978-0134129938 Case Section3 PetLovers

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Cats, Kibble, and Cable TV

Background and Goal

You were hired by PROSPEROUS PETS, a small regional chain of boutique pet care stores. PROSPEROUS PETS focuses on serving dog and cat

owners for all of their pet needs, including: pet si$ng, pet training, grooming, toys, and food. PROSPEROUS PETS tends to serve customers who

consider their dogs and cats “surrogate children,” and, in turn, are willing to spend top dollar on quality services and products.

PROSPEROUS PETS is preparing to launch its first television advertising campaign. The top management team has whi(led the list of cable

channels to potentially advertise on down to 11. Your task is to analyze additional information about the viewers of these 11 stations and come

up with a short list of cable channels that you believe will be best for PROSPEROUS PETS. To aid you in your task, management handed you three

reports generated from GfK’s Media Mark Report tool. The first report deals with the quantity of pets owned by viewers of each channel, the

second report deals with the types of pet services used by channel viewers, and the final report is about where people buy their pet food.

The Data

The data in each of the three reports can be interpreted in a similar manner.

The (mils) column is the estimated number (in millions) of people or U.S. households who exhibited the target behavior in the row and

column. For example, 15.1 million U.S. adults report watching the cable channel AMC as well as own 1 dog.

The Vertical % column is the estimated % of all people in a column who watch the channel reported in the table’s row. For example, of all

people who own 1 dog, 23.8% of them also report watching AMC.

The Horizontal % column is the estimated % of all people in a row who also exhibit the behavior reported in the table’s column. For

example, of all people who watch AMC, 29.7% of them own 1 dog.

These three pieces of information can be informative on their own. However, they can also be used to calculate other useful metrics.

Task 1: Understanding the Data

Use the information provided in Table 1 to answer the following questions:

1. If someone owns a dog, what is the % chance they watch Fox News? What if they own a cat?

a. ANSWER:

Has dog = 63.8+39.5+5.8 = 109.1

Has cat = 29.0 + 21.4 + 5.6 = 56

2. Which channel is much more likely to be watched by someone with 4 or more dogs than an average American? What is the INDEX value

for this channel? An INDEX value of 100 is the benchmark for an average American adult to have 4 or more dogs.

a. ANSWER:

3. Which channel is much LESS likely to be watched by someone with 4 or more cats than compared to an average American? What is the

INDEX value?

a. ANSWER:

4. If we wanted to reach the absolute most 2 to 3 dog owning households by advertising on only a single cable channel, which channel

would we pick?

5. Based on these results, is it fair to say that Animal Planet watchers are more likely to own either a cat or dog compared to the national

average?

6. Regardless of the number of dogs or cats someone owns (including zero!), about how many U.S. adults in total said they watch the

Cooking Channel?

a. ANSWER (this can be answered from any of the 6 sets of columns):

Use the information provided in Table 2 to answer the following questions:

1. Your friend assumed that Animal Planet is the best channel for finding pet owners who use pet services frequently. Does your data

support or contradict her belief? Why?

Use the information provided in Table 3 to answer the following questions:

1. Assuming people only buy from one of the three options, how many people in total bought their pet food from a discount

store, a pet specialty store, or directly from their veterinarian? What % of this total bought from their veterinarian?

2. Which cable channel had viewers with the largest % of their pet food shopping done at a veteranarian?

Discussion and Debate:

1. Based only on the information provided, which 3 cable channels would you recommend as the best choices for promoting the business?

Which 3 cable channels do you think are the poorest ‘t?

2. What other additional information would you like to have so that you could make a more informed recommendation? Why is it

important? How could you ‘nd out this information?

3. If PROSPEROUS PETS told you that its services were much more profitable than its product (toys, food, etc.) sales, would that change

your recommendation? Why or why not?

TABLE 1: Pet Ownership and Cable Channel Viewing

dog

2-3

dogs

dogs 1 cat

2-3

cats

Target

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

Total 63.8 100.0 26.9 39.5 100.0 16.7 5.8 100.0 2.4 29.0 100.0 12.2 21.4 100.0 9.0 5.6 100.0 2.4

HH subscribes to Cable 31.4 49.3 26.9 16.8 42.4 14.3 1.9 32.9 1.6 14.4 49.5 12.3 9.7 45.4 8.3 2.1 37.0 1.8

AMC 15.1 23.8 29.7 9.2 23.3 18.1 1.3 21.8 2.5 6.9 23.9 13.6 5.0 23.2 9.7 1.4 25.3 2.8

Animal Planet 15.5 24.2 29.8 11.4 28.9 22.0 1.6 27.5 3.1 7.5 25.8 14.4 6.0 28.0 11.6 1.6 27.9 3.0

Comedy Central 9.8 15.4 28.9 7.1 17.9 20.8 0.9 15.0 2.6 4.5 15.4 13.1 3.9 18.3 11.6 0.9 15.3 2.5

Cooking Channel 8.4 13.2 26.8 4.9 12.5 15.8 0.9 15.7 2.9 3.4 11.7 10.8 3.1 14.4 9.9 0.7 12.0 2.2

Discovery Channel 19.3 30.3 28.3 13.4 33.9 19.6 1.8 32.0 2.7 9.0 31.2 13.2 7.0 32.5 10.2 1.7 30.1 2.5

Food Network 16.2 25.4 28.6 9.7 24.5 17.1 1.5 26.4 2.7 7.0 24.2 12.4 5.6 26.0 9.8 1.3 22.5 2.2

