1. 1.0 Marketing Plan Executive Summary Situational Analysis 2.0-2.6: For the last 36 years The Container Storehas been the leader in the storage industry. Their Target Markets areHousewares, Office, Travel, Storage, Kitchen. Their core customer isResidential, Affluent, Highly Educated, Busy and Predominantly Female.They sell over 10,000 creative and original products (10-K Report) withhighly trained employeesMarketing Strategy 3.0-3.8: The key strategy is focusing on the on corecustomers, quality and price. Another strategy is adhering to the companiesmission statement while laying out Marketing & Financial Objectives. This planwill show Positioning Strategies, Marketing Programs and Marketing ResearchFinancials 4.0-4.4: The Container Stores break-even analysis, Sales Forecast,Milestones, and Marketing Expense Budget. The financials section of theMarketing plan is essential for Investors to see the conservative growthTCS expects in the next couple yearsControls 5.0- 5.3: Quarter and annual plan control by sales analysis and sales to expenses ratios Profitability/Cost control by product categories and segments Efficiency control of sales force, marketing communications, advertisingand brand awareness

2. 2.0 Marketing Plan Situation Analysis The Container Store (TCS) has grown into the leading specialty retailer ofstorage and organization products since it opened its doors 36 years ago They have done so with a much smaller number of stores than theircompetition by specializing in, growing, and mastering their product offering With an extremely diverse market, the US still offers plenty of opportunitiesfor growth before TCS expands internationally TCS finds themselves is a very comfortable position with a successfulbusiness model and no reason to rush growth beyond their means 3. 2.1 Marketing Plan Market SummaryVirtually anyone with storage or organization needs can be consideredpart of their market. They focus primarily on the residential consumer(versus a commercial consumer market). As of 2013, with 63 storesin 22 states and the District of Columbia (10-K Report),they have a nationwide market, with plenty of room to growTarget MarketsHousewares, Office, Travel, Storage, Kitchen 4. 2.1.1 Marketing Plan Market DemographicsWith a product that can be useful to almost anyone, The Container Storesmarket is very broad. Their core customer can be identifiedas follows (10-K Report): Residential Affluent Highly Educated Busy Predominantly Female 5. 2.1.2 Marketing Plan Market Needs The Container Store provides storage and organization products with a goalto provide a solution for any lifestyle and any situation They sell over 10,000 creative and original products (10-K Report) withhighly trained employees who are skilled at matching their productswith consumers unique needs Based on the quality and price of their product, TCS requires a consumerwith the disposable income to acquire belongings (and enough of them)which require storage and organization as well as the desire to keeptheir home neat and orderly TCS also requires a dense population of its core customer in order toinitially open a location and to sustain itself 6. 2.1.3 Marketing Plan Market Trends & Growth We believe the category is growing and will continue to grow due,in part, to several favorable demographic trends(1) The desire for efficiency and organization of Baby Boomers as they becomeempty nesters(2) The generation of Baby Boomers children driving demand fororganizational products as they move into their first homes(3) The increase of dual-income families with a need for solutionsto organize and simplify their busy lives. Given The ContainerStores industry leadership, unmatched product assortment andcustomer service, and national footprint, we believe we are wellpositioned to increase our share of this growing category. Cultural influences toward a stress-reduced, uncluttered, cleanlifestyle also lead consumers to TCS for solutions to their storage needs(10-K Report) 7. 2.2 Marketing Plan SWOT Analysis & CompetitionStrengths WeaknessesOpportunities Threats StrengthsEmployeesCustomer ServiceProduct LinePowerful BrandWeaknessesPriceDirect SalesNumber of Stores OpportunitiesOnline SalesExpandingMarketsUntapped MarketsThreatsCompetitionChange inCustomer DemandChange inLifestyle2.3 CompetitionThere is little direct competition from other national or regional retailersin the storage and organization market. However, storage and organizationproducts are sold by a variety of retailers,Walmart, Target, IKEA, Bed Bath & Beyond,Crate and Barrel, Home Depot, Lowes 8. 2. 4 Marketing Plan Product OfferingTheir stores typically showcase 16 different lifestyle departments (10-K Report) Bath: countertop, cosmetic, jewelry, shower, and drawer organization Box: boxes, packing material, tape, bags, specialty boxes Closets: shoe racks, hangers, hanging storage bags, garment racks Collections: media storage, photo storage, display, small craft & parts organizer Containers: (boxes, baskets, tins, containers) Elfa: wall & door racks systems, drawers accessories, utility & garage systems Food Storage: canisters, jars, bulk food storage, plastics, glass Gift Packaging: gift wrap, tags, ribbon, bows, gift bags, gift boxes Hooks: wall mounted, self-adhesive, magnetic, over-door, removable Kitchen: drawer liners, countertop, dish drying racks, cabinet storage Laundry: step stools, hampers, laundry bags, drying racks, cleaning tools Office: desktop collections, paper storage, message boards Shelving: free-standing shelving, wall mounted, cube system, desks, chairs Storage: drawers, boxes, bins, totes, crates, carts Trash: recycle bins, wastebaskets, open cans, step on cans, bags Travel: luggage, totes, clothing organizers, cosmetic, jewelry, travel bottles 10,000 original products 700 vendors worldwide 2,000 new products each year into their stores 9. 