The Marketing Mix for Pets.com Case Study Example | Topics and Well Written Essays - 1000 words

The Marketing Mix for Pets.com - Case Study ExampleDiversity of yield was what secernate the site from other competitors, both online and bricks-and-mortar, thus attracting more potential tar model segments. During the launch and growth extent of Pets.com, product was one of the primary selling points along the marketing mix. Place was emphasized for convenience, providing new opportunities for consumers to get pet products without having to visit a bricks-and-mortar competitor. Place was important in the late 1990s as the network was just beginning to become part of consumer lifestyle and thus represented innovation in gross sales st rollgy. Furthermore, price was an important part of the marketing mix. This was reflected in the companions guarantees for a flat rate shipping fee of $4.95 regardless of the volume and weight of the products being delivered. Sales and discounting incentives that provided further value excessively emphasized the companys focus on pricing as a em inence tool. Finally, Pets.com likewise utilized promotion effectively, gaining brand exposure through cross-promotional strategies with The Disco very(prenominal) Channel and Animal Planet. A very large expenditure to be included in the 2000 Super Bowl ad gave the company grand promotional exposure and gained more consumer interest in the process. Analysis of Differentiation Strategy Diversity of product variety served to differentiate from other pet-related competition, illustrating that the business wanted to gain market attention and assist legion(predicate) different target segments. However, there were difficulties with this strategy as the company did not maintain the distribution and storehouse capacity needed to support this differentiation tactic. Further, holding costs of high volume inventories must be considered that include lighting, labor, and taxation that can significantly raise operating costs (Heizer and Render 174). Sales and discounting incentives in any ca se differentiated the business from competition. The advantage of this is that price-sensitive consumers are more attracted to the business model over competition. When offering a flat rate guaranteed shipping price, this also had advantages related to price. Furthermore, using expert consultations from experts in the pet field, such as breeders and scientists, gave the business more credibility and expressed perceptions of competence to many target segments. Some of the differentiation strategies were implemented successfully, including having expert information available to pet owners that gave the business a better market federal agency under quality. However, discounting and high volume merchandise selection offerings conflicted the process of avoiding losses associated with operational budget. If the business had re-examined its moo flat rate shipping policy and redetermined its distribution network strategy, it is likely the cost of goods sold would not have been so high a nd attracted more investor confidence and interest in common stock purchasing. The Product-Market festering Matrix Analysis Adding horse products to the business model was a diversification strategy, branching into untapped or new markets with a new line of relevant products (Boone and Kurtz 218). The result of this strategy along the product-market growth ground substance proposed by Ansoff is having presence in a new market where the business had not previously been devoted. The companys diversification strategy, however, was not efficient, especially since the business did not have the capacity to sustain such high volume inventories and inventory holding costs. Horse ownership is a niche market and virtually consumers procure their products from local organizations and, because of this, it is not likely that Pets.com would have gained much revenue growth in an hunting expedition to lure horse enthusiasts to buy