Federal Express (now FedEx) was founded in 1971 by Fred Smith to provide overnight delivery services via aircraft. This was novel at the time as most cargo was shipped on passenger planes during the day. FedEx began with service between 12 cities and expanded aggressively. Despite early financial struggles, FedEx saw increasing demand and profits as it grew its network throughout the 1970s. FedEx revolutionized the delivery industry and achieved great success through its visionary concept of overnight delivery, commitment to customer service, and large investments in its people and infrastructure.

1. CASE 02:
FLYAWAY SUCCESS
(How Federal Express Became The Courier of the World?)

2. TODAY’S AGENDA
• Summary of the Case
• Current Scenario
• Learning from the Case
• STDP of Federal Express
• Conclusion
• AD Campaign’s

3. Summary of the Case
• The Federal Express Company was started by Fred Smith in 1971
• Before this he use sell aircraft, due to which he was not happy with
his job. He wanted to start a company that will allow him to meet
peoples demand in overnight shipping of cargo
• For which he wrote a paper for his for an economics class at Yale
University on ‘outlining overnight delivery service in a computer
information age’
Frederick W. Smith Founder of Federal Express

4. • So, Smith realised that this was the business opportunity he had been
looking forward too
• He would start to the first airline dedicated exclusively to meet the
requirement of companies desperately in needs of parts
• It would work because the air-cargo service on offer were almost
non-starters
• Previously, the cargo were shipped in the bellies of passenger planes
and, as most planes scheduled their flight during day to suit travellers,
delivery was rarely possible the next day
• To over come this problem and to make ends meet smith started
Federal Express

5. • So, in 1971, Smith Started federal express which later was shorted to
FedEx Express
• After incorporated in 1971, it still lacked financially for the company
to be functional for his enterprise. So, many people doubted the
viability of an overnight delivery service
• Smith hired two firms to study his plan and potential customer base.
Their findings sent Smith into raptures – annual business in the US in
excess of $ 1 billion
• Smith promptly tossed in $4 billion and persuaded investors to add
another $80 million. In 1972, Federal Express bought its first fleet of
33 Dassault Falcons. Each falcon had a capacity of 6,500 pounds and
could cover a range of 1,400 to 1,800 miles
• In March 1973, FedEx kicked off the Express delivery concept.
Targeting 12 cities in the east and the Midwest were the markets. By
dawn of next day seven packages had been delivered

6. • The 12 cities were not sufficient to make profit deal out of it
• FedEx also redefined its service commitment by introducing new
service products:
• Priority One: Door-To-Door delivery by noon on the next business
day
• Economy Air: Providing Door-To-Door delivery by second business day
• The company reactivated its system on 17 April, 1973. The network
had been expanded to include 25 cities (and its radius of 25 Miles
around them). By next morning, 186 packages had arrived at FedEx
• But still they were facing monetary issue heavily, they required money
for expansion of network

7. • In November 1973, another $52 million were pumped into FedEx by
investor. In February 1975, FedEx finally emerged from the red by inking a
profit of $20,000, erasing a two-year run of average monthly losses of more
than $1 million
• The FedEx stood by its ‘People-Service-Profit’ moto. Employee satisfaction
was accorded the highest priority. Smith believed that keeping employees
happy ensures the highest levels of service and, with such levels of service,
profits would automatically flow in
• In 1975, FedEx engineered a coup of sorts, it reached out directly to
potential customers through mass-media advertising. The trend among
cargo carriers had been to advertise in professional or trade journals. But
FedEx spend $350,000 on publicity in consumer magazines and more
radically on television – ‘America, you’ve got a new airline,’ was the FedEx
tagline. America responded heartily
• By the end of 1975, daily package volumes rose to 13,500, and revenues
touched $60 million. The figures for 1976 were even better. The service
received 19,000 packages daily for delivery to 75 cities, and generated $96
million in turnover

8. • In 1972, FedEx had its first computer, a Burroughs 1700. In six years
later, with daily volume peak measuring 40,000 packages
• In 1980, FedEx added two IBM mainframes to running at fraction of
their capacity were installed at FedEx
• The Digitally Assisted Dispatch System (DADS) this added them to
track the courier from Door-To-Door Activity. Even they introduced
Zap Mail, FedEx PowerShip, automated shipping capabilities and
FedEx InternShip, which allows customer to book packages on the
Internet
• In 1979, they undertook its first ‘trans-border’ service into Canada. In
1983,the first US company to achieve revenues of $1 billion in 10
years, without relying on acquisitions or mergers
• The next year, FedEx launched its international operations in Europe
And the Asia Pacific, following the acquisition of Gelco Express
International

