Name: Date: February 4, 2014
Case Title: Omega Paw Inc.
1. Key Events:
• In September 2012, Ebert invented a self cleaning litter box and had set up a company to distribute this and other pet care products across north America
• In August 2011 after 4 months of advertising in magazines and tv commercial,s, omega sold 2500 units, but there was an issue with the moulds and people who ordered had to wait a few weeks
• In August 2011, they decided to end direct to customer, and targets pet stores. They sold for a few months but the prototypes were not perfect so it damaged the reputation a bit
• By December 2011, the new and improved edition was ready and sold in Canada still. Was ...view middle of the document...
• Mail order/tv campaign is expensive for a trial run and would run in the US. Must hire two companies – one to answer phones and the other to collect money.
• If he sold to mass distribution outlets, it would cost about $50,000 for changes to the product.
o Would also have to sell directly to the specific mass distribution buyers, complicating the process.
o Could they keep up with these sales and the mark up?
• There are different rules to selling to grocery stores, and the demands on Omega would be high.
o Would enough people buy this from a grocery store?
c. Gather and analyze the required quantitative data. Note any important data below i.e. SWOT, Porter’s, Other:
o Marketing budget is $100,000, and the manufacturing facility has a capacity of 3,500 per week.
o Has done research on the market – know the target
o Easy and cost effective product for consumers
o Good advertising
o Distributors already
o Not a large amount of capacity – might need to grow this
o Marketing budget is not very high compared to what might be needed for different avenues.
o Large cat owner market
o Omega is the only self-cleaning litter box on the US market in 2011
o Direct and indirect competition through other self-cleaning litter boxes in Canada, and the basic models.
o Possible changes in needs of consumers
o Sold the product before it was ready – people might have that view of Omega in their heads still.
1. Different advertising to increase attention.
2. Mail order/tv campaign again. – direct sale to customers
3. Mass distribution to places like Walmart
4. Sell to grocery stores.
5. Decision Criteria:
o Omega needs to be able to afford it, and needs to be able to keep up with demand.
o Needs to lead to growth in sales and market share
o Grow into different places
6. Alternative Analysis – Identify each Alternative against the Decision Criteria including Pro’s and Con’s
1. If they choose to change the advertising to increase attention, this is a cost effective way and will allow omega to steadily keep up with orders and growth. This however, might not lead to growth into different places and selling might not increase as drastically as Ebert would like
2. Mail order campaign or selling on tv would be expensive...