a project on service standard of fedex corporation

Grand Project Report- 2015-16

On

“Service Standard of FedEx Corporation”

PGDM-Marketing (2014-2016)

Mentored By: Submitted By:

Dr. Ashwini Vora Agrawal Bhavin (02)

Madhavi Nitin (28)

Som-Lalit Institute of Management Studies

DECLARATION

We undersigned Bhavin Agrawal and Madhavi Nitin hereby declare that the project work presented in this report is our own work and has been carried out under supervision of Dr. Ashwini Vora of Somlalit Institute of Management Studies.

This work has been never submitted to any other university as examination purpose.

Date: 21st December 2015

Place: Ahmedabad

Signature

ACKNOWLEDGEMENT

This project has been very fruitful as practical study and we would like to thank SOMLALAIT INSTITUTE OF MANAGEMENT STUDIES to include this project report in syllabus.

Any accomplishment includes the efforts of many people and this project also is completed with the contribution of few people. This is to the gratitude to FedEx Courier Service for providing us information, sparing their time to us and for co-operation. I would also like to thank Dr. Ashwini Vora for the guidance in making project and clearing our doubts as and when we required.

IndexSr. No. Title Page No.

1. Introduction to Industry 12. Introduction to Service Sector 2

2.1 Overview 22.2 Market Size 22.3 Government Initiatives 3

3. Introduction Of FedEx 43.1 Overview 43.2 History 43.3 Company Structure and Facts 53.4 Mission 5

4. Comparison of Service Standard of FedEx and Forecasting the Future

6

4.1 Industry Life Cycle 64.2 Porter’s Five Forces 74.3 Global Competition 84.4 National Context 9

5. Data Analysis and Interpretation 116 Finding 357 Recommendation 368 Conclusion 379 Limitation of study & Expected

outcomes of Study38

10 Bibliography 3910 Appendix 40

SYNOPSIS

Introduction

FedEx offers a wide range of transportation services and they accommodate to the widest range of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with few established competitors. The shipping services industry can be classified as being in the mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL and USPS, in addition to FedEx, each have their own brand loyal customers and low cost operations that create significant barriers to entry into this industry.

Nobody understands international shipping better than FedEx. Shipping to the U.S. or halfway around the world doesn’t have to be complicated. FedEx offers you an array of services and tools to make it easy. Whether you are shipping documents, boxes or freight, count on FedEx for fast, reliable on-time delivery to over 220 destinations worldwide.

Hard and Soft Services

Hard Services offered by the FedEx is Packaging, Package Shipment, Freight Shipment and Return Shipment in the U.S and at the International Level.

Soft Services Offered by the FedEx is Timely Delivery, Money Back Guarantee, Security of package, Pickups & Delivery Facility, etc.

It’s what we do

A more connected world means more opportunities. That’s why customers count on our diverse portfolio of transportation, e-commerce, and business solutions. Our air, ground and sea networks cover more than 220 countries and territories, linking more than 99 percent of the world’s GDP.

It’s why we matter

In a connected world, the power of technology, transportation, information, and ideas compounds and multiplies. Businesses big and small create jobs that lift their communities. For people who are hungry for the education, goods, services and jobs that can improve their lives, a connected world is a better world.

It’s who we are

We are consistently ranked among the world’s most admired brands and employers. More than 300,000 FedEx team members are absolutely, positively focused on safety, the highest ethical and professional standards, and the needs of our customers and communities.

Our objective of Research:

1. To understand the management of huge network2. How meet the needs of the customer it serves3. How to meet those needs at a acceptable level of operating cost4. How to select specific sites for facility location5. Determine how to execute the network model for the distribution of the FedEx

Literature Review

According to James P Hoffa General President of theInternational Brotherhood of Teamsters Federal Express is a majorproponent of an alarming trend in today's market classifying workers asindependent contractors which allows them to maintain absolute control overoperations shift costs and risks onto workers and reap the benefits oftheir labor This is a critical issue at Federal Express whichdescribes itself in its Employee Handbook as a company that offers a widerange of important benefits to all workers regardless.

http://www.research-assistance.com/essays/Literature-Review--Federal-Express-and-Unions.html

