Fed Ex - Focusing on the future, Len Hostetter
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  • E arthSmart June, 2010
  • First we will talk a little bit about the FedEx brand and where we came from. Then we will look at our customers, not just the ones we have today, but also the customers we hope to have in the future. I will explain our EarthSmart initiative, which is our environmental platform and show you what FedEx is doing to support sustainability. Then switching gears we will look at another component of what FedEx is doing to stay relevant from a social media standpoint. E arthSmart June, 2010
  • I would say something about us creeping into middle age, and use your quote about the fact that we are making sure we stay relevant and don’t have a mid life crisis. E arthSmart June, 2010
  • It takes meticulous care to manage a brand like FedEx and that in everything we do we think about our brand and who we want to be and who our customers expect us to be. Our customers expect us to be perfect or close to it, so we have to deliver. E arthSmart June, 2010
  • FedEx built an industry and Baby Boomers remember it. To them we have done something very powerful, but we can’t rest on our laurels because there is a whole generation of people who don’t know that and don’t care. E arthSmart June, 2010
  • As you can see Gen Y is large and in charge…. E arthSmart June, 2010
  • While all three inhabit the same workplace, their differences are significant Work ethics Boomers: “I have a stronger work ethic and am more dedicated than the younger generations.” Gen-X: “I’ll be on the team, but let me do my piece” Gen-Y: “Get me out of here. I need to use my brain.” Use of technology Gen-Y prefers to communicate via blogs, IMs and text messages Boomers and Gen X-ers prefer to communicate on the phone or face-to-face E arthSmart June, 2010
  • E arthSmart June, 2010
  • The current health of the environment has gained a lot of public interest . It has become a key topic in personal, business and government discussions. Over the last 18 months we have seen a renewed focus on the state of the environment. This focus, in part , is due to: New government administration with a commitment for a healthier environment and energy investment, and the willingness to set forth supporting policies. Social media uniting individuals and communities that are passionate about environmental issues. Especially the “ Dark Greens ” In this economic downturn their passion has remained strong , even when many skeptics called it a fad and thought it would fade away . Now more than ever, consumers are integrating their concern for the environment into their purchasing decisions. It is also becoming a decision “tie breaker” when price and quality are equal. Concern for the environment is shaping the way people think, work and live today . It’s not the stereo-typical tree hugger it’s everyone-people, businesses and municipalities-learning and excited/empowered about making better choices to reduce their environmental impact. The environment has become a modern responsibility. That is a big shift for corporations. E arthSmart June, 2010
  • Many companies saw sustainability as burden or a check the box activity rather than integrating it into their business strategy and it is these companies who are struggling or failing to connect with customers. Sustainability is not burden rather an opportunity for our business. Especially now in our economic climate. There are great proactive reasons to look at our business through a sustainability lens. Sustainability is: At the core of survival. It’s about doing more with less. It drives innovation (which as we all know has been a part of our Brand DNA from day one…we thrive on this). Innovation opens up new product lines and product positioning. Sustainability has added a 5th P to marketing ─ Product Stewardship . (very relevant as there are talks about the global product labeling) How your product/project affects the environment. (Airbill or Door Tag example) Increase customer experience, $500k cost savings and 234,000 lbs. of paper just from removing one ply of paper. It forces us to think differently as it drives innovation and new product developments as well as efficiencies that can reduce risk, save the company money all while building our brand value and loyalty. E arthSmart June, 2010
  • What are our customers saying: For more than 35 years, people around the world have welcomed FedEx into their communities and their daily lives. They have trusted us to deliver services to them in a highly reliable yet cost-effective manner. Today, they expect that same trust just in a more responsible way with respect for our environment . 7 countries, 5K participants Comprehensive action means: Balance of offering products and services to customers as well as Internal programs and reporting Very relevant for Gen Y audience Examples of companies that are sustainability leaders in their markets: IKEA SC Johnson Microsoft Wal-Mart E arthSmart June, 2010
