University Name: Petyzo Startup Report - Business and Marketing

The report analyzes the Petyzo startup, an Australian company focused on delivering customized dog food. It begins with an introduction to Petyzo, highlighting its unique service of personalized dog food plans based on a dog's weight and activity level, and its subscription-based model. The r...Read More

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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.

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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
Components Item Units required Approximate Total

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costs costs
Manufacturing Equipment Monthly renting
fee
$ 12,000 $ 12,000
Warehouse Monthly renting
fee
$ 18,000 $ 20,000
Component total
sum
$32,000
Generator Solar power
convertor
1 $ 120 $ 120
Generator 1 $ 280 $280
Component total
sum
$ 400
Solar panel Solar cells 50 $ 100 $ 5000
Variable costs
Component Item Hourly cost Approximate
hours
Total
cost
Manufacturing Labour 20 full time
employees
$170,000 $170,000
Utilities Quarterly
payment
$8,000 $ 8,000
Marketing Billboards 3 weeks - -
Sponsored
social media
12 months in 12
locations
120,000 120, 000
Logistics and
distribution
Pick up and
delivery
Time spent in
delivery
$2,000 $2,000

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Billing and
collection
Invoice 12,000 12,000
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 Australia 1, 350,000
Population in victoria 300,000
Population in Sydney 450,665

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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
Awareness Extensive advertising by Petyz through billborads and social media has
created awareness where 34% of the market is due to advertsing
Trial A 30 day trial period is set to new users of the dog product.
Availability 25% Potential consumers to our product will do research before
buying. However, there is available details of all the composition of the

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dog food which brings clarity.
Repeat We 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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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

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Castaño, R., 2020. Consumer Relationships With Brands. In Global 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. In Proceedings 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.