Federal Express (FedEx) are deploying new software to get that closer with consumers that quicker. FedEx Corp. is launching a multi-million dollar Customer Resource Manager (CRM) initiative, deploying software from Clarify Inc., in an effort to cut costs and use existing customer data to cross-sell and up sell services. FedEx hopes that this new system will allow them to tailor its data in ways that are not currently possible in the industry, ultimately contributing to the firm’s competitive advantage. The use of these brokerage systems will further help FedEx to realize market “Sweet Spots” and calculate how profitable those segments will be to the company. This relationship between FedEx and Clarify can be expected to give FedEx a leading edge in their industry. This competitive advantage will not last long, as other third party logistic suppliers in the highly competitive package-delivery market are likely to keep pace in technological advancement.

It is clear that many companies today are outsourcing supply chain and logistical tasks to third party customs brokers. Customs Brokers have an obligation to be up to date with technological innovation and to implement it within their respective organizations thus ensuring that they are meeting the expectations of the services that they are providing. These services must not only meet industry expectations, but must exceed them to ensure competitive advantage. Companies must rely on brokers to develop systems that increase efficiency, decrease lead-time, lower costs, and increase the precision of the overall production process. Any brokerage firm that fails to acknowledge consumer needs and adapt to the external environment will fail to provide what their competitors surely will, as demonstrated in FedEx’s case.

http://www.oocities.org/dbateconsulting/literaturereview.htm




Research Methodology

Research Topic

To understand the service standard of FedEx Corporation

Research Objectives

The following are the specific objectives of the study.

1. To study the service standard of FedEx Corporation .

2. To study the consumer satisfaction of FedEx Corporation Service

3. To study the perceived value offered by FedEx Corporation to the consumer

4. To study the factors influencing the consumer to use the FedEx Corporation service

Research Design

The Research Study will be Descriptive in nature. The Research will be based on collecting data in the form of questionnaire that are framed as per objective of the project.

Sample Unit

Present Customers of FedEx in Ahmedabad Region

Sample Size

50 Respondents

Sources of Data

Primary Data: The Primary data are those data which are collected fresh and for the first time

and thus happen to be original in character. The primary data that was collected through filling

questionnaires in Ahmedabad Region

Secondary Data: The secondary data are those which have already been collected by someone

else and which have been passed through the statistical process. Secondary data was collected

through websites.

CHAPTER 1: INTRODUCTION OF INDUSTRY

Courier services are a more specialized delivery service that businesses and individuals turn to when they need a package or a document to reach its destination quickly. While regular mail services can also deliver packages rapidly, they cannot guarantee same day delivery or overnight delivery as the case may be. The term “courier service” can refer to every form of delivery or transport service ranging from a small, local operation to an international network servicing millions daily using a fleet of trucks, planes, trains and ships.

Courier services have been around for a very long time. Ancient cultures had runners or horsemen to carry messages from one place to another without the hassle of going through the more commonly used slow channels. Another reason that couriers became such an important fixture in the delivery sector is that they were able to provide greater security to a parcel or letter. Technically, courier services are not supposed to be able to lose a letter given their intricate tracking systems. Plus, you can rest assured that the intended recipient will get the letter as they will have to sign for it at the other end.

There are different courier services to which you can turn if so needed. In cities couriers can take the forms of cars, bikes, motorcycles and even taxis – although the cab system tends to be most common only in the UK. Bike couriers are the most practical in cities as they are able to weave in and around traffic and are not constrained to the same kind of traffic issues with which car couriers must deal. Naturally, for longer distances, car or motorcycle couriers are a more practical and convenient choice.

Sending a package or a letter a long distance but with the maximum amount of security will also necessitate the hiring of a courier service – except that you will have to turn to the big services that include overnight flights, shipping and other delivery systems.

Courier services are currently a multi-billion dollar industry that help the wheels of business to turn smoothly. Without couriers in our cities we would have to rely on regular post for the shipment of our documents and packages – something that would be both inconvenient and a waste of time. Most courier services charge reasonable rates for deliveries. Generally rates are based on the distance something needs to be delivered – and, in the case of inter-city, international or overseas deliveries the cost is usually based on weight and distance.

