[管理学]FinalReportofMarketing.docVIP

Final Report of MarketingMarketing Analysis of FedExName LI DAOSHENG Major Business Administration28ContentsI. Introduction11. 1 FedEx11.2 FedEx in China11.2.1 FedEx History in China11.2.2 Business operation in China2II. Marketing Environment42.1 Macro-environmental factors42.2.1 Economy environment42.2.2 Policy environment52.2.3 Development of Chinese Express Delivery Industry62.2 Industry Dynamics102.2.1 Risk of new entry by potential competitors102.2.2 Extent of rivalry between established firms102.2.3 Bargaining power of buyers112.2.4 Bargaining power of suppliers112.2.5 Threat of substitute products112.3 Internal Analysis122.3.1 Strengths122.3.2 Weaknesses12III. Chinese Consumers Behavior133.1 Characters of China consumers to express delivery133.2 Consumers behavior to express delivery13IV. FedEx Chinas Marketing Strategies154.1 Market Segmentation and Targeting154.1.1 Market segmentation criteria154.1.2 Segmentation and Targeting program154.2 Positioning164.3 Coordination of China Marketing Strategies174.4Coordination of Global Marketing Strategies18V. Marketing Mix of FedEx China195.1 Product strategies195.1.1 Produce mix195.1.2 Brand205.1.3 New product215.2 Pricing Strategies215.2.1 Price Dynamics215.2.2 FedEx Price Strategy215.3 Channel245.3.1 Channel Design245.3.2 Channel Management245.4 Promotion255.4.1 Advertisement255.4.2 PR255.4.3 Online Marketing25VI. Conclusion266.1 Why they succeeded: success factors266.2 In the Future266.2.1 Opportunities276.2.2 Marketing Fix276.2.3 Attention27Reference28I. Introduction1. 1 FedExFedEx is the worlds leading delivery company for overnight packages. It also delivers packages via ground and freight deliveries. FedEx also helps companies with their logistics and supply chain management.The company was started in 1971 as Federal Express by Fred Smith, a Yale classmate and fraternity brother of President George Bush. In 1973, Frederick W. Smith founded Federal Express Corporation with part of an $8 million inheritance. At the time, the US Postal Service and United Parcel Service (UPS) provided the only means of delivering letters and packages, and they often took several days or more to get packages to their destinations. While a student at Yale in 1965, Smith wrote a paper proposing an independent, overnight delivery service. Although he received a C on the paper, Smith never lost sight of his vision. He believed many businesses would be willing to pay more to get letters, documents, and packages delivered overnight. Federal Express began shipping packages overnight from Memphis, Tennessee, on April 17, 1973. On that first night of operations, the company handled six packages, one of which was a birthday present sent by Smith himself. Today FedEx Corporation handles more than 8 million shipments daily to over 220 countries. It uses 684 airplanes at 375 airports worldwide and has more than 80,000 vehicles in service. FedEx Kinkos, which specialize in office and printing services, changed its name in 2008 to FedEx Office. There are over 1,800 FedEx Office and Print Centers.1.2 FedEx in China1.2.1 FedEx History in ChinaFirst express air carrier to operate in the market in 1984,First express carrier to directly serve China with its own aircraft in 1996,Launched the industrys first direct flight from mainland China to Europe, March 2005,Started first overnight express link between India and China, September 200 Business operation in ChinaFedEx entered China early. Since 1984 it has come into China for more than 20 years, and in this period FedEx developed rapidly. At the beginning there were 2 airplanes in and out China in a week, but now there are 11 airplanes in a week.In recent years, FedEx China has expanded its service base with a proposed buy-out of its Chinese joint venture partner Tianjin Datian W. Group (DTW Group) the company announced in January 25, 2006. The $400-million buy-out will set the stage for a FedEx takeover of package shipping in China and boost its Asian presence. But while this buy-out has great promise for FedEx, small business owners should take note. Chinas economy is growing at an accelerating rate and has a growing middle class with increasing disposable income. The Chinese middle class has a thirst for Western products. So the buy-out could open the way for Chinese middle class purchases of western products delivered right to their door. FedEx China Expands B2B ServicesThe DTW Group will continue to operate the international freight forwarding, cargo transport and merchandise distribution businesses. Most of FedExs China-based shipments have been business-to-business, with the majority of express delivery packages shipped to or from 89 pickup and delivery locations covered by the joint venture network. Manufacturers in China are shifting factory locations further inland to escape rising labor costs in coastal regions. The FedEx international network currently connects more than 200 Chinese cities. The company plans to add 100 cities within the next few years. FedEx is now building a regional operations center in the southern city of Guangzhou. FedEx China Acquisition Has Government ApprovalThe Chinese government has made progress deregulating its market under World Trade Organization protocols. Reliable transportation networks such as those provided by FedEx China are critical to its development plan success. As wealth spreads throughout the country, freight transportation service areas must expand from major coastal cities, to inland cities in order to fuel growth and expansion. The acquisition does just that by providing FedEx customers access to cities outside the eastern seaboard like Wuhan, with twice the population of Los Angeles. II. Marketing