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MKTG1268 Example New Service Proposal 3

Awesome Pawsome (AP) is introducing a One-Stop Pet Care service that enhances its mobile grooming offerings by providing veterinary services and pet products at customers' preferred locations in Singapore. This innovative service aims to address the needs of pet owners, particularly those without personal vehicles, by offering convenience and a unique customer experience. The business will adopt value-based pricing and a comprehensive marketing strategy to increase brand awareness and customer loyalty while ensuring operational efficiency through a well-designed service blueprint.

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0% found this document useful (0 votes)
3 views34 pages

MKTG1268 Example New Service Proposal 3

Awesome Pawsome (AP) is introducing a One-Stop Pet Care service that enhances its mobile grooming offerings by providing veterinary services and pet products at customers' preferred locations in Singapore. This innovative service aims to address the needs of pet owners, particularly those without personal vehicles, by offering convenience and a unique customer experience. The business will adopt value-based pricing and a comprehensive marketing strategy to increase brand awareness and customer loyalty while ensuring operational efficiency through a well-designed service blueprint.

Uploaded by

chrisjohnatan1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 34

Executive Summary 4

Introduction and Business Overview 5


1.1 Background of Awesome Pawsome 5
1.2 Proposed New Idea: One-Stop Pet Care 5
1.3 Positioning 5
1.3.1 Target Market 7
1.3.2 Competitive Advantage 8
1.3.3 Unique Selling Point 8
1.3.4 New Service’s Pitch/Appeal 9

Product Analysis 9
2.1 Core Service 9
2.2 Enhancing Supplementary Service 9

Pricing and Revenue Management 11


3.1 Pricing Strategies 11
3.1.1 Pricing Tripod 11
3.1.2 Cost Reduction (Monetary and Non-Monetary) 12
3.1.3 Rate Fences (Physical and Non-Physical) 13
3.1.4 Pricing Structure 14
3.2 Revenue Management 15

Place / Physical Service Environment 16


4.1 Place 16
4.1.1 Brick and Mortar Channel 16
4.1.2 App 17
4.1.3 Russell's Model of Affect 19
4.2 Physical Service Environment 20
4.2.1 Ambient Condition 20
4.2.2 Signs and Symbol 20
4.2.3 Appearance of Awesome Pawsome Staff 20

Promotion and Education 21


5.1 5Ws Table 21
5.2 IMC Message 21
5.3 IMC Objectives 21
5.4 Communication Challenges 22
5.5 Media Plan 22
5.6 Online Platforms 23
5.6.1 Company Website 23
5.6.2 Social Media 24
5.6.3 Public Relations 25
5.7 Traditional 25
5.7.1 Loyalty programmes 25
5.7.2 Out-Of-Home 26

6. Process 28
6.1 Service Blueprint 28
6.1.1 Act 1: Introductory Scenes 28
6.1.2 Act 2: Delivery of Core Product 29
6.1.3 Act 3: The Drama Concludes 30
6.2 Fall Points and Poka-Yokes 31

7. Conclusion 32

References 33
Executive Summary

Awesome Pawsome (AP) aims to address the key demands of pet owners who greatly
regard the well-being of their beloved pets with utmost care. The premium tailored service
enabled Awesome Pawsome to acquire many loyal customers over its competitors. The
proposed new idea further enhances the services offered by Awesome Pawsome by not
limiting it to specific location, enhancing and offering a fresh customer experience that has
yet to be explored in Singapore.

With the new integrated service, Awesome Pawsome is able to meet the demands of a
broader spectrum of customers, gaining competitive advantage over its competitors in the
Singapore market. Awesome Pawsome’s target market with integrated new service cannot
be determined by age group, but rather the significance and the quality-of-service
customers demand in the market.

Through analysing the benefits sought by different age groups, the proposed new idea will
address the needs of customers and streamlines Awesome Pawsome operations. The
adoption of Value-based pricing for its new services will also be beneficial to Awesome
Pawsome price positioning in the industry. Taking into consideration cost reduction and rate
fences to strengthen their pricing structure, Awesome Pawsome will have better
management over their financial resources to generate revenue for the business.

The physical environment will also be a key factor in Awesome Pawsome operation set-up.
From the overview of the mobile van floor plan to the detailed professionalism of the staff
outfit, every careful consideration of the physical aspect will determine how the business will
be perceived by the customers. Having a well consolidated integrated marketing
communication plan will also help to build a strong relationship with existing customers and
attract prospective customers, through the implementation of relevant marketing strategies
which will effectively increase brand awareness of Awesome Pawsome.

