FedEx's unique operating strategy functions on three levels: competing collectively as one brand worldwide, operating independently to meet customer needs, and managing collaboratively to sustain relationships. FedEx's marketing and operations strategies were initially linked through slogans emphasizing overnight delivery and operational excellence. Their marketing was based on operational differentiation through innovations like their hub-and-spokes system and use of technology for tracking. Recent industry changes have hurt FedEx as some customers opted for slower delivery services in the soft economy, leading to declines in international and domestic express volumes.

1. Marketing (Operations Strategy)
Analyzed by Group 7 –
Parag Chaubey
Shashank Bhargava

2. Operations Strategy
The unique FedEx operating strategy works seamlessly -
and simultaneously - on three levels.
• Compete collectively by standing as one brand worldwide
and speaking with one voice.
• Operate independently by focusing on our independent
networks to meet distinct customer needs.
• Manage collaboratively by working together to sustain loyal
relationships with our workforce, customers and investors.

3. Marketing/Operations (Strategy)
Started with Identifying and catering 2 different opportunity
(conventional and Fast deliveries e.g. papers, computer parts
medicines etc.)
Their Marketing/Operations Strategy look linked initially in their
campaign slogans.
1. Twice as good as the best in business
2. Absolutely, Positively Overnight
3. Various Humorous ads
Their Marketing Strategy itself was based on Operational Excellence
else the sustained operations wouldn‟t have been Possible.
Hub and Spokes Concept (Memphis tenn)

4. The operations frontier, trade-offs,
and the operational effectiveness
Differentiation
Cost Leadership
Responsiveness
Fed Ex

5. Marketing Mix at FedEx
1. Product – The unique product introduced by FedEx was the
time based deliveries for a untapped random demand for
small packages i.e. Medicines , Papers etc.
2. Placements - The concept of Hub and Spokes, taken from
a telephone company switching system i.e. Memphis Intl
airport sorting hub in a Radial Distribution System
3. Promotion - Through Media in form of campaigns specially
to change from cold call approach to advertising and cutting
of sales jobs to invest as much as $ 1 million in Ads.

6. Unique Marketing Plan
• To target the “front door customers” also known as „Paper
mills of America‟. This market was not carefully studied and
had tremendous untapped potential.
• They under stood that the package is inanimate ,FedEx was
totally in charge of operations from pick up to delivery i.e.
customers are involved only at very start and very end of
supply chain.
• To Target the Decision Makers i.e. people who decide how to
send packages, which express delivery service to take up etc.

7. Unique Operations
• Non-Linear System: Creation of central hub at Memphis
Airport leading to efficient operations (lower costs) and better
care of packages
• Started the use of technology in terms of tracking the
consignment later i.e. use of CRT and CSA and Optical
Scanners. This enabled better tracing of packages at any
given point in time.
• Delivery confirmation call backs, Saturday pickups, variety of
service options added value.

8. (Marketing/Operations) ?
Scanning through the Case it looks like the operations and
Marketing are inseparable domains here,
It is more of marketing of operations such as
1. Timely Delivery in one day.
2. Marketing Campaign slogans talking about operational
excellence.
3. Strengths in Technology.
4. Edge over competitors basis timely delivery of high priority
items

9. Recent Times
Recent industry changes have hurt FedEx as some customers
have opted for slower-moving, no premium delivery services in
the soft global economy. Volume for FedEx‟s international-
priority-air freight business declined 3% in the company‟s fourth
quarter, which ended May 31, after falling 1% in the fiscal third
quarter. U.S. domestic-express volume fell 5% in the fourth
quarter, compared with a 4% decline in the third.

10. Thank You!!!