1. Brand Positioning Cloud Star Final Report

2. 1.Brand Summary 2.Market Size and Trends 3.Competitive Review 4.Cloud Star Marketing Strategy 5.Market Research Analysis 6.Media Plan Presentation Overview

3. Executive Summary Brand Summary: Cloud Star is a brand sensitive to dog's allergy needs in treats and food. Performs very well with certain demographics; Cloud Star could either focus marketing on these groups or on ones they reach less. Premium, all-natural dog treats, especially for pets with allergies. Market Size & Trends: The market is increasing in price and in dollar, however, volume sales is decreasing. This suggests that people aren't buying as the price of treats increases. Pricing trends in the category increased by 4% in 2011 and are estimated to increase by 3% in 2012. Competitive Review: Direct competitors also focus on all-natural, allergen-sensitive dog food and treats (premium dog food makes up 40% of sales in dog food). Competitors (Direct): o The Honest Kitchen o Zukes o Stella & Chewy's o Nutro o Sojo's o Blue Buffalo Competitors (Indirect): o Greenies, Caesar, Pedigree o Purina o Hill's brand o Iams

4. Executive Summary Continued Cloud Star Marketing Strategy: Cloud Star can focus their marketing on ideas such as Made in the USA, all-natural ingredients, and food that is friendly to pets with allergies, since these are their strengths as a company. Unique Selling Proposition including; o Made in the USA o All-Natural Ingredients o No Artificial Colors, Flavors, or Preservatives Primary Business/Marketing Challenge: increase brand awareness. Market Research Analysis: Customers want a dog treat that is: Healthy, Nutritious, All Natural Product, Good for Teeth, U.S. Made, and Premium Quality. The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children. Social Media is a new and upcoming market that needs to be acted on. Online Ad's reach a small portion of respondents but is an easy market to get in to. Media Plan: Awareness is key to Cloud Star's success. Making customers aware of Cloud Star's health benefits for pets, as well as their generosity towards charity can strengthen brand awareness. Executed through several avenues, including: in-store sampling events, merchandise displays, advertisements in magazines, social media activity, and Google Adwords.

5. Brand Summary

6. Business Description Business/category competing in: Dog treats (and extend to other pet food/care products). Mission and business philosophy: To produce all-natural and wholesome products for dogs that are allergy-free, US made, and made from high quality ingredients "For more than a decade, Cloud Star has been producing all natural and wholesome products for dogs, even those with allergies." -Cloud Star http://www.cloudstar.com/content/about-us.asp

7. Business Description The product is: Buddy Biscuits Why Buddy Biscuits? Safe option for dogs with allergies All-natural option for consumers looking for healthy choice for dogs US made for those supporting production within the country Company uses sales profits to give back to community.

8. Business Description Current product positioning: Premium, all-natural dog treats, especially for pets with allergies. Product's competitive advantage: All-natural US made Allergy free Family owned Charitable

9. Market Size and Trends

10. Top competitors in “the healthy segment”: The Honest Kitchen Zuke's Stella and Chewy's Nutro Sojo's Blue Buffalo Size of Dog Treat Market (Sales) $2,378 million (2012, Euromonitor)

11. Market Size and Trends Trends in the market: Growing in Dollar at 0.6% (2011-2012) Declining in Volume at (0.8%) (2011-2012) (Euromonitor) Note: Actual sales are increasing while volume declines, suggesting that dog treats are becoming more expensive, but less are being sold as price increases.

12. Market Size and Trends Target consumer by demographics and product usage: Female (72%) Between 45-54 years old (24.9%) White (86.6%) Works in Professional Industry (16.9%) Household Income between $75,000-$149,999 (34%) Lives in Southern Region of the US (39.2%) Currently Married (60.9%) Census Region: South (107/100 Index) http://urereporter.mriplusonline.com/selectdemo.asp

13. Pricing Trends Increased by 4% in 2011 Estimated 3% increase in 2012 Driven by strong growth of premium segment http://www.portal.euromonitor.com.ezproxy.lib.calpoly.edu/Portal/Pages/Analysis/AnalysisPage.aspx

14. Cloud Star SWOT Analysis Strengths Reaches consumers with special health needs for their pets (i.e. dogs with allergies to regular dog food). Cloud Star integrates charity with its sales, so customers are actively aware of the brand's generosity towards animal welfare. Weaknesses Low activity and presence on social networks. Small share of overall dog treat market. While a higher recognition for dog treat "Buddy Biscuits," there is lower recognition for brand name "Cloud Star."