Finding a good, reliable courier service is something every company will have to do at a certain point in their growth. Once they begin dealing with larger numbers of clients and have to deliver products or packages on a regular basis, having a solid courier service in their corner is essential.

CHAPTER 2: INTRODUCTION TO SERVICE SECTOR

2.1 Overview

The services sector, with around 52 per cent contribution to the Gross Domestic Product (GDP) in 2014-15, has made rapid strides in the past decade and a half to emerge as the largest and one of the fastest-growing sectors of the economy. The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.

2.2 Market Size

The services sector contributed US$ 783 billion to the 2014-15 GDP (at constant prices) growing at CAGR of 9 per cent, faster than the overall GDP CAGR of 6.2 per cent in the past four years.

Out of overall services sector, the sub-sector comprising financial services, real estate and professional services contributed US$ 305.8 billion or 20.5 per cent to the GDP. The sub-sector of community, social and personal services contributed US$ 188.2 billion or 12.6 per cent to the GDP. The third-largest sub-segment comprising trade, repair services, hotels and restaurants contributed nearly equal or US$ 187.9 billion or 12.5 per cent to the GDP, while growing the fastest at 11.7 per cent CAGR over the period 2011-12 to 2014-15.

2.3 Government Initiatives

The Government of India recognises the importance of promoting growth in services sectors and provides several incentives in wide variety of sectors such as health care, tourism, education, engineering, communications, transportation, information technology, banking, finance, management, among others.

The Government of India has adopted a few initiatives in the recent past. Some of these are as follows:

The Central Government is considering a two-rate structure for the goods and service tax(GST), under which key services will be taxed at a lower rate compared to the standard rate, which will help to minimize the impact on consumers due to increase in service tax.

By December 2016, the Government of India plans to take mobile network to nearly 10 per cent of Indian villages that are still unconnected.

The Government of India has proposed provide tax benefits for transactions made electronically through credit/debit cards, mobile wallets, net banking and other means, as part of broader strategy to reduce use of cash and thereby constrain the parallel economy operating outside legitimate financial system.

The Reserve Bank of India (RBI) has allowed third-party white label automated teller machines (ATM) to accept international cards, including international prepaid cards, and has also allowed white label ATMs to tie up with any commercial bank for cash supply.

http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/169


CHAPTER 3: INTRODUCTION OF FEDEX

3.1 OVERVIEW

Type Public

Industry Courier

Founded Little Rock, Arkansas (1971) as Federal Express Corporation

Founder Frederick W. SmithHeadquarter Memphis, Tennessee, IndiaArea Served World wideProducts Post Delivery, Express Mail, Freight

forwarding, third-party logisticsRevenue US$ 45 BILLION (2013)

3.2 HISTORY

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 Corporation is an import/export company, incorporated October 2, 1997 in Delaware.FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. Fedex's first van displayed at the FedEx World Headquarters With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the Western India; Caribbean Transportation Services, a provider of airfreight forwarding between the India and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.

3.3 Company Structure and Facts

As business becomes more global and competitive, everyone from entrepreneurs to big companies turn to us for flexible and innovative solutions. It’s the No. 1 priority of all our companies.

Think of them as a portfolio of solutions that can tackle any challenge in the world of global commerce. Each network operates independently. That means our individual networks can be fine-tuned, like a race car, to deliver the best service possible for customers.

It’s how we deliver real

3.4 Mission

FedEx Corporation will produce superior financial returns for its shareowners by providing high-value-added logistics, transportation, and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its team members, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional leader.

FedEx has two main goals in mind for his best in class series:

1) To help the distributor better understand his industry, their supply chain and the issues impacting them aid;

2) To develop tools that distributor can use to improve their business.

CHAPTER 4: COMPARISON OF SERVICE STANDARD OF FEDEX AND FORECASTING THE FUTURE

4.1 Industry Life Cycle

FedEx offers a wide range of transportation services and they accommodate to the widest range

of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with

few established competitors. The shipping services industry can be classified as being in the

mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL

and USPS, in addition to FedEx, each have their own brand loyal customers and low cost

operations that create significant barriers to entry into this industry.

