Fedex in China

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  • Topic: Shanghai, Courier, Shanghai Pudong International Airport
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ACTIVITY #3 – FedEx
Country- CHINA

BY
GROUP – 9
ANKITA SONI
BHARADWAJ
SANANDA SAHA
SUDEEP SINGH
Our segment is China. The basis for our segmentation is geographic. Fedex has been delivering its services across various cities in China like Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Dalian, Zhengzhou and Chengadu. The segment which meets the requirements for segmenting potential customers is accessible because, China is having many drop point locations across all important ports and also has the drop boxes situated in some of the major cities like Shangai, Guangzhou, Shenzhen, Hangzhou, Tanjin. FedEx Domestic Service cover more than 200 cities in China.You can drop off your packages at FedEx Authorized Ship Centres. They are as follows: BeiJing| | ShangHai| | TianJing| | ChongQing| | AnHui| | | | | | | | | |

FuJian| | GanSu| | GuangDong| | GuangXi| | GuiZhou| | | | | | | | | |
HaiNan| | HeBei| | HeNan| | HeiLongJiang| | HuBei| | | | | | | | | |
HuNan| | JiLin| | JiangSu| | JiangXi| | LiaoNing|
| | | | | | | | |
NeiMengGu| | ShanDong| | ShanXi| | ShaanXi| | SiChuan| | | | | | | | | |
XinJiang| | YunNan| | ZheJiang| | |

FedEx Domestic Service have drop-off locations in 58 cities in China. One more effective criterion for segmentation is Substantial. Substantial: Substantial because China being a country having a huge population of over 1.3 billion, so it is very much a potential country to be targeted as the segments in China are large in terms of sales and the profit potential. China’s per capita income is $14.69 trillion (as per 2011 data). China spends one in every five dollars of its gross domestic product (GDP) on logistics. Total logistics costs accounted for 18.7 percent of the nation’s 47.16 -trillion-Yuan GDP in 2012. Some of FedEx’s clients are:

1. Guangzhou Hurricane Express Company
2. Digital Store Limited, Austria
3. ShenZhen International Courier Services Inc.
4. FordEx Logistics
5. Das trade Co., Ltd.
6. Sinotech Logistics Group Co., Ltd.
7.Yiwu Huihe Art&Craft Co.
8. Infinity Overseas Ltd
9. 999 Sports Goods Co., Ltd.
10. Beyond International Logistics (Hong Kong) Co., Ltd
Logistics industry in China:

Top 20 mainland logistics enterprises by sales revenue,2010

The Micro Level Bases of Segmentation are as follows:
Organizational Capabilities:
Many B2B companies in China are for prompt and quick deliveries. For example: Fedex being known for its operational efficiency and better customer service. Purchasing Criteria:
The purchasing criteria would be quality, service and price. So, the companies who opt for services of FedEx would not mind paying more instead they seek quality. Also when competitors like DHL, UPS are in the market place, FedEx has been outsmarting them in terms of quality and services. After it main competitor UPS launched its direct flights to China with China Express even FedEx emulated it by launching direct flights to China. Differentiator:

Fed Ex put itself apart from its competitors by offering the first ever overnight delivery to and from China before its competitors could imitate what Fed Ex did. Personal Characteristics:
Most of the B2B Companies in China are quite receptive to the new products and services. So, when FedEx comes up with a new variety of delivering the couriers, they try out the services by being a risk taker. It is equipped with an advanced inbound and outbound shipment sorting system. It has 3,500 shipments per hour. It operates 225 weekly international flights in and out of China.

The Macro level bases of segmentation are as follows:

Benefits of Product:

1) Faster and more flexible service.
2) Upgraded services like direct serve service, later call-in-cut-off times to earlier delivery, pick up and delivery services for...
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