Cavoodle Capers Pty Ltd

Introduction

Cavoodle Capers Pty Ltd is a small enterprise located on the outskirts of Sydney. It specializes in breeding and selling cavoodles, a small dog breeds popular among dog-loving Sydneysiders. The business succeeded from early 2020 until early 2022 but experienced a decline in demand in 2022 as the pandemic subsided and people turned their attention back to their everyday lives. Josie, the owner of Cavoodle Capers Pty Ltd, is concerned about the impact of macroeconomic conditions, such as rising mortgage interest rates, on her business. In order to turn around the flagging fortunes of Cavoodle Capers Pty Ltd, Josie seeks a strategy based on a thorough environmental scan/research.

Challenges

Josie, the owner of Cavoodle Capers Pty Ltd, faced several challenges in her company. There was a decline in the demand for cavoodles. Covoodles demand has decreased steadily since the end of 2022(Wilson et al.; 2021). The decline was possible because of the changing circumstance around the pandemic and rising mortgage interest rates. This affected families’ ability to afford pets.

Josie also faced a Lower average selling price. she had to sell some less popular black pups at a lower price of $1,500 each, compared to the average selling price of $3,500 for golden-brown pups (Roos, et al; 2018). This resulted in reduced revenue hence being a challenge to the company.

The unknown colour of the upcoming litter was another challenge to Josie. She had two upcoming litters with pups of unknown colour (Manakhov et al., 2021). She expects a fair percentage of them to be black, which may affect the average selling price and demand for those pups.

Key opportunities

Despite the challenges, Josie has opened key opportunities for her company. She has a good number of pups available from the upcoming litters. They can be an opportunity to boost sales and revenue. Josie also has a history of happy pet-loving clients recommending her business through word-of-mouth, which can be leveraged to generate repeat business and referrals. She also has been using Facebook for simple posts to promote her business, which can be further expanded to reach a wider audience and generate more sales.

Proposed Strategy for Turnaround

By implementing the following strategies, Josie can overcome the challenges faced by Cavoodle Capers Pty Ltd and work towards a turnaround in the business.

Josie can explore breeding and selling more diverse colours of cavoodles, including black pups, to cater to different customer preferences and increase demand. This can be achieved by selectively breeding her dogs to produce various colours in each litter.

She can also enhance her marketing and promotion efforts beyond Facebook by utilizing other social media platforms, creating a website, and implementing targeted online advertising campaigns. This can help reach a wider audience and generate more inquiries and sales.

Lastly, she can implement a customer retention and referral program to incentivize her existing happy clients to refer new customers to her business.

Environmental scan

To conduct an environmental scan for Cavoodle Capers Pty Ltd, the following methodology was employed:

Literature Review

A literature review was conducted on the pet industry, pet ownership trends, and macroeconomic factors affecting small businesses (Barnard, Arias & Thielemans, 2021). To gather information on the current state of the pet industry, consumer preferences, and economic trends, we used academic journals, industry reports, and reputable online sources for the review.

Industry Reports

Market research reports, and industry analyses from reputable sources such as IBISWorld, Statista, and American Pet Products Association (APPA) were reviewed to gather data and insights on the pet industry, including trends, growth rates, and challenges. As recorded by Applebaum, Peek, & Zsembik, B. A. (2020)

Government and Economic Data

The data used to determine macroeconomic indicators such as interest rates, consumer spending, and consumer sentiment was collected from Official government sources such as the Australian Bureau of Statistics and the Reserve Bank of Australia.

News and Media Sources

News articles, press releases, and industry news from reliable sources were reviewed to gather current information on the pet industry, consumer trends, and economic conditions.

Key findings

1. The decline in demand for cavoodles in 2022 was attributed to multiple factors. These factors include the subsiding of the pandemic, changing consumer preferences, and macroeconomic conditions.
2. Rising mortgage interest rates can affect the purchasing power of families, leading to decreased income for discretionary spending, including pet ownership. This could be a contributing factor to the declining demand for cavoodles.
3. Consumer preferences for pet breeds can change over time, influenced by factors such as fashion trends, lifestyle changes, and affordability. The popularity of certain dog breeds, including cavoodles, can fluctuate, which could impact demand.
4. The pet industry, including the market for cavoodles, could be reaching saturation, with an increasing number of breeders and sellers entering the market. This could increase competition and pricing pressures, affecting demand and profitability.
5. The demand for puppies, including cavoodles, could be influenced by seasonal factors, such as the timing of litters and the availability of puppies. Understanding and managing the timing of litter and sales could maximize demand and profitability.