15. Cloud Star SWOT Analysis Opportunities Grow presence with customers on social networks. Target consumers through marketing who are current buyers, as well as target consumers who are not necessarily buyers yet. Showcase their all-natural, organic products compared to their competitors (and the allergen-sensitive benefits). Capitalize on current recalls of competitor's dog treats by picking up the consumers who switch from recalled brands (also US made). Threats Dog treats market expanding, prices are becoming competitive. Competitors have a more active presence and interactions online with consumers (i.e. Nutro).

16. Competitive Review

17. Direct Competitors & Positioning Competitors: The Honest Kitchen Zuke's Stella and Chewy's Nutro Sojo Blue Buffalo Positioning (for all competitors): Marketing healthy, natural, premium, gourmet, and speciality products with a focus on sustainable and eco- friendly methods that appeals to a specialty market. Premium Food accounts for 40% of Dog Food Sales (2010)

18. Indirect Competitors & Positioning Competitors: Greenies, Caesar, Pedigree Mars, Inc. Purina Nestle Hill's brands Colgate Palmolive Iams Proctor and Gamble Positioning (for all competitors): Top four companies account for 82% of sales Marketing focuses on the emotional aspect of having a pet and the model is focused at the mass market

19. The Honest Kitchen Marketing Dehydrated Pet Food Start with fresh raw whole foods and then dehydrate Health Benefits Food is medicine Helps with overall health, digestion, skin and coat, prevents ear infections, body weight and energy Natural vitamins, minerals and valuable phytonutrients are maintained Ingredients and Quality 100% Human grade Made in Human Food Facility, same food standards as human food No Genetically modified foods

20. The Honest Kitchen Marketing Eco-friendly: "Reducing Paw Print“ Conventional ingredients to certified organic 100% free range, antibiotic free, sustainable chicken Use all wild caught fish No genetically modified seeds or grains All manufacturing in North America Light weight shipping, reduces emissions Dehydration uses less energy than other processes like canning

21. The Honest Kitchen Vendor Pledge

22. Zuke’s Marketing Markets it's brand using a platform that consists of 6 specific beliefs: Healthier Pets make Happier Pets Nutrition fuels a healthy pet life Staying Active Adventure Together with your Dog Showing Devotion Be a devoted companion to your dog Healing Others Support Dog and Cancer Fund Living Green Pays employees to ride bikes or scooters to work Power offices using 100% Green electricity Boxes are 60% recycled Getting Involved Fundraising for pet shelters and animal rescue Supports Meet the Breeds, a dog and cat show in New York

23. Stella and Chewy’s Marketing “Pets deserve pure, simple, minimally processed food – the way nature intended”: Only the Good Stuff Stella & Chewy’s product is made with raw, naturally raised meat, poultry or fish, sourced from USDA-inspected facilities, without hormones or antibiotics Nutrition as Nature Intended Products are natural and raw Stickler’s for Safety Products have a seal that states that it went through the Secure-By-Nature food safety process A raw diet is better for pets Improves: o appetite and digestion o healthy skin and coat o Stamina o helps support a healthy immune system Principles:

24. Nutro Marketing Proven. Natural. Nutrition. Dog Food that is tailored to a dog's life stage, breed size, and health condition Premium natural ingredients with fortified vitamins and minerals Claim that their product is taste preferred by 7-10 dogs A small firm stool is guaranteed

25. Nutro Marketing Pet Food Safety and Quality Own facilities Make over 600 quality checks daily Inspected by FDA Good Manufacturing Practices, Good Hygiene Practices and Hazard Analysis and Critical Control Points Test every grain shipment for myotoxins At least one complete shutdown for in-depth cleaning and sanitation per week

26. Sojo’s Marketing Options: o grain free o gluten free o raw freeze-dried meat o just add water o add water and meat Human grade ingredients, USDA meat, no genetically modified foods Nutrient profiles for products Frequently asked question section on website

27. Marketing of Blue Buffalo Why BLUE? Because only BLUE is made with the unique combination of high-quality, natural ingredients plus exclusive LifeSource Bits. Nutrition Philosophy “Love them like family. Feed them like family.” What’s In Our Food and Why What’s Not In BLUE and Why LifeSource Bits LifeSource Bits are the small, dark kibbles mixed in with our BLUE dog and cat dry foods. They contain a precise blend of vitamins, minerals, and antioxidants selected by holistic veterinarians and animal nutritionists. To ensure that dogs and cats get the full benefit of these vital nutrients, LifeSource Bits are “cold- formed” to help preserve their potency.

