Paws

Furniture
Strategic
Marketing
Plan
Daniela Mordetzki E09

1
 Table of contents
3. Customer needs 24. Competition – furniture
4. Addressing customer needs 25. Product name and associations
5. Simba’s story 26. Packaging, colors and logos
6. Introducing Paws Furniture 27. Pricing:
7. Objectives 28. Reference price and pricing
8. Profit decomposition – KPI tree 29. Price sensitivity
9. Information to collect 30. Service outputs and distribution channels
10. Purchase funnel – consumer journey (1/2) 31. Demand of service outputs
11. Purchase funnel – consumer journey (2/2) 32. Choice of distribution channels and markets
12. Consumer information search 33. Paws.com online store
13. Consumer choice 34. Implementation of market coverage
14. Customer lifetime value 35. Communication:
15. Industry analysis: 36. Communication objectives and budget
16. Pet care industry 37. Role of social media
17. Trends driving pet-industry growth 38. Sample message
18. Furniture industry 39. Message and media
19. Industry analysis – conclusions 40. Message and media – YouTube search results
20. Perceptual maps – scratching solutions 41. Message and media – Google search results
21. Targeting 42. Measurement and attribution
22. Positioning 43. Demand prediction and P&L:
23. Competition – scratching solutions 44. Demand prediction
45. Profits and losses
46. Appendix – changes to parts 1 & 2

Numbers correspond to page numbers 2

Customer
Needs
Cat owners really know what’s
keeping them awake while they’re
away from home.

In a typical day, most pets in the UK are

left alone for up to five hours, with 5%
left for over 8 hours* – and we know
what the cats among them are probably
doing with their sofas.

Paws is an innovative range of

furniture and upholstery solutions
with a unique leathery texture that
feels unpleasant to cat claws,
discouraging scratching in a safe and
natural way.

The natural threading prevents

scratching while maintaining a stylish
and modern design, and eliminates the
need for all those unreliable sprays,
chemicals, stickers and covers.

Sofas live longer, cat parents are

happier and kitties don’t get yelled at.
No more ruined sofas to hide from
guests.
*PetPlan.co.uk census 2011 3
 Addressing
Customer Needs
1. Maintain aesthetically pleasing, comfortable
furniture with cats in their home.
2. Ensure their pets are safe, healthy and do not
experience physical or psychological discomfort –
often a result of existing alternatives, such as sticky
strips, chemical sprays or behavioral training. Paws
eliminates the attractiveness and feel of furniture to
naturally direct cats to scratching posts and trees.

3. Reduce overall spending due to frequent

replacement of damaged furniture. Paws enables a
longer product lifespan and eliminates the replacement
driver of scratching damage for customers. Customers
will now evaluate replacement/upgrade in the same
way as non cat-owners (design upgrade, natural long-
term wear and tear, etc.)

4
 Simba’s Story
Our journey began in 2013 in sunny Tel Aviv, when a couple of
newlyweds adopted a two-month old street kitten. Quickly enough,
Simba got to work on a dark blue IKEA EKTORP sofa and sent his
owners scrambling for solutions on the internet.

We know that cats need scratching to sharpen their claws, which

otherwise itch and hurt. It’s a natural, healthy behavior that also serves
to mark territory, relieve stress and exercise – cats mean no ill will, but
their scratching can have destructive results.

Cats are also notoriously picky about their preferred scratching surfaces,
and as in real estate, location is everything – some prefer horizontal
surfaces, others vertical, some love cardboard boards and others ignore
them completely. Each cat has its own tastes and preferences, which
makes shopping for substitutes a costly and exasperating affair, as
most just don’t work.

