SUBMITTED BY-

ASTHA KABRA
17021141021
B2B MARKETING
Table of Contents
Overview ...................................................................................................................................... 3
Outlook ........................................................................................................................................ 5
INDUSTRY ANALYSIS..................................................................................................................... 6
About ........................................................................................................................................... 8
Mission ...................................................................................................................................................9
Tagline ....................................................................................................................................................9
The ‘heart and soul’ of FedEx..................................................................................................................9
Federal Express Timeline ............................................................................................................ 10
MARKET SEGMENTATION........................................................................................................... 12
Segmentation through self-selection .................................................................................................... 13
Segmentation based on “ Customer behaviour” ................................................................................... 13
COMPETITORS ............................................................................................................................ 15
TARGET MARKET ........................................................................................................................ 17
MARKET POSITIONING ............................................................................................................... 18
MARKETING STRATEGIES............................................................................................................ 19
a) Value proposition .............................................................................................................. 20
ü Their solutions connect people and possibilities. ...........................................21
b) Repositioning in the past ................................................................................................... 22
FedEx – Name and Logo Rebranding .......................................................................................... 22
c) Nature of offering ................................................................................................................... 24
Services offered by FedEx ........................................................................................................... 27
FedEx Priority Overnight™: ................................................................................................................... 28
FedEx Economy™: ................................................................................................................................. 29
Ancillary Services: ................................................................................................................................. 29
FedEx’s Position in the Courier Marketplace .............................................................................. 29
FedEx Pricing .............................................................................................................................. 30
FedEx Promotions ...................................................................................................................... 30
Direct & Indirect channels company has built to serve the markets .......................................... 31
Internet and wireless technologies deployed ............................................................................. 32
Marketing communication campaigns. ...................................................................................... 33
Use of social media in marketing communication. ..................................................................... 33
Communication Channels deployed and Communication Campaigns ran .................................. 34
Company’s efforts in organizing and participating in various events and trade exhibitions, etc. 36
Corporate brand building / CSR exercise .................................................................................... 38
Alliances ..................................................................................................................................... 41
FedEx strengthens its domestic ground and supply chain services in India following
successful integration .........................................................................................................42
pg. 1
Development (new products, research) projects........................................................................ 44
Technological Innovation at FedEx ............................................................................................. 45
Pricing strategies adopted by FedEx ........................................................................................... 49
Why ship with FedEx .................................................................................................................. 50
Environmental Sustainability ..................................................................................................... 51
Ø In EMEA their accomplishments include the following: ................................................. 51
Awards and Recognition............................................................................................................. 54

pg. 2
COURIER SERVICES
Overview
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.

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

pg. 3
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.

Although the Indian postal service, DHL Express India Pvt. Ltd. and Blue Dart

Express hold domestic market shares and have secure global networks, India is still

cluttered with many small unorganized participants who have gained trust of the

customers over the years. Although with the courier service industry catering to a

total of approximately 40,000 pin codes of the country, due to the unstructured

market and harrowing competition from local courier express services, there is a

dire need for this industry to achieve better networks, innovate rigorously and strive

towards better support from logistics.

With over 150,000 post offices set up in the country, the Indian Postal Service is

rendered the most reliable of all players. But the express services' industry faces

severe pressure which undermines profit in bringing a cap to their prices. While

Blue Dart and DHL entered in to an association in 2014 to enhance their presence

in the market, there is need for breakthrough technology and best practices

withstanding the forces of competition. With little left to improve on, the industry

has to gather its stability from solidifying its market through unification and alliances

among top players, proficiency in their logistics network and devising a strategy to
pg. 4
opt for just in time systems and usage of the growing information technology sector

to their advantage. Moreover, in spite the fact that the express delivery services,

have, over the years sought faster delivery with cost performance, characteristically,

it remains very elastic in favour of the customers due to the competition. Many

foreign participants have tried to squeeze in to the markets but have struggled to

keep up with low price potential and severe pressure on cutting costs.

Outlook
The industry is at its maturity stage and has consolidated to a level where barriers

to entry have been created. Owing to the boom of the e-commerce sector however,

the potential for tie-ups between these companies and the courier services is high.

Giants like Amazon and Flipkart look forward to linking with Indian postal services

for their distribution and warehousing needs. The overall existence and survival of

postal services is going to decrease significantly due to other modes of

communication taking market share.

Some of the International companies that have been covered are DHL, FedEx and

UPS and thus critical success factors of such companies have also been assessed

taking into consideration there varied customer segments and global presence

across countries.

pg. 5
INDUSTRY ANALYSIS
The main two noteworthy players represent 64.0% of aggregate industry income,

which are FedEx Corporation and United Parcel Service. Based on the revenue

and volumes of packages shipped, UPS is the world’s largest small packages

carrier. UPS is the specialist in the ground packages but it also offers wide range of

services such as air shipping and freight shipping. FedEx on the other hand

consists of four main segments and is a specialist in express service. FedEx

Express comprises of around 52,400 drop-off areas, 647 airplane and 54,100

vehicles. FedEx Express likewise has an arrangement with the US Postal Service to

give transportation to postal express shipments; however it doesn't deliver mails.

Other players in this industry are Deutsche Post AG which has a market share of

3.5%.

This industry comprises of large courier and local delivery companies. Large

courier uses air and ground to deliver mails and packages locally as well as

globally. Local delivery companies’ delivers in a specific local area. Market

earnings in this industry normally fluctuate together with consumer spending that

dictates need intended for goods that are transported through industry workers.

Consequently, industry earnings increase in keeping with greater consumer

spending, since a lot more things will likely need to be shipped using industry

products and services. Consumer spending is actually anticipated to increase in

pg. 6
2015, which represent some potential possibility for the industry. The rise in

ecommerce and the decline in the in-store purchase by customers will have

positive impact on the overall profitability of this industry. The firm in this industry

depends upon the online retailers such as Amazon and eBay. The online

purchases are expected to increase in the future. Growth in buyer paying as well

as the amount of firms might be a reflection involving with overall improvements

throughout the economy, such as expanding customer assurance as well as

increased use of credit through ecommerce.

