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Staples, Inc. Message Board

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  • coupon73 coupon73 Jul 17, 2004 3:20 PM Flag

    Staples SMB Marketing Non-existent.Why?

    Sorry to rattle on again...But this really bothers me and I am looking for help. Staples does have a 'Direct' marketing division...but it reaches EXISTING Staples clients...which is fine.

    I am just looking for the answer to the question,"what does Staples do to advertise and market to potential NEW Clients from what obviously is their strongest profit source: small to medium businesses?"

    The answer for all of those,like me,who own stock: NOTHING.

    If anyone can tell me otherwise,please let me know here.

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    • Staples spends millions per year getting NEW business. They send out millions of catalogs every year to prospects (small companies). They also have a sales force that calls on new businesses. Your info. is not right.

      • 1 Reply to viking830
      • you are wrong. It is terrible to be mislead,especially if actual shareholders and employees of Staples are mislead. The ONLY recipients of Staples Catalogs are EXISTING customers...those that have bought before from Staples. There is no Direct Mail effort being made that is aimed at NEW Non-Staples small to medium business potential Clients.

        As example, lets say area 'X' is a nine mile radius that contains a Staples location,an OfficeMax location AND an Office Depot. In this same area there are four Drug Store chains and a Sam's Club as well as Costco. Don't be shocked, MOST Staples stores have plenty of competition in areas of an eighteen mile diameter.

        Now,lets say that small to medium business decision makers in area 'X' shop for Office Supplies on a REGULAR basis in this manner:

        19% Staples
        19% OfficeDepot
        19% OfficeMax
        43% All Other Sources Combined(Drug Stores,Warehouse Clubs etc.)

        The question is,"since the Staples bottom line is derived from the SMB decision maker...WHY is Staples not direct Marketing via Retail circulars to the 81% that they miss in the above scenario?"

        Shareholders know that if Staples drives a NEW SMB customer to one of their stores, it is likely that a NEW customer will be gained. Our stores are simply superior. How much does Staples gain from ONE new small business Client vs. ONE new person in their home that decides to buy school supplies? This will dramatically impact the bottom line since this SMB client 'type' already drives the majority of profits.

        Instead, Staples goes along its' merry way spending MILLIONS upon MILLIONS imitating its non-savvy competitors and inserting into Newspapers arriving in homes where MAYBE one in 50 owns a small to medium business(SMB).


        Oh, and I am not saying that Newspaper Inserting might not end up as cost effective,but what I am saying is that a consistent direct mail campaign sending Retail Circulars aimed at NON-STAPLES SMB recipients would blow away the results from the Newspaper inserting.

        Make any sense? Why turn a Marketing cheek away from your core client 'type'?

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