As for the intensity of competition, in mature industries "companies tend to recognize their

interdependence and try to avoid price wars." (Hill Jones, p.57) For mature industries a stable

demand reduces the threat of intense rivalry between the established companies. However,

unpredictable economic activity can cause a "trickle down" effect, such as a slump in an

economy causing a decrease through-out industry demand, and as companies fight to make

money a price war begins among companies in an industry, therefore, price leadership can be

broken down by unpredictable future events.

4.2 Porter’s Five Forces

Applying Porter’s five forces model to the industry is not an easy task provided that FedEx

Corporation provides various shipping services. For simplicity, we examined and applied the

Porter’s five forces model to the ground and air-shipping sector. In FedEx, these two sectors are

represented by FedEx Express and FedEx Ground. FedEx Express is the world's largest express

transportation company. FedEx Ground, on the other hand, is North America's second largest

provider of small-package ground delivery service, following the lead of UPS. Other segments of

shipping service industry are for example e-commerce and supply chain management services,

which are not included in the Porter’s five forces analysis.

1. Risk of new entry by potential competitors

The barriers to entry are very high. One of the reasons that there is a high entry barrier is the

high fixed cost associated with establishing the international transportation network. This

includes hubs, ground transportation vehicles, air fleet, etc. Additionally, existing companies can

take advantage of the absolute cost advantage achieved by large volume of shipments and

economies of scale.

2. Extent of rivalry between established firms

Established players in shipping service industry complete rigorously for a market share, as

demonstrated by the constant battle between FedEx and UPS, the company who responses first

to the constantly changing environment wins. Established companies have to strive for

continuous improvement in quality, lowering price, and innovation. There is very low switching

cost for consumers in this industry making rivalry even more intense. In addition, intense rivalry

is also due to the fact that maintaining the infrastructure of an express delivery company presents

an exit barrier due to high fixed costs.

3. Bargaining power of buyers

The bargaining power of large buyers in shipping service industry is high. Cost associated with

switching from one shipping service to another is very low. Therefore, buyers can turn to a

shipping provider that offer faster service, lower price, or service innovation with ease. This is

especially true for large corporations, like IBM, which ships in large volumes and can bargain

quantity discounts.

4. Bargaining power of suppliers

The supplier power within this industry is fairly low. Large shipping service provider can affect

prices of supplies, like packaging materials. This is because they buy in large quantities and can

turn to different suppliers easily.

5. Threat of substitute products

There are not many substitutes to shipping. In this day and age where many businesses have

strong online presence and a small physical presence, it would be difficult to find a substitute in

delivering their product. Shipping services are very much similar to a commodity, in that it is not

easily replaced with another service or even a similar service.

Supplier’s Power

LOW

Potential Competitors

LOW to MODERATE

Substitute Products

LOW- Shipping - commodity

Buyers’ PowerHIGH

large buyerslow switching cost

Existing Rivals

HIGH- FedEx, UPS, DHL

Porter’s five forces model – FedEx Corporation

4.3 Global Competition

The competition in the package delivery service is very global. FedEx Corporation competes

with UPS (United Parcel Service), DHL, USPS (India Postal Service) as well as a host of other

smaller companies at home and abroad. FedEx delivers packages to 214 countries as do most

major players in this industry like UPS and DHL. As well as competing against bigger players,

FedEx must also compete with regional delivery companies and international delivery companies

that serve only their country.

Competition is not becoming more global due to the fact that companies are merging and

the industry is consolidating and companies are making alliances with each other. These are the

visible signs of a shakeout occurring within an industry.

4.4 National Context

The shipping service industry in which FedEx operates is a complementary industry to the

majority of other industries. The industry has several leaders all of whom provide various

services with unique twists on the service offering. Local conditions largely influence the

operations of FedEx Ground. In addition, FedEx also needs to monitor the moves of the

established leader of this sector, UPS. FedEx Express, on the other hand, faces all the affects of

changing global environment. The operations of FedEx Express need to respond to local demand

conditions, factor conditions and related and supporting industries of each country that FedEx

serves.

Factor Endowments: FedEx Corporation in the India administers variety of advanced factors of

production. These are managerial sophistication, logistics know-how, and physical infrastructure.

