Part 1:
Business Overview and Opportunities
A. Business background
When talking about dogs, “man’s best friend” is the most familiar phrase that pops up into our
minds. Pets are said to go into a "relationship of mutualism" with their owners. Pet owners believe
that they do not just give; yet in addition they get love and affection from their pet dogs (Science
Direct, 2008). However, the responsibility of keeping a pet is very challenging. The American Society
for the Prevention of Cruelty to Animals (ASPCA) released an article regarding the general dog care.
According to ASPCA, the basic needs of dogs such as feeding, proper shelter, proper handling,
exercise, vaccinations, licensing and identification are needed to live a harmonious life with their
owners.
Most of the dog owners consider their pets as a part of their family already. Those people have
various reasons for keeping a pet. In some instances, people keep dogs for companionship. A study
from State University of New York at Buffalo stated that pet helps married couples to grow closer
and respond better to stress. Pets can also be a prescription to a happier and healthier life (The
Nation’s Health, 2011). Other reasons of people in keeping dogs are because of their adorable
characteristics and some keep dogs for security purposes.
Dogs can be trained so that they can easily bond with us in our human-built dwellings. They can
also be trusted to act appropriately around other people and in public. Dog owners love taking their
dogs with them to the malls or parks but at some point, they have to leave their pets outside the
establishment whenever they need to go inside the mall building or inside the restaurants. One of
the dilemmas of dog owners is that their beloved dogs are not always welcome in some places.
Thus, I saw an opportunity to provide a solution to their dilemma and came up with the idea of
establishing a pet sitting business named “Pawvenue” to help the dog owners with their dilemma.
B. Business Opportunity
While there is no actual census for the number of dogs in the city, it is observable that there a
lot of Filipino that has their own pet dog. There are also those who own more than one dog. This
would make the total population of target market large enough. Furthermore, though there are
quite a number of pet salon, there are only few shops with a pet-sitting service. Thus, the
competition would not be big and stressful. Moreover, along the Santa Rosa city, especially in the
vicinity of Solenad, there are numerous shops and restaurants that doesn’t allow pets. Some
Staycations in Tagaytay or swimming pools in Pansol, Calamba may also forbid dog pets. So a pet-
sitting hotel may answer the problems and worries in leaving their beloved pet behind. A trusted pet
hotel that would look and care for their dogs while the costumers are doing their personal errands.
C. Business Specification
a. Business Title: “Pawvenue”
b. Business Description:
The proposed business would be named as “Pawvenue”. This is a pet sitting business,
which primarily focuses on looking after your dogs. Its main purpose is to provide a shelter for
a given period of time while their owners are inside the mall, restaurants, or even out of
town. Through this project, dogs could wait happily in “Pawvenue” with other dogs. The
business wants to make the dog owners feel that their pet is in a happy, comfortable and safe
place while they are away, busy, and having fun on their own.
c. Business Logo:
Figure 1. Business logo
d. Business services:
Dog Day Care: It is a daytime or overnight care in a safe and pet-friendly ambiance
together with other dogs.
Pet Portraits: Dog owners may avail pet portrait whenever they wanted to capture
memorable moments of their adorable pets through photographs,
Grooming: This includes dog bathing, blow drying, tooth brushing, fur cutting and
styling, nail clipping, and ear cleaning.
Merchandise: The business would offer dog treats, which the customers may avail.
Part 2:
Business Marketing
A. Industry and Competitive Analysis
I. Industry Analysis
The pet industry has seen amazing growth over the past twenty years and many
product and service pet-related companies, especially those in the forefront, have garnered
amazing growth and sales. In addition, small and medium sizes companies have also been
able to launch and grow into sustainable pet businesses over the past years surpassing
expectations. (Pawsible Marketing, 2018)
According to Future Market Insight (2020), global pet care industry may display a
higher demand in the upcoming years. The professional services for such industry is highly
sought off as pet owners realizes more the importance of grooming and day cares. Products
are also mass produce to produce a supply which is enough to balance the outburst demand
of the world. (Retrieved from [Link]
Based on Pawsible Marketing and Future Market Insight, pet industry is experiencing
an upturn in its market condition. Pet related business is becoming a trend because of the
increasing acceptance for pets. The articles show that the scope of the potential target
market is expanding.
