Presented By: Shubhangi Khare Shilipi Bhandari(2 012294) Saurabh Seth(2012279) Sunny Sehgal T anvi Parmar Vineet Nagar(201236 9) Vishal Moonka(2012373) 1
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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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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
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Media Advertising: TV
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Print Ads/Magazine Ads
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Print Ads/Magazine Ads
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Web Marketing
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Bill boards
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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 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