Behavioral training was wildly unsuccessful

for our founders. Simba loved the sofa and
would not be fooled into giving up his
favorite scratching spot.
They knew there had to be another way.
5
 Introducing Paws Furniture
Smooth leather-like
fabric with invisible Neutral colors disguise
threading discourages the appearance of cat
scratching fur

Modern and modular

design

6
Objectives
The primary objective is to become profitable within
two years and capture 20% market share as a product
leader.
What - Furniture and upholstery solutions that prevent
cat scratching with an innovative fabric design.
Eventually consider expansion to other categories that
cats are attracted to (e.g. rugs, mattresses, carpets).
When - Begin manufacturing in 6 months and launch
initial pilot within 12 months
Where – London (428K households with cats in 2016, 1.4 cats
per household). If successful, begin expansion to semi-
urban/urban regions in the UK and Germany within 18
months.
Who - Adult owners of cats and kittens

7
Profit Decomposition – KPI tree
Profits

Revenues Costs

Unit sales Average price Sales channel COGS Sales Advertising R&D After-sales

Customer
Share Market size High-end line Online store Materials Sales force
service

Affiliated Retailer fees

Penetration Manufacturing
Cat owners Low-end line furniture and Returns
share and inventory
retailers commissions

Share of Warranty /
Distribution
requirements repair

• Furniture as a durable good will not have a relevant heavy usage index, and market share will depend mostly on penetration
share and immediate satisfaction with the product
• Products will be sold both online and through established furniture retail chains, rolling out following initial pilot success
• For the London pilot, products will be displayed in pop-up stores around the city and orders will be made possible online
• In all cases – a 100% satisfaction guaranteed return policy will be offered
• Manufacturing will be initially outsourced to existing plants in Asia, provided reliability of patent and design confidentiality

8
 Information to collect
Exploratory information:
1. Number of households with cats and kittens in target markets
2. Average age and income of consumer segments
3. Number of furniture purchases per household per year
4. Average spend on furniture per customer segment
5. Sales channel of furniture purchases per customer segment (online / physical
stores)
6. Purchases of substitutes per year (scarching posts, sprays, sticky strips, covers,
etc. – volume and total spend)
7. Current dissatisfaction levels with cat behavior and importance of furniture
appearance in each customer segment
8. Satisfaction levels with effectiveness of substitutes
9. Search engine data on “cat scratching solutions” in target markets, track
keywords on online forums and blogs

9
 Purchase Funnel /
Consumer Journey (1/2)
Customers (cat-owners) actively looking for scratching solutions, not necessarily
considering new furniture. They have most likely begun their search online and to some degree
consulting friends and veterinarians.

Awareness of Paws Consider Paws out of Evaluate economic and Purchase Try, like,
furniture as a alternatives, given affective value of purchase – recommend
permanent solution to information on effectiveness try the product at pop-up
existing alternatives and success rates store, read reviews

Advertising, online Technical information, Pricing information, Spread the word –

content in blogs and customer reviews product displays review, blog, vlog
forums, word-of-mouth

10
 Purchase Funnel /
Consumer Journey (2/2)
Customers (cat-owners) looking to upgrade their furniture, either due to scratching
damage or general reasons. They are either interested in upgrading but not yet shopping, or
already doing research and browsing to narrow down their options. They have most likely begun
their search online before visiting physical stores.

Awareness of Paws Consider Paws out of regular Evaluate economic and Purchase Try, like,
furniture and its functional furniture choices affective value of purchase – recommend
advantage among furniture try the product at pop-up
options store, read reviews

Advertising in furniture Strong showcasing of Pricing information, Spread the word –

search sites, design web furniture specs, quality product displays review, blog, vlog
sites and magazines, word- and design as well as
of-mouth scratching solution specs

11
Consumer Information Search
What are consumers looking for and where is the information

• Online content and product reviews

• Influencers (Jackson Galaxy, etc.)
Does it really work? • Friends
• Veterinarians
• Cat behavioral specialists

• 100% satisfaction return policy

Okay, but will it work • Product specs and technical information in promotional material
for my cat? • Ambassador Program who share kitty cam footage to showcase real cat behavior while
owners are away (no scratching)

Are the products • Product displays in pop-up stores and retailers – option to try for comfort
• Quality information on website
comfortable? Is this a • Online content, reviews, recommendations
quality product? • Clear customer service and return policies

Do the products look

• Product website, catalogues, advertising and promotional material
good? Can I have this in • Product displays in pop-up stores and retailers
red?