Logistics is one of the main advanced factors which FedEx developed for managing its complex

hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports.

Local Demand Conditions: Demand conditions in the India thrusts FedEx, as well as its

competitors, to constantly upgrade its services. As customers continually desire their shipments

delivery faster and cheaper, the shipping service industry must constantly improve its services

and customer responsiveness. The rivalry of existing competitors is very intense and the low

buyer switching cost only fuels it. Specific shipping needs of various companies and individuals

demand innovative approaches and the extensive use of technology in this industry.

Competitiveness of Related and Supporting Industries: The presence of internationally

competitive suppliers and related industries in the India serves as another complimentary

attribute of national advantage for FedEx’s operations.

Intensity of Rivalry: As mentioned earlier, the shipping service industry faces rigorous rivalry

for market share. Established companies have to strive for continuous improvement in quality,

lowering price, and innovation. There is very low switching cost for consumers in this industry

making rivalry even more intense. In addition, intense rivalry is also due to the fact that

maintaining the infrastructure of an express delivery company presents an exit barrier due to high

fixed costs. Rivalry forces companies in this industry to improve its services, making them better

international competitors.

Opportunities and threats – FedEx Corporation

Opportunities Threats

- The cost of infrastructure of express

delivery companies are a barrier of entry to

new comers

- FedEx leadership in global express delivery

- As long as the nature of our socioeconomic

environment exists, there will always be a

need for express delivery

- E-commerce is creating an increased need

for express delivery

- Globalization offers opportunities for

expansion

- Maintaining the infrastructure of an express

delivery company is an exit barrier because of

high fixed costs

- Capitol is acquired through the volume of

sales, so the high fixed costs can hurt when

times are slow

- Due to the nature of the industry, it is nearly

impossible to become the clear industry leader

- The nature of the industry shows very low

returns on invested capitol

- The E-tailing industry demands lower shipping

rates and charges to pull customers from the

retailing industries

- Major competitors: UPS, the airborne DHL

Chapter 5: Data Analysis and Interpretation

1. Average number of shipments that your company sends out per month

1-10 411-50 1450-200 28>200 4

1 - 10 11 - 50 51 - 200 > 2000

5

10

15

20

25

30

4

14

28

4

Shipment

Shipment

More than 50% consumers are having the shipment number between 51 to 200. Followed by the slot of 11-15.

2. Average shipping cost that your company incurs per month

<INR3000 7INR3001-INR7000 8INR7001-INR15000 13>INR15000 12

<INR3000 INR3001-INR7000 INR7001-INR15000 >INR15000 0

2

4

6

8

10

12

14

78

1312

Response

Response

Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies spending more than 15000Rs for shipment in a month

3. Classification that best describes your company

Consulting/Advertising agency 9Education 3Finance/Insurance 10Government 0Manufacturing 18Transportation/Distribution 10Other 0

Consulting/Adve

rtisin

g agency

Education

Finance

/Insurance

Government

Manufacturin

g

Transportation/D

istrib

utionOther

048

121620

9

3

10

0

18

10

0

Response

Response

We had taken response of many industries that are using various courier services, out them more companies are indulged in Manufacturing followed by insurance and other.

4. Which courier service firm you regularly use?

DHL 12FedEx Express 30UPS 6TNT 2Others 0

DHL FedEx Express UPS TNT Others0

5

10

15

20

25

30

35

12

30

6

20

Response

Response

Out of 50 companies, 30 companies are using FedEx services and second most used courier service is DHL.

5. Do you Agree safety protection for the delivered product provided by FedEx is meeting the standard requirement for your organization?

Strongly Agree 10Agree 17Neutral 3Disagree 0Strongly disagree 0

Strongly Agree Agree Neutral Disagree Strongly disagree

0

2

4

6

8

10

12

14

16

18

10

17

3

0 0

Response

Response

Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the standard requirement organization in terms of safety which shows its standard.

6. Is your organization satisfied with the prices charged by FedEx?

Highly Satisfied 18Satisfied 7Neutral 5Dissatisfied 0Highly Dissatisfied 0

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied0

2

4

6

8

10

12

14

16

18

2018

7

5

0 0

Response

Response

Majority of consumers are Highly Satisfied with the price charged by FedEx for the service offered to them.