28. Promotional Programs of "The Honest Kitchen" "Customer Rewards Program" Earn free coupons and rewards by sending in UPCs of any full size box of dog food "Animal Rescue Organizations" Approved organizations may qualify for a 30% discount Breed Rescues, Sanctuaries, Shelters and Foster Families associated with registered rescue organizations

29. Promotional Programs of "The Honest Kitchen" "Allies Program" "Allies" receive an Honest Kitchen discount on purchases, a free Honest Kitchen T-shirt, literature and access to product samples as well as a chance to participate in new product taste-tests "Non-profit Donations" Provides product samples, full-sized products and occasional monetary donations to a variety non-profit events nationwide Charity Galas, Walks, Raffles, Auctions, Sponsorships, Goodie Bag items and other community outreach programs

30. Promotional Programs of "The Honest Kitchen" "Honest Breeders Program" Work with responsible breeders They don't allow their products to be sold in stores that sell puppies or kittens Work with responsible breeders who work hard to place their puppies and kittens in loving homes Qualified and approved breeders are set up with a special discount code for online dog food purchases

31. Promotional Programs of "The Honest Kitchen" "Service and Working Dogs" Special Program for the following service dogs: o Search & Rescue, FEMA, Bomb Squad, Active Military, Police K9, Avalanche, Cadaver and Registered Service Dogs o Standard Working Dogs discount of 20% off MSRP o 30% off and occasional free products for active Working Dogs whose handlers allow the use of photos of their work and provide endorsements for promotional purposes

32. Promotional Programs of "The Honest Kitchen" "Working with the Veterinarian Community" Free Box of food, complimentary samples and literature and/or an Honest Kitchen hosted 'Lunch & Learn' Other The Honest Kitchen (thk) Blog Giving Back o "Charity of the Month“ Media Center o View recent media clips about the company and their products

33. Promotional Programs of "Zukes" Donates a portion of annual profits to Dog and Cat Cancer Fund Sponsor Events: Zuke's Fuel the Love Tour Dock Dog World Championship Hero Dog Awards Flyball NAFA CANAM Classic Skyhoundz World Canine Disc Championship Furry Scurry

34. Promotional Programs of "Stella & Chewy's" "Charitable Work" Friends of Barrington Dog Park Animal Rescue, Inc. Friends of First Run The Mayor's Alliance for NYC’s Animals Hope Veterinarian Clinic Central Park Paws Tri County Humane Society Broadway Barks Dog Habitat Inc. Animal Haven

35. Promotional Programs of "Stella & Chewy's" "In The Press" Huffington Post: The Blog The New Barker: Product Reviews Forbes: Leadership Pet Business The New York Times: Well Pets Dogster.com Pawdogs Pet Product News And 16 others

36. Promotional Programs of "Nutro" "My Nutro Rewards Program" Sign-up, receive savings, pet-health tips and the latest news via email Tailored pet information and articles News about promotions and events Insights into natural nutrition "Sustainability & Community Initiatives" "Room to Run" Dog Park Appreciation Project The National Disaster Search Dog Foundation "Rescue Bank" Pet Food Donation In-kind Donations

37. Promotional Programs of "Nutro" "Commitment to Veterinary Community" Continued research of pet nutrition to develop solutions and optimal nutrition that Veterinarians can recommend with confidence "Free Continuing Education Webinar" "Veterinary and Pet Owner Attitudes and Awareness Toward Natural Nutrition" "Nutro Company Breeder Program" Breeders receive special offers and information

38. Promotional Programs of "Nutro" "Nutro Pet Food Trainer Kit" Brochure about the Nutro Family of Products $5-off coupons for each pet parent $10-off coupon for any Nutro Dry Dog Food News & Press A Variety of Press Releases

39. Promotional Programs of "Sojo’s" "Breeders who use Sojo’s" List of breeders who use Sojo’s products "Sojo’s in the Media" Pet Business Magazine, Pet Product News, Pet Elite Magazine, Animal Wellness Magazine, etc. Press Releases & Product Photos

