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12/12/2008

Team Pleasant Hill | Brian Rose, Ryan Hernandez, Jessica Wood

H&R BLOCK PLEASANT HILL: STRATEGIC ANALYSIS

2H&R Block Pleasant Hill: Strategic Analysis

Table of Contents

1.0 Executive Summary1.1 Mission/Vision Statement1.2 Objectives

2.0 Our Clients2.1 H&R Block- Corporate Overview2.2 H&R Block- Pleasant Hill

3.0 Strategic Formulation3.1 Our Method3.2 H&R Block Goals

4.0 Strategic Analysis- Pleasant Hill4.1 Internal Forces4.2 External Forces4.3 Competitive Forces4.4 Overview of Strategic Position

5.0 Our Strategic Recommendation5.1 Diablo Valley College Development Program5.2 Latino Blitz Marketing Campaign5.3 Foreclosure Marketing Campaign

6.0 Tactical Analysis6.1 Diablo Valley College Tactics6.2 Latino Blitz Tactics6.3 Foreclosure Tactics

7.0 Closing Comments8.0 Appendix


1.0 Executive Summary

Strat●AID●g Consultants Inc. is a consulting agency that specializes in providing tax

preparation businesses with an external insight on how business is conducted within their

environment. We are based out of California Maritime Academy which is a central location to

the businesses we plan on working with. Our goal for this period is to provide alternate

strategies for H&R Block while they prepare for the upcoming tax season.

Our primary focus will be to examine various outlets for client growth and retention for

3502 H&R Block Pleasant Hill, 1600D Contra Costa Blvd., and to develop specific strategies for

that location. We plan to create new avenues for client growth in the area and to achieve the

location goal of attracting a minimum of 100 new clients. To achieve client growth we plan to

utilize the local community college, attract the Latino population within Concord, and to

capitalize on the growing number of foreclosures in the bay area. As for client retention, we

plan on improving on their current customer loyalty and their referral programs.

1.1 Mission/ Vision Statement

Mission- “Our mission is to provide our clients with optimal strategies that fit their needs.”

Vision- “We plan to create fresh and bold new strategies using the tools provided by our client.”

1.2 Objectives

Our main goal is to increase the Pleasant Hill location’s client base by 100 clients.

Secondary objectives include searching for new business opportunities within the Pleasant Hill

area, finding new avenues for marketing, and improving the locations client growth and

retention strategies.


2.0 Our Clients- H&R Block

H&R Block hired us to provide them with an outsider’s perspective on how not just how

they do business but to give our optimal strategic plan on how to tackle the upcoming tax

season. In this plan we are going to give an evaluation of how they currently run their business

through the use of external, internal, and competitive analyses. We are then going to present

an outline of our optimal strategies and a tactical analysis of those strategies. Ultimately, we

are going to let our clients decide on which strategy they would like to pursue for the upcoming

tax season.

2.1 H&R Block- Corporate Overview

In order to understand the needs of the location given to us, we need to understand the

company as a whole. We know H&R Block is primarily a tax preparation service, but the

company as a whole is transitioning into a banking service on top of their tax services. As of

2006, they have opened up their banking service and in 2007 they launched their Emerald

Prepaid MasterCard program for their tax clients. For the upcoming tax season, H&R Block is

planning to two new products for both their banking and tax service. Emerald Advance is the

first product and it allows the client to have access to up to a $1,000 line of credit and that can

be repaid with your tax refund. The Second Look is the other product and it allows non-H&R

Block clients to get a 2nd opinion on their tax return for a low cost of $29. On a regional level,

H&R Block is currently attempting to increase their client base by attracting the increasing

Latino market segment and they want to be in a position to handle the unstable economy.


2.2 H&R Block- Pleasant Hill

This is the location our client has given us to work with. It is located at 1600 D Contra

Costa Blvd. in Pleasant Hill. The location is situated between the cities of Concord and Pleasant

Hill which gives it the added ability to serve two sources of clients. This office is a seasonal

office and is only open during tax season, but in the off-season, they use the location as a

training center where they give tax seminars to those who enroll. For their local marketing

strategy they currently use a referral program, and for the upcoming season they want to

emphasize attracting Latinos with their Latino Blitz Advertising Campaign.


3.0 Strategic Formulation

3.1 Our Method

Below is the flow chart that explains our methods for formulating strategies. During our

meetings we presented the chart to two of our clients, Dorothy Lirio-Casa and Vince Largo. This

chart essentially shows the thought process we use to formulate strategies. It is a superior

method because we analyze multiple aspects of H&R Block’s operations. By preparing external,

internal, and competitive matrices, we are in a better position to gauge H&R Block’s

competitive environment. Once we have done this, we will devise multiple strategies that fit

not only our client’s goals but their mission statement and core values. We would then work

with the client when we narrow down to the optimal strategies. When the optimal strategies

become set in stone, the next phase is the tactical analysis. We want our tactics to follow the

same values and goals that our client’s requested. Our method is designed to be focused and

methodical.

