This is a Channel Program I prepared for, and presented to H&R Block Canada November 6th 2014. The Mission was to develop a Costco channel promotion that will drive positive sales, and increase H&R Block market share of DIY digital tax preperation product market. The MSW model developed by Professor Alexander Roberts PhD, MBA, FCCA, FCIS, MCIBS. was leveraged to execute this case study. Channel Strategy by: Unika Hypolite Concept Design by: Vast Creative

1. This is a Channel Program / Pitch Deck
I prepared for, and presented to H&R Block Canada
.
Channel Strategy by: Unika Hypolite
Concept Design by: Vast Creative.
November 6th 2014

2. Costco Channel Promotion

3. Business Case

4. Business Case
Note: H&R Block wanted this Channel Program to Target 18-34 year olds.

5. Methodology

6. Mission
Develop a Costco channel promotion that will drive
positive sales, and increase H&R Block market share of DIY
digital product.

7. Environmental Scan
Strength Weakness Opportunity Threat Political Economical Social Technological
Threat of
Substitute
Threat of New
Entrant
Bargaining Power
of Customers
Bargaining
Power
Supplies
Competitive
Rivalry
Assisted
H&R Block
Retail
•Knowledgeable
•Quick Process
•Quick Returns
•Strong Brand Equity
• less capable of
providing Complex
Filings
•Less capable of
educating
customers
•Less capable of
providing year
round support
• 20% of filers
are seriously
considering H&R
Block
•1/3 of young
less Affluent
people strongly
consider H&R
Block
•Increasing
trend of DIY
Tax
Preparation
software
• • Prospects
who make less
than 50k are
likely users
•Tax
preparation is
a Mature
Market, only
2% growth
•Prospects 18-34are
of higher potential
•Only 5% of those
who use assisted
consider DIY
•People are likely to
repeat tax prep
method as previous
year
•Desire Professional
Service
•People Perceive Tax
Experience negatively
• Increasing trend
of DIY Tax
Preparation
software
•24% off Assisted
who switched,
switched to DIY
product
•17% of fliers
switched
methods
• • • • Ranks third in
consideration
DIY
Software
• Quick
•Easy
•Portable
•Less Expensive
• Lack of Awareness
•less capable of
providing Complex
Filings
•Less capable of
educating
customers
•Less capable of
providing year
round support
•DIY software
Ranks #1 in
consideration
• • • Tax
preparation is
a Mature
Market, only
2% growth
• Want to feel like
they are in control
•Feel DIY is Faster
•Expect software to
be easy to use
•People are likely to
repeat tax prep
method as previous
year
•People Perceive Tax
Experience negatively
• Increasing trend
of DIY Tax
Preparation
software
•Feel DIY
Software
provides Greater
Value than
assisted method
•Less likely to
convert to
Assisted (3%)
•17% of fliers
switched
methods
• High, few
players in the
game
• Demand
Competitive Pricing
• • smallest share
of DIY market
•45% of people
who switch,
switch to
another DIY
product
Assisted
Accountant,
Tax Preparer
•Capable of providing
Complex Filings
•Capable of educating
customers
•Capable of providing
year round support
•More Expensive
•Longer Return
Processing
• 24% of filers
are seriously
considering H&R
Block
•Increasing
trend of DIY
Tax
Preparation
software
• • Prospects
make more
than 50k
•Tax
preparation is
a Mature
Market, only
2% growth
•Greater appeal to
those over 35
•People are likely to
repeat tax prep
method as previous
year
•Desire Professional
Service
•People Perceive Tax
Experience negatively
• Increasing trend
of DIY Tax
Preparation
software
• Only 5% of
those who use
assisted
(accountants)
consider DIY
•17% of fliers
switched
methods
• • • • Ranks second
in consideration

8. Success Factors
Key Environmental Indicators Critical Success Factor
• Low awareness of H& R Block Digital DIY value proposition •Actively Promote digital DIY across multiple mediums
•Value Perception of H&R Block DIY Software is misaligned
•Educate Prospects
•Create perception of enhanced value
•Tax Prep is a Mature Market, only 2% growth •Target those who are considering switching
•Approximately 7-10% customer movement within
marketplace annually
•Target those who are considering switching
•DIY Digital is a growing category
•Actively Promote digital DIY across multiple mediums
•Taxes are perceived negatively
Create a professional, fun, refreshing experience
Environmental factors we focus on Things that are necessary, and when completed
sufficiently we can realize our goal

9. Increase Retail Foot Traffic
Programs, Initiatives, & Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Goals
Promo X
•Increase of Costco category unit sales vs.
last year.
>1% increase of units sold
February 1 – April 1 2015
Increase Retail Partner Basket of Goods Sold
Programs, Initiatives, & Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Goals
Promo X
>1% increase to average Basket of Goods February 1 – April 1 2015
Increase Market Share of DIY Digital Product
Programs, Initiatives, & Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Goals
Promo X
2% increase to DIY market share
2.5% increase to DIY Digital market share
vs. Last yr.
February 1 – April 1 2015
Enhance Costco Customer Experience
Programs, Initiatives, & Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Goals
Promo X Increase unit sales vs. last year
February 1 – April 1 2015
Objectives Scorecard

