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Presented By:

Shubhangi KhareShilipi Bhandari(2012294)Saurabh Seth(2012279)Sunny SehgalTanvi ParmarVineet Nagar(2012369)Vishal Moonka(2012373)

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About the industry In the next five years, the industry is expected to

strengthen as demand for high-end, time-sensitive goods will rise on the back of increased consumer spending.

Global Courier and Delivery Services industry profit margins are recovering from a low level in 2008, when fuel prices reached record highs and the global economic downturn constrained demand

Companies must achieve economies of scale to become global players on similar levels to United Parcel Service, FedEx, DHL and TNT Express N.V

The industry has a moderate level of market share concentration; concentration has increased over the past five years through mergers and acquisitions.

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About FedEx FedEx Corporation is an American global courier delivery services company

headquartered in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's

original air division, Federal Express, which was used from 1973 until 2000. 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.

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Corporate CultureBelief that success hinges on the first “P” of

the People-Service-Profit philosophy; if employees are taken care of, they will reciprocate with the impeccable service the customer demands.

Good reputation as an employer; made Fortune’s list of Best Companies to Work for, a list dominated by smaller companies.

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Competitor Analysis

Major competitors include:

DHLUPS

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STRENGHTS• High brand awareness• Improved information & wireless

technology• Green Marketing• Established Distribution System• Customer-supplier relationship-

scorecard system• People-Service-Profit philosophy• Portfolio of offerings

WEAKNESS• High implementation, maintenance

and failure cost • Bargaining power of supplier• Complexity of offering confuse

customers• Similar price structure as that of

competitors• Less advertisement• Seasonality of demand

OPPORTUNITIES• Growing economies• Improvements in aircrafts• Growing e-commerce• Business customer seek for single

solution that can meet all needs

THREATS• Unpredictable energy prices• The rising costs in transportation

security and insurance• Weather Uncertainty• Failure in IT systems can damage image• Variety of choice & easy price

comparison• Concern over hacking and protection of

customer information• Many competitors are government

owned, controlled carriers• Fax machines, electronic

communication preferred for data transfer

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Market Segmentation(on basis of its various products)

•FedEx has divided itself into different business units to better serve customer needs. •Goal: To operate independently of each other yet to compete collectively.• Point of differentiation

FedEx Trade Networks

FedEx Custom Critical

FedEx Office

FedEx Freight

FedEx Express

FedEx Ground

FedEx SupplyChain

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GEOGRAPHIC PRICING

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FedEx reacts to global economic trade slowdown

FedEx announced that it will increase Express rates by an average of 5.9% effective in January, with details on Ground rate increases forthcoming next month.

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Distribution(Place)

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v/s

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International Direct dist. A new international supply chain service from FedEx Corp.

called FedEx International Direct Distribution, seeks to replace multiple distribution channels with a single, fast-moving and flexible end-to-end solution to increase speed to market and reduces costs for a variety of shippers.

FedEx said the Direct Distribution process consolidates multiple packages or freight into one shipment, so shippers reduce costs, bypass distribution centres and streamline clearance through customs before distributing individual shipments directly to their final destination.

It offers customers greater flexibility and control by allowing them to choose modes of transportation – air, surface or ocean – to meet their transit time needs.

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Multi-channel campaigns (TV Ads, Search and display ads, social media, online video, direct mail and e-mails)

Sponsorship marketing Interactive-marketing Event MarketingMedia AdvertisingInternet Marketing

Brand-Building & Promotional Strategies

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Media Advertising: TV

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Print Ads/Magazine Ads

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Web Marketing

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Bill-boards

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Event Marketing: Sponsorship Events•FedEx / NFL Open House Series

•In 7 priority markets, Team FedEx took over NFL stadiums on non-game days and transformed them into FedEx business building and promotional environments exclusively for FedEx customers

•NASCAR Race•Tennis/Rugby Tournments

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Webinars : Educational Seminars

FedEx Freight ‘Accelerate Your Business Success’ Webinar

FedEx Freight Automate Your Shipping Webinar

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Brand building thorough community involvement

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FedEx Cares Week

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Key Account ManagementIt has transformed the traditional sales approach with key account

management by Changing sales environment Decline of the middle Price/Quality pressures Customer expectations

It has used KAM to manage complex sales situations by

Managing the long selling cycle, complex, high relationship sale-case study Technology and communication in account management Measuring customer-lifetime value Partnering with key accounts Increasing key account program effectiveness Account selection and classification Resource allocation by type of account Auditing the key account program—audit checklist 

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Understanding Customer needs"Purple Promise“zero-tolerance policy Creates easy and convenient ways to

track their packages.Email the store directly and can

contact live team members.Usb readers“design and print center “

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Fedex also uses social networking sites to interact with their customers

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The Flawed Solution

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FEDEX: RELATIONSHIP MARKETINGAchieving permanent good transactions

with customersOffering customized servicesMarketing effectivenessCRM Strategy :3D GlobeAdvertising in many different languages

to more than twenty countriesHiring local managers that understand

the culture of local areas

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What not to do

THANK YOU

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