This document provides an overview of FedEx's global marketing strategy and operations in four countries. It discusses how FedEx uses the 4 P's of marketing - product, price, place, and promotion - in the United States, Japan, China, and Johannesburg, South Africa. While the implementation of the 4 P's varies slightly between countries due to factors like language, culture, customs regulations, and pricing, FedEx's overall global strategy remains largely consistent with a focus on reliability, efficiency, and customer service.

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The World on Time
Michael Hovan III
American Intercontinental University
Unit-5 Individual Project
MKTG205 Principles of Marketing
04/24/2016

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Abstract
Within the body of this paper will be found, defining research on how FedEx uses the Global
Marketing Strategy to increase its customer base. Also how FedEx uses the 4 P’s of marketing
and how FedEx operates in 4 different countries as required. Also, in the body of this paper will
show how FedEx operates in the United States, Japan, China, and Johannesburg, South Africa.
Furthermore, in these writings will include, the implementation of competition, the targeted
market, the product strategy, the distribution strategy, the communication strategy, the pricing
strategy, and the differences of implementation from country to country. Finally, there will be a
conclusion on how the writer feels FedEx performs this service and maintains a great Global
Marketing Strategy.

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The World on Time
Providing an intangible product such as, service to potential consumers who can neither
see nor touch the product, is usually very difficult to market. FedEx has built its reputation on
trust and reliability, so within this writing, facts and research will prove that FedEx has a defined
Global Marketing Strategy, (investors.fedex.com/company-overview).
The main line of business for FedEx is Logistics, specifically, air and ground delivery
specializing in “Next Day Air,” (investors.fedex.com/company-overview). In 1971, founder Fred
Smith’s inspiration for FedEx had no “little” plans, (technologyreviews.com/the-miracle-of-
memphis). The result is the largest air-cargo company in the world. FedEx started out as a
shipping company, and has now turned into a multibillion dollar business with revenues expected
to exceed 42.7 billion dollars this fiscal year, (studymode.com/FedEx-Global-Marketing, 2016).
As required for this Individual Project, here are four of the countries FedEx operates; the United
States, Japan, China, and Johannesburg, South Africa.
In the United States, where this corporation began, competition is limited to one other
company and that is, UPS, the United Postal Service. Creating new competitive strategies for
FedEx comes by way of cutting fuel costs and using high efficiency trucks and air-craft. This
saves the customer money on shipping and receiving costs and implements how competitive
FedEx intends to be (Introduction to Marketing, 2012). Implementing the Targeted Market for
FedEx comes by way of private and commercially owned business. FedEx also targets residents
of the United States especially during the holiday seasons.
Product strategy for FedEx in the United States is implemented by establishing the
culture as each employee helps in the achievement of FedEx’s reputation of reliability.

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Implementation of Distribution Strategy comes by way of two entities, private and commercial.
The channel of distribution for FedEx is both direct and indirect, (Introduction to Marketing,
2012), meaning that some packages are shipped directly and some have several stops along the
course for delivery, depending on destination. The packages that have more than one stop along
the way can be referred to as an indirect distribution channel, (Introduction to Marketing, 2012).
Implementation of Communication in the United States for FedEx is reflected on the time
executives devote to it. According to T. Michael Glenn, president and CEO of FedEx Services,
“Communication is the center of everything. You can’t execute strategy if you can’t
communicate about it,” (sloanreview.mit.edu, Apr. 5, 2005). It is important for marketers to
remember when providing a service, that the customer is thinking about themselves and their
needs, (Introduction to Marketing, Ch.4, 1st ed., 2012).
Implementation of Price Strategy in the United States for FedEx is where the competitor
really plays a large part. In 2015, UPS started pricing packages not only by weight, but now by
the size of the package. Industry experts think that this could be profitable for courier companies
such as, UPS and FedEx. The real question would be “How will it affect customer loyalty?”, and
industry experts feel along with myself that it will increase profits and with no consumer
disloyalties, (Introduction to Marketing, Ch. 4, 1st ed., 2012).
In Japan, FedEx has a subsidiary called, FedEx Japan, that operates under the same
marketing strategy as FedEx US except, Japan requires shipments coming into the country to
undergo an Import Declaration Process. What that means is the process is carried out by either
the actual importer or by a Customs broker who is authorized by the importer,
(smallbusiness.fedex.com/japan). The implementation of all fields required remains identical
except communication strategy and pricing strategy. Because of the language barrier, FedEx