40. Promotional Programs of Blue Buffalo Create your own BLUE Trading Card o “Card’s of the Month” o Compare your Brand to BLUE o BLUE TV o Mailing List Sign-Up

41. Media used by “The Honest Kitchen https://www.facebook.com/TheHonestKitchen https://twitter.com/honestKitchen http://pinterest.com/honestkitchen/ http://www.youtube.com/HonestKitchen http://www.thehonestkitchen.com/thk-blog

42. Media used by “Zuke’s” https://www.facebook.com/ZukesPets https://twitter.com/ZukesPets/ http://pinterest.com/ZukesPets/ http://www.zukes.com/join-us/rss http://www.youtube.com/user/ZukesPets

43. Media used by “Blue Buffalo” https://www.facebook.com/BlueBuffaloAllNaturalPetFood https://twitter.com/bluebuffalo

44. Media used by “Stella & Chewy’s” http://www.facebook.com/stellaandchewys https://twitter.com/stellachewys

45. Media used by “Nutro” https://www.facebook.com/NutroProducts https://twitter.com/nutro http://www.youtube.com/user/thenutrocompany

46. Media used by “Sojo’s” http://www.facebook.com/pages/Sojos/100210990057533 https://twitter.com/sojospetfood http://www.youtube.com/user/sojos https://plus.google.com/108636661741092643568#108636661741092643 568/posts

47. Cloud Star Marketing Strategy

48. Marketing Strategy Unique Selling Proposition (USP) Made in the USA All Natural Ingredients No Artificial Colors, Flavors, or Preservatives Free of Corn, Yeast, Sugar, Salt & Soy Wheat Free and Low Fat Options Available At least 10% of net profits donated to non-profit organizations that benefit animals, women, children and the environment Primary Marketing/Business Challenge Increase Brand/Product Awareness

49. Pricing Strategy Original Natural Biscuits (16 oz.) $6.49 Soft & Chewy (6 oz.) $5.99

50. Competition Pricing Strategy Zuke's Grain Free Jerkey Bites Natural Dog Treats (6oz.) = $7.99 Blue Buffalo Health Bar Dog biscuits w/ chicken liver (16oz.) = $9.71

51. Competition Pricing Strategy The Honest Kitchen "Smooches" Low calorie, free-range chicken & cranberry natural dog treats 8 oz box = $7.99 Sojo's grain free lamb & sweet potato dog treats (10 oz) = $7.29

52. Distribution Plan Products can be found at pet food stores nationwide Select items can be found at pet food stores or supermarket pet food aisles Also available online at www.amazon.com www.kvvet.com www.cloudstar.com www.petfooddirect.com www.chewy.com www.sitstay.com www.valleyvet.com www.dogtoys.com www.wag.com www.drugstore.com

53. Distribution Plan By inquiring on Cloudstar.com, individuals can get more info about becoming wholesalers if they obtain a resale certificate Request Certificates can be completed by consumers who are unable to find Cloudstar products in their market of choice and returned to manager to show interest in product line

54. Recommended Positioning For pet owners who are looking for all natural pet food products, Cloud Star's Buddy Biscuits are organic, US made dog treats that are allergen free and contain nutritious and healthy ingredients for their dog(s).

55. Preliminary Marketing Objectives Gain Market Share Increase Brand Awareness Increase Sales

56. Advertising Copy Strategy Who the advertising is directed at o Dog owners looking for all-natural, healthy dog treats A promise of the basic benefit to the consumers o Promise is provided in the ingredients description and nutrition facts on the label The reasons why the promise is believable and can be delivered o The American Association of Feed Control Officials (AAFCO) regulates the ingredients

57. Differentiate From Competition After thorough research of Cloud Star and its competitors, Cloud Star’s pricing, marketing, and promotional strategies,as well as the product itself, are very similar to the competitor’s This may be something that the company wants to address to make themselves stand out more

58. Key Consumer Attributes to Focus On Target Customer o Roughly 2/3 consumer population is female o Age brackets of 21-30 & 46-55 o HHI > $60,000/year o Has children o Owns 2 or less dogs Product Attributes Ranked Most Important o Healthy o Nutritious o USA Made o Good For Teeth o All Natural

59. Market Research Analysis

60. Research Methodology Survey research obtained by conducting questionnaires and in-person interviews of dog owners in targeted central coast locations o San Luis Obispo o Morro Bay o Arroyo Grande o Pismo Beach o Los Osos o 183 Respondents in total survey

61. Demographics- Gender Total Population > 70% chance of buying Slight variation between Total and >70%, but difference is negligible Roughly 2/3 of the population that purchases treats is female

62. Demographics- Age There is no difference between Total Population and >70% o Both Total Population and >70% are consistent with the fact that the two main age demographics are 21-30 and 51-60 Total Population > 70% chance of buying **41-45 was not included as one of the answer options.

