Principles of Marketing - Sem III

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 15

Shaheed Sukhdev College of Business Studies

University of Delhi

PRINCIPLES OF MARKETING: TERM PAPER


ON
SUPERTAILS: ONE STOP SHOP FOR DOG OWNERS

Group Members:
Rishi Singhvi (21187)
Riya Bansal (21189)
Shreya Goyal (21215)
Sreya Sanghai (21228)

Under the guidance of Ms. Anuja Mathur

1
Table Of Contents
S. No. Title Page No.
1. Abstract 2
2. Research Methodology 3
3. Objectives 3
4. About the company and Market 3-4
5. STP Strategy 4-8
6. Marketing Environment 8-9
7. SWOT Analysis 9-10
8. Marketing Mix 10-14
9. Conclusion 14
10. References 14-15

Abstract
It is all too easy to forget that humans share the planet's resources with other forms of life. No
matter where they lie on the socio - economic spectrum, individuals are so absorbed with their
daily lives that it is simple to forget. Owners of dogs may not agree. They are given continuous
affection and company. One's emotions and care are interwoven with the wellbeing of one's
pets because they are an extension of one's own self. As one's pet plays around and waits for
attention or becomes aware of one's true emotions in the present, joy is palpable and
penetrates the environment.
Everyone who considers and believes they would be able to provide for and take care of a live
thing that would be dependent on their actions for food and care is a pet parent. The most
important thing is the sense of responsibility that is instilled, whether before or after adopting
the particular pet. It is sensible to reason that one's pet deserves the highest amount of care
possible, regardless of the issue being minor or major or in between minor and major, when
times are not great (which is bound to be frequent; just like one's own baby).
The market growth rate in India for this sector has increased from 16–17% in 2019 to over 20%
in 2020. The demand for compassionate and responsive service providers, especially in the
areas of feeding and healthcare, is growing along with the nation's pet parent population.

Research Methodology

2
This paper is solely based on secondary research done by the team members. Our sources
include a variety of tools such as academic journals, online communities, company websites,
market research reports, and business press.

Objectives 

1. To study and analyse the current Segmenting, Targeting, and Positioning (STP) strategy
of Supertails 
2. To research the broad marketing environment of the pet care industry and Supertails, in
particular
3. To perform the marketing mix analysis using the 7P’s - Product, Price, Place, Promotion,
People, Physical Presence and Process

About the company

Supertails is a ground-breaking web platform that offers a one-stop shop for pet food and
supplies to the ever-growing pet parent community. They presently provide more than 120
brands in the pet care industry, making it the nation's largest collection of pet care brands
available on a single platform. What sets them apart Supertails offers same-day delivery in
major areas and has the largest selection of products, including over 200 pet care brands. A
team of highly skilled internal veterinarians and pet behaviour experts provide the fully digital
telehealth consultation and online dog behaviour training services that set Supertails apart
from the competition. Supertails aims to unite a presently dispersed pet parenting community
in India and provide comprehensive support to make pet parenting enriching by combining pet
supplies, veterinary care, and training under one roof.

There are several entrepreneurs on the Supertails squad. Previously, Varun Sadana served as
co-founder of Licious and VP of Snapdeal, Vineet Khanna as SVP of Licious and AVP of Snapdeal,
and Aman Tekriwal as CFO of Licious. Dr. Shantanu Kalambi, the creator of Dial-a-vet and the
Chief Veterinarian at Supertails, is also a member of the founding team. Along with starting a

3
tele-health programme for animals, he has also worked on numerous animal welfare and
conservation initiatives with organisations like CUPA, Wildlife Trust of India, and ReefWatch
Marine Conservation.

Market Size:
The population of pet dogs in India amounted to around 19.5 million in the year 2018. It was
forecasted that the population will reach over 31 million by the end of the year 2023. This
growth in the number of pet dogs has led to the increase in pet food sales, from approximately
139 million U.S. dollars in 2014 to approximately 285 million dollars in 2018.

The pet food market in India is projected to register a Compound Annual Growth Rate of 4.7%
through 2027.
India’s pet care market is projected to grow at a value of INR 7,500 Crores by the end of 2026.
Indian pet owners spend approximately Rs 4,000 per month on their pets, which is equivalent
to USD$52.00. Most of this amount, between 75% and 80%, goes toward food and treats. The
remaining is spent on accessories, grooming supplies, toys, and services.

Market Segmentation:
1. Geographic segmentation
We divide it into different geographical units such as nations, regions, states, counties,
cities, or even neighbourhoods. 

City or metro size


Bengaluru was declared the most pet-friendly city in India in a survey of 1500 pet
parents. It was followed by Mumbai. This can give us an estimate that the people in
these two cities have the most number of pet dogs.

