Omega Paw Analysis

Omega Paw

Marketing Plan

January 29, 2017

Presented by:

Ishanna Savory

Muhammad Ansari

Michael Klauke

Bobbie O’Donnell

Brandy Straeter

Ken White

Executive Summary

Omega Paw made over $1 million in sales in its initial year of operations. The founder Mr. Ebert was pleased and aspired to increase sales in the preceding three years to $1.7 million, $3 million, and $5.7 million. At Omega’s disposal was a marketing budget of $100,000 and a manufacturing facility with the capacity to produce 3,500 units per week. Mr. Ebert has to decide what marketing strategy would best achieve his objectives.

The market size is approximately 84.2 million cats in North America. The market is estimated to grow 3.6% for the next few years. The different cat owner segments include the "New" cat owner at 5% of the market, the "Existing" cat owner at 80% and the "gray" market cat owner who participates in the cat's well being in a limited fashion not including litter. If Omega targets 1% of this market sales would be $13 million.

The company has thrived in light of the existing threats and seems positioned execute on a finely tuned marketing strategy. Omega Paw has simple product that is effective; currently high in sales due to low production cost and potential for high profit margins.  

There are 4 alternatives to increasing sales:

1. Increase distribution in pet stores
2. Revisit mail order distribution
3. Mass market distribution
4. Enter grocery stores

Alternatives 2 and 3 are recommended. Mass markets distribution will give Omega the opportunity to demonstrate a superior product, attain brand recognition, and meet sales objective with a competitively priced product. Omega Paw will be able to meet target sales for the 2012, 2013, and 2014 years. The current production facility will be able to keep up sales and allow time to expand facility or attain new facilities in future years. Increasing distribution in pet stores is very simplistic. Omega could reach more consumers by launching advertising campaigns, online, in magazines, flyers, offices, etc. They could further attract consumers by ideal product placement in stores.

Alternative 1 and 4 are not recommended. Mail order campaigns had issues in the past and trial runs would have to be completed. Omega needs a plan that will work immediately. They don’t have time to waste on trial runs just to figure out there are still clichés that need to be worked out. Time is money and this would not be a good use of resources. The alternative for grocery stores was not chosen, as the financial reward did not outweigh the financial risks. This alternative if not successful could cost Omega its entire business by bankrupting it or causing extensive damage to it reputation.