3.2 H&R Block Goals

H&R Block Pleasant Hill’s goals are improve the client list by at least 100 clients. On top

of that, they would like to cater to new market segments and of course be in a position of

profitability. One of the key market segments they would like to accommodate to is the Latino

demographic. During the initial stages of this project, they stated that they were going to push

a client referral program, and a marketing campaign for Latino’s called Latino Blitz. For the

upcoming tax season we would want to help them achieve those goals and we would like to

help them take up new revenue streams in the short term and set them up with clientele for

the long term as well.


4.0 Strategic Analysis- Pleasant Hill

In this section we are going to analyze the various factors that are involved with the

client’s business. You can call this a preliminary analysis because we believe that it is important

to know what drives our client’s location before we make our strategies. We will break down

our client into three separate categories, internal, external, and competitive forces. By doing

this, we can be in a better position to help our client formulate the best strategies possible.

4.1 Internal Forces

Our location is a seasonal office meaning that it is only open during tax season but in the

off season they hold tax seminars for the public. It is located in a small shopping center and

belongs to the Walnut Creek district. There is a sufficient amount of computers at the location

so there shouldn’t be a slowdown in terms of processing speed. The location employs ten

employees and two of them are bilingual. In terms of what kind of tax returns this location gets,

they are considered a title C location. This means that a majority of their tax returns are expert

returns over speed of refund returns. The difference between the two is that expert returns are

the more complicated and usually involve small businesses, and schedule A, schedule B,

Schedule C, and 1099’s are the most popular forms at that location.


4.2 External Forces

Below is a list of the external forces that are involved with H&R Block Pleasant Hill. It is

organized so that you can differentiate the categories of forces that apply to the location.

Downturn in the U.S. Economy

The U.S. economy has been experiencing a downturn in the economy. For H&R Block,

this is both a good and bad factor. While a recession means that most people have lower

discretionary incomes, it also means that there are more foreclosures. Foreclosures are a new

emerging market for H&R Block – especially the Pleasant Hill office. This office has uncommonly

high foreclosure rates in the surrounding areas. The people who are going through foreclosures

need expert help and advice more than ever. These people will be moving from a complex form

to a more simple form.

General Location- Outside of the Shopping Center

The street that the office is on is primarily commercial. The entire surrounding area is

residential. The commercial area provides lots of commuters, while the residential area

provides lots of homeowners. Some people prefer to do their taxes while at work or before

they leave work or close to their home. By having a mix of both residential and commercial, it

offers more potential clients for the office. Another attractive feature is that the office is

located close to the 680 freeway which is one of the major freeways in the bay area. This allows

commuters to do their taxes on the way to work or on the way home. The office is located

along one of the major roads that feed into the freeway on-ramp. People living in the area must


pass the office on the way to the freeway. The local community college is another place where

many potential clients meet up. By being located close to a commuter destination point, H&R

Block is strategically located to market their products to clients from all around the surrounding

area. Diablo Valley College allows the Pleasant Hill office to access clients that would otherwise

not be available to them. To sum it up, the Pleasant Hill location offers a convenient place for

people to file their taxes because it is a central location for residents, commuters, and students.

General Location- Within the Shopping Center

The office shares the shopping center with luxury retailers. The shopping center offers a

jewelry store, nail spa and fitness center. This attracts customers that typically have more

discretionary income and complex tax returns. Customers with complex tax returns tend to be

more loyal and keep coming back year after year. The anchor store in the shopping center is

called Melo’s. It is a well known pizza restaurant that has a lot of customers. Melo’s helps keep

the shopping center full of potential clients. Overall, the shopping center is in a highly visible

area along a main street within a commercial district which makes the location very easy to

find.

Local Competition is Mainly CPAs

The local competition is mainly comprised of small business CPAs. These companies are

not specialized in tax-prep. Often times there are mistakes made by these businesses. H&R

Block offers more programs and discounts. These small businesses only exist due to the

overflow from the H&R Block office.


H&R Block Corporate

Corporate advertising guarantees that the community of the Pleasant Hill office is aware

of the brand name. Corporate has provided a lot of national advertisements so that potential

clients are aware of the name. The national advertisements attract customers to the Pleasant

Hill office as opposed to the smaller competitors. Having corporate backing gives the location a

huge advantage because they have a combination of brand power and they can synchronize

their operations on a district wide scale. Our competitors won’t be able to compete with H&R

Block’s large scale advertising and coordination.

4.3 Competitive Forces

After reviewing and scouting the competition around our location we can see that there

is a solid mix of tax service providers and accounting groups. The competition is composed of

small mom and pop shops and there is one Jackson Hewitt in the area but that location does

not have the capabilities of our location. H&R Block Pleasant Hill is well equipped to be in a

competitive position against the competition. We can say this because of H&R Block’s superior

location and corporate backing. However, our competitors are still possible threats to the

location and listed below are what we believe are the greatest threats to us.

