Office Products Subcommittee Update

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(No Transcript)
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Office Products Subcommittee Update

• Briefing on Major Initiatives
• Promos
• Packaging
• Cross-Merchandising
• Independent Dealer Channel
• ETS
• Product Launch Process
• Industry Trends

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Office Products Promotional Activities
Jennifer RuthDirector of Product Management,
Office ProductsNIB
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Army BPA Promotion

• Night Out on the Town format used
• Dealers competed against each other
• 11 of the 14 dealers participated
• February through May 2006
• Total JWOD sales earned points
• New A-List items earned more points

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Army BPA Results

• Chuckals (med. size dealer) had highest points by
  emphasizing new products
• Metro Miller sold most total JWOD
• Total promo results
• 1.5 Million total JWOD!!!
• 50,000 in new A-List sales!!!
• Higher results than Staples or OD

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GSA Promotional Activity

• More ads and articles in MarkeTips
• Ads in many other Federal media
• Bag samples Expo and Outreach Europe
• CSD Team Meeting Presentations
• CSD sample cards
• Coordinated efforts with GSA Marketing
• Possible carton stuffers and mailings promoting
  new products

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BSC Promotional Activity

• New signage for side counters and end caps
• Developing a rotational end-cap program
• Launch with printer cartridge and end-cap displays

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2006 Vendor Fair
Conference room themed end-cap
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BSC Promotional Activity

• Featuring NPA product displays
• Clip strips for small items
• Impulse floor wire rack

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New Packaging Standards
Shelly TaylorSenior Vice PresidentLouisiana
Association for the Blind
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Packaging Objectives

• Increase market presence and image
• Maximize sales through more appealing product
  presentation
• Reduce returns due to poor or inappropriate
  shipping cartons
• Include NISH for consistent branding across all
  products

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Commercial Grade Packaging
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Grow Market Presence and Image

• Apply SKILCRAFT branding standards to create a
  consistent and recognizable look and feel across
  all of our products
• Always use the NIB design team
• This will have many benefits, including
• Improve perception of quality
• Increase product trial and sales
• Keep pace with current commercial trends

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Cost Considerations

• Normally packaging styles change at 36-48 months
  according to markets
• JWOD name change will coincide with other changes
  if any are required
• Agencies given 4-6 months notice in advance of
  changes
• Agency then has 6 months to implement changes
• Unused first generation packaging can be depleted
  via GSA or MAS

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Reduce Customer Returns

• Poorly constructed packaging projects negative
  image
• Inferior packaging does not withstand rough
  handling and shipping
• Causes damaged product
• Results in returned goods
• Returns reduce ROI and may cost you a customer
  forever

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Cross- Merchandising Program
Jennifer RuthDirector of Product Management,
Office ProductsNIB
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What is Cross Merchandising?

• Two or more functionally-related products
  marketed together primarily through package
  inserts.
• May span two or more agencies.
• Benefits
• Increased product awareness
• Increased trial and sales
• Decreased marketing costs
• Increased brand awareness

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How to Get Started

• 21 NPAs have expressed interest
• NIB organized product groupings per NPA
• Agencies must take lead and agree to the project
  and its specifics
• NPAs fund all costs but the design work
• NIB will support with design work, oversight,
  consultation

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Methods of Cross Merchandising

• Product, carton, or bag stuffers
• Stickers on packaging
• Include samples or literature with shipments
• Web site links between NPAs
• Trade show displays
• Show both products together
• 1 NPA attends sells on behalf of 2 NPAs

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Methods of Cross Merchandising

• BSC product-themed displays
• BSC shelf talkers or signs to expose related
  product
• Messaging on shipping and packing lists
• Paper products insert extra pages with promo
  messages printed on them
• Create a SKILCRAFT convenience pack of both items

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How to do Cross Merchandising

• Distributor-neutral unless aimed and controlled
  at one channel
• BMMC must create all design work
• Written understanding between NPAs
• Define project scope and duration
• Roles and responsibilities
• Costs and labor
• Distressed inventory
• Returns

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Independent Dealersand Buying Groups
Jean Claude KapplerDirector, Industries
ProgramThe Chicago Lighthouse
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Dealer Assessment of JWOD

• OP Task Force interviewed sampling of
  independent dealers
• Forms Supplies (AOPD)
• Chuckals, Inc.
• CADO
• shoplet.com

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Dealer Concerns

• Perceived conflicts with BSCs
• ETS, mandatory status, competition
• Compliance issues with competitors
• Abuses NSNs, ETS, Industrial Funding
• Business issues
• Ability to order direct, ability to drop ship
• Marketing issues
• New product awareness, collateral material

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Approved JWOD Dealers

• 4 Contract Stationers (OfficeMax, Office Depot,
  Staples, Corporate Express)
• 83 independent dealers w/ own schedule
• 79 members of is.group
• 40 members of AOPD
• 100 members of Governet (TriMega)
• Total independent dealers 302

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The Independent Dealer

• Why is the independent dealer
• so important?
• Its the FASTEST GROWING CHANNEL!!!

