H&R Block
Strategic Proposal:
The College Block Program
Team 4: South Hampton
Through the use of existing and potential strategies, this
proposal is specifically designed to optimize recognition,
retention and recruitment for the H&R Block South Hampton
office, located in Benicia.
Team 4 Consultants:
Brett Lowers
Lila Schwarzbach
Valerie Potts
Timothy Gerritsen
EXECUTIVE SUMMARY
H&R Block has been a tax service provider since 1955. They have up-to-date knowledge, extensive
training and state-of-the-art technology to ensure your taxes get done right. H&R Block currently has a
community-based project in place called the “School House Program” and an internet-based program called “Best
of Both”. The South Hampton group’s strategic plan focuses on expanding and capitalizing on the current “School
House Program” and “Best of Both” by creating a new venture called the “College Block Program”. It is hoped that
through the implementation of this strategic plan, H&R Block will be able to gain the customer recognition,
retention, and recruitment they strive for.
Our mission is to increase H&R Block’s current clientele base 10% by expanding our current tax
preparation services to accommodate college students in the Benicia and Vallejo areas. It is our goal to guide them
with their tax and financial needs throughout college and into their future careers, by establishing long-term
relationships that will last a lifetime. Once the “School House Program” proves successful, we foresee a national
implementation of the program within the next 5 years.
Through this strategic plan, we are looking to target the younger generation market of college students,
hoping to influence them early on and establish long-term relationships. H&R Block can become a staple figure in
the tax preparation industry.
The implementation of our strategic plan can simply be done by making a presence on college campuses
through presentations, demonstrations, and visual aids (i.e. flyers, postcards). By establishing interpersonal
relationships and putting a face on H&R Block’s image, we are looking to take the intimidation factor out of filing
taxes, since they can be stressful to young people
When examining H&R Block’s competitors in the area, we concluded that they outshine H&R Block in
regards to having a more personable relationship with your tax consultant. By putting a face on the H&R Block
image to college students through our strategic plan, this weakness (in comparison to competitors) can be
overcome.
The objectives of our strategic plan are as follows: develop a new market for H&R Block focused on
college students, and expand the “College Block Program” throughout Northern California within 2 years.
We have three main goals we would like to accomplish through our strategic plan: establish and build
relationships with high school and college students that will last a lifetime, increase customer base by 10 % within
the initial 2-year period, and extend the program nationwide by 2015.
1
CONTENTS
Executive Summary .......................................................................................................................................................1
Introduction ...................................................................................................................................................................3
Mission and Vision .........................................................................................................................................................4
External Factors and Analysis ........................................................................................................................................5
Mean Income Level....................................................................................................................................................5
Ethnic groups .............................................................................................................................................................6
Current School Enrollment ........................................................................................................................................7
Competitive Comparison ...........................................................................................................................................8
Internal Factors and Analysis .......................................................................................................................................10
Long-Term Objectives ..................................................................................................................................................11
Implementation of “Latino Blitz” .............................................................................................................................11
Office Improvements ...............................................................................................................................................11
Best of Both .............................................................................................................................................................12
Evaluation and Analysis of “The School House” Program .......................................................................................13
H&R College Block proposal ....................................................................................................................................14
Stratagy Evaluation and Selection ...............................................................................................................................16
“Marketing”/ Implementation Plan .............................................................................................................................18
Strategy –High Order ...............................................................................................................................................18
Strategy-Low order ..................................................................................................................................................19
Evaluation Plan ............................................................................................................................................................20
Potential Issues ............................................................................................................................................................20
Conclusion ...................................................................................................................................................................21
2
INTRODUCTION
H&R Block had originally asked the different groups in Dr. Bruce Hartman’s Strategic Management class to
prepare a strategic plan in order to implement a “Latino Blitz”. After careful research we found that only 10% of
individuals living in Benicia are Hispanic or Latino. With much consideration, the South Hampton office group
came to the conclusion that a “Latino Blitz” would not be applicable to the South Hampton office due to low Latino
demographics. However, we still believe that it is important for there to be bilingual brochures and tax
professionals.
After careful deliberation with the H&R Block district manager for Vallejo, Dorothy Lirio-Casa, it was
concluded that it would be best if the South Hampton group looked at other alternatives for a relevant project that
would tap into underdeveloped markets. Dorothy Lirio-Casa discussed the “School House Program” with us, and
encouraged that it be our main focus. Another program mentioned was the “Best of Both”.
The South Hampton group decided that a plan inspired by the current district “School House Program”
would be the best course of action. Our strategic plan is to expand the “School House Program” to colleges, with
different promotions. It is called the “College Block Program”.
The current “School House Program” consists of free tax returns for high school students, a 10% discount
coupon for parents of high school students, and a flat-fee tax return service for high school teachers. These
discounts are only available to students, parents, and teachers at high schools that are official participants of the
“School House Program”.
This project was compiled to the best of the groups’ capabilities based on the information provided.
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MISSION AND VISION
“Our mission is to increase H&R Block’s current clientele base 10% by expanding our current tax preparation
services to accommodate college students in the Benicia and Vallejo areas. It is our goal to guide them with
their tax and financial needs throughout college and into their future careers, by establishing long-term
relationships that will last a lifetime. Once the “School House Program” proves successful, we foresee a national
implementation of the program within the next 5 years.”
“Best of Both”
Lifetime
Involvement
Long Term
Relationships
Guidance
Increase Client
Retention
Community
Involvement
“School House
Program”
New Program
Expansion
College Block
4
EXTERNAL FACTORS AND ANALYSIS
When first designing our strategic plan, our team first had to examine and evaluate the potential external
factors that could influence which plan would best work for the South Hampton office. After much deliberation,
we concluded that there are a few keys issues that could heavily influence our decision process:

What is the average income level of families living in Benicia?

What is the percentage of Spanish-speaking families/individuals living in Benicia?

What is the current school enrollment of students living in Benicia?

Who are our largest competitors? Not only in Benicia, but online as well?
A search of the US Census bureau gave our team the information needed to successfully address
demographic questions, and a competitive investigation gave us the necessary information to address these
questions. The conclusions of our findings are presented on the following pages.
MEAN INCOME LEVEL
For a strategic and marketing plan to succeed, it is imperative that the market you are serving is
understood. One way to judge this is to compute the mean income level of families living in Benicia. This
important figure can give invaluable insight to the consultation firm. A US Census Survey taken in 2008 shows
that the mean income level of families living in Benicia is approximately $87,739. Compare this to the national
average $50,233. Please see Figure 1 for a comparison of income.
5
2500
2000
1500
1000
500
0
Figure 1- Comparison of Household Income in $1,000’s
What does this mean for the South Hampton office? First, we can easily identify and state that Benicia is
an upper income level city. With a mean score of over $30,000 higher than the national average, the South
Hampton office resides in a higher-end neighborhood. This can be useful in identifying the clientele that could
potentially visit the store. Additionally, this gives us a good basis of what types of tax services may come through
the office in the upcoming tax season. Lastly, this snapshot of the income level in Benicia can help us determine
what kind of promotional discounts would be appropriate for this office. Often, marketing teams decide whether
“flat-rate” or “percentage” discounts (income-based) would be best. In this situation, considering the potential for
difficult and more involved tax returns, we have decided that a percentage discount would be the most cost
effective plan. Later, we will address the various discount opportunities available and how best they pertain to our
strategic plan.
ETHNIC GROUPS
When presented with the “Latino Blitz” marketing campaign, we decided the first step would be to
determine if a Latino campaign would be beneficial in to the South Hampton office in Benicia. We looked at the
percentage of families in the area surrounding the South Hampton office who primarily speak Spanish in their
homes. Unfortunately, this information is not readily available on any online or offline services. Thus, we decided
to analyze the percentage of Hispanic/Latino families currently living in Benicia. The numbers show that only 10%
6
of individuals living in Benicia are Hispanic or Latino. For a graphical representation of Hispanic/Latino ethnicity,
please see Figure 2.
Hispanic or
Latino (of
any race)
6%
Mexican
3%
White
alone
41%
Not
Hispanic or
Latino
50%
Figure 2- Ethnic divisions
This information proved to be a key factor in determining a strategy formulation for the South Hampton
office. If we were to design a marketing campaign for this location, would a “Latino Blitz” campaign produce the
greatest return on investment? When looking at the numbers, 10% did not seem like a large enough number to
constitute a large investment of time, energy, and money to make it a complete strategy. However, we did
decided that creating a secondary strategy that would ensure that our final plan included services for Spanish
speaking individuals would be important. It is also important to note that these numbers do not necessarily
directly show the total number of Spanish speaking persons in the Benicia area, though we feel it does give a
decent benchmark.
CURRENT SCHOOL ENROLLMENT
After realizing that the “Latino Blitz” program may not be the best use of resources for this particular
office, our group set out to see where the best market was to create retention, recognition and recruitment. One
idea that came to mind was the college student demographic. As students leave home, they must quickly learn
how to fend for themselves; this includes learning to file for tax returns. In this situation, the possibility of new
client recruitment is huge. Our research shows that 30% of students enrolled in an education program are in
college. This relatively untapped market could potentially not only attract college level students, but also attract
their parents as well. Figure 3 further reinforces this hypothesis.
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Nursery
school,
preschool
4%
College or
graduate
school
31%
Kindergarten
3%
Elementary
school
(grades 1-8)
38%
High school
(grades 9-12)
24%
Figure 3- School Enrollment K-College
This new piece of information provides an interesting twist to our strategic decision: the potential for the
college market is huge, how can this be best attained? A current H&R Block program named “The School House
Program” provides an interesting groundwork for a potential expansion into the college demographic. These ideas
will be addressed later on.
COMPETITIVE COMPARISON
Around the Benicia area, there is a surprising amount of tax preparation services available. Below is a list
of some local companies that provide similar services as H&R Block:

Benicia Tax Services

Ats Tax & Financial Solution

Strong Tax Services

Emerald Professional Service

Gaynel Kew EA Tax & Financial

Mc Veigh & Associates CPA

Barata Sylvia Ea

Kaori Mimaki

Kay's Financial Services
8
These “boutique” stores provide a personal experience, much like a small home business. The fact of the
matter is though, these small stores simply do not have the same financial backing, national recognition, or
professional “tax masters” H&R Block does. Since Benicia is a city of community, the argument can be made that a
small business environment may be more appealing to people in Benicia. It is in our opinion however, that the
majority of professionals in this South Hampton area would rather have the peace of mind knowing that their
taxes will be done right the first time.
One competitor stands out from the rest however. Jackson Hewitt, located on Columbus Parkway is H&R
Block’s biggest competitor in the area. This company provides face-to-face tax services, at a competitive price. In
situations such as these, a Competitive Profile Matrix (CPM) would be made to distinguish the strengths and
weaknesses of each company. Table 1 (below) shows a CPM between three competitors: Inuit Inc. (INTU),
Jackson Hewitt (JTX), JTH Tax (JTH, Privately held), and the industry standard. After viewing this information, it
is clear that H&R Block is the market leader.
HRB
Market Cap:
6.76B
Employees:
Qtrly Rev Growth (yoy):
Net Income (ttm):
9.53B
JTH
146.22M
N/A
INDUSTRY
275.41M
8,300
7,800
355
2801
892
2.50%
17.70%
N/A
12.60%
4.06B
3.19B
249.08M
87.60M1
454.37M
38.79%
80.44%
42.60%
N/A
34.72%
1.04B
954.73M
68.28M
N/A
68.28M
23.38%
20.82%
22.07%
N/A
8.98%
EBITDA (ttm):
Oper Margins (ttm):
JTX
-7.20%
Revenue (ttm):
Gross Margin (ttm):
INTU
517.55M
431.04M
18.17M
N/A
N/A
EPS (ttm):
1.457
1.308
0.637
N/A
0.02
P/E (ttm):
13.83
23
7.97
N/A
14.85
PEG (5 yr expected):
1.29
1.22
0.82
N/A
1.29
P/S (ttm):
1.71
3
0.56
N/A
0.96
Table 1- Competitive Profile Matrix of Industry Competitors
Additionally, H&R Block has something that Jackson Hewitt does not: Tax Professionals. At Jackson
Hewitt, it is not necessary to pass an exam to file the public’s taxes, while at H&R Block, a course must be taken to
make sure the staff is well-trained and meets set standards. In the end, this proves that H&R Block is the better
choice for business professionals and families.
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INTERNAL FACTORS AND ANALYSIS
The internal factors listed below (were chosen for the following reasons: It is clear that while H&R Block is
the largest tax preparer in the U.S., a large cut in domestic offices will in many ways affect their already low
presence at U.S. colleges. In order for the “College Block Program” strategy to work on a commercial level, these
weaknesses will have to be addressed with the available resources. Obviously this is something that will have to
be examined on a district-by-district basis. The factors we chose are based on the information at hand regarding
H&R Block, and based on the meetings with the district representatives.
Strengths are based on the current position of H&R Block in the tax services market place. Furthermore,
due to the unique market gap and possibility to enter a new niche spot in collegiate tax preparation. The fact that
H&R Block does have an international presence is definitely an added strength that benefits any possible long-term
relationships with college clients expanding their future careers abroad.
Key Internal Factors
Weight
Rating
Weighted
Scores
Strengths
1. HRB has high brand recognition in the US
0.1
4
0.4
2. HRB offers do-it-yourself tax prep with HRB
0.15
3
0.45
0.05
3
0.15
0.05
4
0.2
0.05
4
0.2
0.1
4
0.4
0.15
2
0.15
2. Closing 400 regular offices this year