12
 Consumer Choice
Consumers will use a compensatory model, evaluating the functional
characteristics of Paws with the psychological characteristics of
choosing a home design product. The product will be compared with
existing alternatives, which are less costly on a unit basis but often
ineffective and need to be replaced frequently, as well as with the more
costly alternative of replacing damaged furniture every few years.
Psychological value of eliminating frustration from witnessing ongoing
damage to furniture is significant and will need to be estimated.
1. As it is a new product, consumers have little awareness of Paws and
can be captured by marketing and advertising to develop awareness.
2. The economic benefits should be prominently communicated to
customers in all interactions (one-time investment instead of many
smaller purchases results in lower total spending).
Key attributes Importance
Price High
Effectiveness of functional solution High
Quality of materials Med
Comfort High
Look/design High
Customization possibilities Low
Warranty/return options Med

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 • 4.8m households in the UK own cats
• 17% of the population
• 1.6 cats/ household on average
~8m pet cats in the UK
Millennials and young professionals
Young professional cat owners transitioning
into long-term furniture (graduating from
second-hand or low-cost options),
considering their options and price sensitive.
This group already experienced the damage
caused by cat scratching and will be
attracted by the durability of their first
important investment.
Cash flow = one-time purchase of low-end
lines (₤800- ₤1,000)
Customer
Lifetime Value
Baby boomers
Established cat owners who already own
mid- to high-range furniture that was
damaged or required significant effort to
protect. This group will be attracted by the
opportunity to upgrade their home furniture
and will possibly purchase additional
products to complement their initial
purchase (love chairs, etc.)
Cash flow = one-time purchase of high-
end lines (₤1,000- ₤2,000)
14
Industry analysis
15
Pet care
industry
Key facts and trends
(US)
According to the American Pet
Products Association (APPA):

• Revenue in the pet industry is

expected to be $62.75 billion in
2016, an increase of more than
4% over 2015.
• The average annual growth rate
since 2002 is 5.4%, and revenue
has been growing steadily for well
over 20 years.

Cat ownership rise driven by men, survey suggests – 30 March 2017

Cats may have already taken over the internet, but now they are stealing the hearts of UK men,
a survey suggests.
The Pet Food Manufacturers' Association said the number of pet cats in the country has gone up by
500,000 to reach eight million in the past year. The rise was driven by one million more men getting a
feline friend, the PFMA, which spoke to 8,000 households, says. About 17% of men in the UK (5.5m)
now own a cat, up from 13% (4.2m) in 2016, according to the survey.
16
Sources: GFK Pet Ownership Global Survey, 2016. The Nielsen Company, 2015, BBC.com
 Trends driving pet-industry growth*
Trends Effect on Paws
Humanization - Many types of pets have long been considered part of the family, but in Very positive – pet owners are
recent years that has started to translate to actually treating pets more like people. Pet more likely to embrace cats’ having
owners are seeking out higher quality foods, more high-end accessories and more an indirect say in the family’s choice
expensive medical treatments. of furniture
Premiumization - Premiumization is the creation of higher end or specialty products and
Very positive – more likely to
services to cater to these elevated requirements for our pets. Organic and natural treats
spend on specialty furniture, look
and foods, high-tech medical therapies and medicines, luxury services and even spas –
for high quality pet-care solutions
nothing is too good! Businesses that cater to these niche products and services are
and share experience with Paws
booming.
Health Benefits - Another driving force is a greater appreciation – based on scientific
Neutral – pet owners are bonding
research – of the bond between people and their pets. According to the Human Animal
more with their pets, could have a
Bond Research Initiative Foundation (HABRI), “People are happier and healthier in the
positive impact on willingness to
presence of animals. Scientifically-documented benefits…include decreased blood pressure,
pay
reduced anxiety, and enhanced feelings of well-being.”
Demographics - Current US demographic trends also favor continued industry strength
based on two groups: baby boomers and millennials. Baby boomers are launching their
Very positive – Paws is targeting
real kids into the wild and replacing them with pets - and they are pampering them. In
both segments with different lines:
almost all spending categories, spending declines once a person reaches 55 years of age –
• Baby boomers with high-end
but pet spending is peaking between the ages of 55 and 64. Millennials – people born
lines
between 1985-2010 – are probably the first generation to grow up thinking of pets more
• Millennials/young professionals
like humans than animals. They are finding their independence and have disposable
with low-end lines
income – and they are buying pets and spoiling them. Great for the industry – these folks
will be loyal customers for decades.
Economics - Pet industry revenue has shown growth even during times of economic
Positive – the industry is expected
trouble, so it only makes sense that current relative economic strength bodes well for
to maintain growth
continued industry strength.

