Rajesh Subramaniam,
Rajesh Subramaniam, FedEx’s chief marketing and communications officer indicated in January 2019 that they intend to improve their marketing plan and promotional strategies to cater for a problem that they have been facing including lack of customer support. Rajesh was addressing a conference the Association of National Advertisers’ (ANA) 2018 Masters of Marketing Week. In addressing the decision for FedEx to invest in promotional strategies and improving marketing, Rajesh stated that “We are living in challenging times. On the one hand, forces like the internet – and FedEx, for that matter – have brought the world closer together, connecting businesses to customers around the world.” In April 2019, Forbes indicated that FedEx was running a marketing campaign which looks beyond pallets and packages to tell stories about communities and sending messages globally across the channel. Don't use plagiarised sources.Get your custom essay just from $11/page
The FedEx over the years have been trying out different smart computer system and subsequently expanded their frontier and added more activities to meet the international standards. The corporation expanded and came up with more brands such as FedEx Express, FedEx Ground, FedEx customer critical, FedEx Freight, and FedEx global logistics with successful stores that have now transformed the world.
Currently, the corporation has been making huge efforts that benefit from diverse trend and implementing the porter’s five forces. The corporation is the largest express transportation company and continues to expand its services. The corporation keeps maintaining its position by constantly positioning itself as the best independent and effective industry in the services they offer and keeps focusing more on the delivery of services through segmentation.
However, FedEx has faced some challenges with a claim of misconduct in the delivery of its services. In June 2019, CNN reported that China was investigating FedEx after it diverted its packages to the United States.
Chinese government authorities issued a strong statement indicating that FedEx’s action has “seriously harmed the legitimate rights and interests of its client, and violated Chinese laws and regulations on the express delivery sector.” Again in June 2016, INDEPENDENT newspaper reported that US prosecutors accused FedEx of trafficking illegal prescription drugs on their online stores.
In response to claims of misconduct, FedEx chief marketing and communications, Rajesh Subramaniam in August 2019 indicated that the corporation has diversified to specifically deal appropriately with services and ensure constant commitment and ultimately keeps maintaining the customer satisfaction. The six units are specifically created to be able to focus on a particular segment and handle specific needs for different clients. FedEx has set out itself in the transportation corporation in terms of service delivery and pricing. It aims at conquering a frontier in all services and has now posed challenges in leading companies such as UPS, DHL, TNT and others.
Background Information
Problem/Issue
FedEx Marketing Plan and Promotional Strategies
FedEx Company has demonstrated a successful marketing strategy that takes consideration of the modern competition around the world. There are several ways in which business has adopted market strategies to stay abreast with competing businesses around the world. In the analysis, FedEx Corporation has managed to keep its services up to speed with policies, promotion and right strategies efficiently and effectively. The company has demonstrated the use of SWOT analysis to make appropriate strategic plans to achieve the company goals. This is done through the assessment of the strength, weakness and threats and opportunity that are suitable for the business to take steps in the right direction. The company has been able to come with appropriate pals that enable them to compete with the global market and sustain its competitive position.
Additionally, the company has its objectives geared towards satisfying its client by effectively competing independently. The plans are to make good use of the market mix such as the price place, product and promotion to attract client ton their services. This ensures that the company makes a consistent and regular adjustment to suit the market variable and works towards ensuring that the company makes the best decisions.
The emerging trends in the industry indicate that more technology can only help FedEx in devising products and services that satisfy the customers and reduces costs for the company. According to Rajesh, DFdex Chief Executive officer, in an interview in 2019, FedEx Supply Chain systems are marketed vigorously as companies are constrained by lack of large capital still seek the expertise of managing their business without losing focus on their core competencies.
North America has numerous transportation service providers, such as UPS and DHL. Furthermore, some of these companies control crucial aspects of the sector, such as mailboxes.. This company also has a higher share of ground services than FedEx. It also boasts of superior ground services. Many competitors are merging and acquiring new portfolios that make it difficult for FedEx to stay ahead. As if this is not enough, some of the biggest FedEx clients happen to be competitors. One such organization is the US Postal service. FedEx has to collaborate with this company, but it also takes away most of its clients. According to Forbes magazine, one of the major strengths of the FedEx is that it is a household name in the US and Canada.
Consequently, it is unlikely that a customer will abandon the business owing to first mistakes. Additionally, the company operates independently, thus enabling it to respond to consumer demands collectively. On top of this, the company’s finances are in order.