The industry is in maturity stage of its lifecycle at the moment and has become

more efficient. The resources that the big two players have, FedEx and UPS are the

key reasons why they dominate this industry. They account for more than 64% of

market share and will continue to dominate the industry in the coming future as

well. From the 5 years to 2020, the industry will be expected to benefit from strong

progress in customer spending as well as the quantity of firms. The profitability will

be dependent on the determinants such as, vehicle maintenance cost and the

increase in overall demand from retail, and wholesale sectors. Technological

improvements will also play significant role in increase in the demand for this

industry. With better online based shopping web portals and tracking systems for

the packages, the big firms such as FedEx and UPS will continue to dominate this

industry.

pg. 7
FED Ex
About
FedEx Express invented express

distribution and is the industry’s

global leader, providing rapid,

reliable, time-definite delivery to more than 220 countries and territories,

connecting markets that comprise more than 90 percent of the world’s gross

domestic product within one to three business days. Unmatched air route

authorities and transportation infrastructure, combined with leading-edge

information technologies, make FedEx Express the world’s largest express

transportation company, providing fast and reliable services for more than 3.6

million shipments each business day.

FedEx is the leading and well known cargo airline, which deals with the

transportation of goods and other products from one country to other. This

company has spread its business across the globe and it became the trusted name

in the transportation of the goods and products. The business owners and

entrepreneurs can send their packages and parcels to their required destination

through this courier service, which can be dispatched in short possible time. The

company is executing its duties in over 220 countries and regions of the world and

they have main offices in their big cities.

pg. 8
This courier company has maintained sustainable and safe environment for its

clients and they protect their documents and package, which is great concern for

their valuable clients. The company has gained much experience and the staff

carries out their activities with great skills and professionalism. The modern and

latest technology and information system network of the company helps to carry

out their services and they make their strong market share in the competitive

market. The company has effective distribution network, which can dispatch the

packages and products in short time.

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

Tagline
“The World on time”

The ‘heart and soul’ of FedEx

FedEx’s mantra is ‘Peace of mind ‘. The emotional side of this mantra is ‘peace’.

‘Mind’ is the descriptive side. What this mantra is missing, is the brand

function. The mantra of FedEx says nothing about the service, product or type of

experience that they provide. And jet, it is exactly what FedEx stands for: Peace of

mind, taking away the stress and drama out of delivery and offering solutions.

pg. 9
Federal Express Timeline

1973

• Federal Express establishes operations

• On the first night of continuous operation, 389 employees and 14 Dassault

Falcon jets deliver 186 packages to 25 U.S. cities.

1983

• Federal Express reaches US$1 billion in revenue – the first U.S. business to

achieve this status without merger or acquisition.

1985

• Regularly scheduled flights to Europe begin.

1989

• FedEx Express establishes direct operations in Dubai, United Arab

Emirates.

• Federal Express purchases Flying Tigers to expand its international

presence.

1994

• FedEx launches fedex.com the first transportation Web site to offer online

package status tracking, enabling customers to conduct business via the

Internet.

• FedEx achieves ISO 9001 certification for its global operations – the first

major carrier to earn this quality standard.

pg. 10
1996

• FedEx becomes the first company to allow customers to process shipments

online with the introduction of FedEx interNetShip® (now FedEx Ship

Manager®).

1997

• FedEx launches an around-the-world flight, which significantly reduces

transit times from Europe to the Middle-East, the Indian subcontinent and

Asia. The flight also marks the introduction of the first regular express

transportation service to Mumbai, India.

2000

• Parent company FDX is renamed "FedEx Corporation." Services are divided

into companies that operate independently yet compete collectively:

FedEx Express, FedEx Ground, FedEx Global Logistics, FedEx Custom

Critical and FedEx Services.

2009

• FedEx Express announces the launch of next-business-day domestic

express service for the Indian market.

2011

• FedEx Express acquires the logistics, distribution and express businesses of

AFL Pvt. Ltd and its affiliate Unifreight India Pvt. Ltd. in India.

pg. 11
MARKET SEGMENTATION
FedEx is providing its services to its diverse clients, which are ranged from

students, offices to the business and corporate sectors. The company has divided

its business in different segments and it meets the demands of all segments of

society. The corporate sector looks for the trusted company for the delivery of

their packages and parcels through safe and sustainable delivery system.

FedEx provide four major service--package, freight, expedited, and office service.

Within every service, it first differentiates “Business Users” and “Individual Users”.

Within these two segments, FedEx further divides its customers into small

segments, such as “small business owner”, “frequent individual user”, and

“rare individual user”, and treating them according to their value and needs. For

example, considering the high value of business users, FedEx are providing

personalized solution for them.

For each of service category, customer selects from various service

segments. Using package delivery as an example, customers can choose service

such as urgent deliver based on their “price sensitivity” and “time-constrain”.

pg. 12
Segmentation through self-selection
In a large part, the forming of segments are through customer self-selection. While

ordering a service through FedEx’s website, the customer fell into various

segments by clicking the mouse. Choosing the service you want, you fallen into

different products segment. By choosing to join one the three “ membership

club”, you suggests your shipping frequency and price sensitivity. By choosing

different ways for package pickup, you suggest the way you want to be served. By

asking customer to report their preference while purchasing, the company get

more accurate information about the customer (who knows the customer better

than him/her self) and decrease the risk of assigning the customer to a wrong

segment (the price for putting customer into wrong segment can be losing

him/her!)

Segmentation based on “ Customer behaviour”

No matter you purchase FedEx’s service online, through call centre, or to FedEx

centre, FedEx also records your purchases information along with other basic

information. The staff in call centre can name you when you call in and your

address pops up when ordering online. More importantly, the comprehensive

customer database help FedEx understand customer’ needs and behaviours, and

these insights are valuable in “crafting strategy”, “forming segments”, and other

customer practices. Moreover, it helps to evaluate the value of each customer.

