BUS020N516A: Evaluating a Pet Grooming Business in London

This report assesses the market attractiveness of establishing a pet grooming salon in London, focusing on dogs and cats. It identifies a need for such services due to the increasing trend of pet pampering and a lack of readily available grooming amenities. The UK pet industry, particularly in London, boasts a substantial market size with significant annual spending on pets. The report anticipates continued market growth, driven by increasing pet ownership and a desire for luxurious pet care. A PESTLE analysis highlights political, economic, socio-cultural, technological, legal, and environmental factors influencing the business. The study concludes that despite potential regulatory challenges, the growing pet market presents a profitable opportunity, with a venture capital requirement of £100,000 for business operations. Desklib offers a platform for students to access this and other valuable study resources.

Running head: PET GROOMING
PET GROOMING
Name of the Student
Name of the University
Author Note

1PET GROOMING
The Macro Level-Market Attractiveness test
Type of Business which is sought
The business which the idea is based on can be stated to be the business related to the
Grooming Salon for the Pets of the citizens living in London. Keeping a pet can be considered to
be responsible task and requires care and patience. However, the trend of keeping the pets with
pamper and luxury has been increasing in the developed nations around the globe and especially
within the American society whereby there exists grooming salons and parlor’s for the pets like
Dogs and cats. Hence, following the particular trend, the business seeks to open a Grooming
salon for the popular pets like Dogs and Cats in order to ensure that even the pets in London can
lead a life of luxury, basic hygiene and receive adequate paper. The grooming salon would
provide an easy solution to the different pet owners who will be easily able to look out for the
pets and ensure that they are able to take care of them and provide them a luxurious lifestyle.
Need
The need for the business can be stated to be the lack of available amenities for the
popular pets like Dogs and Cats. Moreover, many pet owners also do not possess any idea about
the welfare of the pets and the manner in which they need to be groomed. Although the vets who
are the doctors, often assist the pet owners and help them in maintaining the basic hygiene,
however, these owners are not able to pamper their pets and provide them with some grooming
(Mullins 2018). Hence, the grooming salon will aim to fulfill this gap in the market and cater to
the needs of the higher incomed group people who can afford this luxury for the pets.
Additionally, there will also exist economically priced grooming sessions for these pets who will
be receiving a grooming session as well.

2PET GROOMING
Size of the Market
The market size of the Pet industry in the United Kingdom can be stated to be
considerably large in size. This can be contributed to the fact that the trend of adopting pets has
been growing considerably. There are approximately 8.5 million dogs in the United Kingdom
and around 7.5 million cats in the Kingdom (Pfma.org.uk 2018). There exists approximately
312000 houses in the city with dogs and around 340000 dogs in the city of London
(Groomarts.com 2019). On the other hand, as compared to this, the cat population in the United
Kingdom can also be understood to be considerably high with around 428000 cats in the
households around the city and 580000 cats in the region. Some of the facts of the pet market
can be stated to be as follows:
 Around 1/4th of the pet owners believe in pampering their pets (Pfma.org.uk 2018).
 Around 1/5th of the pet owners believe in splurging around £20 for their pet’s monthly
outfit. (Groomarts.com 2019).
 Additionally, the people in the United Kingdom spend over £10 billion in one year on
their dogs and 8 billion on the cats (Groomarts.com 2019).
 Moreover, approximately, 48% of the pet owners believe in treating their pet regularly
 According to a poll as per Groomarts.com (2019) around 27% of dog owners believe in
providing their pet with luxurious treatment and provide the pet with extravagant gifts.
Growth rate
The growth rate for the particular market can be stated to be quite high as the interest of
the different people in the pets has been increasing. The humans want to treat the pets as their
counterparts and their reliance on the companionship of the pets has been increasing to a great

3PET GROOMING
extent. They achieve a sense of fulfillment by being with the different pets has been improving.
Additionally, these individuals want to look after their pets, care for them and give them a
comfortable lifestyle (Noe et al. 2017). As a result the people are willing to pay a high amount
for the pets in order to provide them a luxurious life. Based on the data of the year 2017 and
2018, there has been an increase of 8% in the growth of the number of pets in the city of London.
Figure 1: The Pet Care market in UK
(Source: Statista.com 2019).
The given graph presents the retail value of the pet care products in the
United Kingdom from the year 2015 to the forecast in the year 2020. According
to Statista.com (2019), in the year 2018, the pet care and grooming market
reached to approximately 5.1 billion euros. London and other cities have the
largest pet market in the United Kingdom and also in Europe.

