Case Assignment Analysis MRKT 5000 Online Course

Week One FedEx Corporation

Gary Clark

Is FedEx Packages Marketing for Overnight Success?

Case Summary:

FedEx is a logistics company based out of Memphis, Tennessee and controls over 50 percent of the overnight market. The case includes how FedEx has stayed a trendsetting leader in the package delivery business and what makes the company so successful. FedEx is committed to and understands the value of effective marketing and will continue to build relationships by adding new and improved services for the customer.

Key Marketing Issues

Customer Service – FedEx believes that by providing reliable, competitive, global air-

ground transportation of packages that require quick delivery will influence the customer. Building relationships based on the way customers view FedEx is extremely important in marketing the company. FedEx strives to achieve one hundred percent customer satisfaction.

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New Branding Unveiled – Change was needed and FedEx not only took a chance with changing their identity but continue to spend millions of dollars yearly in advertising to keep FedEx a leader in the overnight delivery business.

On Time Overnight Delivery – FedEx has the infrastructure and processes in place to ensure overnight delivery of packages arrive on time to their destination 99 percent of the time.

Information Technology – FedEx relies on up to date technology and is one of the keys to their success. As they continue to grow and provide more services, which includes the global market, then information technology must continue to improve with the latest technology. FedEx wireless technology enables complete access to their information systems network by customers, couriers, and delivery personnel.

Software Applications – Provides the customer with innovated technology and software where the customer can access real-time information regarding package

delivery. FedEx gives away its proprietary tracking software allowing customers to track their deliveries online.

Constantly Improving – Each year FedEx spends millions of dollars on their advertising campaign. This ensures their name is on the forefront of the package delivery business at all times.

Flexibility – FedEx is always ready to deal with any unexpected breakdown of one of its assets or natural disaster. FedEx trains using disaster preparedness drills and maintains its own radio network for communications.

Employee Performance / “Purple Promise” – FedEx is a leader in believing that employee satisfaction and performance results in customer satisfaction. FedEx implemented to its employees the “purple promise” which says “I will make every FedEx experience outstanding”. The company has asked every employee to live by this promise.

Personal Case Analysis

I learned that FedEx has succeeded and gotten where they are today by being prepared, whether it’s from a breakdown of assets or a natural disaster. Not only have they continued to expand and grow, they do it by continuing to market each year. They are not afraid to spend millions of dollars a year on their marketing campaign. They have even tapped into the sports market by sponsoring the PGA, NFL, NASCAR and College Football as they feel this is one of the hottest markets for building relationships with their customers.

Case Questions

1- Which three environmental forces are likely to have the greatest effects on FedEx?

a. Competition – competition from the U.S. Postal Service, DHL, Emery, RPS, Email and Fax has forced FedEx to always look for ways to expand and stay on top in the overnight delivery business.

b. Disaster – Whether it is a natural disaster or an asset failure that is unexpected FedEx has to be ready for almost anything that can hinder their deliveries.

c. Fax or Email – with fax and email a customer can just forward a document over a secure network anywhere around the world cutting out the need for overnight delivery service.

2- What are the major strengths, weaknesses, opportunities and threats (SWOT) associated with FedEx?

a. Strengths – ability to grow and expand services; disaster preparedness; Information technology; proprietary software; effective marketing; global presence; customer service; employee satisfaction; flexibility; wireless technology

b. Weaknesses – Can’t control the unpredictable; costs involved when compared to competition; inability to distance themselves from their competition

c. Opportunities – continue to expand by adding more companies; continue to expand globally; expand technology solutions

d. Threats – competition from U.S. Postal Service, DHL, Emery, RPS; unable to distance themselves from their competitors; failure of technology infrastructure; natural disaster; email and fax

3- Is there evidence that FedEx has attempted to adopt and use the marketing concept? Explain.

Yes. FedEx spends millions of dollars per year on their brand identity keeping them the most recognized name in the express overnight delivery business. They tapped into the sports market by sponsoring the PGA, NFL, NASCAR and College Football as they feel this is one of the hottest markets for building relationships with their customers. They continue to expand globally to reach new customers. Focus is placed on managing the opportunities where the dollar will go further by integrating all messages regardless of whether it’s TV, radio, print, online, or direct marketing.

4- Evaluate FedEx’s mission statement. Explain the major strengths and weaknesses of the mission statement.

FedEx prides itself on following its mission statement. FedEx not only wants to make financial gains for their shareholders but they will do so at the highest ethical and professional manner; they continually strive for the highest employee satisfaction which in turn results in outstanding customer service to all aspects of the business.

a. Strengths – financial gains for shareholders; employee satisfaction; customer service; holds company to highest ethical and professional manner; safety on the job

b. Weaknesses – company may not make financial gains needed due to competition; partners and suppliers may become unpredictable;

Conclusions

FedEx is a company that strives to be the trendsetting leader in the package delivery business. FedEx used branding to become the most recognizable leader in the overnight delivery business. When employee’s performance is highest, FedEx believes relationships are being built with the customer, partners and suppliers. FedEx strives to achieve one hundred percent customer satisfaction. FedEx is constantly improving their image through advertising, updating their information technology infrastructure along with their software applications especially their proprietary tracking software. With their flexibility in being always ready for the unexpected, FedEx ensures on time overnight delivery 99 percent of the time.

Works Cited

(n.d.). Retrieved October 22, 2010, from The Internationalist: http://www.internationalistmagazine.com/Marketers/FedEx-LaurieTucker.pdf

(2007, October 22). Retrieved October 22, 2010, from BtoB: http://www.btobonline.com/apps/pbcs.dll/article?AID=/20071022/FREE/71022008/1068/best2007#seenit

(2009, October). Retrieved October 22, 2010, from Noctural: http://www.nocturnaldesign.com/cm/content/collaborateandconquer.asp

(2010, October 21). Retrieved October 22, 2010, from FedEx: http://about.fedex.designcdt.com/our_company/marketing_and_advertising