SnapPets Business Plan: Market and Financial Analysis

The SnapPets business plan outlines the company's strategy for providing pet-sitting services in the UK. The report begins with an executive summary and introduction, followed by a detailed description of the business idea, emphasizing the use of a smartphone application for pet monitoring. It includes a market analysis using Porter's Five Forces, market segmentation targeting specific demographics, and market research to understand customer needs. The marketing strategy focuses on an aggressive approach for market penetration, with a detailed marketing mix. The plan also covers unique selling propositions, branding, service development, operational plans, risk analysis, and financial projections. Recommendations and a conclusion are provided, along with references to support the analysis. The plan highlights the potential for growth in the pet-sitting market due to changing lifestyles and the increasing use of technology.

Business Plan

Executive Summary
This report is based on the business idea which SnapPets will use in order to achieve their
goals and objectives set by them. It will provide the complete business plan of the organization
in order to set a roadmap for the future. According to Statistia, 50% of the U.K. adults have a pet
and therefore the idea which the firm is bringing has a great scope in the market due to the busy
lifestyles nowadays due to work. Therefore, pet-sitting services are in a great demand in the
country. Also, the pet-sitting business is a thriving sector which can witness higher growth rates
in the future.

Contents
Executive Summary.....................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
MAIN BODY.................................................................................................................................................4
Business Idea Description........................................................................................................................4
Market analysis........................................................................................................................................4
Market segmentation..............................................................................................................................5
Market research......................................................................................................................................6
Marketing strategy..................................................................................................................................8
Marketing Mix.........................................................................................................................................8
Unique selling proposition.......................................................................................................................9
Branding..................................................................................................................................................9
Service development.............................................................................................................................10
Operational plan....................................................................................................................................11
Risk analysis...........................................................................................................................................11
Financial projections..............................................................................................................................11
Recommendations.....................................................................................................................................13
CONCLUSION.............................................................................................................................................13
REFERENCES..............................................................................................................................................14

INTRODUCTION
A business plan refers to a written document which is used in order to outline the
roadmap of a business in the future and provides details regarding it for taking decisions (Chang,
2016). For this report, SnapPets has been considered which is a business related with caretaking
of pets when the owners are not at home. The business idea is good enough to generate profits in
the future. In this report a detailed analysis will be made on various aspects related with this
business and a comprehensive review of the business will be provided as a part of this report.
MAIN BODY
Business Idea Description
The business idea of SnapPets is related with providing pet-sitting services to its various
clients (DeNoble and Zoller, 2017). This is especially good for those people who do not want
their furry friends to stay away from home when they are away. This is a good business idea with
a potential of earning good profits in the future. For this a smartphone application will be used
which will track the movement of the pet-sitter and allow the owner to monitor effectively using
GPS technology.
Since the use of smartphones in on a rise not just in U.K. but also worldwide therefore
development of an application is a great idea which can be followed. This is a good idea due to
the following reasons-
GPS location- Use of a smartphone app will help the pet-sitter to get the location of the
client easily and thus the app can be used to reach the location of the client.
Multiple features- The app will offer multiple features for the owners to decide on the
duration of the visit of the pet-sitter as well as the time of visit.
Monitoring- Monitoring can be effectively done using the pet-sitting service and thus it
helps a lot for the owners to find out the activities being performed by the pet-sitter.
This is an innovative idea which is extremely good enough because when people go away
from their homes for longer periods of time they especially have concerns for their pets as they
feel that they should not be left alone from home for a long period of time. Therefore, this idea
has huge potential to penetrate as well as stay in the market for a long time. If it is applied
properly then the business can easily earn higher profits in the future and can also hope to
maximize its profitability level. This business depends upon goodwill and on the basis of it and
positive reviews growth is possible.