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ETS Initiatives
Shawn SpenglerManager, Commercial
DistributionNIB
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ETS Update

• Master ETS Database
• ETS Reviews
• Compliance

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Master ETS Database

• Provided Sneak Peak last Fall
• Fully operational
• ETS Data Currently Loaded
• 172,695 SKUs from 14 catalogs
• 14,610 ETS claims now
• ETS claims increased 18 due to enhanced system
  intelligence!!

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ETS Audit

• In-progress input due Oct 6th
• Purpose
• ETS claim accuracy completeness
• Sales!
• ETS is the fastest way to grow sales
• Majority of MAS sales are result of ETS
• Dont just identify most popular SKUs
• Stay in touch with Nick and PMs

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ETS Compliance

• Next step is compliance
• Developing process to monitor GSA Advantage DOD
  EMALL
• Sampling of NSNs
• Document findings
• Follow-up to ensure action
• Engage CFP and GSA as necessary

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Product Launch Process
Shawn SpenglerManager, Commercial
DistributionNIB
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Why Product Launch?

• Next step after TGR/BGR
• Improve introduction of new products, re-energize
  existing products
• Maintain wholesale support
• Develop a process, coordinated by NIB
• Level of launch activity (S, M, L)
• Marketing collateral
• Sample program
• Channel Outreach
• Promotions

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Current Launch

• Channel Activities
• Oct-Dec 06 product induction and initial
  materials
• Jan-Mar 07 catalogs on street, promotions,
  addl materials
• Focus on 2007 A-list and related NSNs
• 151 NSNs 72 former B-list, 26 New, 27 07
  A-list adds, 26 related on A-list
• 18 Jan-San, 133 Office Products
• 42 product lines
• 25 NPAs
• 3-L, 3-M/L, 10-M, 5-S/M, 22-S
• Wholesaler Support

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Current Launch

• Collateral
• Oct Mini-catalog includes all NSNs
• Oct-Mar Sell Sheets for M L
• All available for customization PDF
• Sample Program
• Lead give-a-way from Launch Econogard
• Sample Display Kit

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Current Launch

• All Channels
• Communicate launch of SKILCRAFT Select campaign
• Samples display kits as needed
• Encourage use of collateral program
• Promotions evaluating for Jan-March
• BSCs - NIBs BSC Display Supply Program
• GSA
• SmartPay Teaser flyers (August 1st)
• Support CSDs (events, collateral)
• MAS
• Coordinating use of collateral/samples into
  current programs
• Independent Dealer outreach by RSR team

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Future Launch Process

• Incorporate lessons-learned, expand
• Launch activities to be periodic, likely timed
  to proposed quarterly A-list updates
• Expect 90-120 day lead times due to various
  stakeholder needs.
• PL addition pricing
• Last FR notice is 120 days out
• CFP reviews pricing 90 days out
• Wholesale setup 60 days
• Product availability - 90 days
• Ability to claim ETS
• Timelines to plan implement launch activities

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Future Product Launch

• Example Target Launch of 7/1/07
• 7/06 - 11/06 Assignment/BCA/Addition Package
• 3/1/07 CFP vote and final FR notice issued NLT
• 4/1/07 CFP communicates product will be on
  July, 07 A-list, w/ETS
• Final launch list Products in production
  included, others targeted for next A-list/launch
• 5/1-15/07 CFP issues pricing, wholesale spec
  sheets completed
• 5/15/07 - 6/15/07 Purchase orders
• 6/30/07 Products available at wholesalers

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Future Launch Process

• Who at NIB is involved?
• BMMC, Product Mgt, Channels, and more
• How can you help?
• Stay in tune with NIB and your operational team
• Understand the importance of deadlines
• There will be certain milestones that must be
  met, or your product(s) may be targeted for next
  planned launch
• Prompt response to various requests
• Accurate and complete information
• Keep NIB team in loop of progress

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OP Industry Trends
Kevin CampbellProduct Manager, Office
ProductsNIB
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Trends in the OP Industry

• Manufacturer Consolidation
• Fewer Branded Choices examples
• ACCO Buys GBC/Quartet
• Boone Boards are lost
• Fellowes Buys Perma
• 1 national storage box brand left
• Price Driven
• Alignment of manufacturer with Mega Dealers
  locks out competition.

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Trends in the OP Industry

• Dealers / Distributors Consolidation
• Private label promotes dealer brand
• Strategic alliance between wholesalers and buying
  groups
• TriMega with United and SP
• IS with Action/Emco
• Price and Delivery driven

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Trends in the OP Industry

• TAA and its effects on Dealers Manufacturers
• Federal Strategic Sourcing
• Leveraging buying power
• Brand name elimination
• E-commerce influences
• Ease of use increased acceptance
• Broad selection
• Low Barriers to entry equalizes competition and
  size
• Credit cards (retail)