[Link] Analysis
According to Pawsible Marketing, pet industry grows every year. Pet industry has
an intense completion due to the number of competitors but it is still not saturated which
leads to a healthy competition.
To remain successful in this competitive industry, it is important to be aware of any
new competitors entering your market. (Barkleigh Productions, 2012). While being aware of
the competitors, it is also necessary to be aware of the business’ own competitive
advantages and use them to strive in the business industry.
The competitive advantage of the business is that the business is promoting its cage
free kennels along with its homey vibe that would give both the dogs and dog owners a
relaxing ambience, which differentiate the business from its competitors near the area.
Pawvenue would use cage free kennels to add up with its pet-friendly atmosphere and to
lessen the stress levels of dogs for they can roam around their little spaces. The ambience is
relaxing and “Instagrammable” so pet owners can capture photos of the place and their pets
and post them online. In addition, the overnight care provided is unique to the area as most
of the competitors only provide a day care service. The proponent also plans to hire skilled
and competitive personnel, who would deliver the quality services to the customers. The
materials that would be used are also top quality products.
B. Target Market:
The target market of the business would be the dog owner residing Santa Rosa city,
especially those dog owners who frequently visit Solenad Ayala Malls. The primary market of
the proposed business is the dog owner from Sta. Rosa who frequently visits and brings their
dogs in Solenad. The kind of segmentation the proponents would use to divide the market is
geographic and behavioral.
The characteristics of the potential market is divided into following:
• Affluent dog owners – Dog owners who have high disposable income and are willing
to spend for their dogs
• Middle class dog owners – These are dog owners with average income who are
willing to spend for their dogs
• Potential customers - These are passionate dog owners who are not frequent mall
goers but can be our potential customer.
C. Marketing Message: “Leave your dog with Love”
D. Marketing Strategy (7 P’s)
1. Product
As stated above, the business’ main service is the pet-sitting of the pets. Along it,
alternative services like grooming and pet portrait are also done to ensure the total needs of
a pet owner in caring for their dogs. The business aims to be a go-to pet hotel and salon that
would help them in their every pet needs. Thus, it is part of the care to monitor the medical
attention needed by the dogs like vaccination and supplements. Advices and Tips are also
provided to further provide the owner knowledge in caring their pets. As an insurance, the
business would be liable in anything that would happen to the pet as long it is proven to be
the stores fault. In this manner, the owner would get the trust of the costumers.
2. Price
Dog Daycare Prices
Small dog 70.00 Php per hour
Medium dog 80.00 Php per hour
Large dog 170.00 Php per hour
Grooming Price List
Full Groom Basic Groom
Small dog 650 400
Medium dog 700 450
Large dog 750 500
For the pricing, along with the service fee, the costumer may need to pay for additional
charges. This additional charges may include the insurance fee for the dog, overtime
payment, and damages repair fees. Meanwhile, the costumers may also register and pay a
one-time registration fee. This would enable the costumer to avail the overnight pet-sitting
service. In addition, discounts and promos are also provided for those who registered.
3. Promotion
Promotions would be made to give awareness to the dog owners around the area
and for the dog owners who doubt to bring their dogs in Solenad. The proponents would
promote the business through the use of social media, leaflets, and tarpaulins. Social media
would be used for online advertisements. Facebook page, Instagram and an official website
would be made for the promotion of the business. Leaflets would be given to the people
around Solenad on the first week of the launching of the business. Tarpaulins would be
placed around the Solenad area so pedestrians would be informed about the new business.
Loyalty card would also be given to customers.
4. Place
Pawvenue would be located at Solenad 3 Ayala Malls, Sta. Rosa Laguna. The proponents’
main reasons for choosing Solenad as the location of this project is the rapid development of
the area and increasing volume of people. Solenad is a Strip Mall, an open-air shopping
center where the stores and boutiques are arranged in a row with a sidewalk in front and is
usually located on a busy main road. A lot of pet owners bring their pets along in this place
because of its beautiful ambiance and large sidewalks. The number of customers is also
increasing because of the popularity of the place and its continuous development according
to Ayala Management. By establishing this business in this area, customers who need
someone to look after their pets while doing their personal errands may easily find
Pawvenue.