Central aim

The central aim is to revive and sustain the success of Cavoodle Capers Pty Ltd by increasing sales and profitability despite changing market conditions.

Smart Objectives:

Increasing sales by 20% in the next 12 months is a specific objective, measurable, achievable, relevant, and time-bound (SMART). It focuses on increasing sales, the critical indicator of business success. The target of 20% is realistic and achievable within the timeframe of 12 months.

Diversify product offerings by introducing new colour variations. It is specific and relevant. It aims to address the issue of black cavoodle pups being undervalued by diversifying the product offerings with new colour variations. This will attract a broader customer base and increase sales.

Enhancing marketing and promotional efforts. It is specific, measurable, and time-bound. It aims to improve the marketing and promotional efforts of Cavoodle Capers Pty Ltd, considering that more than the previous reliance on Facebook posts and word-of-mouth recommendations may be required. Specific strategies such as social media advertising, website optimization, and targeted campaigns can be implemented.

Building customer’s customers is another specific, measurable, and relevant objective. It aims to focus on customer retention which is crucial in sustaining sales and profitability. To achieve this objective, strategies such as implementing a customer loyalty program, providing excellent customer service, and maintaining regular communication with existing customers.

Conceptual work frame

I propose a market diversification strategy and a customer-centric approach to turn around the fortunes of Cavoodle Capers Pty Ltd. This strategy will focus on several key concepts.

Market diversification

To mitigate the impact of changing market dynamics and declining demand for golden-brown cavoodle pups, Cavoodle Capers Pty Ltd needs to diversify its market. This can be achieved by targeting new customer segments and expanding geographically beyond Sydney (Kuzma & Sehnem, 2023). Josie can explore markets in other cities or regions where the demand for cavoodles may still be strong. This could involve tailoring marketing strategies and messaging to appeal to these different customer segments and offering specialized services or packages that cater to their specific needs and preferences. This can be supported by market research and analysis to identify potential markets with favourable demographics and socio-economic conditions for pet ownership.

Product Differentiation

Josie can focus on product differentiation to address the issue of black cavoodle pups being undervalued. She can promote the unique features and qualities of black cavoodles to create a niche market for them. This can be achieved through targeted marketing campaigns that highlight the distinctive traits of black cavoodles, such as their rarity, intelligence, and adaptability. Josie can also consider offering special promotions or discounts for black cavoodles to incentivize their purchase. (Hobbs, & Shanoyan, 2018). By offering unique and differentiated products or services, emphasizing value-added features or services, and showcasing social and environmental responsibility, the business can differentiate itself from competitors, attract customers, and gain a competitive advantage.

Customer Engagement and Retention

Josie needs to focus on customer engagement and retention to strengthen customer loyalty and attract new customers. She can invest in building a solid online presence through social media platforms, a dedicated website, and regular email newsletters to keep customers informed about new litter, promotions, and events. Josie can also establish a customer loyalty program that rewards repeat customers and encourages referrals. Providing excellent customer service, personalized experiences, and after-sales support can enhance customer satisfaction and retention.

Breeding Management

To optimize the breeding program and ensure a consistent supply of desirable cavoodle pups, Josie needs to manage her breeding operations carefully. This includes monitoring the pregnancy cycles of her bitches, planning the timing of litter to align with peak demand periods, and managing the colour variations in litters to meet customer preferences(Ertemel et al., 2021). Josie can also consider collaborating with veterinary experts or geneticists to selectively breed cavoodles with desired traits, including colour, size, and temperament, to cater to specific market segments.

Economic Analysis

As Josie suspects that macroeconomic conditions, such as rising mortgage interest rates, may be affecting demand for cavoodles, she needs to conduct a thorough economic analysis to understand the potential impact on her business. This may involve studying consumer spending patterns, disposable income trends, and overall economic indicators to identify any correlations or trends that may affect demand for cavoodles (Dessbesell, et al., 2019). Based on the findings, Josie can develop pricing strategies, payment plans, or financing options that align with her target customers’ economic conditions and affordability.

