Marketing Strategy of FedEx – FedEx Marketing Strategy

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Marketing Strategy of FedEx – FedEx Marketing Strategy: Established in 1973 with the help of Frederick Wallace Smith, FedEx has made significant strides to become a major company in the logistics and service industry, serving around 220 countries and territories around the world. FedEx’s products and services portfolio comprise E-commerce transport and business services.

It was acquired by Europe’s logistics huge TNT express in 2016, which has helped it gain a competitive advantage in addition to GENCO (acquired within the fiscal year 2015) as well as Bongo International.

FedEx At A Glance – Marketing Strategy of FedEx

Marketing Strategy of FedEx

Company: Federal Express Corporation

CEO: Frederick W. Smith

Founder: Frederick W. Smith

Year founded: 5 May 1971, Little Rock, Arkansas, United States

Headquarters: Memphis, Tennessee, United States

Annual Revenue: US$84 billion

Profit | Net income: US$69 billion

Number of employees: 500,000

Products & Services: Warehousing Services | Package Express Services | Transportation Solution | Temperature Sensitive Shipments Services | Supply Chain Solutions | E-Commerce Services | Courier Services

Website: www.fedex.com

FedEx Competitors

Competitors: Stamps.com | Owens & Minor | DACHSER | ÖBB | CEVA Logistics | Royal Mail | DHL | C.H. Robinson | DHL Group | UPS

FedEx Fun Facts: FedEx owns over 670 airplanes, which makes the FedEx air cargo fleet the largest in the world.

Marketing Strategy of FedEx

Marketing Strategy of FedEx

FedEx’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of FedEx? Let us discuss.

Segmentation, Targeting, Positioning – FedEx Marketing Strategy

FedEx the most renowned logistics and Delivery Company utilizes the strategies of psychographic and demographic segmentation to segment the market into the category of customers with similar wants and needs.

Because FedEx serves customers from different categories, so it employs different targetting tactics.

It utilizes price-based placement techniques to focus on the targeted segment of the client with the best services.

GoalMission “To develop mutually rewarding relations with its partners, employees and partners

FedEx Mission Statement

To develop mutually rewarding relationships with its employees, partners and suppliers

FedEx Vision Statement

Not Available

FedEx Tagline

The World on time”.

Competitive Advantage – Marketing Strategy of FedEx

Modernizing the air fleet: Modernising its Aircraft fleet is among the competitive advantages FedEx has gained, helping to cut down the operational costs and structural costs, decrease the cost of fuel, and increase the effectiveness of its global network. The company has purchased sixty Boeing 757 and 767-300F, and 767-300F aircraft in the years 2014 and the year 2016.

Concentrate on retail accounts: With the advent of technology and the shifting lifestyles and the growth of the eCommerce industry, FedEx has shifted its concentration to a smaller to medium-sized customers and has opted to avoid accounts that are not profitable so that it can earn a higher ROA( return on assets ) and boost its profits.

SBU’s working in a team: Its Strategic business units are operating independently within the market, but cooperating to assist each other in the meta-market assists the company in staying ahead of its competitors.

BCG Matrix – FedEx Marketing Strategy

FedEx operates through five business divisions that are strategic to the company (SBUs) including FedEx Express, TNT Express, FedEx Freight, FedEx Ground along with FedEx Services.

There are FedEx Express, FedEx Freight, TNT express, and FedEx business divisions that operate in their respective countries featured within the BCG matrix. Because FedEx Services is considered to be the backbone business of other business units of FedEx and thus are cash cows in the matrix of business.

Distribution Strategy – Marketing Strategy of FedEx

The company’s revenue of 50.4 billion for FY16, and serving around 220 different countries and territories was possible thanks to the talented pool of more than 4000 employees FedEx employs around the world. The company replaced its fleet of 25 aircraft in 2015 and purchased 50 new Boeing B767 advanced aircraft to facilitate the distribution and services efficiently and on time.

Brand equity – FedEx Marketing Strategy

With its high TOMA (top-of-the-mind awareness) and awareness, FedEx has established itself as an established brand within the transport industry. It is ranked 75th on the Forbes listing of the most valuable brands in the world worth $44.6 billion (market capitalization method) at the time of writing in May 2016.

According to the Fortune Magazine list, FedEx has been named 12th on the top 10 most loved companies and placed as no. one in the field that it is in i.e. logistical/delivery industry.

Competitive Analysis – FedEx Marketing Strategy

The logistics and transportation and business services sector is highly competitive and is subject to the challenge of price and services on the fronts. It is competing with regional, local, as well as international businesses such as UPS, DHL, Amazon express, and many more within the sector.

Market Analysis – Marketing Strategy of FedEx

A changing economic environment, growing international business possibilities, evolving government regulations, and opening up of markets/ economies to foreign investors in different sectors of the developing world and the increasing competition, transport with short shelf lives are just some of the variables impacting the business of businesses in this field.

Customer Analysis – FedEx Marketing Strategy

FedEx provides customers from various categories and social classes. The customers include different industries, government organizations as well as private clients seeking various solutions for their logistics.

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