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KONG COMPANY 2020 MARKETING PLAN

Group 1: Kate, Kim, Andres, & Dylan

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Dogs and cats need to play!

KONG Company develops and produces lines of dog and cat toys.

Its primary and best-selling toy is KONG, a virtually indestructible chew toy made of natural rubber. KONG toys are the best of the best in quality, originality, variety, safety, and value. They satisfy a dog’s instinctual need to chew and play. KONG toys are not only fun, but also help solve common issues like chewing, teething, separation anxiety, boredom, digging and barking, crate training, and more.

• Produces KONG toys in several sizes and chewing styles

• KONG can be stuffed with food, treats, or peanut butter, or KONG “Easy Treat.”

• KONG Company also produces a line of cat toys, and one Kitty KONG to satisfy cats’ natural

instincts to stalk, hunt, and capture while delivering a healthy dose of exercise.

KONG is primarily a B2B company, but also sells B2C - offering a new KONG Box Subscription.

KONG sells their products wholesale to retailers, but actually targets consumers in its marketing efforts. They do this to: build awareness for the products, educate the consumer, and create consumer demand for the products.

• They do sell B2C, but only recently with the launch of the New KONG Box, a subscription box service for dogs (the box contains training toys, treats, recipes, etc.)

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Business Objectives

• Increase B2B KONG dog product sales by 8% qtr to qtr, year to year

• Increase awareness for KONG’s newest product release, KONG BOX by 20% (a Subscription Box Service for pets)

• Increase subscriptions to KONG Box by 5% qtr to qtr, year to year

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Audience Analysis and Segmentation

• Men & Women 18-24

• Men & Women 25-34 Millennials (largest audience)

• Men & Women 35-44

• United States

• Men & Women 18-24

• Men & Women 25-34 Millennials (largest audience)

• Men & Women 35-44

• United States

Interested in purchasing or adopting a new cat or kitten

Looking for opportunities, may be planning ahead and researching breeds, care, potty training, feeding, and what to expect. Will be excited to shop for new cat or kitten.

Current (adult) cat owners

Love their cat, is part of the family, and is treated as such. Will pay more money for a better toy, safer toy, a toy that makes their cat happy. Keeps their cat healthy, vet visits, has a pet sitter.

New kitten owners

Interests: very excited about new kitty, ready to shop for it, learn about how to feed it, teething, chewing, potty training, scratching furniture, etc., watching videos and research online for best toys and products, foods, for a kitten.

Interested in purchasing or adopting a new dog or puppy

Looking for opportunities, may be planning ahead and researching

dog breeds, care, potty training, feeding, and what to expect. Will be excited to shop for new dog or puppy.

Current (adult) dog owners

Loves their dog, part of the family, and treated as such. Pays more for a better, safer toy that makes their dog happy. Already Knows about potty training, and keeping dog healthy.

New puppy owners

Excited about new pup, ready to shop, learn how to feed it, teething, chewing, potty training, scratching furniture, etc., watching videos and research online for best toys and products, foods, for a puppy.

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DOG AUDIENCE:

CAT AUDIENCE:

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New Puppy Owner Persona:

Name: David Johnson

Marital/Family status: Single

City: Dallas, Texas

Occupation: Marketing Consultant

Language(s): English

Household Income: $55,000+

Purchasing Habits: Frequent Shopper

Age: 28

Life Stage: Employed Adult

Online Behaviors:

David is frequently on social media, especially Instagram. He enjoys following pet-owner blogs for tips and tricks.

Previous Engagement with the Brand:

David has physically seen a KONG toy before, but doesn’t own one or know it by name.

A Day in the Life�of the Customer: David works from 9-5, and on his off-time, he enjoys exercising, socializing around his friends, and meeting new people. David also just purchased a puppy named Chester. He enjoys training him after work or whenever he has free time. He always takes him on his morning jogs and Chester is so loveable that David’s friend’s always ask him to take Chester whenever they hang.

Goals and aspirations: David hopes to attain a promotion as a Senior Marketing Consultant at his company. He also hopes to have his dog fully trained soon so they he feels comfortable leaving it at home.

Favorite Brands: Patagonia, Apple, Chick-Fil-A, Whole Foods, Swiss Army, Timex, Netflix, Barkbox, Purina, PetsMart

Challenges/frustrations: He can’t leave the house without putting Chester in his crate because he will chew on and destroy everything in sight- teething.