Porter & Yee CPA’s

Porter and Yee CPA’s is an accounting firm located on the same street as our location

which makes it a primary threat. Although they are located on the same street, they are in an


office building with low visibility. The real threat lies within the clientele they serve which is the

more expert returns. Our location relies on the same expert returns that Porter and Yee does

but we believe that their location and their inability to advertise will plateau their growth.

JCP Associates

Located on 2238 Morrello Ave. this competitor is located in a residential area a few

blocks away from the commercial district that our store is located in. Around the location is a

veterinary hospital and homes. JCP Associates is H&R Block’s biggest competitor in terms of

expert returns and after researching their company it’s easy to see why. JCP also has a website

and they have satellite locations in other parts of the bay area. What they lack in is in man

power because only have 4-5 active professionals and they are mainly an accounting firm. They

also specialize in small businesses and they don’t handle simple returns.

Garaventa Accounting Corp.

This location is on 3573 Clayton Rd. What sets this competitor apart from us is that they

are located within a residential area comprised mainly of Latinos. The location itself looks like a

converted house with few parking spots. What makes this location a huge threat to H&R Block

is the fact they cater to one of our target demographics. Since we do want to push H&R Block’s

Latino Blitz strategy, they will be a primary competitor. They will also have the initial advantage

over us in terms of client growth because they do have a connection with that demographic

and they have a location advantage as well because they are in a residential area. In the end,

they have an established association with Latinos and they are located closer to where they

live.


4.4 Overview of Strategic Position

Now that we have gone through the motions of analyzing the various aspects of our

location, we can gauge how productive the business is. We believe that H&R Block is a in a good

position to be aggressive towards the upcoming tax season. This is due to the fact that they are

ready to face the competition and they have numerous advantages over them. With that in

mind, our strategies will be to aggressively prospect new market segments within the area.

Profit


5.0 Our Strategic Recommendation

As stated in the previous section of the report, we plan to heavily prospect within the

neighboring city of Concord. We have a total of three strategies that reflect this concept and

they are broken down into their respective sections. We believe that by going into these

untapped market segments in Concord, H&R Block can improve their client base and they will

be in a better position to serve the community. For the long term, our Diablo Valley

Development Program and our Latino Blitz campaign will drive in clients. By working with

Diablo Valley College, DVC, we can attract not only clients but potential employees. In the

Latino Blitz campaign, we can achieve long term client retention by utilizing their cultural views

on loyalty. For the short term, our Foreclosure campaign will target the growing amount of

foreclosures within the area. All three of these strategies can stand alone and are aimed at

prospecting different demographics.

5.1 DVC Development- Strategy

H&R Block pleasant Hill location serves a wide variety of demographics in several

communities. Although the Pleasant Hill location is a Title C location, much revenue is attained

from the large quantities of speed of refund returns handled there. In regard to capitalizing

upon the speed of refund returns available for Pleasant Hill location to perform, there is one

major resource within 3 miles that may be overlooked; Diablo Valley College (DVC). DVC is a

community college that currently enrolls just under 22,000 students from over nine different

zip codes. According to Kim Schenk, the Interim Sr. Dean, approximately 10,000 annual


enrollees are between the ages of 18-25 (Millennials) with the remaining number of students

over 25 years of age (Generation X’s and Baby Boomers). This statistic presents a unique

opportunity for the pleasant Hill location to take advantage of for attracting both the

Millennials and the Generation X’s/ Baby Boomers for both client and staffing opportunities.

The DVC Development Strategy involves simple field marketing in an environment

teeming with local business opportunities. Field marketing would lead to more than awareness

for the students of H&R Block’s tax prep service and tax prep school. Field marketing will create

the impression to DVC students that, as a world-renowned company, H&R Block Pleasant Hill

makes itself available to the communities it serves. Our strategy includes placing the following

slogan on all four sides of the booth in banner form so that it can be read up to 100 feet away:

“Making H&R Block Available to the Communities It Serves” Making a presence among students

is a powerful method H&R Block can use to build rapport and convey an image of being a

company that is sensitive to the tax prep and career development needs of college students. By

the people of H&R Block being approachable, helpful, and willing to reach out to students in a

place where the students are comfortable, they are relating to those students as consumers to

be collaborated and future employees to train rather than targets of marketing efforts. The

ultimate effect of using this approach will increase how inclined students are to become

involved with H&R Block in the future for three reasons: any impeding intimidation factor was

avoided because H&R Block went to visit the campus, the students will have gained a working

knowledge of H&R Block for free without having to endeavor to research information for

themselves, the students will know several representatives at their nearest H&R Block location.


5.2 Latino Blitz Strategy

Our strategy is to increase our clientele growth and retention by tapping into the local

Latino communities in Concord. There is a large untapped market in the Concord area.

According to the 2006 U.S. Census, 22% of the people living in Concord are Latino. For the year

of 2006, it was estimated that there are 26,800 Hispanics within Concord. If the office could just

bring in a small percent of the Latinos in the community, it would mean hundreds of more

speed of returns for the office. Latinos represent the second largest race within the city. The

local Latino market in Concord offers a lot of opportunities for the Pleasant Hill office.

