len hostetter - fedex services
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Presented at Chicago AMA's BrandSmart 2010, June 24 at the UIC Forum.TRANSCRIPT
FedEx: Focusing on the FutureLen Hostetter
Vice President, FedEx Brand Engagement Marketing
June 24, 2010
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Executive Summary
June 2010Focusing on the Future AMA Conference
The FedEx Brand
FedEx Customers, the present & future
EarthSmart
Social Media
Conclusion
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The FedEx Brand
FedEx is now 36 years old. When FedEx began operations: – First -class postage was eight cents– Oil embargo sent gas prices skyrocketing to 55 cents/gallon–We only served the U.S. then and were shipping 150K packages per
day. We had $750M in revenue but our goal at the time was to be the first company to reach $1B within 10 years
We reached that $1B mark and today our revenues are $35B and we handle over 8M shipments per day. We also:– Serve more than 220 countries/territories– Handle almost 95% of world’s GDP in 24–48 hrs– Have 275K fantastic team members worldwide– First-class postage, has gone from 8 cents to 44 cents and the days of
55 cents-a-gallon gasoline is long gone
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The FedEx Brand
Today, I want to share with you how we manage the FedEx brand in this fast evolving world and how we are positioning the brand for the future
We aggressively manage our brand – it doesn’t happen by accident. We manage it, measure it and monitor it. We never take our leadership position for granted and know that we must stay relevant for the future
We manage our brand through:–Our People –Our Service –Our Go-to-Market strategy
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FedEx Customers, the Present & Future
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FedEx is focused on three distinct generations of current and future customers:– Baby Boomers (46-64 years old)– Gen X (31-45 years old) – Gen Y (10-30 years old)
Customers in these three groups have different perspectives which effect their approach to decision making and loyalty to brands
Our goal is to understand them and make sure our brand is relevant to them all
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Three “generations” of customers are important near term
Source: National Center for Health Statistics, 2002
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46-64 years old 31-45 years old 10-30 years old
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“When I first joined the workforce, my office looked like this…”
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What Matters to Future Generations
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In order to be relevant to future generations we must focus on what matters to them
More than ever being an environmentally responsible company is important to all three generations, especially Gen Y
Gen Y expects connectivity: – In their personal lives– In their workplace– And from brands they do business with
Today we will look at a few of the ways that FedEx is addressing those needs
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The environment is top of mind
Heightened business and customer awareness about the environment
Integrated into customer purchasing decisions
The environment has become a modern responsibility
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Sustainability is…
At the core of survival About doing more with lessDrives innovation and new product developments Encourages efficiencies
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Customers are demanding more
According to 2009 ImagePower Global Green Brands Survey, consumers say:– It’s important for companies to be green– They will spend more on green products
in the coming year– Trust a variety of sources to inform their
green purchase decisions– Expect companies to take
comprehensive environmental action
No company has established itself as a dominant global green brand, but many are recognized in specific markets
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The competition is moving
Domestically and internationally, our competitors are aggressively marketing their sustainability efforts– UPS Decision Green
Reusable envelopes Carbon offset shipments
– DHL GoGreen 100% recycled content packaging
line Carbon offset shipping
– TNT Planet Me Code Orange carbon count
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FedEx recent accomplishments
FedEx Ground installs the nation’s largest rooftop solar-electric system at the distribution hub in Woodbridge, N.J. – The 2.42 megawatt solar-electric system covers approximately 3.3 acres of rooftop
space with approximately 12,400 solar panels– The system is capable of producing a projected 2.6 million kilowatt hours of
electricity a year and could provide up to 30 percent of the hub’s annual energy needs
FedEx acquired 11 Boeing 777 aircraft that provide greater payload capacity– Using 18 percent less fuel than planes in our current international fleet– These replacements will also significantly eliminate carbon emissions that would
have otherwise occurred
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What you do isn’t enough - It has to be communicated
Brands need more sophistication in their communication approach What we say and how we say it are critical to protect the brand– FedEx Sustainability Messaging Platform
Thoughtfully Transparently/no greenwashing One voice
We must align the FedEx environmental messaging platform across– Marketing– Corporate Communications– Operating companies
– Regions
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EarthSmart is how we will support our commitment
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EarthSmart Goals
Differentiate - Differentiate FedEx as an sustainability leader and build internal and external brand by communicating about environmental solutions
Innovate - Recognize and encourage innovative ideas and solutions around FedEx strategic environmental areas
Align - Facilitate the connection between our business, sustainability and workplace strategies
Communicate - Tie FedEx environmental programs under one communications umbrella
Be Credibile - Ensure that environmental improvements are credible, quantifiable and realized
Integrate- EarthSmart must be embraced corporate-wide
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EarthSmart is flexible
Program FocusHow Team Members Are
EngagedResponsible Group
EarthSmart Solutions
Innovation & Branding program
Allows team members to submit innovative ideas. Sustainability
Global Brand Management
EarthSmart @ WorkEmployee Engagement
Integrates sustainable projects and programs into the way we work.
Collaborative effort led by Workplace Comms
EarthSmart Outreach
Philanthropy and Volunteering
Allows team members and FedEx to contribute to the community in environmentally-focused ways.
Global Citizenship
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EarthSmart is flexible
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EarthSmart is action
“I don’t need fuel to cover my route.”
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EarthSmart is empowering
“I am EarthSmart.”
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EarthSmart is commitment
“I choose FedEx because its values align with mine.”
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Social Media
In order to be relevant we must communicate in new ways Today, Small Businesses are investing over 37% of their media
dollars in the interactive space while large corporations are currently averaging 13% (Forrester Research)
Our Go-to-Market strategy is to “fish where the fish” are –When you look at customer expectations, 42% of online adults said
they expect to engage with their favorite brands through interactive channels – New consumers today don’t know about our history and haven’t seen
our classic commercials. We’ve got to reach them in new spaces
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I AM FedEx
I AM FedEx is an internal and external campaign that was designed to honor our people, celebrate their stories of personal and professional achievement and define them as the differentiator that makes FedEx one of the most admired companies in the world
Campaign includes videos, posters, and podcasts hosted on iamfedex.com
Site acts as a media distribution point for other channels:– Internal (fedexcares.com; earthsmart.com; csr.fedex.com)
- External (Facebook, YouTube, Twitter)
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Click Image to View
Coach DaveI am FedEx: Videos
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You Tube Advertising Videos
For the first time last year, we distributed a brand messaging campaign solely via digital video content on YouTube, which was called “1-2-3 Succeed”
We received 1 million views in six months, well ahead of our goal
FedEx is also encouraging our audience to interact with and distribute these videos through blogs, embedding and social networking – This means we’re spending less to reach more of the people that we really
want to reach
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1-2-3 Succeed Video
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Summary
In conclusion, we’ve worked hard at our brand management, and FedEx is one of the most respected in the world. Recent accolades include: – 7th in Fortune’s World’s Most Admired Companies, 2009– Fortune’s “100 Best Places to Work,” 2009 (12th time in 13 years)
We never take our leadership position for granted. We must stay focused on the future and on the demands of our future customers.Some of this year’s accomplishments include:– Achieving an 8.33 percent reduction of aircraft emissions intensity since 2005– Increasing vehicle fuel efficiency by about 14 percent– Connecting with our customers through social media to engage them, learn about
their needs, and deliver on our promise
June 2010Focusing on the Future AMA Conference