Evaluation of Effectiveness For Fedex Advertisement

According to FedEx China (2009), Ex Corporation was set up in 1973 and it is the biggest express transportation company in the world. The company offers a series of overall services including transportation, electronic business and business operations to global consumers and enterprises. As a brand it has a great reputation. Therefore it provides general business applications and solutions by competing with other companies to work smoothly. According to FedEx China (2009), FedEx has a $32 billion income per year and it encourages its 260,000 staff to pay a high degree of attention to safety problems, moral and business ethics of the highest standard, and also to satisfy the requirements of clients and society completely. In addition, FedEx Express now provides about 3.4 million packages per day. The company operates a fleet of about 654 aircraft and some 43,000 motorized vehicles and trailers. Moreover, the global FedEx names are: ‘FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks and FedEx Services,’ (About FedEx, 2009). It has been ranked the most admired and trustworthy company and provides fast and faithful express services to more than 220 countries and regions. There is a world airline and a land network to speedily transport the packages, needing only 24 hours or 48 hours to received (FedEx China, 2009).

1.2 Theories

In this report, two theories will be used, Market Segmentation and Market Mix. According to Hall et al (2008:66), Market Segmentation is the ‘break down a market into sub-groups with similar characteristics.’ Moreover, producer may then create products and services for them. Behavioural segmentation is one of the ways of Market Segmentation; ‘segment markets based on how consumers relate to a product,’ (Hall et al, 2008:69). Loyalty is an example of behavioural segmentation, where the company separates, and divides consumers into different categories. Apart from Market Segmentation, another theory is Marketing Mix, which includes product, price, place and promotion. The Product requires producers have to know clearly what things are required by customers. The price indicates a business must know the worth of its product. It can make a high price if sold as a luxurious item, but not because of its high cost, (Hall et al, 2008). The promotion includes TV advertising (above the line) and personal selling (below the line). Place means that the products have to be sent to the consumers at the right place and right time, (Hall et al, 2008).

1.3 Aims

The aim of this report is firstly to show how the advertisement is related to market segmentation and Marketing Mix. The second aim is to explain how the advertisement has been created to appeal to consumers. Finally to discuss how this advertisement has been created to target a specific market segment.

2. Findings

Figure1: Epromos (2008)

The ‘FedEx’ logo was created by Lindon Leader of Fandor Associates in 1994 (Logoblog, 2008). The ‘Fed’ is usually purple and the ‘Ex’ has different colors in different logos, giving different meanings. In this advertisement, the logo is the original one in which the Ex is orange. The background of the logo is white, ‘White means safety,’ (Color Wheel Pro, 2008). Purple conveys ‘power, nobility, luxury, and ambition’ (Color Wheel Pro, 2008). Orange symbolizes ‘enthusiasm, fascination, happiness, creativity, determination, attraction, success, encouragement, and stimulation’ (Color Wheel Pro, 2008). The shirt is blue, which conveys faith, confidence, trust and loyalty, (Color Wheel Pro, 2008).

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3. Discussion

3.1 Marketing segmentation

Demographic segmentation, Hall (2008:68) states that ‘markets are often divided by social class.’ Most target audiences of FedEx are enterprises. Business needs effective, reliable and secure service, thus FedEx provides faithful and safe product delivery and is appropriate to business requirements. Furthermore, the quality, speed and convenience of FedEx appeals to consumers to enjoy their services. The great reputation makes FedEx have a vast range of consumers and businesses all over the world, and enterprises trust FedEx. The lasted successes are a result of the progress of market segmentation done by FedEx.

Marketing mix

3.2.1 Price

From the advertisement, it seems FedEx provides the service to the average citizen; therefore the price should be low. A FedEx overnight letter cost $11, it is cheaper than UPS and DHL, which cost $12 and $13, ( Oppapers, 2009).

3.2.2 Promotion

As mentioned in the introduction, FedEx is the largest express transport company in the world, (FedEx China, 2008). The promotion of FedEx is ‘above-the-line promotion’ (Hall, 2008). Thus the company publicizes through TV or newspapers. According to Hall (2008), good advertising should raise (AIDA) awareness and interest, desire and action. This advertisement is likely to reach the ‘I’ of AIDA. In this advertisement, the person is not an attractive or a well-known model, who just an average man in the street. It presents FedEx in a popular style. In addition, this middle aged man in that shirt is making a phone call, he may be a trader. This may show FedEx’s target audiences to be enterprises. The logo of FedEx is on the shirt, in other words, the person in this advertisement is promoting for FedEx. Overall, the advertising promotes in an original and interesting way.

4. Conclusion

4.1 Summary

To sum up, the color usage of the FedEx advertisement (blue) displays the faith, trust and loyalty, because most of their target groups are enterprises. Therefore they use this advertisement to promote their products to these enterprises. It shows the purpose of FedEx, which is ensuring to people their services are consistently reliable and safe. FedEx makes use of Marketing Mix and Market Segmentation in their advertisement to satisfy consumers.

4.2 Recommendations

From this advertisement, FedEx use an average man to promote their brand. It would be strategy that FedEx may consider is to find a famous model to advertise, that may appeal more to some consumers. Another recommendation is that the shirt in the advertisement is too blank. FedEx could add several banners to show what they want to promote. Last but not least, the logo of FedEx has different colors which has different meanings, thus they should make use of different colors shirts to appeal to consumers.