5. Packaging
As the business would sell merchandize such as treats and the likes, it would comply to
the no-plastic policy of the local government. Thus, the product would be packaged with a
paper bag with a branded logo printed along it.
6. Physical Evidence
Physical evidences are tangibles, which help the customers to assess the services
provided. Physical evidence is the main competitive advantage of the business. The
proposed business would have a homey ambience that would add relaxation to customers
and to their dogs. The proposed business would have a blue and violet color scheme with
white wooden fenced kennels. The business is promoting a cage-free kennels to avoid
stressing the dogs, which differentiate the proposed business from its competitors. The
proposed business is also promoting an “Instagrammable” ambiance to attract more
customers.
7. People
The owner would hire competent people with the right experience and skills to
perform the desired services of the proposed business. The business would hire four people;
these are two dog groomers, assistant dog groomer and a cashier staff. Each position is
required to have specific skills that are suitable for the job. The proponent would make sure
that the employees understand the goals and objectives of the business to help them serve
the customers better. Most importantly, the costumer is the priority of the business so any
feedback is acknowledged and will be promptly acted upon.
E. Budgeting
Table 1. Marketing Cost
Quantity Marketing Cost Budget
100 Loyalty Cards ₱500.00
5 Tarpaulins ₱500.00
100 Flyers ₱800.00
100 Branded Paper Bags ₱1000.00
N/A Facebook Booster ₱795.00
TOTAL ₱3,595.00
Part 3:
Business Operations
A. Man or Manpower
As the business is only a small scale, it would follow a simple line type organization
structure that composed of only 7 people. 3 people for management and 4 people for
operations personnel.
a. Management
Position Job Description
The person in charge in monitoring all financial transactions
Financial Head
such as book keeping and fund sourcing.
The person in charge in overseeing all marketing activities such
Marketing and
as promoting and advertising. He will also be in charge in
Operations Head
managing all day to day operations.
General Manager will be in charge in overseeing all the activities
General Manager
and operations of the business.
b. Other Employees
Job Title Task/Responsibilities
Maintaining dogs’ physical appearance which includes:
Dog Groomer Brushing, Cutting the fur, Clipping nails, Cleaning ears,
Bathing, Drying, and Styling the fur
Look after the dogs in the day care area and assist the dog
Dog Groomer Assistant
groomer.
Assess customers, Receives payments, Issue receipts,
Cashier
Inputting of customer data
c. Salary
The salary computed is only for personnel because managerial position may be
handled solely by the owner.
Job Title Monthly Salary Annual Salary
Dog Groomer ₱15,000.00 ₱180,000.00
Dog Groomer ₱13,500.00 ₱162,000.00
Assistant
Cashier ₱12,000.00 ₱144,000.00
d. Suppliers
Since the business will offer service, there would be no distributor and
supplier involved.
B. Method or Process
As the customer enters the store, the cashier staff would greet and accommodate
the customer by handing the services price list. Once the customer finally chose a service,
the cashier staff would assess the profile of the dog. Then the employee would take the dog
and hand it over to the assistant groomer. The chosen service would proceed. Then
employee would then capture 10 shots of the dogs in the photo booth area for the pet
portrait. After several hours the owner would return for their dog. Before handing the dog
back to the owner, the groomer would put a dog powder for the final service. Then the
cashier would show the photos taken and ask them if they are willing to avail them. The
customer would pay for the service rendered then leaves.
