Topics: Business, Retailing, Marketing Pages: 3 (831 words) Published: October 30, 2006
Customer Segments
From the market research, customers can be divided into three distinct segments: consumer, local business market, and commercial solutions. Consumer customers visit Kinko's for personal use. Local business customers use Kinko's as a second office. The market research reveal that both of these customer segments value convenient, locations, customer service, quality, speed and price. However, for local business customers, the cultivation of relationships with small businesses is important. Unlike consumer and local business segments whom Kinko's do not have a special serve or formal sales relationship, the commercial solutions segment is served by a direct sales force. This segment can be divided by customers' needs into two lines of businesses: facilities management and non-facilities management. Non-FM sub-segment customers value speed, price and customer service which is almost the same as local business and consumer customers while FM sub-segment customers have requirements not only for quality and speed but also for cost control, competitive pricing, and experience or expertise. (Table 1 show details for each segment). From analyzing customers' needs, low price is the most common need in all segments. Therefore, Kinko's faces a main problem about customers' price perception. Changing overall customers' perception may require a large investment for advertising and marketing, but Kinko's has an opportunity to change perception in a specific group of customers such as commercial business by offering a contract with low price. Market Analysis

In term of competitor, it depends on customer segments. For consumer, local market, and non-FM commercial solution customers have a similar competitors such as Mom and Pop and superstores. For FM commercial solution has different competitors which are Xerox, IKON, and in-house production. Kinko's has the largest market share for consumer and smallest for FM commercial solution. However, the industry-wide...
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