Omega Paw Inc. Case Study

Omega Paw Inc.

Executive Summary

Omega Paw Inc. president Michael Ebert has found success with his product the “Self-Cleaning Litter Box”, with $1million in sales in the past few months. Michael’s goal is to increase sales of his product by exploring other ways of distribution.

The alternatives included are doing mail order/TV campaigns, selling to mass distribution outlets such as Wal-Mart, and sticking with the current form of distribution.

It was recommended to try selling to mass distribution outlets. Stores such as Wal-Mart attract all three types of the pet owner consumer group, and the additional advertising and potential marked down prices would do a good job at attracting consumers.

Problem Statement

Michael Ebert, president of Omega Paw and  inventor of the “Self-Cleaning Litter Box”, has been in business for just over a year while pulling in some impressive sales numbers. Ebert’s goal is to increase sales of his product by using different creative marketing initiatives and by using other forms of distribution.

Issues

Ebert must think of creative marketing ideas and different forms of distribution in order to achieve the goal of increasing sales to $3 million by December 2013 and $5.7 million by December 2014. However, there are a number of issues Ebert must take into consideration while making his decision.

1. Competition: With 84.2 million cats in North America, the targeted consumer group is huge. A market that large is bound to bring in a lot of competition. Ebert must compete with different prices, the different quality, and different marketing strategies of other companies that offer similar products.
2. Target a Specific Consumer: Different consumers buy different products. When is comes to cat owners, 5 percent are “new pet owners”, 80 percent are “existing cat owners”, and 15 percent had different pets who free to roam outside. It’s important to pick a consumer and base the way you market and distribute your product for that specific consumer.
3. Figure out What Marketing/Distribution Changes to Make: After a successful period, it is important to make the right marketing and distribution changes in order to continue and build on that success.

Objectives

The objective for both Michael Ebert and the company is to increase sales to $3 million in 2013 and $5.7 million in 2014 and to compete with other big companies in the industry..

Consumer Analysis