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Copy of FedEx Marketing Plan

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by

Lacey Zhai

on 9 March 2013

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Transcript of Copy of FedEx Marketing Plan

FedEx
Gilberto Atayde, Marcus Cruz, Tyler James, Javier Ramos, & Antonio Rogers
Background
Founded in 1971 by Fredrick W. Smith
Began operations April 17th, 1973
Shipped 186 packages to 25 US cities using 14 small aircrafts flown out of Memphis International Airport.
Today FedEx has more than 275,000 employees that handle over 7.5 million shipments per day internationally.
International shipping
Internal Environment
Connecting the Global Economy
with a wide range of transportation
Information
supply chain services
Target market
Behavior
Delivery type needed
Express, standard, local, international
Demographics
Individual or business
Usage Rate
Segmentation
Personal Delivery or Business Delivery
Light to heavy usage

Fed Ex targeting?
Concentrate on both
Both types use the service extensively
Position
Industry Leaders
Customer Service
International Deliveries
Staff Support
Product & Pricing
Product
Wide variety of services
Local delivery
International
Always expanding
Acquisition of Kinko’s
FedEx continuously strives to grow by achieving more
Pricing
FedEx offers competitive pricing within the industry.
The FedEx Experience
User friendly
Many forms of distribution
44,000 drop boxes, 700 world service centers, 1,800 FedEx office locations, & 6,500 authorized FedEx shipping centers
Convenient personal couriers who drop off and pick up packages for customers.
Internal Environment: Other Areas
Air Support Acquisitions
Flying Tiger Line airfreight service
Strenghtened European and Asian markets
ANC Holdings, Tianji Datian, Parakash Air Freight, Flying Cargo
United Kingdom and Hungary based
China and India based
Ground Support Acquisitions
Caliber System & RPS
Ground support 2nd to UPS
Other ground related acquisitions

Other strategic acquisitions
Tower Group International
International logistics and trade information

Customer Analysis
Current Customers
Businesses and Individuals
Delivery with speed, cost, frequency, and size in an appropriate manner
Potential Customers
Businesses or individuals who need delivery services.
External Environment
Substitutions
Personal Distribution/Delivery
Local Delivery Service
Text
Email
Logistics Services
FedEx
UPS
DHL
USPS
Buyers
People, businesses that seek logistics services.
Potential Entrants
WalMart
BNSF Railroad
Manufactures
Boeing
Major Auto Companies
Suppliers
Transportation Industry
Porter’s Model
External Environment: Other Factors
Declining world economy
Rising fuel prices
More vulnerable due to express deliveries dependence and the rising cost of jet fuel
SWOT Analysis
Problem Statement
Due to the troublesome economy, legal problems, and rising fixed costs, FedEx must counteract these threats with company growth by acquiring more resources or expansion.
Alternatives & Solutions Evaluation
Recommendation
Partnership with an oil and gas company
Improve customer growth
Improve customer loyalty
Reduce fixed costs
Improve employee relations
Marketing Objectives
Primary Objective
Obtain a partnership with an oil and gas company within three years

Measured in three one year phases:
1) Identify potential customers
2) Best candidate selection
3) Partner selection
Marketing Strategies
Segmentation
Type of organization needed
Behavioral
Target Market
Oil and gas company
Interested in obtaining partnership
Positioning
Among the leaders in the world in delivery services
Leader in international delivery
#1 rated in customer service
#1 rated company to work for
We are the best at what we do


Product
FedEx
The company IS the product
Benefits of having FedEx as a partner




Pricing
Pricing set between FedEx and the oil and gas company
5-10% discount rate for a period of five years
After five years
Reopen negotiation


Marketing Communications & Promotions
Trade Show
FedEx booth with knowledgeable spokespeople stationary and floating representatives
Personal Invitations
Call companies to gauge interest
Find potential partners
Send representatives
Both domestic and international
Distribution
Dedicated gas stations dedicated to FedEx operations
FedEx distribution centers would have the partner’s gas stations
FedEx sections in airports
Discounts applicable for partner’s gas stations nationwide
Truck drivers will use these stations
FedEx agents regular fuel level maintenance
FedEx help partner open new station locations
Why partner with FedEx?
Why partner with FedEx?
Why partner with FedEx?
QUESTIONS
Full transcript