Therefore, FedEx are able to allocate marketing resources based on customer

pg. 13
value, and generating more revenue by serving and retaining “high value”

segment. Ideally, it can accomplish “profit maximum” for every customer.

Targeting customer needs Different customers have different needs.

There FedEx divided itself into 6

different segments:

1. FedEx Express,

2. FedEx Freight,

3. FedEx Ground,

4. FedEx Trade Networks,

5. FedEx Custom Critical, and

6. FedEx Supply Chain Services.

FedEx Express, is geared to satisfy time and day definite service for anyone

needing speedy delivery of small packages (documents, legal papers, etc.), with a

money back guarantee to ensure an on time delivery.

FedEx Ground service caters more to a business-to-business small and medium

package delivery with less time and destination restraints.

FedEx Freight is the heavy package segment, allows customers to send packages

of over 150 pounds, regional and interregional, within the continental US with

flexible time restraints.

pg. 14
FedEx Custom Critical, which provide shipping of products requiring special care

in handling or specially equipped vehicles.

FedEx Trade Networks, which provide end-to-end support for international

trade.

FedEx Supply Chain Services which synchronize the movement of goods for

enhanced customer satisfaction.

COMPETITORS
Its chief competitors who provide them a stiff competition are as follows-

• TNT

• United Parcel Services

• DHL

FedEx is focusing on the B2B market and on the B2C market. Their service is

perfect for companies and personal use. TNT, DHL and UPS are more focusing on

the B2B market. FedEx is using a bit of humour in their campaigns, see the

commercials above. FedEx is even

using their most recognizable

item…the van. It’s just another way

of showing the world that FedEx is

faster than her competitors

pg. 15
C.H. Robinson is perceived as one of FedEx's biggest rivals. C.H. Robinson's

headquarters is in Eden Prairie, Minnesota, and was founded in 1905. C.H.

Robinson operates in the Courier and Logistics Services industry. C.H. Robinson

generates 23% of FedEx's revenue.

XPO Logistics has been one of FedEx's top competitors. XPO Logistics is a Public

company that was founded in 1989 in Greenwich, Connecticut. XPO Logistics is in

the Marine Freight Transportation field. Compared to FedEx, XPO Logistics has

71,000 fewer employees.

Purolator International is FedEx's #3 rival. Purolator International was founded in

Jericho, New York} in 1998. Purolator International operates in the Freight Services

industry. Compared to FedEx, Purolator International generates $64B less

revenue.

pg. 16
TARGET MARKET
FedEx is working in the business and corporate sector but it also focuses on the

domestic customers, who send their parcels and packages to their dear ones

living in other countries. The company should know their requirements and they

should meet their demand. In the emerging economies, the corporate sector

becomes more vibrant and active.

There are two broad groups of variables used to segment customer markets.

One group of variables is descriptive characteristics which includes geographic,

demographic, and psychographic.

FedEx’s market consists of consumers and business users who prefer to use a

single service for all of their shipping needs. In some circumstances more than one

variable can be used to segment a particular market. Variables FedEx should

target would fall in the categories of income, education, age and social class. A

combination of income, occupation, education, possessions and ethnic group

provides a measure of an individual’s socio-economic status.

Using these various variables helps FedEx to target its chosen segments more

effectively.

pg. 17
MARKET POSITIONING
FedEx is adopted the most effective marketing strategy, which is suitable for the

corporate and business sector. The company looks for the needs of its clients and

the domestic clients need to send their packages to the families and dear ones

and they need special attention. In the corporate sector, the documents and the

packages are sent to the clients or small packages, which can be delivered to

them in short time.

Since FedEx serve customers from different segments, therefore, it uses

differentiated targeting strategies. It uses price based positioning strategies

to target the specific segment of the customer with their valued services.

In the year 2000, FedEx unveiled three important strategic initiatives designed to

strengthen its competitive position and to offer new and more robust solutions for

customers worldwide. The extended FedEx brand name to three subsidiaries and

to the holding company, previously named FDX Corp. They provided a single point

of access to customers for sales, customer service, billing, and automation systems.

They also invented a new low-cost residential delivery service.

pg. 18
MARKETING STRATEGIES

ü To be the fastest service provider company in the courier delivery

companies.

ü To maintain the logistics and operations of the company smooth and

workable to earn big profits.

ü To use technological improvements in enhancing the system for clients to

track their orders at any time and place.

ü Making the services smooth and comfortable for clients that they pay higher

prices happily for such fine courier services.

ü To differentiate the standards of quality from their competitor companies to

raise the level of services for the comfort of its clients.

ü By providing superior services, a strong customer base should be

maintained for the company which keeps on increasing day by day.

ü Modernising air fleet: Modernising its Aircraft fleet is one of the competitive

advantages that FedEx have gained which is helping it to reduce its

operational cost, structural cost, reduce fuel cost, and enhance the efficiency

of its worldwide network. It has acquired 60 Boeing 757, 767-300F aircraft

between years 2014 to 2016.

pg. 19
ü Focus on retail accounts: With the advent of technology,

changing lifestyle and growth in the eCommerce market, FedEx has shifted

its focus to small to medium size customer base, avoid less profitable

accounts so as to get high ROA( return on assets ) and increase its profit.

ü SBU’s working collectively: Its Strategic business units operate

independently in the market but work collectively to support each other in

the meta-market which is helping the company in being competitively ahead

of its competitors.

a) Value proposition
ü Fed Ex’s value proposition - give customer’s peace-of-mind and

confidence by delivering the package where you need it AND when you

need it (on-time).

pg. 20
ü Fed Ex’s value proposition is fast reliable delivery of time-sensitive

packages.

ü “Delivery of time-sensitive documents and parcels at a fraction of the

cost that would be incurred by late or non-delivery…”

Just twenty words are sufficient to paraphrase the essence of FedEx’s

original value propositions. Yet this short description is remarkably potent.

