Published by MBA Skool Team, Last Updated: August 28, 2021
Marketing Strategy of FedEx analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on FedEx marketing mix, help the brand succeed in the market.
FedEx marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the FedEx Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in FedEx marketing strategy can be explained as follows:
FedEx offers following range of services across the globe. All these services form the product strategy in the marketing mix of FedEx. It services include SHIPPING, TRACKING and MANAGING your shipments - Package, Envelope, or Express Freight, Freight Shipments, Expedited/ Extra Care Handling, Air/ Ocean Freight Forwarding etc. In each of the above services there are various offerings offered by FedEx to its customers. FedEx has good market share in the freight segment and it also has a good growth rate. It has a relatively lower market share in the Kinkos (retail outlets) segment then its competitors. FedEx has several business subsidiaries including FedEx Office, Express, Ground, FedEx Freight etc.
FedEx Price/Pricing Strategy:
Below is the pricing strategy in FedEx marketing strategy:
Earlier FedEx used to charge for a package simply by measuring its weight.
There were some items like towels, shoes, tissues which were light in weight but occupy a lot of space during transportation. Hence this used to incur costs to the company and the margin for such products was low and thus fetch lower revenues due to their light weight. FedEx revised this strategy to dimensional weight pricing to all their ground packages. Thus they charged according to length, breadth and depth of the packages instead of simply using weight as a measure. This helped FedEx increase revenues and margins. This is the basic marketing mix pricing strategy of FedEx. This strategy allowed FedEx to recover all its operating costs. As of 2020, the company has revenues in excess of $100 billion.
FedEx Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read FedEx SWOT Analysis, STP & Competitors
FedEx Place & Distribution Strategy:
Following is the distribution strategy in the FedEx marketing mix:
FedEx has outlets spread across all parts of the world where the customer can give its parcel for shipping in person. FedEx also offers its services online where you can create an account and through that schedule a pickup. FedEx staff will come at the designated location at the scheduled time for a pickup of your shipment. FedEx also offers daily pickups and cancellations. The customers can track and manage their shipments online so that they know where exactly their parcel has reached.
The FedEx staff then delivers the shipments at the desired location.
FedEx Promotion & Advertising Strategy:
The promotional and advertising strategy in the FedEx marketing strategy is as follows:
FedEx indulges in coming out with creative advertising campaigns which are remembered for years like the John Moschitta ad. Its long time Ad agency has been BBDO. Also they run print media throughout the year. FedEx also indulges in sponsorships of sports events that are dedicated to achievements of excellence. It has been the official carrier of the UEFA Europa League, ATP World Tour and Rolland Garros. It also follows Charitable giving policy. It has a separate department called FedEx Cares which focuses on these 5 pillars: Delivering for good, Sustainable transportation, Employment pathways, Road safety, Global Entrepreneurship. FedEx also has its own YouTube channel on which various videos are uploaded signifying its reliability and affordability. It also engages in excessive digital marketing promotions. The brand focuses on its communication "where now meets next" to build its roadmap for the future.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of FedEx.
FedEx is one of the leading global logistics company and people are the backbone of its business. People play a major part in the services industry. FedEx staff is extremely friendly and cooperative with their customers. The company has approximately 600,000+ employees in the organization. The pickups and deliveries are done at the scheduled time without being late thus improving customer satisfaction. The FedEx staff should be extremely coordinated so as to deliver the parcels on time without any delay. This becomes a challenge due to its wide geographical presence. The staff ensure that packages are delivered on time without breakages and delays.
FedEx manages its delivery services very effectively. The customers of FedEx can timely check the status of the parcel. Also customers are given the facility of express delivery in case of urgencies. Most of its processes are automated and main focus is given on reliability and affordability of its services. As a part of its social initiative towards the environment, the company pledged to go carbon neutral by the year 2040.
FedEx has several outlets spread across the world, which adds to its physical evidence. Customers are given printed invoices at the retail outlets when they are availing the FedEx services. In case of online services, the invoices are sent to the customers’ email accounts stating the order number and other relevant details so that they can track their orders efficiently. Also the packages are packed thoroughly to avoid any breakages during the transit. This completes the FedEx marketing strategy & mix.
FedEx is a US multinational courier delivery services company. FedEx was founded in 1971 and has grown on to become one of the leading courier and logistics companies in the world. It’s revenue in 2020 was in excess of $100 billion.
It employs more than 600,000 employees. FedEx's major global competitors are DHL International, United Parcel Service and TNT Express among others.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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