Mission Statement

Nutripet serves dogs, cats, and their loving owners in Manhattan, New York. We provide
nutrition knowledge, speciality pet foods and interactive classes. Nutripet strives to build
awareness about pet nutrition and to improve your pets quality of life.

Company Description

Nutripet is an entrepreneurial pet store located in the heart of Manhattan, New York.They are
excitedly anticipating a grand opening scheduled for August 1st, 2017 . Nutripet is
nutritionally ready to serve cats, dogs and their owners. The business will offer a wide variety
of affordable, specialty cat and dog food with a goal of meeting their individual needs. With New
Yorkers in mind, Nutripet provides daily health interactive events, lectures, grooming services
and classes to join. Pets are always welcome and encouraged! This business will incorporate
Nutripet into customers lives by providing a facility for pets to get exercise, make friends and
for their owners to learn how to safely care for their pet. Nutripet wants pets to live as healthy
as possible despite the lack of green grass in the streets of New York. The staff includes 15 full
time employees and 10 part time employees armed with a diverse amount of pet knowledge and
expertise. Within the 25 members of staff, Nutripet has 3 professional groomers, 1 veterinarian, 5
certified pet trainers and 15 avid dog and cat lovers. Customers will be satisfied with a pleasantly
helpful, fun and nutritious experience each time they enter Nutripets doors. Nutripet is licensed
by the Animal Welfare Act, the USDA and the Animal Plant Health Inspection Service. Nutripet
will also follow all State and Federal laws required for their business.

Organizational Chart of NutriPet Employees

Owner: CEO
Store Manager

Office Manager

1 Head

5 Pet

15 Floor

Groomer, 2

Veterinarian

Trainers

Employees

1 Office Assistant

Part time
Groomers

Objectives

1. Three months after opening, Nutripet will serve a minimum of five hundred
customers by tracking transactions.
2. After three days of training and orientation, 100% of employees will pass a
pet nutrition test created by the founders, to ensure workers are giving credible
information to clients.
3. Two years after opening Nutripet, two hundred pets and their owners will
participate in Saturday classes.
4. Nutripet guarantees high quality pet food by consistently evaluating the top
five ingredients every time a new food product is ordered. These products will
be measured against quality food standards.

StartUp Costs
StartUp Items

Amount per Brand

Total Cost

Cat Food

15 Brands:
Dry Food Bags (# and size): (#10) 3lb., (#10) 5lb.,
(#15) 15lb.
Wet Food Cans (# and size): (#10) 5.5oz24/ case

$14,250.00

Dog Food

15 Brands:
Dry Food Bags (# and size): (#15) 8lb., (#20)17lb.,
(#25) 30lb.
Wet Food Cans (# and size): (#5)12.5oz24/case

$25,625.00

Pet Toys

(#60, $350) Extra Small, (#60, $490) Small, (#55, $550)

Medium, (#50, $900) Large, (#30, $800) Extra Large

$3,090.00

Pet
Accessories

(#30, $950) Beds, (#20, $100) Bowls, (#10, $150)

Feeders, (#30, $300) Clothes, (#100, $500) Collars,
(#70, $400) Harnesses, (#100, $600) Leashes, (#50,
$950) Crates and Carriers, (#50, $2,500) Flea and Tick,
(#40, $800) Litter, (#50, $700) Litter Boxes

$7,950.00

Pet Treats

(#60, $600) Biscuits, (#70, $500) Bones and Rawhide,

(#60, $600) Chewy Treats, (#35, $450) Dental Treats,
(#20, $100) Jerky, (#60, $400) Training Treats

$2,650.00

Pet Grooming
Supplies

(#50, $650)Brushes, (#60, $700) Shampoo and

Conditioner, (#20, $100) Ear Cleaners, (#20, $100) Eye
Cleaners, (#25, $200) Hair Clipper and Trimmers, (#30,
$150) Nail Care

$1,900.00

Advertising

($1,200) Radio broadcast Commercial, ($500)