63. Demographics- Household Income There is no difference between the Total Population and >70% o Our consumer's HHI is over $60,000 per year 47.3% have HHI over $60,000 **Note: data taken from data filtered >70% chance of buying

64. Demographics- Number of Dogs There is no difference between Total Population and >70% o Majority has 1 dog o About 90% have 2 dogs or less 88.3% have 1-2 dogs ( >70% chance of buying) 89.9% have 1-2 dogs ( Total Population)

65. Where does the consumer shop for dog treats? Top 4 Locations o PetSmart or Petco o Grocery store o Local pet store o Large retail Store (e.g. Costco) People who are more likely to try Buddy Biscuits are more likely to buy at large pet store chains and local pet stores >70% chance of buyingTotal Population

66. Target Consumer Demographics: >70% chance of buying The target consumer... o is female (66.7%) o are in the age brackets 21-30 (32.4%) or 46-55 (29.5%) o has 1-2 dogs (88.3%) o has a HHI of over $60,000 per year (47.3%) o has children (58.3%)  Children are ages 16-25 (55.2%) **Note: All percentages were taken from data filtered >70% chance of buying

67. Types of Dog Treats Purchased Type of Treat % of Respondents Cookie/Biscuit treats 58.2% Chewy treats 36.7% Jerky Treats 38.0% Training treats 18.4% Treats with specific health benefits (i.e. dental care, eye health, coat health) 29.1% All Natural treats 27.8% Home made or home cooked treats 14.6% Other (please specify) 4.4% Other types of treats: o Cow Hooves o Rawhide Bones o Rope Toy Chews o Peanuts o Chew Bones o Dehydrated Meat o Bones Respondents were asked what types of dog treats they purchase for their dog. Type of treat most purchased = Cookie/Biscuit Treats (58.2%) **Data is from total sample

68. Features Customers Look For When Buying Dog Treats (Top 8) Top Features of Dog Treats: Healthy, Nutritious, Good for Teeth, US Made Those who have heard of Buddy Biscuits rate the attributes higher AttributeScoreAttributeScore Healthy95.2Healthy90.6 Nutritious92.2Nutritious88.0 US Made87.8Good for Teeth80.4 Good For Teeth87.4Premium Quality79.8 All Natural87.0All Natural79.4 Premium Quality84.8US Made79.0 Organic82.8Inexpensive76.0 No Artificial Preservatives82Organic75 Heard of Buddy Biscuits Total Sample

69. AttributeScoreAttributeScore Vitamin Fortified78.8Vitamin Fortified74.4 Company that gives back to the community 78No Artificial Preservatives73.6 Grain Free72.2Company that gives back to the community70 Helps Control Weight70.6Helps control weight67.6 Inexpensive69.6Grain Free65.2 Recommended by a Pet Store66Recommended by Pet Store62.2 Breed Specific Treats62Breed Specific Treats57.6 Fun Label59.6Fun Label55 Heard of Buddy BiscuitsTotal Sample Features Customers Look For When Buying Dog Treats (Bottom 8) Those who have heard of Buddy Biscuits rank Giving back to the community higher than those who have not

70. FeatureMeanFeatureMean All Natural86.2Price79.2 Donates to Animal Shelters83.4All Natural78.0 Price79.6Donates to Animal Shelters 73.0 Donates to Environmental Groups 73.2Donates to Environmental Groups 64.4 Donates to Women and Children 70.8Donates to Women and Children 64.0 Important Attributes in the Decision to Buy Buddy Biscuits Total Sample >70% Will Purchase Buddy Biscuits Likely users of Buddy Biscuits are rate donates to animal shelters higher than non-users

71. Product Attribute Recommendations Customers want a dog treat that is Healthy, Nutritious, All Natural Product, Good for Teeth, US Made, and Premium Quality The qualities that people want to see in Buddy Biscuits are All Natural, Donates to Animal Shelters/ Environmental Groups/ Women and Children The front of the box should clearly say that Buddy Biscuits has these attributes. The box should give a story on side panel that talks about how they donate to animal shelters and made in US.

