1.Describe Kinko’s value proposition in the 1970’s.
Value Proposition illustrates why a target consumer should choose to buy orconsume a product or a service over other alternatives, and which makes a customerconfident that this product or service will add more value and benefits to him orbetter solve his problem than other similar offerings.Orfalea started Kinko's in 1970 near UCSB by selling school supplies andphotocopying services to college students when he noticed that the only place forgetting photocopying service was at school library and realized that photocopierswere not easily accessible to many people. He observed that there was anincreasing demand on these services and decided that this business is going toexist for long time.Orfalea decided to offer his customers, who were college students, products andservices they need, he decided to provide his customers with a consistent highquality services in a timely and reliable helpful manner, at a reasonable price.Moreover orfalea made this service available and handy for his customers, whichwas of a high value to them.
2.What were the reasons for the brand’s success?
There were many reasons for the brand’s success and the most important were:•The location of Kinko’s stores near schools which was easily reached to getthe needed service or product was of the most important reasons for the brandsuccess.•Kinko’s started to expand its services and to provide a much needed serviceswhich gave another incentive for customers (students) and increased their loyaltyto Kinko’s.•Lack of competition.•Taking initiative to meet customer needs and expectations.•Developing a long term relationship. Kinko’s was a “Cool” company had Fansnot only customers, they were in a business of solving customer problems thatcustomers couldn’t solve for themselves and relieving their anxiety. Workers atKinko’s were university graduates and experience of making business so theyKinko’s were considered as a business resource as the worker were talking with thecustomers and students about their experiences, students get the benefit ofsharing experience and communication which creates a fun relationship buildingand developing a counter-culture experience.•Encouraging employees to take care of customers and to build emotional bondswith customers and managing customers emotions.
3.How has the value proposition evolved over time?
Kinko’s value proposition evolved over time by expanding their services andexpansion of business to serve new customer segments. Kinko’s continued openingnew stores and increased its retail footprint and broadened its focus to servingsmall office/ home office market. Kinko’s enhanced their value proposition by introduction of self-service computers and photocopiers working areas, in additionto the introduction of 24/7 service. Kinko’s built a reputation for providing itscustomers access to the latest office technologies, introducing publicteleconferencing rooms, Fed-Ex drop boxes, color copiers and printers, high-speedinternet and email access. Later in 2001, they incorporated online and in-storeservices and introduced “Print to Kinko’s” and “DocStore” which enabled customersto store, edit, and print their documents at Kinko’s.