FedEx: Focusing on the Future Len Hostetter Vice President, FedEx Brand Engagement Marketing June  24, 2010
Executive Summary  June 2010 Focusing on the Future AMA  Conference  <ul><li>The FedEx Brand </li></ul><ul><li>FedEx Custo...
The FedEx Brand <ul><li>FedEx is now 36 years old.  When FedEx began operations:  </li></ul><ul><ul><li>First -class posta...
The FedEx Brand <ul><li>Today, I want to share with you how we manage the FedEx brand in this fast evolving world and how ...
FedEx Customers, the Present & Future June 2010 Focusing on the Future AMA  Conference  <ul><li>FedEx is focused on three ...
Three “generations” of customers are important near term Source: National Center for Health Statistics, 2002 June 2010 Foc...
“ When I first joined the workforce, my office looked like this…” June 2010 Focusing on the Future AMA  Conference
What Matters to Future Generations June 2010 Focusing on the Future AMA  Conference  <ul><li>In order to be relevant to fu...
The environment is top of mind June 2010 Focusing on the Future AMA  Conference  <ul><li>Heightened business and customer ...
Sustainability is… <ul><li>At the core of survival  </li></ul><ul><li>About doing more with less </li></ul><ul><li>Drives ...
Customers are demanding more <ul><li>According to 2009 ImagePower Global Green Brands Survey, consumers say: </li></ul><ul...
The competition is moving <ul><li>Domestically and internationally, our competitors are aggressively marketing their susta...
FedEx recent accomplishments <ul><li>FedEx Ground installs the nation’s largest rooftop solar-electric system at the distr...
What you do isn’t enough - It has to be communicated <ul><li>Brands need more sophistication in their communication approa...
EarthSmart is how we will support our commitment June 2010 Focusing on the Future AMA  Conference
EarthSmart Goals <ul><li>Differentiate  - Differentiate FedEx as an sustainability leader and build internal and external ...
EarthSmart is flexible June 2010 Focusing on the Future AMA  Conference  Program Focus How Team Members Are Engaged Respon...
EarthSmart is flexible June 2010 Focusing on the Future AMA  Conference  June 2010
EarthSmart is action “ I don’t need fuel to cover my route.” June 2010 Focusing on the Future AMA  Conference
EarthSmart is empowering “ I am EarthSmart.” June 2010 Focusing on the Future AMA  Conference
EarthSmart is commitment “ I choose FedEx because its values align with mine.” June 2010 Focusing on the Future AMA  Confe...
Social Media <ul><li>In order to be relevant we must communicate in new ways </li></ul><ul><li>Today, Small Businesses are...
I AM FedEx <ul><li>I AM FedEx is an internal and external campaign that was designed to honor our people, celebrate their ...
Click Image to View Coach Dave I am FedEx: Videos June 2010 Focusing on the Future AMA  Conference
You Tube Advertising Videos <ul><li>For the first time last year, we distributed a brand messaging campaign solely via dig...
1-2-3 Succeed Video June 2010 Focusing on the Future AMA  Conference
Summary <ul><li>In conclusion, we’ve worked hard at our brand management, and FedEx is one of the most respected in the wo...
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Len Hostetter - FedEx Services

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Presented at Chicago AMA's BrandSmart 2010, June 24 at the UIC Forum.

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Len Hostetter - FedEx Services

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

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