Fox News Channel 19.1 30.0 28.0 11.3 28.7 16.6 1.6 28.6 2.4 8.3 28.5 12.1 5.9 27.8 8.7 1.4 25.7 2.1

History Channel 21.4 33.6 27.9 15.2 38.5 19.8 2.2 37.7 2.8 9.9 34.2 12.9 8.2 38.5 10.7 2.2 39.2 2.9

HGTV 14.8 23.2 30.8 8.6 21.9 18.0 1.2 20.5 2.5 5.8 20.1 12.1 4.9 22.9 10.2 1.2 21.0 2.5

Syfy 10.0 15.6 25.6 7.9 20.0 20.3 1.6 27.0 4.0 5.2 17.9 13.3 4.4 20.5 11.3 1.3 23.3 3.4

Weather Channel 19.6 30.7 26.4 12.5 31.7 16.9 2.0 34.7 2.7 9.5 32.7 12.8 6.8 31.6 9.1 2.0 36.0 2.7

TABLE 2: Pet Service Usage and Cable Channel Viewing

Has

Pet

Insur

ance

Used

Pet

Day

care

Used

Pet

Groo

ming

1 Vat

Visit

2-3

Vet

Visit

Vet

Visit

Target

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

Total 7.1 100.0 3.0 3.5 100.0 1.5 31.9 100.0 13.5 34.8 100.0 14.7 42.1 100.0 17.8 24.1 100.0 10.2

HH subscribes to Cable 3.3 46.5 2.8 1.6 46.7 1.4 16.1 50.4 13.7 16.8 48.3 14.4 19.9 47.3 17.1 11.0 45.8 9.4

AMC 1.5 21.8 3.0 0.9 26.0 1.8 7.9 24.7 15.5 7.8 22.4 15.3 10.2 24.2 20.1 5.3 22.1 10.4

Animal Planet 1.6 23.1 3.2 0.7 19.0 1.3 8.0 25.1 15.5 8.3 23.7 15.9 11.1 26.4 21.5 6.6 27.5 12.8

Comedy Central 1.1 15.6 3.3 0.7 19.5 2.0 5.4 16.9 15.9 5.5 15.9 16.3 7.1 16.8 20.9 4.4 18.1 12.9

Cooking Channel 0.8 11.7 2.7 0.4 11.8 1.3 4.2 13.1 13.4 4.6 13.2 14.6 5.7 13.4 18.1 2.9 12.1 9.3

Discovery Channel 2.0 28.3 2.9 1.1 31.2 1.6 10.4 32.5 15.2 10.5 30.1 15.3 13.9 33.1 20.4 7.8 32.4 11.4

Food Network 1.8 25.2 3.2 1.1 31.5 1.9 8.7 27.4 15.5 8.6 24.8 15.2 10.8 25.7 19.1 6.2 25.8 11.0

Fox News Channel 1.8 25.8 2.7 0.9 24.7 1.3 10.2 31.8 14.9 10.4 29.8 15.2 12.4 29.5 18.2 6.9 28.8 10.2

History Channel 2.4 33.7 3.1 1.2 34.5 1.6 11.9 37.4 15.6 11.9 34.1 15.5 15.3 36.3 19.9 8.8 36.5 11.5

HGTV 1.6 22.3 3.3 0.8 22.4 1.6 8.3 26.0 17.3 7.5 21.6 15.7 9.6 22.7 19.9 6.2 25.7 12.9

Syfy 1.4 20.1 3.7 0.4 11.8 1.0 5.3 16.6 13.6 6.0 17.1 15.3 8.0 19.1 20.7 4.2 17.2 10.7

Weather Channel 1.9 26.4 2.5 1.0 27.9 1.3 10.6 33.2 14.3 10.7 30.9 14.5 13.4 31.9 18.1 8.4 34.7 11.3

TABLE 3: Pet Food Buying and Cable Channel Viewing

Disc

ount

Stor

Pet

speci

alty

shop

Vete

rinar

ian

Target

(mil

Vert

Hor

(mil

Vert

Hor

(mil

Vert

Hor

Total 22.8 100.0 9.6 53.2 100.0 22.5 10.2 100.0 4.3

HH subscribes to Cable 10.6 46.3 9.0 25.9 48.6 22.1 5.2 50.8 4.4

AMC 5.9 25.8 11.5 12.2 22.9 23.9 2.4 23.1 4.6

Animal Planet 5.9 25.7 11.3 13.6 25.5 26.2 2.8 27.1 5.3

Comedy Central 3.6 15.9 10.7 9.0 16.9 26.6 1.7 16.8 5.0

Cooking Channel 2.9 12.6 9.2 6.9 13.1 22.2 1.3 13.1 4.3

Discovery Channel 7.5 33.0 11.0 17.0 32.0 24.9 3.4 33.0 4.9

Food Network 5.3 23.3 9.4 13.7 25.8 24.2 2.4 23.4 4.2

Fox News Channel 6.7 29.2 9.8 15.3 28.8 22.4 3.3 31.9 4.8

History Channel 8.6 37.8 11.2 18.2 34.2 23.8 3.7 36.2 4.8

HGTV 5.2 22.8 10.8 12.5 23.4 26.0 2.5 24.3 5.2

Syfy 4.1 18.0 10.6 9.0 17.0 23.2 2.0 19.4 5.1

Weather Channel 7.7 33.8 10.4 16.1 30.3 21.7 3.5 34.0 4.7