Source: Franchisehelp.com, Pet Care Industry Analysis 2017 - Cost & Trends, based on APPA report
* Based on US data – assuming similar mega-trends apply to the UK
17
 Furniture The value of the UK Home market has grown at a steady rate since 2010:

industry
Key facts and trends (UK)
• ₤16.4bn estimated market
value
• 20% of people have bought
furniture in the last 3
months

• People in their twenties (ages 20 to

29) would like to improve the
furniture in their homes the most,
with a 40% level.
• For those in their thirties (30 to 39), the
overall size and layout of their homes
holds the greatest importance, with 39
percent selecting this priority.
• One third (33%) of those in the 40 to 49
age group express a strong desire to
improve their home storage space.
• People who would most like to upgrade
their gardens, yards, patios or any other
outdoor areas are those in the 50-to-59
(36%) and 60+ (37%) age groups. 18
Sources: Pragma, Market Snapshot UK Home Market 2016, Gfk 2015
 Industry
analysis -
conclusions
Market data supports the entry of Paws into the
pet-care industry as a long-term substitute to
existing scratching solutions:
• Cat ownership is on the rise
• The pet-care industry is growing strongly
• The furniture industry is expected to maintain
steady growth rates and rising in luxury
• Paws’ proposition is aligned with three key
trends in the pet industry: humanization,
premiumization and demographics
• Millennials are both buying pets and pampering
them, and also would like to improve the furniture
in their homes the most
• Baby boomers are replacing grown children with
pets and spoiling them with high disposable
income

There are no known alternatives to Paws that provide high effectiveness, positive effect on home decor
and target customers’ higher willingness to pay for long-term, safe scratching solutions

19
 Perceptual maps – scratching solutions
High effectiveness Positive effect on
home decor

Paws Paws

M BB BB

M
Covers

Low price High price Low price Sprays Behavioral High price
Scratching posts training
and cat furniture

Stickers
Stickers

Covers
Scratching posts
Behavioral and cat furniture
Sprays
training
No solution No solution
Low effectiveness Negative effect on
home decor
i.e. looks bad, clashes
with furniture, etc.

Based on estimates – author’s own perception M Millennials BB Baby Boomers 20

Targeting
Customer
Segment Description Size Preferences for attributes
value
Baby Established cat owners who 19m x 17% Mid- to high prices – high (₤1,000-
Boomers already own mid- to high- cat owners disposable income, ₤2,000)
Price
range furniture that was =~3.2m happy to upgrade
damaged or required furniture
significant effort to protect.
This group will be attracted by High – do not want their
Effectiveness
the opportunity to upgrade furniture ruined
their home furniture and will
possibly purchase additional High – value design and
products to complement their Effect on look, would love to get
initial purchase (love chairs, home decor rid of cat trees in living
etc.) room
Millennials Young cat owners 17m expected (₤800-
Mid- to low prices – first
and young transitioning into long-term in 2019 Price ₤1,000)
important investment
profs. furniture (graduating from x 17% cat
second-hand or low-cost owners
options), considering their =~2.89m High – do not want their
Effectiveness
options and price sensitive. furniture ruined
This group already
experienced the damage Medium-high – values
caused by cat scratching and Effect on overall look but does not
will be attracted by the home decor mind having cat items
durability of their first around
important investment.