ü FedEx has the value

proposition that it doesn’t just

offer fast delivery; it offers

guaranteed delivery by a

specific time. This guarantee

makes life much easier for its customers.

ü Their solutions connect people and possibilities.

Connecting people with goods, services and ideas creates opportunities

and improves lives. At FedEx, it is believed that a connected world is a

better world, and that belief guides everything they do.

ü A brand should strive to own a word in the mind of the customer. A word

that nobody else owns." For FedEx, that word was "overnight" delivery.

Through brilliantly executed strategies focusing on the benefits customers

pg. 21
 receive when choosing FedEx, they have positioned themselves as a smart

choice when it comes to air cargo.

ü Today the brand presents a new global campaign under the name

of "FedEx delivers to a changing world", an online platform experience

with the purpose of generating interaction between users and data from

The Economist Intelligence Unit.

b) Repositioning in the past

FedEx – Name and Logo Rebranding

In 1994, Federal Express hired Landor Associates to redesign its logo with a

fundamental requirement mandated by Federal Express CEO Fred Smith to make

sure that the Federal Express truck five blocks away was visible and recognizable

when he stood on a street corner. The rebranding result included a new logo and

a shortened brand name — FedEx.

pg. 22
The new FedEx logo wasn’t designed overnight. According to Lindon Leader, the

primary designer of the FedEx logo, the company invested in a year of global

focus groups and brand strategy research and planning. It was during the research

and strategy process that the decision was made to shorten the name to FedEx,

which research indicated was a better communicator of speed. Over 200 logo

designs later, the new FedEx logo design was born.

The FedEx logo is considered one of the best by design and branding experts. It’s

simple, clean, bold, and flexible. The image to the right shows some of the many

ways that the logo can be used to identify FedEx’s varied lines of business with a

simple colour change that can be applied to create a comprehensive brand

architecture and consistent identity.

Today, the FedEx logo is nearly 20 years old, and it’s still just as good as it was in

1994.

pg. 23
c) Nature of offering

FedEx Corp. provides customers and businesses worldwide with a broad portfolio

of transportation, e-commerce and business services. With annual revenues of $65

billion, the company offers integrated business solutions through operating

companies competing collectively and managed collaboratively, under the

respected FedEx brand.

pg. 24
Consistently ranked among the world's most admired and trusted employers,

FedEx inspires its more than 425,000 team members to remain focused on safety,

the highest ethical and professional standards and the needs of their customers

and communities.

FedEx in India

Our infrastructure gives your business access to customers and suppliers in India.

FedEx has 16 clearance facilities in India, plus the industry’s greatest number of all-

cargo flights — not only from the U.S. to India, but also from India to the U.S.,

Europe and Asia.

Within India, FedEx Priority Overnight® and FedEx Standard Overnight® services

have expanded to more than 330 domestic destinations. FedEx India provides a

range of convenient services, including collect on delivery, delivery on invoice

acceptance, freight on value, freight to collect and Hold at FedEx Location.

FedEx import services into India provide door-to-door, customs-cleared and time-

definite delivery, giving consignees in India greater choice and control on their

shipments. These services are available from more than 220 countries and

territories worldwide — the most by any import service provider in India — with a

transit time typically of 2 to 3 business days.

pg. 25
pg. 26
Services offered by FedEx
Ø FedEx provides a broad portfolio of transportation, e-commerce and

business services through several operating units. These units include

FedEx Express, TNT Express, FedEx Ground, FedEx Freight, and FedEx

Services. The FedEx Express segment also includes FedEx Trade Networks,

Inc., which provides international trade services, specializing in customs

brokerage and global ocean and air freight forwarding, and FedEx Cross

Border, which provides e-commerce technologies that enable international

transactions for e-tailors and consumers worldwide.

ü TNT Express is an international express transportation, small-package

ground delivery, and freight transportation company.

ü FedEx Ground is a provider of small-package ground delivery

services. The FedEx Ground segment also includes

ü FedEx Supply Chain, which provides integrated supply chain

management solutions.

ü FedEx Freight is a provider of less-than-truckload freight services

across all lengths of haul, offering: FedEx Freight Priority, when

speed is critical to meet a customer’s supply chain needs; and FedEx

Freight Economy, when a customer can trade time for cost savings.

pg. 27
 ü FedEx Services provides sales, marketing, information technology,

communications, customer service, technical support, billing, and

collections services for U.S. customers of the major business units

and certain back-office functions that support FedEx other

companies. The FedEx Services segment includes FedEx Office and

Print Services, Inc., which provides document and business services

and retail access to package transportation businesses.

Ø FedEx can now be counted on for reliable delivery of the domestic

consignments. Designed specifically to meet the needs of the Indian

domestic market, these air and ground services have been introduced to

address the non-commercial and commercial shipping requirements.

FedEx Priority Overnight™: FedEx Standard Overnight™:

An intra-India door-to-door express An intra-India door-to-door express

delivery service for all your delivery service for all your

documents and non- commercial consignments, next

commercial(1) consignments, next business day to select destinations

business day to select destinations and typically 2 – 3 business days to

and typically 2 – 3 business days to other destinations.

other destinations.

pg. 28
FedEx Economy™: Ancillary Services:

An intra-India, door-to-door day We offer a range of value added

definite express delivery service for ancillary services such as:

your ground consignments. • Collect on Delivery (COD)

• Delivery on Invoice

Acceptance (DIA)

• Freight on Value (FOV)

• Freight to Collect (FTC)

• Hold at FedEx Location (HAL)

• Heavy Weight Shipping

FedEx’s Position in the Courier Marketplace

The company provides a variety of services to customers, handling nearly 2.4

million packages a day. FedEx provides around the clock services to its customers

all over the world in Asia, Europe, the Middle East, Africa, Latin America, and

North America.

It has its own fleet of airplanes and trucks for shipping purposes, all branded with

the FedEx logo. FedEx offers a superior distribution channel in terms of the

sender’s ability to track the package as soon as it leaves a location.

pg. 29
FedEx Pricing
Generally, FedEx has adopted a premium pricing strategy for the quality services

given customers. Although freight rates have shown ample increases, the

company has kept its rates fairly consistent. This is due to the economy of scale

inherent in large shipments.

