Good Type Of Course – Name Of Class Essay Example

Type of paper: Essay

Topic: Marketing, Business, Services, Company, Internet, Logistics, Time Management, Customers

Pages: 10

Words: 2750

Published: 2020/09/26

Discussion of the basic needs, supply chain logistics and overview of FedEx Marketing Strategy.

Executive Summary
The purpose of the overview report herein focuses upon FedEx and executes a foundation for analysis regarding its market share positioning and strategy. A brief description of the FedEx position and background shall provide insight and information pertaining to its market/product/service type, in the introduction, and proceed to discuss several aspects. Further aspects in this report note the company’s mission statement, vision, and purpose in order to better ascertain a firm comprehension of its services, corporate climate, and style. By reflecting the attitude FedEx holds towards its customers helps to understand how their motto helps drive its style and success. The main points highlight: (a) the current situation in terms of SMART assessment, (b) planning and marketing objectives, (c) methodology, (d) partnership, (e) logistics and supply chain, (f) SWOT analysis, and (g) recommendations.


The problems in the world of delivery business represent myriad nuances of rising costs, political change, legislative impacts, customer tracking, and how to get packages out on time while maintaining public trust. For delivery service companies, logistics in terms of supply chain management offer peculiar and specific tools that they must pay special attention to. FedEx has established an inviting and secure position in the U.S. and the global landscape, as a wonderfully top company in this sphere. FedEx does not stand alone in the industry, obviously, and services both privately individual customers as well as business-to-business (B2B) clientele. While it may be arguably true that FedEx certainly is competing with other delivery firms, such as the German postal services of international shipper DHL and UPS (United Parcel Service) FedEx cultivates its own brand of operations and marketing strategy.
In terms of background, according to a SWOT analysis report by Datamonitor Marketline FedEx has risen to one of the top robust courier services businesses. FedEx “recorded revenues of $44,287 million during the financial year” ending “May 2013” (Datamonitor, 2010-2013, p. 3). The business marketing report also indicates that FedEx, as one of the very biggest companies of its kind, engages its transportation services out of the home-based office headquarters of the charming Southern belle of Memphis Tennessee. Other service business offerings include logistics solutions, as well as procuring management contracts for freight delivery services. Since the sticky situation of the worldwide economic recession several years ago, FedEx has managed to actually increase its mighty revenue powers between 2012 and 2013. FedEx gained – and remarkably sustained – almost a 4 percent boost in profits. However, in the sometimes crazy-paced modern world of today, no company can take increased revenues for granted and FedEx is no exception. Rising costs in oil, food, transportation, globalization, digitalization in global communications and electronics, all bring issues to the table that require best marketing strategy practices.

FedEx Mission Statement & Vision

As we delve into a review of the FedEx mission goals and vision, it is purely imperative to understand that the company faces literally consist of all ages, ethnicities, across the United States and the world. Their official website displays a collage-like mural of a plethora of employees’ smiling faces. In order to keep them smiling, FedEx holds a straightforward philosophy. The key words advancing its principles and vision entail words like: commitment, belief, promise, and values. The gist of their dedication and motto gives high praises to placing the customer as a top priority in accuracy of their order, strongly treating customer record transactions with the utmost of care, as reported by FEDEX (2015). The motto and FedEx vision does not stop there. Its creed continues with rendering the polite treatment of customer as professional, caring attitude, literally aiming to satisfy a global market-base by keeping its “Purple Promise” of doing “whatever it takes to satisfy our customers” (FEDEX, 2015). Another way FedEx intends to incorporate its vision and mission statement into its operations is by realizing that every, single client is important and that the standards of its values lay at the heart of:
-promoting a diverse workforce
-conducting service diligently, with a positive spirit
-putting customers first and foremost
-thriving upon the invention of innovation, to improve practice and technologies
-preserving integrity of financial management, with ethical honesty, and efficiency
-being the champions of loyalty, and taking responsibility for health and safety in the communities they serve (FEDEX, 2015).