Environment2.1 Macro-environmental factors2.2.1 Economy environmentIn 2009, the GDP of China was RMB 33,535 billion, and it was 8.7% higher than the same period of last year. The value of first industry added about RMB 3,548 billion, up 8.9% over the same period of last year, and the second industry is 46.8% and the third industry was 42.6% higher than the same period of 2008. The Chinas GDP from 2005 to 2009 can be referenced with follow figure2-1.FIGURE2-1: 2005-2009 GDP of ChinaSource: State Statistics Bureau of the Peoples Republic of ChinaIn 2009, Total consumption of products was 12,534 billion RMB，15.5% higher than 2008. And the urban total consumption of products was 8,513 billion RMB, 15.5% higher2008. It can be referenced with follow figure2-2.FIGURE2-2: 2005-2009 Total Consumption of ProductsSource: State Statistics Bureau of the Peoples Republic of ChinaWith the development of economy, we can find that there are more chances to develop express delivery in China. So how to do well in this industry in the future is mainly due to the ways of catching the chances.2.2.2 Policy environmentIn China, the government is attention to the development of services industry, and issued many policies to support the services industry. Especially in express delivery industry, in 2006, China government issued the policies about express delivery industry in the Chinese 11th five years Plan. But there are some problems that maybe affect the development of the express delivery.First is the law environment. It is required to the same policy within the industry,It is suggested that the regulatory and law enforcement should be divided into two right,It is advised that pay attention to the limit to foreign express delivery companies in the business within the WTO principle,Since the new Postal Law was promulgated and implemented in 2009 as well as the increase of labor cost and other costs, among local express delivery companies and franchised express delivery companies, only the excellent ones can survive, while those with bad performance will be eliminated quickly. About 40% of local express delivery companies and 30% of franchised express delivery companies will be merged, reorganized, deputized or closed down.Second is to improve the traffic environment,Third is to obey the WTO principleForth is to support express delivery industry with fianc,Fifth is being attention to training,Sixth is industry honesty.2.2.3 Development of Chinese Express Delivery IndustryIn Q3 2009, the business revenue of express delivery in China exceeded RMB4 billion/month, and monthly business volume and revenue rose by more than 20% respectively. The industry is as a whole promising. In Jan-Sep, 2009, Chinas express delivery business revenue totaled RMB34.26 billion, with an increase of 14.8% compare to the same period of last year. The industry gradually restored the steady and rapid development. The business volume registered 1.34 billion pieces, up 22.4% over the same period of 2008. The local business volume reached 320 million pieces with an increase of 8.4%, the revenue was RMB2.53 billion with an increase of 8.8%; cross-regional business volume amounted to 940 million pieces with an increase of 30.4%, the revenue was RMB19.17 billion with an increase of 23.6%; and business volume in the world, Hong Kong, Macao and Taiwan arrived at 80.008 million pieces, up 1.1%, the revenue was RMB10.83 billion, down 0.3%. Overall, Chinas express delivery business is resuming growth and the businesses have shown a steady upward trend. It is expected that Chinas express delivery business will grow again in 2010. FIGURE2-3: 2006-2009 Business Revenue and Volume of China Express DeliverySource: State Post Bureau of the Peoples Republic of ChinaAccording to the industry report of State Post Bureau of the Peoples Republic of China in 21, Oct we can find that the business revenue and volume of China express delivery are growing. From January to September in 2010, the income of the Chinas express delivery is RMB 94.83 billion, 18.8% higher than the same period of last year. And in September the income of the Chinas express delivery is RMB 12.04 billion, up 19.1% over the same period of last year. From January to September in 2010, there are 5.63 billion express services that were done by the express delivery companies. The details are just like Figure2-4.FIGURE2-4: Income of Express Delivery Every MonthSource: State Post Bureau of the Peoples Republic of ChinaAccording to the industry report of State Post Bureau of the Peoples Republic of China in Oct, we also can find the income structure and total amount about China express delivery. Details is just like figure 2-5, 2-6, 2-7, 2-8 and Table2-1.FIGURE2-5: Income Structure of Express DeliverySource: State Post Bureau of the Peoples Republic of ChinaFIGURE2-6: Quantity Structure of Express DeliverySource: State Post Bureau of the Peoples Republic of ChinaFIGURE2-7: Income Structure of East, Middle and West ChinaSource: State Post Bureau of the Peoples Republic of ChinaFIGURE2-8: Quantity Structure of East, Middle and West ChinaSource: State Post Bureau of the Peoples Republic of ChinaTABLE2-1: Development of China Express Delivery IndustryElementsUnitTimeIncreasing Rate than 2009（%）Jan-SepSepJan-SepSepIncome of Express Delivery108 RMB412.454.320.416.2Total Amount of Express Delivery108 RMB1429.5175.719.919.1Mail104 Pieces562893.967976.6-1.86.1Package104 Pieces4623.3509.2-10.8-13.7Express Delivery104 Pieces164143.021535.322.421.0Newspaper104 Pieces1286478.4141703.56.09.3Magazine104 Pieces77933.089Source: State Post Bureau of the Peoples Republic of China So we can summarize the opportunities and threats from the macro environment as follow table2-2.TABLE2-2: Opportunities and Threats to Express Delivery CompaniesOpportunitiesThreats Chinese economy is rapidly developed. Policies support from Government. Huge marker space of West China. High increasing rate in Express industry. Monopoly from China-Post company.Non-perfect law system.2.2 Industry DynamicsUsing Peters 5 Force Model, this report analyzes FedExs industry environment.2.2.1 Risk of new entry by potential competitorsThe barriers to entry are very high. One of the reasons that there is a high entry barrier is the high fixed cost associated with establishing the international transportation network. This includes hubs, ground transportation vehicles, air fleet, etc. Additionally, existing companies can take advantage of the absolute cost advantage achieved by large volume of shipments and economies of scale. 