Marketing Strategy and SWOT Analysis of FedEx
FedEx Corporation is an American multinational delivery services company. The corporation serves in more than 220 countries globally, and the generating revenue adds up to 65.4 billion dollars. FedEx employs over 475,000 people worldwide and owns more than 679 advanced aircraft and 180 thousand vehicles for productive and agile distribution of cargo. Fortune magazine listed FedEx as the number one company in the logistics industry. Are you already curious about the strategic tools that the FedEx has applied for its prosperity and fame? As marketing strategies and SWOT Analysis are vital- to achieving business success, let’s explore them below.
Lets get commenced with Mission and Vision Statements of FedEx Corporation.
Mission Statement of Fedex
FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies.
It is apparent from FedEx’s Mission Statement that the company prioritizes its value of trustworthiness among shareholders, customers, partners, and the public in general. The company secures and meets the needs of varying market and customer segments to evolve its enterprise.
Vision Statement of Fedex
FedEx Vision Statement is- “being a dynamic and progressive courier services firm that leverages of technology and impact the lives of all people.”
The vision statement acknowledges the foremost need for cargo delivering on a global scale for customers. That’s why the corporation introduced interactive business software in its operating system, aiming to influence the customer segment positively and satisfy their needs.
Let’s take a look at positioning strategy that FedEx exerts.
FedEx is quite active on their Instagram official account where they keep interconnectedness with their customers. Instagram posts have a vital impact on customer relationships. For example, when you see this post, it associates you with the sense of winter, cold, breathtaking arrival of New Year Holiday gifts.
This post transmits a message like, “We know that you trust in us, so we are doing our best to bring you a portion of happiness. You see, your eagerly awaited packages are on their way, so, stay tuned there is a little time remained.”
Originally, FedEx’s pinpoint is to prove its reliability and power through overcoming challenging enterprises. It’s noteworthy that the first point of the company’s priority list is to deliver promptly and in good condition, it was supposed to be.
As the responsibility, conquering any difficulty and satisfying the customers is considered the foundation of the company- I tend to think that FedEx Corporation belongs to Hero Brand Archetype.
So, what do we need to know about Hero Brand Archetype?
Desire: to demonstrate the sense of one’s importance through complexities
Goal: to apply excellence that impacts positively the world
Strategy: to become vigorous, outstanding, and powerful as far as possible
Here are the messaging levels of Hero Brand Archetype:
Level 1: someone needs you to assist conquer him or her
Level 2: advancement of competence, excellence, mastery, motivation
Level 3: doing your duty or best for your community, society, family or country
Level 4: utilizing your strength and courage to make actions for you and the world
The Hero Brand Archetype is a promising identity for your brand if:
- It has an innovation that matters to the world.
- The offered service assists people to meet their needs.
- The strength of the company is that it performs tough tasks every single day.
- The company wants to beat up patent competitors on.
- The customer segment is a decent and reputable one.
Brand Archetypes. Why do we need them in practice?
All of us know that many companies have problems in presenting their key values and attitudes. Sometimes our messaging leads to misunderstanding or it does not represent what we aimed to say in reality. Here of course the importance of the brand archetypes is very crucial. How to create a good company culture?
What are its values? Here are some questions that need to be answered properly. “8 steps to a complete archetypal branding” e-book tells us a lot. We have written a book that goes deeper in these notions and reveals archetypes in specific ways. Just uncover the brand archetypes with “8 steps to a complete archetypal branding” e-book.
It is SWOT Analysis’s turn to confer about.
Strengths
Brand Recognition: FedEx brand has acquired popularity and fame in more than 220 countries. Initially, the company was a great supplier of business chains. However, it started to provide individual customers with their ordered goods in a timely manner. Being an excellent option for products’ logistics throughout the world- FedEx generated trust among people and developed its branding expertise.
Global and Local Presence: The company has a wide distribution of packages and cargo throughout the world, including air and ground shipments. FedEx has created perfect opportunities for entrepreneurs, local and international customers, and every individual who aims to obtain a good within a few business days, denying the location of delivery.
Innovative advancement: FedEx never cease research in probable technological development that may prompt progress in the business, mainly addressing customer relationships. Recently, the company has established cutting-edge technological advancements that helped customers to obtain and drop their goods more conveniently.
Furthermore, due to recently adopted innovation, the corporation took advantage of conducting more than 14 million daily shipments.
Financial Performance: In 2016, the company earned revenue adding up to 50.4 billion US Dollars, in 2017 60.3 billion dollars, 65.4 billion dollars in 2018 and 69.6 billion dollars in 2019. It is obvious that the revenue streams are consistently rising up to 7% every year.
