Nearly 10 years after its 1973 launch, FedEx Corp. created a new advertising campaign that took the company to the next level. The 1982 campaign -- featuring a fast-talking
executive barking out orders that the package had to "absolutely, positively" be there overnight -- hit home with business executives who were then starting to deal with an
increasingly global economy.
In the last 20 years FedEx has remained atop of what is now a huge market for overnight delivery and transportation services. But by 2000, the competition - particularly from
DHL and UPS Corp.-- was putting the squeeze on FedEx. What's more, the media had started to pigeonhole FedEx as strictly an overnight delivery service when, in fact, the company
has myriad delivery mechanisms.
So FedEx decided to extend the "FedEx" brand across all of its operating units, a portfolio of transportation companies that operated separately. Although the company's express
and ground business would continue to operate independently they would both now compete under the FedEx brand, enabling FedEx to cross-sell its services more effectively.
But, unlike 20 years ago, the re-branding effort would not be accompanied by an ad campaign, so the onus was on PR to carry the ball. "It fell on the communications team to
explain what the new FedEx was all about," says Shirlee Clark, director of corporate communications at FedEx. "After we got our employees on board, which is always the case here,
then we went external."
A big part of the problem in getting its message out was that reporters and correspondents were convinced that FedEx was a company with just one note. Chris Atkins, partner and
director of global corporate practice at Ketchum, who has worked on the FedEx account since 1996, says: "A lot of reporters associate FedEx with the overnight envelopes they come
in contact with. Even with the analyst community we had a tough time getting people to understand the portfolio."
FedEx started to change the conversation with the media through the creation of "Influencer Outreach," a group of 147 people, from academia, analyst groups, supply chain
companies and think tanks, that could provide "concentric circles" of awareness to the media, Atkins says.
Each "influencer" was assigned a relationship with a FedEx manager, who could educate the influencers on the precise details of the portfolio changes. Once FedEx felt the crew
fully understood the changes they were then referred to the media. "We needed to stimulate more urgency about the changes through different kinds of forums," Atkins says, adding
that the influencers were able to generate buzz about FedEx through favorable comments about the company in speeches and appearances.
Another crucial element in the campaign was assigning members of the FedEx communication team to individually pitch the most influential business outlets, such as The Wall
Street Journal, The New York Times, and CNBC -- as well as shareholders and analysts -- rather than blasting a press release howitzer-like to as many media outlets as possible. To
make sure good bedside manners was provided to reporters, some FedEx communications executives were relieved of putting out the crisis du jour to focus solely on cultivating the
media about the company's re-branding efforts. "You can't proactively reach out to the media" if your account executives are spread too thin, Clark says.
Both FedEx and Ketchum were on the same page in terms of paying close attention to the industry trade magazines, which consumer reporters often look to for leads. "If you're
not working with the trades you're missing the boat," Atkins says. "Everyone is looking for short cuts, so you build your blocks in the trade press and then you can build your
case with" consumer-oriented media. "The foundation of understanding is in the trades."
The campaign was ultimately able to sway some influential publications. For example, while a May 2001 BusinessWeek piece questioned FedEx's market position against its primary
competitor, an article by the same reporter in November 2002 reported "No one is doubting FedEx's survival today." In March 2002 Fortune named FedEx No. 8 in the publication's
"Most Admired Companies" coverage. "FedEx has successfully transcended its image as simply an air express carrier for business to become a one-stop shop for any shipping need,"
swooned Fortune. (For more results tied to sales, see sidebar). Third-party research played a big role in helping FedEx to gauge how business reporters stacked up the company.
Clark says you have to show due respect to the press but at the same time be firm. "You have to read the stories very carefully and be prepared to challenge the inaccuracies,"
she says. With BusinessWeek, which is closely followed by the investment community, "we successfully pointed out that the reporter had reached an incorrect conclusion and hadn't
given readers all the information to fully understand the changes within the company."
Contacts: Chris Atkins, 646.935.4144, [email protected]; Shirlee Clark, 901.818.7463, [email protected]
Delivering a New FedEx: Lessons Learned
Although FedEx achieved success with a multi-layer campaign approach, the communications team never strayed from these five core elements:
#1 Collaborate, collaborate, collaborate. FedEx established a truly cross-functional, cross-operating company communications function. This has ensured consistency and
collaboration across divisions of the company in communicating the "new FedEx." This group matrixed communicators against key business functions and ensured that we never missed
an opportunity to discuss the full portfolio of FedEx products and services.
#2 Get by "with a little help from your friends." The company identified the core influencers - the people who truly hold FedEx's reputation in their hands. This relatively
small group of analysts, academics and experts was crucial in helping to communicate the concept of the new FedEx. Whether they were commenting to the media as a part of their
own thought-leadership outreach, or because FedEx referred reporters to them, their explicit endorsements of our business strategy were powerful and compelling.
#3 Get the story out there - and get it right. The company also conducted an aggressive media relations campaign that was relentless in ensuring that the media presented
accurate, comprehensive information about the "new FedEx." From the outset, FedEx deployed a "Truth Squad," whose mission was to spot inaccuracies in media coverage and correct
them, either in the media or on FedEx.com. On the proactive side, FedEx examined each and every corporate development to see how we could use it to reinforce the portfolio
message. Spokespeople were trained to incorporate portfolio messages into any comments they made to media - and to anyone else.
#4 Employees are ambassadors. It was imperative that FedEx focus on internal communications as much as external outreach. The company employed a "workplace-to-marketplace"
approach - ensuring that messaging, attitudes and the brand promise were consistent from the inside out. Special emphasis was placed on collaborating with the sales force to
ensure they could articulate the "new FedEx" story.
#5 Seize every opportunity. Although the "new FedEx" story was largely relevant to the B2B market, the company was always on the watch for opportunities to reach the general
consumer. The launch of FedEx Home Delivery - a dedicated residential ground delivery service catering to the needs of B2C consumers - provided such an example. Never was this
clearer than when FedEx played a role in two massive deliveries of Harry Potter books throughout the country - recognized as the largest e-commerce delivery event in history.
Source: Ketchum
Packaged Goods
- Media relations have played a major role in helping to improve FedEx's market position in the last three years:
- FedEx stock was $45 in January 2000 and around $72.10 in October 2003
- Volumes and revenue at FedEx Ground increased 33% year-over-year in first quarter 2002
- Overall, FedEx has grown from an $18 billion company to a $22 billion company in the last three years
- The FedEx Home Delivery Customer Base grew from 143 in March 2000 to more than 30,000 by year-end 2000
Source: FedEx