PAPCAR produces paper for the purpose of writing, printing and graphic arts, and realizes a turnover close to 150 million Euros. Despite 15% of its turnover realized abroad within different interests, its sphere of activity is, today, essentially in France. In this sector of products holding a standardized appearance, PAPCAR still holds a position of historic leader nationally speaking. The company faces however two main competitors in perpetual progression adopting more aggressive sales approaches, built on the fame of its brand for one of them, on good prices for the other: • a distributor representing in France the main British and American brands, • a subsidiary of a Deutsch company recently implemented in France, that distributes basic products within a market turned attractive by the growing consumption of companies. THE PAPCAR OFFER PAPCAR presents its proposition with two essential characteristics: « Variety in choice» and « Speed delivery ». Variety in choice PAPCAR offers with no restriction a variety in size cuts, some 5000 sorts of paper, resulting from combining various qualities of pulp, and variations of grammage and colours decided by production. 10 new sorts per year are added to the catalogue, little is taken out. Within facts, only about a hundred of these articles stand the flow of regular demands and can be qualified of ‘standards’, the rest of the catalogue being for a more specific and occasional demand, generally liable to trends (particular warps) or even seasonal variations (colours). The rolls of paper are produced from pulps supplied by international suppliers, and which, according to their origins, offer a strong diversity in fibres. The fabrication proceeds in three steps: o transformation, thanks to chemical additives, of the suited pulp as to obtain the required quality, o addition of the necessary pigments for the required shade, o drying and rolling as to obtain an even-shaped roll (that would allow obtaining by cutting to shape some 400 reams of 500 A4 leaves). Speed delivery PAPCAR is the fruit of the merger of two companies complementary from a geographic point of view. This merger has preserved their major asset: proximity and capacity to deliver every client within a very short delay, from 48 hours to a week depending on availability. Proximity leans on more than 20 sales units, in charge of distribution, from order-taking to delivery. CLIENTELE PAPCAR offers its services to 3 types of clientele: printing houses, stationer’s and companies. These few figures show the relative importance of each segment: Number of clients (% of delivery places): • 35 % of printing houses, 40 % of retailing stationers, 25% of companies. Turnover realized (% of overall turnover): • 45% of printing houses, 25% stationers, 30% companies. Contribution to mark-up: • 90% printing houses, -5 % stationers, 15 % companies. National market share: • printing houses 50 %, stationer’s 30 %, companies 10 %. Despite their different expectations, PAPCAR has put in place an organisation and some homogeneous techniques as to answer the needs of these populations: o By the wide range of its catalogue, PAPCAR is a key supplier for printing houses. These latter work under orders for companies and individuals that are looking for a capable project manager, beyond printing, to assist them with the design and editing of their works (PR brochures, catalogue, business cards, advertising leaflets, …) and to give them advice regarding the choice of the most appropriate paper with the effects and budgets sought. The printing houses’ expectations depend on it: variety in offer, quality, shades and prices, and even more, the assurance of a reliable and quick supply. However, the advantage of the PAPCAR catalogue is now foiled by the advantage in price of competition regarding the most basic products, at the risk of being only used for marginal needs, where competition has no solid offer. o Stationer’s, ordinary retailers, are basically vigilant on the profit margins they can take. Paper only constitutes a loss leader (reason for entering the shop), that allows the stationer once done with the demand, to attract the customer’s attention on a book or any other product having a higher mark-up. That is why do they only make, most of the time, with just a selection of the most basic products (no more than 20) that they stock in small quantities and almost re-supply one by one. Besides theses basic products, they have PAPCAR’s general catalogue to satisfy if needed, any particular demand. Low prices and speed in re-supplying determine the choice in suppliers. If PAPCAR has managed until now with its clients, the arrival of more competitive competitors does force it to erode its margins to such a point that this segment is today in the red. o A more strained competition turns the company market to be difficult but attractive because of the increasing volume in consumption of printers and photocopiers. The standardization of products gives more than their due to the highest bidder, even if it means changing suppliers for every order. As to compensate its price handicap, PAPCAR puts forward its service capacities: - Speed delivery service in less than 8 hours, against 48 hours at the best for its competitors, made possible by the proximity of its regional layouts; - Capacity of setting up and coordinating operations with printing houses by supporting them in their mass reprography operations, for in-house communication or promotion. As a synthesis, we will highlight the importance in this market of the balance between quality of service and cost control on markets where the development of customer loyalty is the only carrier of profitability on the long-term. PAPCAR has organized itself as to better answer, in its mind, this search for balance.