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June 13, 2008

[20700059 - 14th Entry]Ditching the Brand

Beck, Earnest "Fedex Ditches Kinko's" Bussinessweek.com. 12 June 2008.
<http://www.businessweek.com/innovate/content/jun2008/id2008069_075908.htm>.





Fedex acquired Kinko's in 2004 in a goal to provide services of printing, copying, and shipping. It has 1200 stores of business services offerings. The design of the logo was made by Landor Associates to represent the wired technology of the store. However, Fedex changed its store brand name from Fedex Kinko's to Fedex Office for several reasons. The reasons were as follows:



1) People generally have thought that Kinko's is a copier shop. However, services provided by the Fedex was not just a copier. Digital printing services, for example, is one of the services that Fedex provides.

2) The name Fedex Kinko's does not deliver a clear message of what the customers can do in this store. the Fedex Office provides more specific activities customers can do and acquire from.

3) In a research on consumer basis, it is widely known from its consumers of what exactly Fedex is offering services.

4) The Kinko's is named after the original founder Paul Orfalea for his curly hair, and the image of the brand does not go with the technologically advanced printing service of Fedex.


For these reasons above, the authority of Fedex recalled the Landors to change the brand design and its logo. This process finally created the new brand name, Fedex Office. According to Brian Collins, the chief creative officer of Collins, the word "office" is the place where work gets done, a laboratory to invent things, a place to go create. Fedex believes that the brand Fedex Office can have an impact on consumers to think in a way Collins thought.




Opinion

The target segments of Fedex are travelling professionals, branch medium for medium and large businesses, and small businesses. These parties or people share common needs which is why Fedex is offering services to meet their needs. And the services that Fedex is offering is a great idea because not all businesses or professionals can be equipped with thousand dollars worth of machines to produce results. There's gotta be a store like Fedex to meet the demands of those segments.

When I first saw the store named Fedex Kinko's, I've thought it was just an office related to Fedex. I've never thought that it was a store providing services to the people. Through the glass window, I could see is just bunch of copier machines and people working for something busily. Then when I've found out later that I can go there surf the internet, print something sophisticated images which needs good printers and photocopy good quality prints, I used to go there whenever I needed to print something with the expensive printer. The service was excellent in terms of prices of the service and the attentiveness of the store manager to the customers, however, I've wondered why it was named Kinko's. The name Kinko's really seemed awkward to my eyes because it sounded as another name for curly hair: Kinky hair. Now because I've learned about co-branding in our case study, I was able to detect that Fedex Kinko's a co-branded store.

Co-branding was done for the purpose of creating a synergy to the product by combining two brands. However, the name Fedex Kinko's doesn't seem to mean anything because it seems confusing. Fedex is known for deliverying packages, and Kinko's known for bookbinding and copying different materials. These two "seemed unrelated" business combined together made confusion to the people who do not really know the which service they are offering. I think they have done excellent jobs in creating another name for the store, Fedex Office. The word office suggests to the people of unlimited activities that can be done. Office even can create something out of nothing.

Through this example, I've learned that co-branding isn't always good and doesn't always make synergy to the product. Sometimes it will just make confusion to everyone. If the brands are unrelated to each other, then one of them has to be reversed so as to represent what the store or the company is doing.

June 12, 2008

14th entry 20400347 emotional marketing



Brands: The Power of Emotion
The savviest marketers understand that successful products appeal to the heart, not the mind by
Steve McKee November 8, 2007, 6:29PM EST
What's Driving the Purchase Decision?
Making purchases based on emotion is quite normal. From the persona of an athlete associated with shoes to the warm feelings tied to a greeting card brand to the security of having all-wheel-drive, emotions always play a role in the decisions buyers make.
McDonald's was one of the first advertisers to really understand this. McDonald's was busy cunning emotional pictures of families enjoying moments of togetherness around a fast-food lunch when their competitors were boasting about the size of their burgers or the thickness of their shakes.
Sure, features, benefits, and cost/value equations enter into it, but never do they do all the heavy lifting. We're emotional beings, and we respond to emotional appeals. That's why politicians are much more effective telling stories than quoting statistics.
All brands and all products can leverage the power of personality to strengthen their appeal. A feature can always be matched. A claim can always be mimicked. But an emotional sweet spot is something your brand can occupy all by itself.

