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How to Help a Company to Become a Market Leader in the Pet Care Industry

client
industry
services
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PowerBI

SimilarWeb

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client
industry
services
tools

PowerBI

SimilarWeb

Google Analytics

Google Planner

content

Client

MasterZoo is an omnichannel retailer with an Internet site and a network of pet stores (more than 130 stores in the home country), which has been operating on the  market for more than 15 years. The company offers a wide range of pet products for animals, grooming services, and consultations of experienced specialists.

Challenge 

  • Get quality data for the development of a commercial and marketing strategy for 2023.
  • Analyze the market of pet products and the brand's competitors.
  • Research consumer demand and assortment.

Initial Data

For 2023, the brand had ambitious plans for business growth, which were risky to implement without a marketing strategy.

Together with the client, we identified the main directions of development, the further study of which formed the basis of the strategy.

Solution

In order to answer the question of what exactly can contribute to business growth, we analyzed the pet products market in several areas at once.

Scoring model is an evaluation system based on the client's business indicators, data on consumer demand, and the presence of brands in various categories among the top market players.

In the project, we outlined five areas of research that helped us find the necessary data and answer all the client's questions.

In this case study, we demonstrate all analysis components and conclusions made based on the data obtained.

Analysis of the Online Market and Competitors

To analyze the online niche of the pet products and services market, we collected traffic data from 50 sites of major players. Further, we analyzed the obtained data not only in terms of the distribution of competitors' shares and their strategies for attracting traffic but also how the competitive environment has changed in comparison with the situation of the pre-war period.

We discovered…

  • Pet products are one of the few categories of Ukrainian eCommerce that quickly recovered after the start of a full-scale military invasion. This niche even received an increase in the number of site visits due to the flow of the audience from offline to online.
  • From February 2022, a new audience entered the category, in particular from offline.

Comparison of the average monthly amount of online traffic in the pet stores category in the pre-war months from June-August 2022. Source: SimilarWeb

  • Not all market players managed to cope with the current realities: some almost left the market.
  • In the category, traffic from mobile devices is growing, so it is important to prioritize the optimization of the mobile version of the site and application to strengthen the brand's position.
  • Strong market players have high audience loyalty: a significant percentage of the audience chooses the market leaders when searching for products.
  • Loyalty programs and discounts play a remarkable role in the service: this can become a key factor in making a purchase, even though the product assortment of brands is similar.

The results of the study helped to identify the client's strengths in service and traffic attraction, as well as to highlight channels and areas that require attention and development in 2023.

Analysis of the Client's Business and Comparison with Market Data

From our experience, business analysis allows you to get the most honest and accurate conclusions about the position of the brand in the market and to identify areas that need more attention.

We compared the basic indicators of the client's business with the average indicators of the market. This analysis was based on analytical data and a quantitative survey of consumers.

The results of the research highlighted areas that the client can improve in the marketing strategy in the future.

Analysis of Consumer Demand and its Satisfaction by Competitors

The analysis of the demand and assortment of pet products became one of the most meaningful stages of our research.

Such detailed analysis reflects a complete and real picture of what consumers are looking for for their pets and in what volume.

We were able to rank and calculate the shares of different categories and brands in requests. In such a way, we identified the categories with the highest demand among the Ukrainian audience.

It was important for us to understand how the consumer searches for and chooses pet products in each category. It was also critical to determine the demand for which brands and products the competitors meet better.

The results of the analysis demonstrated to the client the growth opportunities through the increase of the assortment: now there is an understanding which products are currently in the greatest demand and can provide a high level of income.

Finding Growth Opportunities through Trends and Technology Products 

Businesses can grow only not due to satisfying existing demand or working with competitors' audiences. You may also study the trends in categories that already exist in the markets of developed countries and innovator countries, where technologies are gaining popularity (automatic dishes, electronic collars, trackers, etc.).

An example of a technological product:Xiaomi Furrytail Tail Life Cat's Moving Castle Cat Bag

The obtained data can contribute to the development of business due to the attraction of new trending technological goods.

Trends that define the lifestyle of the most advanced part of the target audience are a look into the future for any brand in any category in a certain way. They help predict what consumers will value and buy in the future.

That is why we paid attention to technological innovations, trends in services, and additional features of the category of pet products.

The results of the research enabled:

  • determining promising niches in the market of pet products;
  • forecasting demand for new products;
  • highlighting the vectors in which it is worth investing.

SWOT Analysis and Scoring Model

In each analysis, it is important to take into account not only the received data but also their aggregate presentation, conclusions, and recommendations: what in the project has the greatest practical value for the client.

In order to highlight the strengths and weaknesses of the brand, to show additional opportunities and risks of the market and competitive environment, we used the classic (but very revealing) method of SWOT analysis.

SWOT analysis is one of the methods of analyzing internal and external factors that affect the work and development of the company.

We have built several models characterizing MasterZoo's position in the following areas:

  • online traffic and competitive environment;
  • service for the consumer;
  • market trends;
  • business and eCommerce metrics.

To evaluate online competitors and prepare reasoned conclusions regarding the formation of an assortment line, we have developed scoring evaluation models.

Scoring by Competitors

We evaluated competitors according to four indicators:

  • traffic;
  • the number of SKUs in stock by the top 30 categories;
  • the number of represented brands in the top 30 categories;
  • service evaluation.

We awarded each of the competitors in the comparison from 1 to 5 points for each of the indicators. The maximum was the value of the competitor who had the best grades for a specific indicator.

We identified two important areas of competition in the category:

Due to obtained data, we were able to explain with whom and in what ways the brand competes on the market.

Scoring by Categories and Brands in the Assortment

In order to prioritize categories and brands that can become points of business growth, we evaluated and prioritized 30 subcategories based on the following criteria:

  • market share;
  • the dynamics of the requests number increase;
  • availability of products and brands in the assortment (expand the assortment and add more items by brand, or add to the assortment goods of a brand that is not represented in the sales portfolio at all);
  • how many SKUs for a specific brand are represented by competitors;
  • sales level.

In such a way, we managed to outline a strategy for adding new products and brands in focus categories to the assortment, showing also the priority of developing each of them.

Results

Our three-month research resulted in two interim reports and a 10-hour strategy session with MasterZoo, where the client received answers to the following questions:

  1. Which subcategories and brands of pet products have more traffic, and therefore, how to form the assortment?
  2. What products should the customer add to the site to sell more?
  3. On which product categories should the client spend a larger budget for promotion?
  4. How has the market changed? What will be the competitors of MasterZoo in 2023? What development strategies did the competitors use?
  5. What is the MasterZoo brand already good at, and what are the additional growth points both online and offline?
Based on the results of the research, we created recommendations that formed the basis of MasterZoo's commercial and marketing strategies for 2023.

«We had a complete understanding between the teams. There was quality in task planning and execution. We got exactly the results we expected. The strategist team was very deeply involved. High-level work, well-visualized and structured presentation. Very cool reports for the board».– Denis Rohachev, e-Commerce Director of MasterZoo

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