Market Research Report for SNOGGO 「XX DOG BAKERY P epared for Dr an Prepared by May9,1997
V.V.& L.s. esearch inc 1705 Espina Las Cruces, New mexico 8800 05)521-3289 May 9, 1997 Mr. Beau Gilbert. President Snoggles Dog Bakery 6111 Los hermanos ne Albuquerque, NM87111 Subject: Market Research Report for Snoggles Dog Bakery Dear Mr Gilbert: Enclosed is the market research report for Snoggles Dog Bakery that you requested. This report study was approved on February 17, 1997, and is now completed The results from the survey data collected was inconclusive. We recommend that another primary study will need to be conducted to make any major decisions concerning the objectives. We suggest that a random sampling method be used in the future for data collection due to the fact that using a convenience sample produced skewed results. Projects results are extremely informative and should be considered when structuring future studies. It will give you a general idea of what to expect. We also recommend that sccondary data be used. It may provide helpful information about the dog biscuit market at a lower cost. We are grateful to Snoggles Dog Bakery for giving us an opportunity for conducting a primary research study on all natural dog biscuits. Feel free to port,or if any questions arise. Please keer us up to date with your decisions after reviewing this report
Table of contents Snoggles Dog Biscuits Albuquerque Area Survey Results Letter of transmittal Executive Summary Research Introduction Results 5-12 Consumer Behavio Demographics Limitata Conclusions 13 Recommendations 14 Research Prop Survey Design Frequency tables Cross Tab Tables
EXECUTTVE SUMMARY Background Pets are ranked as the third largest animal industry in the United States. annually the dog and cat food industry gross sales of nearly $9 billion, which consists of canned dried, and semi-moist products, along with snacks and treats. Because two-thirds of ll adult dogs are overweight, there is a need for low-calorie, lo-fat, and lite products The pet industry has the potential to become very profitable if they can target the right market. Snoggles Dog Bakery is a company that will be niche marketing all natural dog baked biscuits in the Albuquerque area. Snoggles Dog Bakery' s mission is to bake and distribute fresh healthy dog biscuits by utilizing natural ingredients Snoggles plans to open a dog bakery in Albuquerque within the next two years. The purpose of this study is to learn more about the dog food industry in the Albuquerque area. This information will be used by Snoggles Dog Bakery to get an idea of what its target market is and to make decisions regarding how they want to focus future search projects Several key areas were identified when determining the boundaries of this study.The following were the specific research objectives: identifying the target market and characteristics that exist in the dog biscuit market, determining if the product has potential, discovering how much the consumer is willing to invest in their pet, and identifying methods of reward that consumers display to their pets An exploratory resecrch study was conducted in the Albuquerque area for Snoggles Dog Bakery which consisted of primary data gathering. Snoggles needed an inexpensive, convoniont, and officient way of collecting data about dog owners behaviors, interests, and preferences in Albuquerque. People who are pet owners purchase dog biscuits for other peoples pets in the Albuquerque area were eligible for participating in the research study. Respondents were selected by convenience sampling. Out of 200 surveys, only 141 were answered and collected for a% response rate. The surveys successfully answered used a statistical method for analyzing the results, which was obtained through the use of SPSS Statistical Analysis Computer Program. Throughout the use of this program mean, frequency and cross tabulation data was generated which reflects the results of the report Results Consumer Behavior The majority (68%)of the respondents give dog biscuits to"reward good behavior and 43% ranked"pampering"as the second most popular reason to give do biscuits. Fifty-four percent of the respondents between the ages of 19-29 garve biscuits to their dogs to pamper them. Income has no impact on the reasons respondents give biscuits"to their dog The majority (74%)of the respondents viewed"doy biscuits"us the number one treat The second most popular treat was" affection "with 60% followed by"dog toys, "(43%)
"people food, (41%): walk,"(26%); " give nothing. "(7%)and"other,"(6%). Sixty-one percent of the respondents between the ages of 19-39 gave"affection as a treat There is a relationship between giving"affection as a treat household income When the respondents income bracket increases the percentage of respondents answering yes they gave"affection as a treat"decreases Thirty percent of the respondents replied that they purchase dog biscuits"1-2 weeks ago"followed by 27% who purchased dog biscuits"3-4 weeks ago. " Fifty-seven percent of the respondents purchase dog biscuits in a 1-4 week time period The majority(45%)of the respondents purchased their dog biscuits at grocery stores followed by 31% who purchased at Petsmart Product Attributes The majority(64%)of respondents preferred"traditional beef flavor. The next most popular flavor was"veggie"with 44%, followed by"oatmeal raisin"and"peanut butter"with 41% each. Thirty-eight percent of the respondents preferred " granola followed by"carob"with 43%, " cheese"with 34% and"mint"with 31%. These resull indicate that all the flavors show a significant amount of respondent interest Forty-three percent of the respondents preferred small dog biscuits and 36% preferred medium. Two dollars and twenty-five cents is the average price respondents are willing to spend on a box of fifteen medium dog biscuits Price"was ranked as the most important feature by 31.6% of the respondents, followed by"quality"with 24.7% and "nutritional value"with 20.8% Demographics Eighty-one percent of the respondents owned a dog. The typical number of dogs per household is 1. 5 with an average age of 5.4 years Forty-two percent of the respondents are between the ages 19-29. Thirty-three percent had completed"some college" while 30% are"college graduate's "Twenty-seven percent of the respondents are "students. The majority(28%)of the respondents had a total income"<20,000-$24,999 Conclusions Income has no impact on whether or not respondents give their dogs biscuits. Dog biscuits are the number one treat given to dogs. Lower income respondents will purchase, less dog biscuits than higher income respondents. Respondents purchase dog biscuits in a 1-4 week time period. This purchase tends to occur more frequently at grocery stores and Petsmart. There was a significant amount of interest in the eight flavors of dog biscuits surveyed (traditional beef, veggie, oatmeal raisin, peanut butter, granola, carob, cheese, and mint). The majority of respondents preferred small dog biscuits and price was the most important feature considered when purchasing