9. Current Scenario (FedEx)
FedEx Express
• Express service with overnight shipping service
FedEx Global Logistics
• FedEx Logistics provides a full suite of supply chain solutions, specialty transportation, cross border e-commerce
technology services, customs brokerage, and trade management tools and data
FedEx Office
• FedEx Office provides reliable service and access to printing and shipping. Services include copying and digital
printing, professional finishing, signs, computer rental, and corporate print solutions
FedEx Freight
• FedEx Freight® is changing the LTL (less-than-truckload) industry by making it easy to ship fast-transit and economical
freight within one streamlined LTL network. With all-points coverage, one Bill of Lading, one invoice statement and
one pickup and delivery, FedEx Freight is creating a whole new future for LTL
FedEx Supply Chain
• FedEx Supply Chain. The company serves multiple industries and is a leader in non-asset-based transportation,
warehousing and distribution, and value-added services. It also works with reverse logistics processes, including
returns, recommence and recycling
FedEx Ground (Flat Rate Shipping)
• All packages designated for ground shipment go through one. When a package enters the hub, the shipping address is
scanned and entered into the FedEx system. The package eventually reaches a truck heading to one or more
destination hubs. Packages scheduled for local service go straight to a delivery vehicle

10. • FXE – FedEx Express
• FXSP – FedEx SmartPost
• FXG – FedEx Ground
• FXFE – FedEx Freight
• FDCC – FedEx Custom Critical
• FXO – FedEx Office
• FSDC – FedEx Same Day City
• Caribbean Transport Services
• TNT Express
• FedEx Home Delivery
• FedEx Freight Canada
• FedEx Logistics
• FedEx Air & Ocean Cargo Networks
• FedEx Cross Border
• FedEx Custom Critical
• FedEx Customs Brokerage
• FedEx Forward Depots
• FedEx Services
• FedEx Customer Relations
• FedEx Delivery Manager
• FedEx Office Print and Ship Centres
Current Service Products 2019

13. Learning from the Case
• The strategy lesson: Vision, conviction, and positioning were the
cornerstones of FedEx’s success
• ‘World on Time’ was the perfect positioning. This was well supported
by an aggressive strategy, service commitment, and focus on the
people factor
• In 1994 they transported 72 satellites from the US to launch site in
China and Russia. By this we understand the they are committed to
there delivery of product promise and help us to understand by
staying connected to rest of the world. And be committed to the
promise.
• ‘Thing Big and Start Small’ moto we learned from Fred Smith

14. STDP of Federal Express (FedEx Express)
Federal Express (FedEx Express) in India & World Wide:
• SEGMENTATION: GENDER: MALE & FEMALE (WORKING CLASS & COMPANIES)
• TARGETING: Its is targeting to Upper Middle Class & Multi National Company, In
Metro Cities majorly in Mumbai, Delhi & Bangalore
• DIFFERENTIATION: Get benefits FLAT SHIPPING CHARGES, NEXT DAY DELIVERY in
Metro Cities and Internationally
• POSITIONING: ‘World on Time’ & ‘People-Service-Profit’ (Vision, Conviction and
Positioning)

15. AD Campaign’s

16. AD Campaign’s – 1 (1975) (America you’ve got a new airline)

17. AD Campaign’s – 2 (1980)

18. AD Campaign’s – 3 (1982)

19. AD Campaign’s – 4 (1986)

20. AD Campaign’s – 5 (1990)

21. AD Campaign’s – 6 (A Day Of Possibilities)

22. AD Campaign’s – 7 (FedEx – Small Company)

23. AD Campaign’s – 8 (What's Inside 2019)

24. AD Campaign’s – 9 (Meet the FedEx Future)

25. CONCLUSION
• In the marketing of services, nothing succeeds like a service guarantee,
which means almost personalising the service. This is what the food
catering story has clearly demonstrated
• Gupta Rentals proves how a successful service business can be developed
from scratch. The contributing factors are: proper market study and
planning, right sales strategies, aggressive sales promotion and, above all
the right service mix
• Quality and price can compensate for many shortcomings in a service. If the
service product is very good and it is delivered at a very affordable price,
the service offering is fully positioned on these two parameters. The
Southend story exemplifies this
• The Citibank Gold Card exhibits a fine blending of the tangibles (the card
itself, ATM, Photocard, and CitiPhone) and the intangibles (other service
elements). This renders comprehensiveness to their marketing strategy
• The story of Global Trust Bank is one of confidence building in services and
trust banking (the staff sees the customer as an extension of themselves)
through unique image building and superlative performance
• Vision, conviction, and positioning are the cornerstones of FedEx's success.
‘World on Time’ is the perfect positioning. This is well supported by an
aggressive strategy, service commitment, and focus on the people factor