How KONG can help: KONG is chew toy built for teething and built to last. A KONG filled with any kind of food, such as peanut butter, can not only provide something for your new pet to chew on, but can keep them busy for hours. It is a perfect toy for dogs who excessively chew on furniture, shoes, walls, doors and anything else a dog can reach.

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Adult Dog Owner Persona:

Name: Leah Davidson

Marital/Family Status: Married, Kids

City: Austin, Texas

Occupation: Self Employed, Digital Marketer

Language(s): English

Household Income: $75,000+

Purchasing Habits: Shops Online/Amazon, BrickMortar

Age: 40

Life Stage: Employed Adult

Online Behaviors:

Depends on her cell phone for almost everything. Has a Facebook, Instagram, and Pinterest account. Watches YouTube for DIY videos and computer and software learning.

Previous Engagement with the Brand:

Has known about KONG since her dog was a pup. Owns a pink one (from puppyhood), and a classic red KONG. Stuffs it with dog treats.

A Day in the Life of the Customer: Up early, takes the dog out to pee, feeds dog, gets kids out the door to school. Works from home, exercises in the afternoon before running errands (grocery store, dry cleaner, bank, etc.). Take dogger for a walk or playtime, picks up kids from sports or school. Helps with homework. Quality time with kids, husband, family dog. Plans, preps, and cooks dinner for 4. Settles in for the evening. Takes dog out1 last time.

Goals and aspirations: Working from home, maintaining financial success at her job, acquiring new customers, Work/Life balance, staying fit, staying healthy. Raising 2 healthy and well-adjusted children.

Favorite Brands: Whole Foods, HEB, PetsMart, Petco, Walmart, Macy’s, Chewy.com, Apple, Adobe, Old Navy, Gap.

Challenges/frustrations: Sometimes when she is gone more than 4 or so hours, she worries about the dog. Is she ok? Is she bored? Does she need a potty break?

How KONG can help: Leah can stuff some cookies in it and the dog is just fine for an hour or so on her own. The dog loves chewing on it, especially when there are treats inside. Occupies her, keeps her from being bored, helps keep the peace and quiet when mom is working or on a professional call.

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New Kitten Owner Persona:

Name: Karen Duque

Marital/Family Status: Single

City: Austin, TX

Occupation: Part time Starbucks Barista

Language(s): English

Household Income: $20,000 / yr

Purchasing Habits: Spends all her money on her pets

Age: 20

Life Stage: College Student

Online Behaviors: Subscribes to a lot of “loot box” services. Spends ample amount of time on social media as well.

Previous Engagement with the Brand: When Karen was a kid, her family used KONG brand toys to play with the family dog, Buster.

A Day in the Life of the Customer:

Karen starts her monday off eating breakfast with her kitten. After her classes, where she definitely thought about her kitten the whole time, she comes home to mutilated couch cushions. Totally not cool kitty! She’s tried getting the kitten toys in the past, but could never get the kitten to stay interested.

Goals and aspirations: Karen is currently getting a bachelor’s degree in marketing and hopes to eventually become a social media strategist.

Favorite Brands: Lululemon , Goodwill, PetsMart, Walmart, PetCo, Buffalo exchange, Jolly Pets

Challenges/frustrations: Karen can not stand coming home to destruction. She needs to find a way to keep that kitten entertained.

How KONG can help: KONG’s newest line-up is designed just for cats. With all the things you loved about our dog toys, you can now use KONG to keep your destructive furball at ease.

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Adult Cat Owner Persona:

Name: Wanda Becke

Marital/Family Status: Engaged

City: Fort Worth, TX

Occupation: Content Moderator

Language(s): English

Household Income: $38,000 / yr

Purchasing Habits: Biggest spending category: Pet Goods

Age: 25

Life Stage: College Student

Online Behaviors: It would be easier to count how many cat videos wanda has not watched. She consumes most of this media on platforms like Twitter and Youtube.

Previous Engagement with the Brand: Wanda’s family has always preferred cats to dogs, wanda is unaware of what kong is but would recognize one of their toys if you showed her one.

A Day in the Life of the Customer:

Every morning Wanda wakes up with her cat, Cleo, and his butt in her face. Cleo is family, he eats breakfast lunch AND dinner with wanda. Wanda’s social media is updated daily with Cleo doing funny cat things, with some days seeing as many as three posts. (That’s too many cat photos, Wanda.)