  • Our competition has seen this as a good business opportunity and they are moving. And it seems to be working E arthSmart June, 2010
  • We just took possession of 10 more all electric vehicles for deployment in California. E arthSmart June, 2010
  • Many companies have seen a great opportunity to capitalize on this concern for environment and thoughtlessly flooded the marketplace with false or misleading green claims that have caused a greenwashed ( making claims without substantiation ), eco-cluttered and eco-saturated marketplace that has led to a wide distrust. This new reality means companies must communicate their sustainability strategies in ways that connect the customer-facing brand story (traditional advertising) with the authentic corp. back story to illustrate authenticity and trust. With this new back story comes a whole new vernacular for customers to learn . (footprint, GHG) And, as technology drives new levels of transparency , customers are becoming increasingly savvy and looking beyond our corp. advertising to proactively substantiate or find and share information on their own . (So, if something is misleading they have their own social network to get the word out) There is a paradigm shift…it’s not what a company says it’s what they do that matters . E arthSmart June, 2010
  • So how do we show our commitment in a trusting, transparent way…We do this through EarthSmart What originally started as an eco-branding strategy for power applications grew into our overarching corporate commitment intended to become a uniting concept that frames our sustainability efforts across all audiences. By definition: EarthSmart is our commitment to minimize our impact on the environment by integrating innovative sustainable practices into the way we work and the services we offer our customers. ES illustrates how FedEx is making smart choices today to deliver on a more environmentally sustainable tomorrow E arthSmart June, 2010
  • EarthSmart is intended to be aspirational to help our team members to think differently – we want them to start viewing their work & behaviors through a sustainability lens, so they can begin to think differently, more efficient and ultimately more sustainable To be successful, EarthSmart must be embraced corporate-wide, and EarthSmart strategies must be incorporated in all areas & channels and prioritized as a corporate objective. Like the Purple Promise, EarthSmart will be an important aspect of the FedEx culture. Purple Promise brands an invaluable aspect of our culture: the commitment to doing whatever it takes to deliver an outstanding experience. Similarly, EarthSmart should brand another long-standing but increasingly important aspect of the FedEx culture: our commitment to make the decisions and create innovations and solutions that will transform our company – and our industry – towards sustainability. EarthSmart extends the Purple Promise because it reaches beyond our customers to make a better world for everyone. E arthSmart June, 2010
  • E arthSmart June, 2010
  • An eco-branding and engagement platform a s a set of programs, EarthSmart allows us to communicate about our sustainability efforts and encourage innovation, team member engagement and philanthropy Specifically: Communicates about FedEx sustainability goals and efforts under one umbrella concept. Builds brand and encourages innovative solutions by communicating about specific FedEx efforts to internal and external audiences. It brings to life our commitment to innovative, environmentally sustainable solutions and gives customers one more reason to choose FedEx. ES branding is unique to FedEx. There is no environmental label that would cover all of our business lines. Creates an extremely motivated workforce that contributes to FedEx sustainability efforts through their knowledge, actions and ability to communicate about FedEx commitments and progress. It must become a commitment and mindset for our team members to make smarter choices and create a sense of pride in our company. Encourages strategically aligned environmental philanthropic efforts. To be strategic and effective, the EarthSmart platform needs to help FedEx achieve business, sustainability and workplace goals. E arthSmart June, 2010
  • When our team members across all parts of FedEx learn about our EarthSmart efforts, they will see their actions and decisions as key to helping FedEx run more efficiently and smarter. E arthSmart June, 2010
  • Team members will have a sense of pride as they see how their actions contribute to EarthSmart FedEx. E arthSmart June, 2010
  • … FedEx shares my commitment to be more environmentally sustainable… I choose FedEx E arthSmart June, 2010
  • We no longer invest in the traditional media channels like we did even a few years ago and expect to be communicated to. They expect to be able to communicate back. E arthSmart June, 2010