21
Positioning
“For dedicated young
professional and baby
boomer cat-owners who
are looking to upgrade their
furniture but worried their
cat will ruin it, Paws is the
safest, most effective and
best value-for-money
solution among all other
alternatives, preventing
damage completely and
eliminating heartbreak • Category frame of reference – customers are frustrated with cat
while providing high- scratching and need solutions, in the form of scratching diversion
or directly replacing damaged furniture.
quality products and
• Points of parity
sophisticated design that • Furniture brands - quality, durable and attractive design
are outstanding in their • Scratching products - safe, natural solution to scratching
own right.” • Points of differentiation
• 100% effectiveness – not a single scratch guaranteed
• No compromise on decor – no more trees, covers or sprays
in the living room
• Best lifetime value - spend now and save overall
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 Competition – scratching solutions
Cat tree with beige scratching post - Scratching post – by Trixie, #1 in Pet
by Lolipet, #2 in Pet Supplies > Play Towers & Supplies > Beds & Furniture on
Trees on Amazon.co.uk (₤97.99 regular price) Amazon.co.uk (₤13.99)

• Scratching posts are market leaders, very popular and come in endless sizes and configurations. They often
combine scratching solutions with activity trees for cats to play and rest in (observation platforms, shelters,
hammocks, toys, etc). They must be sturdy to ensure cats don’t fall when scratching and climbing, and durable
enough so that the material doesn’t come apart when scratching. Cats will usually ignore them unless they are
placed in an interesting spot – i.e. the most central and prominent location posible.
• Paws’ role will be that of market challenger – a new category that eliminates the need for scratching posts
in the living room (cats will still need to scratch something - posts will still be needed elsewhere in the house).
• Paws will engage in a frontal attack and stress the low effectiveness and unappealing look of scratching
posts next to sofas and chairs, and the overall cost of trying and replacing different posts until finding one
that works best.

23
 Competition – furniture
Thankster sofa by Loaf in Old Rose IKEA EKTORP three-seat sofa in Nordvalla
vintage velvet, ₤1,195. red, ₤350. An IKEA bestseller

• Compared to established furniture brands, Paws’ role will be that of market challenger – a new
category that will add functionality for cat owners.
• Paws will engage in a flank attack and stress the overall cost and heartbreak of buying a beautiful sofa
onlly to see it destroyed.
• It will compete with similar quality, comfort and design attributes while stressing the lifetime value of the
product and the added benefit of eliminating the need for covers and scratching posts next to the sofa.

24
 Product name and associations:
Paws Furniture
• The name of the product reflects its functional purpose and connection to cats, while seeking to
maintain a direct and polished sound

• The overall tone of all communication messages will be deeply personal and down-to-earth,
stressing the psychological and long-term value of the product first and describing product
characteristics as supporting arguments (quality, confort, etc).

• The message should be clear – this is a product made from us to you. We’re not an anonymous
corporation, we make good products that deliver real value.

• Consumers’ response to the idea should be - “finally!”

Main associations Secondary associations

1. Personal – small company founded by two real 1.
people with the same problem, sharing their
solution with other cat owners (communication)
2. Family – making the world a better place of cats 2.
and their human families, where no scratch
should stand in the way of harmony and a happy 3.
home (communication)
3. Comfort – of body and mind – “kick back and 4.
relax in our high-quality furniture, knowing that
everything will be all right” (product
characteristics, communication)
Authentic – “down-to-earth and hardworking,
developing quality products that really work”
(communication)
Approachable – “we’re here for you”
(communication)
Understanding – “we get it” – deep insights on
consumer needs (communication)
Home – creating a safe haven where everyone can
let their guard down, with no fears
(communication)

