FEDEX: MARKETING STRATEGY

FedEx: Marketing Strategy



Table of contents

FEDEX: MARKETING STRATEGY1

FedEx: Marketing Strategy1

Summary3

FedEx: Marketing Strategy4

Introduction4

Methodology4

Findings5

Current Situation5

PEST Analysis5

Comparative Analysis7

Competitive Edge8

Strategies9

Segmentation, targeting and positioning9

Marketing Objectives and Goals11

Marketing Strategies and programs (the Four P's)12

Conclusion14

Recommendations15

References17

Appendices19

Summary

FedEx is one of the companies that brought innovation in the shipment industry. FedEx Corporation is originally known as the FDX Corporation. It is Logistics Company based in United States with headquarters in Memphis. One of the company's competitive areas is the adaptation to technology and the use of sophisticated tracking softwares. However, despite all the innovation it still lacks the market lead. The main competitors are DHL, UPS and TNT, out of them UPS takes the market share with 35%. FedEx marketing stagy comprises of the premium pricing, the purpose of which is to create a perception of a high service quality company among the customers. The distribution network is efficient which enables the services to the customer at all the nearby locations across the world. However, FedEx needs to refine the segment on the basis of product line to make sure that the appropriate segment is targeted d at the right time. The services are numerous ranging from overnight packages to more intricate and bulky deliveries. FedEx lack in having an effective marketing strategy like DHL and UPS have. It is important that FedEx creates a brand recall through marketing programs. The examples of DHL and UPS are worth mentioning in this regard, whose budget comprises of a significant portion of the communication expenses. The results are obvious that is, higher brand recall. FedEx need to change to become a one stop source for the three basic services namely logistics management, delivery and supply chain management, the ability of the company to use technology and create its own resources made it difficult for competitors to match the company's service standards. The fact is that FedEx has not focused on advertising its brand as much as the competitors.

FedEx: Marketing Strategy

Introduction

FedEx is operating in the industry of shipping goods from one place to another that is an industry, which has a very few industries in it. This industry of shipping could be assorted as being existent in the maturity stage. The small number of competitors in this industry, e.g. DHL, UPS, etc, have their band of truehearted customers and operate at very low cost, therefore, the entry barriers in this industry are very high. FedEx started its business as a company that used to facilitate movement of some packages from one place to another, and now today it is one of the biggest transportation companies of the world (Basch, 2003, 99). It was necessary for FedEx to first analyze and determine the critical success factors of the industry, and then meet those critical success factors to convert a traditional business into a business that is known worldwide for its high-class service and performance. In this report, we will analyze the strategies taken by FedEx to achieve success in the industry of fast ...