office supply store sample marketing plan

I. EXECUTIVE SUMMARY

Office-One Office Supplies strives “to provide all office needs combined with the best customer

service to meet our small business and consumer market.” The Tyler branch of Office-One has a

history of good customer service and strong customer loyalty. Strengths and opportunities include a

good location, product customization and special ordering, and competitive pricing. Weaknesses

and threats include inventory control problems, customer service issues, lack of adverting and

increased competition. The target markets of the Tyler Office-One store include small business

owners, teachers, students, and the store’s staff.

The action tactics presented in this marketing plan are aimed at providing the store with a

stronger and more loyal customer base by providing good customer service. Product tactics include

weekend training classes for employees, developing automatic replenishment programs for

customers, and providing an effective charge card program for loyal customers. The price tactics

include reevaluating the pricing of comparative products and providing pricing packages for repeat

customers. The place tactics include installing a just-in-time inventory system and approaching local

investors with expansion ideas. Promotion tactics include creating an effective, low budget

advertising campaign and creating an employee of the month program. This plan incorporates

objective and task budgeting when planning for the action tactics. All of these tactics will be

implemented in the next two years with a total budget of approximately $760,000.

Controls will assure effective implementation of the action tactics. These include evaluating if

the goals of market share, profit, and customer satisfaction are met. The Tyler store manager will

administer most of the control tactics with administration taking a minimal role. The goal of these

evaluations, whether they are daily, monthly or quarterly, is to make any necessary changes to the

action tactics that will maximize the stores market share and profits. Finally the appendix presents

source materials and promotional examples.

Office-One Office Supplies Marketing Plan/

II. SITUATION ANALYSIS

Mission Statement

The mission of an Office-One store is simply “to provide all office needs combined with the

best customer service to meet our small business and consumer market.” This basic statement

describes the efforts of each office supply store and identifies the general markets toward which

these efforts are directed.

Organizational Philosophy and Background

The largest Texas-based office supply chain store is Office-One Office Supplies. The chain

was acquired in January 1991 by Hillcrest, Inc., and operated as a wholly owned subsidiary. In

the past year, Office-One Office Supplies was sold to a private corporation and is now a stand-

alone company: Office Inc. Limited. Each business unit, however, still operates as Office-One

Office Supplies. The corporate vision for the store is “Office-One Office Supplies is to be

customer-driven for profitable growth.”

This vision is key to the operations of the Tyler branch of Office-One, which is located in

the Superior Shopping Village in the southeast area of the city. The Tyler store is open Monday-

Friday 8 a.m.- 7 p.m. and Saturday 10 a.m.-5 p.m. Office-One prides itself on being the single

source for small businesses, home office consumers and students. The store offers a wide

variety of name-brand office, computer, and school supplies at up to 50 percent off

manufacturer’s suggested retail. The following are a few of the major product categories at

Office-One:

Binders Furniture and AccessoriesBinding Supplies Shipping SuppliesCalendars / Planners Money ManagementBriefcases Office EquipmentComputer Supplies Equipment SuppliesData Storage Desk SuppliesCustom Imprinted Products Presentation SuppliesFiles / Filing Supplies Reference MaterialForms / Record Keeping Janitorial Supplies


Office-One also supplies a variety of other office needs. In many aspects, Office-One is

similar to most office supplies stores in the Tyler area. The ways in which the Office-One Tyler

store attempts to set itself apart are by added services, customer service, and a convenient

location.

Services offered by the Tyler Office-One store include an in-house copy and fax service,

free delivery on most items, special order catalog for items not in stock, and a friendly,

knowledgeable staff willing to attempt to meet all of the customers needs. Customer service is

an ever-evolving issue for the employees of the Tyler store. This involves such issues as a need

for a more responsive staff and an improved inventory control system.

One goal of this local store is to provide small quantities of products instead of warehouse

style bundles. This is most appropriate for meeting the needs of the target market, which is the

small business and individual consumers. Profit is another key issue for the employees of the

Tyler Office-One store.

One way the Tyler store addresses this issue is location. The store is located in a high traffic

area, especially for small business or home office owners. This encourages repeat customers

who are loyal to the products sold and services provided at the Office-One Office Supply store

in Tyler.

The Tyler Office-One Office Supply store and its employees are continually addressing all

of these key issues in an effort to provide the best products and services to its target market.

