20700457_DongSoo Joseph Rhee_Entry 14

Good-bye, FedEx Kinko's. Hello, FedEx Office.

History







Do you know FedEx ?, what about Kinko's? I am sure that you've heard about at least one of those two brands. FedEx is a well-known company for shipping services, they don't mind the international shipping too. Kinko is a well-known company for offering wide range office, and Print Services. It is hard to imagine this two companies into one place. Indeed, it happened. In 2004, FedEx acquired Printing chains, Kinko's, for $2.4 billion. They started to open a chain named FedEx Kinko's. When FedEx acquired printing chain Kinko's the air-cargo shipper's grand plan was to integrate the 1,200 stores into its business-services offerings. The goal was a digitally linked network of one-stop stores for customers to make, print, pack, and ship anything. A new logo and name was designed by Landor Associates, added two identities into one name, and made a logo adding various colors.

However after four years, FedEx is ditching Kinko's brand for further business plan.

New Start

"Kinko's is a wonderful brand, and it's nostalgic," admits Gayle Christensen, director of global brand management for FedEx. However, it is limmiting at the same time. Because Kinko's name is too much associated with printings, so there was a difficulty to move on, and offer more services. FedEx wants to expand their business to digital printing services, direct mail, and more creative jobs like signs and banners. By ditching the Kinko's brand, FedEx will be able to do this. After shed the brand Kinko's, they are approaching customers with a new name, "Fedex Office."

Of course, it is not easy to change the name into "FedEx Office". Memphis-based FedEx said it would record a charge of $891 million in its fiscal fourth quarter, in order to shed the Kinko's brand.

However, they don't believe that the name Kinko's will disappear. "Maybe we could use it in a minor way somewhere in the store," Christiansen muses, noting that the company still owns the name. "Perhaps we could label the copiers Kinko Copiers."

Opinion

I believe that they made the right choice. According to the report, FedEx did not separate Kinko's unit financially, but kinko's was having a financial difficulties. Company announced a fall in profit for the second straight quarter due to rising fuel costs and the economic slowdown, which had reduced demand. Also, time has changed, and there was a definite need for change and innovation. World is getting smaller and smaller, and people are getting busy and busy. People need to get their work done in one place. Kinko's name was unappropreate to expand the business further more. Even though it will cost a significant amount of loss to change the name and the style of the stores, it will benefit the company in a long term.


Annotation: A journal from Business Week. "FedEx Ditches Kinko's" written in June 9, 2008, 4:06PM EST. Written by Ernest Beck. Url:http://www.businessweek.com/print/innovate/content/jun2008/id2008069_075908.htm

Entry_14 20500687

Indie Filmmakers Hit Their Target
Taking cues from musicians’ Internet business models, filmmakers are transforming the movie biz by handling marketing, distribution, and DVD sales

Summary
The reason why I chose this article is that it implies several important marketing strategies at one place. Indie filmmakers hit their target audience without any paid advertising or reviews. How can it happen? Consumers are usually attracted by fancy advertising delivered on TV or at least Internet reviews scored high and positive opinions. The documentary “What’s Your Point, Honey?” sold out this 160-seat theater in Manhattan is successful without any paid advertising. The audience of this movie are part of the transformation of the film industry. They are targeted by the filmmakers who produce the documentaries with certain intention of targeting certain group of people such as young women interested in politics.

Opting out of the festival circuit
In reality, few people get rich making documantaries. According to Peter Broderick, a Santa Monica consultant to independent filmmakers, filmmakers who take control of their marketing and distribution can expand their audience and increase their chances of turning a profit. They should be as creative about their distribution as they are about their production.

Closer to the CORE audience
What independent filmmakers do as part of their marketing strategies is targeting the core audience that they are looking for based on the topic or interest about their movie. They build an e-mail list of people who care about the topic. Then, they send an e-mail with the information of their movie to invite the core audience.

Generating more buzz and profits
Since independent filmmakers do not go through many distribution channels, it generates more profits in terms of saving money for the distributors. Besides, it can create the effect of buzz marketing easily due to the core audience compared to the one using distributors.

Opinion
Reading the article, I got a reminder of the P&G case that we discussed during the class. Like the startup company Dr. John's SpinBrush which they don't have any paid advertising but still very successful, indie filmmakers also use this reverse marketing strategy. Just like Dr. John's SpinBrush captured the new segment of customers where the word of mouth effect has created among the users, indie filmmakers target the core audience of their movies who are interested in their topic. I think this is very convenient while very strategic to generate more profits saving the money for the movie distributors. Advertising is a good way of marketing to capture the customer's attention and to deliver information easily. However, targeting certain group of people like many indie filmmakers do thesedays is as important as capturing the whole audience. In addition, this strategy might be a part of customization which companies should understand people's interests fully before giving out random advertisement.

Annotation
John Tozzi, Indie Filmmakers Hit Their Target, BusinessWeek Journal, June 5, 2008
http://www.businessweek.com/smallbiz/content/jun2008/sb2008065_226261.htm

entry14_20400495

The Power of positioning
How to distinguish yourself from the competition to be sure you have a preferred place in your target customer’s mind.

