7Ps

Description
Chip-embedded smart

Segmentation
Psychographic segmentation:

cards for customers

Personality (Hofstede & Bond, uncertainty

checking

1984)

information

Product

package
within

adopters,

(Kenny &

majority

Marshall,

2000)

avoidance,

particularly

Innovators:

transportation process

Targeting
Virtually target to high level

innovators,
early

and

early customers

majority,

laggards

business
who

are

late influenced significantly and

(Elliott, directly

RundleThiele & Waller, 2010)

by

the

delivery

process
Target

to

innovators

early

adopters

willing

to

who
try

and
are
new

technologies

Process

SMEs are provided Demographic

segmentation: Smallmedium enterprises

option that brings their organizations

size

packages to FedEx transportation

budget

dropoff points to get 2002).

a better price (Battor
et al., 2008).

and who

have

(Smith, transportation budget

low

Corporate

social Behavioristic

responsibility (CSR): expected

segmentation: Virtually target to business

benefits

are

highly customers who have serious

supports charitable concerned.

via FedEx is a part of value chain of

organizations

with business

governments,

local activities also affect on social image customers or people who are

business
communication

and sustainability.

collaborating
businesses
Marketing

concern about social image

and of

customer;

business

FedEx Target

thus

customers

in

2002)

high-class

their passionate in golf. These

services customers mind

(Lachowetz & Irwin, Psychographic

to

persons may also work in

segmentation: high positions in FedExs

regarding lifestyle, sport-lovers are business customers. Thus,

Sponsorship: long highly concerned

this strategy not only aims to

term

relationship

communicate FedExs brand

with

St.

message, but also assist to

Jude

Classica

strengthen

professional

golf

event

relationship

(Irwin,

customer
as

well

as

increase customers loyalty.

Lachowetz & Clark,

2010)
Human
(Smith,

assets Mass market segmentation

2001

McKeon,
Cunningham
Oswaks, 2009)

and Because

FedEx

operates

Targeting approach: product

in specialization (West, Ford &

service industry; thus human is Ibrahim, 2010). It means that

& placed at top priority.

human

factor

Customer satisfaction stems from considered

is
for

always
all

employees satisfaction (Barney & segmentations due to its

People

Wright, 1997). Because employees important

are more likely to be intermediaries industry.
to leave a good relationship with
their customers and bit by bit
contributing to build up brand image
in customer mind.

role

in

service

Positioning: Identifying brand position is crucial in strategic planning. It is because the expected
position contributes to develop further marketing strategies and create unification between them
(Elliott, RundleThiele & Waller, 2010). Accordingly, brands distinct personalities and characteristics
which are placed in customers mind have a critical role in the customer buying decision-making
process (Elliott et al., 2010). Additionally, Johnson et al. (2010) provide strategy clock to identify
positioning strategy of an organization.

The model represents for eight different strategies, in which the combination of pricing strategy and
competitive values reflects different positions in market. According to the model, FedEx has adopted
focused differentiation strategy. It means that they have attempted to differentiate themselves by
providing high customer value with high price (Trefis Team, 2015). Regardless of today stiff
competition and dramatic decline of fuel price, FedEx still announces an increase in their service
price to improve customer satisfaction as well as the effectiveness and efficiency in their chain value
(Trefis Team, 2015). Additionally, changes in their pricing mechanism also reflect their expectations in
terms of increasing price and the quality of their service (Forbes, 2015). This positioning is said to be
harmonies with their mission, vision and objectives as well as their industrial leading position.
However, FedExs case shows the flexibility of today organizations in terms of adopting generic
strategy. Despite the fact that FedEx has engaged with focused differentiation, they still considers to
expand their market share by approaching the business customers who have limited budget for
transportation. These customers could bring their packages to dropoff points and receive a better
price (Battor et al., 2008).