The 7P’s of FedEx Marketing Mix

and Positioning strategies

 Product/Service
• Home delivery facilities are provided to the customers
for their convenience.
• The company also has a trade network that includes
providing insurance and custom services.
• Its products also include FedEx Supply Chain Services,
FedEx office centers, FedEx print centers, FedEx
Corporate services and FedEx Ship Centers.
• Various centers for customer care have been opened
with Toll Free number to help the customers.
• Post delivery services are also offered to the interested
customers.
• FedEx also provides third party logistics.
 Price
• Premium pricing policy for the quality services rendered
• Rates mostly unchanged despite increasing freight charges.
• Flexible pricing policy in counties such as in China
• Discounts and various schemes at different periods to
attract the customers
• Pick-up Facilities for the products at a reasonable additional
cost
• The prices vary according to the type of service provided
and they have various price packages as per the
convenience of the customers.
• Dimensional weight pricing to all ground packages
• Charging customers on the basis of the space their products
occupy in the trucks
• Variable rate plans like its flat rate shipping. In this case, the
customers are not required to weigh or measure shipments
under 50 lbs
 Place
• Provides services in more than 220 countries and territories
• Offers all round the clock services to its consumers around the
globe.
• More than 5000 hubs and facilities and its more than 180,000
motor vehicles pick and drop off more than 14 million
shipments per day
• Vehicles (like the aircrafts) that are at its disposal plays an
important role in providing timely and efficient services.
• World’s largest all-cargo air fleet, which includes Boeing 777s,
767s, 757s, and MD-11s and Airbus A-300s and A-310s.
• U.S. based customers can pick up their packages at any of
11,000 convenient, secure locations, including more than 8,000
at well-known retailers such as Walgreens.
• Moreover, FEDEX is placing 500 new FedEx Office locations
within Walmart stores nationwide.
 Promotion
• Large variety of channels to reach its audience
and to grow its market and customer base.
• TV, Own website and the social media
• Reward programs are also a very important
promotional strategy followed by FEDEX
• Several type of reward programs for its
customers (merchandise, brand-name gift cards
like GAP, Lowe’s, and Amazon.com to digital
downloads including songs and eMagazines.)
• Used sports as a medium for promotion of its
service numerous times
 People
• Started as a simple team of 389 people. Now, this team
has grown to more than 425,000
• Constantly looking for talented people with qualities like
enthusiasm, honesty, creativity and respect
• Motivational programs for employees like attractive
salaries, regular pay increases, paid holidays, health care
programs, pension plans, and discounted travel programs.
• Attractive rewards like Five star award, purple promise
quality award, Bravo Zulu award and humanitarian award
• A special program in 2018 called ‘Purple Runway’ (industry
leading pilot development program)
 Process
• Organized distribution channel.
1.First phase, the parcel or the product is acquired from
the customers.
2. Second phase, provide a proper channel for the
delivery of that product
3.Third Phase, the product is conveyed to the party
efficiently and within the prearranged period.
• A large distribution network provides many convenient
options for shipping packages
• More than 130 automated facilities
• Large self driving tugs that move large weights around
inside the hubs the brand is also testing other automated
technologies for higher efficiency.
• A global brand with its headquarters in Memphis,
Tennessee
• Touches 220 countries and territories
• Global network is managed through 670 aircraft,
5,000 hubs and facilities, and 180,000 motorized
vehicles
• Website - an important touch point that the
brand uses to serve its customers.
• Served by several thousand motor vehicles all of
which carry the Purple and orange logo on them
(easily recognizable among the crowd of brands)
 Positioning by FedEx
• Target Market:
• Main target audience - companies that ships
numerous packages on weekly basis
• Major profit and fiercest compitition
• Individual consumers only require awareness of
FedEx and many a times don’t get to choose how
their packages gets delivered;
• Handing over individual customers to resellers
and other delivery services.
 Main Competitors
• DHL and UPS - major competitors
 Positioning Map
• FedEx and UPS, USPS
and DHL are all placed
in the consideration set
for our positioning map
for top courier
companies.
• Companies are
positioned on the basis
of two factors,
‘Affordability’ and
‘Speed’.
 FedEx pricing Strategy

• Dimensional weight pricing for all FedEx Ground packages.

• The change in the pricing strategy resulted in a 30-50%
increase in package delivery cost for bulky products
ordered online such as toiler paper rolls, towels, etc.
• The new pricing strategy allowed FedEx to charge for a
reasonable value for its most important asset i.e., the space
in its vehicles; whilst also increasing efficiency in covering
operation cost.
• Improved company’s revenue and margin.
• For middle class consumers, FedEx offers ‘Lower prices
without comprises.”
• Unique privileges for account holders like lower shipping
rates, free shipping supplies, and pick up scheduling.
• Huge social media presence (2.5 million on
Facebook and 98 K on Instagram the brand
has 274 K followers on Twitter and around 72
K on YouTube)
• An excellent brand image already works
favorably for FEDEX by helping it attract and
retain customers.