C. Machine- Equipment and Space
Machine
ESTIMATED
QUANTITY EQUIPMENT
COST
All-in-one
1 Computer Set ₱40,000.00
(HP)
CAMERA
1 ₱15,000.00
(SONY)
4 CCTV ₱9,700.00
50W LED
1 Flood Light ₱1,200.00
(White)
TOTAL ₱65,900.00
Equipment
Quantity EQUIPMENT COST ESTIMATED COST
Pet Fur Dryer Grooming
2
Blower (2800W)
₱6,050.00 ₱12,100.00
Professional Pet Hair
Trimmer Animals
2 Grooming Clippers Dog ₱1,519.00
Hair Trimmer Cutter
(35W) ₱3,038.00
Heater (JOVEN S510
Instant Water Shower
1 ₱3,900.00
Heater Single Point
3300W) ₱3,900.00
2 Grooming Shears ₱1,772.00 ₱3,544.00
Toe Nail Clipper for
dogs (Grooming Cat
2 ₱400.00
Dog L Nail Clipper Pet
Claw Trimmer c - intl) ₱800.00
Hair Brush for dogs (Pet
2 ₱220.50
Slicker Brush Comb Pet ₱441.00
Hair Shedding
Grooming Rake Comb
Brush)
1000W JK-8 Portable
1 ₱998.00
Vacuum Cleaner ₱998.00
Hair Brush for dogs (Pet
Slicker Brush Comb Pet
2 Hair Shedding ₱220.50 ₱441.00
Grooming Rake Comb
Brush)
Total ₱25,262.00
Furnitures
QUANTITY FURNITURES COST PER UNIT TOTAL COST
12 Dog Bed ₱400.00 ₱4,800.00
1 Office Chair ₱600.00 ₱600.00
Bean-Bag
2 ₱1,899.00 ₱3,798.00
Chair
Mini Center
1 ₱690.00 ₱690.00
table
4 Stool Chair ₱320.00 ₱1,280.00
TOTAL ₱11,168.00
Space
The space, as aforementioned, will be at Solenad 3, so the space for the
business will be rented. The costs of such are all estimation.
OTHER ESTIMATED ESTIMATED
EXPENSES MONTHLY COST ANNUAL COST
Space Rent ₱46,500.00 ₱558,000.00
Air-
₱8,400.00 ₱100,800.00
conditioning
Total: ₱54,900 ₱658,800.00
Space Renovations
RENOVATION ESTIMATED COST
Interior Design ₱10,000.00
Renovation Cost ₱680,000.00
Permits and Bonds ₱50,000.00
Total ₱740,000.00
D. Materials
Office supplies
TOTAL
OFFICE ESTIMATED
QUANTITY ESTIMATED
SUPPLIES COST/UNIT
COST
5 Receipt Paper ₱128.00 ₱640.00
1 Carbon ₱260.00 ₱260.00
2 Stapler ₱290.00 ₱580.00
2 Staple Wire ₱63.00 ₱126.00
1 Hole Puncher ₱216.00 ₱216.00
3 Fastener ₱22.00 ₱66.00
10 Folder ₱28.00 ₱280.00
5 Pens (Pilot) ₱47.00 ₱235.00
1 Paper Clips Set ₱100.00 ₱100.00
2 Tape ₱20.00 ₱40.00
1 Tape Dispenser ₱139.00 ₱139.00
2 Bond Paper ₱234.00 ₱468.00
5 Photo Paper ₱180.00 ₱900.00
Fire
2 ₱2,498.00 ₱4,996.00
Extinguisher
1 First Aid Kit ₱315.00 ₱315.00
TOTAL ₱9,361.00
Dog Supplies
ESTIMATED
Quantity SUPPLIES (for dogs) COST/UNIT
COST
Dog Shampoo -
5 ₱480.00 ₱2,400.00
FURMAGIC (1000ml)
Dog Shampoo - Anti
5 garapata (tick) ₱229.00 ₱1,145.00
shampoo 500 mL
Dog Powder –
20 ₱280.00 ₱5,600.00
BEARING (500ml)
Pet Cologne –
20 PAMPERED POOCH ₱190.00 ₱3,800.00
(125ml)
Pet Cologne - Pro de
Perfume Pet Cologne
20 with Moisturizer for ₱129.00 ₱2,580.00
Dogs and Cats (Milk)
100mL
15 Disinfectant ₱800.00 ₱12,000.00
Microfiber Bath
40 ₱48.00 ₱1,920.00
Towel
Diaper - Extra Small
5 ₱240.00 ₱1,200.00
(12 pcs)
Diaper – Small (12
5 ₱300.00 ₱1,500.00
pcs)
Diaper – Medium (12
5 ₱360.00 ₱1,800.00
pcs)
Diaper – Extra Large
5 ₱360.00 ₱1,800.00
(12 pcs)
10 Dog Treats – JerHigh ₱90.00 ₱900.00
