet product or service,
It is a Good Source of Nutrition 81
strengthening the amount of care parents physically and emotionally put
towards their pet. While fluctuations can appear depending on the parent’s
Product Safety 83
income, these statistics show that the stronger the relationship, the more
time and money are invested from pet parent to pet. In addition, pet parents
are growing in numbers and in popularity. In 2007, APPMA reported the It is a Product I trust 83
percentage of dogs that slept in the same bed as their owners jumped from
thirty-four percent to forty-two percent (5). Similarly, Bloomberg Price of Item 87
Businessweek reports growth in the astronomical pet parent spending. The
amount of money Americans now spend on their pets has reached $41 0
50
100
billion per year. This number is significant in that Americans spend more on Percentage
their pets than the gross domestic product of all but 64 countries in the Source: Packaged Facts Figure 9
entire world (8). The amount Americans spend on their pets a year has
doubled from what they spent just a year ago.
14

15. Demographics In the pet superstore
The CEO of PetSmart, Phillip Francis, says that the typical industry, many consumers are
target audience, in which he is aiming products and services, is from higher-income households.
women in their mid-20’s and 50’s (22). According to Blackwell’s This plays a prominent role in
Five-Minute Veterinary Practice Management, the average [pet] the pet superstore market since
owner is white, married, 46, and childless or an empty nester, as well these consumers are less likely to
as a homeowner with a higher household income than the rest of the feel the severe effects of the
nation (1). The website Quancast specifically targets PetSmart’s economic downturn. Data shows
demographic market. The website states that sixty-two percent of that Americans who make
PetSmart’s customers are female. Their shoppers are thirty-four $70,000 or more increased their
percent likely to be in the age bracket 35 to 49, followed closely by spending in the market by twenty
those who are 18 to 34 making up thirty-three percent of the market. percent from 1998 to 2008.
Eighty-four percent of their customers are Caucasian and sixty Their largest expenditure was
percent have no children. Simmons Research shows similar statistics; veterinary supplies, which shows they also value the well being of
however, it gathers data for the entire pet superstore market and not their pets. No matter whom you
just one certain store in that market. The data shows that most pet are trying to market or advertise,
owners are female. Women make up fifty-two percent of the market you are most likely going to be reaching a pet owner. More than 71
and twenty percent of the customers are ages 45 to 54. Twenty-six million homes, or sixty-three percent of all U.S. households, have one
percent of pet owners have a yearly income greater than $100,000. or more pets (12). Packaged Facts believes that about 17 million U.S.
households qualify as premium pet demographics. These households
$70K+ Household Share of U.S. Pet Market represent thirty percent of all pet-owning households and fifteen
Expenditures: By Category, 1998 vs. 2008 percent of U.S. households overall. This information allows the pet
superstore industry to be divided into five groups. These groups
80.00% 1998
include: Affluents, those with a household income of $150,000 or
70.00% 64%
67%
more; Specialty Shoppers, those purchasing pet supplies through pet
2008 stores or the Internet only; Married With Children, those with a
Percentage
60.00% 49%
49%
household income of $100,000 or more; Empty Nesters, those with a
46%
50.00%
40.00% 36%
household income of $75,000 or more; Dual-Income/No Kids, those
30.00%
28%
27%
with a household income of $75,000 or more; and Singles, those with
20.00% a household income of $50,000 or more (14). These groups are all
10.00% growing in spending ability and numbers, which suggests the strong
0.00% potential for premium pet products and services. The growing size of
Veterinary Non-Medical Pet Supplies Pet Food these groups indicates the success of the pet superstore industry’s
Services Pet Services marketing ability. The graph below indicates what U.S. households
spend the bulk of their income on in terms of the pet superstore
Source: Packaged Facts
Category
Figure 10 industry. 15

