Fedex marketing Case Essay
Company analysis – Does Courier Pak (CP) make sense for Fed Ex
FedEx’s new product Courier Pak makes sense because of its’ high profit margin and potential to generate new volume. Out of the 3 services that Fed Ex provides, CP yields the highest profit margin at 66% while Priority-One is at 55% and SAS is only at 27%. In addition to this, the company believes that it will be able to boost up sale of CP from 1300 to 6000 packages per day. This shows that CP is the most profitable and huge potential for growth.
Customer analysis – Who needs CP? How large is the market? Is CP an economically viable product? Can FedEx do 6000 CPs a day?
If you look at the current market for Special-Handled Packages there is …show more content…
On the other hand, weakness of CP would be the size limitation of 12” by 15.5” and weight limit of 2-lb per package. However as CP is targeted at documents and small valuable items, this is the perfect size for such items. For customers wanting to deliver bigger packages, they can always choose Priority-One.
The last two analyses are opportunity and threats. We should consider the opportunity that we could exploit to our advantage, which is competition. Our objective value is high among consumers because we provided reliable timely shipping services that none of our competitors could provide. Our opportunity is that we could even charge higher price for this product and it would still have the same high demand. Lastly, our only threat is how to compete with our competitors. Fedex’s major competitor is Emery Air (61% unprompted recall for Emery against 12% for Fedex) Although Courier Pak has not been produced by other delivery service firms, we should increase our brand loyalty in order to boost our demand and sales. Therefore, we should consider all these four elements when choosing the right marketing strategies for Courier Pak.
First and foremost,