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Linda 470

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Jim Kelly

on 14 April 2010

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Transcript of Linda 470

MGMT 470
Pet Pet Café Chris
Annie Ling
Kelly Brand Name Pet Pet Caf Pet Pet Café Introduction Objectives 1. To provide genuine happiness to all dogs

2. Fulfill dog lovers’ needs
Main Products and Services 1. Food for dogs

2. Events and activities
(birthday and wedding)

3. Sales of dogs-related
products and hostel services
Target Customers 1. True dog lovers and owners 2. Middle and high income dog-owners Competitive Advantage Mover in
Macau Product Differentiation
Food for dogs
( food variety, quality, design) Special services
Events and wedding parties
Business Structure Partnership
Contribute more capital,
more effort and more time
for the business

Better decisions

Sharing risks
Goal Short term(Introduction stage)
Build up a strong,
favorable and unique
brand image for Pet Pet Café

Long term
Position our dog café
to be the quality leader in
Macau’s pet-care industry

Initial Preparation Funding source
Recruitment Government Support
SME Credit Guarantee Scheme
- 70% of the loan
- maximum amount is MOP 3.5 million
1 chef
3 helpers
1 cleaner
Industry Analysis Moderate Threat of Entrants
Low barriers of entrance
- No need a huge amount of set-up cost or
heavy investment of capital

Limited access to distribution channel
- Wholesale and retail channels are limited
Low threat of substitute
No direct substitute

Indirect substitute - parks or public areas
- approximately 40 parks in Macau, one-third of
them do not allow dogs

Due to hygiene and security
concerns, dogs are not that
welcomed even in permitted areas.

Low to moderate intensity of competition
Indirect competitors
- Such as pet shops which also provides
grooming services is a threat
- Canil Municipal of Macau is also the
indirect competitor since it provides the
short- term hospitality service for citizens

Low Exit Barriers
- Not incur high sunk costs and is nothing of public
Low bargaining power of buyer
Increase in target market size
- According to the data provided by Canil Municipal of Macau,
the total number of pets registered has increased significantly
to 8187 up till September 2007 from 4127 in 2004.

Purchase at a low volume
- Customers are individual buyers, they do not
consume in high volume

Differentiated product
- Our product is highly differentiated from the
current businesses in the pet care industry as we are
the only café for dogs in Macau

High switching cost
- As the first dogs’ café in Macau, we have a first mover advantage
Customers have built up their social network and interpersonal
relationship in our café.
Moderate to high bargaining power of supplier

" Food suppliers and dog-related product suppliers are
considered the major suppliers in our business "
Low bargaining power of food suppliers
- Differentiated Products
(Fresh meats and vegetables are regarded as commodities)
Low Switching Cost
- Many food suppliers in Macau
High bargaining power of dog-related products suppliers
Low volume
- Expected turnover of the dog-related toys, accessories

Limited Channels
- Unique and hardly accessible in Macau

Small fraction of the suppliers' sales
- As a minor service of our café, we are not too serious
on the toys and accessories and the quantity is also quite small
Execution or Control CCTV
Direct Supervision
Evaluation Enviromental Anaysis Political Environment
Obtainment of license

Economical Environment
Increase in purchasing power

Increase in demand for luxury goods

Increase in rental and labor costs

Increase in price of residential properties
Demographic Environment
Increased foreign residents

Aging population

Dense population

Socio-cultural Environment
Cultural changes

Attitudes and Lifestyles
Product Sales of dogs-related products
and hostel services Food Events and activities Meals available vary from plump whole chicken meals,
fish meals, beef meals to fresh grain meals

Snacks such as Honey Biscuits

Study nutrition for dogs deeply

Highest standard and contain all natural ingredients
such as birthday and wedding

organize special dog parties with ideal settings

celebrate their dogs’ birthdays, weddings
dog clothes, puppy pads, dog toys,
dog houses, dog carriers, etc.
Place Location
-Taipa district, specifically Av. Olimipica

Café Layout
- three main areas : the dinning area, the kitchen area and the customer service area

- Dining area occupies half of the store space

- Inside the Kitchen Area, there are cooking station, dishwashing, and food storage.

- Customer service area is located at the entrance
Price pet-shaped cookies costs $40 per bag
$45 for a meal package
Dog snacks $ 10

Internet Marketing
- Website
“About us”, “Offerings”, “Forum”

Direct Mail Leaflets, Brochures and Carry-Home Menus
- distribute during mornings and evenings in most favorite dog walking spots,
specifically in areas located near, Flower City Garden,
- For each dollar guests spent in our café, we will donate 1% of it to Macau Anima

Personal Selling
- allocate professionally-trained representatives, who are the first point of contact,
to persuade dog lovers to take action
Revenue Forecasting Forecasting data
- past quarterly industry sales

Sources of revenue
= restaurant service + pet care products
Industry sales
= Average sales of small restaurants * 70% Average sales of pet shops * 30%

+ Data for Average sales of small restaurants
Yearly sales of small restaurants
(source: DSEC, )
Data for Average sales of pet shops
- Total number of dogs in Macau
(source: Canil Municipal of Macau)

- Average spending on one dog
(source: survey on 40 dog-owners)
The End"
Full transcript