16. Psychographics Psychographic Attitudes Percent Of
Philip Francis, CEO of Motley Fool Stock Advisor and People
recommendation for PetSmart, states that the target audience
Rarely go shopping 58.0%
for PetSmart is primarily based off of psychographic analysis
rather than demographics (22). Pet parents treat their pets as a Even when they do not make a purchase, they 58.0%
significant part of their family, and therefore have strong enjoy shopping
psychological and emotional ties with them. On PetSmart’s Store’s environment makes a difference 60.0%
personal site, they reach out to pet parents by placing a high
Only shop at stores nearby 58.0%
emphasis on pet adoption and welfare, through new services
and outlets such as PetSmart Charities, PetsHotels, and Tend to buy things spur the moment 62.0%
Doggie Day Camp (19). The growth and positive response Will buy from non-specialty stores because of 60.0%
that the company has been receiving from pet parents proves price
that they have been successfully catering to the emotional Only shop at their favorite store because they 57.0%
needs of parents through promotions of safe, secure, and know the type of service they will receive
healthy relationships.
Shop at specialty because of employee’s 57.0%
In the 2009 Simmons report on pet owners versus non- knowledge
pet owners, we learn how the psychographics of pet owners
differ from those who do not own pets. Pet superstore retailers Prefer to shop at specialty stores because they 54.0%
carry more brands
must understand how their consumers think when shopping in
order to target their audience correctly. The results indicated Only shop for something they need 62.0%
that fifty-eight percent of pet owners rarely go shopping.
Since that is more than half of pet owners, the pet superstore When shopping, get what they need and leave 58.0%
industry must make shopping extremely easy for its customers Source: SMRB, Pets Vs. No Pets Figure 11
and offer incentives to get them to shop at their store. Many
said that coupons help draw them to stores at which they buying things until they are on sale, while sixty percent will buy from
normally do not shop and fifty-nine percent said they are non-specialty stores because of the product’s price. Fifty-seven
willing to shop at new stores. Data suggests that if you offer percent of pet owners choose to only buy products from their favorite
pet owners as incentive, they will be more likely to shop at stores because they know what kind of service to expect. However, only
your store. The environment of a store is crucial. Sixty percent fifty-four percent of consumers prefer to buy pet products from a
of pet owners agree that a store’s environment makes a specialty store than not because they believe these stores carry the best
difference when they are shopping. brands. Fifty-seven percent of consumers say they would shop at a
Since fifty-eight percent of pet owners rarely go specialty store because of an employee’s greater knowledge on products
shopping, pet superstore retailers must understand when and and services for their pet. The Simmons data clearly shows that pet
why pet owners shop. Fifty-eight percent say they go parents are not picky when it comes to where they shop, but they will
shopping when something is really needed and once they get pick certain stores that offer them something in return, coupons,
what they need them leave. Fifty-nine percent hold out on convenience, expertise, etc. 16

17. Perceptions
Likes and Dislikes
The preferences of consumers for their pets typically correlate with what the owner would choose for himself or herself. Consumers like to
buy what makes them feel good, and therefore will be willing to spend more on products and services with higher quality and safety. This could
include products such as food for the pet that is natural or recycled products that support the idea of “going green.” PetSmart became a big
believer in environmental sustainability in 2008, beginning with an employee engagement program called Think Twice (19). In this program, the
employees challenge themselves to make different, more sustainable decisions in hopes to inspire and involve consumers into making smarter
decisions for the benefit of themselves, their pets, and the environment. For example, 37.2 percent of cat owners from 2009 were willing to pay
more for environmentally friendly products, compared to 34.7 percent of overall adults willing to pay more. It was also found that 71.4 percent of
cat owners felt that packaging for products should be recycled, versus the 67.4 percent of adults overall who agreed (14).
Pet parents dislike products and services that can be physically harmful or painful to their pets, such as
shock collars. Although they are intended to train a pet, people tend to dislike the idea of subjecting their pet
to physical abuse in order to teach a lesson, preferring instead to implement verbal strategies or pay for
professional dog training. Charity organizations and animal welfare events also take a consumer’s attention
away from the negative aspects of a pet product and focus on good cause. PetSmart’s Charities organization
has a vision to provide a lifelong, loving home for every pet by creating and supporting programs to save
homeless pets and improve their quality of life. This emotionally appeals to pet parents because it promote
healthier relationships with their pets. People for the Ethical Treatment of Animals (PETA) or The Humane
Society of the United States are two national organizations that strive to involve all individuals on the
positive treatment and care of animals.
Many pet parents also focus on the nutrition and health benefits for their pets. Dr. Lisa Newman,
Mike Adams, and the non-profit Consumer Wellness Center compiled the worst ingredients found in pet
food. Salt rated the highest, with the ingredient being found in 69 percent of pet food products analyzed (2).
A less familiar ingredient, brewers dried yeast, came in second with 34 percent. Used for flavoring, protein,
and B-vitamins, it is a waste product that can become toxic to the liver, as well as cause allergies and arthritis
to pets.
17

