FedEx Corporation was established in Little Rock, Arkansas in 1971 as Federal Express Corporation by FedEx W. Smith. FedEx Corporation is an American multinational that mainly focuses on transportation, business, and e-commerce services.
FedEx mainly handles approx. 19 million packages. The company owns 670 airplanes which makes FedEx’s cargo fleet the largest in the world.
Brand Strengths are often related to brand equity. Brand Strengths is mainly a value provided by the company and offer the best quality in the market.
Now, let us read about the Brand Strengths of “FedEx”
- FedEx has the brand value of approx. 24.2 billion.
- FedEx offers a wide range of services to its international and domestic customers to ensure that all the potential customers in market can turn to the company to fulfill the needs.
- FedEx mainly operates 220 countries across the world with its 370 service locations, 13 Air Express Hub, and 1950 operational express stations.
Weaknesses of FedEx are:
- Brand Customer service is one of the weaknesses of the company. There have been a lot of complaints against their delivery.
- FedEx is reliable in US markets for revenue. Depending on any one thing for the majority of the revenue is risky.
- FedEx has the opportunity to take full advantage of the high demand for the delivery services in the e-commerce sector.
- Demand for the courier is increasing mainly in the emerging markets in Africa, Asia and America.
- For FedEx, Unstable fuel prices can be a threat.
- FedEx is losing its market share to old and new players as there is the stiff competition in the market and if the competition increases it will be the threat to the company.
- Various trade tensions between the China and US, sanctions and the trade control can have various adverse effects on the FedEx international transportation business.
What exactly Business Strategy is??
The answer is: Business strategy is the clear set of plans, goals, and actions that outlines how the company will compete in the market.
Now, let us read about the Business Strategy of “FedEx”
FedEx has developed a unique business strategy as they are committed to investing in the technologies to optimize their long-term earnings, performance, and cash flows. The company operates independently by focusing on the network to meet their customer needs, they work together to maintain or manage a loyal relationship with the customers.
FedEx mainly focused on the 4 key areas:
- Operational Excellence
- International Profitability
- Quality of Revenue
Through its global transportation and technology network, FedEx has contributed and benefited from the development of e-commerce.
FedEx is using operational excellence technology in various ways to improve the efficiency of the entire FedEx company.
Through the FedEx aircraft fleet modernization plan, the merger of TNT express and FedEx express, the company is establishing a foundation of increasing international profitability.
Quality of Revenue:
FedEx company is working on improving revenue quality by focusing more on small and medium-sized businesses.
Marketing mix mainly refers to the set of tactics or actions that a company uses to promote its products or brand in the market.
Let us study the Marketing mix of “FedEx”:
FedEx uses 4P’s (Product, Promotion, Price, and Place) of the marketing mix to increase their brand marketing.
- FedEx Product strategy
- FedEx Promotion strategy
- FedEx Price strategy
- FedEx Place strategy
FedEx Product Strategy:
FedEx offers a wide range of services, including shipping, tracking, Managing your shipments.
In each of its services, various offerings are offered by FedEx to its customers. The company also has a good market share in the freight segment.
FedEx Promotion Strategy:
FedEx has used a variety of channels to reach its potential customers. In this, outdoor hoardings are used frequently. FedEx has used various slogans to advertise the brand.
Some popular FedEx phrases are “Be absolutely sure”, “Relax, it’s FedEx”, “The way the world works”.
FedEx’s present slogan is “what we deliver by delivering”.
FedEx Price Strategy:
FedEx has adopted a premium pricing strategy for the services given to the customers. In some countries, FedEx kept flexible pricing, such as in China. The FedEx Company used this strategy in order to establish itself in various new marketplaces.
FedEx prices vary according to the type of services used.
FedEx Place Strategy:
FedEx is a leading courier brand providing services in more than 220 countries. FedEx also provides internet facilities, for any bookings.
With FedEx services, one can easily track it until it reaches the destination.
With the growing competition, FedEx wants a strong media presence to have a larger impact on the audience.
Let us study the “Social Media Presence of the FedEx”:
As FedEx gives importance to its services, it shows that they are friendly in all services through their various posts.
On Instagram, FedEx has 230k followers. On Instagram, FedEx posts have a great impact on customer relationships.
On Twitter, FedEx has 319k followers. FedEx shows their way of services eve in the pandemic period. FedEx used its Twitter account to share all about this.
UPS and DHL are the two main competitors of FedEx in the market.
UPS (United Parcel Service) include freight-based trucking operation, cargo airline, and retail-based packing and shipping centers. UPS’s main business is the timely delivery of courier services worldwide.
DHL is mainly a part of Deutsche Post DHL. DHL Company is mainly focused on offshore and inter-continental deliveries. It has to expand a large amount in various nations to expand its service and because of its good financial conditions; DHL is considered as one of the top FedEx competitors.
Customer Pain Points:
According to the customers, there are several pain points:
- Poor customer service.
- Brand communication seems to be more one way.
Marketing campaigns are part of marketing strategy and these campaigns are useful when it comes to increasing its popularity to the customers.
Advertising campaigns are mostly used by FedEx to grasp its knowledge.
Let us discuss some successful marketing campaigns of FedEx:
Ally and Gargano created the “Fast Talker Campaign” for FedEx in 1981. This campaign featured John Moschitta’srapid fire, no-stop speaking about the fast-paced business world. Moschitta’s FedEx shipping bit has been considered among the most effective campaigns in the history of advertising. This ad is considered the most award-winning commercial in advertising and earned six Clio-awards, including the best performance for Moschitta.
Take the Drama out for Delivery:
FedEx has launched a new integrated marketing campaign to highlight its capabilities in shipping between markets of Asia. The core concept of the campaign is a response to an observation that in today’s ever-demanding world, every delivery is important for the customers. This campaign uses both traditional and social media to increase awareness.
FedEx is one of the successful brands. Here, we looked at the competitors who are giving very tough competition to FedEx.
FedEx should concentrate on its customer reviews because after this, the brand will have a strong media presence as compared to its various competitors.
Hope you find the article informative, if you have any queries related to this article, please feel free to as in the comment section.