2.5, 2.6. Keys to Success & Critical Issues Two critical issues facing The Container Store are how do they driveonline sales and how do they expand their store base without dilutingthe high quality experience they are known The Container Store currently collects about 5.6% of net sales onlineand thru their call center, with an additional 4.3% of net sales comingfrom The GoShop! Click & Pickup (online order, in-store/curbside pickup) A company this large and broad with a wide-ranging product baseshould be doing more online/direct sales than 10%. On a positive note, online and call center sales increased 140% fromfiscal 2009 to fiscal 2013, including 11% growth in fiscal 2013.But these numbers leave much room for improvement forThe Container StoreThe Tree Major Keys to Success are: Their Employees Their Loyal Customers Their Business Plan 10. 3.0. Marketing Plan StrategyMarketing Strategy Focus on creativity, multifunctional, and customizable organization andstorage products. Saves the customer time, space, and improves the quality of their lives 11. 3.1 The Container Store MissionAs said on The Container Store website, We believe our commitment tothe category, breadth of product assortment, passionate employees andfocus on solutions-based selling create a long-lasting bond with ourcustomers and foster devotion to The Container Store brand. As a result,we continue to expand our base of passionate, enthusiastic and loyalcustomers, which we believe will further drive our growth and profitability.We foster an employee-first culture built around our Foundation Principles,which define how we approach our relationships with our employees,vendors, customers and communities and influence every aspect ofour business 12. 3.2 3.3 3.4 Marketing Objectives, Financial objectivesand Target Markets3.2: Marketing Objectives Develop more multi-channel customers(ones that shop both in store and online). Increase direct to consumer percentage of sales(web and catalog); currently at 10%(when compared with 90% of sales come from retail stores). Make positive, strong growth each quarter3.3: Financial Objectives Increase annual sales. Currently $500 million in annual sales. Increase budget on catalog distribution to increase mail circulation3.4 Target Markets- Store focuses on females, residential, higher class customers, who is anon the go type of person and needs quick and simple solutions.- Store does appear to be branching out to reach other target marketswith their carrying of specialized products.(I.e: Their college/dorm section and their traveling products). 13. 3.5 Positioning3.5: Positioning Positioning itself as the number one store in North America to satisfy onesorganizational dilemmas, and provide with necessary household tools- The Container Store will also focus on promoting its Elfa brand, which is aone of the main suppliers of shelving units (used in closets for example).Although this brand is sold worldwide, The Container Store is the onlydistributor of it in North America Its employees are also trained and knowledgeable. Partnered with theirproducts, this makes The Container Store a leader in thestorage retail industry 14. 3.7 Marketing Program Pricing - Based on per-product retailprice when compared with otherretailers. Will be in speciality storepricing and quality of product versusother retailers. Distribution - Retail stores are numberone comprising 90% ofThe Container Stores distribution sales.10% are from the website and direct toconsumer catalogs. Advertising and Promotion: Print and webadvertisements utilized. Social media likeFacebook and Twitter used to reach moreconsumers. Also, a blog with sweepstakesare on the website and attracts customers Customer Service: Specially trainedemployees with strong storefoundational principles 15. 3.8 Marketing Research Ability to reach customers both in store, on line, and through their catalogs Enables them to see what products are being utilized by customers,and which ones arent as popular. Possibly make the transition to becoming more commercially based as well They can see if customer service plays a role in customers returning, or ifonline store sales increase.. 16. 4.0, 4.1, 4.2 FinancialsThis section will detail The Container Stores break-even analysis, Sales Forecast,Milestones, and Marketing Expense Budget. The financials section of the Marketingplan is essential for Investors to see the conservative growth TCS expects in the nextcouple years. 17. 4.3, 4.4 Financials 18. 5.0 ControlsTo assess the effectiveness of its marketing strategies,The Container Store implements the followingassessments and evaluations Quarter and annual plan control by sales analysis and sales to ratios Profitability/Cost control by product categories and segments Efficiency control of sales force, marketing communications andadvertising and brand awareness