Fastenal Final ad plan

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A.) Situation Analysis Target Market:

Industrial General ContractorsBlue collar maleFrom a small townAge 30-55Average annual income = $95,000Listens to FM country radioMarket Overview

● Market Size:○ Over $400 billion industry○ $5.1 billion Building Materials Wholesale industry○ $61 billion Electrical Wholesale industry○ $10.4 billion Industrial Equipment Wholesale industry○ $211 billion Basic Materials Wholesale industry

● Market Growth Rate:○ 25 of the top 50 companies in the industry had an average decline in sales by 11%○ 23 of the top 50 companies reported an average increase of 11.6% in sales○ 2 companies reported flat growth rates

● Customer:○ Millions of customers purchasing:

■ Maintenance■ Repair and operating supplies■ Electrical■ Plumbing■ Sheet metal ■ Road contractor construction

● Mixed vertical integration ○ Industry that provides both products and services

● Technology/Innovation○ Technology is a major factor ○ Product and service innovation are crucial in keeping up with industry leaders

● Large distributors, who buy their products in bulk, have an advantage in the negotiating process.● Competitive advantage.

○ Large distributors, who buy their products in bulk, have an advantage in the negotiating process

○ Must be able to keep up with and invent new and better services○ In order to continue growing and retaining a customer base, companies must always be

aware of the customers changing needs and concerns● Capacity Utilization:

○ Level of activity in the market depends on this○ Overall average of 89.2%

● Profitability

Fastenal: “Small Enough to Listen, big Enough to Deliver”

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○ Subpar to average● The Industrial distribution industry is an $825 billion industry in the United States and Canada● Companies in resources, agriculture, forestry, mining, and oil can be large clients to attract● All businesses need company products to function, from business supplies to equipment for either

the business itself or their clients● Residential companies need products for heating, ventilation and air conditioning units as well as

the buildings themselves● Ideal areas are major cities and around major agricultural and natural resource production centers

B.) SWOT Analysis ● Strengths

○ Offers services like inventory management, small fastener manufacture, and machining○ S&P 500 Component○ Fastenal acquired parts of Holo-Krome, a US socket head screw making company○ Fastenal has been contracted by the US Government on a number of times○ Strong presence across the US

● Weaknesses○ The company paid a settlement to prevent litigation from cession of contract

● Opportunities○ Fastenal will be the primary sponsor in the NASCAR Sprint Cup Series enhancing its

image○ Acquisition of smaller players○ Rapid expansion plan for future

● Threats○ Increasing competitor activity○ Fluctuating economy affects operations and business

C.) Evaluation of Current Strategy● Qualitatively

○ Growth through customer service○ Fastenal does not raise prices to earn more profits, but opens more store sites○ Offer a variety of products and services to appeal to a broad band of buyers ○ Seek low internal costs○ Fastenal selects store locations based on:

■ Proximity to distribution centers■ Population statistics■ Employment data for manufacturing and construction

○ Store expansion goals of 14%-16% per year● Quantitatively

○ 17,277 employed in 2013○ 2,700 store locations worldwide○ Annual (2013) sales of $3.33 billion

■ Increase in sales by 6.1% from 2012○ Net earnings in 2013 $449 million


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■ Increase in 6.7% from 2012○ Gross profit increased from 51.5% in 2012 to 51.7% in 2013○ Expenses grew by 7.0%

D.) Company Advantages● Having a broad selection of products helps differentiate from the competition● Having many SKU’s makes Fastenal a one stop shop where all the clients needs can be met at

one distributor, without going to another store ● Have services and knowledge about products● East Texas markets are always open for more clientele due to rising businesses ● Separated from large cities, East Texas is prime real estate for smaller businesses that are looking

to thrive ● Having all products in one store, or within a phone call, allows Fastenal to be a one stop for all

small businesses as well as households in need ● Since Fastenal is a distributor, there is always more room to bring in more products which

expands room for clients● International Stores:

○ Brazil○ Canada○ China ○ Columbia ○ Czech Republic○ Germany ○ Guam○ Hungary○ Italy○ Malaysia○ Mexico○ Netherlands○ Panama○ Puerto Rico○ Romania○ Singapore○ Thailand○ United Kingdom


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E.) Competitors● W.W. Grainger