Density 
There is a higher propensity for urban dwellers to form the market for Supertails since
they’re people with higher income more exposed to new trends such as these.
Supertails should focus its marketing efforts on the two cities first to gain a loyal and
credible market share.

2. Demographic:
Age and Life-cycle Stage
0-11: Families with members under 6 have a high probability of having a pet dog.
Scientists have actually found that children who grow up with pets are less likely to

4
develop asthma and allergies later in life. These benefits incentivise parents to own a
dog.

12–19: It is less likely that teenagers would adopt pet dogs as they’re now handling
different pressures in life. It is difficult for them to manage owning a dog as well as
school/college.

20–34: People in this age bracket tend to view pet ownership as a way to experience
some of the responsibility of raising children. They believe that having a pet completes
their family.

35–49: People in this age bracket tend to avoid adopting dogs. This is because their
children are now in the growing stage, it is extremely difficult for them to manage a very
large family.

50 and over: Pet parents are on the rise among baby boomers whose adult children
have left home. Part of the growth in this demo is attributed to a broader recognition of
the health benefits associated with pets and animals, especially for the elderly. Boomers
are also the biggest spenders when it comes to pet care. Having a pet can help older
adults cope with mental and physical health issues. 55 percent of adults ages 50 to 80
have a pet, according to the new findings – and more than half of those have multiple
pets.

Gender
Examining pet ownership by various demographic categories, the poll finds women
(69%) are much more likely to own a pet than men (55%)
Forty per cent of the country’s  pedigrees are registered to women, compared with only
21.5 per cent to men.

Income (Annually)
Under 2.5 Lakh: People are less likely to adopt pets as well as spend on their care as it is
extremely expensive for them. They’re more likely to focus on improving their standard
of living.

2.5- 10 Lakh: Similarly, for this income group too, it is less likely for them to spend on
pet care as it is a luxury service for them. They’d be willing to pay for the local products
rather than Supertails products.

5
10- 12.5 Lakh: There are two divisions to this:
a. Families: Lesser probability of opting for pets or pet care products since they’d be
unwilling to venture out to online stores and rather spend on increasing their own
standard of living.
b. Single households: These people are likely to spend on pet care products as they
have only themselves to sustain. Additionally, single households tend to look more
after their pets due to psychological reasons.

12.5 and above: Either way, this income group has the highest probability to spend on
pet care products as they live a life of luxury. This also spills over into them looking after
their pets.

Generation
Owning Pets
According to an APPA study, Gen Z stood at 14% ownership of pets. Millennials are the
largest segment of pet owners at 32%. Gen X stood at 24% with Baby Boomers close
behind at 27%.

Brand Loyalty
52% of Gen Z believe themselves to be loyal to a brand. 54% of Millennials, 57% of Gen
X, and 48% of Baby Boomers consider themselves to be the same.

Propensity to spend on Pet Care


Gen Z and Millennials are more willing to purchase a variety of products, including
different types of pet food, treats and toys, while Baby Boomers and Gen X are more
likely to maintain the pet care attitudes and behaviours they’ve had for years.

Pet Food
In attitudes toward pet food spending specifically, APPA found that 33% of Millennial
and 31% of Gen Z pet owners plan to spend less money on pet food, while only 18% of
Gen X and 8% of Baby Boomers plan to spend less.

Covid Aftermath
Within the segments of Millennials and Gen Z, APPA found that both generations of pet
parents have spent more money on their pets in the past year, with 62% of Millennials
and 52% of Gen Z upping their spending. Millennials and Gen Z lead the category of
online pet food and treat purchasing, particularly in subscription-based purchasing.

6
3. Psychographic:
Lifestyle- For those who reported that their health was fair or poor, pet ownership
appeared to offer even more benefits. More than 70 per cent of these older adults said
their pet helps them cope with physical or emotional symptoms, and 46 per cent said
their pets help take their mind off of pain.

4) Behavioural:
Regular occasion: Supertails can target frequent buyers in this category with products
that are needed for daily use. These include things such as food, toys and grooming
supplies.

Special occasion: Products such as treats, travel supplies, and bedding are generally
purchased less frequently.

Benefits: Quality becomes of utmost importance when it comes to this sector due to the
fragile nature of pet dogs. Therefore, rather than focusing on economies of scale and
mass production, Supertails should focus on improving the quality of its products.