Goals and aspirations: Wanda wants to open her own animal hospital one day so that she can chase her dreams of making the world a better place through changing animals’ lives for the better.

Favorite Brands: Friskies, Petco, Luxe, Hats4Cats, Happy Tails

Challenges/frustrations: Wanda loves buying her kitty kat new toys, but she doesn’t like paying for them. Wanda wishes cat toys were more durable like dog toys.

How KONG can help: KONG’s newest line-up is designed just for cats. With all the things you loved about our dog toys, you can now use KONG to keep your destructive furball at ease.

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Competitive Analysis - Overview

Nylabone is a company based out of New Jersey, with roughly 150 employees. Since 1955, they have prided themselves on making the “world’s best” chew toys, long-lasting edible chews and dental solutions for dogs. Their products come in a variety of flavors, shapes, sizes and textures for every kind of dog and chewing strength.

  • B2B - Found at pet stores, supermarkets, chain stores, and large retailers, such as Petco, PetSmart, Target, and Wal-Mart, many mail-order and online companies

  • Focus only on dogs and solutions to their chewing and dental needs

  • Tagline: Chews Best

Jolly Pets is based out of Ohio and only has 50 employees. They make durable dog toys for all breeds and sizes and place strong focus on quality and durability. All of their products are backed by a manufacturer’s guarantee.

  • B2C & B2B - Found at pet stores, supermarkets, chain stores, and large retailers, such as Petco, PetSmart, Target, and Wal-Mart, many mail-order and online companies, In addition, to selling directly from their website and even from their Facebook page.

  • Just acquired Kitty Kasas, they make cat cube furniture, to compete in kitten/cat category

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Competitive Analysis

Marketing Information

Social Platform

• Facebook: 139K

• Instagram: 271K

• Twitter: NO TWITTER

• YouTube: 5.65 subscribers (Views: 100 - 36K)

• LinkedIn: 4.7K

Content: Posts include photos, guides, CTAs to website, product photos/info, reposts

Tone: Educational, professional, fun and playful

• Facebook; 693K

• Instagram: 74.7K

• Twitter:36.9K

• YouTube: 1.1K subscribers (Views: 28K-158K )

• LinkedIn: 2.1K

Content: Coupon tab, photos, guides, CTAs to website, product photos/info, poll posts

Tone: Fun, playful content

• Facebook; 21K (Shop Facebook)

• Instagram: 13.5K

• Twitter: 965

• YouTube: 102 subscribers

• LinkedIn: 300

Content: Posts include photos, CTAs to website, product photos/info,

Tone: Playful and fun

Newsletter

Email Sign Up - Coupons, sneak peeks, contests, promotions, newsletter, helpful tips

Club Nylabone - newsletter, coupons, photo contest, dogs birthday rewards, tips & solutions

Jolly Pets Playhouse - Create account for newsletter, free samples, preview new products, exclusive offers

Website

Learn, Let’s Play, Dog, Cat & Pet Pros, Professional Support, International, In-depth product picker, No product/store finder

Our Products, Dog Behavior, Dog 101, About Us, Product & Dog Park Finder, In depth product picker

Products, E-commerce, Blog, Store locator, in depth product finder

3rd Party

Best Lists, Charity Partnerships

Best Lists

Best Lists

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Competitive Analysis

Product Information

Products & Services

• Dogs & cats

• KONGS, plush, tug, chase, chew, balls,

dental, noise, flying, dental

• Cat - plush, KONGS, lasers, sound,

• Travel accessories (limited)

• KONG box (new product - sells direct to

consumers)

• Over 329 products

• Dogs only, no cat

• Chew toys

• Chew treats

• Dental solutions

• Over 260 products

• Dogs & cats (and Equine)

• Plush, tug, chase, jollyflex, squeaker

• Entering cat category (Just acquired

Kitty Kasas to compete in the cat toys

Category)

• 60 products

Pricing

$2 - $75

$2 - $30

$4 - $25

Distribution Channels

Supermarkets, hypermarkets, and

pet stores.

Kong Box - B2C online subscription based

Supermarkets, hypermarkets, and pet stores.

Direct to Consumer Online, as well as, supermarkets and hypermarkets, and pet stores.

