Fed Ex

In: Business and Management

Submitted By sangjahn
Words 475
Pages 2
Marketing Case #1: Federal Express (FEC)

Situational analysis

Consumer | Small packages (up to 2 lbs) must be delivered in a reliable and timely manner. Delivery confirmation would help. | Competitor | USPS (Express Mail), Emery (much bigger brand name), smaller airfreight forwarders, REA Air Express, Airlines, *local freight companies (hard to match local relationships) | Company | Courier Paks at flat rate, self-contained delivery/flight system (sustainable), People-oriented culture (employee satisfaction seems high) | Collaborators | Local storage/sorting facilities, truck drivers, salesforce, researchers (comparing Express Mail reliability) | Context | The airfreight industry is becoming cutthroat and companies are copying business models and popping up everywhere. Express mail is taking off but at a per distance and weight cost basis. |

Setting the strategy Segmentation | Basic consumer (20%) , Manufacturing and distribution (17%), Advertising (8%) – Reliability is key across segments | Targeting | Businesses with lots of paper pushing and the general consumer | Positioning | Reliability, All American Jets (America’s Shipper), Flat rate package – Possible expansion into bigger courier packs |

Value proposition Product | Flat rate box – We run our own airline | Place | Toll free number to call about locating local courier pack provider – You’d want couriers to keep stores of packs on their trucks to sell | Promotion | Convince customers on reliability and easy flat rates – TV spots after work hours to reach 9-5 employees as well | Price | Cannot change with flat rate marketing campaign |

USPS targets anything from 0 to 40 lbs, 3pm next day. Must bring to postal facility with express mail service. Receipt and record of delivery at destination post office. (Exhibit 1)

Focused industry/category…...

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