Market Targeting:
Rather than focusing on mass targeting, Supertails should focus on differentiated markets
mainly:
1. Gen Z and Millennials
2. Annual Income groups of 10L and above
3. Urban Areas in Tier 1 Cities

Market Positioning:
Since, brands are made in the minds of consumers itself, Supertails should position itself as:
1. Environment friendly brand
2. Semi-Luxury brand catering to both daily and special needs
3. Offering superior quality products
4. A high-tech brand working on newer variations

7
Marketing Environment
1. Demographic Environment
In the present market scenario, primarily two demographic trends are leading the pet
care industry.
a. Millennial singles- In this fast-pacing world, where millennials are often hustling in
their professional life, 76% of the young working force live away from home in flats
and PGs. In this regard, they often end up feeling lonely and need someone
permanent with them that can feel like home. With the rise of this trend, more
single millennials are adopting pets.
b. Millennial Couples- the present-day couples prefer doing live-ins and focus on their
careers rather than getting married and having kids early in their lives. But these
millennials tend to look at adopting and grooming pets to experience some of the
actual responsibilities in raising their own children. Hence, these parents take great
interest in raising their pet and often purchase high quality products and services for
the grooming.
c. Senior Citizen Couples- Recently, it has been observed that the elderly couples
whose children go away from them for higher studies or job overseas often end up
filling that void by adopting a pet.
 
2. Economic Environment

8
An increase in the disposable income of Indian consumers, especially in metro and tier I
cities has resulted in a boom in the pet care industry post Covid-19. Pet parents can
afford to pay the premium attached with taking good care of their pets be it pet
insurance policies, high- quality food or salon and grooming sessions. This
complementing economic environment presents a lucrative opportunity for Supertails
to market its offering.
 
3. Social- Cultural Environment
Pet owners nowadays form communities and associate with a feeling of belongingness
as ‘Paw Buddies’. The younger generations are especially embracing this phenomenon
and regularly take their pets to veterinary clinics to have their animals checked out and
to take advice on healthcare and dietary supplements. This culture of being pet parents
is gaining relevance day-by-day and hence, creating a wider customer base for the pet
care industry as a whole.
 
4. Technological Environment
Increasing technological trends and services have changed the way the world functions
and consequently its impact has also reached the pet care products. Online walk
trackers, diet recommendations for different breeds while others like toys and feeders
that can be operated remotely from a mobile device are gradually becoming popular
amongst pet parents. But secondly, technological advancement is also making pet care
and grooming more accessible and convenient for pet parents. Shoppers prefer to
browse and buy a wide variety of products online and have delivery options that suit
their needs and lifestyle. They prefer home delivery of everything from dry food and
treats to home-cooked designer meals.
 
SWOT Analysis
1. Strengths
a. It provides a one stop shop for all pet parents
b. It is a high tech start-up therefore focuses a lot on quality and innovation
c. It is purely online therefore no geographical constraints
d. Focuses on sustainability in an ever growing environmental conscious
demographic

1. Weaknesses
a. The pet care industry is an unexplored market and hence Supertails has niche
target audience which may turn out to be a weakness since the customers may
be volatile. This is mitigated by the propensity of their audience to be brand

9
loyalists due to their strong social media marketing  coupled with the superior
quality of products they offer.
b. Since operations are purely online, there may be issues in credibility which can
be solved by good customer service and grievance handling
c.
3. Opportunities
a. It has the opportunity of capturing a larger market share due to online
operations which does not restrain its geographical abilities
b. The growing market of Pet Care acts as a great opportunity to capture the new
market.

4. Threats
a. It may have difficulty in competing with existing players such as Grofers, PetNest,
Snouters, etc. but none of these offer a comprehensive list of products as
Supertails does.
b. It may face an unstable supplier distribution network since it is in a very nascent
stage. This can be tackled by offering incentives to suppliers in the beginning
stage.

Marketing Mix of Supertails


1. Price:
Being an online platform selling branded products, Supertails charge fees from the
companies whose products it displays on its website. It also charges commission from
the
vets and consultants who it gets customers to.
However, more information on Supertails’ revenue stream was not available on its
website or the internet. This is our team’s analysis and understanding of its possible
revenue model.

2. Place:
Supertails follows an indirect channel of distribution wherein they assimilate these
products from all across India and create a one stop solution for pet owners.
They have a web friendly interface and are looking to launch an app on both ioS and
Android platforms.
They also follow a purely digital form of distribution with no physical contact therefore
providing services to the whole country.

10
3. Product:

Supertails offers a wide range of products and services:


1. Food
a) Special food for Puppies
b) Dry Food
c) Wet Food
d) Food Supplements
e) Prescription Diet

2. Treats and Chews


a) Biscuits and Cookies
b) Bones and Chews

11
c) Dental Treats
d) Training Treats

3. Health and Wellness


a) Fleas and Ticks
b) Grooming Supplies
c) Training, Cleaning, and Waste
d) Disposal

4. Accessories
a) Collars, Leashes, and Harnesses
b) Bowls and Feeders
c) Toys
d) Clothes and Accessories
e) Bedding Supplies

5. Consult a Vet
a) Every appointment includes: 30 minutes with a vet, instant prescription and pet health
report, and free delivery on medicines purchased.
b) Comprehensive consultation offered ranging from issues relating to ears, eyes, skin to
reproduction and general check-up.

