SillyMutt

SillyMutt (“the company”) is a new business venture aimed at effectively competing in the highly lucrative pet accessories market.

The company will exist as an innovator and distributor of branded products, combining the designs of in-house staff with outsourced manufacturing and operating as a business-to-business retailer. Its products will be retailed to end-user clients though a number of strategic retail partners including veterinary clinics, pet superstores (and their online presences) and home-ware stores. Its products will also be commercialized through corporate gifting, association with public events such as the Melbourne Cup, AFL and other sporting events.

The pet care market in Australia contributes AUD$4.62 billion to the economy annually and employs approximately 45,000 people. This ranks the industry between ‘meat for human consumption’ and ‘poultry and poultry related products’ in terms of economic contribution. The company’s target market is the 37.8% of all Australian households that contain at least one dog, totaling some 3.7 million dogs (as of 2005 according to the Australian Companion Animal Council). Market research shows the typical primary dog carer to be a married female homeowner with children who’s gainfully employed with a high disposable income. Of the remaining households that do not currently house a pet, 52% expressed a desire to get one in the near-term future.

Forbes.com, in 2004, stated, “Pet spending in the U.S. is estimated at $34 billion this year, up 68% net of inflation over the past decade. Industry sources say the trend is global… It's also an industry apparently immune to recession and, though once thought to be mature, it is expected to grow more than 6% a year for years to come.” Though it is not the company’s initial target, international expansion into the US, European and Asian markets would be duly considered once resource and infrastructure reached a level that could sustain such growth.

SillyMutt will pursue worldwide patent protection of a number of its unique designs, invest heavily in brand-building (using award-winning film makers and web designers for its television and online marketing campaigns) and seek to benefit at initial stages from the low levels of customer brand loyalty observed in the industry: rapidly becoming a viable competitor to the major players. “Puppia”, a Seoul-based producer of pet accessories reached annual turnover of AUD$5 million in 2005, “FuzzYard” products are sold in 20 countries worldwide and have also created significant wealth for their Australian shareholders.

SillyMutt will seek endorsement of its products by veterinarians and animal welfare charities to ensure both dogs and their owners are completely satisfied. At all times and in all its operations, SillyMutt’s customer satisfaction (both business partner and end-user) will be the prime concern of all its employees. Other aspects of the company’s value proposition include premium pricing and vertical integration of business functions.

Required human resources include regional sales representatives, administrative and customer-support staff for a Melbourne head office, IT and OMS developers and staff. Capital resources required include office premises, warehousing, logistics and technical infrastructure.