NEW VENTURE DEVELOPMENT
PROJECT
Submitted by: Diya Singh
MBA IEVD
2nd Year
1
TABLE OF CONTENTS
NO. CONTENTS PAGE NO.
1 Competitors Profile 3
2 Legal and Regulatory Requirements 5
3 Milestone Mapping 7
4 Business Model Type 9
5 Operating Plan 10
6 Staffing Plan 11
7 Financing Plan 12
8 Segmentation, Targeting and Positioning 14
9 Finding Gaps 17
10 Valuation 18
11 References 19
2
1. Competitor Profile:
Competitor Business Name: Happy Business Name: Pet Backer (MNC)
Identification
Pettings
Key product Pet Boarding, Pet Grooming, Pet Pet sitting, Pet Boarding, Pet Grooming,
Taxi Dog walking, Pet Taxi, Pet Daycare.
or service
Location(s) House No. 1 P Huda Plots, Sector Delhi, Gurugram, Mumbai, Pune,
56, Gurugram, Haryana 122002. Bengaluru, Noida, Lucknow, Hyderabad
Local,
regional,
Regional Global (In over 50 Countries)
national or
global?
Primary
features of Boarding, Grooming,
Transportation Boarding, Grooming, Transportation
product or
service
Advantages of
product or Convenience, Comprehensive Convenience, Comprehensive Solution,
Solution Special Expertise, Peace of Mind
service
Disadvantages
of product or Cost, Communication Challenges, Cost, Booking Constraints
Limited Customization
service
Target market
Pet Owners, Working Pet Owners, Working Professionals, Pet
Professionals, Pet Enthusiasts, Enthusiasts, Frequent Travelers
Frequent Travelers
Market share
Less than 1% Nearly About 1%
Pricing Grooming: ₹800-₹1500 Pet Boarding: Differs from State to State but
Boarding: ₹900-₹1500 Per Day ranges from ₹400-₹1500/Day.
Pet Taxi: ₹150/Trip (New Delhi)
Promotional
activities Social Media Campaigns, Online Social Media Campaigns, Online
Advertising Advertising, Customer Loyalty Programs,
Community Events and Sponsorships
Knowledge, Certified Pet trainers, Skilled Certified Pet trainers, Skilled Groomers,
skills, and Groomers, Driving skills for Pet Driving skills for Pet Taxi
abilities of key Taxi
staff
3
Resources Limited Resources High Resources
Image Less Known More Known
Culture of the
business (norms Business Entity Business Entity
and values)
Financial
condition Not Known Profitable
How is your
venture Different Geographic Advantage Cheaper
distinctive from
this competitor?
4
2. Legal and Regulatory Requirements - Approvals, Requirements
1. Alignment with Company’s Act, 2013
2. Business PAN Card
3. Certificate of Incorporation
4. Company Registration with Ministry of Corporate Affairs
5. Current Account in Bank
6. Digital Signature Certificate
7. Director Identification Number
8. GST Number
9. Intellectual Property Rights- Wordmark
10. Memorandum of Association (MOA) and Article of Association (AOA)
11. TAN Number
12. Udyog Aadhar
Some other common regulatory aspects we may need to consider:
Zoning and Location Compliance:
Ensuring that our business location complies with local zoning regulations. Some areas may have specific
zoning requirements for businesses, including those related to pets.
Health and Safety Standards:
We should adhere to health and safety standards for the well-being of both pets and customers. This may
involve inspections and compliance with regulations related to cleanliness, hygiene, and disease prevention.
Animal Welfare Regulations:
Familiarizing ourselves with any animal welfare regulations and standards that apply to our type of business.
This can include guidelines for proper care, housing, and handling of animals.
5
Employee Regulations:
We need to be aware of and comply with regulations related to employment, wages, and working conditions.
This may include workers' compensation insurance and adherence to labor laws.
Insurance Requirements:
Obtaining appropriate insurance coverage for our pet service business. This may include liability insurance
to protect against accidents or injuries involving pets or customers.
Permits for Specific Services:
We may need specific permits. For example, grooming services might have additional requirements
compared to a pet sitting service.
Data Protection and Privacy:
As our business collects and stores customer information, we need to be aware of data protection and privacy
regulations. We should implement measures to secure customer data.