In some countries, it has kept flexible pricing, such as in China. The company

employs this strategy in order to establish itself in new marketplaces. Prices will

vary according to the type of service used.

FedEx Promotions
FedEx has used various slogans to advertise the brand and popularize its services.

Some of its slogans that became popular are “Our Most Important Package is

Yours”, “Be Absolutely Sure”, “Relax, it’s FedEx”, and “Brown Bailout”. Its present

slogan is “The World On Time”.

FedEx has used sports as a promotional platform. In 1989, the company signed a

deal with the Orange Bowl and became its title sponsor. It also sponsored the

basketball team FedEx Forum and The Heineken Cup for Rugby. In 2007, FedEx

became a title sponsor for PGA Tour. FedEx also contracted to sponsor NASCAR

as well.

As of 2012, FedEx has 49% of the market for shipping services in the United States

pg. 30
Direct & Indirect channels company has built to
serve the markets

pg. 31
Internet and wireless technologies deployed
Since delivering its first packages overnight to 25 U.S. cities in 1973, FedEx has

grown into a multibillion-dollar corporation with air and ground forces that handle

upwards of 6 million packages per day. Key to the company's success has been its

use of network technology - particularly wireless - that enables FedEx to keep

customers informed about package whereabouts and employees up to date on

information they need to speed package pickup and delivery.

In recent years, they have switched to standards-based technologies such as

802.11b wireless LANs, Bluetooth short-range wireless links and general packet

radio service (GPRS) cellular networks that provide lower development and

maintenance costs, greater throughput and security, and lower acquisition and

deployment costs.

Another thing done for customers is that they will find free Wi-Fi service provided

through AT&T at more than 1,800+ FedEx Office© locations throughout the U.S.

These hotspots will help busy professionals connect to the Internet from a location

that is convenient to working on the go and offers access to business support

services.

Free Wi-Fi access is a significant resource for mobile professionals and small

businesses, many of which already rely on FedEx Office, for printing and shipping

services each day.

pg. 32
 • Easy to access to start a new FedEx Office order, check current order status

and more

• Fast, reliable access to the Internet, email and networks

• Easy connection process

• 24/7/365 customer support

Marketing communication campaigns.

Use of social media in marketing communication.

FedEx began its trip down the social media path two years ago and has begun a

phase of rapid growth. From multiple blogs to multiple service-oriented Twitter

feeds and even community sponsorship, FedEx has made social media a priority.

Our specific strategy for the FedEx Citizenship blog is to:

• Engage in a conversation with key audiences about citizenship

• Introduce transparency into how, why and what FedEx does in citizenship areas

• Empower stakeholders to help tell our story for us

• Build equity and association for FedEx against citizenship platforms

The Citizenship blog (blog.fedex.com) covers the areas where we focus our

corporate citizenship efforts: Community & Disaster Relief, Economics & Access,

Environment & Efficiency and People & Workplace.

pg. 33
On Twitter, @fedexnews and @fedexblog are used to broadcast new posts from the

FedEx Newsroom and FedEx blog. These aren't engagement accounts, they just

alert followers of new content on the channels and to discuss corporate

developments and activities.

The FedEx Multimedia Centre features our people, operations and activities. The

platform is evolution of the FedEx storytelling channel to reach multiple audiences

and provides a media distribution point to be leveraged in other channels.

Communication Channels deployed and

Communication Campaigns ran

FedEx rolled out a multichannel campaign as part of the company's new strategy

to integrate its brand messaging and creative across channels. The effort includes

online and offline channels with the unified message, “We understand.”

All creative calls consumers to the initiative's microsite. The TV ads and the site

launched on January 1. Search and display ads, social media, online video, direct

mail and e-mail will debut January 11. The campaign ran throughout the year

2010.

They made a conscious strategic shift to integrate as many components of the

elements as they can, be it television or online. They tried to take those sometimes-

pg. 34
disparate channels and mix them together, since consumers were in all of those

places.

2. Diverse Appeal, FedEx’s custom publication covering the company’s diversity

efforts, has been a staple of the delivery services giant since 1997. For years, the

quarterly magazine was produced by the human-resources department and

distributed to 18,000 FedEx employees across the U.S. The communications team

proceeded to produce a comprehensive redesign of the publication, with more

colour, improved paper quality and sharper editorial.

Yet the magazine makeover was just one aspect of a multipronged PR program

designed to enhance FedEx’s messaging when it comes to diversity.

The overall objectives of the FedEx diversity communication campaign included:

• Effectively communicating the FedEx commitment to diversity and inclusion to

both internal and external audiences.

• Raising awareness among all audiences about FedEx programs, initiatives and

outreach focused on diversity.

• Providing sales executives and other stakeholders with useful narratives and

statistics on diversity in order to enhance RFPs for potential business.

pg. 35
Company’s efforts in organizing and participating
in various events and trade exhibitions, etc.

The FedEx brand name is symbolic of outstanding service, reliability and speed.

Emphasis is placed on promoting and protecting the FedEx brand, one of their

most important assets. As a result, FedEx is one of the most widely recognized

brands in the world. In addition to television, print and digital advertising, they

promote the FedEx brand through corporate sponsorships and special events.

Depending on the size and type of business you have, getting to know your

customers can be challenging — but doing so is critical. Here are some ideas for

connecting with customers, both new and old:

• Host events that allow you to mix and mingle. On-site events, learning

sessions, new product reveals and special “customer-only” gatherings allow

you to interact with your clients in a whole new way. Take this as an

opportunity to ask questions, learn about their likes, wants, and needs — and

take notes about how you can best serve them

• Get social — online. If you have a Facebook page, use it to find out what your

customers want. You might be surprised at the responses you get when you

ask your customers and prospects what items and services they’d like you to

pg. 36
 provide. On Facebook and Twitter, you have the opportunity to take your

questions directly to your audience in a less formal manner.