A company that can market their goods and services especially to the Latino market will

most likely have a lot of success. The Latino community tends to be loyal to a company if they

are comfortable with the company and there is value in the products and services the company

offers. It may be difficult for the Pleasant Hill office to know how to blend into the Latino

community, but once it has been done, there will be a steady flow of clients for decades.

Of all of the areas dense Latino communities surrounding the Pleasant Hill office, the

best option to focus marketing efforts is that of Galindo St. and Clayton Rd. in Concord. There

are Latino restaurants, lavaderias, supermercados and most importantly: the Monument

Futures day labor center.

Some of the major benefits to this strategy are:

A large number of potential clients in a close and concentrated location

Send-a-friend and referral programs work well in Latino communities


A lot of people are looking for path-to-citizenship options

Once the loyalty has been gained, clients are most likely going to return

Some of the major downsides to this strategy are:

Hard to gain trust as a large corporate organization – local CPAs might have

more loyalty from the community

Not a zone for high-income families which means simpler tax returns

Will need to adapt some of the features of the office to a more Latino-friendly

atmosphere: more Spanish speaking employees, Spanish advertisements and

brochures.

5.3 Foreclosures Marketing Campaign

The recent downswings in the economy and the growing number of foreclosures in the

country have opened the door for H&R Block in terms of capitalizing on tax complications that

foreclosing a home brings. Looking at the problem from a nationwide perspective, one out of

every 416 homes has received a foreclosure notice in the month of August alone. On a

corporate level, H&R Block has recently announced that they want to set aside 60 million on

their Option One unit, their subprime mortgage unit. This growth in foreclosures has also

opened the door for H&R Block’s tax preparation service. With the extension of the Forgiveness

Debt Relief Act to 2013 and the recently passed Emergency Economic Stabilization Act, people

who have foreclosed can receive tax breaks.

Taxpayers involved in foreclosure can have two options when it comes to receiving tax

breaks. The first option is for people who are foreclosing on their primary home where they can


sell off their home at a loss and declare the difference as debt forgiveness. The 2 nd option would

also file the home as forgiven debt but the difference is that forgiven debt is considered taxable

income and the 2nd option excludes it from being declared as income. Under the Mortgage

Relief Act, the taxpayer may fall into this category if they have substantially made

improvements to the home and they may be able to declare forgiven debt for up to 2 million.

The Pleasant Hill location is in a prime location to take advantage of the foreclosures in

the area. This is because the office is located between Pleasant Hill and Concord. You can cater

to two different cities and this increases the total number of foreclosure opportunities. As of

this month, there are 1790 foreclosed homes in Concord and there are 223 foreclosed homes in

Pleasant Hill bringing in a combined total of 2013 homes. A large majority of these homes are

bank owned and the rest are up for auction. With this in mind, we need to open up relations

with banks that deal with foreclosed homes. So a large part of this strategy will be revolving

around business to business deals with banks. This is because H&R Block will need to establish a

potential client list with the banks and what H&R Block needs to do is to convince people who

have foreclosed with that bank to work with H&R Block when it comes to taxes. We need them

to realize that they will need a helping hand through these rough economic times and they can

earn tax breaks on their recent misfortunes.


6.0 Tactical Analysis

These are the various tactics that we are going to employ that will support our individual

strategies. This is what’s going to happen in the trenches when you go forward with any of our

strategies. Below is what you can expect to be the foundation for the implementation phase.

6.1 DVC Development- Tactics

In determining the best information to provide during the seminars, we recommend

catering the seminars to two main audiences; the Millennials (or day class students) and the

Gen X’s/ Baby Boomers (or night class students). All seminars should be one and a half hours

long and should cover information about H&R Block’s programs such as Second Look, Emerald

Advance, Send a Friend, Non-profit Partnership, and Local Employer Solutions. Although all of

H&R Block’s major programs will be covered, by placing greater emphasis on particular material

respective to each age group we feel H&R Block Pleasant Hill can realize their goals of client and

staffing recruitment more effectively.

Millennials will respond better to information about how and where to file their taxes.

H&R Block representatives will be addressing an audience concentrated with young individuals

who are nearing the point where they will be filing taxes as independents for the first time. This

is why Millennials could benefit the most from knowing that H&R Block Pleasant Hill is the best

place to turn in mid April for all the assistance they need in filing their taxes and maximizing

their returns. Most of them will be speed of refund returns so it would be wise to draw

attention to the Emerald Advance program as well. Additionally, word of mouth is the strongest

marketing tool, DVC is not immense, and college students are always keeping their ears open to


quick and easy ways to make money. We recommend using the Send a Friend program as a

mainstay in the seminar. The overall goal of our Millennial seminars is to express how H&R

Block has the expertise, reliability, and superior customer service new tax filer’s can depend on

and rest assured in. By reliably serving clients who are young, were offered guidance about

where to turn, and informed about everything tax prep entails at no cost, a sense of trust can

be established early on. Feelings of security are typically subsequent emotions of trust in the

subconscious mind. With relative immediacy, we predict involuntary loyalty will ensue from this

powerful emotion. Young new clients will feel inclined to do business with H&R Block in the

future when they need them because of how helpful they were in the past when they did not

yet.

