SALES FORCE

INTEGRATION
AT FEDEX 

SECTION I - GROUP 8
ANUJ KUMAR                  PGP36410
AYUSH KUMAR VERMA   PGP36412
ROHAN                         ABM17052
MUSKAAN VIRDI           PHD21014
 SWOT ANALYSIS OF FEDEX

STRENGTH WEAKNESS OPPORTUNITY THREAT

• Overnight Industry • Two sales force with • Market growth for • Commoditization of
Leader overlapping customers overnight and express overnight business
• Best on-time express • Two sales force • Cost saving from lead to reduced
performance structures and ARISE revenue
• High brand recognition compensation systems. • Business building and • UPS is stonger in
• Consultative selling • Two shipping methods. cost saving when ground service.
combined with • Weaker ground ARISE goes online • Customer confusion
industry leading position • Cost saving from sales due to two sales force.
technology. • Duplication of force integration • Business impacted by
operation by two sales bus cycle.
forces.
COMPARE THE EXPRESS COMPENSATION WITH THE GROUND COMPENSATION PLAN.
Express compensation
• Revenue targets with bonus at
96% of goal
• Primary focus on existing
accounts
• 70% salary + 30% incentives
• Goals set by corporate with
adjustment
• President's club award to top 5%
performers
 
Ground
• Revenue targets + Activity targets
with bonus at achieving 50% of
the goal
• 60% of incentive based on SP F/C
• 82% is salary
• Bonus financial incentive only
• No adjustment
WHAT ARE THE KEY DIFFERENCES?  WHY DO YOU THINK THESE
DIFFERENCES EXISTED?

• FedEx ground had smaller customer base as compared to express.

• FedEx ground employees had to build relationships through engagement activities with customer unlike express
employees.
• Ground team had lesser threshold of achieving 50% of sales target to qualify for icentives because it was much
harder for them to get a new customer in comparison with express team.
• Until name of RPS was changed to FedEx ground, the employee struggled a lot to get even a single new customer
account because of lack of brand image in the market, a luxury which express employees enjoyed.
• RPS also didn't invest heavily in advertising which further made it hard for the sales team to fetch new accounts.
• The ground sales force had to meet activity targets like at least four dinner and one entertainment event per month
with existing or potential clients. These targets were an integral part of their incentive structure as well.
• The major differences in salary structure existed because of the difference in amount of effort which was required to
get a new customer by the ground team and also the nature of relationship with the customers.
WHAT ARE THE MAIN OBJECTIVES THAT BEYL AND HIS TEAM SHOULD CONSIDER
IN SETTING THE NEW COMPENSATION PLAN FOR THE INTEGRATED SALES
FORCE?

 Develop one point of contact

 One Shipping System (Versus two today)
 Redistribute territory wherever necessary
 Focus more on consultative selling
 Build ground services business
 Compensation system for ground not delivering
 Train on ARISE, Cross Train
 Maintain Salary + Incentive Model
DEVISE A COMPENSATION PLAN THAT MEETS
THESE OBJECTIVES 

 Since it’s essential that growth across all three business lines takes place simultaneously and at a rate fast
enough to meet the competition, the plan must encourage higher performance across the three.
 So a compensation plan such as follows is likely to be ideal:

Semi-annual or quarterly performance targets for each division Express

Threshold limit across all 3 for higher bonus payments (eg: 90%)
Ground

Increasing payments with increasing performance level

Total bonus reflecting performance in all 3 set targets Int’l