72. Price per Package $ Spent Per Package% of Respondents $0-536.1% $6-1044.9% $11-1512.2% $16-204.8% >$202% Respondents were asked how much they typically spend on a package of dog treats. A majority of the respondents (81%) said that they spend $10 or less on each package of dog treats they purchase **Data is from total sample

73. Amount Spent on Dog Treats Per Month $ Spent Per Month% of Respondents $0-518.5% $6-1019.1% $11-1514% $16-2021.7% $21-255.1% $26-308.9% $31-405.7% $41-503.2% >$503.8% Respondents were asked about how much they typically spend total on dog treats per month A majority of the respondents (73.3%) pay $20 or less on dog treats per month **Data is from total sample

74. Amount of Dog Treats Purchased in a 3 Month Period Packages Purchased% of Respondents 0 - 3 packages48.6% 4 - 6 packages32.9% 7 - 10 packages12.9% >10 packages5.6% Respondents were asked approximately how many packages of dog treats they have purchased within the last 3 months A majority of the respondents (81.5%) have purchased 6 or less packages of dog treats in the last 3 months **Data is from total sample

75. Brand Awareness Top Heard of Brand = Iams Top Purchased Brand = Milk Bone Cloud Star's brand is significantly less known than any major dog treat brand. Buddy Biscuits has more awareness among users and non-users than Cloud Star Brands% People who have heard of the brand % People who have purchased the brand Iams90.4%26.2% Pedigree86.6%29.8% Milk Bone85.4%38.3% Purina82.8%27.7% Kirkland Brand81.5%29.8% Buddy Biscuits32.5%12.1% Cloud Star20.4%7.8% Top 5 Brands Compared to Buddy Biscuits and CloudStar

76. Brand Awareness Buddy Biscuits is heard of similarly to the mid 5 brands Buddy Biscuits has a greater purchasing intent by respondents compared to Canidae and Zuke's CloudStar still falls below average in both categories, heard of and purchased Brands% People who have heard of the brand % People who have purchased the brand Natural Balance57.3%25.5% Nature Select51.6%14.9% Nutro47.1%14.9% Canidae30.6%6.4% Zuke's26.8%9.9% Buddy Biscuits32.5%12.1% CloudStar20.4%7.8% Mid 5 Brands Compared to Buddy Biscuits and CloudStar

77. Brand Awareness Other brands respondents have purchased: Vitabones Trader Joe's brand Blue Buffalo Science Diet Newman's Bully Sticks Dogswell Greenies Stella and Chewy's Wellness Pure Bites Brands% People who have heard of the brand % People who have purchased the brand Sojos22.9%5.7% The Honest Kitchen21.0%---- Pinnacle18.5%3.5% Other1.9%11.3% Buddy Biscuits32.5%12.1% Cloud Star20.4%7.8% Bottom 4 Brands Compared to Buddy Biscuits and CloudStar * The Honest Kitchen was not included in the questionnaire for purchase intent

78. How are people hearing about their dog treat brand? (Top 5) There is no difference between where people find out about treats In-Store Ad's are the best way to reach new customers of Buddy Biscuits Source% of Respondents Source% of Respondents In-Store Ad45.6Friends43.7 Friends43.9Family42.3 Family42.1In-Store Ad37.3 Vet22.8Commercial28.9 Promotions In- Store 21.1Vet19.0 >70% Likelihood to Purchase Buddy Biscuits Total Sample

79. Source% RespondentsSource% Respondents Commercial17.5Promotional Material from pet store, like Petco 14.8 Online Ad15.8Online Ad10.6 Social Media10.5Social Media (facebook, pinterest or Yelp) 4.9 Emails from the treat company 3.5Emails from the treat company 3.5 Billboard1.8Billboard0.7 Total Sample >70% Likelihood to Purchase Buddy Biscuits How are people hearing about their dog treat brand? (Bottom 5) Likely users of Buddy Biscuits are more likely to find out about treats via Social Media than non-users Online Ad's reach a small portion of respondents but is an easy market to get in to.

