Business Objectives

FedEx Marketing Mix

Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed to solely transport packages and documents. He wrote a Yale term paper on this idea and received a C. His professor thought it would never work. Fortunately for Frederick Smith, he did not take it to heart and ended up building that company he dreamed of.

FedEx Express now delivers about 3.7 million packages per day throughout the United States and to some 210 countries worldwide.

The company operates a fleet of more than 660 aircraft and some 47,000 motorized vehicles and trailers.

FedEx offers a wide range of services for many different people, including FedEx Same Day, FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx Express Saver, FedEx Ground U.S., and FedEx Home Delivery.

This brief study will discuss the four Ps of marketпÑ--Ð...ing as they apply to Federal Express services, seeking to demonstrate how the entire marketпÑ--Ð...ing function can be seen in the operation of these four areas, and to be able to suggest possible courses of action.

Price

The main factors that influence the price charged by FedEx are the costs of gas, promotions, and market research.

The price that FedEx charges on the services now is lower than other competitors (UPS and DHL). The price of a FedEx overnight letter is $11 compared to UPS and DHL prices of $12 and $13 respectively.

As FedEx managementпÑ--Ð...s policy is to maximize profits, they use the cutthroat business technique by pricing their services at high prices and hoping the