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Japan has employees’ that speak Japanese to help in this barrier from country to country. Not
only do they hire Japanese residents to full fill these strategic positions, but do as well worldwide
to help in other countries because of certain language barriers. The pricing strategy as defined by
the e-book for this course (Introduction to Marketing, 2012, Ch. 1 & 2, 1st ed.) states, pricing
strategy refers to the method companies use to price their products and services. With FedEx and
their subsidiaries, pricing does vary from country to country based on economy factors. Under
the General Preferential Tariff (GPT), Japan allows preferential duty treatment for many goods
that are imported from different countries. Asia Pacific Economic Cooperation (APEC) is
considering the progressive elimination of tariffs among the Pacific Rim members (Brunei,
Canada, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, North and South Africa, the Philippines, Singapore, South Korea, Taiwan, Thailand, and
the United States), (smallbusiness.fedex.com/international).
In China, FedEx added another subsidiary which is, FedEx China to handle a population
of 1.3 billion people – that’s more than four times the population of the United States. China has
become the world’s largest exporter and in 2010 the United States became the number one
destination for those goods. As with the United States and Japan, the implementation of
competition, target market, product strategy, and distribution strategy, they are identical. With the
communication strategy and pricing strategy, they are very similar to that of Japan and FedEx
China hires Chinese residents along with people from various countries to help with many
different language barriers. The pricing strategy in China is somewhat the same as Japan, but
being a communist country and the highest rated in air trafficking for FedEx, pricing is
somewhat lower than in other countries. Customs rules and regulations are all handled and

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enforced by the Chinese government, so some of the rules and regulations differ from other
countries.
In Johannesburg, South Africa, FedEx uses all its subsidiaries mentioned including
FedEx U.S. for importing and exporting freight from one country to another. Customs are quite
different in South Africa when shipping in or out of this country because the dutiable values of
goods imported into South Africa and the Southern African Customs Union (SACU) is calculated
by the freight on board price in the country of export, in other words, FedEx has to pay a
calculated price for freight to the Southern African Customs Union coming into this country.
As with the other three countries mentioned, the implementation of competition, targeted
market, product strategy, distribution strategy is the same. Keep in mind that the only
competition that FedEx has is UPS, as mentioned previously. The implementation of
communication is identical as the United States because the primary language is English, so no
language barriers exist. FedEx International has on staff employees that are bi-lingual to aide in
the event that any language barriers may happen (smallbusiness.fedex.com/international). The
implementation of pricing strategy drastically lowered for FedEx International, and on June 20,
2013, announced that it had completed the first stage of a strategic acquisition by signing
agreements with its current service provider Supaswift (Pty.) Ltd in South Africa. This will
enable FedEx International to drop pricing for importing and exporting of freight in and out of
Johannesburg, South Africa.
In conclusion, FedEx uses the global market strategy in each country mentioned,
practically the same way. That means the 4 P’s of marketing (exclude product) are the same, the
implementation strategies are identical and the service provided is the same. Remember, FedEx’s
slogan, “The World on Time” is what makes this company a promotional winner. In the e-book

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for this course concerning international marketing, there are five different dimensions in
understanding cultural differences. According to Researcher Geert Hofstede the categories are;
power distance, uncertainty avoidance, individualism, masculinity, and long term orientation,
(Introduction to Marketing, 2012, Ch. 9, 1st ed.). Power distance, uncertainty avoidance,
individualism, masculinity, and long term orientation have been researched thoroughly and
applied on the countries culture. When companies and residents need to ship their products,
FedEx provides the service and although that sounds simple, there are many differences and
obstacles as read in this paper that all companies have to deal with when going internationally
with their product and or services.

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References
Board, Editorial, 2012, Introduction to Marketing, 1st ed. Ch. 1-10,
Appendix B, Retrieved from http://www.wordsofwisdom.com
/contacts/asp
Carter, S., 2016, Global Marketing-The International Market, 2016, 1st ed.
Retrieved from http://www.studymode.com/essays/International-
Marketing-Global-Marketing-623411.html
Hofstede, G., & Hofstede, G. J., (n.d.). Dimensions of national
cultures. Retrieved from http://www.geerthofstede.nl/
cultures/dimensions-of-national-cultures.aspx
http://smallbusiness.fedex.com/home/html, Retrieved from
http://smallbusiness.fedex.com/international
Howell, R. A., Beck, K. A., & Argenti, P. A., April 15, 2005, The Strategic
Communication Imperative,1st ed., Retrieved from http://sloanreview.
mit.edu/review/the-strategic-communication-imperative/

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