80. Purchasing Intent Likelihood of Purchasing BB in the Next YearTotal Respondents Certainly Will Buy (99 chances in 100)12.0% Almost Sure Will Buy (90 chances in 100)7.0% Very Probable Will Buy (80 chances in 100)8.9% Probably Will Buy (70 chances in 100)9.5% Good Possibility (60 chances in 100)12.0% Fairly Good Possibility (50 chances in 100)12.0% Fair Possibility Will Buy (40 chances in 100)5.7% Some Possibility (30 chances in 100)8.2% Slight possibility (20 chances in 100)10.1% Very Slight Possibility (10 chances in 100)5.7% No Chance You Will Buy (0 chances in 100)8.9% >Good Chance of Purchasing BB 37.4% *After showing the Buddy Biscuits concept and competitive board Of the total respondents About 37% of all respondents shown the Buddy Biscuits concept would have a good chance of purchasing the product.

81. Purchasing Intent Of those who ranked the dog treat feature “gives back to the community” as Excellent/Very Good Quality These respondents were 14% more likely to purchase Buddy Biscuits as compared to all respondents Likelihood of Purchasing BB in the Next YearGives Back to Community Certainly Will Buy (99 chances in 100)14.5% Almost Sure Will Buy (90 chances in 100)13.2% Very Probable Will Buy (80 chances in 100)14.5% Probably Will Buy (70 chances in 100)9.2% Good Possibility (60 chances in 100)7.9% Fairly Good Possibility (50 chances in 100)13.2% Fair Possibility Will Buy (40 chances in 100)3.9% Some Possibility (30 chances in 100)3.9% Slight possibility (20 chances in 100)7.9% Very Slight Possibility (10 chances in 100)5.3% No Chance You Will Buy (0 chances in 100)6.6% >Good Chance of Purchasing BB 51.4% *After showing the Buddy Biscuits concept and competitive board

82. Purchasing Intent Of those who responded that they have heard of Buddy Biscuits If the consumer is aware of Buddy Biscuits, he/she is nearly twice as likely to purchase 59.7% of people who have heard of Buddy Biscuits have a good chance of purchasing Likelihood of Purchasing BB in the Next YearHeard of Buddy Biscuits Certainly Will Buy (99 chances in 100)25.0% Almost Sure Will Buy (90 chances in 100)13.5% Very Probable Will Buy (80 chances in 100)7.7% Probably Will Buy (70 chances in 100)13.5% Good Possibility (60 chances in 100)3.8% Fairly Good Possibility (50 chances in 100)3.8% Fair Possibility Will Buy (40 chances in 100)5.8% Some Possibility (30 chances in 100)3.8% Slight possibility (20 chances in 100)9.6% Very Slight Possibility (10 chances in 100)5.8% No Chance You Will Buy (0 chances in 100)7.7% >Good Chance of Purchasing BB 59.7% *After showing the Buddy Biscuits concept and competitive board

83. Price of Buddy Biscuits Price Level % of Respondents Too High 27.4% Just Right 70.7% Too Low 1.9% Respondents were shown the Buddy Biscuit concept board with product size and pricing, and also the competitor’s products with their sizes and pricing. A majority of the respondents (70.7%) found that Buddy Biscuits is priced just right **Data is from total sample

84. Implications for Brand Positioning Among those likely to try, the charitable component is important to them Advertise about giving back to community on: o Packaging o Social media sites o In-Store Ads Giving Back to Charity is Important Respondent TypeGood chance of buying BB in the next year % of Total Respondents that agree the trait is good Total Respondents37.4%-------- Giving Back Respondents51.4%24.4% Heard of BB Respondents59.7%19.3%

85. Perception of the Quality of Dog Treats Cloud Star ranked the highest quality among those who have heard of Buddy Biscuits Brand awareness is vital BrandsMean Rating (Heard of BB)Mean Rating (Total Sample) Cloud Star7869.2 Nutro7670.6 Natural Balance75.674.8 Nature Select75.673.2 Zuke's7266.8 Canidae70.867.2 Iams6871 Pinnacle67.664.2 Milkbone65.870.4 Kirkland Brand6467.6 Pedigree63.869.8 Purina6268.4

86. Media Plan

87. The target customer for Buddy Biscuits is a female between the ages of 46 and 55 with a HHI of over 60,000 per year. This person also highly values a company that donates to non-profit organizations. Areas to place media: In-Store Advertisements Specialty Magazines Public Relations o Non-profit organization websites for animal shelters, environmental groups, and groups that benefit women and children Google AdWords Social media websites o "In their use of technology, the youngest Baby Boomers (ages 45-55) are nearly as likely to be online (and to have a home broadband connection) as younger adults" http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/