Toothbrush Set (3
10 ₱100.00 ₱1,000.00
pcs)
Toothpaste for Dogs
10 ₱225.00 ₱2,250.00
– ArquiFresh (100g)
12 Toys (teether) ₱150.00 ₱1,800.00
TOTAL ₱41,695.00
Utilities
ESTIMATED ESTIMATED
UTILITIES PROVIDER
MONTHLY COST ANNUAL COST
Electrity MERALCO ₱8,026.80 ₱96,321.60
LAGUNA
Water ₱2,000.00 ₱24,000.00
WATER
Telephone PLDT ₱1,299.00 ₱15,588.00
TOTAL ₱11,325.80 ₱135,909.60
E. Money
Non-Consumable
Cost
Machines ₱65,900.00
Equipments ₱25,262.00
Furnitures ₱11,168.00
Space Renovation ₱740,000.00
Total ₱842,330.00
Consumable
Annual Cost
Salary ₱666,000.00
Rental ₱658,800.00
Office supplies ₱9,361.00
Dog supplies ₱41,695.00
Utilities ₱135,909.60
Total ₱1,511,765.60
Total Operation Cost
Cost
Non-Consumable ₱842,330.00
Annual Consumable ₱1,511,765.60
Total Operation Cost ₱2,354,095.60
It is notable that the operation costs are high due to the location of the business. Solenad
have a high rental and renovation fee.
Part 4:
Business Financing
A. Funding Sources
The owner decided that the funding would come from personal savings. Thus, the
business would be sole proprietorship. As mentioned below, the projected cost for
the business is ₱1,793,011.33.
B. Expenditures
Capital Expenditures:
Pre-Operating Expenses:
License/Permits ₱30,000.00
Fixed Assets:
Machine ₱65,900.00
Equipment ₱25,262.00
Furniture ₱11,168.00
Renovation ₱740,000.00
Operating Expenditures (6 months):
Working Capital:
Rent ₱329,400.00
Salaries & Wages ₱333,000.00
Utilities:
Electricity ₱48,160.80
Telephone ₱7,794.00
Water ₱12,000.00
Marketing Cost and Expenses ₱1,797.50
Office Supplies ₱4,680.50
Dog Supplies ₱20,847.50
Subtotal ₱1,630,010.30
Contingency Plan 10% ₱163,001.03
TOTAL PROJECTED COST ₱1,793,011.33
C. Sales Forecast
In getting the estimated revenue, it is assumed that the business will have 10 dogs
per day. With 10 dogs per day, a total of 3600 dogs per year is multiplied with the
cost of full grooming which is 650php. Thus, the business would generate a total of
₱2,340,000.00.
D. Income Statement (6-months)
Below is the projected income statement for the first 6 months of business operation. As the
sales is below ₱3,000,000.00, the special 8% tax rate by the TRAIN law may be applied.
Cost
Revenue(6-months) ₱1,170,000.00
Operating
₱757,680.30
Expenses(6-months)
Income before tax ₱412,319.70
Provision for tax ₱32,985.58
Net income ₱379,334.12
References:
Dotson, M. J., & Hyatt, E. M. (2008). Understanding dog–human companionship. Journal of
Business Research, 61(5), 457–466. [Link]
General Dog Care. ASPCA. (n.d.). [Link]
Johnson, T. D. (2011, January). Pets can be a prescription for happier, healthier life. The Nation's
Health. [Link]
Liddick, S. (2012). Barkleigh Productions. [Link]
May, L. (2018). The Top Pet Industry Trends For 2018. Pawsible Marketing.
[Link]
[Link].
Saha, S. (2020). Pet Care Market. Future Market Insights (FMI) | Smart Market Intelligence for
Smarter you. [Link]