FedEx is a transportation, shipping and logistics company that offers a variety of services such as shipping, tracking, and delivery. It serves both businesses and individuals.
FedEx has a wide range of customers, including small businesses, large corporations, e-commerce companies, and government agencies.
FedEx’s main product is shipping, which it offers through its FedEx Express, FedEx Ground, FedEx Home Delivery, and FedEx Freight divisions. FedEx also offers tracking, insurance, and delivery services.
In this article, we’ll study the FedEx target market and understand the reasons why customers need a service like the one FedEx offers and why they choose FedEx over other alternatives.
Who is the FedEx Target Market?
To best understand the FedEx target market, we need to understand who needs delivery and shipping services that companies like FedEx offer, why they need these services, and why they choose FedEx over alternatives like UPS, DHL, or USPS.
Such a needs-based segmentation analysis gives us the following segments of the FedEx Target Market:
- Businesses that need to send or receive important documents or packages quickly
- Individuals or Businesses that need to send or receive time-sensitive items
- Businesses that need end-to-end logistical services
- People who live in rural areas and do not have access to traditional mail delivery
- E-commerce businesses that need to ship orders quickly and efficiently
- People who need to transport large or heavy items.
- People who need to send or receive items internationally.
Let’s look closely at each of the segments of the FedEx target market.
#1. Businesses that need to send or receive important documents or packages quickly
One of the most important segments of the FedEx target market includes businesses of all sizes that need to send or receive important documents or packages quickly. This might include businesses that are shipping products to customers, receiving inventory from suppliers, or sending important documents to clients or partners.
Companies know that if they send packages via FedEx as opposed to the postal service, they can be sure that their items will arrive on time and in good condition. This is because FedEx offers guaranteed delivery times and a range of shipping options to meet different needs.
Additionally, businesses can take advantage of FedEx’s tracking services to keep tabs on their shipments and ensure that they arrive at their destination safely. This peace of mind is something businesses (and individuals) are gladly willing to pay for.
#2. Individuals or Businesses that need to send or receive time-sensitive items
Individuals and businesses often need to send or receive time-sensitive items such as documents, contracts, and packages. They might be sending something to a client or customer or perhaps they are receiving a time-sensitive item themselves.
In either case, they need a delivery service that can guarantee fast and reliable delivery. This is where FedEx comes in. FedEx offers a range of express shipping options that can get items to many destinations within 24 hours or less.
And customers can track their shipments every step of the way so they always know where their package is and when it will arrive. This level of transparency and reliability is something that FedEx’s customers are willing to pay for.
Note that these customers may also choose a courier service if they only need to send their packages locally.
#3. Businesses that need end-to-end logistical services
Another key segment of the FedEx target market is businesses that need end-to-end logistical services. This means they need a company that can handle every step of the shipping process from pickup to storage to delivery.
FedEx offers a full range of shipping and logistics services that businesses can take advantage of. This includes everything from transportation and warehousing to customs clearance and e-commerce solutions.
Businesses that take advantage of FedEx’s end-to-end logistical services can save time and money while also reducing their shipping and logistics costs. FedEx also offers insurance for shipments, which gives businesses an extra layer of protection in case something goes wrong.
This market may turn to shipping companies or logistics companies rather than to FedEx you may be more specialized in transporting certain types of goods (eg. HazMat materials) or to certain destinations.
#4. People who live in rural areas and do not have access to traditional mail delivery
Another segment of the FedEx target market is people who live in rural areas and do not have access to traditional mail delivery. These individuals often need to rely on shipping companies like FedEx for their postal needs.
While postal services often deliver to most rural areas, in many countries, their coverage is not as extensive as that of FedEx. This means that people in rural areas often need to use shipping companies like FedEx for their postal needs.
Sometimes, FedEx will have pick-up points at local convenience stores or gas stations in rural areas. This makes it convenient for people who live in these areas to send and receive packages.
FedEx also offers a range of shipping options for people who live in rural areas, including express shipping and economy shipping. This allows people in rural areas to choose the shipping option that best meets their needs.
#5. E-commerce businesses that need to ship orders quickly and efficiently
Another key segment of the FedEx target market is e-commerce businesses that need to ship orders quickly and efficiently. These businesses need a shipping partner that can help them meet the needs of their customers.
FedEx offers a range of services that can help e-commerce businesses with their shipping needs. This includes everything from transportation and warehousing to customs clearance and e-commerce solutions.
E-commerce businesses that use FedEx can save time and money while also reducing their shipping and logistics costs.
#6. People who need to transport large or heavy items.
When people (or businesses) need to send or receive large or heavy items, they need a shipping company that can handle these items safely and securely. FedEx offers a range of services for shipping large and heavy items.
FedEx has a dedicated team of experts trained to handle large and heavy items. They will work with customers to ensure that their articles are appropriately packed and shipped safely.
Large items can include personal goods like pianos or furniture but can also include commercial goods like machinery or equipment.
#7. People who need to send or receive items internationally.
When a package needs to be shipped internationally and reliably sometimes the options become more limited. This is where FedEx can help. They specialize in international shipping and have a wide range of services to choose from.
When packages need to go through customs, the shipping process can be complex and time-consuming. FedEx offers a range of services to help customers with their international shipping needs including everything from transportation and warehousing to customs clearance and e-commerce solutions.
Conclusion
The FedEx target market includes both businesses and individuals. Businesses that need to send or receive important documents or packages quickly, often turn to FedEx as a reliable delivery partner.
Likewise, Individuals or Businesses that need to send or receive time-sensitive items also tend to hire FedEx.
Businesses that need end-to-end logistical services are also a segment of the FedEx target market as are people who live in rural areas and do not have access to traditional mail delivery.
E-commerce businesses that need to ship orders quickly and efficiently and make sure their products reach their customers will often use FedEx as do people or businesses that need to transport large or heavy items.
Finally, for people who need to send or receive items internationally, FedEx remains one of the most reliable delivery companies to ensure that the item clears customs and reaches its destination.
