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Nicos Canine Hotel Marketing Project Research Paper

Name of business service

The proposed small dog boarding business will be called Nicos Canine Hotel to provide dog boarding services to customers. The dog boarding business will be located besides the Career Centre in the 1390 Keasey Boulevard within the city, since the target market surrounds this location.

Audience for the proposal

The proposal is directed to an investor interested in owning 50% of the business through financing the startup cost which is $10,000.

Proposed dog boarding service


The business idea will be starting a dog boarding services to pet owners who have no dog handlers. The dog boarding business will offer services such as grooming, feeding, exercise, overnight accommodation, and veterinary services to dogs across the neighborhood. It will convince dog owners who are too busy or on trips and cannot take care of their dogs. The entire idea is package around the positioning statement that;

We have what everyone wants, and at considerable prices. The dog boarding services are unique and of high quality. They are supremely stylish, trendy and certainly the latest in the market. Those that subscribe to these services will have series of discounts and offers besides life membership.


The main competitors are the local dog boarding businesses which are spread across the targeted region. These competitors have been in the market for more than two years and heavily rely on repeat customers. The majority of the competitors rely on local consumers (Cantello par. 7). Therefore, they do not run promotional campaigns or advertise their products.

Therefore, the Nicos Canine Hotel business will have an advantage since it will create consumer awareness through its promotions and advertisements. Besides, the competitors charge high prices unlike this business that will form the pinnacle of affordable services. To overcome this competition, the business will use strategies such as consumer education on how to get the best from the services by using it appropriately (Clayton par. 5).


In the overcrowded dog boarding services industry, product positioning is directly linked to the success in the short and long term especially for a new product (Klein par. 4).

In order to achieve this aim, demographic differentiation will be based on income supported by strategic packaging and series of relevant marketing campaigns as the best approach towards commanding a price premium (Harvard Business School par. 8). As a result, the fair pricing mechanism among other factors will skew competitive advantage positively. This will be incorporated in the budges through use of a $50 symbol to represent the cost of each dog boarding services.

Adopting a ‘First-Mover Strategy’, Nicos Canine Hotel will position its services as the first of its kind in the market. Through a defined delivery channel and strong media marketing, the company will revolve on quality maintenance to support the leading marketer status as the most cost effective dog boarding service provider (Kotler and Keller 13).

In the process, focus will be directed to the most competitive price and what the customers are able and willing to pay. In order to cut a unique niche, the right audience (especially the male and female dog owners) will be captivated by the service options available, since their income cannot accommodate the expensive services provided by Nicos Canine’s competitors through the free dog badges given to every customer who visits the establishment.

Level of demand

The current demand for affordable and high quality dog boarding services has been on the rise within the target market. Nearly all families in the targeted market own a dog. Therefore, the demand is available for dog boarding services.

Likelihood of success

The mixture of quality services and affordability will create a favorite brand and increase customer loyalty to the business. Since the business is strategically located, the chance of survival and profitability within the first year of operation is more than 90%. The business targets to offer dog boarding services to 1,000 dogs within six months.

Since service charge per dog will be $50, the business targets to collect revenue of $50,000 within the six months of operation. From the below calculations, the business is expected to break even within six months. This shorter period it will take to breakeven increases its chance of survival.

Month 1-2 Month 3-4 Month 5-6
Revenue from service charges 10,000 42,000 50,000
Less Variable Costs:
Dog boarding manuals 400 2,000 2,500
Dog handler fees 500
Administration & logistics 2,000 3,000 4,000
Total Variable Costs 2,900 5,000 6,500
Less Fixed Costs:
Salaries 12,000 14,000 18,000
Store equipment 3,000 1,000
Insurance 500 500 500
Rents & Leases 1,500 1,500 1,500
Total Fixed Costs 17,500 18,100 21,300
Total Costs 20,400 23,100 27,800
Profit -10,400 18,900 22,200

Alignment with organizational goal

The main service idea that the business will utilize is to make sure that it attributes the dog boarding services to convenience and affordability as part of the short and long-term pillars of the business vision.


Since business will operate in a very sensitive environment controlled by the perception of the customers on quality, a bad report or unfortunate incident may seriously affect the sustainability of the business in the long run. Besides, there is a possibility of service rejection from the targeted market (SBA par. 6).

Works Cited

Cantello, Diane. Commentary: How parents can encourage the next generation of entrepreneurs. 2014.

Clayton, Sue. 7 Steps to a Winning Business Proposal. 2006.

Harvard Business School. Business Plan. 2013.

Klein, Karen. How to Sell Experiences. 2014.

Kotler, Philip, and Kevin Keller. Marketing management. 14th ed. 2012. New Jersey, NJ: Pearson Prentice Hall. Print.

SBA. Running a business. 2013.

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