Market analysis
For analyzing the market, Porter’s five forces are required to be applied. It is a tool in
management which is required to analyze the power of different forces operating within the
market (How to use Porter’s 5 Forces model, 2020). Its application in the context of SnapPets is
as follows-
Competitive rivalry- It refers to the level of competition present for the business. In the
context of SnapPets, there is less competition because the idea itself is new and there are very
few competitors around. Therefore, this force has a low power.
Substitute products- In the context of SnapPets, it is quite high because the client may
ask friends, neighbors etc. to look after the pets when away from home. Also animal kennels can
be used. Thus this force has a high power.
Bargaining power of buyers- It means the capcity of the customer to bargain around
with the price paid for products and services. Since SnapPets is a new company, this force has a
high power for it as it may reduce the prices of services so that it can get more clients.
Threat of new entrants- The threat of new entrants is present as the idea can be used by
others and they can enter the business of SnapPets. Thus this force has a high power.
Bargaining power of suppliers- Suppliers do not hold much weightage in this business.
Thus this force has a low power.
Market segmentation
Market segmentation refers to segmenting the market in different forms for better
targeting of the various customers (Ferrari, Morone and Tartiu, 2016). SnapPets is primarily
going to use demographic segmentation to target its customers. It will use in the following
manner-
Age- The primary target customers for SnapPets here would be the younger customers.
The customers between the age group of 18-35 would be targeted. This is so because according
to the statistics this age group comprises young people who like to go on a holiday quite often
and thus for them it becomes necessary to avail these services. Thus, on this basis the people in
this age group will be targeted by the company.
Income and occupation- People with middle and high income will be targeted (Hopp
and et.al., 2018). This is so because they are the ones who would be able to pay the charges for
pet-sitting. The charges of availing these services can be premium also thus only those clients
which hold the financial capacity will avail them and will pay the required charges.
Family structure- People with small families and those who live in nuclear families
instead of joint families will be targeted. This is so because they are the ones who are in the
requirement of such services because once they leave the house pets are quite lonely.

Thus on this basis market will be segmented and potential customers will be targeted by
SnapPets so that it can penetrate the market effectively.
Market research
Market research refers to understanding of reasons due to which the consumers will buy a
particular product or avail a service. It has to be conducted by the managers of SnapPets because
they are launching a new service of pet-sitting in the market of Peterborough. The elements of
this research should include the following-
Target customers- The target customers will be the ones who go to office daily for their
work and leave their pets behind alone. Thus SnapPets will target them so that they can be
converted into potential leads and then will provide good services to them which will make them
long-term clients. This will be very beneficial for a new firm coming up with an innovative idea.
In comparison with the rest of market very few firms are providing this service which makes
SnapPets an attractive option for many people who are busy and cannot devote whole day for
care of their pets.
Needs for availing this service- The reasons why a customer should buy a product or
avail a service should be identified in the research. SnapPets needs to identify these reasons
which can include care for pets when the owners are outside home for work or due to some other
reason. This is the main reason for which the clients are going to avail this service. Thus for the
firm which is coming up with an innovative idea this can be beneficial. The clients should avail
this service because in a busy schedule not much time can be devoted for the pets for the
required care. In the market very few companies offer these services.
Reasons for availing service from firm- The reasons need to be mentioned so that the
customers avail this service from the firm. SnapPets is a new company and is providing services
for all pets and not just dogs and therefore it can attract the attention of clients as no other firm
provides wide variety of services at a reasonable price. In comparison with the market SnapPets
is a firm which will provide efficient services and thus this is the reason that the clients can trust
it for their pets.
Competitor analysis
The competitor analysis is very important because by using it, firms can easily get to
know more about their potential competitors in the market. Once they get to know more about
their competitors, effective strategies can be framed in order to get ahead of them in the future.
This makes it extremely necessary especially for the new companies.
Competitor analysis
Basis SnapPets Feather Fur & Fin

