Essay on Omega Paw Case Study Solution - 1656 Words

Case Analysis Executive Summary: As the population of cats in North America increases, so does the ownership of them as pets. Omega Paw’s novel and unique litter box, self-cleaning with a closed top, has tapped into the market with customer satisfaction and positive reviews. The company looks forward to reflect this positivity with an increase in sales and profit levels. Introducing the product in grocery stores would result in weekly sales of $126,000, highest among other alternatives. With direct and indirect competition along with the production constraints, Ebert (president) is motivated to break through these barriers and prolong the growth phase of this product with increased sales and profits. Problem Statement: After a†¦show more content†¦In terms of the business, a booming cat population could attract more companies to introduce enhanced version of this product in this industry where there are no barriers to entry. Market and competitive analysis: There are estimated to be 66 million cats in North America. This estimate has risen by 7 percent between 1994 and 1996 and is estimated to grown at an annual rate of 4% over next few years. There has been an uptrend in multiple cat households which is primarily due to the ease of care and maintenance for cats relative to other pets. Omega Paw has segmented its market into three divisions. 5% of the cat owners are new or first time owners while 80% of the owners are experienced. The rest of the 15% are segmented in the â€Å"gray zone† where owners keep their pets outdoors and therefore only spend on food. Omega Paw should focus its marketing in the first two segments as those owners are likely to research and browse information about the best available products for their feline friends. The 80% segment could be divided more in to smaller segments with pet owners who prefer to use basic traditional equipment versus owners who are willing to try new products to see if it matches their needs. Omega Paw faces direct competition from three companies. It has a competitive advantage over Everclean Self Scoop Litter Box in term of its pricing. However,