Introduction
FedEx a courier company head quartered in Memphis, Tennessee United States. The company was founded in 1970’s for overnight shipping purpose. The company is primarily associated with document shipping and express packs. Basically it is the American association but is expanding otherwise as well.
Target Market
Target market of FedEx includes;
• Embassies and other governmental institutions
• Small business owners and professionals that are in need
of professional connections at far off places.
• It would not be an exaggeration anyone who needs to send something anywhere in the world is FedEx market.
Industry Trends
FedEx hold almost 50% shares in United States markets. Basically its establishment is dominated by its competitor UPS as its freight business is uncertain at long term. The progress develops upon world economy and U.S economy trends as these factors determine the package volume. The retirement costs are likely to increase in year 2011 thus burdening the company and lagging it financially. 11.1 % of the operating cost is being consumed by fleet fuel (Bartiromo, 2005).
Marketing Goals
• Major marketing goal of FedEx is to maintain its competitive presence in the minds of the consumers.
• To maintain the timely courier delivery process and to stay in the market for a longer run.
• To rise the weekly targets and orders of the whole company at least by 10% in next 6 months.
• Maintaining the customer base and increasing the new customer ration by 5% in upcoming months.
Marketing Strategies
• To be the fastest service provider company in the courier delivery companies.
• To maintain the logistics and operations of the company smooth and workable to earn big profits.
• To use technological improvements in enhancing the system for clients to track their orders at any time and place.
• Making the services smooth and comfortable for clients that they pay higher prices happily for such fine courier services.
• To differentiate the standards of quality from their competitor companies to raise the level of services for the comfort of its clients.
• By providing superior services, a strong customer base should be maintained for the company which keeps on increasing day by day.
Yearly Marketing Budget
• FedEx Company has already invested a huge budget of U.S $26.093 billion in year 2010.
• Upcoming budget for 2011 would be almost U.S $ 28 billion.
Marketing Mix of Starbucks
Product
A number of products are offered including
• FedEx Express is the second largest civil fleet around the world providing services across U.S. mainland, Puerto Rico, the Dominican Republic, and other Caribbean islands.
• FedEx ground provides services around America and Canada.
• Home delivery and smart posts are also offered.
• FedEx trade networks provide custom and insurance.
• A toll free help line is provided to the customers at FedEx TechConnect.
• Other products include FedEx Supply Chain Services, FedEx Corporate Services, FedEx Office and Print Centers, and FedEx Ship Centers.
• Customer care centers are always alert for criticism.
Price
• FedEx offers its discount program on FedEx ground specifically.
• Pick up services are provided with $6 as its additional cost.
• FedEx Ground will provide pickup service to business locations, upon request, for an additional charge of $6 per week.
Placement
Mainly located in United States and is catering the services with in America and Canada but also approaches to the destinations worldwide through its air fleet.
Promotion
• FedEx campaigns runs in the print media throughout the year.
• Spends heavy amounts on Commercial ads, that’s why high quality ads are formulated and remembered for years like John Moschitta ad.
• The company ahs been a chief and sometime sole sponsor of motor sports, football and a number of sports being played at a junior level.
• One major reason of its success is political lobbying at large scale, billions of dollars being spent until now with $4.9 million spent in first three months of 2010.
Competitors
DHL, United Parcel services and TNT are its worst competitors in the market. The competition is basically on price and profits. Other small and private carriers are also competing with FedEx (Foust, 2003).
Strengths
• Major strength of FedEx is its fastest home delivery service among all courier companies.
• Customer base of FedEx is its one major strength but proper attention should be paid to maintain it properly.
• Another huge privilege which FedEx possess is its Smart-Post option which allows it to utilize e-commerce to carry out the courier delivery services.
• It has gained the position of 2nd largest LTL carrier in US and thus has gained much popularity among its clients.
• It’s well established online courier tracking services are gaining more and more popularity in recent times thus allowing the clients to attract towards the company more easily.
• Innovation is one big advantage which FedEx carries and thus it keeps on innovating new solutions for client’s problems.
Weaknesses
• One big weakness of FedEx is its inability in maintaining its competitive position in the marketing especially in comparison to its big competitor named UPS.
• Not completely but high costs are also making its success a bit away because competitors offer such packages at low rates.
• Although it is efficient but sometimes quality of services does not satisfy clients which in case make the customer base decrease at a slower pace but it is still dangerous for the company.
Monthly Tactics
Although several marketing tactics were adopted by the company to enhance the marketing capabilities but now company’s financial position is strong enough and thus it has very few monthly marketing tactics which are being followed by the whole company. And those marketing tactics include a new innovation in product and packages in each month. Secondly by introducing the company and its services to a new market segment every month. And lastly targeting the users of competitors by striking the competitive edge of FedEx is another major tactic which company follows (Drinkard, 2005).
References
• Drinkard, Jim (2005). "Donors get good seats, great access this week". USA Today.
• Foust, Dean. (2003). "Fredrick Smith: No Overnight Success".
• Bartiromo, Maria. (2005). "The Inspiration behind Federal Express: A Central Hub".
• Ron Da Parma (2008). "IRS says FedEx may owe $319 million". Pittsburgh Tribune-Review.
• "FedEx in Memphis." FedEx. Retrieved on February 8, 2011.