25
Packaging,
colors and
logos
• Packaging – items will be
delivered whole (no
assembly required),
covered in basic protective
wrap
• Brand colors – soft modern
neutrals in shades of gray,
blue, light browns. Accents
in bright true reds (see
images)

• Brand will represent the

associations related to
home, family, comfort,while
maintaining positioning of
a quality product

• Logos:

26
Pricing

27
 Reference price and pricing
1. Knowledge and experience
• Product is new, there is no history of consumption and previous transactions Price intervals
and references:
• Paws is however expected to be compared to previous prices paid for regular
furniture

2. Perception of value – comparison with regular furniture ₤3,000 - Raft

1. Demonstrate why Paws is more expensive than competitor’s products on an
unit basis, given its functionality advantages. Premium over competitor
prices would be explainable.
2. Demonstrate that Paws is less expensive than: High-end line
• One-time spend on normal furniture + long-term spending on scratching ₤1,000- ₤2,000
alternatives
• One-time spend on normal furniture + replacement after a few years ₤1,200 - Loaf

3. Expectations
Low-end line
1. Expected future price – difficult to assess given that Paws is a new product
and there are no similar alternatives in the market ₤800- ₤1,000
2. Usual discounted price – discounts will be minimal to avoid negative impact
on perception of the brand’s quality. Promotions will follow the furniture
industry’s accepted norms. ₤350 - IKEA

28
 Price
sensitivity
Paws is a differentiated product that appeals to
specific market segments and will not compete in
mainstream furniture markets
By locking in customers for several years, Paws
can gain market share from traditional furniture
competitors and benefit from high resilience
against market movements, as customers needs
are expected to remain stable
• Maximize clout – increase market share
from regular furniture
• Minimize vulnerability – prove products
provide a superior and differentiated service,
create a loyal customer base

29
Service outputs and distribution channels
30
 Demand of service outputs
Customer needs from channel service outputs are expected to be similar for both segments
(millennials/young professionals and baby boomers):

Bulk Location Product Customer Information Delivery Channel

Channel
breaking convenience variety service provision time yes/no
Online direct (Paws
N/A H M H H M Yes
website)
Online indirect
N/A H H L M M No
(e.g. Amazon)
Large furniture
N/A L H L M M No
retailers
Specialty furniture
stores to medium N/A L L H H M Yes
retailers

Customer needs N/A L H H H M

• Paws will generate awareness through communication and media efforts, and would not benefit from being placed in
a “sea” of similar-looking options in large furniture retail outlets
• The demand for customer service and information provision is very high, and Paws’ advantages and brand story must
be communicated appropriately on site
• Location convenience needs are estimated low, as customers are used to travelling to specific locations to try furniture

L – low, M – medium, H - high 31

Choice of distribution
channels and markets
Channel Coverage Intensity of channel
Online High Intensive
direct All customer segments distribution
(Paws will have access to the Paws will deliver to
website) website all areas in the U.K.
Specialty Medium Selective distribution
furniture Urban customers have 1-2 outlets per area,
stores to relatively easy access to strong selling
medium the stores, customers support and medium
retailers outside main cities availability
would have to travel or
revert to online
shopping

32
Paws.com
online store

Paws.com is a fictional website designed with WIX.com for the purposes of this assignment 33
Implementation • Paws will be introduced to markets one at a time, in
order to gauge customer interest and test the product,
of market pricing and channel efficiency

coverage • Given that the product is patented and difficult to

imitate, there is no imminent danger from allowing
competitors to see the product
Phase 1 London • Paws will be initially launched in London in order to
generate buzz and create awareness, and develop a
18 months loyal customer base with significant social media
presence
Phase 2 Rest of UK • If successful, Paws will begin expansion to semi-
urban/urban regions in the UK and Germany within 18
6 months months of London launch

Phase 3 Germany

12 months

Phase 4 Rest of
Europe (?)

