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Pampered Pets Consumer Insights Study

In 2006, the market for pet products and services is expected to reach $38.4 billion, up 5.8 percent from total sales of $36.3 billion in 2005. While basic pet needs - food, veterinary care, medicines - command the largest share of the market, pet luxuries, i.e. things people buy for their pets that are driven more by emotion than basic needs, are the fastest growing segment in the pet market today.

Pet luxuries, or the products and services that pet owners buy for their pampered pets, represent the best opportunity for pet product marketers, retailers and service providers. People spend more - lots more - on purchases that are driven by desire and passion, than those bought out of pure need. So it is in the realm of pet luxuries, rather than basic necessities, where pet marketers need to explore.

Today nearly two-thirds of U.S. households own a pet, or roughly 69.1 million homes, according to the latest research from the American Pet Products Manufacturers Association (APPMA). Nearly half of all households (45 percent) own more than one pet.

Commenting on the pet market, the APPMA says that the "humanization of pets" is one of the biggest trends in the pet market today. That trend will be the major thrust of a new research project to be undertaken jointly by Unity Marketing, experts in the luxury market, and Insights2, product and market innovation specialists.

Companies that Want to Explore Marketing Opportunities in the Pampered Pet Market Needed to Sponsor the Research Effort

This research initiative will focus specifically on the needs, desires, passions of "parents" and their pampered pets. Sponsors are needed to support this research effort. Pet product companies, pet specialty retailers, including internet and direct marketers, and pet services companies will benefit from the new insights into the rapidly growing luxury pet market.

Consumer Insights to Be Discovered

With a focus on consumers, their buying behavior, needs, desires and preferences, this research study will include research data and statistics about:

Pampered Pet Market Size and Growth: What is the size of the 'pampered pet' segment of the pet market? How rapidly is it growing? How is the market segmented by type of product and service purchased?
Demographics of the Pampered Pet Market: What are the demographic characteristics of pampered pet parents? What are the key demographic differences found among and between buyers of the different product and service segments (e.g., gender, age, generation, HHI, size, composition, ethnicity/race, education, etc.)?
Buying Behavior by Parents of Pampered Pets: What are the primary characteristics of the consumers' buying behavior related to pampered pet products and services? What distinguishes a pampered pet product or service from an ordinary pet product or service? What motivates them to pamper their pets and how can marketers tap into this segment of the market through branding and marketing communications initiatives? Where do pampered pet parents shop for the different types of products and services? What factors influence their decision making? How much do they spend buying each of the products and services segments and across the entire category? What is the role of brand in product and services selection and shopping choices? How do different demographic segments differ in their shopping and buying behavior?
Psychographic Profile and Segmentation of the Pampered Pet Markets: A psychographic profile of the pampered pet parents will be developed in this study. The profiles will identify different types or personalities of consumers of pampered pet products and services. These profiles will identify different drives and motivations found among consumers in purchasing these products and services; what factors are more or less important in driving their purchasing decisions; and how pet product and service marketers and retailers can better understand the hearts and minds of their consumers.

Research Methodologies

Insights into the pampered pet parent segments of the market, i.e. people who view their companion animals as full-fledged members of the family, will be gathered using three separate research methodologies:

Focus groups where parents of pampered pets will talk about their pets and how they pamper them by buying them products and services;
Ethnographic or observational research where parents of pampered pets will be observed in their homes interacting with their pampered pets (Advanced sponsors only, see below);
Quantitative survey of 1,000 pampered pet owners to discover their buying behavior, spending patterns and validate hypotheses from focus groups.

Observational Research Will Focus on Parent/Pet Interactions

Observational or ethnographic research will be a special feature of the pampered pet market study. Through the use of direct in-home consumer observations, we will go beyond what consumers say in the focus groups to directly studying them as they interact with their pampered pets. The in-home observations will focus on parent and pet interactions, including grooming, feeding, playing, comforting activities.

These interactions will be recorded and analyzed with a special emphasis on identifying specific consumer needs and discovering new products and service opportunities based upon those needs. Results of the observational research are only available to Advanced Sponsors.

Sponsorship Opportunities and Deliverables

Two levels of research sponsorships are available: Basic and Advanced Research Sponsors.

Basic Research Sponsors - Basic research sponsors will participate in focus groups and the quantitative research study. The deliverables basic sponsors will receive include:

Focus Groups

Participate in guiding and directing the scope of the research study, defining objectives, areas of inquiry and specifying information and insights to pursue.
Participate in focus groups through review of respondent screening criteria and moderator's guide that directs the flow of focus group discussion. This may include preparing one presentation board (about 24" by 36") for discussion in focus groups.
Observe focus groups; receive video copies and transcripts.
In-depth focus group analysis report highlighting major findings from discussion.

Quantitative Survey

Review draft survey questionnaire making suggestions and recommendations, add key brands and 5-6 competitor brands, add key products and services.
Topline results or cross-tabs delivered immediately after survey is conducted which will include answers to all survey questions.
Final in-depth Pampered Pet Market Consumer Insights Report including all major findings from focus groups, quantitative study and psychographic personality analysis.
Webcast presentation of an executive summary of major findings.

Advanced Research Sponsors - Advanced research sponsors will receive all benefits of basic research sponsorship above, including focus groups and quantitative research survey. In addition, they will participate in the observational research phase and have an in-office presentation of the observational research findings and overall major research findings. The deliverables advanced research sponsors will receive include:

Powerpoint presentation of observational research findings, including video clips depicting what defines a 'pampered pet.' The focus of the observational research will be to understand the dynamics of the pet and parent interaction and how products and services enhance that relationship. Advanced research sponsors will gain insights to identify new product and service opportunities linked to consumer and market gaps discovered through the observational research. (Note: Video clips will be suitable for incorporating into the sponsoring company's own presentations.)
In-office presentation of major findings with advanced sponsor's executive team.
Detailed review of findings from focus groups, in-home observations and consumer survey.
Discussion and recommendations of sponsor-specific opportunities.

Timing

Unity plans to conduct the research and publish the final report during September-December 2006.

Basic Research Sponsorship Fee: $5,000 to $7,500

(Basic sponsorship fees may vary depending upon the total number of research sponsors)

Advanced Research Sponsorship Fee: $15,000

More Information

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