The Pet Hotel PDF - Canadian Marketing Case Study

# Canadian Marketing Profile ## The Pet Hotel How many boarding kennels can you name that provide suites for pets, exercise programs, gourmet menus, daycare, and a turn-in service? Since it opened in 1997, The Pet Hotel, located in Peterborough, Ontario, has been doing just that. The Pet Hotel is...

# Canadian Marketing Profile ## The Pet Hotel How many boarding kennels can you name that provide suites for pets, exercise programs, gourmet menus, daycare, and a turn-in service? Since it opened in 1997, The Pet Hotel, located in Peterborough, Ontario, has been doing just that. The Pet Hotel is the brainchild of Dr. Eileen Leitch, who thought of the idea for an upscale kennel when she tried to find a suitable place to board her own pets. With only basic shelters and communal runs, few kennels offered the kind of care she and her husband were looking for, and certainly none appealed to their sense of what their pets deserved. Based on a hunch that there were other pet owners who felt the same way, Dr. Leitch did some market research. She began at the local chamber of commerce, where she surveyed all of the boarding kennels in the area. She visited local veterinarians and groomers, and asked pet owners if they were satisfied with the kennels they used. She found out not only what services they were looking for, but also what they would be willing to pay for those services. Market research told Dr. Leitch that her potential customers were more likely to be interested in the level of care offered than in the price of that care. Moreover, they would likely be employed in the professions, commute to work, and travel frequently on business during the week and for pleasure on weekends. The majority would come from two-income households and would likely have a strong bond with their pets. Based on her research, Dr. Leitch concluded that her customers would most often use the The Pet Hotel's services in combination with travel. Using this information, Dr. Leitch created a business plan in which she illustrated why Peterborough would be an excellent place to locate The Pet Hotel. Peterborough is a growing community, in part due to its proximity to a number of larger cities, including Toronto. In addition, a number of businesses and organizations were relocating to Peterborough from larger centers. Some of these organizations, such as the Ministry of Natural Resources, were likely to have employees with a strong concern for animals. So, when a 4-hectare farm came up for sale – a farm that was (a) near the center of town, and (b) near the highway – Dr. Leitch and her husband, Chris, jumped at the opportunity, knowing that it was a perfect fit. As she says, "Our customers don't want to spend a lot of time driving to pick up or drop off their pet. They want to make the stop and then get right back on the highway." When she first created the business, Dr. Leitch circulated some flyers among local veterinarians and pet-grooming clinics. She also took out an advertisement – at a cost of $30 – In the local newspaper. The cost of that add and the photocopied flyers remains the only money she has spent on advertising in over six years. Today, all of her customers learn of The Pet Hotel by word of mouth, and that is all the advertising and promotion The Pet Hotel needs. The hotel's occupancy rate is 100 percent, and it regularly has a long waiting list. In fact, many of the hotel's clients plan their holidays around when they can board their pets at The Pet Hotel. **Figure 2.1** By marketing The Pet Hotel as offering her guests all the comforts of home, Dr. Leitch has been able to achieve a 100-percent occupancy rate. The image on the right has a blurry close up photo of the outside of the Pet Hotel. It is a building with multiple floors and a brick exterior. There are green plants and shrubs around property. ## Questions 1. How did Dr. Leitch tailor her business to meet the needs of her customers? How well did she know her customers? 2. Why is word of mouth an effective form of advertising for this type of business?