Newspaper Ad

$1,700.00

Total StartUp Cost: $57,165.00

NutriPets total startup cost is $57,165. This number is mostly made up of beginning
inventory such as pet food and supplies for customers. The number also includes advertising
3

costs since this is essential for getting the business ready for the grand opening. This process was
very challenging. Karrie, the store manager, has worked at a pet store for over four years and she
had a lot of ideas when it came to inventory items. This was helpful for understanding what
products a pet store needs as well as average costs. However, it was difficult to determine how
specific to be when compiling information such as brands, numbers and varieties of products.
The NutriPet team figured out a way to simplify the data but still come up with a reasonable
estimate of startup costs. To start, they decided 15 brands of specialty dog and cat food would
be a good number to fit a wide variety of customers. The 15 brands involve a range of prices to
fit different budgets. However, no matter the price customers can feel confident they are buying
a quality food since they each have quality first five ingredients. The dry pet food was divided
into small, medium and large size bags and the number of bags was estimated based on what
would need to be purchased for the 15 different brands. In reality, the business might benefit
from starting out with different amounts of bags depending on the brand. For example, they
could purchase less of a more expensive brand since this item may take more time to sell.
However, to simplify the process they estimated the best average for each size of bag. The team
also estimated the number of cans for both cats and dogs. They chose to purchase more dry food
for dogs and more wet food for cats since this is the trend for cat and dog needs.
When looking at the other startup costs, NutriPet divided a large amount of supplies into
categories such as pet toys, accessories, treats, grooming supplies and advertising. They
estimated the number of items to order based on popularity and necessity of items. There was
consideration for different prices of the variety of items in each group. For example, pet beds are
a large group of items. They can range significantly in price, so within the 30 beds needed they
included a range of prices to come up with the best estimated overall cost. Most of the costs for
pet food and supplies came from the PetSmart website. When looking at advertising, NutriPet
researched cost of advertising in New York to come up with an estimation for the radio broadcast
and newspaper article. Both the radio broadcast and newspaper article will easily reach
consumers of New York since both of these advertisements are readily available, whether heard
on the morning commute or seen in newspaper stands across the city.

Capital Budget
Capital Items

Description (# and $ cost per items)

Total Cost

Pet Class
Supplies

Basic Agility: (#1, $200) tunnel, (#2, $160) 1

panel jumps, (#1, $200) set of weave poles, (#1,
$400) seesaw, (#1, $1,000) turf flooring

$1,960.00

Warehouse and
Store Shelving

Medium Shelving: (#6, $300), Large Shelving

(#10, $500)

$6,800.00

Computers

Windows Desktop Computers (#5, $500)

$2500.00

Grooming
Equipment

Grooming Tables (#3, $150), Medium Kennels

(#5, $200), Large Kennels (#5, $300), Grooming
Blow Dryers (#3, $50), Grooming Kit (all tools
used such as brushes, scissors, shearers, etc) (#3,
$30), Wash Tubs (#21 medium, 1 large, $250
medium, $350 large)

$3,790.00

Cash
Register/POS
System

Cash Registers with POS system: (#2, $700)

$1,400.00

Security Deposit

Equates to 3 months of rent

(one month of rent = $113,750)

$113,750.00

Total Capital Budget: $130,200.00

Nutripet is a small business, and therefore they do not need a large number of capital
items. These items are very specific towards the stores functional needs, resulting in a total
capital budget of about $130,200. The budget is broken down into the following capital items:
pet class supplies, warehouse and store shelving, computers, grooming equipment, and cash
register/POS systems. In order to determine the prices for these items, research was conducted
on small pet stores in New York, and larger pet stores, such as PetSmart. Additional research was
conducted on different purchasing websites, in order to find common prices for these items.

Nutripet will offer classes geared towards exercise and agility training. These agility items
were based off of research of other pet stores with agility training. The exercise class will be
small, and will only offer five different agility items. In terms of shelving, there will be six
medium shelves for the storefront and 10 larger shelves for storage in the back. A majority of
the businesss inventory items will be kept as back stock in the warehouse. Nutripet will also
have
two computer out front with a POS system for checkout, in addition to one computer each for the
Store Owner, Office Manager and Store Manager.