New Product Development Process (OPTIONAL)

(Here’s where you could include information on how you developed your new product,

using ideas from Chapter 11. This plan covered an existed business so it wasn’t applicable here.

Enthusiastic groups can include this section here, and, while I will appreciate it, it is not an

mandatory part of the project.)


SWOT Analysis

Strengths of the Tyler Office-One Supplies store include the following:

1. The store offers a good location in Superior Shopping Center.

2. A warm, inviting environment sets store apart from the “warehouse feel” of competitors.

3. Shopper-friendly customer service makes finding help easy.

4. Special orders feature provide more ordering options than available in others stores.

5. Individual vs. bulk buying allows consumer to purchase just the quantity needed.

6. Helpful services are offered such as business cards, UPS, free delivery, fax service, etc.

7. Offering charge accounts with no interest for businesses is an attractive feature.

8. Website allows for remote ordering and shipping.

9. The story offers competitive prices.

Weaknesses of the Tyler Office-One Supplies store include the following:

1. A poor and unreliable inventory management system results in poor stocking.

2. Lack of key office supplies has caused strained vendor relations.

3. Inadequate clerk training results in customer disappointments and frustration.

4. No advertising has even been done.

5. No motivational incentives are offered below store manager level.

6. Inadequate cash flow results in inability to pay vendors in timely fashion.

Opportunities for the Tyler Office-One Supplies store include the following:

Environmental – Tyler is a great town offering an excellent local target market.

Social – Tyler is a friendly, “smallish” town that values good customer service.

Technological – Website expansion will assist in tapping into new customers.

Economic – Vendor alliances allow for purchase of small quantities at good prices.

Advertising is relatively inexpensive in the market.


Threats to the Tyler Office-One Supplies store include the following:

Environmental – New competition is opening bigger stores with better advertising. These

competitive threats include Office Max and Office Depot, as well as

general merchandise supplies such as Sam’s and Wal-Mart.

Technological – Just-in-time inventory systems of competition allow for better stocking.

The competition is more heavily invested in this technology.

Economic – Creditors are clamoring to collect debts owed.

III. MARKETING STRATEGY

This section covers several aspects of the overall marketing plan for Office-One

Supplies: corporate vision and mission statement, goals, core competencies and target

markets. By examining each of these aspects, it will become clear what must be done to

adjust the marketing mix to improve profitability and help Office-One meet its goals for the

Tyler market.

Corporate Vision

Office-One’s Vision Statement is “Customer Service Driven for Profitable Growth.”

Obviously the company feels its employees are the key to success. The difficult aspect of

meeting corporate needs is determining how best to define specific goals to best meet consumer

needs to maximize success.

Goals

The following non-financial goals will be the focus of this marketing plan over the next two

years:

1) To increase the position as a store with adequate office supplies year-round.

2) To increase the reliability of inventory system by 25%.


3) To network our inventory system for just-in-time systems.

4) To increase number of charge accounts by 20%.

5) To increase buyer awareness and create more in-store traffic.

6) To have more open communication between upper management and store clerks.

7) To increase employees’ knowledge and morale.

8) To be more price-competitive.

The following financial goals will be the focus of this marketing plan over the next two years:

1) To obtain 1/3 of the market share of office supplies.

2) To pay off all debts to vendors.

3) To increase profits by 50%.

4) Increase website ordering by 20%.

Core Competencies

A major benefit of Office-One is ability to provide great customer service in a convenient

location with a comfortable atmosphere. Despite the recent inventory shortages in the Tyler

store , this spirit of customer service is apparent. The “shopper-friendly” environment of the

Tyler Office-One is a definite advantage over larger office warehouses. Also, the commitment

to debundling bulk quantities and providing smaller, consumer quantities distinguishes Office-

One and creates value for individuals and small businesses.

Target Market Identification

The following market-product grid is included to help show the size of each marketing and how

important each major product line is to each market.


3- LARGE MARKET 2- MEDIUM MARKET 1- SMALL MARKET 0- NO MARKET

Primary Market:

Businesses including the owners, management, and other professionals represent the

primary target market of Office-One Office Supply. We cater to small businesses with a

need for small amounts of supplies at a time rather than buying in bulk. Local

businesses in the area are our prime focus. We strive to meet all their needs while

building a good relationship with them in order to ensure return visits.

