Bad Management Hurts the Good Marketing

Apparently these 2 complementary departmentsFrom a marketing point-of-view, Mailboxes Etc.
should support one another to help thewould have been the perfect second brand for
development of the company, but a sure thingUPS. But obviously, management won the battle in
that history taught us is that many timesthe boardroom on this one.
Management tripped on the Marketing'sAnother example of bad decisions when it comes
department tail and caused many problems for ato management, was the similar buy out of
lot of small companies and corporations as well.Kinko's chain stores by FedEX. FedEx bought
One good example of such a goof would be theKinko's mainly as a reaction to UPS buying
US shipping company UPS. Back in 2003, the UPSMailboxes Etc. FedEx feared losing drop locations
Store hopes to introduce customers to itsand losing face against the competition. Because
expanded services which include a myriad ofotherwise buying Kinko's makes little sense from
things from document & brochure printing toan operational standpoint for FedEx. The printing
office supplies, a $30 million campaign. All thisbusiness is quite different from the air cargo
happened as a result of the Mail Boxes Etx. buybusiness.
off. At first it seemed like a good move for theAnd changing the name from Kinko's to FedEx
UPS since Mail Boxes Etc. was a real hit thoseOffice makes absolutely no sense at all. FedEx
days which had only one focus: mailing. heystands for overnight packages what in the heck
offered post boxes, shipping services and supplies.does that have to do with printing? Most people
Of course, the most important part of thatwould never think to go to FedEx for help for
business was UPS packages and probably thesigns, brochures, business cards, stationery or
reason the UPS company felt the need to buyprinting needs. People think hey we need to go to
the Mailboxes chain. But while it makes sense forKinko's, oh yeah you know that place that used
UPS to own Mailboxes Etc., it doesn't make senseto be Kinko's but they have the FedEx name on
to change the name to the UPS Store. Thenow.
problem, of course, is that consumers don't thinkToday, both UPS and FedEx stores are a mess
about going to a UPS Store to do anythingwith names that don't make sense. and driven by
except to ship something, but while it makesego and the belief that having your brand name in
sense for UPS to own Mailboxes Etc., it doesn'tmore places is better. Having your brand name on
make sense to change the name to the UPSthe same thing in more places is good. Having
Store. More importantly there was no need toyour brand name on different things in more
change the name. Mailboxes Etc. was perceived asplaces is not good.
authentic, original and the pioneer in the category.