0.15
1
0.15
3. Closing of 1,200 Wal-Mart offices this year
0.1
1
0.2
4. Expects a continued shift to the "do-it-yourself"
0.1
1
0.2
support
3. Experience with educating College students
about financial responsibility
4. Strong base for implementation of a new
college focused initiative
5. Offices across the United states, Canada and
Australia
6. Offers banking services applicable to college
students
Weaknesses
1. Tax preparation is seasonal – college students
work in semesters or quarters
model from the assisted preparation model.
TOTAL
1
2.5
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LONG-TERM OBJECTIVES
With the internal and external factors documented and analyzed, work can begin by formulating a
strategy with long-term objectives. Before our plan is presented, it is important to mention additional secondary
plans that can work in congruence with our “College Block Program”. This includes the “Latino Blitz”, the widely
successful “School House Program” already put into action by the H&R Block team, and “Best-of-Both”. All of the
aforementioned plans can be considered parts of our overarching “College Block Program” strategy.
IMPLEMENTATION OF “L ATINO BLITZ”
As previously mentioned, in regards to the South Hampton office, the “Latino-Blitz” marketing campaign,
though viable in many other markets, may not be as efficient for the Benicia demographic. With a Hispanic/Latino
population of only 10%, marketing resources may be put to better use in other areas. This is not to say we should
forget our Latino demographic. It is for this reason we feel that creating bilingual promotional material would be
an effective implementation of the “Latino Blitz” in the Benicia community. This relatively inexpensive approach
can greatly serve this small, but specialized market. Examples of such material include, but are not limited to:
brochures, postcards, store-wide posters, discount coupons, etcetera.
The implications of the “Latino Blitz” program are not limited. With a successful implementation, we
could potentially see an increase in our Latino customer numbers, based on the fact that a wider audience can be
reached and informed that bilingual tax professionals are available. Additionally, an “ethnic friendly” positive
public relation image can be built.
In the end, though the “Latino Blitz” marketing campaign may not pertain exactly to the South Hampton
district, small changes in the overall diversity of the office can potentially have an important impact in adding a
more diverse client base in our district.
OFFICE IMPROVEMENTS
In any office environment, it is important to create an open, friendly, and inviting environment. Studies
show that the more comfortable a client feels in location the more likely he or she is to return. This is not to say
that the current layout of the South Hampton office is uninviting, but improvements can potentially be made to
improve the overall appearance of the site. These changes can not only be aesthetic, but in the extra services
offered as well. These include, but are not limited to:

A less “temporary” look
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
During our analysis of the office, we felt the layout/furniture selection seemed temporary,
sterile and cold. Though this may prove to be an expensive investment at first, we feel an
updated “look” may be beneficial to the office environment.

A “home town” experience

In Benicia, it is hard to escape that fact that it is indeed a “small town.” Local businesses thrive
all around our location. It may be beneficial to give the office a small-town feeling by including
local artists, Benicia Herald articles, and other artifacts specific to Benicia history. These small
changes can give a personalized look to the South Hampton office.

