2 Introduction Petyzo is an Australian startup that deals with delivery of dog food while emphasizing on a unique service that deals with customized services on a particular dog. In many Australian households, pets are an integral part of the family unit. The pet industry is a multi- billion industry especially with the advent of technology and changes that come with innovation. The booming of the pet industry shows a need for development of the pet delivery industry. Due to technology, Petyzo has introduced a service based on inputting the weight of the dog and the activity level of the dog and after the input, the start-up will have a specific plan for each dog. The plan to expand out of Melbourne is the reason the company is focusing on its target market(Castaño, 2020). The company provides products that are sustainable to the needs of the dog such as raw meat wrapping with biodegradable paper and serving the dog 100% natural food. The foods are subscription based which adds to the convenience of the consumers. The challenge that is most prevalent for Petyzo is distinguishing between their unique products in a market that is oversaturated. Consumer insight The pet industry is growing rapidly in Australia. The main tasks of the regional regulation of the consumer market in the pet industry is to: - ensuring the filling of the market with goods and meeting the demand of the population for goods and services; - ensuring fair competition, preventing monopolization of the market; - consumer target Protection.
3 The solution to these problems is possible through the use of administrative, legal and economic measures of regulatory impact on market entities. Since the consumer market is currently almost entirely in the hands of the private sector, the state government cannot establish either the volumes of supplies, nor the binding of consumers to suppliers, nor the prices of essential food and non-food products. But Petyz can use the forms and methods of indirect financial and economic regulation, as well as measures of administrative influence on the basis of municipal regulations (Cross, Belich, and Rudelius, 2015).In addition, state governments can influence private and joint-stock enterprises by providing them with information, analytical and marketing data on the development of the consumer market, developing recommendations, development forecasts and market balances. An important and effective lever of influence on the consumer market is the mechanisms of privatization and regulation of processes associated with the change of ownership.For socially significant enterprises that provide solutions to regional issues, it is possible to abandon privatization and keep non-residential premises used by them in municipal ownership. Such a measure is one of the main levers of municipal regulation of the consumer market. Business case for Petyz Below is the busness case for Petyz startup. The figures shows the approximate cost of ideal bulk purchasing and distributionacross the entire business case. Purchasing these components will significantly lower the costs across the entire business case. Fixed costs ComponentsItemUnits requiredApproximateTotal
4 costscosts ManufacturingEquipmentMonthly renting fee $ 12,000$ 12,000 WarehouseMonthly renting fee $ 18,000$ 20,000 Component total sum $32,000 GeneratorSolar power convertor 1$ 120$ 120 Generator1$ 280$280 Component total sum $ 400 Solar panelSolar cells50$ 100$ 5000 Variable costs ComponentItemHourly costApproximate hours Total cost ManufacturingLabour20 full time employees $170,000$170,000 UtilitiesQuarterly payment $8,000$ 8,000 MarketingBillboards3 weeks-- Sponsored social media 12 months in 12 locations 120,000120, 000 Logistics and distribution Pick up and delivery Time spent in delivery $2,000$2,000
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5 Billing and collection Invoice12,00012,000 Terminal handling Invoice$ 5,000$ 5,000 Total cost$ 317,000 A certain part of the enterprises of the consumer market are organizations with municipal participation. The main task of regulating their activities is the most profitable use of units and shares belonging to the region. An important role in the control of the consumer market should be played by associations of citizens - unions of consumers, producers and entrepreneurs, and consumer protection societies. Regional governments should establish cooperation with these associations, provide assistance in their work, and use forms of public control over the consumer market(Hines, 2016). Market potential estimation Market estimation of potential is the estimated total market volume given and attainable in set condition. Out market will be focused on dog owners in Melbourne, Victoria, Sydney and other regions. Item Dog population in Australia1, 350,000 Population in victoria300,000 Population in Sydney450,665
6 Simulated test marketing( STM) - upon identification of a consumer’s complaint of goods (services) of inadequate quality, as well as hazardous to life, health, property of consumers and the environment, immediately inform the federal executive bodies that monitor the quality and safety of goods (services). Thus, relying on public support, receive certain levers of influence on the consumer market and should actively use them in the interests of the population. In addition, municipal enterprises and institutions purchase (including at the expense of budgetary funds) in the consumer market food products for dogs and pets care facilities, Cost reduction To reduce costs for these purposes, the company create special structures that study the consumer market and conclude contracts for the commodity supply of food and other products for regional needs. An effective price regulator in the consumer market is tax incentives. With their help, you can attract reputable sellers from other regions and neighboring states to the city markets or, conversely, restrain the import of certain goods (Loveland, 2016).. Among other economic price regulators, rental rates for retail and warehouse premises should be noted. ATAR Model AwarenessExtensive advertising by Petyz through billborads and social media has created awareness where 34% of the market is due to advertsing TrialA 30 day trial period is set to new users of the dog product. Availability25% Potential consumers to our product will do research before buying. However, there is available details of all the composition of the
7 dog food which brings clarity. RepeatWe believe that afeter the users try the products, they will refere the product to other people and will be repeat users of the product. Time market estimation This target market is is new to the product but their dogs are consumers of different types of dog foods. Pricing strategy The strategy used by the company is the premium pricing strategy. It is based on a percentage of markup for profit maximization. Regional authority also affects the consumer market through administrative and control mechanisms. These may include: the establishment of trade rules on the territory of a municipality, the licensing of trade in certain types of products provided for by law and interaction with state bodies The territorial organization of the service market is influenced by many factors: population of dogs , geographical location, provision with infrastructure (transport, communications, etc.), urban development features (business center, residential areas, industrial zone)(Paul, Rahman, and Verma, 2019). At the same time, the diversity and targeting of the services provided should be taken into account. So, they distinguish between everyday demand services, to which the majority of the population living in this territory constantly addresses. Conclusion The relevance of the study of consumer behavior in the pet industry due to the transformation processes taking place in modern Australian pet industry. On the one hand, the main development trends are associated with the establishment of market relations, the expansion of consumer opportunities, and changes in objective conditions of consumption.
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8 On the other hand, the direction of consumer activity reflects the place of the consumer in the social space, the system of social relations and interactions that he has formed, his life goals and how to achieve them. The welfare economy focuses on the conformity of consumption expenditures to available incomes: the proportion spent on food and non-food products, services, leisure, etc. is estimated(Von Zedtwitz, et al, 2015. An important aspect of the welfare economy is the study of economic behavior, including in the dog food market. At the same time, economic behavior is considered solely from the point of view of its rationality, and the size of the income available to the individual is put forward as a determining factor. References
9 Castaño, R., 2020. Consumer Relationships With Brands. InGlobal Branding: Breakthroughs in Research and Practice(pp. 199-211). IGI Global. Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: An exploratory study. InProceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference(pp. 531-536). Springer, Cham. Hines, J., 2016.How to Market Things That Are Harmful: An Exploration of Destructive Consumption and Consumer Behavior(Doctoral dissertation). Loveland, K., 2016. 370-01 Consumer Behavior. Paul, S., Rahman, S.Y. and Verma, A., 2019. Influence of branded entertainment in media and the shaping of consumer preference-A qualitative analysis.ZENITH International Journal of Multidisciplinary Research,9(4), pp.8-19. Von Zedtwitz, M., Corsi, S., Søberg, P.V. and Frega, R., 2015. A typology of reverse innovation.Journal of Product Innovation Management,32(1), pp.12-28.