FedEx: Strategic Marketing Plan

PROFESSIONAL DELIVERY SERVICE AT YOUR DOOR

.

D.Handy Strategic Marketing Merchandising Plan

Do Yeon Stacey Park IED Level 6 Marketing Bianka Renn

executive summary The strategic marketing plan was undertaken in order to identify and develop a potential commercial product within a trend and adapt it to fashion in a way giving a company a new business unit.

Tourism was the base to a major trend of Low Cost Carriers which lead to many related popular trends that in the end identitfied a potential to sell disposable underwear that will be delivered to the travellers travel destination at their desired date and time in a professionable manner. Emliminating the need for the task to initially pack underwear and re pack used dirty underwear when baggage on Low Cost Carriers are strictly limited.

Thus, the need for professional delivery service was the key of the product and thus FedEx was nominated among its competitors as the best potential company to undertake this new business idea.

Table of Contents Introduction Chapter 1 : Trends Trend Analysis The relevant trends

7

Chapter 2: Consumers 15 Contaminated segment Consumer analysis - Interest in fashion - Market analysis The Strategic fit Chapter 3: The idea 23 Objective Selection of brands Choice of brand Company analysis Competitors of idea Chapter 4: Marketing plan Product Positioning & Price Place Promotion

33

Limitations 44 Conclusion Continued with Merchandising Plan

introduction The strategic marketing chapter analyses the current major trends followed by a deeper evaluation of related trends narrowing down to groups of consumers contaminated with this specific trend. Thus, leading to the development of a commercial collection. Three big transportation companies were analysed to find the best company to undertake this commercial collection. Followed by the analysis of the chosen company and the competitors of the new idea. All marketing 4Ps were developed for the new business idea of D.handy which stands for Disposable yet Handy. A Merchandising plan will folloe showing details of the collection structure, the budgeting and sales plan, collection timing and an insight of the collection book.

6

Chapter 1 Tourism Low Cost Carriers

7

tourism Despite the global economic recession, the travel and tourism industry continues to prosper globally, with arrivals reaching a record 1.1 billion in 2013, which was an increase of 5.1% of the previous year. 2014 is forecast to see a further increase, estimated at a 4.7% growth.

(WTM, 2014)

87%

of Travellers use the internet for the bulk of travel planning (nsight, 2014) (UNWTO, 2014)

The World Travel Market 2014 Industry Report reveals 7 out of 10 (70%) UK people took at least one holiday, with a minimum of 7 nights either overseas or in the UK, this year. 1,450 people were asked if they had had a holiday this year to get 1,011 positive answers. Back in 2011 the World Travel Market Industry Report had to ask 1,611 people to get 1,006 to say they had had a holiday that year. (WTM, 2014) Meaning that there was a dramatic increase of over 40% in vacations.

Furthermore, the industry expects more people to go on holiday in 2014 and beyond with more than 1 in 2 WTM exhibitors and buyers expecting to conclude business deals of a total greater value than in 2013 of ÂŁ2.2 billion (â‚Ź3 billion). (WTM, 2014)

8

(WTM, 2014)

North America and Western Europe have the highest online purchases within the total of online travel bookings.

However, North America had the lowest growth % in the recent years and Western Europe caught up with the North American market. More travellers were booking accomodation online. Within the regions of bookings made Western Europe was once again performing the best. In particular the city Madrid in Spain.

Online travel is increasingly going mobile. Given the increased penetration of smartphones as travel tools, some of the largest online travel companies already report a significant % of their bookings via mobile. Moreover, the opportunities for mobile travel applications go beyond bookings. Advertising revenue will flow to travel apps in part because they are able to ask and collect location data from users. Mobile is also particularly strong for last minute hotel bookings. Hotel Tonight leverages the last minute and spontaneous nature of many mobile mediated travel bookings, Orbitz noted that over 70% of reservations coming through smartphones are being done within a day of check-in, and Expedia reported that 68% of its mobile hotel reservations are done within 24 hours of the planned stay. Mobile has clearly created a new business opportunity in hotel booking, creating a channel through which to sell rooms that otherwise would remain unoccupied and unsold. (Insider, 2013)

By 2015, 9 out of 10 consumers will have a mobile subscription.

29% of travellers have used mobile apps to find flight deals 30% have used mobile apps to find hotel deals 15% have downloaded mobile apps specific to upcoming vacations 85% of leisure travellers use their smartphone while abroad 72% post vacation photos on a social network while still on vacation 46% check-in to a location (eg Facebook) while on vacation 70% update their Facebook status while on vacation

(Santos, 2013)

(Wintle, 2012)

The increasing integration of mobile and social media is clearly supporting the growth of tourism and giving easiness to travel for any occasion. Apart from the mobile and being connected online.

The rising popularity of Low cost airlines is supporting the growth of traveling, traveling has become accessible and convenient in many ways. Thus, convenient and accessible services in tourism such as low cost airlines has opened a new market to travellers on a budget.

