Essay on Fedex Courier Case

1117 Words Apr 16th, 2015 5 Pages
Jason Hwang, Hiro Ikeda, Niki Sohnly
MKTG 301
10.11.14

Federal Express Case

Company Analysis:
Courier Pak is an underrated service that is provided by FEC. Its profit margin is higher than all the other services provided (66%), and has huge growth potential. It has both great speed and reliability, making a service worth promoting.

Customer Analysis:
Currently, executives and their assistants are mainly using CP. The top three industries that use CP are Manufacturing and distribution, Advertising, and Printing and publishing. According to Exhibit 6, the market size of “emergency,” “rush,” or “special handling” delivery of small items/documents was around 870,000 per day.
CPs are economically viable. Sales currently average
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Adding 4700 more daily CP would amount to $38,775 in profits per day, assuming a profit margin $8.25.

Competition:
Competition for CP lies in the Emergency and Rush services. Emergency services received maximum speed and was the most costly. Purolator Courier Corporation, Shulman Sky Cab, Delta Dash are all companies that provide the service. However, the average Emergency service cost was $30, and CPs cost significantly lower. The average Rush cost was around $10, and although CPs are most expensive, they are at a competitive price by offering competitive advantages. The most specific service competitor is U.S. Postal Service’s Express Mail, which costs $6.00 per package.

How should FEC market CP? Which industries should FEC focus on?
FEC should market to those who are not “Executives,” as they already have them as customers, but rather any and all industries. The Manufacturing and Distributing industry uses the most CP monthly, and we would like to see the other similar industries use just as much. Any industry that transports small goods can utilize the service.
The 5 minimum purchase costs $62.50, which creates a barrier for those who are willing and able to send something within a tight time constraint. Envelopes should be provided for free, and charged upon the actual service of mailing out the package. Corporations enjoy flexibility. We believe that CPs should be marketed as a product that is great for reliability and speed, making a point that they

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