6
3. A). Milestone Mapping
1.Completion of Concept and Product Testing:
Taking into consideration the various stages involved in the completion of concept and product testing for
our pet service business, the entire process could span approximately 5 to 8 months, depending on several
factors such as:
Market Research and Concept Development (3-5 months)
Comprehensive market research to understand the pet service industry and customer needs.
Development of a clear and viable concept for your pet service business.
This I have already done.
Concept Testing (2-3 months):
Testing our business concept with a focus group or potential customers. Iterative processes to refine our
services based on feedback.
This I have already done.
2. Completion of Prototype:
I have already worked on the prototype, and it took me around 2-3 months to complete.
7
3.First Financing:
It would depend on the current situation, but I am initially planning to take the first outside financing after 2
months of operations.
4.Pilot Testing: Initial plant Test
I will do the initial implementation of my services to assess its feasibility, performance, and potential issues
before a full-scale launch. This will take me around 2 months.
5.Market Testing
Market testing is a crucial phase in the development of our services here we evaluate its viability and gather
feedback from potential customers.
It will take me around 3 months.
6. Production Start-up
The timeline for starting up production will take around 1 to 1.5 months for setting up and installing
necessary equipments.
7. Bellwether Sale (first substantial sale)
Bellwether Sale might take up the time of up to 6 months.
8. First Competitive Action
We might take the first competitive action after 1 years.
9. First Redesign or Redirection
It’s completely dependent on industry.
10. First Significant Price change
It’s completely dependent on industry.
8
B). Business Model Type
We would use a combination of D2C, and Subscription based business models, as our competitors are
already doing.
D2C because we are directly taking their appointments and are serving them directly.
Subscription based model, for example if a customer has a subscription to our services, they might get
additional free grooming services after every use of services or so on.
9
4. Detailed Operating Plan, Staffing Plan and Financing Plan.
OPERATING PLAN:
The personnel or departments who oversee completing specific tasks:
WHO Admin, Grooming Department, Boarding Department, Pet Sitting Department.
A description of what each department is responsible for:
Admin for handling all the appointments, sending pet sitters and
WHAT groomers to the customer’s place.
Grooming Department for handling the grooming sessions, bathing
sessions etc.
Pet sitters will go and handle pets.
The information on where daily operations will be taking place:
WHERE The appointments and calls will take place online, grooming services will take
place at the customer’s doorstep and boarding services will take place in our
physical entity.
The deadlines for when the tasks and goals are to be completed:
WHEN Deadlines will be the appointment schedule, which means the services must be
performed when the appointment is.
The cost amount each department needs to complete their tasks:
HOW MUCH Discussed in Financing plan below.
10
STAFFING PLAN:
WHO? Pet sitters, caretakers, and groomers
THEIR
As such no qualification is required, but they should be pet lovers and for grooming
QUALIFICATION?
they should have the proper skills to groom the pets, proper certifications etc.
- SKILLED/
SEMISKILLED/
UNSKILLED
HOW MANY? Initially we will need 4 persons, including me.
WHAT WILL BE I will be handling all the appointments and pet boarding service one skilled
groomer will perform the grooming service, and one pet sitter/walker who will go
THEIR ROLE? pet sit or walk their dogs.
The pay will be given on hourly basis for the pet sitters, and for the groomers it
THEIR PAY? would depend on the market rates.
HOW WILL YOU All the pet lovers community can join, we will approach them by having
community events and posting the advantages of joining our family.
APPROACH
THEM?
PERIOD OF The period of service is part time or as when needed.
SERVICE: LONG
TERM
TRAINING AND Groomers need to have specific training, rest need to have some basic customer
training.
