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SERVICE MARKETING

PRESENTATION REPORT

I. COMPANY BACKGROUND
Name: FedEx Corporation
Founded: 1971 (incorporated)
1973 (began operations)
Industry: Courier
Scope: 215 countries from > 360 airports all over the world
Workforce More than 140,000 employees worldwide
Volume Approximately 3.4 million packages and 10 million pounds of freight
daily
Air Fleet 654 aircraft, including:
71 - Airbus A300-600s
56 - Airbus A310-200/300s
13 - ATR 72s
26 - ATR 42s
79 - Boeing 727-200s
1 - Boeing DC10-10s
6 - Boeing DC10-30s
57 - Boeing MD10-10s
12 - Boeing MD10-30s
57 - Boeing MD11s
10 - Cessna 208As
242 - Cessna 208Bs
24 - Boeing 757-200s

DeliveryFleet More than 43,000 motorized vehicles

II. CASE QUESTION


1. Distinguish core, supplementary and facilitating services of FedEx?

1.1. Core services: Courier services including:


FedEx International Priority
Time-definite, customs-cleared, door-to-door delivery to more than 200 countries,
typically in 1, 2 or 3 business days, and next-business-day to thousands of U.S.
destinations.

FedEx International Economy


Economical, day-definite, customs-cleared, door-to-door delivery to major economic
centers, typically in 2-4 business days.

FedEx International Priority Freight


A time-definite, premium airfreight service for international shipments containing
unitized, forkliftable single pieces or skids above 68kg, delivery typically in 1, 2 or 3
business days.

FedEx International Economy Freight


An economical, day-definite, customs-cleared, door-to-door service for shipments greater
than 68kg destined to major markets in Asia, U.S., Canada and Mexico. Transit times are
typically 2-4 business days. Advance booking required.

FedEx International Broker Select


A flexible option combining the speed and reliability of FedEx International Priority with
the specialized expertise of your own broker, allowing unlimited number of commodities
per air waybill, and delivery either door to broker, or door to broker to destination.

FedEx International Priority Direct Distribution


Delivery of a bulk shipment from an international origin to multiple addresses within a
single destination country. The shipment clears customs as a single unit with delivery
time in just 2-4 business days. Virtually unlimited size and weight for individual pieces in
break-bulk shipment.

FedEx Import One


Allows you to import your shipments with FedEx International Priority or FedEx
International Economy. All shipping charges are quoted in your local currency.

1.2. Supplementary services:


• Consultation: Advice:
o When a shipment has arrived its destination, customers are advised in terms of
customs

• Hospitality: Greeting:
o Previous customers are quickly identified when they ring in
o All new customers within 24 hrs have a thank-you call and confirmation of
reservation
o Customer service number can be accessed any time

• Safekeeping: Baggage handling:


o Internet-based system allows customers to keep track of their packages
o Special software helps customers monitor, control their goods and improve
their warehouse
• Delivery: process of package delivery

• Tracking delivery: by email, reference, tracking number, using FedEx desktop

• Exceptions: timely response to customers requests (software: DADS)

• Packaging: packaging in variety of shapes and sizes and free of charge when
shipment is taken to FedEx.

1.3. Facilitating services:


• Information: Documentation:
o How to fill out an air waybill
o First-time customers are highlighted on daily call –sheet summaries
o A kit of information is delivered to new customers within two weeks of
their signing with FedEx.
o Software guides the users through preparation and information of
exporting
o Rates and transit times
o Manual guidelines for packing
o Service location & hours of operation

• Order-taking: FedEx supplies request form ( Available at


https://www.fedex.com/vn/supplies/?link=4)

• Procedure: software is designed to enable customers to complete transactions,


call for courier pickups, etc. through Internet

2. In what ways does this case illustrate risk and control theory and
management?

Types of risks and Theories applied:


 Functional risk: how customers are ensured their packages are delivered on time
and to the right places?
 Psychological risk: customers’ fears of poor performance (goods are damaged,
trouble with paper works, etc.)
 Behavioral Control:
o Software is provided for customers to keep track on their goods’
whereabouts and handle their returns and repairs (EC- Manufacturing, EC-
Return Management) using tracking numbers, reference or email.
o Customers can download preparation guides on filling airway bills,
commercial invoice or packaging on official website
o Customs Clearance Department expedites duties and taxes upfront on
behalf of customers.
 Temporal risk: there might be worries about unexpected delays of the delivery
 Cognitive Control: customers are informed of the delay and can choose among
alternative routes and transportation options for shipment (have software to predict
weather, traffic, etc.  FedEx plots alternative routes)

 Financial risks: will there be extra expenses and unexpected costs?


 Behavioral Control: Software (FedEx Ship Management) provides rate quotes so that
customers can begin their budgeting and accounting process immediately. In addition,
customer can go online to check rates and transit time.

III. APPLICATION CASE: MOBIFONE

Company background:
Name: MobiFone
Industry: Mobile Telecommunications
Founded: April 16, 1993
Staff: 3,000
Parent: VNPT
Coverage stations: 20,000

Subscription Growth from 1993 to 2010


Pie chart of market share – Quarter I 2009

Core services:
o Mobile networks
o Telecom services

Supplementary services:
- Hospitality/ Entertainment:
o Access to broadband internet (Fast Connect)
o Share pieces of music with friends (Fun Ring)
o Have background music played while making outgoing calls (Music Talk)
o Multi-network SMS, Web (MobiChat)
o Customers can keep in touch with anywhere in the world (International Roaming)
o Information (football, weather, exchange rates, etc.)is sent to customers
(Liveinfo)

- Security:
o Store customer’s phonebook in case of SIM Card is ruined or lost.(Fonebackup)

- Special Assistance:
o Transfer a part of customer’s account to another account (M2U)
o Missed calls are recorded and notified when the phone is turned on (Missed Call
Alert)
o Sending a text that requests another local subscriber to call back (Call me)
o Automatic service which answers customer’s phone and record messages (Voice
mail)
o Sent texts to a group of people (MobiList)
o Check mail via mobile (BizMail)

Facilitating services:
- Information:
o Service site: details on Mobifone’s shop is available online or printed on the
backside of invoice.
o Notification of changes: information about promotion, new services is available
online or automatically sent to customers’ cellphone.
o Responds to customers’ queries: Hotline services including Smart Care - 9224,
888 - Hotline to direct sales team
o Summaries of account: customers can check account via texting, calling
o Instructions on using services: specific information on using core services and
value added service such as Funring, Music talk, Voicemail, Mobichat, etc and
payment, price,

- Payment: customers can choose to pay online or pay at home whereby


Mobifone’s employee will come to customers’ house to collect money (for
post paid users) or using MobiEz, paper card or card code (for prepaid
users)

- Physical evidence: offices (5 centers- 106 offices nation wide) with


amenities.

RECOMMENDATION

o Update and check up technology to avoid mistakes

o Provide clear information on services

REFERENCES

FedEx’s website. Available at URL: http://www.fedex.com/vn/

Mobifone’s website. Available at URL: http://mobifone.com.vn/web/vn

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