FedEx has a huge network of pilots and crew members to transport its packages. It is also highly innovative by investing in research and development. The firm has pioneered a number of services in the package delivery industry. Additionally, it has a global presence and invests heavily in technology.
FedEx innovativeness has been one of their most prominent competitive advantages. They were the first to introduce overnight business delivery, the service they remain market leaders in even today. FedEx was also the first to recognize the need for customers to track packages, by creating Customer Oriented Services and Management Operating System (COSMOS), which provided information about the status of the delivery. Today SenseAwareSM solution allows monitoring shipments in almost real-time, including their temperature location etc. FedEx is extensively using internet technology by providing the opportunity to send shipments through their websites to prepare the required documentation and check the cost structure online. Their supply chain is based on the latest technology, with the use of automated sorting, label identification and storage. It allows lowering shipping costs and reducing the impact of human errors.
Although advance technology and low operating costs are often the determinants of success, they cannot be the cornerstone of competitive strategy. With the delivery of documentation decreasing, FedEx is losing the market segment, where it always had a competitive advantage. Moreover, the ownership of fixed assets (planes, trucks, etc.) may reduce the cost in the short-run. However, it hinders company flexibility in adjusting to the changing market environment. Furthermore, technology today is developing very fast, can be easily copied by competitors and goes obsolete in very little time. Therefore, FedEx should concentrate more effort on promoting the brand, developing closer customer relationships and redesigning their product offering, to stay competitive even with the loss of documents delivery business. Although technological superiority is necessary for future success, it is instead a “hygiene” factor, then a source for competitive advantage in the future market.
FedEx has initiated a new promotional strategy that involves sending an emotional message using the new tagline, “What we deliver by delivering.” FedEx CMO, Raj Subramaniam indicated in the press release that they had abandoned their former advertising campaign that was based on an over-the-top humorous approach to new campaign strategy to differentiate their brand from the competitors a well as to reach more customers. The new campaign strategy that FedEx has adopted shows that it’s not just about the package, but also about what these deliveries mean to the people shipping them. The shift from the advertising that showed attribute, to the one that capture emotions is effective and differentiating. The new promotional strategy shows how FedEx is woven into people’s lives and the culture of customer-oriented services. Rajesh is a big proponent that culture has to define the company’s culture. Rajesh, in an interview, he stated: “Without a true culture, a brand doesn’t have authenticity and a brand that lack authenticity will fail”. IN an interview with Independent newspaper, Rajesh, FedEx CMO stated that “The beauty of this campaign, that we didn’t have to go look too far. So we simply manifest our culture in the advertising”. The new advertising campaign uniquely reflects the company’s culture, making the FedEx brand to become unique and attractive.
FedEx has recognized the wake of digital marketing and the company is using social media to connect with 425000 FedEx team members around the globe. FedEx uses digital marketing as a way to reach to the young generation that has embraced new technology around the globe as well as making it easier for the customer to receive information and feedback faster. The world is changing communication patterns and channel. Upon realization of this, FedEx has embraced technology as a mean to promote its brand. People are now more connected than ever, making it easier t reach customers at a faster rate and respond to their demand anywhere in the world. Rajesh, FedEx CMO, stated that “We understand logistics is nothing without teamwork and this campaign aims to showcase the people whose enthusiasm and expertise power our international networks, infrastructure, technology and processes.” The new campaign strategy is aimed at appealing the new to the small and medium customer to make them feel part of FedEx.
Conclusion
FedEx has significant opportunities in its industry. First, it can expand into other global markets and thus tap into a larger market. Additionally, it can streamline its internet services to minimize the need for contact with consumers. On top of this, the firm can also heighten demand within the logistics industry. The organization has the option of using this complaint as a wake call. It can take positive criticisms about its customer service and thus conduct a system overhaul. DI’s complaints are not the first, as many other repeat clients have experienced the same problem. If the company takes this route, then it will retain its workers about the importance of proper customer service. FedEx CMO, Rajesh in a press interview last year indicated that the company had put aside financial resources to cater for training involving several business-related objectives such as the company goals and the importance of paying attention to customer requests. It seems many of the customer care respondents tend to dwell on dealing with as many incoming calls as possible. FedEx’s new marketing plan and promotional strategies my help to regain the trust of customers and increase trust as well as service delivery. The new emotional message campaign is likely to turn many customers to FedEx as it appeals to both big customer and small and medium customers.