The Generation X’s and Baby Boomers (GX’s and BB’s) comprise the majority of students

in the night classes. Night class students are typically older, are supporting a family, and have

already held several careers. They may be working slowly at acquiring a degree that is

predetermined, but many may also be seeking a stable career opportunity to transition to. We

recommend holding a separate seminar for them to attend. Presumably speaking, these

students are familiar with filing taxes, have used several sources for their tax prep service, and

have held several jobs. Our strategy for night class student seminars is to place a stronger

emphasis on the value of the tax prep course that is free to college students, the Second Look

service, and the Non-profit Partnership. These individuals will be likely to respond to these

three programs with greater enthusiasm than any others because of how each applies

appropriately to the age groups. The tax prep course implies the ability to file one’s own taxes

as well as to pursue a career opportunity. Knowing how to file your own taxes can mean saving


money and that could be of great value to these students. Moreover, a career opportunity

might be exactly what a low-income, night class GX or BB student needs in this wavering

economy. The Second Look program presents an opportunity to save money by re-assessing

already prepared tax returns. GX’s and BB’s have been filing tax returns for years so this is

something they can commonly benefit from too. In regard to the Non-profit Partnership

Program, we presume a small contingency of night class students’ work for non-profit

companies. Those students should know that H&R Block contributes twenty five dollars to the

non-profit for every new client the non-profit refers.

The DVC Development Program is a great way to attract new clients and employees but

there is more to it than just seminars. Part of our strategy is to provide an incentive that was

used at H&R Block offices in Cleveland, Ohio in 2006.

“According to the American Council on Education, 850,000 students who would

have been eligible for federal financial assistance in 2000 did not complete the

necessary forms to receive the aid. The researchers cite a lack of information

about financial aid as a major impediment to increasing college enrollment

among students from low-income families. The Commission on the Future of

Higher Education called the process ‘confusing, complex, inefficient [and]

duplicative.’ The financial aid process also seems to impede student access

according to the researchers' initial findings. Last tax season, research began

with a pilot program in the Cleveland area. Through specially designed software

and trained employees, H&R Block helped 3,281 eligible low- and middle-income

http://www.acenet.edu/AM/Template.cfm?Section=About1


families in 26 Cleveland-area offices take data from their tax form and transfer it

onto the financial aid form at no cost. The tax professionals were then able to

immediately give an estimate of the family's eligibility for federal and state

financial aid.”

Our incentive is for H&R Block Pleasant Hill to assist any DVC student who completes the tax

prep course or files their taxes through H&R Block to complete the Free Application for Federal

Student Aid (FAFSA) form and provide them with an immediate estimate of the family's

eligibility for federal and state financial aid free of charge. Our incentive plan allows H&R Block

Pleasant Hill location the ability to increase the number of students receiving financial aid, and

maximizing the amount thereof, by assisting in a process that has been a challenge for many

families to overcome. That way, should they plan to, the students at Diablo Valley Community

College can alleviate some of the anxiety associated with tuition fees major universities require

and hopefully smooth the transition process from a financial standpoint.

"We are always interested in innovative collaborations that allow us to serve the

needs of our clients by helping them build a better future," said Bernie Wilson,

vice president at H&R Block. "This specific project will allow H&R Block to play a

pivotal role in…how best to reach underserved populations with the tools they

need to pursue higher education. It's a win-win for everyone involved."

DVC is a site flourishing with marketing opportunities. Every age group of students at

DVC would benefit from the knowledge they could gain via an informational seminar. Our DVC

Development program will equip H&R Block Pleasant Hill location with the means to reinforce

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name brand awareness at the local community college while simultaneously communicating

the additional programs, a la carte services, and potential job opportunities available for

students through H&R Block.

Setting up an “H&R Block Informational Seminar” at DVC, Pleasant Hill Location:

Below is the outlined information that involves the current process which Diablo Valley

College goes through to accommodate outside organizations who wish to hold seminars or

informational meetings on campus. The people who provided our group with this information

suggested that we encourage H&R Block, Pleasant Hill to communicate more closely with the

campus to make special arrangements; perhaps to negotiate frequent accommodations,

negotiate a discount in rates for consistent or frequent usage, or for H&R Block to propose their

own reimbursement program in which the students, the campus, and H&R Block Pleasant Hill

could benefit from.

1. Get Permission to hold the Seminar

a. Make arrangements with the Dean of Student Life

i. Contact Mr. William Oye

Call (925) 685- ex.2445 or Email [email protected]

2. Get Permission to set up an H&R Block booth in the quad on campus prior to the

seminar date.

a. Make arrangements with the Student Union at the Student Life Office

mailto:[email protected]


i. Contact Mrs. Betty Estrada, Miss Lee Apidocco, or Miss Evon

Call (925) 685- ex.2095

1. The best time to hit high student traffic would be mid-day,

Monday through Thursday.