SMART: Creation of Smart Goals and Objectives

The Current Situation
The current situation finds FedEx in a strong and formidable market position, however as aforementioned, new aspects of Internet communications, security issues (internal and external), lawsuits, marketing social media channels, globalization, and the onslaught of mobile web-phone technology has presented the company with marketing challenges and opportunities. While most would agree that the FedEx branding image colors of purple, white and orange depict an instantly winning and firm recognition, to maintain success FedEx reaches for further marketing planning. Their smart goals demand to engage a smooth processing in terms of logistics.

Smart Planning, Objectives, and Goals

In a noble effort towards the fostering and assessing of best marketing practices, goals and planning objectives, the business and marketing acronym SMART spells out the qualities commonly known among management personnel: Specific, Measurable, Attainable, Realistic, and Timely. One good clue regarding FedEx’s fit into the ‘SMART’ framework is that the nature of having a delivery service business, which holds to precision in customer-order information, truly drives the SMART planning protocol. Before arriving at any announcement of recommendations for FedEx marketing strategies, it is important to review marketing planning approaches in the first place. Perreault, Cannon, and McCarthy (2011) argue that no marketing exists or operates in a vacuum because marketplaces are dynamic. As such FedEx, most assuredly to a higher degree than most companies, recognizes the factors of “the blurring speed of technological advances – including an explosion in the use of digital tools by both consumers and businesses” as just a handful of emergent trends facing marketing executives and planners (Perreault, Cannon, & McCarthy, 2011, p. vii). However, the balance of planning development is a delicate game of marketing strategy given the fact that FedEx is engaged in the delivery business.
Word-of-mouth has always traditionally been a great way to pull in new, and faithful, customers from the fan-base of a company’s current clientele. But even that has changed with the innovative communication devices of smartphones, Facebook, Twitter, and cross-generational advertising on the Internet in general. Therefore planning is key. Although FedEx may not always be 100 percent in its ability to foretell the prices of oil, or predict legislation in vehicle emission standards, they can better understand how consumer behavior in marketing works as a strategy. Planning to use a mix of marketing approaches includes being open to innovation, in addition to sticking to what has firmly continued to work in perfectly matching the FedEx clients to keep on top of any new applications that help them.
For example, if FedEx introduces a new mobile-compatible Internet campaign, it may successfully decide to gather new customers from the younger users represented globally. One rule of thumb in generating an effective marketing planning strategy is to include several aspects into the marketing mix. These could spur several goals and focuses of: stressing product/service image of branding, use direct channels such as cost-effective postcards offline for holiday reminders, taking advantage of video social media such as YouTube to deliver cute commercial messages, being aware of competitors, operating within the realistic confines of the economy, and perhaps most importantly narrowing down a specific target base. In the case of FedEx, the methodology of a recently acquired partnership, the nature of a logistics role in supply chain management, and a SWOT analysis help to better integrate an understanding of goals.


A FedEx Partnership
Every successful business marketer operating in the package delivery, and logistical management sector, knows how vital it is to retain or obtain key relationships which reciprocate benefits to each other. FedEx has partnered with an alliance promoting César Castillo Inc. (Castillo) to provide multinational global courier-delivery aspects of services from the Puerto Rico based firm’s warehouse, according to reporter Jaime Santiago (2012). Castillo’s enormous square footage space entails being set within a temperature controlled environment, operating utilizing the latest technological state-of-the-art facilities, with the extra added bonus of the Castillo location functioning as a hub for the entire Caribbean region. FedEx struck gold, so to speak, with entering into this potentially highly strategic, and smart business move. With this business collaboration, FedEx has been able to realize a ‘SMART’ move indeed by a specific, goal which has been attainable, and thereby measurable when tracking results. To complete the acronym, realistic and timely standards can equally be applied to the partnership situation with Castillo.
With the Castillo branch acting as a fulfillment center shipments can easily funnel through the FedEx network, in and out of the Caribbean via the partnership. The Castillo Company is not a new kid on the block, but started out as a locally successful distribution organization selling men’s shirts, writing pens, and plain bicycles out of a home-based setup. Eventually, according to Santiago (2012) growing to realize the sweet gains of an annual sales figure of $177 million and employing nearly 500 people full-time. Additionally, Castillo handles mega-deals connecting to pharmacy retail businesses, while being green-conscious disposing a recycled 50 percent of its waste materials. From a logistics standpoint Castillo represents a good fit for partnership with FedEx since it has had vast experience in this segment handling “raw materials and high-tech products” on a mass merchandising scale ( Santiago, 2012, p. 37). Speaking of logistics, it is important to deliver an overview of the supply chain management protocols which represent a relevant part of the FedEx brand of assemblage in getting its services out to their customers daily.

