The Case
By 1996, the Internet's novelty as a new medium was wearing off and corporations were faced with proving their Web sites were not only "state of the art," but also useful.
FedEx and UPS were both on the verge of launching real-time systems that would enable customers to ship, track and verify delivery of their packages online. Both companies stood
to save millions of dollars in annual operating expenses by turning customers on to online services. Given that both sites offered comparable technology and speed, FedEx sought
to leverage its market position by updating its reputation - from a transportation giant to an ecommerce pioneer. The company hired Ketchum New York as a strategic partner.
Measuring Up
Initial research showed that FedEx didn't have quite the reputation it envisioned. A third-party media survey indicated only 10% of journalists thought their key audiences
would be interested in FedEx's technological advances. And only 5% of reporters said they equated the FedEx name with technology. Meanwhile, a media audit confirmed that UPS'
new technology had received slightly more coverage than FedEx's in 1995.
Ketchum also conducted an informal poll of tech analysts and journalists, and found them hesitant to attend high-tech briefings from a transportation company.
The Strategy
Ketchum sought to reconstruct FedEx's reputation in the marketplace as a "leader in technology-enhanced express delivery." The central goals:
- To combine technology announcements and classic, ongoing media outreach to build and reinforce the case that FedEx was a true technology leader.
- To focus on communicating key FedEx technology messages to analysts and opinion leaders.
- To drive customer usage of the FedEx Web site as a means of illustrating the utility of its customer technology.
Key audiences were defined as business and consumer customers, technology analysts/influencers and the media.
Entering Start-Up Mode
While the standard practice among high-tech companies was to talk up new technologies while they were still in beta testing, FedEx waited until each of its Web products was
customer-ready before launching a media push. Having a tangible product in hand would help establish credibility with journalists who were already skeptical. FedEx executives
introduced InternetShip - the company's first Web-based shipping and tracking system - through face-to-face analyst briefings and trade press interviews, offering testimonials
from customers who'd tested the product. An exclusive placement in PC Week (both print and online editions) helped spur additional technology coverage during the launch.
Several months later, the company secured an exclusive in the The Wall Street Journal to announce its introduction of BusinessLink, a Web-based software product
featuring an online catalog and ordering and enhanced shipping capabilities. The Journal exclusive spurred a media frenzy, and wire and broadcast outlets began covering
the technology before the press release had even been issued.
As a next step, FedEx introduced an online Learning Lab designed to help customers with logistical questions about the online tracking services. Finally, it invited
journalists to tour its Memphis offices and get an inside look at the technology. Reporters from Wired, The Wall Street Journal and InfoWorld made the pilgrimage.
Measuring Up 2.0
In the end, FedEx became a media darling among the digerati in 1996. That year, the company nailed a 12-page feature in Wired, along with ink in The Wall Street
Journal, Information Week, Communications Week, PC Week, The New York Times, Dallas Morning News and 26 local markets. The company's staggered product roll-outs also secured
airtime on CNN, CBS, CNBC and NPR's "Marketplace," along with TV and radio coverage in 25 markets.
Analysts changed their tune about FedEx and began endorsing the company's new technology. "Federal Express created 21st century global logistics by integrating transportation,
communications and computer technology to a degree which will bring all suppliers and customers together in one time and space," said Brian Campbell, an analyst with Campbell
Aviation Group.
A second media survey conducted at the end of 1996 revealed that 91% of respondents "strongly agreed" that FedEx was a technology-driven company (73% said the same about UPS).
The survey also determined that 91% of stories about FedEx in 1996 included mentions of new technology vs. only 70% in 1995.
(Robyn Massey, Ketchum, 212/448-4468, http://www.ketchum.com)
Customer Behavior: The Ultimate Benchmark
In 1995, FedEx's Web site was receiving under 1 million hits per month, while today it receives 1.8 million per month. To date, approximately 7,000 customers have opened
InternetShip accounts. More than 580,000 packages are now tracked online each month (vs. 90,000 in 1995). Granted, the ecommerce boom (and consumers' general acceptance of
online business models) helped further FedEx's objectives. But one might also argue that it was an old-economy giant's willingness to transform itself into a high-tech company
that helped build consumer confidence in ecommerce.
The Ketchum Package
Parent: Omnicom Group
HQ: New York
Founded: 1923
Revenues (1999): $150 million
Clients: VISA, Roche, Miller Brewing, Nokia, Genentech
Employees (global): 1,200+
Staff on FedEx account (worldwide): 60
Staff on FedEx account (NY): 10
Number of FedEx packages sent and received
daily: Too many to measure.