2. Inform students of when the seminar will be held and have those

who would like to attend secure their seat by signing in on a

sheet. (The largest room available for conferences and seminars

holds 85 people)

3. Get Permission to use a facility on campus for the seminar

a. File your contract with Lead Office Assistant Campus Facility Use

i. Contact Mrs. Laurie Vickers

Call (925) 685- ex. 2425

1. To rent out a facility costs $31 per hour.


6.2 Latino Blitz Tactics

There are a few main tactics which will be used to achieve our strategy of increasing

clientele growth and retention through the means of tapping into the local Latino communities

in Concord. Corporate H&R Block has developed tools to help individual offices. We will apply

several programs most congenial with our strategy in our implementation. This includes

securing several businesses to adopt our local business solution program, advertising the path

to citizenship and send-a-friend programs, and instituting a direct response marketing

campaign. In a sense, we will employ these tools collectively to compound their efficacy in our

strategy.

Our tactics begin with the local employer solution. We intend to immerse ourselves in

the communities and market this program starting with many of the larger-sized

supermercados around Galindo St. and Clayton Rd. With the local employer solution program,

the employer can distribute $35-40 discounts with W10 forms to employees. We expect the

majority of employees who work in the supermercados will be Latino and will live in Concord.

Furthermore, we expect the majority of those employees will be filing speed of refund returns.

In regard to drawing attention to the various programs H&R Block Pleasant Hill offers, we

recommended practicing a procedure similar to the following in order to maximize customer

awareness and client recruitment:

1. During a clients visit to H&R Block Pleasant Hill, tax prep associates will engage

them very intimately as if they were extended family.


2. Upon completing the tax prep service, the tax prep associate will thoroughly

review the Emerald Advance Program and only casually mention the Path to

Citizenship Program, so as not to be offensive.

3. Once the Emerald Advance and Path to Citizenship programs are finished

being discussed, the tax prep associate will thoroughly review the send a

friend program and encourage their client to immediately write down at least

two people they can refer.

The send-a-friend program will be popular within the tightly woven Latino community of

Concord. The most important step in the process of appealing to the entire Latino community is

for tax prep associates to connect with each Latino client as if they were being invited into the

client’s home. One key aspect of creating a strong, intimate bond is to have bilingual Spanish

speaking associates available at H&R Block Pleasant Hill because what unifies Hispanics, for the

most part, is their language. Spanish stands as a symbol of difference for U.S. Hispanics;

wherever they're from and regardless of their history, Spanish is a key to their individual and

collective pasts. When Hispanics spend time with other Hispanics, a natural bond occurs. We

will maximize the comfort ability for Spanish speaking clients at the H&R Block Pleasant Hill

office by requiring at least one additional bi-lingual Spanish speaking tax prep associate is

available during tax season. This will be crucial for the overall success of our strategy.

Regardless of whether Latino clients are assisted by a bilingual Spanish speaker or not, H&R

Block Pleasant Hill will create a reputation of being caring and helpful. By giving clients the


impression that H&R Block will absolutely benefit them client, their family, and possibly friends,

H&R Block Pleasant Hill will achieve the bond with the Latino community that our strategy

aspires to.

The third tactic we will use to attract and retain Latino clients is by direct response marketing.

The process of acculturation influences the Latino consumer's perception of direct marketing.

While most consumers in the general market dismiss direct marketing materials as junk mail,

Latinos, particularly recent immigrants, welcome it as a means of becoming a more informed

consumer. Overall, Latino households are 3.5 times more likely to respond to a direct mail

solicitation than a non-Latino household. 72% say they always read their mail, including direct

marketing. 60% of the direct mail sent to homes is in English. 52% of the respondents speak

only Spanish in their homes. Based on these findings we plan to institute a direct response

marketing campaign to Latino families. To determine which households claim Latino heritage,

H&R Block can simply purchase local consumer information reports. After determining which

households are of Latino heritage, H&R Block Pleasant Hill will mail a small, two-page

informational booklet written in Spanish on one side and English on the other. The first page of

the booklet will provide an overview of the company, boast about H&R Block being the largest

tax preparation company in the U.S., and encourage the recipient to use H&R Block Pleasant

Hill to handle their tax preparation by including the phrase, “Usted pasa tiempo con su familia,

pasaramos tiempo en sus impuestos.” In English this translates to “You spend time with your

family; we will spend time on your taxes.” We chose this phrase because Latino people will

immediately identify with it. Latinos are a predominantly family-oriented people. When

marketing to Latinos, valuing family immediately stimulates a positive response in their


cognition. The second page will be a detachable, 25% coupon for the Latino families to use

when they arrive at the H&R Block Pleasant Hill office to have their taxes prepared.