Expenses/Operating Budget

Direct Labor
Employee

Wage

Anticipated

Position

Weekly

Base Number
pays

hours

Full Time 10.00 per

40

$400.00

Labor

Annual

of

cost

Labor Cost

Emplo

per

yees

Week

$800.00

Groomer + 30% of

+ 30% of

appt

30% of

appt

$41,600.00

appt
Part Time $9.00 per

30

$270.00

$14,040.00

Groomer + 20% of

+ 20%

$270.00

appt

of appt

+ 20%
of appt

Managers Salary of

40

$737.88

2 $1,475.76

$76,739.52

$10.00

40

$400.00

5 $2,000.00

$104,000.00

$9.00

30

$270.00

10 $2,700.00

$140,400

$15.00

$90.00

$90.00

$4,680.00

$15.00

10

$150.00

$750.00

$39,000

$38,370
per year
Full Time
Floor
Employees
Part Time
Floor
Employees
Registered
Veterinary
Technician
Certified
Pet Trainer
Annual Labor Cost: $420,459.52

The minimum wage in New York is $8.75/ hour. As anticipated, the labor is going to be
the largest expense for NutriPet. The total annual labor cost will be $420,459.52.

Overhead Budget
Overhead Items
Rent

Description
7000 sf total (building size: 3,000 sf): $455,000.00/yr
($65.00 per sf)

Business Liability
Insurance

$2,000.00

Taxes

$68,250.00

Utilities

Electric: $4,800.00 Water:$720.00 Internet: $2,400.00

Maintenance and Repairs

**Varies based on need

$7,000.00

Total Annual Overhead Cost: $540,170.00

The total overhead cost for NutriPet will be around $540,170. The majority of the total
overhead is coming from rent and taxes. As a new business, NutriPet will lease building space
rather than buy a building. A business location in Manhattan, New York, results in very high
rental prices. Nutripet will have 7,000 square feet of space, with 3,000 square feet as building
space. Each square feet will cost $65, resulting in an annual leasing expense of $455,000.
Information about rent was determined from www.loopnet.com, a New York leasing website.
Taxes on lease will be about 15%, resulting in about $68,200 a year.
Both utilities and maintenance and repair will vary based on the time of year and the
need. The utilities will cost more during the summer and winter months. More heat will be
needed in the winter and the air will need to be higher than usual in the summer months,
especially since NutriPet accommodates for animals and animal care. The fall and spring months
will be cheaper, in terms of the electric bill. The internet and water bill should remain more
consistent, based upon consistent use each month. The water bill will be based off of restroom
use and number of grooming appointments. Maintenance and repair will be on a need be basis,
especially if equipment needs to be replaced, or there happen to be any weather related issues. In
order to determine this number, a good rule of thumb is $1 per square feet a year.

Direct Material
Items
Pet Food

Cost per Month

$19,937.50

Cost per Year

$239,250.00
8

Pet Toys

$1,545.00

$18,540.00

Pet Accessories

$3,975.00

$47,700.00

Pet Treats

$1,325.00

$15,900.00

Pet Grooming Supplies

$950.00

$11,400.00

Total Annual Direct Material Cost =$289,790.00

NutriPet estimates that the monthly direct material costs will be equal to half of the the
initial startup inventory costs minus the cost of advertising since this cost will subside after the
initial startup period. Therefore, the monthly direct material cost will be approximately
$289,790 . In the future, the direct material budget will adjust based on sales and frequency of
orders. NutriPet plans to operate on a biweekly weekly ordering basis for items such as pet food
and supplies. Pet food will continue to be ordered regularly, though there will be a backstock of
larger bags in the warehouse. Pet supplies will remain on the shelves longer and will not need to
be ordered as frequently as other pet food. In short, the direct material cost will adjust as
NutriPet learns their customers needs. This will influence the cost spent on material per month
and annually.