Summary
Positioning is the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segments. It is making a unique perception to the customers mind. If you don’t make a differentiated perception to the customers, the customers don’t know whether to buy from you, whether you have the knowhow it seeks, or whether you’ll follow through and meet its needs. Knowing who yourself is important, however in marketing, letting the customers know who you are is more essential. Here are the five steps to improving your company’s positioning.

1. Assess where you are right now
It is important to assess your own company but that isn’t enough. You should ask customer, competitors and journalist for the three adjectives they would use to describe your company, products and overall image.

2. Determine how you want to be perceived
Because when you made up your decisions and begin to take action, it will be too late and cost much to change the direction. You need to determine the specific position you want to take , and what kind product marketing messages and image you want to convey and reinforce.

3. Select your target customers.
In this step you need think about the following questions. ‘Will you benefit from making your image more exclusive and inaccessible of more of a commodity and more accessible? How does your target market define value? How do those people choose among vendors?’

4. Factor in current trends.
There is a well-known expression in this field. “If you want to be a market leader, find a parade and jump in front of it.” If you want to jump in front of a current trend parade, you need to know the trend first. These days numerous companies are jumping in front of the environmental movement with “green: products and service

5. Formulate your four levels
Your business objective drives your business strategy which drives your market strategy which drives your positioning strategy.

Opinion
In class, we learned about the STP strategy which stands for, Segmentation, Targeting and Positioning. Though this article out a lot of stress on Positioning, you need to go through two steps before you actually take the positioning step. Though the three steps are inseparable, we can explain separately. In segmentation, you need to check the strategy and goal of the company first and think about the possible segment. In targeting, you should evaluate the attractiveness of each segment and based on this evaluation, you should choose a sement. And at last, like in this article, considering the five steps that the article is providing, you can position your company.

Annotation :Christine Comaford-Lynch, ‘The power of positioning’, businessweek, June 2, 2008URL http://www.businessweek.com/smallbiz/content/jun2008/sb2008062_723641.htm

# 14 Entry_ 20500297

Facebook's Big Facelift

"The social networking site's coming redesign will be

marked by a cleaner, more organizaed look

to appeal to its vastly bigger, more diverse user base"

Fancy vs. Simplicity*

If there's Cyworld in Korea, there's Facebook for all over the world. Cyworld is quite fancy, providing lots of options and choices with multiple colors. Sometimes I don't even know what to do with new functions they daily upate. On the other hand, Facebook has been focusing on simplicity, meaning that it has been praised for being clean and tidy. However, now Facebook is trying to redesign its web site and I wondered why.

Facebook's problem*

There will be 70 million worldside users in the next few weeks. As the number of users is increasing, designers of Facebook decided to represent a major simplification. - Facebook's trial to differentiate itself from other web sites. Editor in chief of Mashable. com said that "people are starting to feel that Facebook is quickly becoming like Myspace." Myspace has allowed its 100 million users to create wildly different looking pages, which makes its web site look more complicated and messy. Because of this problem, Facebook is trying to find new ways to arrange lots of information users upload. They will give users more options without radically altering the look and feel of the site so that users can feel fresh and well-organized.

Personal opinions*

Because updating is quite different from 'redegning', Facebook's change is a hugh thing to consider. In my opinion, what Facebook needs to focus on what users really want. They need to listen to users and follow what they need, not make user follow what they have already created. What people want from Facebook is probably fun, the way they can express themselves and having a "connection" with other people. Sometimes providing customers' basic needs can catch their minds toward your products or service. Also, Facebook should remember that redesigning would never satisfy each of 70 million users. Some would like it while others wouldn't. Facebook would have to take critics as precious advice from its users and seek what they really want from Facebook. One of my team members mentioned about lify cycle in her journal. Without a doubt, Facebook has been doing great and it is obvious that they are in mature stage and it's the right time for them to think about differentiation and innovation. - which will make them able to 'maintain' its position.

Annotation: Matt Vella, Facebook's Big Facelift, BusinessWeek Journal, May 14 2008

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20700443: Entry-14

The Starbucks Effect

Starbucks Corporation is an international coffee and coffeehouse chain primarily based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores in 44 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks and items such as mugs and coffee beans.

Summary:

Daniel McGinn, the author of the article, basically tells how certain retail chains like Home Depot and Starbucks can effect on the value of the rental property. It seems that both chains represent leading indicators for local real estate purchases, though they both have been in struggle recently. Starbucks due to difficulties with operating conditions in the US, and Home Depot - ongoing housing crisis.
When George Vaughan, an advertising salesman in Portland, heard about plans of Home Depot to build new stores in nearby, he bought several houses in that area. Some times later when that place had Home Depot and Starbucks George could charge prices higher for his houses.

Opinion:

Starbucks is the association of something fascinating among young generation who's following all these brand stuff. Some people are even proud of just holding the pack with Starbucks label.
Is it all about brand awareness? When a customer is loyal only to that product and do not see other options, can wait patiently even for several weeks to get a brand new product form that line.
Nowadays people are ready to pay prices higher for the places where certain famous brand chains are going to build their new stores, and everything is only because these LOUD names: Starbucks or Home Depot...