Customer Characteristics

Geographic: Region- Smith County

Population 150,000

Density- Suburban

Demographic: Age- 30-55

Life Stage- Adult

Birth Era- Baby Boomer (1946-1964)

Socioeconomic: Income- $35,000 and above

Education- College Graduate or Post- Graduate

Psychographic: Values- Achievers and fullfilleds

Lifestyle- Successful, career-oriented, value structure, duty, order

and prestige,

Mature, well educated

Secondary Market #1:


MARKET SEGMENT PRODUCTSGROUP WITH NEED EVERYDAY

SUPPLIESOFFICE EQUIPMENT

COMPUTER SUPPLIES

CUSTOM IMPRINTING

FURNITURE/ ACCESSORIES

STUDENTS 2 1 1 0 0EDUCATION TEACHERS 2 2 2 2 1

ADMINISTRATION 2 2 2 2 2OTHER STAFF 1 0 0 0 0

OWNERS 3 3 3 3 3BUSINESS MANAGEMENT 3 3 3 3 3

EMPLOYEES 2 0 2 0 0PROFESSIONALS 3 3 3 3 3

HOUSEHOLD ADULTS 3 2 2 1 2CHILDREN 2 0 0 0 0

Educational facilities including teachers, faculty, and the administrative staff represent

our primary secondary market. We offer everyday, office, and computer supplies to fill

all their needs.



Population 150,000

Density- Suburban and small town


Life Stage- Adult

Birth Era- Baby Boomer (1946-1964) and Generation X (1965-

1976)

Socioeconomic: Income- $25,000- $50,000

Education- College Graduate or Post- Graduate

Psychographic: Values- Fullfilleds and believers

Lifestyle- Mature, value order, knowledge, and responsibility,

conservative, strong beliefs and attachment to family,

church, and community


Students including high school and college level represent another secondary market.

Our everyday supplies such as binders, paper, pens, planners, etc. provide students with

all the materials needed while attending school.



Population 150,000

Density- Suburban and small town


Life Stage- Youth and Collegiate

Birth Era- Baby Boomlet/ Generation Y (1977- present)

Socioeconomic: Income- Under $15,000

Education- High School or College level

Psychographic: Values- Strivers and experiencers


Lifestyle- Few resources, seek motivation, self-definition, and

social approval, involved in social and physical

activity, likes variety, risk-takers


Our own internal staff represents an additional target market. By gaining our own

employees as loyal customers we can expand additional awareness of Save-On to those

they come in contact with. This also gives us an opportunity to gain repeat business

while they are employed at Save-On as well as when they are not.



Population 150,000

Density- Suburban

Demographic: Age- Average cashier 16-23; Managers avg. 45

Life Stage- Student; adult

Birth Era- Generation Y/ Boomlet (1977-present)

Socioeconomic: Income- Under $15,000

Education- High School or College level

Psychographic: Values- Strivers and experiencers

Lifestyle- Few resources, seek motivation, self-definition, and

social approval, involved in social and physical

activity, likes variety, risk-takers

While household consumers are another potential market, the focus of this marketing plan will

not address this market and will instead be limited to the identified markets at this time.

Marketing Mix Overview (note: this is an optional transition to

the next section)

Based on the goals and target marketing identified, the strategy to improve

the performance of the Office-One store in Tyler will include the following

elements as outlined in the following section:


Product Elements

Provide weekend training classes to improve employees’ knowledge of

products and services.

Provide repeat small business customers with an automatic supply

replenishment program.

Provide loyal customers with a charge card program for in-store and web site

purchasing.

Price Elements

Reevaluate the pricing of products in the Tyler store to compete more

effectively with other local stores

Consolidate debts to pay off past due accounts, from the selling of Office-One,

branch of Tandycrafts, to investors creating Office-One Limited, a stand-alone

company.

Place Elements

Install a networked just-in-time inventory system that connects the Tyler

store with local warehouses, Office-One stores, and the web-site ordering

system. This is to improve the Tyler’s store ability to keep inventory on the

shelves where it is the most useful to customers.

Approach area investors for an option to expand the current store or open

another East Texas area Office-One Office Supply store(s).

Promotion Elements

Create a low budget, but high quality-advertising package including

television, radio, and billboard advertisements.


Create an employee of the month program to increase employee incentives

with rewards such as gift certificates.

Update current newspaper advertisements to address current situations.

The following section provide specific details on how to the marketing mix will be implemented to

improve the sales performance for Office-One in Tyler.