  • E arthSmart June, 2010
  • You need to click on the screen to start the slide show. If you click again it will stop it. E arthSmart June, 2010
  • E arthSmart June, 2010
  • E arthSmart June, 2010
  • E arthSmart June, 2010

Fed Ex - Focusing on the future, Len Hostetter Presentation Transcript

  • 1. FedEx: Focusing on the Future Len Hostetter Vice President, FedEx Brand Engagement Marketing June 24, 2010
  • 2. Executive Summary June 2010 Focusing on the Future AMA Conference
    • The FedEx Brand
    • FedEx Customers, the present & future
    • EarthSmart
    • Social Media
    • Conclusion
  • 3. The FedEx Brand
    • FedEx is now 36 years old. When FedEx began operations:
      • First -class postage was eight cents
      • Oil embargo sent gas prices skyrocketing to 55 cents/gallon
      • We only served the U.S. then and were shipping 150K packages per day. We had $750M in revenue but our goal at the time was to be the first company to reach $1B within 10 years
      • We reached that $1B mark and today our revenues are $35B and we handle over 8M shipments per day. We also:
      • Serve more than 220 countries/territories
      • Handle almost 95% of world’s GDP in 24–48 hrs
      • Have 275K fantastic team members worldwide
      • First-class postage, has gone from 8 cents to 44 cents and the days of 55 cents-a-gallon gasoline is long gone
    June 2010 Focusing on the Future AMA Conference
  • 4. The FedEx Brand
    • Today, I want to share with you how we manage the FedEx brand in this fast evolving world and how we are positioning the brand for the future
    • We aggressively manage our brand – it doesn’t happen by accident. We manage it, measure it and monitor it. We never take our leadership position for granted and know that we must stay relevant for the future
    • We manage our brand through:
      • Our People
      • Our Service
      • Our Go-to-Market strategy
    June 2010 Focusing on the Future AMA Conference
  • 5. FedEx Customers, the Present & Future June 2010 Focusing on the Future AMA Conference
    • FedEx is focused on three distinct generations of current and future customers:
      • Baby Boomers (46-64 years old)
      • Gen X (31-45 years old)
      • Gen Y (10-30 years old)
      • Customers in these three groups have different perspectives which effect their approach to decision making and loyalty to brands
      • Our goal is to understand them and make sure our brand is relevant to them all
  • 6. Three “generations” of customers are important near term Source: National Center for Health Statistics, 2002 June 2010 Focusing on the Future AMA Conference 46-64 years old 31-45 years old 10-30 years old
  • 7. “ When I first joined the workforce, my office looked like this…” June 2010 Focusing on the Future AMA Conference
  • 8. What Matters to Future Generations June 2010 Focusing on the Future AMA Conference
    • In order to be relevant to future generations we must focus on what matters to them
    • More than ever being an environmentally responsible company is important to all three generations, especially Gen Y
    • Gen Y expects connectivity:
      • In their personal lives
      • In their workplace
      • And from brands they do business with
    • Today we will look at a few of the ways that FedEx is addressing those needs
  • 9. The environment is top of mind June 2010 Focusing on the Future AMA Conference
    • Heightened business and customer awareness about the environment
    • Integrated into customer purchasing decisions
    • The environment has become a modern responsibility
  • 10. Sustainability is…
    • At the core of survival
    • About doing more with less
    • Drives innovation and new product developments
    • Encourages efficiencies
    June 2010 Focusing on the Future AMA Conference
  • 11. Customers are demanding more
    • According to 2009 ImagePower Global Green Brands Survey, consumers say:
      • It’s important for companies to be green
      • They will spend more on green products in the coming year
      • Trust a variety of sources to inform their green purchase decisions
      • Expect companies to take comprehensive environmental action
      • No company has established itself as a dominant global green brand, but many are recognized in specific markets
    June 2010 Focusing on the Future AMA Conference
  • 12. The competition is moving
    • Domestically and internationally, our competitors are aggressively marketing their sustainability efforts
      • UPS Decision Green
        • Reusable envelopes
        • Carbon offset shipments
      • DHL GoGreen
        • 100% recycled content packaging line
        • Carbon offset shipping
      • TNT Planet Me
        • Code Orange carbon count
    June 2010 Focusing on the Future AMA Conference
  • 13. FedEx recent accomplishments
    • FedEx Ground installs the nation’s largest rooftop solar-electric system at the distribution hub in Woodbridge, N.J.