2.2.2 Extent of rivalry between established firmsEstablished players in express service industry complete rigorously for a market share, as demonstrated by the constant battle between FedEx and UPS, the company who responses first to the constantly changing environment wins. Established companies have to strive for continuous improvement in quality, lowering price, and innovation. There is very low switching cost for consumers in this industry making rivalry even more intense. In addition, intense rivalry is also due to the fact that maintaining the infrastructure of an express delivery company presents an exit barrier due to high fixed costs.TABLE2-3: Main Express Companies Market Share in ChinaFirmsFedExUPSEMSTNTMarket share23.7%13%13.4%8.1%2.2.3 Bargaining power of buyersThe bargaining power of large buyers in express service industry is high. Cost associated with switching from one express service to another is very low. Therefore, buyers can turn to a express provider that offer faster service, lower price, or service innovation with ease. This is especially true for large corporations, like IBM, which ships in large volumes and can bargain quantity discounts.2.2.4 Bargaining power of suppliersThe supplier power within this industry is fairly low. Large express service provider can affect prices of supplies, like packaging materials. This is because they buy in large quantities and can turn to different suppliers easily. 2.2.5 Threat of substitute productsThere are not many substitutes to express. In this day and age where many businesses have strong online presence and a small physical presence, it would be difficult to find a substitute in delivering their product. Express services are very much similar to a commodity, in that it is not easily replaced with another service or even a similar service. FIGURE2-9: Porters five forces model FedEx CorporationSuppliers PowerLOWPotential CompetitorsLOW Substitute ProductsLOWBuyers PowerHIGH- large buyers- low switching costExisting RivalsHIGH- EMS, UPS, DHL,TNT2.3 Internal Analysis2.3.1 StrengthsFedEx has many strengths. They are very innovative in coming up with new ways to add value to their customers experience with FedEx. They have always been wiling to embrace new technologies as well as create some of their own as shown in the example of FedEx using wireless technology to better track packages as well as launching its website with lets customers track their packages till it reaches its destination. They are responsive to their customers needs, as is evident in FedEx extending their drop-off times to better suite the needs of their customers. They also own a large fleet of aircraft and have an extensive hub and spoke network which extends to more than two hundred countries around the world.2.3.2 WeaknessesFedExs weaknesses derive from their inability to differentiate themselves on a wide scale basis from its competitors, this is hindering their ability to achieve a industry wide competitive advantage, although they do dominate the express delivery segment of the market. Another weakness is FedExs high cost, because of their constant expenditures in their infrastructure, they are unable to lower their prices and thus take away market share from competitors.III. Chinese Consumers Behavior 3.1 Characters of China consumers to express deliveryAt president, Chinas express market level is unclear, and the high-end market is very little. Since a large number of low-cost private express companies active in the market, most customers are already accustomed to using low-cost services. Base on the service quality and efficiency, price becomes the most important factor to affect express customers decisions. Whats more, Self-Logistics is well-developed in China, especially in big Enterprises. And the third-party logistics companies are facing to most of small and medium enterprises, agricultural operators and small package. So the customers may satisfy with lower price if the goods are transferred to right places and in right time. And all the third-part logistics companies can do it well.3.2 Consumers behavior to express deliveryExpress delivery belongs to logistics, and today people have to contact it. So express delivery play an important role in todays market.How consumers make a buying decision? There are mainly three factors that are price, time and service affecting consumers behavior.Price is the main element to affect consumers behavior. Because every person or company considers that cost is one of the most important factor to its life or management.Express delivery requires working in time. If the goods are not delivery to their target places, there maybe have much trouble to the persons or companies.Service means consumers satisfaction. If your delivery doesnt satisfy their consumers, youll lose your consumers forever.We can find the result of consumer behavior through the report t