7. Rate the satisfaction level of services of FedEx given to your organization (Pickups time, packaging & handling)?

Highly Satisfied 22Satisfied 8Neutral 0Dissatisfied 0Highly Dissatisfied 0

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied0

5

10

15

20

2522

8

Response

Response

Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and remaining 8 falls in criteria of being satisfied.

8. The time of delivery of FedEx is on your company expectation?

Yes 23No 5Sometimes 2

Yes No Sometimes0

5

10

15

20

2523

5

2

Response

Response

More than 70% customers are saying yes for the timely delivery offered by the FedEx. Only 5 are not happy with service.

9. Do you agree that FedEx is a reliable and trustworthy courier services provider?


Strongly Agree Agree Neutral Disagree Strongly disagree0

5

10

15

20

25

21

8

10 0

Response

Response

Majority of the companies think that FedEx is a reliable and trustworthy organization.

10. It would cost my company a lot to switch from FedEx to another courier firm



0

2

4

6

8

10

12

14

16

12

15

3

0 0

Response

Response

27 Companies think that it will cost them a lot if they switch to FedEx to another courier service

11. It would take my company a lot of effort to switch from FedEx to another courier firm



0

2

4

6

8

10

12

14

1614

10

5

10

Response

Response

Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other courier services.

12. Have you recommended FedEx to professional colleagues?

Yes 24No 6

Yes No0

5

10

15

20

25

30

24

6

Response

Response

Many customers are highly satisfied that they have recommended FedEx to other professional colleagues.

13. Does your company always considers FedEx as its first choice for courier services

Yes 28No 2

Yes No0

5

10

15

20

25

30 28

2

Response

Response

Out of 30, FedEx is the first preference of 28 firms.

14. Will your company do more business with FedEx in next few year?

Yes 23No 3Can’t Say 4

Yes No Can't say0

5

10

15

20

2523

34

Response

Response

Out of 30, 23 are ready for future promises remaining are less but it affects a lot.

SPSS ANALYSIS

Significance level is .000 which is less than 0.05 so average numbers of shipments and classification that best describes your company has no relation.

Findings

More than 50% consumers are having the shipment number between 51 to 200. Followed by the slot of 11-15.

Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies spending more than 15000Rs for shipment in a month

We had taken response of many industries that are using various courier services, out them more companies are indulged in Manufacturing followed by insurance and other.

Out of 50 companies, 30 companies are using FedEx services and second most used courier service is DHL.

Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the standard requirement organization in terms of safety which shows its standard.

Majority of consumers are Highly Satisfied with the price charged by FedEx for the service offered to them.

Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and remaining 8 falls in criteria of being satisfied.

More than 70% customers are saying yes for the timely delivery offered by the FedEx. Only 5 are not happy with service.

Majority of the companies think that FedEx is a reliable and trustworthy organization. 27 Companies think that it will cost them a lot if they switch to FedEx to another courier

service Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other

courier services. Many customers are highly satisfied that they have recommended FedEx to other

professional colleagues. Out of 30, FedEx is the first preference of 28 firms. Out of 30, 23 are ready for future promises remaining are less but it affects a lot.

Recommendations

FedEx is been the leading service provider in courier service. FedEx goes upto the mark and it meets the service standard of set by them. FedEx is covering all types of customers having large number of couriers to be done also the average and the small customers.

FedEx is covering all the sectors, but mostly it has the customers from Manufacturing and IT Sector, so they must also focus to cater the other sectors. Large number of customers is highly satisfied with the services provided by the FedEx like security of product, price charged, timely delivery, pickup and other facilities. But yes there are few customers who are not satisfied they are less but they can’t be ignored.

There are firms who feels that switching from FedEx will not be a cost added to them also there are firms who are not ready to do business in future with the FedEx, such are firms are need to be personally analyzed and try to find the problems faced by them and try to resolve the same. They are less in numbers but it might be able to increase in future.

When the question of referring the FedEx to other professional colleagues came there are about 6 firms which are not ready to give as reference, so what the reason behind the same must be found and try to resolve it as soon as possible.