The fourth tactic we will use involves setting-up an advertisement at the Monument

Futures day labor center at 2699 Monument Blvd Suite # G, Concord, CA 94520. We vision a

large poster advertising the Path to Citizenship program in Spanish. There is a lot of daily traffic

through the center. 63% of residents who live nearby are low-income while another 40% are

very low-income. Most of the people who go to the center speak Spanish and many are not U.S.

citizens. Beyond that, substantial portion are either struggling to attain citizenship or on the

verge of exhausting the time allotted on their green cards or visas. Often time’s, people will

wait several hours for job assignments. For all these reasons, a Spanish-written poster about

the program would be duly noted. It is important that H&R Block Pleasant Hill makes an effort

to communicate to these people that filing taxes there can be an avenue to attaining

citizenship. The struggle of attaining, or retaining, citizenship can be extremely stressful and in

many cases these individuals will arrive at one of several impasses that only augment their

anxiety levels. We include the following excerpt from Pamala Kaufman, licensed Marriage &

Family Therapist, who provides adjunct mental health services at a free clinic, primarily to

immigrants, to elaborate on this issue from a medical perspective: (Mrs. Kaufman requested

that we omit her location out of courtesy)

“The Latino immigrant population in the U.S. is seeking counseling assistance in

unprecedented numbers in an effort to manage the high stress level associated

with possible deportation. Most families fall into the mixed immigration status,

that is, their children are legal residents, having been born here, but the parents


are illegal. Facing the very real possibility of nuclear and/or extended family

separations, the uprooting of children from the educational, medical and mental

health care provisions they have grown up with, and the financial difficulties

associated with the high legal costs of filing for legal immigration status,

free medical clinics and community resource and counseling centers are seeing

record numbers of people seeking relief from the somatic and asomatic

symptoms of anxiety and depression. People who never would have considered

counseling are coming in to find support. ‘The patients I see are accustomed to

hardship. Most of them struggle every day to provide their children with the

most basic necessities, but the uncertainty of being granted legal residency, and

the very real possibility of family division, is overwhelmingly taxing emotionally.’

Many of them are 'into' their attorney for several thousand dollars and are still

awaiting a decision. Many have fallen prey to predatory attorneys

who are capitalizing upon their unfortunate situation.

Most do not live in safe areas and scarcely have enough space in which to live.

They cannot move because their attorneys have instructed them that doing so

would show instability; that could jeopardize their case. Even if they were free

to move, any 'additional' money these families may have had have now been

sunk into legal costs.


Another common problem is the inability to continue paying legal fees, and the

simultaneous necessity to do so if the family is to remain together. This double-

bind causes extreme emotional angst and Hispanics, who have been traditionally

'gun shy' of counseling and psychotropic medication, are coming to me for

emotional support and are additionally being prescribed anti-anxiety and anti-

depressant medication as never before in our clinic. An affordable immigration

alternative would certainly minimize their anxiety and depression level to some

degree. If H&R Block were to aggressively promote their Path to Citizenship

program to the Hispanic community, in my opinion, these would be life-long

clients".

Since taxes can be filed with an ID number as opposed to a social security number,

illegal residents can begin to establish a track record of paying taxes. H&R Block will make them

aware that doing so increases their chances of attaining citizenship and will alleviate much

unnecessary stress associated with the predicament. When people from the day labor center

come into the H&R Block Pleasant Hill office to file tax returns, they will be able to talk to one of

the three Spanish speaking employees. This will make them feel more comfortable for reasons

previously discussed. Perhaps once H&R Block Pleasant Hill office has been handling their

simple tax returns for several years and in some cases has helped Latinos attain citizenship, the

clients may feel inclined to use other services that H&R Block offers. To reiterate, we will

emphasize the send-a-friend program to increase awareness of the path-to-citizenship program

in the community.


6.3 Foreclosure Tactics

As stated in the strategy section, H&R Block will need to work with the various banks

and possibly real estate agencies in order to gather a client list. This is because both the banks

and agencies know which people are involved with foreclosures. A proper approach would be

to handle this like a business to business deal by offering tax services to their employees. The

2nd phase of this strategy will involve convincing the people who have foreclosed to buy into our

service. This may prove to be easier said than done because of their distressed state of mind.

Considering that our target audience is already going through the loss of their home, we

will need to take a more sensitive approach. We would have to emphasize H&R Block’s values

by offering a lending hand to those in need. One tactic will help us gain their confidence in our

service would be to have them focus on H&R Block’s Peace of Mind Guarantee. By showing

them the various tax breaks they can utilize with their foreclosed home, they will see that they

can save money by using our service and by coupling that with the Peace of Mind Guarantee; it

will be a win/win situation for both H&R Block and the client.

Again there are 2013 foreclosed homes in the Concord and Pleasant Hill area. The

amounts of potential clients within this market are huge and this presents a great need to tap

into this demographic. By opening up talks with various banks, and real estate agencies like

Washington Mutual, we can gain an insight on who needs our tax preparation service. Our

tactics should revolve around restoring the client’s confidence and gaining our trust. This is

because the client’s state of mind will be different from the average walk in customer. We

believe that by showing them the amount of money they can save through our tax service at a

guarantee will be sufficient to convincing them into buying our services.


