Marketing (Operations Strategy)

Analyzed by Group 7 –

Parag Chaubey

Shashank Bhargava

Operations StrategyThe unique FedEx operating strategy works seamlessly -

and simultaneously - on three levels.

• Compete collectively by standing as one brand worldwide

and speaking with one voice.

• Operate independently by focusing on our independent

networks to meet distinct customer needs.

• Manage collaboratively by working together to sustain loyal

relationships with our workforce, customers and investors.

Marketing/Operations (Strategy)

Started with Identifying and catering 2 different opportunity (conventional and Fast deliveries e.g. papers, computer parts medicines etc.)

Their Marketing/Operations Strategy look linked initially in their campaign slogans.

1. Twice as good as the best in business

2. Absolutely, Positively Overnight

3. Various Humorous ads

Their Marketing Strategy itself was based on Operational Excellence else the sustained operations wouldn‟t have been Possible.

Hub and Spokes Concept (Memphis tenn)

The operations frontier, trade-offs, and the operational effectiveness

Differentiation

Cost Leadership

Responsiveness

Fed Ex

Marketing Mix at FedEx

1. Product – The unique product introduced by FedEx was the

time based deliveries for a untapped random demand for

small packages i.e. Medicines , Papers etc.

2. Placements - The concept of Hub and Spokes, taken from

a telephone company switching system i.e. Memphis Intl

airport sorting hub in a Radial Distribution System

3. Promotion - Through Media in form of campaigns specially

to change from cold call approach to advertising and cutting

of sales jobs to invest as much as $ 1 million in Ads.

Unique Marketing Plan

• To target the “front door customers” also known as „Paper

mills of America‟. This market was not carefully studied and

had tremendous untapped potential.

• They under stood that the package is inanimate ,FedEx was

totally in charge of operations from pick up to delivery i.e.

customers are involved only at very start and very end of

supply chain.

• To Target the Decision Makers i.e. people who decide how to

send packages, which express delivery service to take up etc.

Unique Operations

• Non-Linear System: Creation of central hub at Memphis

Airport leading to efficient operations (lower costs) and better

care of packages

• Started the use of technology in terms of tracking the

consignment later i.e. use of CRT and CSA and Optical

Scanners. This enabled better tracing of packages at any

given point in time.

• Delivery confirmation call backs, Saturday pickups, variety of

service options added value.

(Marketing/Operations) ?

Scanning through the Case it looks like the operations and

Marketing are inseparable domains here,

It is more of marketing of operations such as

1. Timely Delivery in one day.

2. Marketing Campaign slogans talking about operational

excellence.

3. Strengths in Technology.

4. Edge over competitors basis timely delivery of high priority

items

Recent Times

Recent industry changes have hurt FedEx as some customers

have opted for slower-moving, no premium delivery services in

the soft global economy. Volume for FedEx‟s international-

priority-air freight business declined 3% in the company‟s fourth

quarter, which ended May 31, after falling 1% in the fiscal third

quarter. U.S. domestic-express volume fell 5% in the fourth

quarter, compared with a 4% decline in the third.

Thank You!!!