Petco
PETCO is an industry leading health and wellness company focused on improving the lives of pets and pet parents. They are a key player in the US pet care market; however, success in the US never guarantees success abroad. Knowing this, PETCO identified CASTUS as the best partner for helping strategize and execute an international expansion plan, resulting in the successful entrance and growth of the brand in Canada.
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They Had Several Needs
Identify Options
At the time, the global pet care market was estimated to reach $155.8 billion USD by 2020 and was projected to be worth more than $197.6 billion by 2027.
While PETCO’s brand is well-established in the U.S and widely acclaimed for innovation and excellence, the company had not previously focused on international expansion.
With global growth projected to be 3.5% CAGR, PETCO saw an opportunity to identify a path for global expansion, increase revenue, and expand operations.
There were several new markets for PETCO to consider as their launchpad for international expansion, while ensuring the most efficient use of resources abroad.
Strategy for Entry
It was determined that using an established retailer to sell their products provided the most potential for success, but they needed help identifying and cultivating a partnership with the right retailer(s) in the new market.
Execution & Ongoing Support
Once the new market was identified and an entrance strategy was solidified, they still needed a team of experts to execute, refine, and continue supporting their efforts abroad while helping manage the relationship with their new retail partner.
The CASTUS Approach
PETCO engaged CASTUS to help identify opportunity and drive growth. We applied our three-step approach to Business Development, which aligned PETCO stakeholders with a solid strategy, ensured the team was positioned for success, and ultimately drove new business and top-line sales.
Strategy
Identify impactful data such as macro-trends and qualitative insights. Draw upon real-world experience and global connections to reach sound conclusions.
Readiness
Ensure products, people, and processes are capable of supporting new business. Verify the business can scale as new opportunities are identified and secured.
Execution
Actively pursue opportunities and pitch potential customers. Close sales and establish partnerships that provide immediate value and sustainable growth.
Strategy
Identify impactful data such as macro-trends and qualitative insights. Draw upon real-world experience and global connections to reach sound conclusions.
Strategy
CASTUS completed a global market assessment and identified Canada as the most opportunistic market. We outlined a strategy to partner with well-established retailers that offered Pet Care but were lacking the high-quality and innovative product assortment needed to capture market share in a growing category.
Specific Deliverables:
- Global Market Sizing & Assessment
- Historical & Future Trend Analysis
- Global Retailer List & Profiles
- Competitive Brand Identification
Readiness
CASTUS crafted a unique pitch for Canadian Tire, one of Canada’s largest and most trusted retailers, that ultimately came to life in a shared vision and transformed the Pet Care department to deliver a best-in-class shopping experience with the goal to become “Canada’s Pet Store.”
Specific Deliverables:
- Go-to-Market Strategy (incl. Customer Profiling)
- Value Proposition + Pitch Presentations
- Recommended Retail Positioning (incl. pricing strategy)
- Compliance and Regulatory Advisory
Execution
Since 2017, CASTUS has led business development efforts to fully realize the partnership potential between Canadian Tire and PETCO. The CASTUS team actively leads or plays a critical role in the following:
- Bi-Annual Category Pitch and Product Selection Sales Forecasting and Financial Planning
- Term Sheet Negotiations
- Strategic Meeting Facilitation
- Business Development Planning
- Supply Chain and Operations Support
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Results
CASTUS helped PETCO identify, prioritize, and successfully grow their global market share, leading to tens of millions in revenue growth over the last 5 years. We helped them identify Canada as a target market, partner with the appropriate retailer, and continue to manage their ongoing relationship, which has generated continued value for PETCO. By the end of 2022, CASTUS will have helped PETCO generate a total of $43 million in incremental revenue driven by partnership with, Canadian Tire.
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