Services provided Pet sitting and look after
services are provided by the
company for its clients when
they are away from home for
different purposes.
Pet sitting and food services
are provided for the pets of the
clients by this business.
Pricing It has a flexible pricing system
and charges owners for
services provided at hourly
basis.
It has a fixed pricing system
for owners and the charges
have to be paid for a full day.
Reviews The reviews and feedback
provided by the clients are
taken quite seriously so that
improvement can be brought
in the service.
It has positive reviews
received from its clients for its
services. It has efficiency and
effectiveness in its services
which has gained the trust of
the customers and clients
which it is currently serving.
SWOT analysis
Strengths Weaknesses
 SnapPets offers a unique as well as
innovative idea which is a strength
which can be used for getting a massive
customer base.
 SnapPets offers its clients the flexibility
of modifying its services as desired by
them.
 SnapPets is a new firm and thus has not
developed a reliable client base.
 SnapPets will need to invest more in its
marketing and publicity to take on its
varied competitors.
Opportunities Threats
 SnapPets has an opportunity of taking
advantage of a market which has been
explored only by a few competitors.
 SnapPets has an opportunity to earn
higher level of profits in the future time
period if it targets the customers
effectively using the right strategies.
 SnapPets faces threat from the existing
competition level as well as the new
competitors which may enter this
market.
 SnapPets faces a threat from the
substitutes which the clients can use
instead of availing these services and
therefore which will affect its business.

Marketing strategy
Marketing strategy refers to the planning made by businesses to reach out to their
potential customers and turning them into permanent customers by impressing them with their
products and services (Hopp and Greene, 2018).
As the idea of SnapPets is quite new and innovative in nature it has to carefully devise an
effective marketing strategy which will help it in the future. It needs to use an aggressive
marketing strategy as it needs to penetrate the market quickly so as to create its own presence
within the market. Using this strategy, it can enter into the market with lower prices and can
target different customers on the basis of their needs and requirements for their services. Once it
sets its foothold in the market, the company can adopt a different marketing strategy and can
even consider increasing its prices by a steady margin so as to maximize its level of profits. This
will help it in attaining a strategic edge over its competitors in the future and it will acquire a
larger market share then them.
Marketing Mix
The marketing mix which will be used by SnapPets for their business idea is as follows-
Product- The service which is being provided by SnapPets is pet-sitting services which
include taking care of pets of owners.
Price- The pricing strategy which will be used by SnapPets will be an aggressive one in
which it will target the different types of potential customers.
Place- The location of business would be Peterborough, United Kingdom which offers a
good scope for expansion of business.
Promotion- The promotion of business would be done by using promotional strategies
like advertisements, social media marketing etc.
Packaging- The limited products which will be offered by SnapPets will be packaged in
an efficient manner meeting to the expectations of the client.
Positioning- The company plans to gradually improve its positioning in the market by
using different strategies. It will start with low prices and will gradually increase the prices for its

SnapCats
services. Using these tactics, it will build a strong client base which can avail its services. This
will help it in improvising its position in the market.
People- This is the most important element. SnapPets needs to analyze how it will fulfill
the different expectations of its clients in the future. They will send photos of the pet-sitter taking
the best care of pets of people so as to ensure their satisfaction.
Unique selling proposition
Unique selling proposition refers to the strength of business which makes it to stand out
in front of its various competitors (Piovesan, Schmitz and Hersch, 2016). The USP of SnapPets
lies in the varied pet-sitting services which they provide.
They provide pet-sitting services for dogs, cats, rabbits etc. Thus the clients having
different pets have choice in front of them and they can avail this facility easily which is not
being provided by the other competitors as most of them focus on providing pet-sitting services
for dogs only. This is the company’s strength in the market which will allow it to gain a foothold
in the market and thus get a strategic advantage over the competitors ensuring long-term
sustainable growth.
Branding
Branding refers to giving a particular name or a design to the business so that it can be
distinguished from the other sellers quite easily (Subić, 2017). The aspects of branding which
SnapPets will focus on includes-
Logo-