4PET GROOMING
Speed of growth in the coming years
There has been an increase of the number of pets being adopted or purchased by the
people in London and with this there has been an increase in the revenue of the pet related
business as well (Ansoff et al. 2019). It is expected that in the coming years the market is
expected to grow by 10% for three years and around 12% in the years following with an increase
in the trend of pet adoption, pet rescue and the pet purchase. Hence, as the different individuals
prefer purchasing a pet more than being related to a child, the industry has a bright future
(Wheelen et al. 2017).
PESTLE
The PESTLE Analysis serves as a useful external environmental analysis tool which can
be used to analyze the overall broad external market. The PESTLE analysis of London can be
stated to be as follows:
 Political: Due to the Brexit, the overall business scenario of the country has changed
considerably (Groomarts.com 2019). The chaos which has taken place in the country
cannot be measured currently and the overall business requirements of the country and
registration laws have also changed.
 Economical: With respect to the Pet grooming business, the number of pets in the
industry has increased considerably, and the GDP of the economy can also be stated to be
particularly high. Although the inflation rate of the country reached to a high of 3.1% in
the beginning of 2018 the spending’s have also increased accordingly (Groomarts.com
2019).

5PET GROOMING
 Socio-Cultural: The market of the United Kingdom can be understood to be a large
market and the interests regarding the pet industry has been increasing (Moutinho and
Vargas-Sanchez 2018). This means that, there has been a growing trend in the pet pamper
and purchase and for this reason it can be considered very important to tap this growing
trend.
 Technological: The London is the financial capital of the country and both a hub for
financial and technological transactions (Mullins 2018). Hence, with respect to this, it can
be largely understood that, this aspect can offer the entrepreneurs with a growing
opportunity to perform well (David and David 2016).
 Legal: Although the businesses relating to the Pet care are growing considerably, there
are various regulations and legal aspects which the new businesses have to take care of.
 Environmental: The environmental aspects relating to pet care deals with catering to the
different needs of the pets and engaging in activities which ensures that no harm is
caused to the animals (Teece et al. 1997).
Impact of PESTLE
Therefore, it can be largely understood that in order to engage in long term overall
welfare of the business, the PESTLE analysis was undertaken and from the overall analysis it can
be understood that although the new business may face certain regulation limitations and related
issues, the market for the pets has been growing considerably, and hence, the opportunity will be
a profitable one.
Venture Capital required

6PET GROOMING
For the business operations, the organization is aiming to gain a venture capital of
approximately £100000.

7PET GROOMING
References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Implanting
strategic management. Springer.
David, F.R. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Groomarts.com 2019. Pet report [online]. Available at:
https://groomarts.com/student-advice/marketing-insights (Retrieved on: 6 Mar. 2019).
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Mullins, J. ,2018. The new business road test: what entrepreneurs and executives should do
before launching a lean startup? (5th ed.) Harlow: Pearson’s Education. Chapter 3.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Pfma.org.uk 2018. Pet report [online]. Available at: https://www.pfma.org.uk/pet-data-report-
2018 (Retrieved on: 6 Mar. 2019).
Statista.com 2019. Pet care United Kingdom Market. [Online]. Available at:
https://www.statista.com/statistics/491371/pet-care-united-kingdom-uk-market-value/ (Retrieved
on: 07 Mar. 2019).
Teece, D.J., Pisano, G. and Shuen, A., 1997. Dynamic capabilities and strategic
management. Strategic management journal, 18(7), pp.509-533.

8PET GROOMING
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy (p. 55). Boston: pearson.