Fabulous Furballs
Introduction
The Purpose of this report is to evaluate the successes and failures that led a Fabulous Furballs to go from the 6th top growing company in Alberta (Jan 2012) to out of business in less than three months. How can a company go from accolades to the court house in a few short months? The answers lie in a perfect marketing plan and crash due to dishonest reporting of income and outright fraudulent activities. This was a company where the owner needed to concentrate on her strong suits (Marketing) and allow someone else to handle the financial and business sides.(MacLeod, Venture Alberta, 2012)
Company Background
Fabulous Furballs was formed back in early 2007 when owner and CEO Krista Castellarin relocated to Edmonton, Alberta from Las Vegas to be with her new husband. Krista was upset to find that she could not purchase high end clothing and products for her pampered Chihuahua. After ranting to her husband of the non-existing products, he encouraged her to fill that void, so she did.
Starting with nothing but a credit card, she got signed mainly with exclusive distribution contracts for high end pet products such as specialty poop pick-up bags to $5000 diamond collars, and hypoallergenic spa products. A few months after starting her first store, she purchased a grooming school, which she immediately got licensed.
In the short time of four years Fabulous Furballs went from concept to four retail locations and a grooming school, with four additional stores looking to open during 2012.
Markets and Products
Fabulous Furballs was broken up into three different divisions. There were the retail outlets, the grooming school and the spa/grooming salons.
Store
Revenues come from the sale of a variety of products
a. Most inexpensive product: Scented poop bags $10.
b. Most expensive product: Diamond studded dog collars imported from Europe that cost $5,000
c. Hypoallergenic pet products
The company averaged sales of $410 per square foot in 2009
The Purpose of this report is to evaluate the successes and failures that led a Fabulous Furballs to go from the 6th top growing company in Alberta (Jan 2012) to out of business in less than three months. How can a company go from accolades to the court house in a few short months? The answers lie in a perfect marketing plan and crash due to dishonest reporting of income and outright fraudulent activities. This was a company where the owner needed to concentrate on her strong suits (Marketing) and allow someone else to handle the financial and business sides.(MacLeod, Venture Alberta, 2012)
Company Background
Fabulous Furballs was formed back in early 2007 when owner and CEO Krista Castellarin relocated to Edmonton, Alberta from Las Vegas to be with her new husband. Krista was upset to find that she could not purchase high end clothing and products for her pampered Chihuahua. After ranting to her husband of the non-existing products, he encouraged her to fill that void, so she did.
Starting with nothing but a credit card, she got signed mainly with exclusive distribution contracts for high end pet products such as specialty poop pick-up bags to $5000 diamond collars, and hypoallergenic spa products. A few months after starting her first store, she purchased a grooming school, which she immediately got licensed.
In the short time of four years Fabulous Furballs went from concept to four retail locations and a grooming school, with four additional stores looking to open during 2012.
Markets and Products
Fabulous Furballs was broken up into three different divisions. There were the retail outlets, the grooming school and the spa/grooming salons.
Store
Revenues come from the sale of a variety of products
a. Most inexpensive product: Scented poop bags $10.
b. Most expensive product: Diamond studded dog collars imported from Europe that cost $5,000
c. Hypoallergenic pet products
The company averaged sales of $410 per square foot in 2009
References: 142Street. (2012, March). Retrieved from http://youarefierce.blogspot.ca/2012/02/fabulous-krista-wows-dragons.html Dragons Den. (2012, Jan). Retrieved from Dragons Den: http://www.cbc.ca/dragonsden/2012/01/fabulous-furballs.html Edmonton, C. T. (2009, Dec). Retrieved from Youtube: http://www.youtube.com/watch?v=VpcvL4C6fW4&feature=relmfu Hall, J. (2011, Aug 25). Edmonton Journal. Retrieved from Edmonton Journal: http://blogs.edmontonjournal.com/2011/08/25/fabulous-furballs-a-pet-empire-in-the-making/ MacLeod, S. (2012, Feb). Alberta Venture. Retrieved from Alberta Venture: http://albertaventure.com/2012/02/interest-in-fabulous-furballs-heats-up-after-tv-appearance/# MacLeod, S. (2012, Jan). Venture Alberta. Retrieved from Venture Alberta: http://albertaventure.com/2012/01/krista-castellarin-turned-a-fabulous-idea-into-one-of-alberta%E2%80%99s-fastest-growing-businesses/ Post, S. (2011, Aug 12). Studio Post. Retrieved from Studio Post: http://studiopost.com/2011/video-uploads/fabulous-furballs-premiere Proulx, B. (2012, March 5). Retrieved from Sherwood Park News: http://www.sherwoodparknews.com/2012/03/05/fabulous-furball-turmoil-continues Proulx, B. (2012, Feb 13). Sherwood Park News. Retrieved from http://www.sherwoodparknews.com/2012/02/13/groomers-drop-furballs