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Competitive Analysis

Strengths

• Overall impression durability and quality

• High end products

• Social media platforms all used differently

• Website - elaborate and educational,

product/need match

• 3rd party endorsements

• Focus on play

• KONG Box (New product - B2C)

• Newsletter (Club Nylabone) sign-up push

• Huge following on Facebook

• Solution focus

• Fun, playful & educational social media

content

• Wide range of content on social media

• Overall impression durable, high quality

product

• Entering cat market

• 3rd party endorsements

• Jolly Rescues - focus on donation

• Website has product/need search

Weakness

• Website - no “where to find product”

information, email list hard to find

• No Twitter

• Social media photos do not show full range

of products

• Bad PR on search

• Only dog category

• Social media following is slowing

•Looks more commercial and consumer

friendly

• No subscription box

• Digital marketing is low-end in

comparison to competitors

• Website organization (blog reversed)

• No subscription box

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Market Analysis

OPPORTUNITIES BASED ON TRENDS:

1) People are looking for Eco-friendly, all natural pet

toys, products, and foods.

2) With the humanization of pets, people are taking

road trips and bringing along their pets. This opens

up opportunities for innovative new designs in travel

friendly products for pets:

• Travel blankets and easy to carry kennels

• Pet travel bags, pet seats and pet beds for cars

• New innovations in portable bowls and bedding

3) Effective pet accessories that ease stress or anxiety

• As of 2017 dog owners spent on average $1,285 a year

on their pet and cat owners spend $915 a year.

• Pet care spending in 2018 was a record breaking

$72.56 billion, with 2019 spending exceeding that by

more than $3 billion.

• Dog & cat toys occupy a significant global market share

and comprises Kong toys, Rope dog toys, Latex dog toys,

bone toys and training products… cat ball toys,

interactive toys, plush toys, and cat scratching toys.

• Millennials will pay more for quality products/services

to improve health and well-being of their pets.

Increasing humanization of pets by the pet owner has

created a positive impact on the pet toys and training

market.

• The U.S. accounted for major share of the pet toys and

training market due to the inclination toward adoption of

pets among the population.

2017: Dog owners spent

on average: $1,285/year

on their pet.

Millennials continue to

Be the largest pet-owning

demographic

Pet owners are

humanizing their pets,

treating them like family.

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Overall Objectives & KPIs

MISSION

MISSION:

OBJECTIVE:

STRATEGY:

TACTICS:

KPI TARGETS:

OBJECTIVE:

STRATEGY:

TACTICS:

KPI TARGETS:

OBJECTIVE:

STRATEGY:

TACTICS:

KPI TARGETS:

• Increase overall sales of KONG products

Build awareness for KONG Box

Drive conversions for KONG Box

subscriptions

Increase overall sales of KONG products and build awareness for new KONG Box.

Social Media: Twitter Posts

Website Content

Social Media

Paid Search Ads

Paid Display Ads

Establish a twitter account to create dog and cat personas that will banter and debate with one another. Build our brand personality with funny posts relating to pains and joys of pet parenting.

Use content, keyword strategy and imagery to promote our new KONG

Box Subscription Product. We will be targeting a consumer direct audience.

Use content, keyword strategy and imagery to promote our new KONG Box Subscription Product. We will be targeting a consumer direct audience.

Social Media: Followers

Website: CTR from Social, Clicks.

Social: Impressions, Clicks, Followers

CTR from Search & Display

Impressions, CTR, Subscriptions, &

Open Rate from Social, Paid Search,

Display, & Email

Social Media

Paid Search & Display Ads

Email Marketing

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Paid Search Ads

Objectives:

• Increase conversions (subscriptions) for KONG Box by 5% (quarter to quarter)

• Increase B2B KONG product sales by 8% (quarter to quarter)

Stages of Funnel: Awareness, Interest, Consideration and Conversion

Target Audience Segments:

• KONG: All Audience Segments (Men & Women 18-24, 25-34, 35-44)

• KONG Box: Only new puppy/dog owners

• We will be utilizing the Affinity Audience tool to target people with an interest in pets, pet toys and subscription

services, among many others

• Optimizations will then be made based on high and low-performing joy or pain point keywords, ad relevance and

updates on ad copy will be made accordingly

Content Strategy: Based on factors such as high-performing keywords and SEO, we propose creating two different paid search ads (shown in next slide). One will be advertising The KONG Company and products offered in general, and the second ad will be advertising KONG Box; the ad that is shown will vary based on the search terms used.

