Staples

Presented byGroup 9

-Revising the strategy

Company Profile Staples is the world's largest office products company. Committed

to making it easy for our customers around the globe to buy a wide range of office products, including supplies, technology, furniture, and business services. With $23 billion in sales, Staples serves businesses of all sizes and consumers in 27 countries throughout North and South America, Europe, Asia and Australia. Staples' founded by Tom Stemberg, a former supermarket chain

executive turned entrepreneur On May 1, 1986, Staples opened the world’s very first office supply

superstore in the Brighton neighbourhood of Boston

Channel Integration and Systems Vertical Marketing System  Corporate VMS

 Administered VMS  Contractual VMS

Horizontal Marketing System Multichannel Marketing System

Multichannel Marketing Systems adopted by Staples Stores Catalog(Quill.com) Internet(Staples.com) North American Delivery

Stores  Stores are location based, and are characterized by physical

setup in department, discount and outlet stores as well as specialty retailers. In-store display and effective visual merchandising create brand awareness and may influence consumer purchasing habits in favor of greater sales.  Staples operates 1,832 retail stores throughout the United

States and Canada, offering savings on more than 7,000 office products. Staples opened its first store on May 1, 1986 in Brighton, MA, and currently operates 1,521 stores in the U.S. and 311 stores in Canada.

Catalog  Catalogues are effective in its ability to target specific customers

and customer types.  Staples, who believe in “beating a path to the customers’ door,” these companies use catalogues as a tool to indirectly interact with and build long-term relationships with customers.

Internet  Internet distribution has forever changed the face of traditional

buyer-seller relationships. Customers are demanding faster, more personalized service and the practice of side-by-side competitor comparisons was practically invented through online “shops.”  www.staples.com  Forbes magazine named Staple’s site as the “Best Of The Web

Pick For Entrepreneurs” for the third year in a row based on its ability to assist smaller businesses to run as smoothly as larger organizations.

Horizontal Marketing System  On July 10, 2002, Fleet Boston Financial Corp opened “small business”

zones within Staples as customer-recruiting sales sites targeting smallbusiness and entrepreneurial customers.

Benefits:  Brand name recognition is an important issue key to the success of this

joint-venture. Fleet Boston Financial is the seventh-largest financial holding company in the United States and services 20 million customers in more than 20 countries.  Fleet’s name value recognition and Staples core consumer market of small firms and entrepreneurs, cooperative efforts may truly be at the very best interests of both firms.  As small business owners and entrepreneurs have fewer resources with respect to time, staff, and money this “one-stop-solution” may prove more popular than expected.

Conflict , Cooperation and Competition

Channel Conflict: It arises when one channel’s actions prevent another channel from achieving its goals

Channel Coordination:

Occurs when channels are brought together to advance the goals of the channel , as opposed to their own potentially incompatible goals.

Types of Conflict: Vertical Channel Conflict Horizontal Channel Conflict Multichannel Conflict

Causes of Channel Conflict Goal Incompatibility Unclear roles and rights Difference in perception Intermediaries’ dependence on the manufacturer

Managing Channel Conflict(North American Delivery)  Staples’ management of its main channels divided into

business units within Staples’ North American Delivery segment.  The three main business units composing the North American Delivery segment are 1. Staples Business Delivery 2. Quill Corporation 3. Staples contract

Intensive development of individual market  Operating efficiencies benefiting from physically focused capital

investment, operating sites, and experienced employees  Enforces the concept of customer retention. It is less costly and

more profitable to keep loyal, returning customers than to attract new ones as regular customers usually create the majority proportion of total revenue.  Familiarity of existing market.  Publicized re-focus on existing market areas creates a good

image to stakeholders

Marketing Recommendations Cost-reduction focused rather than visible

differentiation or sales strategy based.

 Management of value-added supply chains through forecasting, information systems, purchasing, production planning, order processing, inventory, warehousing and transportation planning may streamline costly inefficiencies of supplier activities, purchasing agents, marketers and Staples-internal channel members. Improved physical distribution, Staples may find that

it can attract and keep customers by providing reliable, timely service and lower prices.

Acheivements 2008  Acquires Corporate Express, one of the world's leading suppliers of office products to businesses and institutions.  Ranked second largest internet retailer, after Amazon.com, in Internet Retailer Magazine's top 500 retail web sites 2007  Opens 2000th Staples store in India  Begins operations in India through a joint venture with Pantaloon Retail Limited  Launches office supply industry's first online catalogue for Contract customers  Begins selling Dell notebooks and desktop computers, printers, ink and toner. Staples is the only office superstore to offer Dell products in stores and through its Web site.  Recognized as Retailing Today's 2007 Speciality Retailer of the Year  Named 30 on CRO Magazine's 100 Best Corporate Citizens 2006  Celebrates 20th Anniversary  Sales reach $18.2 billion  Worldwide eCommerce sales reach $5 billion  Begins operations in Taiwan as UB Staples® through a joint venture with UB Office Systems’ subsidiary, UB Express 2005  Premiers the Easy ButtonSM– a new American icon is born  Sales reach $16.1 billion  Begins selling Staples® brand products in Stop & Shop and Giant supermarkets.Unveils its new corporate responsibility initiative "Staples Soul" and publishes its first Corporate Responsibility report 

MARKET SURVEY (Staples , Marthalli) BEFORE

AFTER

THANK YOU