Headquarters: Memphis, Tenn.
Brand established: 1971
2007 advertising: $157 million
2007 Interbrand/BusinessWeek ranking: No. 99
Brand value: $5.1 billion
CoreBrand ranking: No. 57
EXPERT ADVICE
STRENGTHS:
Ries: As the pioneer and dominant player in overnight delivery, FedEx created a perception that it is superior to the competition.
Roth: FedEx remains arguably the most visible and approachable brand in its category, even if it isn't the biggest. It has greatly benefited from the growth of online shopping and customer servicing. Now, its FedEx Kinko's retail network will get a boost as it becomes FedEx Office, simplifying its promise of full, efficient, state-of-the-art shipping and communications services at retail.
CHALLENGES:
Gregory: One of FedEx's main challenges will be integrating its business units properly. Currently there is no connectivity between its Express and Ground services.
Roth: With its vast armada of trucks and aircraft, FedEx has felt the strain of out-of-control oil prices and had to increase its pricing as a result. If con-sumers slow purchasing/shipping due to personal credit crunch issues, FedEx will certainly feel the pinch.
The past year has been one of global outreach for the executives responsible for the FedEx brand. A key component of the effort was a multilanguage advertising campaign—the first of its kind for the shipping and logistics giant—aimed at elusive C-suite executives in 14 countries. The "Behind the Scenes" campaign, created by BBDO New York, used print and online media to reinforce the message that FedEx helps customers exploit market opportunities both locally and globally.
The branding campaign—in tandem with FedEx's expanded service to China, Vietnam and other international markets—seems to have paid off: For the first time, the company ranked among Interbrand's top 100 global brands, coming in at No. 99. "There's still an awful lot of runway" for future growth, said Interbrand CEO Andy Bateman, "but they have done an outstanding job of building a more capable, richer and more relevant brand around the world."
Back in the U.S., FedEx added to its already heavy reliance on sports sponsorships while taking steps to ensure maximum payoff from its brand-building expenditures. "Especially in this economic climate, advertising cannot simply build the brand," said Emma Armstrong, who directs the FedEx account at BBDO. "It has to bring return on investment." She said the agency and FedEx had made a concerted effort to look beyond traditional print, TV and standard online media.
Last November, for example, FedEx made its first foray into social media, debuting its Launch a Package application on Facebook. The Flash animation-based app, created by Atmosphere BBDO, New York, lets users send virtual FedEx packages containing text messages, photos, videos and other attachments. Its popularity exceeded expectations, with more than 300,000 downloads in the first two weeks.
FedEx's move into social media was a wise one, Interbrand's Bateman said. "What you've got to do is be part of the social dynamic rather than simply advertise in it. They're taking the relevant experience, which is sending packages, and doing it in a fun, cheeky way online. That brings people closer to the brand."
On the sports marketing front, for the second year in a row, the company backed the FedExCup, a PGA Tour event. It also continued its longstanding sponsorships of pro football and auto racing. The humorous "Carrier Pigeons" commercial—part of BBDO's "Relax. It's FedEx" campaign—made its debut during Fox's broadcast of Super Bowl XLII and then went into regular rotation (becoming a viral hit on the Web).
FedEx added a do-good twist to its backing of NASCAR driver Denny Hamlin, using weekly eBay auctions to sell autographed slow cookers, chess sets and various other "things that slow him down," with proceeds going to St. Jude Children's Research Hospital. —David W. Freeman
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