○ Multi-national■ Business publishing■ Cable T.V.■ Catalogs and directories■ Co-Op advertising■ Direct mailing to business establishments ■ Exhibits and trade shows■ Foreign■ Internet advertising■ Outdoors (posters, transit)■ Premiums and novelties ■ Spot radio

● Hughes Supplies○ Multi-national

● Lawson Products ○ Multi-national

■ Business publishing■ Catalogs and directories■ Direct mailing to business establishments■ Direct mailing to consumers■ Daily newspapers■ Exhibits and trade shows■ Foreign■ Internet advertising■ Premiums and novelties■ Product samples■ Yellow page advertising

● Home Depot ● Lowe’s ● True Value● Ace Hardware● Snap - On● Menard ● Applied industrial Technologies ● Do It Best ● Top ten companies in the industry have national impact

○ Some have expanded internationally to:■ Canada ■ Singapore■ Mexico■ Puerto Rico


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● Major competitors have been established for over 25 years● Top competitors provide products, services, and manufacture a small percentage of their

products.● The goal is to provide something to the customers that these competitors do not offer, making

Fastenal the preferred option ● Having physical stores rather than simply a catalog or website gives Fastenal an edge over

competitors because businesses can physically go in and look for parts or services to know for a fact what they are getting, eliminating the doubts that ordered products won’t fit

● Threat:○ Little threat on a national/global level○ Many threats on a local level

● Large distributors have the potential to gain customer loyalty through convenience

F.) Market Analysis ● Longview

○ 54 commercial contractors (yellow pages)○ advertise on 259

■ goes through: Kilgore, Henderson■ 259 branches into 59 and goes through Nacogdoches■ 2 Fastenal locations

● Henderson○ 2 commercial contractors○ The Carpet Depot and John Wright Construction

● Carthage○ 2 commercial contractors○ Located in small section on 59

● Nacogdoches○ 42 commercial contractors○ advertise where 259 splits with 59

● Kilgore○ 3 commercial contractors○ advertise on 259

● Lufkin ○ 44 commercial contractors○ advertise on 59 and loop 287

● Marshall○ 4 commercial contractors○ advertise on 59

● Center ○ 4 commercial contractors○ highway 7 runs through 96

● Tyler○ 66 commercial contractors○ Advertise on 69


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G.) Advertising● Pandora Advertising

○ Visual Ad■ $5-$7

○ Audio Ad■ $8-12

○ Video Ad■ $15-$25

● Advertising on contracting website○ There is not currently any advertising on the websites that contractors go to in order to

bid on jobs, but for the right price it could be possible○ Try to establish a relationship with the ‘website’

■ Fastenal will advertise that particular website in Fastenal stores if they advertise Fastenal on their website

● Radio○ KNUE- Tyler/Longview

■ Rates for one 30 second spot● 6a-10a - $65-$70● 10a-3p - $55-$65● 3p-7p - $57-$67● 7p-12mid - $30-$40● 12min-6a - $20-$30

■ Variety of digital display assets ranging from $400-$1200 per month which can include video commercials. All come with data to show impressions and clicks.

● Local News Papers● Henderson Daily News

○ Four lines 1-3 days $10.50

○ Four lines, one week $19.50

○ Four lines, two weeks, $34.65

○ Five lines, 1-3 days $13.50

○ Five lines 1 week $24.00

○ Six lines 1-3 days $16.50

○ Six lines 1 week $28.50

○ Seven lines 1-3 days $19.50

○ Seven lines 1 week $33.00

○ Eight lines 1-3 days $22.50

○ Eight lines 1 week $37.50


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● Nacogdoches

Front Page Daily Sunday

○ Frequency: 1 Time $465 $625

○ Frequency: 6 Times* $415 $520


○ Strip ad size 6 columns x 2 inches in full color

Other Section Fronts Daily Sunday





-Nac Today (Page 2A), Weather or TV Page

Frequency: 1 Time $100

○ Frequency: 26 Times* $ 90

○ Frequency: 52 Times* $ 80


● Lufkin Daily News

Front Page Daily Sunday





Other Section Fronts Daily Sunday






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● Longview News-Journal

Daily Per Inch Sunday Per Inch

Open $31.04 $39.09

Annual Contract Rates:

Annual Inches Daily Rate Sunday Rate

175 $20.18 $24.76325 $19.27 $23.80650 $18.47 $21.761,000 $18.15 $21.281,600 $17.85 $20.892,300 $17.63 $20.493,000 $17.46 $20.325,000 $17.23 $19.917,000 $17.04 $19.808,500 $16.97 $19.6710,000 $16.84 $19.5115,000 $16.66 $19.3120,000 $16.47 $19.0925,000 $16.24 $17.9145,000 $15.37 $16.91

● Tyler Morning Telegraph

Local Retail Advertising Rates:Column Inches Monday-Thursday , Saturday-Sunday

Open $24 .86 $27 .73


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Appendix A:

http://www.hendersontx.us/documents/7/Open%20Records%20Request.PDF

http://www.lamar.com/Tyler/InventoryBrowser

http://work.chron.com/average-salary-general-contractor-6862.html

http://www.ecmag.com/section/your-business/aging-electrical-contracting-industry

Appendix B:

Primary Slogan:“Small enough to listen, big enough to deliver”

Additional Slogans:“Where you want it, when you want it”“Trust is just one of the things we do well”“Masters of consistency, masters of quality”


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Appendix C:


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Appendix D:


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Appendix E:


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Appendix F:

Fastenal Internship - Social Media InternJob descriptive:Fastenal is a thriving regional business that is the most efficient supplier of OEM, MRO, and construction products. The company is in search for a qualified intern to join the Fastenal team. Fastenal seeks an intern that exhibits knowledge and understanding of the digital media landscape, including various social media websites. This intern should be prepared to work in a fast-paced team environment, and will finish the internship having gained broad experience in various aspects of management and great online advertising.Responsibilities

· Assist in the creation of social media accounts, e-mail campaigns, online promotion, etc.· Assist in the management of online websites· Contribute to website redesign project· Assist with fulfillment of social media marketing and e-mail campaign offers· Assist with monitoring and posting on social networks· Assist with online outreach and promotion using Facebook, Twitter, Instagram, and more· Assist with preparation and designing· Perform duties regarding social media marketing and online advertising· Seek and analyze competitor marketing and sales materials online· Prepare online surveys· Open and sort mail on and offline· Provide support to social media efforts· Maintain tracking report of public relations activity

RequirementsApplicants should have experience in digital technology and traditional media, at least a 2.5 GPA, and pursuing a college degree.


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Appendix G:

FASTENAL LOOKS TO THEIR ROOTS FOR FURTHER GROWTH

By Anna Goldberg November 16, 2014

Nacogdoches, TX — Distribution company Fastenal is looking to grow their business through general contractors in the East Texas area. Throughout the years contractors have dropped from 33% to 10% of Fastenal’s business. Fastenal would like to re-focus their efforts on this due to the added benefits in which they could provide. Fastenal has over eight offices throughout East Texas including Lufkin, Nacogdoches, Carthage, and Longview. Because of their many store fronts they are able to service customers in almost all of the East Texan towns. As a distributor, they are able to bring in whatever the customer may need; they are unlimited concerning the production of a wide array of products. This makes them a more versatile distributor that is also more present in their customers’ businesses. Wherever your contracting business may travel, there is a high chance that Fastenal has a store front in that town, or the next town over which means a sales rep is always nearby. Looking to Fastenal to grow your business is the smart choice. They have been customer service oriented since 1967 and continue to operate under the same simple values. Look for Fastenal in your town for a chance to grow with one of the nation’s largest distribution companies.

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Send To: The Daily Sentinel (Local news and Business sections) Phone number: 936-564-8361Address: 4920 Colonial Dr.Nacogdoches, TX 75961

Henderson Daily News Phone number: 903-657-2501 Email: [email protected]: P.O. Box 30 Henderson, TX 75653

Longview News-Journal Email: [email protected] number: (903)-757-331, circulation: 237-777Address: 320 E. Methvin St. Longview, TX 75601

Sustainable Construction Magazine


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“Sustainable Construction Magazine delivers best-practices, products and resources that contractors can use to balance environmental, social and economic issues relative to sustainable construction.”Modern Contractor Solutionsmscmag.comDonna CampbellEditor in [email protected] Magazine Email us: [email protected] us: (800) 369-6220Write us: Naylor, LLC5950 N.W. First Place, Gainesville, FL 32607

“Constructor magazine, published by Naylor, LLC, is the official bi-monthly publication of the Associated General Contractors of America.”

Appendix H:


Fastenal Final ad plan

Documents

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