Logistics and Supply-Chain Management

An extremely informative and article full of useful information appeared in the ‘Transportation Research Forum’ published under the auspices of the University of Baltimore. In a discussion promoting marketing smarts in combination with supply chain management operations, it was learned that the four leading examples in this area were UPS, USPS (United States Postal Service), FedEx, and DHL. Some of the noteworthy elements in their marketing in terms of website design, included that each wisely took advantage of putting high-attention grabbers on the homepage coupled with key facts. They each also made it easy for visitors to peruse shopping, help support, relevant links and more. The marketing tools must create an effective mix of “Strategies regarding product mix, product lines, new product development, branding, packaging and labeling” that are also differentiated by design and style (Laric, Lynaugh, & Pikman, 2009). Place, price, promotion, and online technology drives key forces of importance as well.
What makes supply chain associated businesses so special? For one, communications and coordination of moving goods and services in a precise and timely (and cost-effective) fashion are critical. In fact, a definition of supply-chain management deserves repeating here as “a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level constraints” (Laric, Lynaugh, & Pikman, 2009). Online marketing techniques, can greatly assist gaining more business when marketing managers use all the tools to their advantage. One effective example of using the technique of interactive promotion, which was unexpected and unconventional, was President Obama’s usage of social media on the Internet to promote his 2008 presidential campaign. In terms of straight-on supply-chain issues communications technology both internal and external form a crucial link to all stakeholders involved.
In any case FedEx is involved in one of the most centrally important industries across the world, and although its competitor UPS is one of the strongest in the air-ground package distribution enterprises FedEx grew to prominence with its family of companies, which includes “FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks and FedEx Services” while handling 3.3 million package pieces every night, with an employment base of more than 200,000 folks, connecting to 215 countries within a 48-hour time frame (Laric, Lynaugh, & Pikman, 2009). Excelling in customer service spurs the company success, with provision of Bluetooth and mobile data and optical pens to compliment handheld devices.

SWOT Analysis of FedEx

Four FedEx strengths conceive a highly recognizable brand image and large-scale operations. As mentioned earlier in this report the brand image is extremely strong, and a main subsidiary FedEx Express is one of the biggest on the planet serving over two hundred countries. The strength of the FedEx name brand alone, according to Datamonitor (2010) has impacted the delivered services segment so much so that lately in 2013 FedEx was ranked number six in “Fortune Magazine’s World’s Most Admired Companies” list. Customs brokerage and implementation of freight forwarding has cast a golden spotlight on FedEx, too. Its large-scale operations base smoothly facilitates international and domestic retail business services. This aspects has aided FedEx in gaining a huge global-market share in revenues. Main non-U.S. nations serviced include Mexico, China, the UK, Canada, and India. With provision of next-day and 2nd-day deliveries FedEx’s ground fleet encompasses almost 60,000 vehicles and 647 aircraft to get the job done through the air.


Administrative problems and lawsuits are bruised areas of troubled weaknesses for FedEx. These factors, along with employee post-retirement benefits remaining unfunded act as a sore spot. A main source of contention involves the numerous lawsuits against FedEx perpetrated by some of the company’s owner-operators who yearn to “be treated as employees, rather than independent contractors” (Datamonitor, 2010-2013, p. 5). The bulk of class-action lawsuits against FedEx complained together as a consolidation, demonstrated in the pre-trial proceedings by one US District Federal court under the auspices of the Northern District of Indiana. But in 2010 a final court’s opinion ruling handed down a summary motion ignoring certification requests in former litigation, and granting favor to FedEx Ground, Datamonitor (2010) reports, winning all claims because the owner-operators were considered contractors by their States’ laws.
It seems as though lawsuits can be problematic for most any company today, regardless of the type of business they represent. But another weakness for FedEx is the factor of unfunded employee post-retirement benefits escaping realization. Supposedly, “The company has significant unfunded pension obligations” and “In FY2012, the company’s pension obligations stood at $22,600 million as compared to the planned assets of $19,433 million resulting into an unfunded status of #3,167 million” (Datamonitor, 2010-2013, p. 6). Obviously the volatility has affected all companies over the last decade and a half, wildly fluctuating, creating an unsteady (or at least, unpredictable) volatility in the money markets. The condition of the financials therefore have caused an unpleasant decline in funding and keeping up with asset values, towards people’s pensions.