Finally, the inclusion of the service blueprint will highlight the service process that
customers will experience with the new service of Awesome Pawsome. Valuable feedback
will be obtained with improvements to be made by identifying fail points and poka-yokes,
which Awesome Pawsome can use to meet the expectation of customers and increase
overall satisfaction level customers have towards the brand.
1. Introduction and Business Overview

1.1 Background of Awesome Pawsome


Awesome Pawsome (AP) is a mobile house-call pet grooming service provider, established
in 2012 by Ian. The business focuses on the well-being of pets, providing services while
minimising stressing inducing and health risk factors (Awesome Pawsome n.d.).

The price range of packages provided ranges from $90 to $160, depending on the size of
the pet and the quality of the package. There are various add-on services available for
customers based on their pet’s needs such as pest treatment or removal, nail clipping, bath,
and drying. The target market is pet owners who care greatly about their pet’s physical and
mental well-being.

AP has positioned itself to be a service provider, promising its customers the top-quality
care for their pets’ well-being.

1.2 Proposed New Idea: One-Stop Pet Care


One-Stop Pet Care falls under the category of service processing where consumers are not
required to be present physically while the specialists tend to their pets. One-Stop Pet Care
provides most necessary services a pet requires such as grooming, vet attendance, and pet
products readily available for purchase at the doorstep or any specified location in
convenience of the consumer on a van.

Consumers can be creative and not only request for service in their residential area, but
anywhere such as national parks, beaches, or even photoshoot studios.

1.3 Positioning
In Singapore, owning a personal vehicle is not a necessity with sophisticated public
transport available at ease of use. The Inconvenience of commuting with pets is a common
issue faced by pet owners without private vehicles as public transport prohibits
accompanying pets for owners without special needs such as a guide dog. Consumers
without a personal vehicle will find attending to their pet’s needs inconvenient.

Attending to a pet's needs is tedious, where the owner has to accompany the pet to a
specific location, queue for their turn, and return to bring the pets back which may consume
2 to 3 hours on average.

One-Stop Pet Care’s purpose is to solve the mentioned issues, and cater to owners who
are looking to provide care for their pets whenever and wherever deemed necessary. The
target customers are millennials and generation x. According to research conducted by
Statista in 2022, the ownership of pets by the age group is evenly spreaded out at an
average of 34% for people under 55 (Statista 2022).
Figure 1: Pet Ownership in Singapore by Age Group

1.3.1 Target Market


1.3.2 Competitive Advantage

Figure 2: Awesome Pawsome Positioning Map

Some key competitors identified are Pawpy Kisses, Hanis the Groomer, Likeable Pets and
Doggylicious Studio. Each competitor has its unique speciality service such as pet delivery
service, pet bubble bath, and oral care.

In comparison to the competitors, AP, with its integrated new service, will be the first of its
kind where the customers are offered a full grooming and veterinary service at any
preferred location. Variety of pet goods such as pet food and snacks made available for
purchase. The new service, One-Stop Pet Care, does not only provide pet well-being
focused service, but also enhances the customer experience and makes the time-
consuming service adjustable to their daily routine.

1.3.3 Unique Selling Point


The key unique selling point of AP will be the convenience of available service. Resources
such as water and electricity will be drawn for use from the fully equipped van, and no mess
for cleaning will be left in the residence after the service. Furthermore, AP will be the only
pet grooming service in Singapore that offers a full-flexible service to its customers, not
limited to locations unlike traditional grooming service.
1.3.4 New Service’s Pitch/Appeal
Service with a ‘fully’ mobile concept has not been introduced in Singapore, making AP the
pioneer mobile service provider. While the traditional attraction of service was focused on
the pet’s well-being, the enhanced service offered by AP goes further by satisfying the
convenience of customers on top of the pet’s well-being.
2. Product Analysis

2.1 Core Service


The primary service provided by AP consists of professional grooming, basic veterinary
service at preferred locations by groomers. The specified groomers would be able to tend to
the pets while minimising the stress induced. One-Stop Pet Care improves the initial core
service provided by AP by bringing the service to customer’s preferred location to further
enhance customer experience. In addition to expanding the availability of service, pet
products such as food, snacks, and medications will also be available for purchase on the
van to ensure the needs of the customers are satisfied with every visit.