Refreshment services

Since tax preparation services can take some time, a refreshment service may be beneficiary to
the incoming clients. Coffee, tea, water, and snacks can greatly increase the comfort of the
guests staying at the office for prolonged periods of time.
Although H&R Block has a strong online presence, it is still represented by its office and Tax Masters
located within. Aesthetic changes, albeit expensive at time, can improve the inviting nature of any office. With
Benicia’s tight knit community, a more personalized décor can draw in the “mom and pop” shoppers. For in the
end, H&R Block does not only want to be your tax advisor, it wants to be your family’s tax advisor.
BEST OF BOTH
The “Best of Both” program is a way for customers, who may not be able to physically come into an H&R
Block office, to still be able to file their taxes with H&R Block through use of the internet and all its great qualities.
The program works by the customer inputting all of their information needed for their taxes into the computer.
The Tax Master then takes the given information, and prepares their taxes. Since most information needed to file
taxes can be found online, many Tax Masters can be authorized by the customer to view all information needed.
This is handy in situations when the customer does not know all of their information. There is a flat fee of $99.00
for the customer to use the “Best of Both” program.
The” Best of Both” program can be used by college students who have gone to college away from their
original H&R Block office. This program allows the student to be away from home, but still have access to the
accommodations of their home office: South Hampton.
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EVALUATION AND ANALYSIS OF “THE SCHOOL HOUSE” PROGRAM
With the creation of the widely successful school house program, we see how though the support of high
school graduates and college-bound undergrads H&R Block can make a significant change in the community, while
growing their customer base. It is for these reasons we felt that including aspect of the “School House” program
into our overall College Block strategy, we could create a successful program that not only helps the local students,
but creates a potential revenue source. But, before we can apply “School House” to our proposal, analysis of this
home-grown project must be completed.
The H&R Block School House Program is designed as a community service project dedicated to helping
local High School students with some form of revenue to complete their tax returns efficiently and correctly. This
service is invaluable to the student who does not quite understand United States tax code.
Additionally, the “School House Program” can potentially add a second or third consumer base. With
every student applying to the program, a discount can be applied to their teacher or parent. In this way, H&R
Block can add new clients to their database. Table 2 and Figure 1 both show the potentiality of growth. It is
important to note that there are three levels of client recruitment. At the South Hampton office, our goal is to
reach 10% of the students at Benicia High School. In the projection below, we have aimed at 20% for high
recruitment, 10% for expected recruitment, and 5% for low recruitment. In each segmentation, it is necessary to
note that income is being received.
School House Objectives
# of Teachers recruited
Revenue from
professors
All Students
(with discount)
20% 358
20%
4
20%
$676.00
10% 179
10%
2
10%
$338.00
89
5%
1
5%
$169.00
20% 175
20%
2
20%
$338.00
10%
88
10%
1
10%
$169.00
5%
44
5%
1
5%
$169.00
5%
Junior/Senior
Table 2
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Revenue from Professors
$800.00
$700.00
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$0.00
20%
10%
5%
Table 3
H&R COLLEGE BLOCK PROPOSAL
The “College Block Program” was inspired by the “School House Program”. While we understand that the
“School House Program” was designed to be a community-based service, we see that it has the potential to have a
viable commercial spin-off. By offering free tax services through the “School House Program”, H&R Block is
starting a relationship with high school students. What we fear is that the foundation set in place in high school
will be lost when those students begin their college career. Also, although it is easier to influence high school
students, the majority of them will not be in the phase of their lives where tax preparation is applicable; therefore,
we want to build onto the established relationship set forth by the “School House Program” by reinforcing H&R
Block’s commitment to their tax needs when they are in college.
The “College Block Program” offers a flat fee of $40 to college students for tax filings. There is also a $30