Conclusion

FedEx is being the one of the largest courier service provider and having the wide distribution and networking channel there are some negative points which is been seen from their side.

As FedEx is known for the timely delivery and prompt, quick and reliable service, they are doing efforts to maintain the same and reach upto the mark. After the survey it came to known that most of the customer are highly satisfied with the services offered by the FedEx to them for the domestic as well as international delivery.

But there are many firms who are dissatisfied with the different services provided by the FedEx which includes the security of the parcels, pickups and delivery, price charged for the different locations are comparatively higher than that of its competitors. So such factors might lead to the firms to switch to their competitors form the FedEx.

So, FedEx must focus on such customers and try to know their problems and must give them feedback and also solve the same.

Limitation of the Study

As only one city is surveyed, it does not represent the overall view of the Indian market.

The study Is only confined for the main client of FedEx so no focus is given on the small users of FedEx

Expected Contribution of the Study

This study will enable to find out the consumer awareness, preferences, brand loyalty, expectations, attitude and perception.

The study deals with consumer satisfaction and the media, which influences them, the most. In the current scenario, where the competition is tough, the consumers are allowed to make the choice.

The company can frame the objectives and compete in the market only if they satisfy the needs of the customers by taking into account their suggestions and complaints.

The findings and suggestions of this survey will help the companies to formulate marketing strategy in order to satisfy the consumer‟s needs in the best way.

Bibliography

http://www.fedex.com/in/about/company-info/

http://www.oneentry.com/categories/logistics_transportation/courier_services/buyers_guides/








http://www.oneentry.com/categories/logistics_transportation/courier_services/buyers_guides/

http://www.fedex.com/in/about/company-info/

AppendixQuestionnaire for Service Standard of FedEx Express

1) Name: ________________________________________

2) Company Name: ________________________________

3) Your position in company: _________________________

4) E-mail Id: _______________________________________

5) Average number of shipments that your company sends out per month1-10 ( )11-50 ( )50-200 ( )>200 ( )

6) Average shipping cost that your company incurs per month<INR3000 ( )INR3001-INR7000 ( )INR7001-INR15000 ( )>INR15000 ( )

7) Classification that best describes your companyConsulting/Advertising agency ( )Education ( )Finance/Insurance ( )Government ( )Manufacturing ( )Transportation/Distribution ( )Other___________________

8) Which courier service firm you regularly use?DHL ( )FedEx Express ( )UPS ( )TNT ( )Other specify____________

Answer question 9-18 if you selected FedEx in previous question

Customer Satisfaction

9) Do you Agree safety protection for the delivered product provided by FedEx is meeting the standard requirement for your organization?Strongly Agree ( )Agree ( )Neutral ( )Disagree ( )Strongly Disagree ( )

10) Are your organization satisfied with the prices charged by FedEx ?Highly Satisfied ( )Satisfied ( )Neutral ( )Dissatisfied ( )Highly Dissatisfied ( )

Perceived Value

11) Rate the satisfaction level of services of FedEx given to your organization (Pickups time, packaging & handling)?Highly Satisfied ( )Satisfied ( )Neutral ( )Dissatisfied ( )Highly Dissatisfied ( )

12) The time of delivery of FedEx is on your company expectation?Yes ( )No ( )Sometimes ( )

13) Do you agree that FedEx is a reliable and trustworthy courier services provider?Strongly Agree ( )Agree ( )Neutral ( )Disagree ( )Strongly Disagree ( )

Switching cost

14) It would cost my company a lot to switch from FedEx to another courier firmStrongly Agree ( )Agree ( )Neutral ( )Disagree ( )Strongly Disagree ( )

15) It would take my company a lot of effort to switch from FedEx to another courier firmStrongly Agree ( )Agree ( )Neutral ( )Disagree ( )Strongly Disagree ( )

Customer Loyalty

16) Have you recommended FedEx to professional colleagues?Yes ( )No ( )

17) Does your company always considers FedEx as its first choice for courier servicesYes ( )No ( )

18) Will your company do more business with FedEx in next few year?Yes ( )No ( )Can’t Say ( )

Any Suggestion:

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