2.2 Enhancing Supplementary Service


Looking at Figure 2, AP would be able to design their services and meet customers’ needs
and add value to the services that they provide.

Figure 2: Flower of Service Concept

Enhancing Description Why?


Supplementary
Services

Information - Information such as price, - Information regarding the


customer activities, products would be more
purchase history would be more accessible, and this
stated within the reduces labour costs
application that is needed to manage
the information (e.g.
- Company business hours booking dates), as
and other information such compared to the previous
as their preferred groomers system through
availability, billing and telecommunication
payment and consultations
- All information regarding
- Receive latest news about the customers and would
AP, and promotions be easier to manage and
sorted

Safekeeping - Catering a specific - The pet owners that are


groomer to each customer, busy would be able to pick
pets are cared with utmost up their pets, opt for a care
care package with hourly
- Pets would be able to be in payment
the care of the professional - Able to ensure their pet is
groomers in the one-stop in safe hands until the they
van are available to pick them
up.

Exceptions - Online feedback form after - Customers would be able


each service, handling of to rate their groomers and
complaints, suggestions help the company improve
and compliments via the through online feedback.
application
- Company would be able to
improve and understand
their customers wants and
needs better
3. Pricing and Revenue Management

3.1 Pricing Strategies

Figure 3: Pricing Tripod

3.1.1 Pricing Tripod

AP will be adopting value-based pricing under the pricing tripod (Figure 3) as the pricing
strategy for the launch of new add-on services and products, pricing them in correlation with
the perception of value and benefits that consumers are willing to pay for. The value-based
pricing will be vital in AP price positioning in the industry, allowing them to increase brand
exposure and further expand their mobile pet services.

The One-stop-mobile pet services that AP are launching are goods and services that are
currently not new to the industry, specifically designed to meet customer needs and ease
their convenience. The inclusion of a new application allows customers to choose the
services they would like to bundle on top of the existing system, enhancing the service and
creating opportunities to attract potential customers. This unique service in the market is
viable for AP to set the prices of their goods and services at a relatively higher price.
3.1.2 Cost Reduction (Monetary and Non-Monetary)
3.1.3 Rate Fences (Physical and Non-Physical)
3.1.4 Pricing Structure

AP will be pricing the new One-Stop Pet Care services based on bundle prices of
combinations of core services offered. Customers are given customization to bundle the
services they would like for the appointment, which generates rate fences that consumers
might find more value for money if they choose to do. Bundle combinations allows flexibility
in the services, giving consumers cost-effective price choices and differentiating themselves
from similar services offered by their competitors. Rate fences are also used to segment pet
owners and justify why they pay differently for using similar services of the business.

Figure 4: One-Stop Pet Care New Customizable Options


3.2 Revenue Management

Figure 5: Awesome Pawsome Monthly Profit and Loss Statement of One-Stop Pet Care
The inclusion of One-Stop Pet Care combination of core services on top of its existing
mobile house-call service has created revenue from different options that customers have
purchased, including Pets goods, Add-ons, and Ala Carte services. Clear cost
measurement of the operating expenses has also helped the business to determine its
expenditure, which allows AP to determine its net profits and forecast its future demand
while adjusting costs accordingly.
4. Place / Physical Service Environment

4.1 Place
The service will be distributed through a mobile van to any preferred location of the
customers. Customers will be offered a unique experience with exceptional service by
professionals, equipped with elegant, first-class equipment for full grooming, veterinary
service, and retail supplies available for purchase by competently trained personnel for a
satisfactory customer experience.

4.1.1 Brick and Mortar Channel


The new service will be operated in a van equipped with a generator, water source, and
drainage system to cater to all the necessary grooming and veterinary services.
Professionally equipped vans and expertise of the staff is crucial for satisfactory service
provided to the customers and the safety of their pets. Additional conducive space for pets
can also be established for customers who may consider delaying the collection of their
pets.
Figure 6: Mobile Van Floor Plan

4.1.2 App

Within such a niche market targeted to customers with pets, the competitive environment
requires AP to continuously improve its services. With technology advancements and
changing consumer lifestyles, companies are starting to adapt and further upgrade
themselves to cater to the consumers to remain successful within the industry. An approach
that can be seen, would be to understand consumer needs and to differentiate themselves
from their competitors. For AP to improve, we had proposed to incorporate an application to
improve customer interaction and convenience.

