Presented By: Shubhangi Khare Shilipi Bhandari(2012294) Saurabh Seth(2012279) Sunny Sehgal Tanvi Parmar Vineet Nagar(2012369) Vishal

Moonka(2012373)
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About the industry

In the next five years, the industry is expected to strengthen as demand 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.

About FedEx

FedEx Corporation is an American global courier delivery services company headquartered 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 industrys global leader, providing rapid, reliable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 90 percent of the worlds 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 worlds largest express transportation company, providing fast and reliable services for more than 3.6 million shipments each business day.

Corporate Culture

Belief that success hinges on the first P of the People-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 Fortunes list of Best Companies to Work for, a list dominated by smaller companies.

Competitor Analysis
Major competitors include: DHL UPS

STRENGHTS High brand awareness Improved information & wireless technology Green Marketing Established Distribution System Customer-supplier relationshipscorecard 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 single solution 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
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Fax machines, electronic communication preferred for data

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Market Segmentation(on basis of its various products)

FedEx

has divided itself into different business units to better serve customer 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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GEOGRAPHIC PRICING

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FedEx reacts to global economic trade slowdown

FedEx announced that it will increase Express rates by an average of 5.9% effective in January, with details on Ground rate increases forthcoming next month.

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Distribution(Place)

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v/s

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International Direct dist.

A new international supply chain service from FedEx Corp. called FedEx International Direct Distribution, seeks to replace multiple distribution channels with a single, fast-moving and flexible end-toend 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 meet their transit time needs.

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Brand-Building & Promotional Strategies

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

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Media Advertising: TV

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Print Ads/Magazine Ads

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Web Marketing

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Bill-boards

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Event Marketing: Sponsorship Events

FedEx

/ NFL Open House Series

In 7 priority markets, Team FedEx took over NFL stadiums on non-game days and transformed them into FedEx business building and promotional environments exclusively for 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 programaudit 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 contact live team members. Usb readers design and print center

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Fedex also uses social networking sites to interact wit 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 effectiveness CRM 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
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