6. Dog Behaviour:
a) 1:1 consultation with an experienced behaviour expert
b) Turnover time as fast as 15 minutes

Therefore, the company has 6 product lines with an average of 4 depth.

4. Promotion:
Supertails is a completely digital service platform, and the team spends 100% of its
marketing campaigns on digital channels. The company has followed the approach of
being extremely consumer targeted and consequently doing niche promotions on social
media be it through media planning, channel selection or driving the right value
proposition for the buyers.
Moreover, the team used social media platform to disseminate correct and useful
information about care, products, and services to pet parents. The brand caters to a Gen

12
Z audience who spend most of their time online and hence has adopted a digital-first,
online-only strategy for our platform. This creates a brand value amongst Gen-z and
millennials, who are their target customers, and increases the recall capacity in the mind
of the customers while making a purchase.

        
 
5. Physical Evidence:
Supertails has an online presence since it caters to the Gen-z and Millennials who
essentially prefer digital modes of purchases. It is a full-stack platform that offers pet
supplies, online vet consultations (more than 20,000 pet consultations to date), and
online behavioural training. It offers an assortment of 10,000+ SKUs and 200+ partner
brands across pet food, treats, accessories, grooming, etc. Essentially, Supertails acts as
a bridge between the scattered pet products and service brands and the customers. It
has no plans to open physical stores in the future.
 
6. People:
Supertails is a start-up founded by Varun Sadana, Aman Tekriwal, and Vineet Khanna, in
June 2021. It has a team of 50+ full time people who anchor the business growth and
customer engagement. The team comprises of experts specializing in their own fields
and entrepreneurs.

13
Additionally, since they offer services like online vet consultation, online dog training,
and a robust customer care centre, a team of 20 executives constantly speak to their
community members - giving them healthcare advice, helping them understand their
pet better, solving their problems, or even helping them pick the right product for their
pets.
 
7. Process:
Being a consumer product company, the process through which they connect the
consumer to its desired product becomes extremely important for their brand. What
makes Supertails unique amongst its other competitors is that has the widest
assortment of brands i.e. over 200 pet care brands and offers same-day delivery in key
markets. Its website displays a product catalogue along with exciting offers and
discounts to entice its customers. Finally, the customers can complete their purchase by
making the payment online or through the COD option, for a hassle free process.

Conclusion
Supertails is an evolutionary start-up creating immense value through the products and services
offered. They are working in a fast growing and dynamic sector with magnanimous increase.
Coupled with the superior quality of service and products, they should also focus on their
marketing efforts. In a day and age that is run on perception, it is extremely important for
brands to position themselves well. The customers of Supertails have given positive reviews for
the services offered but to capture a larger market share and expedite themselves, the
company needs to segment its consumers according to their sector. Not only this, it is
imperative that they focus on the SWOT analysis, delve into the 7 P’s of marketing and
understand the environment they operate in through the PESTEL model. Ultimately, business
has two main functions which are innovation and marketing.

References
1. https://www.bangaloreinsider.com/supertails/
2. https://supertails.com/
3. https://www.researchgate.net/publication/
227673637_Gender_Differences_in_Owners_Interacting_with_Pet_Dogs_An_Observati
onal_Study
4. https://www.prnewswire.com/news-releases/data-pet-owners-far-more-likely-to-be-
female-affluent-older-301035570.html

14
5. https://www.prnewswire.com/news-releases/4-trends-driving-pet-population-and-pet-
ownership-growth-300463088.html
6. https://www.healthforanimals.org/reports/pet-care-report/global-trends-in-the-pet-
population/
7. https://www.dogtopia.com/franchising-us/blog/demographic-trends-pet-care-industry/
8. https://yourstory.com/tag/supertails
9. https://www.statista.com/statistics/1130651/pet-ownership-by-generation-us/
10. https://indianexpress.com/article/lifestyle/health/having-pets-may-lower-stress-in-
older-adults-study-5660443/
11. https://www.gfk.com/insights/mans-best-friend-global-pet-ownership-and-feeding-
trends#:~:text=On%20average%2C%20one%20third%20
12. https://www.livemint.com/news/india/indias-pet-care-industry-grows-after-covid-
pandemic-nestle-emami-join-sector-11659261412145.html
13. https://www.marketdecipher.com/report/india-pet-care-market
14. https://petkeen.com/pet-industry-statistics-india/#:~:text=The%20Top%2012%20Indian
%20Pet,projected%20to%20reach%20%24490%20million.
15. https://timesofindia.indiatimes.com/india/bengaluru-and-mumbai-are-the-most-pet-
friendly-cities-in-india-reveals-survey/articleshow/69962017.cms

15

You might also like