INTERNATIONAL MANAGEMENT INSTITUTE
Marketing of Services
Case Analysis: Kinko’s
Submitted to Prof. S. Garimella
Submitted By Amit Aggarwal Biswadeep Sahoo Debayan Mukherjee Prakhar Singh Somil Joshi Varun S. Pilla
Kinko’s value proposition in the 1970’s
Value Proposition illustrates why a target consumer should choose to buy or consume a product or a service over other alternatives, and which makes a customer confident that this product or service will add more value and benefits to him or better solve his problem than other similar offerings.
Orfalea started Kinko's in 1970 near UCSB by selling school supplies and photocopying services to college students when he noticed that the only place for getting photocopying service was at school library and realized that photocopiers were not easily accessible to many people. He observed that there was an increasing demand on these services and decided that this business is going to exist for long time.
Orfalea decided to offer his customers, who were college students, products and services they need, he decided to provide his customers with a consistent high quality services in a timely and reliable helpful manner, at a reasonable price. Moreover orfalea made this service available and handy for his customers, which was of a high value to them.
Reasons for the Kinko’s success
There were many reasons for the brand’s success and the most important were: 1. The location of Kinko’s stores near schools which was easily reached to get the needed service or product was of the most important reasons for the brand success. 2. Kinko’s started to expand its services and to provide a much needed services which gave another incentive for customers (students) and increased their loyalty to Kinko’s. 3. Lack of competition. 4. Taking initiative to meet customer needs and expectations. 5. Developing a long term relationship. Kinko’s was a “Cool” company had Fans not only customers, they were in a business of solving customer problems that customers couldn’t solve for themselves and relieving their anxiety. Workers at Kinko’s were university graduates and experience of making business so
they Kinko’s were considered as a business resource as the worker were talking with the customers and students about their experiences, students get the benefit of sharing experience and communication which creates a fun relationship building and developing a counter-culture experience. 6. Encouraging employees to take care of customers and to build emotional bonds with customers and managing customers emotions.
Value Proposition evolution
Kinko’s value proposition evolved over time by expanding their services and expansion of business to serve new customer segments. Kinko’s continued opening new stores and increased its retail footprint and broadened its focus to serving small office/ home office market. Kinko’s enhanced their value proposition by introduction of self-service computers and photocopiers working areas, in addition to the introduction of 24/7 service. Kinko’s built a reputation for providing its customers access to the latest office technologies, introducing public teleconferencing rooms, Fed-Ex drop boxes, color copiers and printers, high-speed internet and email access. Later in 2001, they incorporated online and in-store services and introduced “Print to Kinko’s” and “DocStore” which enabled customers to store, edit, and print their documents at Kinko’s.
Target market in the 70’s and 2003
Kinko’s target market in the 70’s was college students.
Kinko’s target market in 2003 grew into three distinct segments: 1. Consumer Segment: consumer customers used Kinko’s for personal use, including anything from printing posters for lost pets to generating banners for birthday parties to photocopying tax returns. 2. Local Business Market: walk-in clients Kinko’s have no formal business relationship they used Kinko’s as a second office to satisfy their copying, printing...
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