FedEx Express provides overnight courier services, logistic solutions, freight services, and business support services. It is one of the largest express transportation companies in the US and in more than 220 countries in the world. Memphis, Tennessee, is FedEx headquarters.
Q.1 The main product for Federal Express is courier services for small packages and freight deliveries. The product entailed an overnight delivery of packages at first, but it was later diversified to deliver products between one to three business days. Examples of these Courier services include the Priority One and the Courier Pak. The Courier Pak is relatively cheap, whether calculated per unit or per cubic foot and hence, FedEx should provide enough support.
Q.2 Courier Pak provides a guaranteed overnight package delivery services at the cost $12.5 to any destination within Federal’s Express system. The unique physical shipping strategy coupled with the tear proof and waterproof package offers secure protection to the client’s products. Federal Express should provide extra support to the Courier Pak service in order to strengthen its competition with other packages such as Priority One
Q.3 Given that Courier Pak accounts for than 10% of the total overnight package, the market potential for Courier Pak remains unfilled. Due to its relatively low cost, Courier Pak is capable of increasing its dollar volume and contribution margin. The market potential is estimated at 870,000 pieces a day.
Q.4 Priority One is the main competitor for Courier Pak based on the contribution margin and the point of delivery
Q.5 Clients sending documents, architectural drawings, and enveloped materials use Courier Pak. The maximum weight for these materials should be less than two pounds and it is ideal for clients who are conscious of their freight costs. Clearly, this description fits customers looking for rush, emergency, and special handling services including the delivery of valuable items.
Q.6 The appropriate target market for the Courier Pak will include those individuals in need of faster, and special handling of their documents. Existing express customers also form an ideal market for Courier Pak services. The emphasis of this target market should be security, reliability, and speed.
Q.7 The Courier Pak differs from other FedEx services based on a number of factors. First, the packaging size of Courier Pak enables it to accommodate higher per margin volume per pound as compared to those measured in per unit volume. This is essential for enabling the company to register higher volumes. Equally, estimating the profit from per cubic foot still gives the company an advantage when it comes to profit margins. Speaking of costs, the flat price pegged at $12.5 per Courier Pak unit enables it to attract more customers.
The implications of the marketing strategy include the identification of market opportunities that meet the needs of clients. Secondly, the needs will have to be matched with the mission of the organization considering the estimated growth targets.
Q.8 The communication strategy for the Courier Pak will involve the creation of expansive advertising campaigns throughout the nation, and one that covers different media. This should be aimed at informing the consumer of the existence of the Courier Pak service.
Q. 9 Federal Express should adopt the following strategies for the Courier Pak
Assign a suitable but effective slogan for service. This slogan should be capable of reflecting the description of the product and the benefits that customers can derive from using the product. This should then be advertised through leading national channels and media houses such as newspapers, periodicals, TV, and internet sites provided it reaches a higher volume of clients
Creating a value for money concept should form the next move because it will be essential in outlining the special features of the product. For instance, the security, urgency, and the level of protection for documents are some of the features that must be used in creating concept for the product
Review and conduct a frequent analysis of the marketing campaign
Make changes where appropriate
Work Cited
Federal Express Case Study (A)