10. Causal Chain – In Store
Increase Basket
of Goods Sold
Add product to
basket
Enhance desire
for product
Increase
Awareness &
Accessibility
Promote
Product
Advertising &
Experiential
Give product to
put in basket
Prize
Give customer
money
Gift Card
Enhance
Customer
Experience
Create
Excitement
Instant Reward
Game of
Chance
Anticipation
In Store Critical Success Factors:
•Actively Promote digital DIY across multiple mediums
•Enhance overall Costco Customer Experience
•Educate prospective customers
•Provide added value

11. Presto Program – In store
In-store Game of Chance
providing Rewards with
Potential Value $1.50-
$1000
leveraging Digital & Social
Media

12. Customer Experience Map
Push
Communication
•Email Blast
•Web Ad
•H&R Social
•Game Social
Parking Lot
•Light Poll Signage
•Cart Return Signage
•Gas Station Signage
•Gas Pump
Way Finding
•Floor Graphics
•Hanging Sign over
Boot
Kiosk
• Branded Booth
• Product Demo
Video
• Presto Game
Point of
Purchase
•Cash Belt Vinyl
•Customer Care
Product Pick up

13. Causal Chain – Out-store
Increase foot traffic to H&R Block
Kiosk in Costco During month of
February
New Members
Enhance desire to
become a Costco
Member
Provide Perceived
Value 1.5x cost of
membership
Provide Costco
Reward Card =
$100
Time Bound
Less than 4 Weeks
Existing Members
Redemption of an
incentive
Perceived Value
Greater Than $15
$15 +
Time Bound
Less Than 2 Weeks
Less than 2 Weeks
In Store Critical Success Factors:
•Actively Promote digital DIY across multiple mediums
•Educate prospective customers
•Provide added value

14. Advanced Draw
Digital Online Game
Leveraging Digital and Social Media
Presto Program – Out of Store
Advanced Draw
Email Blast

15. Push
Communication
• Email Blast
• Web Ad
• H&R Social
• Game
Outdoor
•Light Poll Signage
•Cart Return Signage
•Gas Station Signage
•Gas Pump
P.O.P
• Customer Care
Product Pick up
Customer Experience Map

16. Validating Program Choice
Advance Draw Game In Store
Increase Foot Traffic to Costco x x
Increase Foot Traffic to H&R Block Kiosk in
Costco
X x
Increase Basket of Goods for Costco x x
Improve Share of DIY x x
Enhance Product Awareness x x
Improve Filing Completion x
Enhance In-store Experience x
Enhance H&R Block Brand Experience x x
Easy to Understand x x
Engaging x x
Validity x x

17. Positioning Work Sheet
Market Problems Your Solution (features) Benefits
Taxes are Complicated & Time Consuming Fast, Simple, Priced Competitive, Qualified Help Quick Process, Accurate
For: Product is: Ideal for: Better than: Because:
Key
Criteria
The Average Canadian
Less than $100K
household
Software that files
Tax Returns
People who want control,
quick process, and have
simple returns
Turbo Tax
More Value
(What you get vs. What you Pay)

18. Branding

19. Clean/Simple, Modern, Professional, Refreshing
Creative

20. Creative
Clean/Simple, Modern, Professional, Refreshing

21. QTY DESCRIPTION UNIT PRICE AMOUNT
1 Costco Dedicated Product Email Blast $ 35,000.00 $ 35,000.00
8 Costco Home Page Feature Product Banner $ 6,000.00 $ 24,000.00
1 Added Value Prizes $ 169,500.00 $ 169,500.00
Total Channel Partner Investment $ 228,500.00
1
Strategy, Creative and Design, Project Management and
Analytics $ 300,000.00 $ 300,000.00
88 Outdoor Signage (Parking Lot / Gas Station) $ 4,000.00 $ 352,000.00
88 Way Finding $ 4,000.00 $ 352,000.00
88 Kiosk $ 15,000.00 $ 1,320,000.00
Total Program Budget Allocation $ 2,324,000.00
Cost Per Impression $ 0.32
Budget Analysis

22. Budget Analysis
Baseline Data
Number of Canadians 35,160,000
Number of Tax Filers 26,000,000
Number of Assisted Tax Filers 11,440,000
Number of DIY Filers 14,560,000
# of Digital DIY Filers 11,960,000
Extrapolated Data
Number of Costco Members 7,500,000
Number Costco Member Tax Filers 5,546,073
Number Costco Member Assisted Tax Filers 2,440,273
Number Costco Member DIY Filers 3,105,802
Number Costco Member Digital DIY Filers 2,551,195
DIY Digital Conversion Opportunity (7.65% see pg. 10 &11) of H&R Block Canadian Segment Report) 195,166
DIY Conversion Target (10%) 255,119
Retail Assisted Conversion Target (3%) (680 filers per location) 59,953
Investment per conversion $ 9.11

23. Thank You

24. Considerations
• 18-34 <50k are less likely to shop at Costco, consider
exploring post secondary intuitions as a channel
• Branding the Product “Presto” to increase affinity