Snehal Zarekar Deep Banerjee Umang Gupta Indirasoni Macherla

Founded by Frederick W. Smith 1971 first incorporation

Main products are delivering packages to widespread locations within a short time.
Most profitable services- Priority One, Standard Air Service, and Courier Pak

April 17, 1973 First day of Operations

Today

186 packages 25 cities

210 countries

Global network

Asia-Pacific Canada Europe, Middle East, Africa Latin America-Caribbean

Priority One : over night service for packages Deliver on before12 noon on the next business day Spcl. handling charges $2.5, for hazardous materials $5 surcharges for signature security Courier Pak: Transportation of item upto 2 pounds in weight Use of waterproof, tear proof envelopes,12 by 15.5 each

Cost-$12.5 each for shipments &purchased in advanced in quantities of 5 or more at a time. Standard Air Service:

Guaranteed delivery on the second business day after pick up. Less expensive Economy air: Even lower priority service Third day delivery Discontinued in Jan 1975

Advertizing limited to local newspapers and to direct mails

Blitz teams of 4-5 sales person canvassed different cities, prior to startup Contacted customers through- sales representatives, couriers, customer service agents

Selected New York firm of Carl Ally, Inc. (Bomb thrower) as the companies adv. agencies

Conducted tests on relative delivery speeds & cost and used it as the basis for TV & print advertizing campaign

PRIORITY1

STANDARD AIR SERVICE

COURIER PAK

ECONOMY

Current situations: 1976 spring survey: 24% used both courier pak and priority one services Less than 1% used only courier pak Capacity of air craft was 6200 pounds and avg wt. of package for P-1 and SAS was 14 pounds Avg wt of package for P-1 is one pound FedEx also included delivery routes into small cities that other companies didnt

Potential For Courier Pak

Routine Air package market was 122.3m compared to emergency and rush package which were 18m combined Courier pak is in the routine air market and as tremendous growth potential From Exhibit 4- There was a continuous growth in both avg daily package vol. and avg daily revenue from 1974 to 1976 In sept 1974 courier pack prices inc. from $5 to $8.50 and after the economy air discontinued, prices further shot up to $12.5(2 times the original price in 1974)

FedEx would like to increase Courier Pak volume from 1300 to at least 6000 perday

Strategies Identify Market Segment Focus on people seeking the delivery service for emergency, rush and special handling of documents and other small valuable items.

Exhibition 4 shows us that, in 1975 and 1976 a majority of FEC's shipments were for next day delivery.

Assess market opportunities

The review for delivery of documents or other small items are up to 870,000 pieces per day. This implies that there are opportunities for shippers using Courier Pak whenever their documents weighted less than 2 pounds. FedEx has to go through the process of opportunity identification in adopting the needs of the customers.

Then opportunity organization matching determines whether the identified market opportunity is consistent with the company mission statement, i.e. FedEx aims at providing excellent service including Courier Pak to its clients by delivering packages promptly at the right time, at the right venue and received by the right person.

It was the first company noticed that the needs of packages were different from the passengers, and emphasized in it to develop a unique system and treat as their core business; while their competitors treat it as a sideline business. FedEx built up good image against its competitors Finally comes to the opportunity evaluation, which is to evaluate whether the attractiveness of FedEx Courier Pak can match with the needs of potential customers using the products. From the case study, we forecast that there are great rooms for Courier Pak to growth.

Change the habit of existing express services customers A comprehensive national advertising campaign should be planned and broadcasted through different media, ranging from magazine, trade periodicals, television, radio, etc, notify the potential customers the benefit in using Courier Pak for delivery. The use of advertisement can arouse customers who delivered documents or other small items to consume Courier Pak, especially to capture the attention of those industries that have the most package delivery needs. Assign a slogan for Courier Pak An effective slogan can best reflect the reliability of a company products, since a slogan mentions the benefits of using Courier Pak.

Create a Value for Money Concept The selling point for the Courier Pak should be focused on its special feature-the waterproof and tear proof envelopes.

In the advertisement, FedEx can point out that the customers need to spend only a specific price for the package weights up to 2 pounds, the packages can be delivered to anywhere within FedEx operational territory by overnight Courier Pak service. Emphasized on the speed, reliability and security Courier Pak provided compared with their competitors.

Conclusion

Base on the product market fit, Courier Pak completely fit the company, from the environmental, company, cost and competitive standpoint. So we think that FedEx should devote special emphasize to Courier Pak.

Expanding the target market to : -Corporate Market and negotiating for long term high volume contracts -Emergency part shipments -Medical shipments Offsetting the market leaders lingering strengths by Product differentiation : Utilization of its own airplanes and the Memphis hub Focusing on a single value proposition of overnight delivery

Concentration on more efficient logistical system Frequent update of technologies and up gradation of software Can be associated with sport stars in terms of reliability, teamwork, precision & flawless execution

THANKYOU.