Sales Force Integration at FedEx

Submitted by Group 09
Sonika PGP10054
Kaberi Malakar PGP10022
Rakesh Kunbi PGP10028
Shivendra PGP10049
Sandeep Minj PGP10108
Sourabh Tondale PGP10116
 Introduction

• American multinational courier delivery services company

headquartered in Memphis, Tennessee
• Founded in 1971 by Frederick W Smith
•  Its main products are FedEx Express (87% of revenues) and FedEx
Ground(13% of revenues)
• $15bn revenue & Operating income of $900mn in ’00
 5 C’s of marketing
Company
• SWOT Analysis
Strength – Better ground coverage, Most reliable ‘on time delivery’,
Brand recognition
Weakness – Non-synergy b/w Express and Ground
Opportunity – Acquiring niche companies which operate in related
fields
Threat – Emerging competition around the globe

Collaborations
• Independent contractors of RPS
Customer
• Businesses (Large, Medium & Small companies)
Eg.- General Electric, Daimler Chryslers, E-commerce companies
• General Public
Competition
• United Parcel Service (UPS)
• Airborne Freight
• U.S. Postal Service
• DHL
• Deustsche Post
• TNT Post Group
Context
PESTEL Analysis
Political – Extensive lobbying & deregulations
Economical – Fluctuating fuel costs
Social – Growing demand of delivery services
Technological – Emergence of internet, automation
 Decision problem

Developing a unified FedEx face which provides complete delivery

solutions
 Alternatives
Integrate current sales force into one
Pros: - One point of contact and one shipping system
- Focusing on consultative selling
Cons: - For the ground staff, the compensation system is not delivering
- Sales force’s targets are individually set

Do not integrate but coordinate

Pros :- Create sales support specialist to do the technical integration with
customer systems.
- Maintain two sales force teams but create coordination mechanism
Cons :- Their might be coordination problem among the sales executives
when they use the same data base
 Recommendations

• Promote cross-selling between both the divisions

• Cross-training of employees of both express and ground divisions
• Restructuring of salary plus incentive models based on performance
• Creation of sales support team for assisting in tech integration
• Alignment with FedX Freight and FedX Kinko’s teams with the
established system
Thank You…