Fedex B

In: Business and Management

Submitted By alejo1
Words 623
Pages 3
FEDERAL EXPRESS B

Executive Summary
Federal Express main services are delivering packages across United States though different locations within a short time. In this case we’re going to analyze the viability as a product of the Courier Pack among Priority Standard and Standard Air Service.
Positioning the Courier pack in the right market and the right pricing; Courier Pak completely fit the company, from the increasing demand, cost and competitive view. So I think that Federal Express should dedicate special effort to the Courier Pak.
Analysis
One of the characteristic of the Courier Pak is a guarantee overnight delivery service, and the fact that can be delivered to anywhere in the Federal Express system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination. Furthermore, the Courier Pak's features envelope such as being waterproof and tear proof offered a special safe physical shipping method to the customers.
Other fact to take into account is the market potential, there is an estimate of 870M pieces per day for documents and small package mailing. Moreover, the volume for Courier Pak is 30% more than Priority one and the variable cost is the lowest among other products. That means that Courier Pak market has a growing potential and is a more profitable product.
The Courier Pak product was mostly used by executives or their secretaries rather than the shipping department. This type of customer is looking for the delivery service for emergency, rush and special handling of documents and other small valuable items. Exhibit 4 shows that in 1975 and 1976 a majority of FEC's shipments were for next day delivery.
There is a great potential market for the Courier Pak. First, from Table A, we have that the routine air package market was at 122.3 M (where is Courier pak) compared to emergency and rush packaged (18M…...

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