18. 18

19. Problems in the Category
Consumers in the pet supermarket industry are increasingly sensitive over product safety. Safety is currently a huge priority in
the industry because of its potential to drastically change pet food and non-food supplies. In accordance with news for pet food, new
government regulations are being implemented under the Food and Drug Administration Amendments Act (14). This act would include
pet food ingredient and labeling standards, as well as, a Reportable Food Registry (14). There are of course many concerns with the
changes, including, higher production costs and business-interrupting plant shutdowns from the presence of salmonella at pet food
plants.
Aside from the food part of the pet supermarket industry, there is also the non-food side. According to Packaged Facts, the
largest pet supplies category, flea and tick control products, have been gaining new attention due to illnesses from chemicals in the
products, sometimes even resulting in death (14). Although EPA reports imply that pet owners could have applied the product
incorrectly, consumer complaints of pet poisoning could decrease sales, causing companies to revise labels, discontinue products, and
implement new data requirements.
Insights
Through extensive psychographic and
statistical analysis, it is clear that many pet
parents would go to great lengths physically
and financially to make their pets happy. We
can see many examples of this in categories
such as pop culture, with high grossing, pet-
related films such as Marley Me and 101
Dalmatians (2). These movies tend to appeal
most to younger demographics and pet parents
that have children.
19

20. Survey Research • To identify if there are gender and income differences for the above
Introduction measures
In addition to the information provided on PetSmart in
the Situation Analysis, we formed a survey in order to obtain
further information on PetSmart’s targeted audience, pet Data Collection Method
parents. Using the guidelines of specific research objective We conducted the survey based on three key factors. First, we
points, we created a survey to guide PetSmart’s marketing surveyed a sample of pet parents. This sample included young adults
strategies and tactics by using the responses of its targeted from the age range of 18-25 and those between the ages of 45-60. In
audience. In the following paragraphs, we will explain in order to make the survey related to our research purposes, we created
detail our research objectives, the method and design used for a screening question that does not allow those without pets to
the survey, along with the actual survey itself accompanied by participate in the survey. Each team member surveyed at least 20
a coding scheme. respondents to obtain accurate results. This created a sample size of
120 respondents. In order to obtain these responses, we used self-
Research Objectives administered surveys that were issued through various online
Today, pet owners have an emotional tie to their pets – platforms. Table 1, below, shows each members intended method of
a group referred to as pet parents. The survey will be utilized distribution.
to gain insight into this group to see what they are looking for
in a brand and if cause-related marketing affects their
purchases. In order to obtain these answers, we constructed
Group Member: Distribution Method:
our survey from a list of research objectives:
Lauren Baker Sent email to roster of her
sorority chapter, Kappa Delta
• To measure the target market’s pet-shopping frequency
• To measure the target market’s monthly spending on pet- Jenna Barb Sent email to her father who
related products and services forwarded it to his AutoZone
• To measure the target market’s awareness of brands within employees
the pet products and services industry
Jeni Cherry Sent email to roster of her
• To assess the target market’s attitudes/beliefs about
sorority chapter, Delta Zeta
differentiating characteristics of brands within the pet products
and services industry Alison Embry Posted the survey link on her
• To assess the target market’s attitudes/beliefs about PetSmart Twitter account
• To assess the target market’s attitudes/beliefs about PETCO
Taylor Kearns Sent link out to friends and
• To assess the target market’s awareness/attitudes/beliefs
employees
about current PetSmart promotional and cause-related
marketing campaigns Kristin Wise Posted the survey link on her
• To identify strategies to inform and promote cause-related Facebook account
marketing efforts for PetSmart 20