DEVELOPMENT
11
FINANCING PLAN
12
The income statement provides a comprehensive overview of our business's financial performance over a
specific period, typically a year. It is divided into two main sections: revenues and expenses. Revenues
encompass income from sales, services, and other sources, while expenses account for the costs incurred in
generating revenue. The difference between total revenues and total expenses is the net income before taxes,
reflecting the company's profitability. In this specific pet service business income statement, the revenues
amount to ₹221,000.00, including sales and service revenues, while total expenses amount to ₹508,000.00,
encompassing various operational costs such as commissions, cost of goods sold, employee benefits, rent, and
others. The negative net income before taxes of ₹-287,000.00 indicates a financial loss for the period. The
income tax expense of ₹-57,400.00, represented as a negative value, suggests a potential tax benefit. The final
figure, income from continuing operations, stands at ₹-229,600.00, underscoring a challenging financial
situation for the business in the specified year. The income statement serves as a crucial financial tool, allowing
businesses to assess their profitability, identify areas for cost management or revenue enhancement, and make
informed decisions to improve overall financial health.
13
5. Gaps identified after Questionnaire Analysis and preparing STP.
SEGMENTATION, TARGETING AND POSITIONING:
SEGMENTATION:
We are going to follow the effectual segmentation, where we already have the product/servicewe
just need to identify our target users.
Types of Segmentation
1. Geographic Segmentation:
Metro cities: Pet services could be concentrated in metro cities such as Mumbai, Delhi, Bangalore,
Chennai, and Kolkata, which have high population densities and pet ownership rates.
Tier-1 cities: Other Tier-1 cities such as Hyderabad, Pune, Ahmedabad, and Surat could also be
potential markets for pet services.
Tier-2 and Tier-3 cities: Smaller cities with growing economies and increasing pet ownership
rates could also be targeted. Some examples include Coimbatore, Jaipur, Lucknow, Patna, and
Guwahati.
Coastal areas: Coastal areas with a high concentration of pet owners could be a lucrative market for
pet services. Cities such as Goa, Kochi, and Visakhapatnam could be targeted.
Hill stations: Hill stations with a large number of tourists and second home owners could be
targeted for pet services during peak tourist seasons. Some examples include Shimla, Darjeeling, and
Ooty.
High-income neighborhoods: Pet services could also be targeted in high-income neighborhoods
such as Bandra, Juhu, and Malabar Hill in Mumbai, Lutyens' Delhi, and upscale areas in other
cities.
2. Demographic Segmentation:
Age: Pet owners of different age groups may have different needs and preferences. For instance,
younger pet owners may be more interested in trendy pet accessories, while older pet owners may
14
prioritize health and wellness products. Thus, the pet service business could be segmented by age
groups such as millennials, Gen X, and baby boomers.
Gender: Women tend to be more involved in pet care than men. Thus, the pet service business
could be segmented by gender to cater to the specific needs and preferences of female pet owners.
Income: Pet owners with different income levels may have different spending habits and
preferences. High-income pet owners may be more willing to spend on premium pet products and
services, while low-income pet owners may be more price-sensitive. Thus, the pet service
business could be segmented by income levels such as high-income, middle-income, and low-
income groups.
Education level: Pet owners with higher education levels may be more interested in products and
services that promote pet health and well-being. Thus, the pet service business could be segmented
by education levels such as graduate degree holders, undergraduate degree holders, and high school
graduates.
3. Psychological Segmentation:
Pet ownership motivation: Pet owners may have different motivations for owning a pet, such as
companionship, security, or status. Thus, the pet service business could be segmented by the
motivation behind pet ownership.
Pet attachment: Pet owners may have different levels of attachment to their pets. Some may
consider their pets as part of the family, while others may view them as mere companions. Thus, the
pet service business could be segmented by the level of pet attachment.
Lifestyle: Pet owners may have different lifestyles and preferences. For instance, some may leadan
active lifestyle and enjoy outdoor activities with their pets, while others may prefer a more relaxed
lifestyle. Thus, the pet service business could be segmented by the lifestyle of pet owners.
Values: Pet owners may have different values such as environmentalism, social responsibility, or
animal welfare. Thus, the pet service business could be segmented by the values that are important
to pet owners.
Personality traits: Pet owners may have different personality traits such as introversion,
15
extroversion, openness, or conscientiousness. Thus, the pet service business could be segmentedby
the personality traits of pet owners.
4. Behavioral Segmentation:
Pet type: Different types of pets such as dogs, cats, birds, and fish have different needs and preferences.
Thus, the pet service business could be segmented by pet type to cater to the specific needs of each type of
pet.
Pet health: Pet owners who prioritize pet health may be interested in products and services that
promote pet wellness such as pet food, supplements, and grooming services. Thus, the pet service
business could be segmented by the health-consciousness of pet owners.