Brand values-
 To provide services as desired by the clients at a fair and reasonable price.
 To be ethical and committed towards achievement of our business goals while also
fulfilling the expectations of the clients.
 To make a strong brand name capturing people’s imagination providing them a reliable
name to trust upon at the time of their need.
Mission statement-
To make a strong brand which is committed towards achieving its business objectives
and goals with the support of a committed and dedicated workforce always striving to
work hard and willing to accept new challenges. The company wishes to provide services
to meet the expectations of its clients and win over them by increasing their satisfaction
level for the money paid by them to avail these services. The workforce has a strong
passion for taking the care of animals while the owners are away and the startup aims to
satisfy its client base by providing them the best services at reasonable rates.
Service development
For service development, the firm will make use of Ansoff Matrix (Tanev, Rasmussen
and Hansen, 2016). It is a strategic planning tool which is used for planning of growth strategies.
Its application in the context of SnapPets is as follows-
Market penetration- It refers to a strategy in which a firm can penetrate the market with
the use of its existing products. In it prices are reduced, promotion efforts are increased in order
to attract the customers.
Product development- In it, a new product or a service is developed to cater in an
existing market (Watson and McGowan, 2019). In it, R&D efforts are increased and innovation
is done in order to enter in a market.
Market development- In it, a firm enters into a new market with its existing products.
For using this strategy, firm has to choose a different market to enter apart from its existing one.
Diversification- In it, a firm enters into a new market with a new product. It can be done
in two ways- related and unrelated.
SnapPets must make use of product development strategy as the idea which it has it still
very new in the market with few competitors.

Operational plan
An operational plan is a detailed plan which outlines how the goals and objectives can be
effectively achieved as a team. The operational plan of SnapPets is as follows-
Strategy- The business will use aggressive strategies to quickly capture market share in
order to become the market leader. The use of strategies will enable it to get ahead of the
competitors in order to facilitate strategic advantage helping it in increasing and maximizing its
level of profits quite easily.
KPIs- KPIs like financial and non-financial KPIs will be used by the company in order to
measure the overall performance of the company. If there are deficiencies and variances in KPIs
then they can be removed in order to optimize the overall performance of the business
Team goals- Working as a team to serve the clients in a better way in order to meet their
expectations. Working in a team helps in the attainment of the required objectives quite easily.
Also it helps in developing cooperation and coordination.
Risk analysis
Risk analysis is a process which can be used in order to identify and analyze the potential
issues which can impact the operations of a business. As a firm, SnapPets faces the following
types of risks-
 Strategic risk- This risk relates with copying of strategy by other competitors (Watson,
McGowan and Cooper, 2016). This risk is quite high for SnapPets as it can potentially
affect its level of profits.
 Compliance risk- This risk relates with compliance of laws of authorities. This risk is
low for SnapPets as its business is completely legal.
 Operational risk- This risk relates with operational failures of a business. This risk is
high for SnapPets as its business can collapse due to operational reasons.
 Financial risk- This risk can be associated with the problem of lack of finances. This risk
is high for SnapPets as it can face financial problems in the business.
 Reputational risk- This risk is associated with the goodwill of the business. This risk is
high for SnapPets as its goodwill can be damaged if the clients give a negative review
about the business which can lead to decrease in its reputation.
Plan B- This plan will be used if Plan A fails. The Plan A plans to use mobile app for
subscriptions. The Plan B will include taking the orders on call and providing the
required services to the clients as per their needs and requirements.
Financial projections
Sales forecast
2020 2021 2022
9000 11000 15000

Cash flow analysis
Particulars Amount
Inflows:
Revenues 9000
Other inflows 6000
Total 15000
Outflows:
Expenses 8000
Other outflows 2000
Total 10000
Surplus 5000
Income Statement
Particulars
Amoun
t
Incomes-
Revenues 9000
Other
Incomes 8000
Total
Revnues 17000
Expenses-
Expenses 8000
Other
Expenses 6000
Total
expenses 14000
Profit/Loss 3000
Calculation of BEP
Particulars Amount
Sales 9000
Less:
Variable Cost 4000
Contribution 5000
P/V Ratio 55.55
Fixed Costs 4000
BEP 7272