Daniel McGinn, The Starbucks Effect, newsweek, June 3, 2008
http://www.newsweek.com/id/139886/page/1

Entry 14_20700347

A Chain That Pigs Would Die For

Have you ever heard about the company “Chipotle"? This restaurant is Mexican brand and grows rapidly. To tell the truth, when people think about the fast-food, they think that most fast-foods are junk foods and have a low quality. However, this brand has a great quality.
SUMMARY
According to this article, Steve Ells, CEO of the fast-food chain Chipotle Mexican Grill, buy pork which is used for their products from Kremer’s farm. That pork is not just a pork, but organic pork, so it is good for health. In addition, Ells decided that he use healthful and organic ingredients for Chipotle’s foods, so Chipotle uses few USDA-certified organic products and instead follows its own, sometimes less stringent, protocol. Chipotle's revenues have grown tenfold to reach $1.1 billion. Moreover, its stock price has more than doubled since January 2006, when the company went public, to $100 a share. It now operates more then 700 restaurants around the country and expects to open an additional 130 to 140 before the year-end.
OPINION
Like most people, I thought that fast-food restaurant uses junk ingredients which has low quality. However, this brand makes a new and innovative fast-food. Many people like fast-food because of convenience and portability, so t usually hey don’t mind food’s quality. However, society becomes more aware of healthy eating. Therefore, Chipotle can appeal to many consumers. Actually, in my opinion, Mcdonald’s is the biggest competitor to Chipotle. Although Chipotle’s stock price has increased, and this brand is well-known than before, Chipotle can not ignore the competitor, Mcdonald’s. Mcdonald’s already has high market share and brand name, but it has some weaknesses. One of the weaknesses of the Mcdonald’s is that it does not use fresh ingredients. To take advantage of this point, Chipotle can give a good image to many customers. Compared to many other fast-food brands, Chipotle is in Growth stage of Product life cycle. In this stage, company should reach new customers by studying customers’ preferences and producing different product variations. I think that Chipotle need to advertise actively and throw into relief its foods. Specially, Chipotle sells burritos, so I think that this food could be a star product of this brand.

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Annotation :
Anna Kuchment, ‘A Chain That Pigs Would Die For’, Newsweek, May12, 2008
URL à http://www.newsweek.com/id/135376

Entry13_20400495

iPhone 2.0 Takes on the World

Apple could launch its new iPhone in 64 more countries by yearend, deepening the electronics giant's reach in international markets
As Apple announced to unveil the next version of its iPhone, the fans are expecting a lot of progress from the earlier version. But the main focus to this event is, actually how well iPhone will do in the international market. The new version of the iPhone will do more than perhaps any other device in history to fuel Apple’s ability to reach international markets.

Bigger Seller than BlackBerry?
Until now Apple has only launched the iPhone in six countries, but they recently agreed to release to more than 70 countries by the end of the year with wireless carriers. Until Apple decided to go for the international market its sales were way below compared to the sales of Blackberry. However if Apply is able to accomplish the goals it has announced, it will able to lead the so-called smartphone market.

Ready market Worldwide
Though the little recognition outside of U.S. is a big obstacle that Apple has to overcome, there are some optimistic points. Unlocked iPhones have been spotted in nearly every country in the world. Although the definite number is hard to come by, Apple estimates that gray market dealers in China may have sold as many as half a million iPhones there. This could make Apple to permeate the international market more easily.

More Flexibility with Carriers
There are more reason for Apple being so confident in infiltrating the world market. The company has shown itself willing to break with established practice of signing up only one wireless carrier per country, as it did in the U.S, Britain, France and Germany.

China Toehold
To Apple, China is the ‘Big Kahuna’ according to Needhan & Co analyst Charles Wolf. This is because China Mobile which is the largest mobile company in China has more than 400 million subscriber which is also the world’s largest. But the things between this giant mobile company and Apple didn’t go well. Talk between these two companies collapsed in January over Apple’s share of service revenue. Once Apple gets a toehold in China, there will be no stopping the iPhone engine. Therefore the experts are advising for Apple to first satisfy the demand of China Mobile to get into the market.

Opinion
Once the company establishes a star product and the star product is successful enough to have a cash flow, the company starts to expand. In this case the iPhone in U.S. did pretty well and made Apple to turn its attention to the international world. But when a company is expands to the international market, it always faces communication gap. Back to the case, though iPhone is highly recognize inside U.S. and neighboring countries, there are only small perceptions about iPhone in other countries. To overcome this gap I think Apple needs to promote using there former product brand such as i-pod and Mac computer. Compared to iphone, the two products is widely known because they already done a lot of promotion.

AnnotationArik Hesseldahl and Jennifer L. Schenker, iPhone 2.0 takes on the world, BusinessWeek, June 6, 2008http://www.businessweek.com/technology/content/jun2008/tc2008065_290813.htm