Business Services For Fedex example essay topic

FedEx Marketing Mix Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed to solely transport packages and documents. He wrote a Yale term paper on this idea and received a C. His professor thought it would never work. Fortunately for Frederick Smith, he did not take it to heart and ended up building that company he dreamed of. FedEx Express now delivers about 3.7 million packages per day throughout the United States and to some 210 countries worldwide. The company operates a fleet of more than 660 aircraft and some 47,000 motorized vehicles and trailers.

FedEx offers a wide range of services for many different people, including FedEx Same Day, FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx Express Saver, FedEx Ground U.S., and FedEx Home Delivery. This brief study will discuss the four Ps of market noting as they apply to Federal Express services, seeking to demonstrate how the entire market noting function can be seen in the operation of these four areas, and to be able to suggest possible courses of action. Price The main factors that influence the price charged by FedEx are the costs of gas, promotions, and market research. The price that FedEx charges on the services now is lower than other competitors (UPS and DHL).

The price of a FedEx overnight letter is $11 compared to UPS and DHL prices of $12 and $13 respectively. As FedEx management's policy is to maximize profits, they use the cutthroat business technique by pricing their services at high prices and hoping the consumer will use it based on the company's reputation and their unique and detailed tracking system. Place FedEx services are available almost everywhere at any time. When customers's hip ment is ready to go, they can either schedule a courier pickup or drop it off at the FedEx location nearest them. With more than 48,000 locations nationwide, there's bound to be one nearby. At FedEx new FedEx Kinko's Office and Print Centers, and FedEx World Service Center locations, customers can drop off FedEx Express packages as well as FedEx Ground packages, pick up shipping supplies, receive assistance, and more.

Also self-Service FedEx Express Drop Boxes are located where the customer needs them-in office buildings, airports, shopping malls, grocery stores, and select Post Office locations. FedEx also has Authorized Ship Centers that provide access to the FedEx transportation network at over 5,800 independently owned and operated pack and ship locations across the U.S. Stores participating in the FedEx Authorized Ship Center program provide many other business services for FedEx. FedEx also provide a time-definite delivery in one, two, or three business days to more than 210 countries through their GSP (Global Service Planning) branches. Promotion FedEx is known for its award-winning advertising and promotions. The reliability, speed, leadership, excellence, and global reach that characterize FedEx are reflected in their sponsorships and emphasized in their advertising. During the nearly these years, FedEx has done many successful promotions to the target customers so that its business has attracted more and more consumers.

The most well-known is 'Relax, its FedEx. ' The campaign is comprised of television, print, radio, and online advertisements. The main message throughout the campaign is that the portfolio of FedEx services will help small businesses meet their needs. Also in 2005 FedEx and Joe Gibbs Racing joined forces to introduce the #11 FedEx Chevrolet to the NEXTEL NASCAR circuit starting at the Daytona 500. The FedEx Racing 'Every Day Is Race Day' campaign will be supported by TV, print and online advertisements.

Competitors FedEx competitors include United Parcel Service, Emery Worldwide, DHL Worldwide, BAX Global, and United States Postal Service. FedEx holds 46.5%, the largest share in the market, with UPS and DHL as the largest competitors. Philosophy FedEx holds a People-Service-Profit philosophy. The People goal is the continuous improvement of management's leadership. The Service standard is 100% customer satisfaction. The Profit goal is much like any other company's goal, and is essential to long-term viability.

This philosophy governs how FedEx runs its business, and defines strategies. Strategy FedEx has five strategies that govern business tactics. These are to improve service levels, lower unit costs, establish international leadership and sustain profitability, get closer to the customer, and maintain the People-Service-Profit Philosophy.