      • The 2.42 megawatt solar-electric system covers approximately 3.3 acres of rooftop space with approximately 12,400 solar panels
      • The system is capable of producing a projected 2.6 million kilowatt hours of electricity a year and could provide up to 30 percent of the hub’s annual energy needs
    • FedEx acquired 11 Boeing 777 aircraft that provide greater payload capacity
      • Using 18 percent less fuel than planes in our current international fleet
      • These replacements will also significantly eliminate carbon emissions that would have otherwise occurred
    June 2010 Focusing on the Future AMA Conference
  • 14. What you do isn’t enough - It has to be communicated
    • Brands need more sophistication in their communication approach
    • What we say and how we say it are critical to protect the brand
      • FedEx Sustainability Messaging Platform
        • Thoughtfully
        • Transparently/no greenwashing
        • One voice
    • We must align the FedEx environmental messaging platform across
      • Marketing
      • Corporate Communications
      • Operating companies
      • Regions
    June 2010 Focusing on the Future AMA Conference
  • 15. EarthSmart is how we will support our commitment June 2010 Focusing on the Future AMA Conference
  • 16. EarthSmart Goals
    • Differentiate - Differentiate FedEx as an sustainability leader and build internal and external brand by communicating about environmental solutions
    • Innovate - Recognize and encourage innovative ideas and solutions around FedEx strategic environmental areas
    • Align - Facilitate the connection between our business, sustainability and workplace strategies
    • Communicate - Tie FedEx environmental programs under one communications umbrella
    • Be Credibile - Ensure that environmental improvements are credible, quantifiable and realized
    • Integrate- EarthSmart must be embraced corporate-wide
    June 2010 Focusing on the Future AMA Conference
  • 17. EarthSmart is flexible June 2010 Focusing on the Future AMA Conference Program Focus How Team Members Are Engaged Responsible Group EarthSmart Solutions Innovation & Branding program Allows team members to submit innovative ideas. Sustainability Global Brand Management EarthSmart @ Work Employee Engagement Integrates sustainable projects and programs into the way we work. Collaborative effort led by Workplace Comms EarthSmart Outreach Philanthropy and Volunteering Allows team members and FedEx to contribute to the community in environmentally-focused ways. Global Citizenship
  • 18. EarthSmart is flexible June 2010 Focusing on the Future AMA Conference June 2010
  • 19. EarthSmart is action “ I don’t need fuel to cover my route.” June 2010 Focusing on the Future AMA Conference
  • 20. EarthSmart is empowering “ I am EarthSmart.” June 2010 Focusing on the Future AMA Conference
  • 21. EarthSmart is commitment “ I choose FedEx because its values align with mine.” June 2010 Focusing on the Future AMA Conference
  • 22. Social Media
    • In order to be relevant we must communicate in new ways
    • Today, Small Businesses are investing over 37% of their media dollars in the interactive space while large corporations are currently averaging 13% (Forrester Research)
    • Our Go-to-Market strategy is to “fish where the fish” are
        • When you look at customer expectations, 42% of online adults said they expect to engage with their favorite brands through interactive channels
        • New consumers today don’t know about our history and haven’t seen our classic commercials. We’ve got to reach them in new spaces
    June 2010 Focusing on the Future AMA Conference
  • 23. I AM FedEx
    • I AM FedEx is an internal and external campaign that was designed to honor our people, celebrate their stories of personal and professional achievement and define them as the differentiator that makes FedEx one of the most admired companies in the world
    • Campaign includes videos, posters, and podcasts hosted on iamfedex.com
    • Site acts as a media distribution point for other channels:
      • Internal (fedexcares.com; earthsmart.com; csr.fedex.com)
      • External (Facebook, YouTube, Twitter)
    June 2010 Focusing on the Future AMA Conference
  • 24. Click Image to View Coach Dave I am FedEx: Videos June 2010 Focusing on the Future AMA Conference
  • 25. You Tube Advertising Videos
    • For the first time last year, we distributed a brand messaging campaign solely via digital video content on YouTube, which was called “1-2-3 Succeed”
    • We received 1 million views in six months, well ahead of our goal
    • FedEx is also encouraging our audience to interact with and distribute these videos through blogs, embedding and social networking
      • This means we’re spending less to reach more of the people that we really want to reach
    June 2010 Focusing on the Future AMA Conference
  • 26. 1-2-3 Succeed Video June 2010 Focusing on the Future AMA Conference
  • 27. Summary
    • In conclusion, we’ve worked hard at our brand management, and FedEx is one of the most respected in the world. Recent accolades include:
      • 7 th in Fortune’s World’s Most Admired Companies, 2009
      • Fortune’s “100 Best Places to Work,” 2009 (12 th time in 13 years)
    • We never take our leadership position for granted. We must stay focused on the future and on the demands of our future customers. Some of this year’s accomplishments include:
      • Achieving an 8.33 percent reduction of aircraft emissions intensity since 2005
      • Increasing vehicle fuel efficiency by about 14 percent
      • Connecting with our customers through social media to engage them, learn about their needs, and deliver on our promise
    June 2010 Focusing on the Future AMA Conference