• If you don’t have a place to meet, create one. Elsewhere in social media, you

can connect in unique ways. Set up a Google+ Hangout and chat live with

customers and prospects about a specific topic — or just spend some time

getting to know each other better. (Take good notes.) Or you could organize

a contest on photo-sharing sites like Instagram or Pinterest where people can

upload their images and vote on winners in specific categories.

Strengthen the relationship by participating in activities in which you share interests

and keep listening — always.

• Support/create events your customers will love. If possible, set up or

participate in public events that attract your customers and prospects, or work

with your chamber of commerce to develop an event that appeals to them. It

could boost your image among your clients and help increase your status in

the community. Plus, you can get to know your clients on a whole new level.

• Give them an opportunity to share. Whether you have an anonymous

suggestion box, a blog with comments enabled, or a “customers’ corner”

section on your website where clients can offer feedback, give your

customers a “safe” way to share their ideas and experiences and you just

might find new ways to meet their needs.

pg. 37
Corporate brand building / CSR exercise
ü FedEx built a commitment to CSR into the business from the very beginning—

dedicating itself not just to moving packages from A to B, but also connecting

people, opening them up to the global marketplace to improve the standard

of living, and building social capital across the world. It’s credibility you can’t

generate by simply making a donation. You have to work at this kind of

reputation building. It needs to radiate from the heart of who you are as a

business, and you need employees to believe in it.

ü The most enduring way to build corporate reputation is to be on the street,

every day, in a given community—to be local even if you’re headquartered on

the other side of the world. It takes more than sight for a company to find its

calling in the world of corporate social responsibility—it takes leaders

with vision to drive a business toward success and sustainability, and, in the

process, create a better world.

ü The FedEx sponsorship of Orbis is just one example of corporate social

responsibility (CSR) Orbis, a non-profit organization dedicated to treating

and preventing blindness—an organization that FedEx supports.

ü FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), and Vital Voices

Global Partnership, a leading international non-governmental organization

training and mentoring emerging women leaders, announce the launch of a

joint alliance, “FedEx & Vital Voices Building the Future: Educating Women,
pg. 38
 Harnessing Potential,” focusing on access to business education and training

for businesswomen in the Latin American region. The alliance will foster

connections that empower women and businesses to strengthen their

capacity and to expand future prospects for growth. Vital Voices Global

Partnership is a leading non-governmental organization that identifies,

invests in and brings visibility to extraordinary women around the world by

unleashing their leadership potential to transform lives and accelerate peace

and prosperity in their communities. Founded by U.S. Secretary of State

Hillary Clinton in 1997, the organization trains and mentors women leaders

as agents of transformative change in economic development, human rights

and political participation. The Vital Voices Global Leadership Network

includes more than 10,000 leaders representing 144 countries who have

trained and mentored 500,000 additional women and girls in their

communities.

ü Financial Contributions: Cash contributions to U.S.-based 501(c)(3)

organizations or Canadian-based organizations with Charitable Business

Number Registration (BNR)

ü In-Kind Contributions: Donated shipping to U.S.-based 501(c)(3)

organizations or Canadian-based organizations with Charitable Business

Number Registration (BNR).

pg. 39
ü FedEx will invest more than $200 million in more than 200 communities by

2020 to create opportunities and deliver positive change around the world

through FedEx Cares, its new global giving platform. FedEx Cares will focus

on the following five pillars of strategic investment:

Ø Delivering for Good

Lending our global network and unparalleled logistics expertise to

organizations with mission-critical needs in times of disaster and to help

communities heal, learn and thrive.

Ø Sustainable Transportation

Scaling existing solutions and investing in new ideas to improve

mobility, reduce congestion, and decrease pollution in communities

around the world.

Ø Employment Pathways

Connecting teens and young adults in underserved populations to skills

and career training that lead to greater access to jobs and opportunity,

especially in the fields of technology and logistics.

Ø Road Safety

Leveraging FedEx’s safety expertise to reduce road crash fatalities by

improving road conditions and educating drivers and pedestrians –

especially child pedestrians – around the world.

pg. 40
 Ø Global Entrepreneurship

Advancing women and minority-owned small businesses globally

through training and increased access to resources, capital and new

markets.

Alliances
Management at hpshopping.com turned to FedEx to help them strategize and

quickly implement the new Internet sales channel with minimal resource utilization

and risk. HPshopping.com asked FedEx to develop a comprehensive solution that

would manage the entire process — from order management to order fulfilment.

Why HP Chose FedEx HP wanted a provider with industry leading experience and

capabilities, including:

• Proven expertise in information technology.

• Access to U.S. households through an extensive distribution network.

• Experience in electronic commerce and supply chain management.

HP wanted a provider that could do it all:

• Analyse business processes, assess opportunities, and recommend a solution.

• Integrate multiple solutions from various alliance partners with HP business

processes to meet customer needs.

pg. 41
• Oversee the supply chain and information management components of the

solution, thus freeing HP to focus on strengthening customer relationships.

• Quickly deliver the solution to market.

FedEx and Tennis

At FedEx they understand the sort of commitment

that goes into the delivery of a world-class performance, because they do it every

day for businesses around the world. And it’s this synergy that makes them so

proud to be global sponsor and official carrier of the ATP World Tour. They’ve

lived to deliver for over 40 years and are one of the pillars on which they rely when

serving up world-class tennis on a global scale.