Pet activities: Pet owners who enjoy spending time with their pets may be interested in pet- friendly
activities such as pet-friendly cafes, parks, and events. Thus, the pet service businesscould be
segmented by the activities that pet owners enjoy with their pets.
Pet behavior: Pet owners who have pets with behavioral issues such as anxiety or aggression may
be interested in products and services that help address these issues. Thus, the pet service business
could be segmented by the behavior of pets.
Pet fashion: Pet owners who enjoy dressing up their pets may be interested in pet fashion products
such as clothing, collars, and accessories. Thus, the pet service business could besegmented by pet
fashion preferences.
TARGET MARKET:
Basically, the precise target market for a pet servicing business in India would be affluent urban pet
owners, primarily in the age group of 25 to 45 years, who consider their pets as a part of their family
and are willing to spend on premium pet services such as grooming, boarding, training, and
veterinary care. This group is likely to be concentrated in metropolitan areas such as Mumbai,
Delhi, Bangalore, and Hyderabad, where there is a higher density of pet owners.
Additionally, this target market may prefer personalized and customized pet services that cater to
their specific pet's needs, rather than a one-size-fits-all approach.
16
POSITIONING:
Positioning strategies involve creating a unique image and perception of Paw Stop in the mindsof
consumers to differentiate it from competitors. Here are some common positioning strategies:
Quality: Paw Stop can position itself as a provider of high-quality products and services, using
premium ingredients or materials, and offering excellent customer service. This strategy can be
effective for targeting pet owners who are willing to pay a premium for high-quality products and
services.
Convenience: Paw Stop can position itself as a convenient option for pet owners, by offering online
ordering, home delivery, or extended hours of operation. This strategy can be effective fortargeting
busy pet owners who value convenience and time-saving solutions.
Affordability: Paw Stop can position itself as an affordable option, by offering low prices or
discounts. This strategy can be effective for targeting price-sensitive pet owners, especially in a
price-competitive market.
Innovation: Paw Stop can position itself as an innovative and creative option, by introducing new
and unique products or services. This strategy can be effective for targeting pet owners who are
early adopters and enjoy trying new things.
Specialization: Paw Stop can position itself as a specialist in a particular product or service, suchas
dog training, grooming, or nutrition. This strategy can be effective for targeting pet owners who
have specific needs or interests.
According to the research, questionnaire analysis I found out that they are willing to pay ₹400
per hour for pet sitting services. The finding indicates a reasonable level of price acceptance
within the target market. To leverage this information, we should ensure competitive pricing
aligned with local market rates while emphasizing the unique value proposition, such as highly
qualified and caring pet sitters, personalized services, or additional perks. Implementing a flexible
pricing strategy that accommodates different customer segments and exploring diverse pricing
packages can further enhance customer satisfaction and foster a sustainable and profitable business
model. Regularly assessing market dynamics and adapting pricing strategies accordingly will be
key to maintaining a competitive edge in the pet service industry.
17
6. Valuation
The valuation for our company stands to be at ₹ 74.31 lacs, it turned out to be this much because the
valuation for our competitors is too high and valuation is calculated based on their average, thus it turned out
to be ₹ 74.31 lacs.
18
REFERENCES:
https://www.happypettings.com/
https://www.petbacker.com/
https://www.crunchbase.com/organization/petbacker
https://startup.outlookindia.com/analysis/india-s-pet-care-industry-basks-in-the-glory-
of-post- pandemic-puppy-love-news-6440
https://timesofindia.indiatimes.com/blogs/voices/pet-care-a-growing-sector-but-a-
struggling- community-in-india/?source=app&frmapp=yes
https://timesofindia.indiatimes.com/blogs/voices/pet-care-a-growing-sector-but-a-
struggling- community-in-india/?source=app&frmapp=yes
https://www.marketdecipher.com/report/india-pet-care-
market#:~:text=India%20Pet%20Care%20Market%20size%20is%20estimated%20at%20INR%
207%2C400,period%20of%202022%20to%202032
https://straitsresearch.com/report/pet-sitting-
market#:~:text=Market%20Overview,period%20(2022%E2%80%932030).
19