IV. ACTION TACTICS

Product Tactics

1. Set up a once-a-month mandatory one hour Saturday Training Course from 9 AM – 10 AM

before store opening. Have managers put together different ways, ideas, knowledge, and

focus to teach employees about products, special ordering, business cards, rubber stamps,

etc. For example, have a video showing how to provide excellent, friendly customer service,

or have a representative from U.S. Stamp visit and make a presentation on how to properly

place business card and stamp orders. Managers would monitor employees and decide what

need to be discussed and learned at each meeting.

Goal(s) Addressed: To increase knowledge of lower-level employees of products

and services

Target market: Internal

Implementation Date: Next Corporate Meeting, May 19, 2001

Budget: $1,000 for beginning the program, but it would vary each

month depending on the training session; approval from

corporate would be needed for special events

Responsibility: District Managers for implementation, Store managers for

continuum.


2. To offer new services to provide repeat small business customers with an automatic supply

replenishment program. Most likely this program would incorporate the Internet and JIT

inventory system, and would link the customers with the local store. The customer would

then keep track of what their employees’ use. When a particular office supply is low,

Office-One would send a replenishment supply.

Goal(s) Addressed: To increase our position as a store with adequate office

supplies year-round.

Target Market(s): Primary and Secondary

Implementation Date: December 31, 2001

Budget: $20,000.00

Responsibility: Information Technology Firm

3. To provide loyal Office-One customers with a charge card program for in-store and web

site purchasing. This would involve finding a local bank that can provide the credit, and

developing a standard card. The customer would be awarded a limit appropriate to their

business size and past purchases. A credit department would also need to be established to

direct and resolve any credit and payment problems.

Goal(s) Addressed: To increase the number of charge accounts by 20% and to

increase website ordering by 20%.

Target Market(s): Primary

Implementation Date: September 31, 2001

Budget: $5,000.00 for the start-up, and $17,000.00 a year in salary

and benefits.

Responsibility: Credit Department


Price Tactics

1. Evaluate prices and reprice higher set items to a lower more affordable price system

Goal(s) Addressed: To be more price-competitive and to increase profits by 50%.

Target Market(s): Primary, secondary, and internal

Implementation Date: September 2001, after back-to-school season

Budget: $3000

Responsibility: Buyers and sales force

2. Consolidate debts to get one payment from a finance company with the lowest interest

rate possible.

Goal(s) Addressed: To pay off all debts to vendors.

Target Market(s): Internal

Implementation Date: As soon as a low interest rate can be found and decided upon

Budget: Debts equaling to $568, 800

Responsibility: Finance and Accounting Department


Place Tactics

1. Install or reprogram our inventory system to function as a just-in-time inventory

system to connect and alert local warehouse, buyers, and/or manufacturers when

inventory gets low (0-3 items), and they will quickly and automatically ship the

necessary supplies. Change Daily Export program done at the end of the day to home

office to also send our inventory numbers to the necessary channels in order for

restocking.

Goal (s) Addressed: To increase reliability of inventory system by 25% and to

network inventory system for just-in-time systems.

Target market(s): Primary, secondary and internal

Implementation Date: By January 2002

Budget: $500,000

Responsibility: Information Technology Firm

2. Approach area investors for an option to expand the current store or open another East

Texas area Office-One Office Supply Store(s). This would involve soliciting to area

developers and other investors to possibly relocate or expand the current store.

Although this might initially increase debt, the store would be able to expand the

amount of products and services it offers.

Goal(s) Addressed: To obtain 1/3 of the market share of office supplies.

Target Market(s): Internal

Implementation Date: March 31, 2002

Budget: $100,000.00 for start-up

Responsibility: Administration Department


Promotion Tactics

1. Create a short 15-second TV commercial emphasizing core competencies, such as

small, comfortable atmosphere, friendly service, and competitive prices. Also include

unique services such as fax, free delivery, and UPS service. (Appendix iii)

Goal(s) Addressed: Increase buyer awareness and create more traffic in store, and

to increase profits by 50%.

Target market: Primary

Implementation Date: Begins to air June 1, 2001-August 31, 2001; Beginning on

station KETK Channel 7 first then extending to NBC 56 and

FOX 51 when budget allows

Budget: $100,000

Responsibility: Marketing Department


2. Create a short 30-second radio commercial emphasizing core competencies, such as

small, comfortable atmosphere, friendly service, and competitive prices. Also include

unique services such as fax, free delivery, and UPS service (Appendix ii)

Goal(s) addressed: To increase buyer awareness and create more in-store traffic

and to increase profits by 50%.