FedEx strengthens its domestic ground and supply chain services in India
following successful integration
FedEx Express recently announced the successful integration of its acquired AFL

and UFL businesses in India. Since the acquisition in 2011, FedEx has focused on

strengthening its domestic transportation and supply chain capabilities to meet

the demands of Indian businesses. FedEx now offers end-to-end logistics

solutions, including international and domestic air express services, domestic

ground services, warehousing and supply chain management.

pg. 42
With the integration complete, FedEx has:

• Expanded its service coverage from 4,000 postal codes to over 19,000 in India

• Strengthened its ground transportation service: it now has a fleet of over 1,000

trucks connecting cities and towns across India, leading technology and

competitive pricing

• Increased its office and hub space capacity from 300,000 to over a million

square feet

• Added inventory management services via more than 900,000 square feet of

warehousing space across the country/territory

Now, customers using FedEx domestic ground services can also benefit from

shipping applications that enable them to create waybills for single or multi-piece

shipments. In addition, they can monitor incoming and outgoing packages, get

status notifications and near real-time tracking. High volume businesses such as

eCommerce are supported with robust web integration for faster processing.

Industries with complex supply chain requirements (particularly hi-tech, retail,

medical equipment or consumer durables) will gain a competitive advantage by

using FedEx domestic ground and supply chain services.

pg. 43
Development (new products, research) projects

Recent Innovations-

New feeder aircraft innovations will make air freight shipping faster and easier to

smaller markets. Delivering freight to smaller markets is challenging: Current small

aircraft aren’t equipped for palletized freight. FedEx worked closely with

manufacturers to develop small planes with larger doors and new interior

configurations to accommodate freight containers and pallets. Learn more about

the new Cessna and ATR planes and an innovative pilot training program they’re

fuelling.

Design thinking is a proven concept that, at its core, is about discovering needs

and fulfilling them using rapid prototyping and testing. FedEx uses a design-

thinking methodology called Customer-Driven Design to identify unmet customer

needs and bring solutions to market faster. Read more about design thinking and

CDD in Access magazine.

Blockchain holds significant potential for advancing supply chain logistics (watch

FedEx CIO Rob Carter explain). FedEx is a charter member in the Blockchain in

Transportation Alliance as well as the Blockchain Research Institute. And FedEx

Freight has a pilot project under way using blockchain to share shipment

information among suppliers, FedEx and retailers.

pg. 44
Vehicle autonomy is about more than driverless cars. Autonomous tuggers

transport bulky packages through FedEx Ground hub facilities — see them in action.

And FedEx Freight uses elements of autonomy technology — telematics, collision

mitigation, lane departure and roll stability — to make roads and drivers safer.

Robots work alongside humans at FedEx, taking care of repetitive, simple tasks so

team members can focus on high-value, skilled work. For example, a robot used by

FedEx TechConnect at FedEx Office in Manhattan navigates the office, transporting

equipment in need of repair. See this innovation and more in our Tech Minute video

series.

Technological Innovation at FedEx

§ Federal Express was among the first express transportation companies to

realize the benefits of technology. As early as 1978, just five years after it

began operations, the company pioneered the first automated customer

service centre.

§ To provide real-time package tracking for each shipment, FedEx uses one

of the world's largest computer and telecommunications networks. The

company's couriers operate Super Tracker® hand-held computers, to record

the transit of shipments through the FedEx integrated network.

pg. 45
§ FedEx's use of technology focuses on the customer, rather than merely on

remaining competitive. With FedEx, businesses can determine the status of

their packages at all possible locations along the delivery route in real time.

Customers can track packages in three ways: via the FedEx Web site on the

Internet, by using FedEx Ship Manager at fedex.com, or FedEx

WorldTM Shipping Software.

§ To provide the time-definite service customers have come to rely on, FedEx

is continually developing innovative technologies.

The following examples illustrate why FedEx remains the leader in the express

cargo transportation industry:

§ COSMOS (Customer Operations Service Master On-line System) is a

computerized package tracking system that monitors every phase of the

delivery cycle at Federal Express. FedEx employees constantly input

information into COSMOS by several means.

§ Customer service representatives enter shipping information into COSMOS

through computer terminals, alerting the dispatcher closest to the pick-up or

delivery area. Dispatchers relay pick-up and delivery information to the

courier via DADS, small digitally assisted dispatch computer systems found

in all courier vans.

§ Hand-held computers, called Super Trackers, are used to scan the progress

of the package an average of 5 times from pick-up to delivery. Couriers

pg. 46
 simply scan the bar code on every waybill with their Super Tracker, at every

stage of the delivery process. Scans are performed at time of pick-up, on

arrival at the origin station, at the final station, when placed on the van of the

courier's route and at delivery. Super Trackers retain and transmit package

information such as destination, routing instructions and the type of service

requested.

§ Once a courier returns to the van, the information is downloaded from the

Super Tracker to DADS, which updates the package location in the COSMOS

system. Thus, a customer can find out at any time exactly where their package

is and when they can expect delivery, whether they call Customer Service or

track the package themselves on the FedEx Web site or using FedEx Ship

software.

§ Constant tracking allows Federal Express to maintain positive control over

shipments every step of the way. It is so integral a part of the system that

FedEx promises to deliver all packages within one minute of the delivery

commitment or the customer does not pay. The company also offers a

second guarantee that is unique to the industry: if a customer cannot be told

exactly where their package is, within 30 minutes of their inquiry, FedEx will

pay the transportation costs of the package.

pg. 47
§ From COSMOS and tracking to service guarantees, the Federal Express

network is designed to provide 100% customer satisfaction.

§ Command and Control is the satellite to ground-level operations system,

based at the Memphis Super Hub, that enables FedEx to deliver packages by

the fastest, safest and surest route, in any weather condition. It is a relational

database that coordinates FedEx logistics worldwide. In fact, The system uses

satellite and computer communications technology to monitor routing and

traffic information in real time and acts as a weather management tool.

§ When weather may disrupt on-time delivery, FedEx uses NASA weather data

and artificial intelligence to plot alternative routes. The system provides the

three best alternative transportation options for a shipment, which allows the

company to select the fastest, safest and most cost-effective route.

§ By connecting to over 750 customer service workstations, over 500 aircraft

and traffic hubs around the world, the Command and Control system ensures

the smooth coordination of inbound and outbound aircraft and thousands of

delivery vehicles.

§ Although invisible to the customer's eye, Command and Control is one of the

company's most important technological developments, allowing FedEx to

deliver packages on time, every time.

