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Marketing Strategy FedEx

 

The founder of FedEx is Wallace Smith, who founded this company in 1973. Now, it is the most important and reputable name in the logistics and services industry. Due to the Marketing Strategy FedEx, the company is currently operating in 220+ countries internationally. Ecommerce, business service, and transportation are some significant product portfolios of FedEx. In addition, FedEx acquired TNT Express in 2016, which is the biggest logistic giant in Europe. After this acquisition, the company gained a competitive advantage over its competitors and got a name globally in logistics and courier services. Today, we will talk about some of the essential marketing strategies of FedEx.

Important Factors in the Marketing Strategy FedEx:

Segmentation, Targeting and Positioning:

There is no doubt FedEx is a giant in the delivery of goods and logistics. It uses psychographic and demographic segmentation strategies to fulfill consumer demands. FedEx is a global company and operates across the world, so it is tough for them to set a targeting strategy. That’s why they use a differentiated targeting strategy. In positioning strategy, they use value-based and price-based strategies to understand the customer requirements and set the proper process accordingly. The prominent tagline of the company is ‘’the world on time’’.

Competitive Advantage | Marketing Strategy FedEx

Improving Air Fleet: The significant competitive advantage that FedEx has is its improving air fleet. They continuously enhance their aircraft fleet because it helps them decrease operation costs, fuel costs, and structural costs. Plus, it has increased its efficiency and access to other countries.

Spotlight on Retail Accounts | Marketing Strategy FedEx

Due to the changing lifestyle and technology, the company has transferred its attention from small to medium retailers in order to get a return on assets and increase its revenue. It is another significant competitive advantage that FedEx has over its rivals.

SBU’s Working Communally:

Its SBUs work independently in various markets but operate communally, which is one of the major competitive advantages of FedEx. Due to this reason, its operations and delivery system are very smooth and aligned.

BCG Matrix:

The company operates in 5 SBUs (strategic business units). FedEx Business Divisions, FedEx Express, FedEx Freight, and TNT Express are in the star category of BCG matrix. They are the major cash cow in the relative business. In short, FedEx is a successful brand in logistics and courier delivery services.

Distribution Strategy | Marketing Strategy FedEx

In the fiscal year 2016, the company generated 50 billion dollars of revenue across the globe. It happened due to the workforce of 400000+ people and effective working. They purchased more Boeing aircraft to make its distribution more effective. It is a significant competitive advantage that FedEx has over its competitors. As a result, they deliver essentials efficiently and effectively on time.

Brand Equity:

With high visibility and top-of-mind awareness, FedEx has successfully created itself as a famous global company in the logistics and courier delivery service. That’s why it has secured prominent positions at different forums. Thus, it is one of the most admired companies globally and has been secured 12th position in Fortune magazine.

Competitive Analysis | Marketing Strategy FedEx

As mentioned above, the transportation, business services, and logistics industry is filled with many big players like DHL, UPS, Amazon Express, and more. That’s why it is a highly competitive industry, but FedEx has maintained its position and share successfully.

Market Analysis:

It is challenging to deliver those products that have a short life cycle. Moreover, the disturbance in the flight operations, tensions between borders, and other scenarios are continuously threatening the operations and revenues of the logistics companies. On the other hand, the presence of local and international players is another major advantage.

Customer Analysis | Marketing Strategy FedEx

As a result, nearly every organization, individual, and the user is using FedEx to deliver their products and essentials. They are the most significant contributors to the company and one of the major strengths. Similarly, many government organizations are regular customers of FedEx.

 

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