Income

Projected Income / Revenue per Month

Revenue Items
and Services
Cat Food

Cost

Sales Price
(Cost + 35%
mark up)

Estimated
Sales

Profit

$7,125.00

$9,618.75

$8,500.00

$1,375.00
9

Dog Food

$12,312.50

$16,621.88

$15,000.00

$2,687.50

Pet Toys

$1,545.00

$2,085.75

$1,900.00

$355.00

Pet Accessories

$3,975.00

$5,366.25

$5,000.00

$1,075.00

Pet Treats

$1,325.00

$1,788.75

$1,600.00

$275.00

$950.00

$1,282.50

$1,100.00

$150.00

$24,000.00

N/A

$33,600.00

$9,600.00

$3.210.00

N/A

$9,000.00

$5,790.00

Pet Grooming
Supplies
Grooming
services
Class fees

Total Income per Month:$21,307.50

The above revenue items represent NutriPets sources of income/revenue on an ongoing

basis. The cost for revenue items was found using the monthly direct material costs. For revenue
services such as grooming services and class fees, the cost was found by calculating the monthly
labor fees for these services based on the number of employees and their wages. Each of the
revenue items besides the grooming services and class fees required a 35% mark up price for the
business to make a profit on the items. The estimated sales column reflects NutriPets
anticipated sales for each revenue item. Sales are estimated to be above cost each month, but
below the sales mark up since not all items are expected to be sold. The grooming services and
class fees estimated sales were found based on the calculations below:
Grooming Service: ranging from $15100 ~8 appointments/day full time (~$600x2.30)+2 appointments/day part time (~$100.20)+ nail trims (~$100x2) $1,120/day x30 =
$33,600/month. Class fees/month: ranging from $2040 ~10 classes/day (~$300) x 30
= $9,000/month

10

The above calculations take into account the range of prices of services, the number of
appointments and classes, the employee's percentage of sales in the case for grooming services,
and are then multiplied by 30 to find the total estimated sales for an entire month.
The profit reflects the difference in cost and estimated sales. NutriPets total income for
each month is projected to equal $21,207.50.

Projected Income/Revenue per Year

Total Revenue

$255,690.00

Total Operating Cost

$710,248.52

Net Profit: $454,558.52

The projected income/revenue per year for NutriPet is $454,558.52. The total revenue of
$255,690 includes the all anticipated income from revenue items and services such as pet food,
toys, accessories, treats, grooming supplies, grooming services and pet class fees. The total
operating cost of $710,248.52 includes the direct labor budget, direct material budget and the
overhead budget. The net profit reflects a negative cash flow and is the the annual projected
income for NutriPet during its first year of business. The negative profit number was anticipated
since this business is new and sales are expected to increase after the first year with an increase
in customers.
Nutripet has a strong foundation which will help with growth and start up money to
launch their business. For the past 10 years, Ashley, Karrie, and Kelly have been working in the
pet nutrition industry training pets and giving nutrition advice to owners about their pets. Kelly,
Ashley and Karrie have made a name for themselves as pet nutrition experts and are recognized
in the Manhattan area for giving excellent pet nutrition advice and training. They have an
accumulated savings of $150,000 to start up their dream store NutriPet. This store has been a
long term dream for all three of these educated women. They will use this startup money, their
establishment in the community of pet owners in Manhattan, along with their beneficiary Mr.
Green, a long term customer who is investing $400,000 in NutriPet. These ladies are financially
11

ready to begin their dream store. The additional costs will be covered by a loan approved
by PNC bank of $200,000. Since the net profit is $454,558.52, NutriPet will use the
$400,000
investment from Mr. Green and $54,558.52 from the $200,000 loan. The remaining loan amount,
$145,441.48, plus the $150,000 savings equals $295,441.48 can be used to cover NutriPets total
start up costs and capital budget items. The start up costs and capital budget items equals
$187,365. $295,441.48 $187,365= $108,076.48 This equation shows that NutriPet will have
$108,076.48 as cash flow to carry over into the following year and use to pay expenses as
needed.