Opinion
This article started with the writer’s experience in Nike Shoes store with his son. There were two pair of shoes his son wanted to purchase, one had basketball player who had bad reputation and his name on it, but the looking was nice. And the other one was less fancy looking than first one, however, real nice player’s name was on these shoes. He did not want to buy first one because he did not want to relate his son with the bad player.
He also mentioned about Mc Donald’s advertising. I also agree with that the brand always gives positive emotion such as warm, happy and smiling. I also see many brands’ advertisings use this emotional fact. One example is 박카스. 박카스 is the best in the same industry. Have you ever seen 박카스’s ad? It never mentioned its function or excellent quality. It showed young people’s friendship, passion, love and dream. So when people think about 박카스, first come up is positive image, something energetic.
KT&G changed their brand image with the new name and different advertising. Before they changed the name, it was 담배인삼공사. Tobacco had negative image, so they eliminated the tobacco thing completely from their brand ad and name. Even though, still they sell tobaccos, KT&G’s image becomes blue, young and something innovative.



Today, many companies try to build emotional attachment between brand and costomers.
I think manager should start to create emotional attachment with customers. Think about your own purchase behavior. Enjoy a bottle of Evian or a cup of Starbucks as you muse, and consider what you're doing even then.

[20700596 Entry 14] 70s are back as musicals target older audiences

70s are back as musicals target older audiences


Korea Herald, By Koh Young-aah, 2008.06.12






The major who have enjoyed a musical is 20s and 30s. Older people have not made up a significant part of the audience. But nowadays these older people has led the industry to focus on staging works which cater to younger women and men, which further alienates those in their 40s and 50s.
Many musical targeted towards middle-aged people released, and designed to bring back good memories from the audience's younger days, while giving them artistic pleasure, as well. The productions are filled with popular songs from the 70s and 80s, and feature story lines and settings are which are familiar to that generation.
These musical made up with old generation star, Shim Su-bong and Songgolmae, as well as some well-known songs from the early 2000s, parents and their children can both enjoy this show.
Musical "Zoomderella" - a combination of the words "ajumma," a Korean word for middle-aged females, and "Cinderella" - is targeted for an audience of women. The show is based on the bestselling novel by author and TV writer Ko Hye-jung, and is about the reunion of five high school friends for the first time since their graduation 20 years ago. The get-together happens after word gets out that one of them has cancer. All of the women seem successful and happy on the outside. But when they start talking, it becomes apparent that none of them are actually satisfied with their lives. They cry about the old dreams that never came true; they console each other.

Like in this article, marketing for 40s and 50s is a new field. This new generation audience can be called a niche market. The meantime, these generations become estranged from a performance like musical, concert, or play, but they may also need an entertainment, which is fit their emotion or culture. Planers who make this musical for adult generation satisfy their desire. So, they can make money and acknowledge to their consumer. In addition, in side of they give their audience a hope, these performances is so nationalistic positive.
40s and 50s as well as sliver generation can be also a niche market. Korea head to be an old age nation. So the sliver is increasing. Marketers should attend them. They can be a customer of the industry of medical treatment, insurance, silver town, entertainments for them.
In our society, many various classes exist, but there is no marketing strategy for each one. Marketing for major class isn't attractive any more and they are no help for company. Therefore marketer should seek a marketing strategy for each of them.

June 6, 2008

20700395-entry13 : How to build brand friendship

To create a truly powerful brand, you need to establish a sense of belonging, friendship, and dependability between product and customers
Business Week/ by Steve Mckee/ May 9, 2008, 3:15PM EST

Summary
Human needs interaction with one another. In business, the interaction between customers and brands is essentially important. There are no people which belonged to some club. We are all members of different clubs like family, university, church and club of the real meaning. Auto brands generate a great sense of belonging well. Enthusiasts about his loyalty to the brand are powerful at showing their longing to belong to this brand. But it is very difficult for company to make them really want to belong to this brand. For many people, their morning appointment with Starbucks is like visiting with a trusted old friend just like familiar and comfortable. Just burrito could have a big role of making an airport friendly even if the frequency for boarding flight is very low. Only one impressive memory is also able to be attracted to consumers. Brands that prove themselves dependable over time win our loyalty. The old saying, "No one ever got fired for buying IBM?" The truth of that statement was rooted in IBM's reputation for dependability. IBM may have been boring, it may have been expensive, but it was dependable, and that was important.

Opinion
The head of company has to consider many factors influencing their business directly. The most important point is that they can't force friendship, belonging and dependability to customers. As marketers, there is no way to compel people to feel comfortable with their brand. Friendships that aren't stable aren't really friendships. All relationships have their ups and downs, but one of the definitions of a true friend is someone you can count on. And the time factor is different for different brands. As with friendship, the more interactions brand has with its customers the more the relationship can develop. Think about the strongest brands out there like Southwest Airlines, Apple, eBay, even Caterpillar. They understand the principles of belonging, friendship, and dependability, and they treat their customers accordingly. They know what they stand for and refrain from chasing business that would compromise their hard-won loyalty. We can, too, and the more we do so the greater the likelihood our company may one day be mentioned in the same breath as they are.
resource

20700395 Haegeun Yeo