When it comes to marketing to the potential clients we believe that a direct mail and

newspaper campaign is the most cost effective way reach out to these customers. This is

because the clientele are not in centralized locations. We would need to send brochures out

through the mail and newspapers and they should be detailed when it comes to explaining

what H&R Block can do for them. These brochures should contain an overview of the

foreclosure situation and the numerous tax breaks out there that they can take advantage of.

H&R Block needs to show them that they need to save money and taking advantage of tax

breaks is a good way to start. A section of the brochure should also heavily emphasize H&R

Block’s Peace of Mind Guarantee. This is because we want to show them that by doing your

taxes with H&R Block, it is a win/win situation. They will save money on their foreclosed home,

and they will be buying into a service that is not only convenient but cost effective. To further

the concept of saving money on your taxes during these economic times, the end of the

brochure should contain a free second look coupon because we want to show them how much

money they could of saved in their previous tax return and by combining that with the tax

breaks on their foreclosure, they can be convinced that filing their taxes with H&R Block is a

viable money saving option.


Below is a diagram of all the foreclosures in Concord and Pleasant Hill. It is organized by

the number of foreclosures per zip code.


7.0 Summary

After reading through this report you should be familiar with the three strategies we

have presented to you. Since we have covered a lot of ground within this report this section is a

small recap of what we think are the most important points about our three strategies and how

they tie into H&R Block Pleasant Hill. Our DVC program is designed to attract college students

with our tax seminars. This is done so that we can create both new clients and recruit future

employees. Our tax seminars will target the majority of the demographics that lie within the

walls of DVC. The second strategy is tailored around the Latino Blitz campaign that H&R Block

wanted to push. In Concord, which borders Pleasant Hill, lies a niche of Latino residents and

businesses. By tapping into this market through the use of attracting undocumented

immigrants with a path to citizenship program and by marketing to local businesses, we can

achieve profitability. The last strategy we focused on is foreclosures. This is a direct response to

the changing economic times, and we realized that it is important to notify people about the

various tax breaks you can receive on a foreclosed home. It is imperative to have a good

relationship with banks and realtors because they hold client information. Potential clients

should also be notified about the various money saving options on their foreclosed home. We

can do this through direct mail with a pamphlet on tax options on foreclosed homes as well as

an emphasis on H&R Block’s Peace of Mind Guarantee. You can see that all three of these

strategies will work independently and we did this to leave our client with multiple options

when they go about the upcoming tax season. So the path to profitability has been laid out and

it is up to our client to choose which path they see fit. All we can do is just open doors.


8.0 Appendix

8.1 Sources

1. www.hrblock.com

2. www.dvc.com

3. www.census.gov

4. www.irs.gov

5. www.realtytrac.com

6. http://blog.case.edu/case-news/2007/12/06/bettingergrant

7. http://www.californiarealestatecenter.com/cities/concord_real_estate.htm

8. www.foreclosurewarehouse.com/


8.2 Strategic Flow Chart


8.3 Pamala Kaufman’s Letter Concerning the Latino Community

“The Latino immigrant population in the U.S. is seeking counseling assistance in

unprecedented numbers in an effort to manage the high stress level associated with possible

deportation. Most families fall into the mixed immigration status, that is, their children are

legal residents, having been born here, but the parents are illegal. Facing the very real

possibility of nuclear and/or extended family separations, the uprooting of children from the

educational, medical and mental health care provisions they have grown up with, and the

financial difficulties associated with the high legal costs of filing for legal immigration status,

free medical clinics and community resource and counseling centers are seeing record numbers

of people seeking relief from the somatic and asomatic symptoms of anxiety and

depression. People who never would have considered counseling are coming in to find

support. ‘The patients I see are accustomed to hardship. Most of them struggle every day to

provide their children with the most basic necessities, but the uncertainty of being granted

legal residency, and the very real possibility of family division, is overwhelmingly taxing

emotionally.’

Many of them are 'into' their attorney for several thousand dollars and are still awaiting

a decision. Many have fallen prey to predatory attorneys who are capitalizing upon

their unfortunate situation.

Most do not live in safe areas and scarcely have enough space in which to live. They

cannot move because their attorneys have instructed them that doing so would show

instability; that could jeopardize their case. Even if they were free to move, any 'additional'

money these families may have had have now been sunk into legal costs.


Another common problem is the inability to continue paying legal fees, and the

simultaneous necessity to do so if the family is to remain together. This double-bind causes

extreme emotional angst and Hispanics, who have been traditionally 'gun shy' of counseling

and psychotropic medication, are coming to me for emotional support and are additionally

being prescribed anti-anxiety and anti-depressant medication as never before in our clinic. An

affordable immigration alternative would certainly minimize their anxiety and depression level

to some degree. If H&R Block were to aggressively promote their Path to Citizenship program

to the Hispanic community, in my opinion, these would be life-long clients".

8.4 Foreclosures in Concord/Pleasant Hill

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