Case Analysis: FedEx's Customer Value Funnel and Marketing Strategies

This case analysis examines FedEx, a renowned logistics company, focusing on its customer value funnel and marketing strategies. It begins with an analysis of macro-environmental factors, including economic, political, legal, and technological aspects impacting FedEx. The analysis explores FedEx's value proposition, which emphasizes guaranteed and fast delivery, and how this creates superior customer value. The paper then delves into the company's marketing strategies to improve its e-commerce market position, including advertising on social media, updating the e-commerce website, and retargeting. The analysis highlights the importance of these strategies in attracting and retaining customers, ultimately enhancing business performance. The paper references several academic sources to support its claims.

Case Analysis
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Running head: CASE ANALYSIS

CASE ANALYSIS
CVF Analysis
The customer value funnel analysis of FedEx begins with the analysis of the macro
environmental factors. FedEx is a world renowned company Logistics Company which is
profitable in nature but it still faces economic problem in the forms due to economic downturn
and terrorism activities. The natural and physical problems which are encountered by the
company are related to delivery and mostly overnight delivery. One of the major political and
legal issues for the company is noise as the landing and take-off of the cargo lanes creates noise
pollution for the residents which later translates into political and legal issue. As opined by
Nenonen & Storbacka (2014) another legal issue which the company faces is access to markets
and airports as in various countries in which the company operates experiences issues like
distribution of parcels by foreign companies owing to the monopoly market conditions of those
countries. The company performs brilliantly in context of the technological factor of the macro-
environment as FedEx implements top quality technological advancements in their day to day
operations.
As opined by Ying-Pin (2013) FedEx constantly seeks collaborative partnerships with other
organizations in order to grow their business which is evident from their partnership with US
Postal Services, AT&T and Kodak. The main competitor of FedEx are UPS and Deutsche Post
World Net and the company has maintained its high level of competitiveness with the rival
companies by diversifying away from its core U.S Express Business and assembling a ground
transportation network in the US. FedEx is a little selective regarding it suppliers and they enter
into contract with the best supplier available in the industry which is evident from the fact that it
entered into a 20 year contract with one of the best in the industry, GE Engine, in order to
maintain its fleet of plane. Though there is no such regulation regarding package delivery in the
US and FedEx meets with the safety requirements regarding the transportation of cargo.
FedEx creates value for their customers by customers make life easier for the customers of the
company as it does not just simply offers fast delivery but it also offers guaranteed delivery by a
specified time.
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CASE ANALYSIS
The customers of the company perceive the value of the company as superior as FedEx exceeds
the expectations of their target customers by delivering their packages to the customers at the
least and fastest possible time, which the customers seek.
Concepts of Value Proposition
As opined by Töytäri (2015) the concepts of value proposition which leads to customer
satisfaction, brand loyalty, retention, long term relationships and enhanced business performance
are the products of the company are unique in nature, the prices offered by the company are
lowest, the company makes things easier for the customers and the company takes ownership of
a problem. FedEx has the value proposition that it does not just simply offers fast delivery but it
also offers guaranteed delivery by a specified time and the guarantee given by the company to its
customers make life easier for the customers of the company. As stated by Yeh (2015) the value
proposition of making things easier by FedEx helps in enhancing the rate of customer
satisfaction, helps in developing brand loyalty among the customers, aims at maintaining long
term relationships with the company and helps in enhancing the business performance of the
company by attracting new customers and retaining old customers.
Marketing Strategies
The marketing or business strategies that FedEx needs to pursue in order to improve market
position in e-commerce are as follows:
Advertising in social media- Social media is considered as one of the most cost-effective
platforms and therefore FedEx should consider advertising in different social media platforms
such as Facebook, Twitter, LinkedIn and Instagram in order to improve their market position in
e-commerce. As stated by Torrence (2015) as majority of the target customers of the company
are active in social media platforms, FedEx can take advantage of using social media
advertisement for developing their e-commerce market position as it will help in attracting more
customers.
Updating the e-commerce website- FedEx should also focus on updating the e-commerce
website of the company in order to create more interests and awareness among the customers of
the company who visit the e-commerce website of the company. As stated by Goyal (2017) the
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CASE ANALYSIS
updating of the e-commerce website of the company lends a fresh look to the website of the
company which many customers seek for and therefore it can help FedEx in improving the
market position in e-commerce. The design of the new website of the company should be based
on the latest trends and the search queries of the target customers of the company.
Retargeting- One of the most effective marketing strategy which can be implemented by FedEx
in order to improve market position in e-commerce is retargeting as majority of the customers do
not convert on their first visit to the website of the company and therefore in order to capture
those customers it is very important for the company to retarget those customers by running re-
targeting ads on the website of other companies so that when customers visit those particular
website they get aware of the company and therefore plan to revisit the website of the company
which will help FedEx to improve their market position in e-commerce.
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CASE ANALYSIS
References
Goyal, L. (2017). Leading digital strategy: Driving business growth through effective E-
commerce. Vikalpa, 42(2), 128-130. Retrieved from doi:
http://dx.doi.org/10.1177/0256090917703755 Accessed as on 17/11/2018
Nenonen, S., & Storbacka, K. (2014). Management of customer assets for increased value
capture in business markets. Management Decision, 52(1), 101-121. Retrieved from doi:
http://dx.doi.org/10.1108/MD-04-2013-0213 Accessed as on 17/11/2018
Torrence, C. (2015). Five truths in building an effective digital marketing and E-commerce
strategy. Manufacturing Business Technology, Retrieved from
https://search.proquest.com/docview/1669859814?accountid=30552 Accessed as on
17/11/2018
Töytäri, P. (2015). Assessing value co-creation and value capture potential in services: A
management framework. Benchmarking, 22(2), 254-274. Retrieved from doi:
http://dx.doi.org/10.1108/BIJ-07-2013-0075 Accessed as on 17/11/2018
Yeh, Y. (2015). Corporate social responsibility and service innovation on customer loyalty. The
International Journal of Bank Marketing, 33(6), 823-839. Retrieved from
https://search.proquest.com/docview/1709989909?accountid=30552 Accessed as on
17/11/2018
Ying-Pin Yeh. (2013). The impact of customer advocacy on customer perceived value. Journal
of Business and Retail Management Research, 08(1) Retrieved from
https://search.proquest.com/docview/1700402609?accountid=30552 Accessed as on
17/11/2018
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