Product damage:There are many such cases in any delivery industry where products are being damaged during transportation. The shipping company needs to charge for any such occasions, which will undoubtedly affect the company’s revenues negatively.
Weaknesses
Dependence on the US: The majority of FedEx earned revenues are coming from the US. It is a drawback in terms of having a dependency on one country. Recently, the company started expanding and enhancing the volume of the business, focusing on other countries, too.
Decreasing scope of differentiation: As other powerful logistics companies are FedEx’s competitors, the strategy variations are getting adopted nimbly. In other words, the companies are becoming similar in terms of strategies used, service improvements, etc. which will lose the uniqueness of a particular company. In this case, this causes an ascending rate of differentiation of FedEx .
Opportunities
The growth of E-commerce: In recent years, E-commerce has developed and acquired popularity noticeably. By virtue of this, there is a high demand in the transportation field. Thus, there is a need to deliver millions of packages daily. FedEx has the required number of assets to enhance its turnover and obtain recognition that is more widespread, especially in this E-commerce boom period.
Making faster transmissions: As making the system faster will give the customers an opportunity to attain their goods more frequently, thus, it will enhance the satisfaction level among them. Due to this advantage, FedEx will become an outstanding company especially for retailer business people who will need to use the service regularly.
Advancement of B2C relationships: The enormous part of annual turnovers come from B2B commerce. The B2C currier is another sphere that FedEx has a great variety of competitors. The company may launch spreading its deals and retail channels.
Threats
Patent Competitors: The FedEx Corporation has three considerable competitors in the logistics industry: UPS, USPS, and DHL. They invest aggressively in marketing, innovative advancement, technology, research, etc. which intensifies the competition
Price Battle: In different countries, government regulations, fuel costs and economic fluctuations are varying. This generates price gaps between different countries. Besides, three competitors’ presence makes the situation keener regarding decision making of a reasonable price for a particular market segment.
Demand and Supply Equivalence: FedEx is one of those logistics companies that always face an imbalance of capacity and demand. This can make either loss or opportunity loss in business. In both cases, the company meets challenges in correlating two basis.
Now, let’s discover the segmentation strategy of FedEx Corporation
In a prominent Commercial of FedEx, you see an ordinary guy, wearing clothes that did not make him outstanding, was walking with his dog in the forest. He suddenly noticed syrup trickling down from the main stem of a tree. The guy tried the taste of the syrup with his finger by taking a little bit from it.
And WOW! It tasted good. A perfect idea of business emerged in his mind. The entrepreneur launched his enterprise of beverage and the best option of the product distribution considered to be FedEx. Hence, the coordinated actions of the man displayed in the commercial tend me to think that he belongs to the Nester segment.
What do we know about their lifestyle and values, brand usage and adoption?
Lifestyle and Values
Nesters prefer clothing like everyone else. In addition, the conformity and convenience regarding clothes are the priorities for them. They want to deal with organized routines to avoid any probable unexpected harmful consequences. They are used to purchasing or utilizing their standard and the outdated option of an item or service rather than trying new choices.
Nesters put the factor of family and close ones as supremacy in their life. They like spending the most available time with their family members. Besides, their beloved room in the house is the kitchen as they have cooking preferences.
Brand Usage and Adoption
Nesters are meant to choose cheap items, remembering their preference for comfortability. They organize strict shopping and visit their habituated and preferred markets and companies only. Moreover, they tend to opt for domestic firms rather than foreign ones.
Here are some interesting facts about Nesters:
- They have an interest in reading magazines, watching TV News Channels for that are about local issues or family-oriented programs. However, they will refer to TV only if there is no one with them.
- They have the foremost beliefs and values that respect traditional customs and duties. They appreciate faithfulness in relationships.
- As their most favorite place is their own house, they like dealing with gardening and buying accessories for their use and benefit. Moreover, keeping in touch with neighbors and gossiping is another point from Nesters’ preference list.
- They like to organize group meetings to watch long movies. Mainly they are fond of old movie channels.
16 Personalities (why do you need them in your business?)
Nesters are just 1 of 16 Personalities that you should recognize by heart. These are the types of customers who may happen in the process of promoting or selling products. From those 16 different characters (16 Personalities), you have to choose the only one, your ideal customer, to whom you have to direct the whole promotional arsenal.
All these types of clients are included in the book named “16 Personalities”. With this book, you will discover the secrets of 16 brand personalities, and how to gain your clients’ attention. You will easily find a target customer that matches your brand perfectly.
I hope you found out the answers you were looking for in this post. Here was introduced Marketing Strategies and SWOT Analysis of FedEx Corporation, which helped us to acknowledge what contributed the company to achieve success and gain international fame. For more similar posts, you can check out the main page of our website.
