Target customers
Wag caters a wide Variety of people who have pets. People who want their pets to be trained, groomed or even treated healthy can find proper services and products in Wag. Most of customers who come to Wag are looking for the knowledge about what pet food to buy. Customers who get used to a particular brand and service will not easily change, that is why Wag has a strong loyal customer base. For the owner, she take all customers as her target customers and hope they would become her future repeat customers.
Competition
Pet stores industry is increasingly competitive.PetSmart Inc.and PETCO Animal Supplies Inc. own respectively 41.9% and 20.6% market share in the industry. Smaller pet stores compete with big-box pet stores an retailers and need to develop target niche markets in order to set their apart.
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They have not gotten to a place where they are ordering together for volume discounts, mostly because of the logistics involved in such an initiative. Among them Petsmart could be a big competitor. Petsmart has a huge advantage in merchandise selling. Perhaps because it has reputation and huge recourses of supplements. However, Wag don’t want to beat it with products selling, they get a much more competitive business—grooming and training. The service profit contributes to 40% of its net revenue while Petsmart only get 11% on average. The 30% difference doesn’t mean Wag get higher price or more customers than Petsmart, it means Wag has stronger loyalty from customers and better service