Sales Force Integration at FedEx

Presented By: Aditi Sharma (PGPJ01003)

Bishal Agarwala (PGPJ01016)
Divya Chitte (PGPJ01022)
Kartikey Pandey(PGPJ01028)
Supriya Verma (PGPj01051)
Darshan Thakor (PGPJ01053)
 FEDERAL EXPRESS

Worlds largest logistic and shipping company

Started in 1973 by Fred Smith
Idea to improve air transportation for shipping time sensitive items (urgent documents,
medicine, etc.)
Headquarted at Memphis, Tennessee
Earlier, only 2 % of US shipments shipped via air, using commercial passenger planes
Achieved $1 billion revenues in 10 years
By 1980s, it became industry leader in US (28% market share), later expanded overseas
Acquired regional air cargo companies like Tiger International (1989), Evergreen
International Airlines, China (1995).
IP services grew by 18% for FY2000.
 Federal Express to FedEx Corporation
Uprising Challenges
- changing forms of communication and technologies
- Increased competition from UPS, Airborne Express, etc.
- shift of packages to low-cost ground carriers (1-6 days)
- rise of e-commerce and need for home deliveries

Acquired Caliber System Inc. in January 1998

Calibers RPS specialized in ground deliveries

RPS controlled 11-12 % ground deliveries share, UPS-75 %

 Project ARISE

Achieving Revenue & Information Technology Synergies across the Enterprise

1999 : Merger of Marketing & Sales and IT units
Critical Areas :
- New compensation plan
- FedEx specialized in air services, RPS in ground services
 SWOT Analysis
Weakness:
Two sales forces leading to two
points of contact
Confusion over two sales forces

Industry leader in air freight

Opportunity: Threat:
Expansion in ground UPS stronger in ground
services Intense industry competition
Cost savings from systems (UPS and Airborne Freight)
Integration Customer confusion due to two
sales force
Problems:

Sales strategies and compensation plans

Lack of coordination
Multiple customer touch points creating confusion
Segments of package delivery industry

Express
shipments made by air
guarantee to deliver
tracing features included
Ground
used transportation like vans, trucks etc.
no guarantee to deliver
less expensive
Competitors of Fed-ex

United postal services(UPS)

Airborne
U.S. postal services
Fed-Ex Express Sales Strategy

Segmented customer base according to revenue.

Offered money back guarantee(reliability of 99%)
Tracking capabilities
Fed-ex ground Sales Strategy

Formerly RPS sales force

Shared hierarchical configuration of sales team for geographical reach
Used independent contractors and minimal advertising for cost-cutting
Harnessed strength of personal relationship with customers
Services offered by Fed-Ex

Fed-ex priority overnight

Fed-ex standard overnight
Fed-ex 2 day deferred
Fed-ex standard saver
THANK YOU