34
Communication
35
 Communication objectives and
budget
• Education - target customers are at the very top • The cost of 1,000 impressions for a 30s promoted
of the consumer journey and need to be educated video or post on social media is ₤24 and ₤16 for a
on the existence and attributes of the new picture. That would bring our cost for the 6.1m
product market to see one single video/post and one
• Consumers will need time learn about the picture to ₤250,000
product on their own, and thus will be • To be conservative, and given the importance of
directed to the website and blog posts for educating customers repeatedly in initial years, the
more information communication budget will be estimated at
• Both types of consumer journeys need to be ₤250,000 a year, where:
targeted, at the points where they find
information (see pages 10-12: cat-owners
Channel Budget (₤/year) % of budget
actively looking for scratching solutions and
cat-owners looking to upgrade their furniture) Sponsored content from
87,500 35%
• Interest – digital and social media campaigns will bloggers and influencers
create buzz to create awareness and attract target Social media campaigns 75,000 30%
consumers to the new product
YouTube ads 50,000 20%
• Motivation – in both types of consumer journeys,
whether young professionals or baby boomers, Online ads and paid search 37,500 15%
consumers are likely to be searching online and
will be sensitive to content from bloggers and Total budget 250,000
influencers

36
 Role of social
media
• Social media will play a pivotal role in generating
brand awareness and developing a network of loyal
customers and brand ambassadors
• Paws draws on messages of authenticity and personal
connection to founders, and social media allows
customers to react to a personal story
• Cats are already stars of social media in their own
right, attracting even non-cat owners, and Paws will be
able to leverage their established online presence to
create awareness
• Sharing user experiences will be key to overcome
initial obstacle of higher perceived price and showcase
the product’s value. Satisfied customers who become
brand ambassadors will be valuable catalysts.
• Campaigns: #showmypaws and #pawtectmysofa

37
Sample message Simple, concrete, using
existing memory structures
(the problem we’re solving)

This spring, get him a

sofa he won’t want to
shred.

100% scratch proof furniture.

Learn more at paws.com

#pawtectmysofa

Brand salience Attracts attention from

Go to website for
(three mentions target audience (cat lovers,
education
of “Paws” in ad) owners)

38
 Message and
media
• Sponsored content from bloggers and influencers
• Brand ambassadors will be key educators, explaining the
product to target audiences and endorsing its effectiveness
• Product main associations to be reflected – personal, family,
comfort
• Example – cat behaviorists such as Jackson Galaxy with a
strong online presence
• Social media campaigns
• Create interest and motivation
• Share personal story, user experiences, educate on product
attributes
• YouTube ads
• Generate awareness – lead to website for more information
• Placed during cat videos and content related to scratching
• See next page for results of “How to keep cat from scratching
furniture”
• Online ads and paid search
• Target consumers looking for scratching solutions or
furniture, lead to website for more information

39
Message and media – YouTube search results
507,000 results on
YouTube GB*

First result from

Jackson Galaxy

Second result from a

lifestyle and beauty
blogger, Living by
Lynette

Recommendation from
a vet

*Accessed on April 20th, 2017 40

Message and media – Google search results
1.53m results on
Google.co.uk*

Hacks

Feliway – a natural
pheromone spray

Traditional
solutions – posts,
behavioral training

*Accessed on April 20th, 2017 41

Measurement and attribution
• Given that communication campaigns will be exclusively managed
through digital and social media, with heavy reliance on the company
website, measurement and attribution will be based on common
industry-wide performance indicators for this type of media
• Web site traffic, clicks on adverts, number of impressions,
mentions, likes and shares will be key indicators of increased
awareness and interest by customers
• Given the importance of influencers, blog views and link clicks from
bloggers’ sites will be closely monitored in order to tailor the brand
ambassadors’ profiles and increase the effectiveness of their message
• YouTube ads will also be tested to evaluate strength of responses
and increased educational behavior (i.e., number and proportion of
users who access Paws.com to learn about the product after seeing an
ad).

