Company Summary
Pet Hugger is dedicated to developing and distributing a product able to help owners control destructive behavior in their dogs caused by separation anxiety.
Product/Service

Pet Hugger works by applying a gentle, constant pressure around a pet’s body, which has a dramatic calming effect. It’s like a “hug” and it relaxes and reassures the pet. Around the pet’s chest area there is a so-called “Smelly Pocket.” An owner enables this feature of the Pet Hugger by putting a personal belonging into the pocket. It can be a sock, a shirt, or anything really: the smellier – the better. The owner’s scent coming from the Smelly Pocket creates an illusion of his/her presence. Thus, Pet Hugger is a safe and easy way to treat pets’ separation anxiety. The concept behind Pet Hugger is supported by a number of scientific articles with “Calming Effects of Deep Touch Pressure in Patients with Autistic Disorder, College Students, and Animals” by Temple Grandin Ph. D. being just one of the examples proving that simple pressure can ease anxiety.
Customer Problem
As an experienced dog owner, I couldn’t help noticing that, currently, there is no product in the pet market addressing the above issue without involving medications or dubious and even cruel methods. It is really surprising considering that all puppies suffer from separation anxiety at some point. If left untreated, separation anxiety prevails even in older dogs, which leads to a number of psychological issues with destructive behavior being the most common. Many dog owners at some point of their lives experienced the feeling of coming home to overturned furniture, claw gouges on doors, tooth marks on window sills, and countless complains from neighbors about the dog barking and howling for hours when left alone. Pet Hugger is designed to prevent undesired behavior in dogs by treating its cause – separation anxiety.
Management
Diana Juarez, BBA in Finance & Investments (Hons, expected June 2014): finance, research, communications, animal behaviorist by experience;
Salvador Juarez, Bachelor of Architecture: product developer, designer, technology operator;
Knight Juarez: model (please see above), advisory committee, product tester, product approval committee.
Target Market
Total U.S. Pet Industry Expenditures (http://www.americanpetproducts.org/press_industrytrends.asp)
Estimated 2014 Sales within the U.S. Market
For 2014, it is estimated that $58.51 billion will be spent on our pets in the U.S.
Estimated Breakdown:
Food $22.62 billion
Supplies/OTC Medicine $13.72 billion
Vet Care $15.25 billion
Live animal purchases $2.19 billion
Pet Services: grooming & boarding $4.73 billion
Actual Sales within the U.S. Market in 2013
In 2013, $55.72 billion was spent on our pets in the U.S.
Breakdown:
Food $21.57 billion
Supplies/OTC Medicine $13.14 billion
Vet Care $14.37 billion
Live animal purchases $2.23 billion
Pet Services: grooming & boarding $4.41 billion
The IBISWorld Industry Report confirmed that pet industry is less affected by recessions than other retail sectors. Even during the 2008-13, the industry has averaged an overall 3.4 percent annual growth.
Customers
According to the 2013-2014 APPA National Pet Owners Survey, 56.7 million households own at least one dog. Thus, out of 56.7 million dogs in the U.S, 29-50% of adult dogs suffer from separation anxiety.
Marketing Strategy
An efficient marketing campaign through a number of TV and online ads featuring research and recommendations of animal behaviorist and veterinary specialists will make it clear to pet owners what a Pet Hugger is, how it works, and why it is effective.
Business Model
Pet Hugger’s business model is in essence a hybrid of Volume (Unit-Based) Revenue Model and Advertising Based Revenue Model. Pet Hugger will be available in a variety of privately owned local pet stores and on Pet Hugger’s website www.pethugger.com Product price will vary between $45 and $65 depending on the size and the level of customization involved. 1% of sales from every single Pet Hugger will be donated to ASPCA in order to help animals in shelters.
Pet Hugger Size
|
Chest Size
|
Weight
|
X Small |
13” – 16”
|
5-10 lbs
|
Small |
16” – 19”
|
11-15 lbs
|
Medium |
19” – 25”
|
16-30 lbs
|
Large |
25” – 32”
|
31-58 lbs
|
X Large |
32” – 37”
|
59-95lbs
|
Giant |
37”-41”
|
Over 96 lbs
|
A pet hugger sold at a pet store will come in different, yet limited, amount of colors: red, black, and dark blue. As to the size, there is extra small, small, medium, large, extra large, and giant.
Registration on www.pethugger.com will be free for customers and will provide an advantage of getting a pet hugger specifically crafted for the body of a particular pet for a fee of $12. This high level of customization is realized by means of specifying the pet’s measurements in the online order. Also, besides the red, black, and dark blue colors offered in stores, customers who sign up for online order would be able to choose from a greater variety of colors. Just as in the case of sales coming from brick-and-mortar stores, 1% percent of online sales will go to help animals in shelters though ASPCA. The website will contain unobtrusive ads of pet supplies, products, and services that pay Pet Hugger to use the advertising space on the webpage.
Once Pet Hugger is established in local pet stores, distribution will expand to PetSmart, which is the only major pet store constantly looking for new products. PetSmart offers an advance on royalties and a percentage of sales for up to 20 years once a product is chosen. After that, an expansion to other major pet stores such as Petland Discounts and Petco will follow.
Competitors
As of right now, Pet Hugger has three main competitors: The Anxiety Wrap, Thundershirt, Storm Defender. However, none of these products have been designed to specifically treat destructive behavior caused by separation anxiety.
Competitive Advantage
Unlike competitors, Pet Hugger deals not just with the consequence – destructive behavior- but helps a dog to cope with the cause of anxiety – missing the owner. Besides the reassuring pressure, the familiar scent coming from the Smelly Pocket creates the comfort of an owner’s presence thus relaxing the dog.
Financial Request
Pet Hugger is looking to raise the total of $7,500 to launch the product.