Figure 7: Awesome Pawsome Application


Figure 8: Awesome Pawsome application and service booking

Through the use of the application, reservations and payments can be made faster, easier,
and more efficiently. Customers could book their sessions based on what services would
cater best to their pets through the application.
Figure 9: SMS Alert for booking confirmation and online feedback interface

Additionally, customers would also be able to view the availability of their preferred
groomers to reduce overbooking and avoid miscommunications that may occur. This would
also shorten the old booking system where AP from a 3 to 7 days confirmation to a fast 1-
day SMS and Email confirmation.

4.1.3 Russell's Model of Affect

Figure 10: Russell’s Model of Affect


4.2 Physical Service Environment

4.2.1 Ambient Condition

The interior of the van will dominantly be metallic white for a professional and clean
impression with minimal scent of disinfectants used for keeping the area hygienic.

Figure 11: Example of Mobile Van

4.2.2 Signs and Symbol

Signs and symbols can assist the customers to find the van in a parking lot with
convenience. AP’s logo will be printed on the van for a clear indication for customers to spot
the van.

4.2.3 Appearance of Awesome Pawsome Staff

Overall credibility of the service may differ depending on customers’ first impression
(Hirshleifer et al. 2021). Clean black aprons, neat uniforms, and refined looks of AP staff will
improve the brand image.

Figure 12: Mock Up of Staff Apron


5. Promotion and Education

5.1 5Ws Table

5.2 IMC Message


AP’s IMC message “One-Stop Pawtastic experience” aims to provide convenience to
customers by offering a wide range of services with no location constraints.

5.3 IMC Objectives


1. Increasing Brand awareness by 15% in the first quarter of 2023 by increasing
marketing efforts.
2. Boost loyalty among existing customers and build relationships with prospective
customers.
5.4 Communication Challenges
Generality
Consumers may not be able to differentiate AP from competitors such as Pawpy Kisses,
Hanis the Groomer, Likeable Pets and Doggylicious Studio. AP will incorporate a function
on their website where customers will be able to see a live count of the number of orders
AP has fulfilled up until the present day.

Non-searchability
Customers may have reservations about the effectiveness of one-stop pet care since its
concept is relatively new. In order to tackle the challenge, AP’s website and app will include
a review section. Customers will be able to post their reviews upon completion of the
service. By doing so, they will be able to reduce uncertainty for potential customers. Their
website also includes certifications obtained by the groomers.

Abstractness
AP will be showcasing the before and after photos of the pets on their social media
platforms and website. When permitted, they will also post photos of satisfied customers
with their freshly groomed pets.

Mental impalpability
As one-stop pet care is a new concept, customers may not be familiar with it. Therefore, AP
will be uploading a step-by-step video guiding the customers through the booking and
grooming process to help customers better understand our service and grasp the idea of
our concept.

5.5 Media Plan


The Media Plan is constructed to increase customer loyalty and brand visibility of AP.

The launch of Mobile Pet Care, pet food, and AP App will launch on 1st December 2022,
1PM. Marketing efforts will begin 3 months before the launch to establish sufficient
exposure.
Figure 13: Media Plan

5.6 Online Platforms

5.6.1 Company Website


According to the State of Marketing Trends Report (2022), websites are reported to be the
second most used channel for B2B and B2C brands. Majority of website traffic comes from
direct traffic, which accounts for 22% of website traffic sources. This indicates that
customers tend to visit the brand’s website to gain more information on the products or
services offered. Therefore, we will be utilising our official website to provide sufficient
information to customers.

Search Engine Optimisation will be utilised during the promotional period to increase the
website’s visibility and generate more web traffic. Research has shown that 75% of users
never scroll past the first page of search results (Lieberman 2020). Utilising the right
keyword and headlines will help AP appear higher in search engine results, increasing
conversion rates.

Fig
ure 14: Keywords Suggestion
5.6.2 Social Media
The usage of social media has increased exponentially over the past few years, with over
5.30 million users in Singapore (Kemp 2022). Among all marketing channels, social media
dominates with 44% (Hubspot 2022). The use of social media allows brands to reach out to
their existing and potential customers and develop top-of-mind awareness. AP will also be
collaborating with Pet Influencers. An influencer's engagement rate can tell you how well
their content attracts their followers and how engaged they are with them.

