Chewy Campaign
Chewy.com was founded by Ryan Cohen and Michael Day in June 2011. Their headquarters is located in Dania Beach, Florida and now has 17 locations in total over the country. Chewy now has over 2,000 pet brands all at a click of a button. This online pet store is one that guarantees customer satisfaction and allows any pet owner to get their pets essential needs. Cohen and Day pitched their company out to many firms, but Larry Cheng from Volition Capital was one of their first investors. The three met in 2012 and Cheng asked the two if they would be able to make $100 million in sales. Six months later, the business did better than that and soon later received a $15 million investment in Chewy. Chewy now has 16.6 million active customers which is an increase of 4.6 million customers year over year. Net sales in the past month has gone up to $1.69 billion. Their auto-ship sales was $1.16 billion of their total net sales.
*This project was done independently with a group for an advertising class.
Scope
Media Objectives:
Paid social media ad strategies and Organic content theme strategies for social portfolio
Augmented Reality (AR) tactic
Search Engine Marketing (SEM)
Web banners
Out Of Home (OOH)
Native advertising tactic
Communication Campaign Objectives:
Increase brand awareness with pet parents
Encourage services trail
Maintain repeat purchases
Market Analysis
Chewy.com is a part of the pet food e-commerce industry. COVID-19 pandemic has impacted the e-commerce market in a positive way as reported by established industry players.1 In the second quarter of 2020, e-commerce sales reached $211.5 billion in the U.S, or 16.1% of total retail sales in the U.S.. This amount represents a 31.8% rise from the first quarter of 2020. Pet food and other pet products have contributed about 10% of e-commerce sales, at around $10 billion. Looking towards the future, it's predicted that in 2024 e-commerce will account for 34% of the U.S. pet market.
Therefore, due to technological advancements and rising pet adoptions, the market continues to grow.2 Mobile adaptability allows for better customer experience with the brand, and single-touch purchase options. Moreover, user-friendly web pages and mobile apps have increased the popularity of e-commerce websites.
Competitors
Target Market Analysis
The demographic we are focusing on is new parents who need the convenience of ordering their pet food, medicine, and toys directly to their door and the growing category of younger generations who truly treat their pets as members of the family.
Demographics
25-40 age range, all genders
Social media heavy- Facebook is primary social media site
Convenience factor- don't want to go into store to lift heavy items/helps to go around their work schedule
Households with incomes of $50,000 or more.
Psychographics
There are three dimensions of pet ownership that can help segment pet owners’ buying behaviors:
Attachment: describes the degree of affection that exists between an owner and his/her pet.
Interaction: is defined as the two-way partnership in which both owner and pet adjust their behavior to that of the other. It also includes the owner’s willingness to incorporate pets into his/her life and the pet’s role in the owner’s social network.
Human substitute: refers to the role a pet plays in the owner’s life (e.g., substitute for a child, spouse or friend).
Pet parents placed importance on health/nutrition, quality and freshness
Their Values: social acceptance, comfortable life, security, excitement.