SWOT Analysis

Strengths

Weaknesses

Specializes in cats and dogs

Limited choices for other animals

Growing market for pet health and

High cost of rent

nutrition

Weather transportation issues in

winter

Quality pet food unique selling point

Trained staff members

Irregular customer base during

startup

Variety of classes and services

Indoor training facility
Opportunities

Threats

Utilize advertising channels

Store Competition

Develop from of the store marketing

NutriPets debt

Branch into the suburbs

Transportation during harsh weather

Stay current with trending dog and cat

Training new employees

foods
12

Strengths

NutriPet specializes in cats and dogs, so owners will feel more comfortable going to a
store that carries products and services solely for their cat or dog. This focus on cats and dogs
sets NutriPet apart from other pet stores such as PetSmart and PetCo that do not specialize on
particular pet groups. NutriPets focus on pet health goes above and beyond the efforts made in
other pet stores. NutriPet offers a unique selling proposition by setting criteria for quality pet
food and guaranteeing to only sell products within this category. By carrying only quality
ingredient pet foods, NutriPet will serve customers who value the health of their pet and are
against fillers, byproducts and unhealthy ingredients in name brand foods that are sold in most
other pet stores. NutriPet offers daily health interactive events, lectures by guest speakers,
knowledge from a Registered Veterinary Technician, exercise classes and grooming services.
Their staff members are all trained in basic dog and cat nutrition and attend regular classes about
the different brands and supplies from sales representatives. The services will bring in customers
who may then purchase pet supplies, and the pet supplies will bring in customers who may then
take interest in the services provided. The knowledge of staff members and services offered set
NutriPet apart when customers are looking for sound pet health information. Employees will
get the sale by gaining trust from customers with evidencebased advice. Americans are
spending more than ever on their pets. Over the past four years, there has been a growth of 17%
in organic and natural pet food products. The market in Manhattan, New York is a part of the
growing trend showing increased regular spending on their pets. NutriPets broad range of
services will keep their business busy throughout the entire year. During the summer, owners in
the city with limited outdoor space can bring their pets to run around in the agility class room. In
the winter months, the city allows transit through busses and is within walking distance for many
residents so owners can travel to NutriPet with snowy conditions and still give their pets
exercise.
13

Weaknesses

Nutripet is a specialized pet store for cats and dogs. Pet Owners may have additional
pets aside from either a cat or dog, and therefore may chose to go to a pet store focused on a
wider array of animals, such as Petco and PetSmart. In addition, Manhattan has a very
expensive cost of living, making rent prices much higher than other areas of New York. The rent
for NutriPet is
$455,000.00/yr in addition to the cost of utilities. If Nutripet is not able to make expected sales,
the business is at risk for not being able to break even, and eventually make a profit.The area of
Manhattan also has cold and snowy winters, which may make traveling through the city difficult.
Pet Owners may be hesitant and less willing to take their pets to classes and to purchase pet food
and supplies. Although classes are held inside, In terms of convenience and safety, some pet
owner may chose to order pet food and supplies online, or at a pet store that is closer to their
home. Just as human are less inclined to exercise in the winter months, the pet owners may also
be less inclined to take their pet to a class focused on exercise. A decrease in sales during the
winter months is a possibility. As NutriPet is a recent business, scheduled for a grand opening of
August 1, 2017, a loyal customer base has also yet to be established. In order to build a loyal
customer base, Nutripet must focus on customer satisfaction, rewards programs, and excellent
customer service.

Opportunities

As NutriPet enters the New York marketplace with its speciality pet products and
services, there will be new opportunities for profit and growth. NutriPet hopes to reach more
customers, namely pet lovers with a steady income. Within the first year of business, the
company will learn which advertising channels work and will use creativity to increase
advertisements and customer base. Thousands of people walk the NutriPet storefront daily
14

which increases customer awareness. NutriPet will invest in new marketing in front of the store
to attract more customers. This may be accomplished by having an employee dress up in a dog
costume in front of the store and handing out flyers and coupons during rush hour when people
are passing by the store on their way to work. In the success of NutriPet in the future, the
company hopes to have the opportunity to branch into the suburbs of New York city to reach
more people in the area. When new trends of dog food come on the market, NutriPet will be on
top of these products and try to get the products into their store as quickly as possible.

