NTMC Conference March 2012. 2 Agenda Staples OverviewStaples Overview Our CustomerOur Customer Brand PositioningBrand Positioning Print ProgramPrint Program.

NTMC Conference

March 2012

2

Agenda

• Staples OverviewStaples Overview

• Our CustomerOur Customer

• Brand PositioningBrand Positioning

• Print ProgramPrint Program

• Q&AQ&A

3

Staples Overview

• Invented office supply superstore concept in 1986Invented office supply superstore concept in 1986

• World’s largest office products companyWorld’s largest office products company

• $25 billion in sales $25 billion in sales

• North American Retail, North American Delivery, North American Retail, North American Delivery, InternationalInternational

• 90,000 Associates, serving 26 countries90,000 Associates, serving 26 countries

• Serve customers worldwide through 2,000+ Serve customers worldwide through 2,000+ superstores, e-commerce, catalogs and contract superstores, e-commerce, catalogs and contract businessesbusinesses

4

Office Supply History

• 25 years ago, there were only two ways to buy 25 years ago, there were only two ways to buy office supplies:office supplies:– Contract StationersContract Stationers

– Corner StoreCorner Store

$0.86 $3.68

5

Key Retail Customer Segments

• Employs less than 20 Employs less than 20 employeesemployees

• Responsible for purchase of Responsible for purchase of office suppliesoffice supplies

• Owner or Office ManagerOwner or Office Manager

• Higher income and Higher income and education leveleducation level

• Primary targetPrimary target

• Home office, 2+ computers Home office, 2+ computers in homein home

• Higher income and Higher income and education leveleducation level

• Secondary targetSecondary target

• Primary emphasis during Primary emphasis during Back to School and HolidayBack to School and Holiday

Small Business

Home Office

6

Staples Easy Brand Promise

We Bring Easy We Bring Easy To Your OfficeTo Your Office

7

Why Easy?

• Fair pricesFair prices

• Broad selectionBroad selection

• Great locationsGreat locations

RetailRetail

• Courteous and Courteous and helpful associateshelpful associates

• Easy to find what Easy to find what you needyou need

• First choice items First choice items in-stockin-stock

• Fast checkoutFast checkout

“Antes” for Staples

Easy “Triggers” for Staples

DeliveryDelivery

• Easy to shop and Easy to shop and buybuy

• Next Day perfect Next Day perfect orderorder

• Make it right for Make it right for the customerthe customer

8

Media Team

The Staples Media Team:The Staples Media Team:

• Partners with 600+ newspapers nationwidePartners with 600+ newspapers nationwide

• Negotiates contractsNegotiates contracts

• Recommends newspapers and print productsRecommends newspapers and print products

• Optimizes distributionOptimizes distribution

Mansi Media:Mansi Media:

• Executes and confirms insertion ordersExecutes and confirms insertion orders

• Receives and reconciles all invoices; handles billing Receives and reconciles all invoices; handles billing issuesissues

9

Print Program

• Consists of Circulars and some ROPConsists of Circulars and some ROP– FSI focus around Grand OpeningsFSI focus around Grand Openings

– Circulars flighted based on seasonality and previous year Circulars flighted based on seasonality and previous year performanceperformance

– Testing ROPTesting ROP

• Newspapers chosen based on the following:Newspapers chosen based on the following:– Paid, daily circulationPaid, daily circulation

– Coverage around store’s trade areaCoverage around store’s trade area

– Strong editorialStrong editorial

– Opt in products given strong consideration if >4% Opt in products given strong consideration if >4% incremental coverageincremental coverage

• Consider multi-year contractsConsider multi-year contracts– Create “win-win” for both Staples and the newspaperCreate “win-win” for both Staples and the newspaper

10

How can we best work together?

• Strong stewardship of the Staples accountStrong stewardship of the Staples account– Help us achieve our positioning and distribution Help us achieve our positioning and distribution

requirementsrequirements

– Initiate updates on insertion orders (rate/quantity)Initiate updates on insertion orders (rate/quantity)

– Quick response Quick response

• Flexibility and innovation—the business climate has Flexibility and innovation—the business climate has changed and newspapers need to adaptchanged and newspapers need to adapt

• Keep Staples informed of industry trends and Keep Staples informed of industry trends and changes at the newspaperchanges at the newspaper– Including competitive climateIncluding competitive climate