It is no secret that India has burgeoned as an emerging marketplace and FedEx has seized the opportunity to participate. India represents a major market platform, particularly in terms of future growth. The basic marketing strategy plan to capitalize on the situation in India, and for FedEx to spread the branches of its trees and forests – so to speak – involves how “FedEx Trade Networks, the freight forwarding arm of FedEx, launched its FedEx International Direct Priority Ocean service in India in September 2013” (Datamonitor, 2010-2013, p. 6). In other words, there will be specialized extensions of ocean liner services in cooperation with freight forwarding options. This move would place FedEx in an exclusive position for fulfillment of this kind of service bridging India and the United States. Being well-positioned to make the endeavor a fruitful and realistically prosperous venture, FedEx brings much hope and logistical market planning to the fore in order to achieve the goal. Nevertheless, FedEx must constantly be aware and wary of threats to its position of market share.


Intense freight industry competition form a threatening cloud over the head of the FedEx conglomerate. According to Datamonitor (2010) there are a plethora of increased security requirements and measures which greatly impact fuel costs in terms of spiking rises in price, and possible scarcity in the realm of fuel availability at all. The factor of this particular nemesis riding on the coat-tails of FedEx represents a real danger since the nature of its services and package deliverables uniquely, and strongly, rely upon transportation means. Thereby any price hikes in fuel can substantially affect the entire operation, depending upon how severe the situation might turn out to be.

Recommendations for Marketing Strategy for FedEx

One key marketing strategy for FedEx is to perhaps seek to make some kind of concessionary agreements with oil-abundance companies, to work out a compatible relationship when (or if) fuel prices spike to severe heights. For example, India might agree as a ‘port of call’ to assist FedEx in the case of a dire oil/fuel crisis, to pay higher compensatory fees or allow special concessions for freighter tankers and/or air fleets so belonging to FedEx to strike a bargain. FedEx must also ensure that its mobile applications stay up to par. Recent announcements by Google suggest that any website businesses that are found to be lacking compatibility with mobile-devices shall be so marked, and given lowered rankings. Although the FedEx brand name is strong enough not to expressly have to worry about this, it certainly must stay ahead of the game by implementing new routes of Internet interest in cute, and interesting commercial videos on Internet social media as well as television. Also, if FedEx can carve out other lucrative win-win positive relationship partnerships with companies such as it did with Castillo, they can further refine logistics in supply-chain management and benefit all the more.


‘DATAMONITOR: FedEx Corporation’ 2010, FedEx Corporation SWOT Analysis, pp.
1-8, Business Source Complete, EBSCOhost, viewed 15 January 2015.
FEDEX. (2015) The Purple Promise. [Online] Available from: [Accessed: 15 January
LARIC, M.V., LYNAUGH, P.M., & PIKMAN, D. (2009) The Role of Promotion in Supply-
Chain Management {SCM}. [Online] Transportation Research Forum. University of
Baltimore. Available from: [Accessed:
15 January 2015].
PERREAULT, W.D., CANNON, J.P., & McCARTHY, E.J. (2011) Basic Marketing A
Marketing Strategy Planning Approach. [Online] McGraw-Hill Irwin. Available from:
15 January 2015].
SANTIAGO, J. (2012) FedEx partners with César Castillo to provide third-party logistics.
Caribbean Business. [Online] EBSCOhost Database 40 (42). P. 36-37. Available from:

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