Timeline:
• Teaser campaigns will be launched two weeks ahead of the London pilot launch and then on all media
channels simultaneously, in order to create strong awareness and interest in the new product
• Bloggers and ambassadors will be filmed ahead of time in order to coordinate with the product launch
• A second wave of communication will be launched once sales have reached an initial threshold of
innovators that can be leveraged to jumpstart and increase imitator sales – emphasis on user reviews and
testimonials

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Demand
prediction
and P&L

43
 Demand
prediction
• Yearly demand for Paws Furniture will be predicted for three years
once the product has successfully launched in London and expanded
into the rest of the UK
• Given that Paws is a durable product, we expect sales to grow as the
brand and the product become well-known and reach a greater
portion of the target market
• Total market size in the UK is 6.1m, composed of the baby boomer
Expected Expected
segment (~3.2m) and millennials/young professionals (~2.9m)
demand revenue
(units) (millions of ₤) • Assumption: 5% growth rate in demand from year to year, estimate
based on cat ownership growth rates
Year 1 5,000 6.1
• Demand was estimated based on a similar home furniture disruptive
Year 2 5,250 6.5
product - the mattress in a box, where UK startups Eve Sleep and
Year 3 5,513 7.1 Simba reached sales of 25,000 mattresses in 12-18 months*.
• As the market is larger than Paws’ target market, demand for Paws is
Demand growth rate 5% estimated at 20% of mattress demand, to be conservative and based
on cat ownership rates of 17% in the UK
• See next page for detailed revenue calculation

*Sources: Retail Week, “Analysis: Who are the disruptors in the UK furniture market?”, March 2017. Financial Times, “Mattress wars: rude
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awakening for a sleepy market”, Oct 2016
 Profits and losses
Year 1 2 3 4
Average revenue per customer (₤/unit)
Young professionals £ 900.00 £ 918.00 £ 936.36 £ 955.09
Average price increase after Y1 2% 2% 2%
Baby boomers £ 1,500.00 £ 1,545.00 £ 1,591.35 £ 1,639.09
Average price increase after Y1 3% 3% 3%
Number of customers (units sold)
Young professionals 2,377 2,496 2,621 2,752
Baby boomers 2,623 2,754 2,892 3,036
Total units sold 5,000 5,250 5,513 5,788
Revenues (₤ thousands)
Revenues from YPs £ 2,139.34 £ 2,291.24 £ 2,453.92 £ 2,628.14
Revenues from BBs £ 3,934.43 £ 4,255.08 £ 4,601.87 £ 4,976.92
Total revenues £ 6,073.77 £ 6,546.32 £ 7,055.79 £ 7,605.07
COGS £ 3,644.26 £ 3,927.79 £ 4,233.47 £ 4,563.04
Gross profit £ 2,429.51 £ 2,618.53 £ 2,822.31 £ 3,042.03
Gross profit margin* 35% 35% 35% 35%
Sales and marketing expenses £ 250.00 £ 250.00 £ 250.00 £ 250.00
Administrative expenses £ 250.00 £ 250.00 £ 250.00 £ 250.00
EBIT (₤ thousands) £ 1,625.82 £ 1,791.21 £ 1,969.53 £ 2,161.77
EBIT margin 27% 27% 28% 28%

*Source: Chron.com, “The Average Profit Margin in Furniture” 45

Appendix –
changes to
parts 1 & 2
Part 1:
• Added feedback loop in
consumer journeys – last step
(try, like, recommend)
generates awareness and feeds
back to the beginning of the
journey. Pages 10-11
Part 2:
• Added target segments to
positioning statement. Page 22
General:
• Added section slides
• Added table of contents

Thank you!

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Disclaimer: Paws is a fictional product developed for this project, similar options exist but are mostly not advertised.
Images of Simba and founders on slide 4 (“Simba’s Story”) are personal photos and may not be reproduced without authorization.

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