Writers Den

In-Class Assignment

MKTG 341

Fall
2014

Introduction:

One
week from today, you will be given the exact same assignmentquestion that is
shown in the box below and asked to answer it in class. You may use the time
prior to that class to prepare your answer. You may use outside resources in
order to help you answer this question to the best of your ability. However,
please note that on the day of the assignment, you will not be allowed
to use any course material such as textbook, articles, notebook, etc. You will
have only 50 minutes to write your answer.

Requirements:

One the day of the assignment, you
will be given a template on which to write your answer. The template is shown on pages 2 – 4 of this handout. Please write
concisely because your answer must fit in the space. Please write legibly so
that your answer can be accurately graded.

TEMPLATE

NAME:
___________________________________ MAJOR:
__________________________

Summary of Analysis

[This will be blank on the day you
answer the question. The summary should hit all of the highlights of your
analysis and recommendations in a few sentences. Normally, you would write it after
you finish your analysis]

SWOT Analysis

Strengths [The chart will be blank on the day you answer the question. Normally you should have multiplebullet points in each box]	Weaknesses
Opportunities	Threats

Possible Target Segments

[You should describe three potential
target segments. Ideally, the ideas for your segments should be related to the
bullet points in your SWOT]

1.

2.

3.

Evaluation of Target Segments

Criteria
for Evaluation

[List three criteria that you believe
should be used to select your target market]

1.

2.

3.

Importance
of Criteria

[Explain why you picked the three
criteria that you picked and assign weights to each to indicate their relative
importance in making your decision]

Segment
Attractiveness

[Evaluate each of your three segments
on each of your three evaluative criteria. You could use a table like the
example one below]

	[Write name of your first criterion here Weight = _____%]	[Write name of your second criterion here Weight = _____%]	[Write name of your third criterion here Weight = _____%]
[Write name of your first segment here]	[in this box, explain how your first segment stacks up on your first criterion]
[Write name of your second segment here]
[Write name of your third segment here]

Recommendation

[Recommend which of your three
segments Petsmart should choose and justify your decision based on the analysis
above]

THE
FOLLOWING INFORMATION IS YOUR USE IN PREPARING YOUR ANSWER. IT WILL NOT BE
AVAILABLE ON THE DAY YOU COMPLETE THE ASSIGNMETN IN CLASS

RUBRIC:

You will be graded on your ability to
concisely, yet completely answer all parts of the assignment question. The
following rubric provides additional guidelines.

Criteria

1. Identify problems and/or opportunities using disciplinary concepts

Exemplary: Identifies multiple relevant strengths and weaknesses of the company and its competition. Identifies multiple relevant environmental opportunities and threats.

Acceptable: Identifies some relevant strengths, weaknesses, opportunities and threats. However, does not identifymultiple factors for each and/or not all micro and macro level factors are relevant

Unacceptable: Does not identify relevant factors for each element of the SWOT

2. Generate feasible alternatives.

Exemplary: Identifies and describes in detail at least three feasible segments that reflect an in-depth understanding of the segmentation variables.

Acceptable: Identifies and describes at least three segments, but does not fully utilize all bases for segmentation and/or not all three segments are feasible.

Unacceptable: Identifies two or fewer segments and/or no segments are feasible

3. Identifies criteria for assessing alternatives and ranks alternatives based on importance

Exemplary: Identifies at least three relevant decision criteria and weights each demonstrating a clear priority of some criteria over others. Relative importance is justified using compelling and logical reasoning.

Acceptable: Identifies at least three decision criteria and mentions a priority of some criteria over others.

Unacceptable:Identifies two or fewer criteria and/or there is no discussion of the alternatives’ relative importance.

4. Applies criteria to alternatives

Exemplary: Creates an analysis that includes all alternatives and decision criteria. The rationale shows the difference between all alternatives in terms of relative importance for each criterion.

Acceptable: Describes the application of criteria.

Unacceptable: Does not describe the application of criteria.

5. Develops and justifies conclusion/recommendations

Exemplary: Evaluates each alternative. Selects best alternative based on relative importance. Relative importance of all criteria is consistent with and reflects criterion ranking developed by student.

Acceptable: Selects best alternative, but does not make mention of relative importance of various criterion.

Unacceptable: Analysis does not provide a clear recommendation and conclusion.

SUGGESTIONS FOR PREPARING

Using
knowledge about the process of designing a marketing strategy (from your class
and textbook), a little bit of outside research, and your own critical thinking
skills, you should be prepared to answer this question. But, you will need to put some work and
thought into it if you want to do a good job.

Here are some
steps that you should follow to prepare your answer:

Step
1: Conduct a SWOT
analysis, describing three relevant items for each element of the SWOT. You
will need to do some research on the strengths and weaknesses of PetSmart and
their potential competition, but you won’t need to remember detailed citations.
Consider the competition, characteristics of potential users, and macro
environmental factors such as economic, technological, social, and political
trends that might be relevant to identifying opportunities and threats. State
your assumptions about the marketplace and identify that they are assumptions.

Step
2: Based on the
understanding you have gained from the SWOT analysis, identify three potential
market segments and describe these segments using geographic, demographic,
psychographic, benefits and usage patterns. Don’t forget to name your segments
and explain what makes each segment unique.

Step 3:Make a list of at least three decision
criteria that PetSmart should consider (such as potential profitability, size,
accessibility and responsiveness). Explain why each of these criteria are
relevant. Develop weights for each decision criterion. Explain why the higher
weighted criteria are more important than the lower weighted criteria.

