Essay about Omega Paw Case

Words: 2372
Pages: 10

Marketing Management-MKT 4210
Omega Paw Case
February 10, 2011

Executive Summary Omega Paw is a corporation, which the owner/inventor, Michael Ebert, sells the “Self Cleaning Litter Box.” Michael aspires to reach goals of future sales of $1.7 million by December 1996, $3 million by December 1997, and $5.7 million by December 1998. With the cat population continuously rising as well as his product being the first to be introduced in the United States, these goals are not farfetched. The criteria that were taken into consideration are the number of grocery stores, the product in the consumer’s mind, the costs required, break even analysis in units and dollars, the cat population, and the capacity that Omega’s manufacture can
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“Quick Sand” is competitively priced at $29. Smart Inventions bought the product in 1996 and launched an extensive media campaign where they spent $200,000 to $300,000 per week for six months which in turn they gained exposure through Canada and the United States. The last direct competitor, “Lift and Sift” retails at $29. They have limited exposure with advertising; however they benefited from “Quick Sand’s” advertising and ended up in mass distribution outlets like Wal-Mart.
Their indirect competition are the basic model boxes that retail at $10-$15, sold at numerous locations, and represent 90% of the litter box market. Although these boxes could be bought in a variety of sizes and colours, compared to what is available now, such the self cleaning litter box, these traditional boxes were awkward, messy and smelly.
Lastly, “Litter Maid” was also on the market which was an automatic litter box, that was hassle free, had benefits as well as warranty and was heavily advertised on TV and in national magazines. This litter box could be bought via mail order at $199USD. Internal Analysis Strengths Omega Paw’s strengths include the fact that they have a strong foundation to start with, seeing as only after being in business for one year, that they have sales of $1 million. Their distribution channels throughout North