A marketing plan for Federal Express

• Main Authors: Paguio, Joselito, Pascual, Francis Jeffrey, Soriano, Cipriano, Tolentino, Rowena
• Format: text
• Language: English
• Published: Animo Repository 1994
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16945
• Institution: De La Salle University

The practicum students that undergo their practicum in Federal Express usually help the company in doing research, and eventually, they present a research paper to the marketing department of De La Salle University and to the company. This would be the first time as practicum group in Federal Express would present a marketing plan for 1995. The closest that was made to a marketing plan was an evaluative report on the company which was done in 1991. This marketing plan should then be the preliminary step into formulating more marketing plans in the future. Federal Express has been in the business for only 8 years, as compared to its major competitors like DHL and TNT which has 22 and 17 years, respectively, to their credit. With this in mind, Federal Express envision of becoming the market leader in the Air Express Industry here in the Philippines and to make its presence felt by the market. This can be achieved through an increase in market share and sales revenue. Proposed programs to meet the objectives would entail the commission of a research agency to handle all external research needs and an advertising agency to handle all advertising and promotional events. To a new and growing company like Federal Express, research is an invaluable tool which can help the company in the formulation and implementation of its marketing strategies and operation requirements. The research will be divided into external which would be handled by the research agency. Research projects would include: industry statistics, target client listings, market potential per industry, and untapped service area study. For in-house research, an internal research team would be created to handle the following research: sales generation, time and motion studies, periodic surveys for service enhancements and cost/benefit studies. This would also include studies of the target for each specific product and studies on pricing and discounting schemes. To increase awareness, the advertising media to be used would be radio, print, billboards, and transit ads. TV advertisements are not recommended because the target market is more of institutional corporate rather than individual accounts. Ads would emphasize the strengths and opportunities of the company. Sales and distribution programs would entail utilization of casual employees and practicumers as telemarketing agents and the use of instructional mailers and materials to target companies. No cost would be incurred in mailing because Federal Express courier would deliver them thru their pick-up routes. Promotions would be geared toward rewarding loyal customers by providing them with incentives such as sponsoring company activities, goodwill promotions, preferred treatment and priveledges and awards for top customers. Public relations would be geared towards building a better corporate image. This is done thru giving out of stickers and discount coupons and a monthly press releases about company events. Total estimated expenditures for the marketing plan would be P 12,081,152, this is 4.41% of Gross revenue which is P 273,750.000 (for 1995). Increase in net income after tax if marketing plan is pursued is 15.79%.