Step 4:Use the information you have to
evaluate each potential segment on each of the decision criteria.

Be
sure to assign weights to each criterion and explain your reasoning.

Step
5:Choose and
identify the segment that you believe is best. Justify your decision by briefly
summarizing which elements of your SWOT analysis and which characteristics of
the segment and its attractiveness led you choose it as the best option. Indicate
whether or not you think Petsmart should move ahead with the venture by
pursuing this target.

Writing
your answer

In class on the day of the
assessment, you will need to write your analysis of the question with no notes
or other materials using the attached template in only 50 minutes. So, you will
need to be concise. You may use additional bullet points, tables, and
subheadings to make your answer clear and easy to read.

Be sure that you address
all four parts of the assignment question using the suggested steps listed
above. Be sure that you actually make and state your decision about the best
segment to target and whether this best segment is good enough to pursue.

Academic
honesty

You are required to
answer this question individually. You may ask your professor questions about
sources of information, the process to use, and whether or not your assumptions
make sense.

THE
FOLLOWING INFORMATION IS YOUR USE IN PREPARING YOUR ANSWER. IT WILL NOT BE
AVAILABLE ON THE DAY YOU COMPLETE THE ASSIGNMETN IN CLASS

INFORMATION ON PETSMART

PetSmart,
Inc. is the largest pet supply company in the United States, posting 10
quarters in a row of double digit profit growth. Mr. Moran, PetSmart’s CEO, cites a growing
trend of “humanization of pets” as one reason for the increased demand for pet
products and services. Pet owners no
longer view their cats and dogs as possessions; instead viewing their animals
as family members. Mr. Moran recognizes
that in order to maintain double digit growth, he must offer the right products
to the right target market at the right time.

According to the2011-2012 APPA National Pet Owners Survey,
more than 60% of
homes in the US have a pet – close to 73 million households. In 2011, there were about 78 million dogs and
86.4 million cats in theUnited States – a 2.1 percent increase in pet
ownership over 2010. Americans spent
more than $50 billion on their pets in 2011 (a record) with food accounting for
a majority of the spending. The typical
dog owner will spend $254 annually on food which does not include treats,
compared to an average annual food expense for cat owners of $220. Below, you will find more information on the
U.S. pet industry.

Estimated 2012 Sales within the U.S. Market (Source: APPA, American Pet Products
Association)

For 2012, it estimated that $52.87 billion will be spent on our
pets in the U.S.

Estimated
Breakdown:

Food $20.46
billion
Supplies/OTC
Medicine $12.56
billion
Vet
Care
$13.59 billion
Live animal
purchases $2.15
billion
Pet Services: grooming & boarding $4.11 billion

According to the2011-2012 APPA National Pet Owners Survey,
basic annual expenses for dog and cat owners in dollars include:

Dogs
Cats
Surgical Vet
Visits $407 $425

Routine
Vet $248 $219

Food $254 $220

Kennel
Boarding $274 $166

Vitamins $95 $43

Travel
Expenses $78 $48

Groomer/Grooming
Aids $73
$34
Food
Treats $70
$41
Toys $43 $21

KEY
TRENDS FROM THE 2011 PET PRODUCTS TREND REPORT

Reducing
Your Pets Carbon PAW print
Around
the world people are making conscious efforts to help our planet Earth, and the
pet industry is no exception. From natural litters to toys, accessories and
organic food options, earth-friendly pet products are sprouting up everywhere.

Going
to the Dogs
More and more companies traditionally known for human products are going to the
dogs, and cats, and reptiles. Big name companies including Paul Mitchell, Omaha
Steaks, Origins, Harley Davidson and Old Navy are now offering lines of pet
products ranging from dog shampoo, pet attire, and name-brand toys to gourmet
treats and food.

Ultra-Clean…

Pet-owners take grooming one step beyond a haircut, a quick bath, and a nail
trim. Mouthwash and an electric toothbrush for canines are routine steps in a
beauty session for some pooches. Birds receive daily pedicures with special
cage perches, while others enjoy manicures complete with nail polish.
Pet-owning homes stay cleaner with automatic, self-flushing litter boxes,
cleaning cloths for muddy paws that mimic traditional baby wipes, and scented
gel air fresheners to keep rooms free of pet odors.

Dinner
is Served
Today’s pet foods include complete and balanced diets that tantalize our pets’
taste buds and satisfy their tummies. Formulas for puppies and kittens,
specialized meals for reptiles, birds and fish and diets for senior pets ensure
a long and healthy life for our beloved companions.

Loosen
Up
As pet owners meditate in yoga class, cats relieve stress by frolicking in a
toy gym or relaxing in a feline spa before enjoying herbal catnip packaged in a
tea bag. Dogs sip fresh water from flowing fountains after a soothing rub with
a doggie massager.

Help
Yourself!
Products designed with convenience in mind lead this trend. Programmable
feeding and drinking systems, automatic and battery-operated toys,
self-cleaning litter boxes and self-warming pet mats let pets virtually care
for themselves!

Straight
from the Catwalk
Faux mink coats, hipster lumberjack vests, designer plaid jackets, matching
jeweled and leather collar and leash sets, Halloween costumes, and holiday
outfits keep pets in fashion throughout the year. Upscale leather carriers
complete with a cell phone and water bottle holder are the perfect accessories
to keep the pet owner in style as well.

Hello,
My Name Is…
From monogrammed sweaters and personalized food and water bowls to digitized
collar tags and hand-made treats, owners embrace their pets as true members of
the American family celebrating their fluffy, finned and feathered companions
with their very own belongings.