marketing strategy analysis: staples inc. (jg)

Marketing Strategy Analysis:Marketing Strategy Analysis:Marketing Strategy Analysis:Marketing Strategy Analysis:

Jade GomezJade GomezJade GomezJade GomezMKTG 6000: Prof. KohlerMKTG 6000: Prof. KohlerMKTG 6000: Prof. KohlerMKTG 6000: Prof. Kohler

• opened in 1986opened in 1986opened in 1986opened in 1986

• $23 billion in sales$23 billion in sales$23 billion in sales$23 billion in sales

• largest office products company, globallylargest office products company, globallylargest office products company, globallylargest office products company, globally

• Serves over 27 countries in over 2,000 storesServes over 27 countries in over 2,000 storesServes over 27 countries in over 2,000 storesServes over 27 countries in over 2,000 stores

Promotional Campaign:

- making it easy for everyone to buy all office needs at a reasonable price

“ ”

“That was easy” Campaign

• Emphasizes the “ease” in purchasing office supplies from Staples

• Offers an ‘easy trigger,’ implying the • Offers an ‘easy trigger,’ implying the convenience offered by Staples’ stores

• Sells an actual “easy” button that donates funds to the community

Top Competitor CampaignsTop Competitor CampaignsTop Competitor CampaignsTop Competitor Campaigns

----aims to help customers aims to help customers aims to help customers aims to help customers do their “best work”do their “best work”do their “best work”do their “best work”

---- “unwavering commitment to “unwavering commitment to “unwavering commitment to “unwavering commitment to business customers”business customers”business customers”business customers”

---- aims toward low prices for the aims toward low prices for the aims toward low prices for the aims toward low prices for the everyday consumereveryday consumereveryday consumereveryday consumer

Top Competitor CampaignsTop Competitor CampaignsTop Competitor CampaignsTop Competitor Campaigns

----aims to help customers aims to help customers aims to help customers aims to help customers do their “best work”do their “best work”do their “best work”do their “best work”

----not as large and conveniently not as large and conveniently not as large and conveniently not as large and conveniently located as Staples (globally)located as Staples (globally)located as Staples (globally)located as Staples (globally)

Competitors’ DisadvantagesCompetitors’ DisadvantagesCompetitors’ DisadvantagesCompetitors’ Disadvantages

---- “unwavering commitment to “unwavering commitment to “unwavering commitment to “unwavering commitment to business customers”business customers”business customers”business customers”

---- aims toward low prices for the aims toward low prices for the aims toward low prices for the aims toward low prices for the everyday consumereveryday consumereveryday consumereveryday consumer

----not focused on specializing in office not focused on specializing in office not focused on specializing in office not focused on specializing in office products and therefore does not offer the products and therefore does not offer the products and therefore does not offer the products and therefore does not offer the greatest product differentiationgreatest product differentiationgreatest product differentiationgreatest product differentiation

----target market is business corporations target market is business corporations target market is business corporations target market is business corporations who need a large quantity of supplies.who need a large quantity of supplies.who need a large quantity of supplies.who need a large quantity of supplies.

Measures of success

- Leader in market share

Earnings per share after the “easy” campaign went from campaign went from the already high 15-20% to 33%

---- established established established established product differentiationproduct differentiationproduct differentiationproduct differentiation with the “yeah, with the “yeah, with the “yeah, with the “yeah, we’ve got that” and “that was easy” campaign.we’ve got that” and “that was easy” campaign.we’ve got that” and “that was easy” campaign.we’ve got that” and “that was easy” campaign.

---- involvement in the community with the involvement in the community with the involvement in the community with the involvement in the community with the Staples Foundation for Learning Staples Foundation for Learning Staples Foundation for Learning Staples Foundation for Learning

4 P’s of Marketing:

ProductProductProductProduct - variety of products to meet the needs of the everyday consumer AND the corporationcorporation

PromotionPromotionPromotionPromotion - Staples offers the “Staples Rewards” program and the “That was easy” campaign

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4 P’s of Marketing:

PricePricePricePrice - reasonable prices to accommodate the majority of consumers in need of office suppliessupplies

PlacePlacePlacePlace - located globally, and still growing-also heavily located in densely populated areas

Marketing Principles to remember:

• Offer convenience:

– Marketing automation: ease of repetitious purchases

– Location: available globally

– Product differentiation: large variety and selection

– Personalized offers: accommodate the needs of the consumers

• Gain loyalty:

– Rewards Program: deals and discounts for coming back

– Staples Soul Program: donates funds to the community and to educating the youthcommunity and to educating the youth

• Practice the 4 P’s of Marketing:

– Product – large variety

– Price – reasonable relative to the market

– Promotion – easy and convenient

– Placement: globally– Placement: globally