The conceptual drivers of this strategy are market diversification, product differentiation, customer engagement and retention, breeding management, and economic analysis. The concepts are interrelated and reinforce each other to create coherency. Customer engagement and retention are crucial for building customer loyalty and repeat business, which can be supported by effective breeding management to ensure a consistent supply of desirable cavoodle pups (Grajfoner, Ke, & Wong, 2021). The economic analysis is a foundation for understanding market conditions and making strategic decisions related to pricing, promotions, and financing options.

The proposed strategy of market diversification, product differentiation, customer engagement and retention, breeding management, and economic analysis aims to address the challenges faced by Cavoodle Capers Pty Ltd and turn around its fortunes. By implementing a customer-centric approach and leveraging critical concepts from the course and beyond, Cavoodle Capers Pty Ltd can adapt to changing market dynamics, enhance customer loyalty, and optimize its breeding operations to drive sustainable growth in the competitive market cavoodle breeding and sales.

Tactical outputs

Based on the given scenario, here are five tactics that Josie can consider to turn around the fortunes of Cavoodle Capers Pty Ltd:

Diversify the Product Offering

Josie can consider expanding her product offering beyond cavoodles of only golden-brown colour. By actively promoting and marketing the black cavoodles as unique and special, she can attract a different segment of customers who may prefer black. This can help increase sales and cater to broader customer preferences.

Strategic Advertising and Promotion

While Josie initially relied on simple Facebook posts, she can now adopt a more strategic approach to advertising and promotion. This can include targeted online advertising on social media platforms, creating engaging content such as videos and blogs, and collaborating with influencers in the pet niche to increase brand awareness and reach. Josie can also consider offering limited time promotions, discounts, or bundle deals to incentivize potential buyers and create a sense of urgency.

Improve Customer Experience

Providing an exceptional customer experience can lead to positive word-of-mouth recommendations. This can help boost sales. Josie can also focus on providing good customer service, instant responses to inquiries, and reasonable care for the puppies. She can also create a solid online presence by actively engaging with customers on social media, addressing their concerns, and sharing testimonials and success stories to build the trust of potential customers.

Build Relationships with Local Pet Communities

Josie can proactively engage with local pet communities, including pet stores, veterinarians, groomers, and dog parks, to build relationships and create partnerships. She can offer special discounts or referral programs to these partners, who can then recommend Cavoodle Capers Pty Ltd to their customers. Participating in local pet events or sponsoring pet-related activities can also increase brand visibility and reach in the community.

Provide Education and Information

Educating potential buyers about the benefits and responsibilities of owning a cavoodle can help build trust and establish Josie as an expert. She can create informative content on her website, blog, or social media platforms about topics such as cavoodle care, training, health, and nutrition. This can help potential buyers make informed decisions and create a connection with the brand, leading to increased sales and customer loyalty.

Overall, Josie should focus on diversifying her product offering, strategic advertising and promotion, improving customer experience, building relationships with local pet communities, and providing education and information to potential buyers. By implementing these tactics, Josie could turn around the declining fortunes of Cavoodle Capers Pty Ltd and boost sales in the face of changing market conditions.

References

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Ertemel, A. V., Civelek, M. E., Eroğlu Pektaş, G. Ö., & Çemberci, M. (2021). The role of customer experience in the effect of online flow state on customer loyalty. PloS one, 16(7), e0254685.

Grajfoner, D., Ke, G. N., & Wong, R. M. M. (2021). The effect of pets on human mental health and well-being during COVID-19 lockdown in Malaysia. Animals, 11(9), 2689.

Hobbs, L., & Shanoyan, A. (2018). Analysis of consumer perception of product attributes in pet food: Implications for marketing and brand strategy.

Kuzma, E., & Sehnem, S. (2023). The proposition of a structural model for business value creation based on circular business models, innovation, and resource recovery in the pet industry. Business Strategy and the Environment, 32(1), 516-537.

Manakhov, A. D., Mintseva, M. Y., Andreeva, T. V., Filimonov, P. A., Onokhov, A. A., Chernova, I. E., … & Rogaev, E. I. (2021). Genome analysis of dark fur colour links a lightened pigmentation phenotype to a frameshift variant in the tyrosinase-related protein 1 gene. Genes, 12(2), 157.

Roos, J., Maenhoudt, C., Zilberstein, L., Mir, F., Borges, P., Furthner, E., … & Fontbonne, A. (2018). Neonatal puppy survival after planned caesarean section in the bitch using aglepristone as a primer: A retrospective study on 74 cases. Reproduction in domestic animals, 53, 85-95.

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