88. In Store Advertisements Awareness is key for Cloud Star's success o Research shows that brand awareness leads to high brand rating for Cloud Star o Get the brand name out there Recommendations o In-store samples  "Costco Approach" - give those with dogs a free sample in retail locations o Displays  "Stand-up displays attract over 60% more business than product presented on the shelf"

89. Print Advertisements Special interest magazines o Dog Fancy o Animal Wellness o Family Dog Newer, upscale pet-specific magazines o Bark o Modern Dog

90. http://www.media-brokers.com/Magazine/RateCardCMG/6856/21/Akc-family-dog.aspx National Magazine Cost

91. Public Relations Cloud Star PR o Philanthropic o Healthy o Made in US Recommendations o Seek free advertising on non-profit organization's websites  Cloud Star donates to organization; organization returns the favor via free advertising on its site o Special Events  “Cloud Star 5K-9” A 5k for dogs and their owners Proceeds benefit local animal shelters Creates brand awareness

92. Benefits (taken from website) o Effective  Advertising on the most used search engine worldwide and on our network is an effective way to drive more people to your website and attract more customers. o Transparent  With AdWords you always know what you get for your money. There are many tools and reports to tell you what is working and how you could further improve your campaign. o Flexible  You can fine-tune virtually all aspects of your campaign at any time. For example, you can change your budget, ad texts, keywords, geographic targeting, the days and times your ads will appear, and many more settings.

93. Google AdWords Budgeting Pay only for results o With AdWords you're charged only if someone clicks on your ad and lands on your website, not when your ad is displayed. In other words, you only pay when your advertising works. Start with any budget o How much you invest is up to you – there are no minimum budget requirements and no minimum terms. o For example, you can start with a daily budget of five dollars and a maximum cost of ten cents for each click on your ad. And, you can change those settings online at any time.  Suggested price $1,000.00 = 100,000 clicks o http://www.youtube.com/watch?v=tx2L6EGa9DY - How to use AdWords

94. Social Media Facebook o The Honest Kitchen has over 150,000 likes o Over the last 6 weeks, The Honest Kitchen gained over 12,000 new FB likes and consistently had 2,500-5,000 people talking about their brand o Cloud Star gained only about 200 new likes in the same time period o Cloud Star had 100-300 people talking about their brand o Nutro, THK, and Zuke's all had over 1,000 people talking about their brand through interactions on the page (interactive posts, pictures, shared links via related websites, etc.) Twitter o Companies like The Honest Kitchen which have over 5000 followers have multiple tweets every day. o Cloud Star Tweets only once a day or every other day o THK and Nutro ask questions to their followers to keep them engaged o Cloud Star is following 11 while THK follows nearly 1500 pages.

95. Social Media YouTube o Cloud Star's presence on YouTube is very small o It may not be the best platform to market a dog food company, but there is still potential there o (See recommendations on next slides) Pinterest o Amongst Cloud Star and its competitors, Zuke's is the only brand with a Pinterest page o However, the search words "Buddy Biscuits" and "Cloud Star" show many Pins from different pet-related Boards

96. Recommendations for FB and Twitter Facebook o Utilize Facebook to help increase brand awareness by inviting customers to post a photo on their FB page of their dog eating a Buddy Biscuit treat  Ex) Every photo posted, Cloud Star will pledge to donate a box of its treats to an animal shelter o Free coupon offered for "Liking" page (BOGO, $1 off, etc.) o See Honest Kitchen "Try a free sample" offer Twitter o Tweet at least three times a day o Ask followers questions. Ex: Tweet pictures of your dog? What year did Cloud Star begin? Do you have a dog that looks like another species, if so post a pic. o Follow more pages and tag them in posts. "@"

97. Recommendations for Youtube and Pinterest Youtube- create videos people want to watch o Potential Videos  "How It's Made- Buddy Biscuits"  Industry Expert talking about benefits of Cloud Star products  Philanthropic Video- where donations go and who they benefit Pinterest o Create a Pinterest page to gain more brand awareness  Boards with: Funny dog pictures Customers using product Philanthropic endeavors

98. Questions?