R and R Printing

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Print Broker Business Plan

Market Analysis Summary

R & R Printing focuses on local large businesses that utilize a variety of printed materials.

4.1 Market Segmentation

Our market segmentation scheme allows room for estimates and non-specific definitions. We focus on large companies, and it is hard to find information to make exact classifications. Our target companies are large enough to utilize a great deal of print products, but small enough that they do not have in-house printing equipment. We say that our target market company has at least 50 people.

4.2 Target Market Segment Strategy

Our target markets are larger companies that utilize diverse printed materials. We chose this group because the marketing and purchasing departments are generally too busy to research and follow a printed product from beginning to end. They usually rely on the expertise and knowledge of a print vendor they can trust. The focal point of our marketing strategy will be direct face-to-face contact with those individuals that make the print vendor choice.

4.2.1 Market Growth

According to the December 1999 issue of Fortune Magazine, Dallas was ranked number one in their "Best Cities for Business" article. They noted that the Dallas economy is growing at 4.8% annually, significantly above the national average. According to the publication Greater Dallas Chamber, for the year 2000 there are more than 140,000 businesses in the Dallas area, and more that 5,000 corporate headquarters. Eleven of the nation's largest private firms are located in Dallas and 19 Fortune 500 public headquarters. There are 43 colleges and universities. All of these businesses use printed products. As these businesses grow so does their need for printed material.

Printing is one of the largest manufacturing industries in the United States. According to Ron Davis, Ph.D in his report in the PIA 2000 Print Market Atlas, "print markets should remain healthy, providing printers with many opportunities for success." He states that print sales should rise five to six percent, adjusted for inflation and the increase is at three to four percent. The five to 10 year outlook looks quite similar.

4.2.2 Market Needs

The most important market needs are knowledge, reliability, pricing, timely completion and high quality. One of the key points of our strategy is to focus on those decision making individuals that know and understand these needs.

4.3 Service Business Analysis

The following is a description of market segmentation, strategies, and industry analysis.

4.3.1 Distributing a Service

The primary distribution pattern in the printing business is from supplier to agent to consumer. The agent can be an in-house sales person or independent broker.

4.3.2 Competition and Buying Patterns

Printing is generally considered a commodity bought at the lowest price on a bid basis for every job. Service, quality, reputation, and timely production are also factors that effect the final decision to whom the project is awarded.

4.3.3 Main Competitors

Other Print Brokers:

There are numerous print brokers already established. Some of which have been highly successful due to their number of years in the business and established client base. These brokers already have more work than they can handle.

Commercial Printing Companies:

This field is dominated by individually owned print shops that can turn around the work quickly when sold in-house. However, high turnover in employees, especially sales people, makes it hard for them to retain long-term clients.

4.3.4 Business Participants

The printing industry is similar to many others. There are;

  • Large national franchises, such as Minute Man, Sir Speedy and Kinkos.
  • Large local commercial printing companies that do large projects, such as the J. C. Penney Catalogue.
  • Medium sized commercial printing companies that produce large quantity of full color work, such as 50,000 full color brochures or flyers.
  • Small quick print shops, that are individually owned, that do work such as copy, stationery, business cards, newsletters, etc.
  • Print brokers provide all the above as one-stop-shopping.

The Printing Industries of America, Inc. (PIA) gives some indication of the number of local participants in its PIA 2000 Print Market Atlas. Dallas ranked eighth in the United States with 804 print facilities, 18,009 employees, and producing 2.4 billion pieces of print media per year. According to Printing Manager Online Experts, the printing field is dominated by relatively small, privately owned businesses.