Threats

Although NutriPets focus on cats and dogs may be appealing to many customers, it is
important to note that the business has a decent amount of store competition, in the Manhattan
area. There are over 80 general and specialty pet stores in the Manhattan area, allowing for the
Manhattan residents to have a wide array of stores to chose from. Within a ten mile radius of the
Manhattan area, there a 7 PetSmarts and 20 Petco's alone. The financial situation of NutriPet is
not ideal. Prior to grand opening, Nutripet is in debt, as a result of the businesses total operating
costs in relation to the total revenue. Another obstacle faced, is environmental. Manhattan
experiences harsh winters, consisting of cold and snowy weather. Bad weather as such, can
discourage customers from making the trip to the store. Many people have concerns with safety
in terms of bad weather, and will chose whatever is closest and easiest to get what they need.
NutriPet is excited to open the store, however, the employees must be trained first. This training
could take a substantial amount of time and effort by the owners to train the new employees.

Risks

15

Three months after opening, Nutripet will serve a minimum of five hundred customers by
tracking transactions. This goal will be a challenge to reach because when a new store opens,
many people may walk in to look around, but not buy something right away. Managers must try
to make the store look enticing so people come in, and then they come back to buy something for
their pet. A solution to this issue is to give out coupons saying something like $5 off your first
purchase of dog food therefore inviting customers to save money on their first purchase.

After three days of training and orientation, 100% of employees will pass a pet nutrition test
created by the founders, to ensure workers are giving credible information to clients. Having
employees take and pass a pet nutrition test, is a measurable way to determine if the employees
are educated and informed on the topic of Pet Nutrition and Health, prior to the grand opening of
the business. However, the question arises of what happens if the employee does not pass the
exam. Managers must work with the employees to help them understand what they are
struggling with. Time must be devoted to helping the employee before looking for a new hire for
the position. If after receiving additional help, the employee does not pass the pet nutrition test,
based off of the manager's judgement, it is advisable to look for a new person as soon as
possible to fill the position.

Two years after opening Nutripet, two hundred pets and their owners will participate in
Saturday classes. Nutripet is at risk for only serving dog owners in the Saturday classes. Cats
are not as likely as a dog to travel or participate in exercise classes. Since NutriPet only
specializes in cats and dogs, they are limited to meeting the two hundred pet quota through
customers with dogs. This goal is also challenged by the surrounding pet store competition.
Both PetCo and PetSmart offer training classes for pets on various days throughout the week,
including Saturdays. NutriPet could branch out from other businesses by offering a unique
Saturday class geared towards cats. This would increase their chances of meeting their quota
and standing out from other stores classes. NutriPet will offer a frequent customer card for
Saturday

16

classes to increase repeated participation. Once customers attend 5 Saturday classes, they get one
free.

Nutripet guarantees high quality pet food by consistently evaluating the top five ingredients
every time a new food product is ordered. These products will be measured against quality food
standards. NutriPet must keep track of what is selling and what is not selling in the store. Our
experienced managers will keep up to date with new products and ingredients to ensure our
customers that they will be getting the highest quality pet food available.

Industry Analysis

Consumers today are spending more than ever on their pets, which is why the world pet
markets are now growing dramatically! Many countries are witnessing increases in pet
ownership and spending. Some of todays hot trends, according to The World Pet Market are:
pet grooming, elegant dog food, fancy pet spas, pet behaviorists, yoga for dogs and pet
magazines. In addition, dogfriendly restaurants, where pet parents can treat their pooches to
gourmet meals, also are a growing trend in India (1).
Within a ten mile radius of the Manhattan area, there are 7 PetSmarts and 20 Petco's
which are direct competitors of NutriPet. PetSmart and Petco are both well known pet stores on
the national level and have a very good history of providing adequate pet food, supplies, and
services. One weakness of PetSmart and PetCo is that they are not known for highend service or
care which is a strength of NutriPet. Indirect competitors of NutriPet are any local grocery
stores that have a pet aisle. These grocery stores are convenient for the public because people
can buy human and pet food at the same place so they only have to go to one store to shop. One
weakness of buying dog and cat food and accessories at a grocery store is that the grocery store
may not have much variety. Another weakness is the grocery store will not provide grooming
services or fitness classes for their pets.
17

NutriPet has the opportunity to gain market share by first gaining a large clientele base in
Manhattan. Once consumers recognize this business excellent services and expert care,
NutriPet can work on expanding assets. This would include other services like dog and owner
spas or maybe a Dine with Doggie Cafe. Perhaps NutriPet will expand and gain a larger client
base and the public will become more interested in pet nutrition. A long term goal for NutriPet is
to create a website. This will help them keep up with competitors PetSmart and Petco, promote
their goods and services and increase sales for a larger audience. Another way to gain market
share is if NutriPet expands to more store locations. This could first be an extra two stores in the
midatlantic region and then perhaps the whole east coast. The possibilities are endless if
NutriPet does well in the Manhattan location.

