Introduction
Pets.com has a number of strengths that would aid the business’ development. One of them is that the business was a pioneer in pet internet buying. When the company was started, there were no other pet businesses with a comparable operational structure (Merlo, 2009). Because of this, the business was able to establish itself as the leader in its field and win a large portion of the market before competitors did the same. The fact that Pets.com and Amazon.com formerly collaborated is another strength. The inclusion of Pets.com on Amazon’s website would considerably assist the retailer in redirecting traffic as it has begun to establish itself.
Weaknesses
The company’s marketing plan for Pets.com can be defined as a key weakness. The case study demonstrates that management is accustomed to making all necessary expenditures to maintain business growth (Merlo, 2009). To assist in achieving the desired market share, there was a propensity to spend millions on advertising and selling items at a loss. This was a dangerous decision since, assuming the firm had any financial reserves at all, it would not have been enough to help it weather the unexpected market shock.
Opportunities
Opportunities offered by Pets.com included the difficulty of attaining a larger market share. The fact that e-commerce was still in its infancy and had bright development potential created this opportunity (Merlo, 2009). More and more individuals are engaging in online activities, such as shopping, thanks to the ease of access to the Internet and other associated items. The firm would have the chance to draw in new Internet users if it positioned itself appropriately.
Threats
Competition can be defined as the biggest danger to the organization. Both physical pet stores and other online pet retailers have competed with Pets.com. As most items are near equivalents, it poses a severe danger if competitors provide their goods at a lower price. The threat of new competitors existed at the time since e-commerce was still in its infancy. This is because hazardous business decisions are more likely to hurt a company’s market share the more often they are made.
The SWOT analysis indicates that established pet owners, as well as inexperienced or new pet owners with access to the Internet, are the company’s target audiences. As the firm functions within the parameters of e-commerce, having a connection to the Internet is crucial.
Positioning Statement 1: Pets.com is a pioneer of online pet merchants that offers all the best pet goods at reduced prices to current pet owners with an Internet connection.
Positioning Statement 2: Because the firm has sufficient industry understanding, Pets.com is the innovator of online pet stores that offer all the information and product recommendations to inexperienced pet owners with internet access.
Since this demographic is already aware of the pet sector, it is appropriate to target current pet owners who utilize the Internet. This population already makes financial investments to keep their dogs in good health. This indicates that if the company’s products can suit their wants, it will not be difficult to persuade people to buy them. The purpose of the position statement was to demonstrate that this target market is already aware of what it wants.
There are some people who want to keep pets but are not quite ready to make the leap since they do not have some essential knowledge. They might decide by connecting with a business that can guide them and support them along the route. The positioning statement demonstrates the organization’s expertise in pet-related issues, which will increase the target audience’s confidence in the company.
Gaining more market share and raising brand recognition are two objectives of the new marketing mix strategy. The organization will be able to take place in the market thanks to brand recognition. This will significantly boost the number of loyal customers for Pets.com. Through continuous client behavior, the loyalty that comes with brand knowledge offers a certain amount of protection for the company. Gaining market share will aid the business in dominating the industry’s competitors. The company will be able to sell more goods in this market area as a consequence.
The organization should employ value-based pricing strategies in light of the aforementioned objectives. By switching to value-based pricing, the organization will stop basing its rates on rivals or predetermined price points. Advertising the business via numerous channels is the recommended advertising strategy. In order to reach as many individuals as possible, the firm can use a number of initiatives. This increases the likelihood of greater sales by boosting consumer awareness of the company’s offerings. Customer loyalty may be increased by establishing good public relations inside advertising brochures.
Conclusion
The website can be identified as the company’s point of sale. The company is designed to appeal to Internet users, and the advertising tactics will advance this goal. According to the case study, e-commerce is still developing, making it possible to capture a sizable portion of the industry. The strategy, in this case, would also include indulging in a range of products. The business may interview current pet owners to select the items to be sold. An organization will be able to reach its intended market share and, as a result, sizable profits if it is able to satisfy the wants of the majority, if not all, pet owners.
Reference
Merlo, O. (2009). Pets.com Inc.: Rise and decline of a pet supply retailer. Ivey Publishing