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 stores 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.

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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 standalone 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 MondayFriday 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 manufacturers suggested retail. The following are a few of the major product categories at Office-One: Binders Binding Supplies Calendars / Planners Briefcases Computer Supplies Data Storage Custom Imprinted Products Files / Filing Supplies Forms / Record Keeping Furniture and Accessories Shipping Supplies Money Management Office Equipment Equipment Supplies Desk Supplies Presentation Supplies Reference Material Janitorial Supplies

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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)

(Heres 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 wasnt applicable here. Enthusiastic groups can include this section here, and, while I will appreciate it, it is not an mandatory part of the project.)

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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 Social Tyler is a great town offering an excellent local target market. Tyler is a friendly, smallish town that values good customer service.

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Technological Economic

Website expansion will assist in tapping into new customers. 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 Sams 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.

II.

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-Ones 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

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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 OfficeOne and creates value for individuals and small businesses.

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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.
MARKET SEGMENT GROUP WITH NEED STUDENTS TEACHERS ADMINISTRATION OTHER STAFF OWNERS MANAGEMENT EMPLOYEES PROFESSIONALS ADULTS CHILDREN PRODUCTS EVERYDAY SUPPLIES 2 2 2 1 3 3 2 3 3 2

OFFICE EQUIPMENT 1 2 2 0 3 3 0 3 2 0

COMPUTER SUPPLIES

CUSTOM IMPRINTING 0 2 2 0 3 3 0 3 1 0

FURNITURE/ ACCESSORIES

EDUCATION

1 2 2 0 3 3 2 3 2 0

0 1 2 0 3 3 0 3 2 0 0- NO MARKET

BUSINESS

HOUSEHOLD

3- LARGE MARKET

2- MEDIUM MARKET

1- SMALL 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 RegionPopulation DensitySmith County 150,000 Suburban 30-55 Adult Baby Boomer (1946-1964) $35,000 and above College Graduate or Post- Graduate Achievers and fullfilleds

Geographic:

Demographic: AgeLife StageBirth EraSocioeconomic: IncomeEducationPsychographic: Values-

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Lifestyle-

Successful, career-oriented, value structure, duty, order and prestige, Mature, well educated

Secondary Market #1: 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. Customer Characteristics RegionPopulation DensityDemographic: AgeLife StageBirth EraSocioeconomic: IncomeEducationPsychographic: ValuesLifestyleSmith County 150,000 Suburban and small town 25-55 Adult Baby Boomer (1946-1964) and Generation X (19651976) $25,000- $50,000 College Graduate or Post- Graduate Fullfilleds and believers Mature, value order, knowledge, and responsibility, conservative, strong beliefs and attachment to family, church, and community

Geographic:

Secondary Market #2: 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. Customer Characteristics RegionPopulation DensityDemographic: AgeLife StageBirth EraSmith County 150,000 Suburban and small town 15-25 Youth and Collegiate Baby Boomlet/ Generation Y (1977- present) Geographic:

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Socioeconomic: IncomeEducationPsychographic: ValuesLifestyle-

Under $15,000 High School or College level Strivers and experiencers Few resources, seek motivation, self-definition, and social approval, involved in social and physical activity, likes variety, risk-takers

Secondary Market #3: 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. Customer Characteristics RegionPopulation DensityDemographic: AgeLife StageBirth EraSocioeconomic: IncomeEducationPsychographic: ValuesLifestyleSmith County 150,000 Suburban Average cashier 16-23; Managers avg. 45 Student; adult Generation Y/ Boomlet (1977-present) Under $15,000 High School or College level Strivers and experiencers 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. Geographic:

the next section)

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

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:
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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 Tylers 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.

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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.

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III.

ACTION TACTICS
Product Tactics
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.

1.

Goal(s) Addressed: Target market: Implementation Date: Budget:

To increase knowledge of lower-level employees of products and services Internal Next Corporate Meeting, May 19, 2001 $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.

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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: Target Market(s): Implementation Date: Budget: Responsibility:

To increase our position as a store with adequate office supplies year-round. Primary and Secondary December 31, 2001 $20,000.00 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: Target Market(s): Implementation Date:

To increase the number of charge accounts by 20% and to increase website ordering by 20%. Primary September 31, 2001

Budget:
Responsibility:

$5,000.00 for the start-up, and $17,000.00 a year in salary and benefits.
Credit Department

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Price Tactics

1.

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

Goal(s) Addressed: Target Market(s): Implementation Date: Budget: Responsibility:

To be more price-competitive and to increase profits by 50%. Primary, secondary, and internal September 2001, after back-to-school season $3000 Buyers and sales force

2.

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

Goal(s) Addressed: Target Market(s): Implementation Date: Budget: Responsibility:

To pay off all debts to vendors. Internal As soon as a low interest rate can be found and decided upon Debts equaling to $568, 800 Finance and Accounting Department

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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: Target market(s): Implementation Date: Budget: Responsibility:

To increase reliability of inventory system by 25% and to network inventory system for just-in-time systems. Primary, secondary and internal By January 2002 $500,000 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: Target Market(s): Implementation Date: Budget: Responsibility:

To obtain 1/3 of the market share of office supplies. Internal March 31, 2002 $100,000.00 for start-up Administration Department

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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: Implementation Date:

Primary 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: Responsibility:

$100,000 Marketing Department

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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-toschool season; To be played once every 2 hours on radio network which include stations: 101.5 KNUE MIX 107.3 96X 93.1

Budget: Responsibility:

$10,000 Marketing Department

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3.

Implement employee of the month for entire organization. Have a managers

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: Target market: Implementation Date: Budget:

Increase employee morale Internal Next Corporate Meeting, May 19, 2001 $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

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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): Implementation Date: Budget: Responsibility:

Primary and secondary May 2001-October 2001 $ 600 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): Implementation Date: Budget: Primary and secondary First weekend in June 2001 $3000; cost of printing and placing ad in Tyler morning Telegraph Responsibility: Advertising department

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Implementation/Timeline/Budget
Tactic Radio promotion Employee of the Month Program Saturday Training Program Consolidating Debts Television promotion Newspaper ad Repricing Charge card system Implementation Date May 1, 2001-August 31, 2001 May 19, 2001 May 19, 2001 May 19, 2001 June 1, 2001-August 31, 2001 June 1, 2001- continuing September 31, 2001 December 2001 Budget $10,000 $600 a year, $80 plaque $1000 starting but varies $568,800 loan $ 100,000 $3,000 $3,000 $5000 start-up $17,000 in salary and benefits Replenishing program Just-In-Time Inventory System Area investor program December 2001 January 2002 March 2002 Total Budget $20,000 $500,000 $100,000 $759,680 (excludes loan)

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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 OfficeOnes 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.

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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.

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