Presented

by- -Revising
Group 9 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 small-
business 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