21. Survey Research Research Objective Survey Question
Survey Design Number(s)
We conducted a web-based survey created using
Screening Questions 1
kwiksurvey.com. The survey was comprised of 38
questions. The survey’s design allowed us to weed To help determine the target market 2, 3, 4, 5, 6, 8, 30, 32, 33, 35, 36, 37
through respondents to figure out which ones were actual
pet parents. By using a screening question, we ensured
To measure the target market’s pet 7, 9, 12
that all of our data is pertinent to our “pet parent” shopping frequency
demographic. Each group member was also required to
send the survey to at least 20 people, ensuring that we got To measure the target market’s 9, 16, 17, 18, 19, 20, 29
ample amount of feedback to fulfill our objectives. monthly spending on pet related
products and services
In order to achieve our research objectives, we
prepared the table to the right displaying each objective To measure the target market’s 19, 20, 21, 23, 24, 25
paired with the survey question number that it satisfies. awareness of brands within the pet
products and service industry
To assess the target market’s attitudes 11, 14, 15, 16, 17, 19, 23, 24, 25
and beliefs about differentiating
characteristics of brands within the pet
products and services industry
To assess the target market’s attitudes 10, 13, 22, 26
and beliefs about PetSmart
To assess the target market’s attitudes 10, 13, 22
and beliefs about Petco
To assess the target market’s 23, 26, 26
awareness, attitudes, beliefs about
Efforts to Reduce Survey Design Bias current PetSmart promotional and
In order to avoid survey bias, we paid close attention cause-related marketing campaigns
to question phrasing and response options. We made sure to
To identify strategies to inform and 26, 27, 28, 31, 32, 33, 34, 36, 37
use clear and simple language in order to keep the questions promote cause-related marketing
short. To help keep the survey visually appealing, we listed efforts for PetSmart
question alternatives vertically and divided the survey into
sections. To steer away from leading questions, we used To identify if there are gender and 3, 4, 5, 6, 7, 38
neutral words that are not biased or emotionally charged. income differences for the above
measure 21

22. Survey Results Table 2
Summary of Participants What is your household’s totally yearly income?
Our survey had a total of 122 participants complete the (n = 122)
survey; however, through our first screening question, 11 showed
they did not own pets (9 percent). 38 pet owners from the survey are
female and 73 are male, with valid percentages of 34.2 percent and
65.8 percent. Table 1 shows that the largest percentage of Income Frequency Percentage
respondents are between the ages of 51-60 (32 percent). Twenty-nine
percent are between 19-23, followed by 22 percent of respondents
that were between the ages of 41-50. These three age group represent Under $19,999 12 11%
the majority of respondents.
$20,000-$49,999 12 11%
Table 1
What is your age? $50,000-$74,999 12 11%
(n = 122)
Age Frequency Percentage $75,000-$99,999 20 18%
$100,000- 26 24%
18 and under 1 1%
$149,999
19-23 32 29%
Over $150,000 27 25%
24-30 4 4%
31-40 6 5%
According to the survey, 73 respondents indicated that their
41-50 25 22% yearly household income ranged from $75,000 to over $150,000.
The majority of these respondents accounted for an income level
51-60 35 32% over $150,000 at 25 percent. In addition, the majority of the
respondents were White with 92.79 percent, while other ethnicities
61-70 6 5% were all below 3 percent.
Over 70 2 2%

