The document summarizes FedEx's 7P marketing mix strategies. It discusses their product and service offerings, premium pricing and flexible rates, global network of over 5,000 hubs and facilities, large-scale promotional activities using various channels, focus on hiring and retaining talented employees, highly organized distribution processes, positioning as a global brand focusing on business customers, and main competitors of UPS and DHL.
The document summarizes FedEx's 7P marketing mix strategies. It discusses their product and service offerings, premium pricing and flexible rates, global network of over 5,000 hubs and facilities, large-scale promotional activities using various channels, focus on hiring and retaining talented employees, highly organized distribution processes, positioning as a global brand focusing on business customers, and main competitors of UPS and DHL.
The document summarizes FedEx's 7P marketing mix strategies. It discusses their product and service offerings, premium pricing and flexible rates, global network of over 5,000 hubs and facilities, large-scale promotional activities using various channels, focus on hiring and retaining talented employees, highly organized distribution processes, positioning as a global brand focusing on business customers, and main competitors of UPS and DHL.
Product/Service • Home delivery facilities are provided to the customers for their convenience. • The company also has a trade network that includes providing insurance and custom services. • Its products also include FedEx Supply Chain Services, FedEx office centers, FedEx print centers, FedEx Corporate services and FedEx Ship Centers. • Various centers for customer care have been opened with Toll Free number to help the customers. • Post delivery services are also offered to the interested customers. • FedEx also provides third party logistics. Price • Premium pricing policy for the quality services rendered • Rates mostly unchanged despite increasing freight charges. • Flexible pricing policy in counties such as in China • Discounts and various schemes at different periods to attract the customers • Pick-up Facilities for the products at a reasonable additional cost • The prices vary according to the type of service provided and they have various price packages as per the convenience of the customers. • Dimensional weight pricing to all ground packages • Charging customers on the basis of the space their products occupy in the trucks • Variable rate plans like its flat rate shipping. In this case, the customers are not required to weigh or measure shipments under 50 lbs Place • Provides services in more than 220 countries and territories • Offers all round the clock services to its consumers around the globe. • More than 5000 hubs and facilities and its more than 180,000 motor vehicles pick and drop off more than 14 million shipments per day • Vehicles (like the aircrafts) that are at its disposal plays an important role in providing timely and efficient services. • World’s largest all-cargo air fleet, which includes Boeing 777s, 767s, 757s, and MD-11s and Airbus A-300s and A-310s. • U.S. based customers can pick up their packages at any of 11,000 convenient, secure locations, including more than 8,000 at well-known retailers such as Walgreens. • Moreover, FEDEX is placing 500 new FedEx Office locations within Walmart stores nationwide. Promotion • Large variety of channels to reach its audience and to grow its market and customer base. • TV, Own website and the social media • Reward programs are also a very important promotional strategy followed by FEDEX • Several type of reward programs for its customers (merchandise, brand-name gift cards like GAP, Lowe’s, and Amazon.com to digital downloads including songs and eMagazines.) • Used sports as a medium for promotion of its service numerous times People • Started as a simple team of 389 people. Now, this team has grown to more than 425,000 • Constantly looking for talented people with qualities like enthusiasm, honesty, creativity and respect • Motivational programs for employees like attractive salaries, regular pay increases, paid holidays, health care programs, pension plans, and discounted travel programs. • Attractive rewards like Five star award, purple promise quality award, Bravo Zulu award and humanitarian award • A special program in 2018 called ‘Purple Runway’ (industry leading pilot development program) Process • Organized distribution channel. 1.First phase, the parcel or the product is acquired from the customers. 2. Second phase, provide a proper channel for the delivery of that product 3.Third Phase, the product is conveyed to the party efficiently and within the prearranged period. • A large distribution network provides many convenient options for shipping packages • More than 130 automated facilities • Large self driving tugs that move large weights around inside the hubs the brand is also testing other automated technologies for higher efficiency. • A global brand with its headquarters in Memphis, Tennessee • Touches 220 countries and territories • Global network is managed through 670 aircraft, 5,000 hubs and facilities, and 180,000 motorized vehicles • Website - an important touch point that the brand uses to serve its customers. • Served by several thousand motor vehicles all of which carry the Purple and orange logo on them (easily recognizable among the crowd of brands) Positioning by FedEx • Target Market: • Main target audience - companies that ships numerous packages on weekly basis • Major profit and fiercest compitition • Individual consumers only require awareness of FedEx and many a times don’t get to choose how their packages gets delivered; • Handing over individual customers to resellers and other delivery services. Main Competitors • DHL and UPS - major competitors Positioning Map • FedEx and UPS, USPS and DHL are all placed in the consideration set for our positioning map for top courier companies. • Companies are positioned on the basis of two factors, ‘Affordability’ and ‘Speed’. FedEx pricing Strategy
• Dimensional weight pricing for all FedEx Ground packages.
• The change in the pricing strategy resulted in a 30-50% increase in package delivery cost for bulky products ordered online such as toiler paper rolls, towels, etc. • The new pricing strategy allowed FedEx to charge for a reasonable value for its most important asset i.e., the space in its vehicles; whilst also increasing efficiency in covering operation cost. • Improved company’s revenue and margin. • For middle class consumers, FedEx offers ‘Lower prices without comprises.” • Unique privileges for account holders like lower shipping rates, free shipping supplies, and pick up scheduling. • Huge social media presence (2.5 million on Facebook and 98 K on Instagram the brand has 274 K followers on Twitter and around 72 K on YouTube) • An excellent brand image already works favorably for FEDEX by helping it attract and retain customers.