Instagram & Facebook


According to research, 51.5% and 67.2% of people living in Singapore uses Instagram and
Facebook respectively (Kemp 2022). 85% of the users on Instagram are of age 16 to 24
(Tan 2021). As for Facebook, majority of their users are of age 25 to 34 (Tan 2021). Hence,
Facebook will be a better platform to reach our target market compared to Instagram. AP’s
Instagram feed posts and stories will be posted once every two days while our Facebook
posts will be posted once daily. We will also be utilizing the ‘Boost’ function on both
platforms to reach a larger audience and increase the engagement rates.

Figure 15: IG Story Figure 16: Facebook Post Figure 17: Instagram Post

Taking into account the target audience of AP, Lomodoggies, a pet influencer, will be
considered for collaboration. The account has been featured in multiple articles due to its
rapid growth during the pandemic. In addition, they have collaborated with several other
creators and endorsed various pet brands. Considering their content, pet lovers or owners
would make up the majority of their audience.

Based on an analysis of Lomodoggies' Instagram page, they do have a relatively good


engagement rate of 1.61% (Figure 18) as compared to other accounts. They have 25.1k
followers and an average of 429 likes and 17 comments per post. It is likely that many
people will trust their recommendations due to their online presence.

Figure 18: Engagement rate of Lomodoggies

5.6.3 Public Relations


As part of AP’s PR campaign, they will engage a PR agency to invite journalists with Pet
Care Industry presence. It is crucial to ensure that their audience aligns with our target
segment.

TheSmartLocal and Mothership.sg are two of the media publishers AP would like to work
with. One reason is that several articles about the Pet Industry have been posted on their
website. In addition, TheSmartLocal website receives 1.8 million visits but has a bounce
rate of 66.68% (SimilarWeb, 2022). The Mothership.sg website receives 8.7M visits and has
a bounce rate of 66.20% (SimilarWeb, 2022). Both of their audience mainly consists of 25 -
34 year old, which aligns with AP’s target segment. Due to their reputation, they will be
considered a reliable source to seek recommendations from by many. They will be provided
with Press Kits that will be emailed to them before the launch.

5.7 Traditional

5.7.1 Loyalty programmes


In order to build long term relationships with customers and increase customer retention
rate, AP will be implementing a tiered loyalty programme. As seen in Figure 19, customers
will be eligible for Silver, Gold, or Platinum membership based on spending. The loyalty
programme will be trackable from the App. Customers will be registered for the silver
membership upon purchasing our service and to be upgraded as their spending increases.
For every dollar spent under AP, 1 point will be accumulated, and customers will be able to
redeem various rewards as seen in Figure 20.
Figure 19: Loyalty Programme

Figure 20: Point redemption system

5.7.2 Out-Of-Home
AP will be advertising in MRT stations such as Yishun, Ang Mo Kio, and Dhoby Ghaut as
these are few of the MRT stations with the most traffic (Zerlina 2016). This will provide
visibility for their new services offered as it reaches a wide range of potential customers.
The ads will not be placed for a long period, as commuters who see them frequently will
stop paying attention to them.

Figure 21: Transit Ad


6. Process

6.1 Service Blueprint


A detailed process of the customer using the Mobile One-Stop Pet Care service will provide
AP with a comprehensive understanding of the services that they can improve to ensure the
flow of the service is executed properly. The service blueprint will be organised into the
following three acts.

6.1.1 Act 1: Introductory Scenes

Figure 22: Act I Frontstage of Service Blueprint


Figure 23: Act I Backstage of Service Blueprint

6.1.2 Act 2: Delivery of Core Product

Figure 24: Act II Frontstage of Service Blueprint


Figure 25: Act II Backstage of Service Blueprint

6.1.3 Act 3: The Drama Concludes

Figure 26: Act III Frontstage of Service Blueprint


Figure 27: Act III Backstage of Service Blueprint

6.2 Fall Points and Poka-Yokes


7. Conclusion

In conclusion, the purpose of the new Mobile One-Stop Pet Care service will add definite
value to the existing service that AP has been offering. The new service that has been
introduced will create a brand new service environment the pet service industry has never
experienced, ensuring AP provides their customer with a convenient platform for their pets.

The new service will generate favourable profits for AP, and increase brand awareness
while attracting more customers to try out the service. An enhanced loyalty program will
also improve customer retention, with social media platforms and campaigns to ensure
ample communication and updates with customers. The Mobile One-Stop Pet Care service
will prove to be the best selection that customer needs and wants for their pets are met,
bringing value to the overall experience with AP.
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