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
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