Business to Business Marketing of Fedex

7/22/2019 Business to Business Marketing of Fedex

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Presented By:

Shubhangi KhareShilipi Bhandari(2012294)

Saurabh Seth(2012279)

Sunny Sehgal

Tanvi Parmar

Vineet Nagar(2012369)

Vishal Moonka(2012373)1



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About the industry

In the next five years, the industry is expected to strengthen asdemand for high-end, time-sensitive goods will rise on the back of

increased consumer spending.

Global Courier and Delivery Services industry profit margins are

recovering from a low level in 2008, when fuel prices reached record

highs and the global economic downturn constrained demand

Companies must achieve economies of scale to become global

players on similar levels to United Parcel Service, FedEx, DHL and

TNT Express N.V

The industry has a moderate level of market share concentration;

concentration has increased over the past five years through

mergers and acquisitions.

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About FedEx

FedEx Corporation is an American global courier delivery services companyheadquartered in Memphis, Tennessee.

The name "FedEx" is a syllabic abbreviation of the name of the company's

original air division, Federal Express, which was used from 1973 until 2000.

FedEx Express invented express distribution and is the industry’s global

leader, providing rapid, reliable, time-definite delivery to more than 220countries and territories, connecting markets that comprise more than 90

percent of the world’s gross domestic product within one to three

business days.

Unmatched air route authorities and transportation infrastructure,

combined with leading-edge information technologies, make FedEx

Express the world’s largest express transportation company, providing fastand reliable services for more than 3.6 million shipments each business

day.

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Corporate Culture

Belief that success hinges on the first ―P‖ of thePeople-Service-Profit philosophy; if employees are

taken care of, they will reciprocate with the

impeccable service the customer demands.

Good reputation as an employer; made Fortune’slist of Best Companies to Work for, a list dominated

by smaller companies.

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Competitor Analysis

Major competitors include:

DHL

UPS

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STRENGHTS

• High brand awareness

• Improved information & wireless

technology

• Green Marketing

• Established Distribution System• Customer-supplier relationship-

scorecard system

• People-Service-Profit philosophy

• Portfolio of offerings

WEAKNESS

• High implementation, maintenance and

failure cost

• Bargaining power of supplier

• Complexity of offering confuse

customers• Similar price structure as that of

competitors

• Less advertisement

• Seasonality of demand

OPPORTUNITIES

• Growing economies

• Improvements in aircrafts

• Growing e-commerce

• Business customer seek for singlesolution that can meet all needs

THREATS• Unpredictable energy prices

• The rising costs in transportation security and

insurance

• Weather Uncertainty

• Failure in IT systems can damage image• Variety of choice & easy price comparison

• Concern over hacking and protection of

customer information

• Many competitors are government owned,

controlled carriers

• Fax machines, electroniccommunication preferred for data 9



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Market Segmentation(on basis of its various

products) •FedEx has divided itself into different business units to better servecustomer needs.

•Goal: To operate independently of each other yet to compete collectively.• Point of differentiation

FedEx Trade Networks

FedEx Custom Critical

FedEx Office

FedEx Freight

FedEx Express

FedEx Ground

FedEx SupplyChain

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http://ftn.fedex.com/us/

http://customcritical.fedex.com/

http://www.fedex.com/us/office

http://www.fedex.com/us/freight/

http://www.fedex.com/us/express/

http://www.fedex.com/us/ground/

http://www.fedex.com/us/supply-chain/



http://www.fedex.com/us/ground/

http://www.fedex.com/us/express/

http://www.fedex.com/us/freight/

http://www.fedex.com/us/office

http://customcritical.fedex.com/

http://ftn.fedex.com/us/



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GEOGRAPHIC PRICING

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FedEx reacts to global economic trade

slowdown

FedEx announced that it will increaseExpress rates by an average of 5.9%

effective in January, with details on

Ground rate increases forthcomingnext month.

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v s

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International Direct dist.

A new international supply chain service from FedEx Corp. calledFedEx International Direct Distribution, seeks to replace multiple

distribution channels with a single, fast-moving and flexible end-to-

end solution to increase speed to market and reduces costs for a

variety of shippers.

FedEx said the Direct Distribution process consolidates multiple

packages or freight into one shipment, so shippers reduce costs,

bypass distribution centres and streamline clearance through

customs before distributing individual shipments directly to their final

destination.

It offers customers greater flexibility and control by allowing them to

choose modes of transportation – air, surface or ocean – to meettheir transit time needs.

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Multi-channel campaigns (TV Ads, Search and display ads,

social media, online video, direct mail and e-mails)

Sponsorship marketing

Interactive-marketing Event Marketing

Media Advertising

Internet Marketing

Brand-Building & PromotionalStrategies

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M di Ad ti i TV



Media Advertising: TV

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Print Ads/Magazine Ads



Print Ads/Magazine Ads

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Web Marketing

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Bill boards



Bill-boards

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Event Marketing: Sponsorship Events•FedEx / NFL Open House Series

•In 7 priority markets, Team FedEx took over NFL stadiumson non-game days and transformed them into FedExbusiness building and promotional environments exclusivelyfor FedEx customers

•NASCAR Race

•Tennis/Rugby Tournments

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Webinars : Educational

Seminars

FedEx Freight ‘Accelerate Your

Business Success’ Webinar

FedEx Freight Automate Your Shipping

Webinar

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Brand building thorough

community involvement

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FedEx Cares Week

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Key Account Management

It has transformed the traditional sales approach with key account management by Changing sales environment

Decline of the middle

Price/Quality pressures

Customer expectations

It has used KAM to manage complex sales situations by

Managing the long selling cycle, complex, high relationship sale-case study

Technology and communication in account management

Measuring customer-lifetime value

Partnering with key accounts

Increasing key account program effectiveness

Account selection and classification

Resource allocation by type of account

Auditing the key account program—audit checklist

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Understanding Customer needs

"Purple Promise―

zero-tolerance policy

Creates easy and convenient ways to

track their packages.

Email the store directly and can contactlive team members.

Usb readers

―design and print center ―

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Fedex also uses social networking sites to interact wi

their customers

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The Flawed Solution

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FEDEX: RELATIONSHIP

MARKETING Achieving permanent good transactions

with customers

Offering customized services

Marketing effectivenessCRM Strategy :

3D Globe

Advertising in many different languages

to more than twenty countries Hiring local managers that understand

the culture of local areas

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What not to do

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THANK YOU

Documents

Business to Business Marketing of Fedex