Product

NutriPet is an entrepreneurial specialty pet store located in the heart of Manhattan, New
York. NutriPet sells affordable and wholesome cat and dog food as well as additional pet
supplies, in order to meet each pets needs. In addition, NutriPet offers different events involving
both the pet and the owner, such as lectures, grooming services, and exercise classes. With a
focus specifically on cats and dogs, owners are exposed to a wide array of food/supplies and
knowledge that can help their pets to live a long and happy life. There are many brands of dog
and cat food on the market. However, Nutripet focuses on continuous scientific based research in
order to select the highest quality pet food in terms of ingredients and overall nutrition. Owners
do not need to search through a larger and more general pet store looking for what they need. At
NutriPet, customers can find exactly what they are looking for. NutriPets employees are trained
in cat and dog nutrition, in order to help customers, whether it be choosing the correct food and
supplies, or educating and answering questions during interactive lectures and classes.

18

Place

Manhattan, New York has a very dense population. Residents of Manhattan are
surrounded by an urban lifestyle, and many have a very busy schedules. This makes taking care
of pets difficult. NutriPet can assist pet owners by providing exercise classes for those days
where pet owners are too busy to exercise with their pets. This is also very helpful during the
winter months, where the weather is colder and snowfall is prevalent. Studies have shown that
pet owners are less likely to walk their dogs during the winter months. NutriPet continues with
its exercise classes during the winter. The stores indoor exercise facility is expected to be a
highly utilized feature during this time. Again, because NutriPet is located in the heart of
Manhattan, pet owners could pass by the store each day on their way to and from work. This
convenient location makes stopping at NutriPet on their way home from work a very realistic
option.

Promotion

NutriPet is expecting its grand opening on August 1, 2017. In order to promote the store
and attract a strong customer base, Nutripet will focus on effective advertising and promotions.
The storefront has the potential for thousands of people to walk by each day. As a way to attract
more customers into the store during their first few weeks of business, some of the stores
employees will dress up in dog costumes and hand out flyers and various coupons/punch cards.
This advertising strategy will be highly utilized during rush hour times, when many people are
passing by the store to and from their way to work. Nutripet will also offer a frequent customer
card program for Saturday pet classes. Once customers attend five Saturday classes with their
pets, a free class will be earned. The intent of these punch cards are to attract repeated
participation, in the hopes the customers will develop a routine and continue to come back, even
after they have received the fifth class free.
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Price

As NutriPet is a speciality cat a dog store, located in the heart of Manhattan, prices will
be slightly more expensive than your typical chain pet store, such as Petco or PetSmart in a rural
area. However, the prices will still be affordable in terms of cost of living and customer base.
Many of the prices at NutriPet were based off of the average price of items sold at the PetSmart
in the surrounding Manhattan area. In terms of cat and dog food, we have 15 different brands in
order to fit a wide customer base, as well as, their different budgets. For an affordable price,
NutriPet customers are guaranteed high quality pet food, with nutritious ingredients. For most of
the items, supplies, and classes, there will be a 35% markup on sales price in order to help
NutriPet make a profit during their beginning years of business. In order to establish a strong
customer base, strategic promotional methods will be used. This will give an incentive for
people to stop by NutriPet, and to discover the high quality products and services that are
provided.

Market Segmentation

Manhattan, New York has a population of 1,563,897 people, 57.4% of whom are nonHispanic white and 15.6% Blacks. About 11.3% of the population is Asian and the remaining
15.7% is split between Multiracial and Other categories. Of the residents, 53.1% are females
and 46.9% are males (6). Manhattan is one of the most densely populated of New York Citys 5
boroughs. Manhattan residents are highly educated with 86.0% having a high school diploma
and 58.9% having a Bachelors degree or higher (3). The median household income is

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$69,659 and with only 17.7% of the population living below the poverty level. Only 5.2% of the
population is under 5 years old, 14.7% is under 18 years old and 14.4% is under 65 years old
(3).