§ In May 1997, FedEx launched the APEC Tariff Database, a new, Internet-

based customs and trade database designed to expedite global commerce.

pg. 48
 The tariff database is available to anyone with access to the Internet 24 hours

a day, seven days a week.

Providing the accurate and efficient service customers demand is crucial to the

success of the express transportation business. To carry on its tradition of increasing

customer convenience and satisfaction, FedEx will continue to pursue

improvements to the technology used in its call centres.

Pricing strategies adopted by FedEx

FedEx used to charge for a package simply by measuring its weight. There were

some items like towels, shoes, tissues which were light in weight but occupy a lot

of space during transportation. Hence this used to incur costs to the company and

the margin for such products was low and thus fetch lower revenues due to their

light weight. Hence in 2015, FedEx revised this strategy to dimensional weight

pricing to all their ground packages. Thus they charged according to length,

breadth and depth of the packages instead of simply using weight as a measure.

This helped FedEx increase revenues and margins. This is the basic marketing mix

pricing strategy of FedEx. This strategy allowed FedEx to recover all its operating

costs.

pg. 49
A new pricing strategy at FedEx (FDX +0.7%) became effective in 2015 with "dim

weight pricing" aimed at forcing retailers to pack shipments more efficiently or pay

a higher rate.

The analyst has a $210 price target on shares.

The purpose of moving to dim weights is to change behaviour and standards

around shipping. Essentially to become more mindful of wasted space and

materials, which we all benefit from. The change (strategic) will force even the big

players to transition.

Why ship with FedEx

They’re constantly finding new ways to do more for their customers, delivering

advantages like these (to name just a few):

• Time-definite delivery you can count on: they back FedEx international

shipments with a money-back guarantee. It applies even if they miss their

quoted delivery time by just 60 seconds.1

• Global coverage: they operate in more than 220 countries and territories

worldwide.

• Peace of mind: their unrivalled customs clearance expertise takes the

worry away.

pg. 50
Environmental Sustainability
Ø FedEx is committed to providing global connections while minimizing their

environmental impact. They have integrated responsible environmental

practices into their daily operations, and continuously work toward goals

that challenge them to increase efficiency and reduce waste and emissions.

Ø FedEx has set ambitious goals to reduce our footprint where we have the

greatest environmental impact:

ü Reduce aircraft emissions 30 percent by 2020 on an emissions per

available-ton-mile basis.

ü Increase FedEx Express vehicle efficiency by 30 percent by 2020

ü Get 30 percent of our jet fuel from alternative fuels by 2030

ü Expand on-site renewable energy generation and procurement of

renewable energy credits.

Ø In EMEA their accomplishments include the following:

Air and Electrical Vehicle Fleet:

• FedEx currently operates 118 all-electric trucks and 364 commercial hybrid

trucks. Zero-emission electric delivery vehicles serve FedEx routes in

London and five in Paris. FedEx has recently announced that it will be

adding 87 all-electric trucks to its green fleet bringing its all-electric global

vehicle count to 130.

pg. 51
• Seven Electric assisted tricycles operate in the downtown districts of Paris

delivering shipments to the urban city centre in a sustainable fashion.

• The company has begun operating Boeing 777F aircraft, which use 18

percent less fuel than the MD11 freighters and provide greater payload

capacity.

Package and Services:

• All FedEx branded envelopes are now carbon neutral: FedEx Express works

with a not-for-profit offset provider that helps to reduce, replace, and

neutralize carbon by investing in offsets for every envelope shipment at no

cost to customers.

• The automation tool FedEx Electronic Trade Documents (ETD) enables

customers to upload their international shipment documentation

electronically. FedEx ETD reduces the need to print and sign multiple

copies of trade documents, saving customers time and money and helping

them reduce their environmental footprint.

• The majority of FedEx packaging is both recyclable and contains recycled

materials. For example, the iconic FedEx envelope is composed of 100

percent recycled paperboard.

pg. 52
Facilities

• At its Cologne hub, the company operates a solar power system that has

the capacity to produce more than 800,000 kilowatt hours of electricity

each year – equivalent to the demand of 230 households with three

persons. This project is FedEx Express largest solar-power roof-top

installation in terms of area on roof space of approximately 16,000 m2.

• FedEx European hub at Paris received ISO 14001 certification in 2011,

complementing the 50 FedEx UK facilities which have been awarded the

same certification.

• An energy efficient distribution centre in Antwerp provides a reduction of

energy consumption by more than 40% and CO2 emissions by 60% each

year.

• A distribution centre in Machelen, Belgium contains solar panels which

generate 144,000 kilowatt hours per year equivalent to the electricity needs

of thirty households on an annual basis.

Ø EarthSmart is FedEx

commitment to environmental

sustainability. The program

bundles initiatives that offer tangible business and environmental benefits.

pg. 53
 EarthSmart covers the span of FedEx impact: business solutions, workplace

culture and community outreach. Projects must meet high, measurable

standards to qualify EarthSmart designation.

Through EarthSmart FedEx strives to pioneer smart, earth-friendly

innovation that will help protect the vital resources of our planet. We hope

the program’s ultimate impact will be to provide ground-breaking

environmental stewardship that can be shared with others.

Awards and Recognition

§ FedEx was recognized among the Top 20 commercial solar power users

in the U.S. by the Solar Energy Industries Association in September 2012

§ No. 2 Ranking in Air Transport World's Eco-Airline of the Year Awards

2012

§ Recognized in the prestigious Maple croft Climate Innovation Leaders’

Index 2012

§ In February 2011, FedEx won the Dubai Award for Sustainable Transport
(DAST) sponsored by the Dubai government Roads and Transport
Authority (RTA) in the “Environmental Protection” category

§ FedEx ranks #122 in Newsweek’s 2011 Top 500 Greenest Companies

§ Included in the top 50 ranking on the Boston College-Reputation

Institute 2011 CSR Index, the fourth consecutive year maintaining this

recognition

pg. 54
pg. 55