Tracking Conversion: conversions (landing page visits) will be tracked via the Google Ads platform and by comparing sales from last year to this year

KPIs: CTR, Impressions, and Conversions

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Paid Search Ad Examples:

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Display Ads

Objectives, Audiences and KPIs:

• For all digital marketing channels (except for email) we are focusing on both KONG and KONG Box

• Increase overall sales for all KONG products, and increase both awareness and conversion/subscription rates for KONG Box

KONG ads will target all of our audiences-both dog and cat, and KONG Box ads will target existing dog or puppy owners (no cats)

KONG Box will also promote seasonal and gift giving events like birthdays, Christmas, Hanukkah, Valentine’s Day, and similar holidays

KPI’s for KONG will include: Impressions, and CTR to the website, and comparing sales qtr to qtr and year end to the prior year’s.

KPI’s for KONG Box: Impressions and CTR to landing page, exits and # of new subscriptions.

Utilize Keyword research and strategy for ad content and make sure messaging is appropriate for the audience the ad is targeting.

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Display Ad Examples:

Example Display Ads for both KONG Box and KONG

Other ad examples:

You’re hard at work…

So is Ms. Kitty.

(Image: cat with scratched up pillow)

KITTY KONG LOGO.

The indestructible, more satisfying,

less expensive play toy for your cat.

Learn More.

You’re at a nice dinner.

So is Duke.

(Image: dog with chewed up pillow)

KONG LOGO

The indestructible, more appetizing chew toy for Duke.

Learn More.

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Email: KONG Box

Type: Abandon cart��Timeline: 2 days after making profile

Trigger: Member has set up profile but has not subscribed

Subject: It Looks Paws-itively Perfect!

Preview: Your profile is made, <Dogs Name>, now let’s play!

Header: Logo “KONG BOX” and product photo

Body: Content is personalized with pet’s name and letting customer know that a box has been made especially for them. CTA is a subscribe now button, followed by alternative content and CTA. (A gentle reminder about what is offered in the KONG box). This assists a customer if they are still on the fence and prevents feelings of being pressured into making a decision.

Footer: Product solutions reminder and social media links

Small Print: Address/Disclosures/Privacy/Subscription Management/Unsubscribe

KPIs: CTR and conversions (subscriptions made vs profiles)

Delivering toys and training tools that best fit your pet's individuality, personality, and specific needs.

We know <dogs name> is special, that’s why we have

a KONG Box paw-picked and uniquely curated

especially for your furry friend!

Let’s get the tail wagging and start your subscription!

Subscribe Now

Delivered to your door,

especially for them…

And as often as you want!

Here’s what’s in the box

Learn More

“Subscribe Now” button leads back to their profile page that includes their subscription choices.�

“Learn More” leads to page on the website describing how the program works.

CTA LANDING PAGES:

16191 Table Mountain Pkwy, Golden, CO 80403

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Social Media / Sponsored Twitter Posts

How can Kong utilize social media marketing to achieve their objectives?

Objectives:

• Increase B2B KONG dog product sales by 8% qtr to qtr, year to year

• Increase awareness for KONG’s newest product release, KONG BOX by 20%

• Increase subscriptions to KONG Box by 5% qtr to qtr, year to year

Stages of Funnel: Awareness, Interest

All Audiences and Segments (Dog/Cat): 67% of households in the US have one or more pets.

Targeting Strategy:

• Twitter Ads Campaign Creator

- Twitter’s native campaign platform allows Kong to select audiences based on interests.

• Twitter’s Promote Mode

- Account holders can amplify tweets and promote their business.

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Social Media / Sponsored Twitter Posts

How can Kong utilize social media marketing to achieve their objectives?

Key Performance Indicators:

• Monthly view-through conversions, compare impressions on twitter to sales made in our B2B market

• Measure impressions bi-weekly from KONG Box ads independently to benchmark awareness for KONG Box

• Monthly conversions, subscriptions made by users who click-through to our website from our ads

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Twitter Ad Examples:

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CONCLUSION:

KONG is a well established company with a reputable brand, and brand personality. People search for “KONG” by name and know that KONG is synonymous with pet toys of quality and durability. With the largest pet owning audience being millennials, we would like to see KONG have more of an online presence… SEO, Keyword Strategy, and Paid Search and Social Media Ads would be at the top of our recommendation list.

Pet owners LOVE their pets, and can all relate to the realities (both good and bad) of pet parenting. Content and imagery related to those joys and pains, will always resonate with our audiences.

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The end.