Omega Paw Case Study
Omega Paw Inc.Marketing PlanExecutive SummaryThe following plan outlines the marketing strategies for Omega Paw Inc.’s (Omega), “Self-Cleaning Litter Box” for cats.  In the next few years, the cat population is expected to grow at a rate of 3.6%.  Omega has had remarkable sales levels and secured a great market share in their first year, but they would like to grow their business by expanding their marketing initiatives.  There are similar products available which are comparable in price, but not as efficient.Omega has four alternatives to increase their sales and distribution:Increasing selling to pet storesRevisiting their mail order/TV campaignSelling their product in grocery storesSelling their product in mass distribution outletsOur recommendation is that Omega Paw pursues selling their product through mass distribution outlets. This option has the broadest consumer base and highest sales potential.The contingency plan consists of selling in grocery stores, however it’s costly.  For now, Omega should pursue the mass distribution outlets and expand their social media presence.  This option is the best value for each dollar spent, allowing Omega to reach the greatest number of customers and maximizing their potential sales.
Problem StatementMichael Ebert, president of Omega, has achieved considerable success in the company’s first year with its product the “Self-Cleaning Litter Box” for cats.  Omega needs to determine the best approach to advertise and distribute their product to aggressively achieve market penetration and increase sales.   Company ObjectivesThe sales objective of Omega is to continue its growth trend and increase market share by reaching sales targets of $1.7 million by December 2012, $3.0 million by December 2013, and $5.7 million by December 2014.Company BackgroundTwo years ago, Mike Ebert came up with the idea of the Self-Cleaning Litter Box after looking after his brother and sister-in-law’s cats for the weekend.  He created Omega, developed a prototype, and after four months of advertising had pre-sold 2,500 units to be shipped directly to the consumer when ready. Unfortunately, production issues delayed delivery of the product by a few weeks. Omega decided to change their tactics from mail order to distributing through Canadian Pet Distributors (CPD) directly to pet stores. CPD continued to sell Omega’s original prototype to various pet stores, and negatively impacted the company’s reputation.  In December 2011, Omega’s improved litter box was ready for sale and they started looking for US distributors.