flat fee offered for students with a GPA of 3.5 or higher. A maximum income level will be established, and for
students who exceed that limit, discounted (rather than a flat fee) tax filings are available. Through this strategic
plan, we believe that H&R Block will build relationships with college students that will make them lifelong clients.
The “College Block Program” is similar to the “School House Program” in that discounts are offered to
professors. Since college professors generally have higher incomes than high school teachers, the implementation
of a $169.00 flat fee could be a financial drain to H&R Block, so a discounted service will be offered instead.
The South Hampton team wants to see the “College Block Program” implemented in colleges in the area
such as: the California Maritime Academy, Diablo Valley College, St. Mary’s College, Laney College, Touro
University, Contra Costa Community College, UC Davis, and Solano Community College. These colleges offer the
14
perfect setting to implement the “College Block Program” on a smaller scale. Our short-term goal through the
program at these local colleges is to establish and maintain strong relationships with at least 10% of the students
at each college. The long-term goal is to see success in the program, and expand it nationally.
To implement the “College Block Program” H&R Block representatives can visit college campuses and
deliver presentations in classes or in communal centers to students and professors. Like the “School House
Program”, the “College Block Program” can have flyers and coupons ready to be handed out at these
presentations. These flyers and coupons can also be distributed into student and professor mailboxes.
We, the South Hampton group, feel that the “College Block Program” has great potential for growth, not
only in our local district, but as a nationwide strategy. Through this strategic plan, H&R Block will be accomplishing
more than just a community-based service. H&R Block can capitalize on the “School House Program” by expanding
into the college demographic. We will be acquiring a whole new clientele base, of students and professors alike.
By creating relationships with the youngest generation possible, most of whom have a very promising future in the
making, H&R Block is tapping into a pristine market. The “College Block Program” can guarantee that H&R Block
will gain the recognition, retention, and recruitment they strive for.
School
House
Program
Best of
Both
Latino
Blitz
College Block Program
15
STRATAGY EVALUATION AND SELECTION
The Plus Minus Interesting (PMI) matrix was used to weigh the main influences that were the basis for
choosing the “College Block” program in lieu of other strategic ideas that were pitched among the consulting
group. As can be seen from the matrix it was felt that the befit of a program that has the option to be
implemented on a nationwide scale (and possibly international) if successful would be an investment worthwhile.
Plus
Minus
Interesting
Great new service +5
Not community based -3
Niche opportunity +3
Could help students across
Possibly a high investment in
We are in a decent position
the nation + 3
"cost cutting economic times" -4
for a trial in Benicia district.
+3
Offers teachers a break +2
How many students file a full
tax-return? -3
Long-term relationship
with students +3
Potential huge market +3
+16
-7
+3
Total: +12
In addition, when we apply Porter’s five forces model to our strategy it becomes apparent that much of
the success of the “College Block” program will rely on the fact that H&R Block is the leading Tax preparer in the
U.S and has the added benefit that it is entering a relatively untapped niche market. In order to solidify its position
H&R Block will have to successfully implement the Leapfrog strategy as mentioned in the implementation plan. By
doing this other offerings by competitors trying to duplicate the new business model will be fended off.
The “In-House” capabilities H&R Block currently has will further assist in keeping and further developing
the increased competitive advantage the new program will offer if implemented as a long-term strategy.
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Threat of new entry:
All Tax preparers could offer a
Competitive Rivalry:
similar service
Several large Tax Prepares in the US
Low barriers of entry
High cost of leaving market
Schools could offer their own
services
Competitive
Rivalry
Supplier power:
We are our own supplier of services
We train our tax own “Tax Masters”
Buyer Power:
Supplier power is very limited
Many potential substitutes such as
free online tax prep.
Threat of substitution:
Can file your own taxes
Some substitution
Online software packages (one time
buy+ free upgrades)
Figure 4- Porters 5 Forces model
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“MARKETING”/ IMPLEMENTATION PLAN
OBJECTIVES