Target market: Primary and secondary

Implementation Date: Begins to air April 27, 2001-August 31, 2001 for back-to-

school season; To be played once every 2 hours on radio

network which include stations:

101.5 KNUE

MIX 107.3

96X

93.1

Budget: $10,000

Responsibility: Marketing Department


3. Implement employee of the month for entire organization. Have a manager’s meeting to

nominate employee and discuss reason their employee should be chose. Corporate

office takes reasons into consideration and chooses employee. Gift would be $50 and

their name would be added to a small plaque to be displayed in their store that month.

This can be continued over time through email.

Goal(s) addressed: Increase employee morale

Target market: Internal

Implementation Date: Next Corporate Meeting, May 19, 2001

Budget: $600 dollars a year, plus $80 for plaque to be used for two

years ($50*12 months = $600)

Responsibility: District Managers for implementation, Store managers for

continuum


4. Create a simple outdoor ad (billboard) and place it in two parts of Tyler. (Appendix i)

Goal(s) addressed: To increase buyer awareness and create more in-store traffic

and increase profits by 50%

Target market(s): Primary and secondary

Implementation Date: May 2001-October 2001

Budget: $ 600

Responsibility: Advertising

5. Update newspaper ad every two weeks and run it rather than the current once a month

for two weeks only. This will provide more frequency in terms of seeing the Office-One

name. Forgetting rate is high, and our local competitors run an ad every week. This will

be a continuous schedule and will better help meet goals and increase our market share.

Goal(s) Addressed: To increase buyer awareness and create more in-store traffic

and increase profits by 50%

Target market (s): Primary and secondary

Implementation Date: First weekend in June 2001

Budget: $3000; cost of printing and placing ad in Tyler morning

Telegraph

Responsibility: Advertising department


Implementation/Timeline/Budget

Tactic Implementation Date Budget

Radio promotion May 1, 2001-August 31, 2001 $10,000

Employee of the Month Program May 19, 2001 $600 a year, $80 plaque

Saturday Training Program May 19, 2001 $1000 starting but varies

Consolidating Debts May 19, 2001 $568,800 loan

Television promotion June 1, 2001-August 31, 2001 $ 100,000

Newspaper ad June 1, 2001- continuing $3,000

Repricing September 31, 2001 $3,000

Charge card system December 2001 $5000 start-up

$17,000 in salary and benefits

Replenishing program December 2001 $20,000

Just-In-Time Inventory System January 2002 $500,000

Area investor program March 2002 $100,000

Total Budget $759,680 (excludes loan)


V. Control Measures

Measurement Process

1. The first marker of success will be an increase in the market share of office

supplies for the Tyler Office-One Office Supply store.

This will be measured through comparative sales data with other local stores.

2. The second marker of success will be an increase in profits.

This will be measured through evaluating internal financial reports.

3. The third marker of success will be an increase to the customer satisfaction as it

pertains to adequate inventory.

This will be measured through customer surveys.

Control Tactics

1. The stores market share will be measured quarterly as compared to other office

supply stores in the Tyler area. The local manager will be responsible for

evaluating the sales data of at least 5 competitive chains to evaluate Office-

One’s ability to increase its market share by at least 1/3. If the market share has

not substantially increased all promotion action tactics will be evaluated for

effectiveness and possible altered to meet particular demographic needs.


2. The Tyler stores profits will be measured on a monthly basis to ascertain the

effectiveness of product, price, and promotion tactics. The store manager will be

responsible for analyzing monthly financial statements to make sure that the

goal of increasing profits by 50% is met within a reasonable time frame. If the

increase in profits is not substantial an administrative committee will be

responsible for reviewing action tactics and implementing appropriate changes.

3. The customer satisfaction for the Tyler store will be measured on a daily basis

for the first three months the JIT Inventory system is implemented. All

customers will be provided with a short satisfaction survey that can be

immediately filled out or returned postage paid to the store. The administrative

staff will then analyze the survey and compile a report for the executives to

review. If the increase in customer satisfaction is not improved a review of the

inventory system and employee service will be needed to correct the problem.


office supply store sample marketing plan

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