23. Pet Shopping Frequency and Monthly Spending
As displayed in Table 3, when respondents were asked about how
often they go shopping for their pet per month, males and females did not Products vs. Services
show a significant difference in shopping habits (Chi-square = -.002; Sig. Overall, what type of product do you
2-tailed = .993). The means between each gender proved this as well; both
males and females showed a mean response of 2.53 (on a scale with 4 being
purchase most often?
Luxury Goods Other
the most frequent), going shopping for their pet either once a month or 2-3 2% Toys 1%
times a month. 1%
Health Products
Table 3 3%
Influence of Pet Shopping Frequency Per Month on Gender
(n = 122)
Percentage
Measure Male Female Chi-square Sig. (2-
Value tailed)
Food/treats
93%
Pet
Shopping 65.8% 34.2% -.002 .993
Frequency Figure 12
per month
As shown in Figure 12, the overwhelming
majority of respondents spent the most on food/treats
for their pet(s). The variance between gender proved
When shopping frequency was compared with income, we found to be of little significance, with females answering
similar results. The Chi-square test yielded -.002 with a sig. 2-tailed value with a mean of 1.14 (1 = food/treats) and males with a
of .983, proving that how much income a household brings in per year has mean of 1.24. This shows that a necessity such as food
little effect on how often they go shopping for their pet(s). The same is true is the most important factor when pet owners shop for
for the amount of money spent as well—while males showed to have spent a pet products.
slightly higher amount of their pet per month (mean = 3.22 as compared to
female’s 2.86 mean), the sig. 2-tailed value was .117, showing a weak
correlation between the two variables.

24. As shown in Figure 13 below, respondents spend the majority between products and services offered at pet-specialty storre
of their pet expenditures on veterinary services, with the closest versus supermarkets.
percentage at 23% with grooming and pampering. This shows that The participants in the survey were asked to rate the
pet parents place the most importance on the health of their pet(s), differences between products and services provided at
but occasionally like to spoil their pet(s) as well. PetSmart vs. Petco. A little over half of those who responded
chose to remain neutral in deciding the differences in PetSmart
and Petco products and services (53 percent). A greater
Which pet services do you spend the most percentage disagreed—rather than agreed—that there is any
on? difference between the stores’ products and services.
Specifically, 24 percent of respondents chose to “disagree” and
16 percent chose to “agree.”
Grooming/
Pampering
23%
Table 4
Pet
Boarding/ Influence of Products/Services at Pet-Specialty
Daycare
stores vs. Supermarkets/Discounts Stores on
6%
Gender
Pet
SiAers/ (n = 122)
Veterinary
Walkers
Services
2%
67%
Training/ Means
Discipline
2%
Measure Men Women
Figure 13
Influence of 2.13 2.29
Products/Services
Attitudes and Beliefs about PetSmart vs. Petco on Different
Participants were also asked to rate the significant difference Stores
between products and services offered at pet-specialty stores versus
supermarkets and discount stores. Of those who answered the survey,
the results indicated that 39 percent agree that there is a difference in
products and services, 25 percent strongly agree, 29 percent remain
neutral and 7 percent disagree that there is a difference.
Cumulatively, 64 percent agree or strongly agree that there is a
significant difference

25. Which type of store do you most prefer when
Price vs. Quality
shopping for your pet? Table 5
Correlation between pet shopping based on
price vs. income
Discount
(n = 122)
stores
10%
Measure Chi-Squared Sig. 2-tailed
Other
19%
Supermarkets
35%
I shop for my pet .180 .062
based on price.
Petco
11%
PetSmart
(Based on a scale of 1-5: 1 being “Always” and 5 being
25%
“Never”)
Figure 14
When respondents were asked whether they shop for their
pet(s) based on the price, 39 percent said “sometimes,” followed
When respondents answered which type of by nearly 31 percent answering “usually.” This shows that a
supermarket they preferred when shopping for their pet, 30 majority of people consider price when shopping. However, as
percent of respondents said they do not shop at shown in Table 5, the comparison between income and shopping
supermarkets for their pet(s) at all, while a slightly lower based on price proved not to be statistically significant enough to
percentage, 26 percent, said that they opt for Walmart, the conclude a correlation (sig. 2-tailed = .062), but just barely.
most inexpensive of the listed supermarkets in the survey. When can therefore conclude that although the correlation is
When asked which type of store they preferred when weak, price is generally considered.
shopping for their pet(s), supermarkets had the highest The correlation between gender was far less significant,
percentage of 35.19, with PetSmart and Petco falling however; males had a mean of 2.78 with females at 2.74, and
behind with 25 percent and 11 percent—all shown in showed a sig. 2-tailed value of .845 between the 2 variables,
Figure 14. This shows that the products and services proving no statistical significance.
offered at PetSmart and Petco are not enough to override
the prices offered at supermarkets.