Develop a new market for H&R Block focused on college students

Expand the “College Block” program throughout Northern California within 2 years
GOALS

Establish and build relationships with high school and college students that will last a lifetime.

Increase customer base by 10 % within the initial 2-year period.

Extend the program nationwide by 2015.
STRATEGY –HIGH ORDER
TARGET MARKET

High school graduates

College freshmen starting their collegiate career.

Existing college students
POSITIONING/ UNIQUE SELLING POINT

H&R Block will be able to leverage their current market position and their current experience with the
““School House Program” (which is community based). Based on these experiences and economies of
scale H&R Block is the ideal college tax professional partner.
CORE STRATEGY

We will follow a combination Leapfrog strategy/Flanking strategy since we are trying to a build niche
market for H&R Block in the existing tax preparation industry thus tapping into a customer base
previously untouched.
PUSH VS. PULL

Initially we will have to push our “new” services onto our target markets in order to situate the H&R
Brand into the college students’ mind. In due time this will have to be re-evaluated to determine if a more
equal balance between push and pull can be made.
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LOYALTY VS. TRIAL

The services we are entering, although existing, will be new to college students. Based on this fact we will
have to engage the students on a trial basis through various promotional activities.
STRATEGY-LOW ORDER
PRODUCT

Our new service should clearly reflect the fact that we are trying to offer a comprehensive and tailored tax
service with the backing of the H&R Block brand to college students.
PRICE

We will start with at a flat fee rate of $40 per filing, with a progressive pricing scale based on annual
income and tax needs activating at a certain level of income.

Possibility to adjust prices based on student income levels.
PLACE

An excellent opportunity to gain customer awareness for this amazing initiative is to attend the many
career fairs on college campuses. A good spread of program awareness material through financial aid
offices will also add well to promotional support.
PROMOTION

We will add GPA based incentives. Proposed incentive s are to lower the “flat fee” rate from $40 to $30
with a GPA of 3.5 or higher.

This will also affect the progressive scale used in our pricing strategy.

Flyers and Informational packets distributed by i.e. college financial aid offices
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EVALUATION PLAN
Since we are using the Benicia South Hampton office as a trial location for our strategy this will be the
best available option to evaluate the success of the School House Block Strategy. Once implemented we will be
able to measure success by evaluating market penetration: (# college students signed up/ # students in district). A
similar measure will be possible by evaluating colleges that sign up with the program and agree to distribution of
informative materials through their financial aid offices and advisors.
Based on the demographic diversity in Solano County and the multiple educational institutions in the area
we will be able to gauge the effectiveness of the College Block program in conjunction with the “Latino Blitz” and
“Best of Both” elements of the proposed strategic plan.
To measure effectiveness of our marketing and promotional efforts we will implement various customer
surveys as well as customer follow-ups done on a case-by-case basis when possible by the individual tax masters or
an assigned office representative. This will also reflect our efforts to make our customers feel more at home and
involved on a personal level, hopefully adding to overall customer satisfaction.
POTENTIAL ISSUES
Our ideas are solely strategies; thus, making the possibility of arising issues to come about. The main
issue of concern is the chance of an unsuccessful venture upon attempting to capitalize on the “School House
Program” through the “College Block Program” after investing the time, effort, and money needed. Our goal is to
gain recognition through the “School House Program” and seal retention through the “College Block Program”
and/or the “Best of Both” program.
Our team believes the strategies we have created are flexible enough to work with the ever-changing
markets and industry. Also, if issues do arise, we have faith in H&R Block’s skills and knowledge of the industry and
their clients, to recover from an unsuccessful venture with this strategic plan.
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CONCLUSION
Learning the ins and outs of a company can be very tedious; however, our group tackled the process by
breaking down the company’s wants and needs. Originally, our group was told H&R Block wanted us to create a
strategy to implement a “Latino Blitz” program. After a couple of meetings with Dorothy Lirio-Casa, we got a
different feeling and decided to venture another way; putting our focus more on the “School House Program.”
Our change of course was influenced by a very low percentage of Latinos living in the surrounding areas to our
South Hampton office; thus, making too much time spent on the “Latino Blitz” irrelevant. The course we traveled
on mainly dealt with the expansion of the “School House Program,” because Benicia is a very tight knit community
and we felt the community would respond more to a community service program, than a publicity stunt. We
expanded our course by creating the “College Block” program, which has the potential to retain members of the
“School House Program” as they embark on their next life adventure: college. The retention comes about with the
discounts offered and the easy access with the use of the “Best of Both” program.
It is an unavoidable fact that tax season is a stressful time for all, along with the strains we endeavor in
these tough economic times. With our proposed “College Block Program”, we hope to create a win-win
relationship with both students and professors. The “College Block Program” can guarantee that H&R Block will
gain the recognition, retention, and recruitment they strive for.
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