Just one idea can make the world function much easier and much faster, moreover make the business recognizable, outstanding, and successful.
FedEx is a worldwide-known, delivery company that started with 14 small jets and within just three decades expanded into 560 aircraft that in just 24 hours travel approximately 500,000 miles (804,672km)!
Moreover, just in 10 years, FedEx became the first American company, reaching the financial hallmark of 1 billion US dollars in revenues in 1983.
FedEx owes its success to the idea of Frederick W. Smith who identified the need that no one knew existed- an overnight delivery system. But to be able to meet this need it is crucial to find an innovative way- and that thought gave an idea for the hub-and-spoke distribution system in which the hub is in the center. That solution simplifies the shipment process, improves workforce productivity, and makes deliveries faster. This incredibly smart system gave FedEx a competitive advantage over its main competitor UPS.
The Brand
The company started its existence under the name “Federal Express” which used to draw public attention to the business and facilitate the name recognition. Although customers adopted a shorter name- FedEx, thanks to which in 1994 the first evolution of the company’s corporate identity took place. The company made changes and went through rebranding several times to end up in the place where it is now.
Brand´s Communication
One of FedEx’s promises is the next-day delivery guaranteed (by 10:30 a.m.- which is the most important aspect in shaping its customer’s minds and making them more attached to the brand. FedEx is focusing on both approaches- B2B and B2C, to ensure that it is in a leadership position. The company made it possible to develop a strong brand image and gain a positive reputation through communication. This is something that teaches us how communication is important for the success of the brand.
FedEx does not stop and constantly looks for improvements and more ideas to maintain a competitive advantage. Over the years the brand came up with many taglines such us “Relax, it´s FedEx.” or “Don´t worry. There´s a FedEx for that.” Something that could describe them all is being hilarious and confident. This approach is conducive to the perception as positive, and it can also be remembered more.
In addition, based on a target audience FedEx extended its sponsorship of the National Football League, joined forces with Joe Gibbs Racing in 2005, as well as sponsored the #11 FedEx Chevrolet during the 2005 NASCAR season with the campaign headline “Everyday is a Race Day”. All of that is because their core customers are males between 25 and 55 years old.
Not to mention the fact that FedEx was lucky enough to have its product placement at no cost, in the movie Castaway, starring Tom Hanks. That was basically a two-hour-long commercial of FedEx that people even paid for to see.
Takeaways
FedEx is the best example of an idea that changed the whole system of deliveries all over the globe, from which even its competitors took inspiration. Thanks to FedEx, the delivery system works so well and makes it possible for us to receive a package even the next day. People did not know they needed this solution, but since they got it, it is impossible to live without it. FedEx showed its advantage in brand creation and brand development, and most importantly in its capability of showing its values and creating a sense of belonging to customers.
Source: Kotler, P., & Pfoertsch, W. (2006). B2B Brand Management. Springer Berlin Heidelberg.