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This means that 65.5% of the population is between the ages of 18 and 65. This shows that there
is a relatively broad range of ages living in Manhattan, with an almost equal amount of young
adults, middle age and older adults. Manhattan is among the worlds major commercial, financial
and cultural centers. It is the heart of the Big Apple. Its iconic sites include skyscrapers such
as the Empire State Building, Times Square, Central Park, Rockefeller Center and the theaters of
Broadway. These residents are amidst constant entertainment, shopping centers and sites of
historical interest. Due to these high attraction sites, tourism is crucial to the businesses of
Manhattan. Consumers in this urban environment are attracted to luxury, highend products.
During the day, Manhattans population is said to nearly doubles with those taking day trips,
tourists, students and commuters (4).

Target Market Identification

NutriPets target customers are young adults and middle aged individuals between the
ages 1850. This captures the majority of the population of Manhattan, with 65.5% of individuals
between the ages of 1865 (3). More specifically, the target audience includes adults ages 1865
who are making Manhattans median household income of $69,659 or above. For individuals
between age 1825 and those below age 18, this target will fall on their parents who are most
likely the providers for their pets needs. Based on statistics about this audience, it can be
inferred that Manhattan residents hold a majority of the wealth of New York City since the
normal median household income level of New York is roughly $10,000 less (3). NutriPet has
strived to reach an audience interested in the health of their pets by targeting pet nutrition and
exercise. This concept involves healthy foods, products and services which generally cost more
than products and foods with filler ingredients, byproducts and cheap ingredients. However,
NutriPet also strives to give the best deals to their customers and chooses a wide range of
products that can suit those near the median household level income and above. Over the past
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four years, there has been a growth of 17% in organic and natural pet food products. The market
in Manhattan, New York is a part of the growing trend showing increased regular spending on
their pets (5). The audience between ages 1865 are more aware of the growing information
about quality pet care. Individuals over age 65 are not as likely to spend on their pets due to a
lack of understanding about recent trends towards pet health and nutrition. Since the
socioeconomic status appears to be high, and there is a growing market for organic and natural
pet food, NutriPet is excited to reach an audience that needs their services. NutriPet will
specifically be reaching out to dog and cat owners. The location in the city will draw owners
who see the value of indoor classes where their pet can get regular exercise. As well as
Manhattan residents, NutriPet is here to serve the large number of tourists and commuters who
enter the streets each day. However, the target audience is mainly geared towards creating
captive
clientele by offering specialty, quality products and knowledge to customers that they wont find
anywhere else in Manhattan, New York.

Marketing Plan

In order to gain interest in NutriPets services and a customer base, NutriPet will offer a
grand opening special of 50% off for the first week of services and classes! Customers can try
different classes and see what is best for their pet. The customers who are involved in classes
will be more likely to return to NutriPet for the rest of their pets needs as well. They will
hopefully become NutriPets regular clientele and customers. In order to spread the word about
NutriPets services, the store will use social media outlets such as Facebook and Instagram.
Employees will capture photos from events, classes and daily shopping experiences with pets
and owners to post on social media with #NutriPet. This will portray the environment of NutriPet
to draw interest to customers both new and old. NutriPet will also team up with local stores such
as Whole Foods to place flyers in their store. The owners of NutriPet had a pet training and
walking business in Manhattan before they opened NutriPet, so this clientele will most likely
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continue to use NutriPets services. They will also be a valuable source of advertisement by
spreading positive wordofmouth about their experience with services through NutriPets owners.
In addition to advertising, NutriPet has plans to offer promotions and sales. NutriPet will
send out regular coupons to entice customers to try one of their brands of specialty pet food. In
addition, once a week they will have dog and cat taste tests so customers pets can try the food
before purchasing. NutriPet will offer a frequent customer card for Saturday pet classes to
increase repeated participation. Once customers attend 5 Saturday classes, they are eligible to
receive a free class.

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