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and opinions expressed in this Newsletter are not necessarily those of the Pet Industry Association of Australia
 

JOHN STANLEY: The 5% Club

Price has become a major marketing tool over the past few months. The majority of retailers have relied on discounting as a tool to drive sales, but discounting can only be a short-term strategy. New ways of generating sales have to be developed for retailers to prosper in a new economic environment.

Sports Power, the Australian sports apparel retailer, developed a promotion that encouraged consumers to purchase a pair of sports shoes and then purchase a pair of socks. If the customer purchased the socks then the retailer would donate $2 to charity. This campaign was interesting, it was encouraging the customer to spend more and hence increase the average sale, but rather than introduce a discount offer on the extra purchase, it created an emotional interest in donating to a charity.

In today’s market we have a consumer that wants a bargain and yet wants to be a good global citizen at the same time. This can cause conflict, but it can create opportunities for win, win situations for consumers, retailers and charities.

Scarvaci’s IGA Supermarket is located in Hamilton Hill, Western Australia. It is a family retail business that has been trading at the same location for two generations. Frank, the owner, wants to help fight childhood poverty as part of his marketing strategy while helping his customers. He has come up with a unique marketing strategy.

The supermarket has developed a loyalty club and a Club Card under the banner of The 5% Club. Club members receive a 5 per cent discount on all their purchases including specials in the supermarket over a period of 12 months, which is the life of the loyalty card before renewal is due.

The card costs $60 a year and customers pay for the loyalty card up front. Many retailers are offering a similar loyalty club scheme, but Franks Scarvaci’s card takes it to another level. For every 12 members in the club, the store sponsors one World Vision child for a period of 12 months. The club is restricted to 2,400 members; this provides some exclusivity, but not only is this supporting under-privileged children, it is also saving each club member on average $200 a year on their grocery shopping bill.

As an added bonus, the store also contributes $1 for every member to the IGA Community Chest fund, which helps the local community. Click here for more information on this promotion.

By John Stanley

John Stanley is a retail business coach, consultant, speaker and author. His specialist areas are customer focused layout, customer focused merchandising, customer focused marketing and branding, and customer focused selling and service. Email John on john@johnstanley.cc or visit his website www.johnstanley.cc

 

 

ARE YOU EXHIBITING AT THE PIAA 2009 PET EXPO?

 

Book now to advertise in the

 Exhibition Catalogue

(click below to find out more)

 

 

Pet Industry Association NEWS:

QLD State Meeting -

The QLD networking event is Wednesday 8th July from 7pm at the Eleven17 Bar & Grill 11-17 Southgate Ave, Cannon Hill – this event is being sponsored by HoundHouse who are offering a FREE HoundHouse to all members (and those who join on the night).   

Members are encouraged to bring along a “non member friend” and show them what the Association is about.  Animal Industries Resource Centre will offer a short seminar on the new Microchipping Laws & how you & your staff can become an authorised Microchipper.  There will also be discussions on the noxious fish list for QLD & what this means for trade. 

For more information contact Janine

Pay by instalment membership is here! – If you would like to know more about what Pet Industry Association Membership mean or paying your membership by instalments email Janine or visit our website -  (Available for new & existing members)!

ACT Members – We are arranging the next members meeting for late July – keep your eye out for more details.  If you have a topic of interest you would like discussed please email Janine with the details.

 

USA - June 30th

Legislation specifying spay/neuter requirements for dogs and cats has passed the California Senate, with amendments, and has been assigned to the Assembly Committee on Business & Professions. Senate Bill 250 was introduced earlier in this year’s session and was amended several times in the Senate before a last minute passage. The bill provides licensing requirements for unaltered dogs/dogs and allows local governments to set licensing fees and penalties.

 

 

 

  

Bush's International - latest victim of the downturn.

 

Bush's International, the pet food manufacturer and distributor founded in the late 1950s, is the latest victim of the downturn.

 

The large Sydney-based company, with manufacturing facilities around the country, was placed into receivership last Friday.

 

Bush's is a private label supplier to the major supermarket chains. Sources say that one of the reasons for the failure is that raw material costs had increased and consumers had balked at the higher prices, turning to other brands instead.

Receivers appointed are Greg Hall and Philip Carter from PriceWaterhouseCoopers.

 

Majority owner, ANZ Equity Fund, took an initial investment of $20 million in September 2005, before making a ‘follow-on' investment last July. It had also taken a $2.4 million impairment charge and there were reports that the Bush's account is said to have been dispatched to the ‘dark side' of the bank where workouts take place.

 

ANZ, which had more than 40 private equity investments, also announced last October that it had decided not to write any new private equity business.

 

Bush's, which is also a private label supplier to the major supermarket chains, will remain trading while the receivers examine the financial affairs, look for a possible buyer and to offload assets.

 

But any potential purchase could attract attention from the ACCC. One retail source told SmartCompany that retailers want Bush's to stay in business to place competitive pressure on the huge multinationals that control the pet food market.

 

 

Mark Townsend from QLD RSPCA spoke on the Sunrise program Channel 7.  He was asked should DOMESTIC animals [dogs, cats, horse etc] be banned from PERFORMING, he said YES.

Does this mean that the RSPCA are against dog trials shows, horse trials, cat shows, bird shows etc, are they going to be banned next.  Maybe we shouldn’t expect to see dog obedience trials or Blue rounding up the sheep at the next Royal Easter Show.

 

 

Fressnapf to team with Mars on sales-forecasting project

 

 

Fressnapf has teamed with pet food supplier Mars Petcare to develop pilot sales-forecasting project to create a demand-driven supply, as reported by Planet Retail and Lebensmittel Zeitung.

 

The project is aimed at reducing stocks by using sales as a guide for production and distribution. It will encompass all Mars pet food brands, which include Pedigree, Cesar, Whiskas and Sheeba.

 

Fressnapf said it will present the sales forecasting project to all of its 350 suppliers.

 

Fressnapf, which has more than 2,000 stores, recorded an 8.3 per cent increase in turnover for the first quarter of the year, when compared with 2007. It is investing in expansion and expects to create 2,000 new jobs by 2010.

 

Gleewire Mary Clakre

 

 

THE WINTER ISSUE OF PET INDUSTRY NEWS IS NOW AVAILABLE ONLINE -THE PRINTED COPIES WILL BE OUT NEXT WEEK

 

 

 

Pet Trade Shows coming up

 

 

 

 

 

 

 

  

 

    

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