(Phocuswright, 2015)

Therefore, today Low-cost carriers are the most successful sector in air travel with the business model embraced by many scheduled airlines. (WTM, 2014)

9

low cost carriers The global financial crisis causing an economic slowdown has lead consumer to search other methods of traveling.

Consequently, low-cost carriers (LCCs) recorded growth with 4 years of consecutive growth since 2009. (Sivan,2014)

Infact, in Europe LLC accounts for 32% of all Europe air traffic in 2013. A 15% increase since 2005. And has the highest number of destinations and seats per day. (airlineprofiler, 2014)

The prime movers of a low-cost model in Europe were Ryanair and easyJet, giving them a head start that they have exploited to the full. On launching their first European services in 1996/97, they were both able to bring that initial surge in passenger numbers delivered by significantly lower fares. Indeed, as every route the carriers opened in their early days was new to low fares, so the majority of markets saw a significant jump in passenger numbers through fare stimulation. This helps explain the healthy growth rates achieved between 1997 and 2000 in the UK to the European market. (Aviationeconomics.com, 2014) (Airlineprofiler, 2014)

In Europe Between 1996 and 2001, low-cost passenger numbers grew by around 40% per year, while FSC managed just 2%.

(Aviationeconomics.com, 2014) Thus, Europe is not only the most potential market within the LCC segment but the most potential Air Traffic region for the LCC market as within the total European Air traffic market, LCC accounts a potential growth.

(Airlineprofiler, 2014)

Today, Europe remains as the leading region in the LLC market.In fact, Ryanair has more daily flights of 1600 over UK’s flag carrier airline British airways with 1000 flights a day. (Ryanair, 2015) (Britishairways.com, 2015)

10

LCC capacity within Europe, by contrast, has grown at an average rate of 14% each year, and the market has tripled from just below 10 million seats to just over 30 million. The Top 5 country markets for LCC capacity in Europe are the UK, Spain, Italy, Germany and France, all with over 3 million international LCC seats in May 2013 (OAG, 2013)

Moreover, LLC had flown saver than FSC. During the period between 2003 and 2013 FSC recorded 818 serious incidents whereas LLC recorded a mere 112 incidents which was only 14% of the total FSC incidents. This is highly likely to be because LLC flies shorter distances with lighter aircrafts.

(Airlineprofiler, 2014)

11

related trends 1. Online DIY travel agent 25% of flights are purchased online directly by consumers via online travel agents such as Expedia and Priceline. These website are search engines that help flight broswers to find the cheapest flight on the desired date of travel. In 2012 Expedia reported a gross sale of over €30 billion and Priceline with over €25 billion.

(Euromonitor, 2012) And today these online travel agents are offering more than just the purchase of flights. After the selection of flights, the booking selection of accommodation is followed and then by car rentals. This concept allowed consumers to finish all bookings necessary for their trip on one platform under one transaction.

LCC themselves are offering these extra options as well in order to make use of the potential of increase sales of these extra services. Thus, understanding the importance of providing maximum convenience to online bookers has increased the likeliness of sales. A good example is Booking.com, the world’s leading accommodation site owned by Priceline, state that the car rental bookings increased 32% year-over-year. (Tnooz, 2014) The two major online travel agents today are:

12

2. Poshtels Hostels are making a bid for the cost-conscious, style-seeking consumer, glamorizing their properties to compete with boutique hotels. (WTM, 2014) LLC users are highly likely to be cost conscious as they chose a cheaper option of flying. Thus these people are most likely to book accommodation in cheaper places such as hostels. Therefore, the demand for accommodation of hostels has created competition among hostels that today they are offering more than the standard hostel facilities and services, termed Poshtels they are hostel based accommodation offering better facilities and services in order to maintain competitive.

Poshtels that stands for Posh Hostels still offer affordable prices as low as they can.

Infact, the Youth Hostel Association spent £13 million (€7.7 million) last year refurbishing its properties, and some even have bridal suites with four-poster beds (yha.org.uk, 2014).

This trend is expected to help the UK hostels segment grow 3% from 2013 to 2018, to reach sales of £216 million (€290 million).

Meanwhile in Europe, peer-to-peer eating offerings which offer travelers the chance to dine in local people’s homes are exploding in popularity. (WTM, 2014) The report identified this trend as an extension of the popularity of alternative accommodation services like Airbnb as consumers seek value for money together with more authentic experiences on their holidays. (Holliday, 2014)

3. Local travel experience It is often the case that travellers get a little bored of looking at another building and visiting another museum. Tourist attractions can only keep them interested for a while and they end up spending hours in bars and cafes just sitting around doing what you would otherwise do at home.

Thus, the idea of sharing economy seems to be getting increasingly popular, such as those that let people rent their apartments and homes like Airbnb, or get car rides, such as Uber. Travellers were taking advantage of saving costs using these services whilst gaining a new local experience. (Tripalocal, 2014)

Therefore there is the increasing desire to search for more fulfilling experiences when traveling. The growing search for experiences is linked to the increasing need for people to define their identity.

People are now, more than ever, engaging in cultural activities, gastronomy, language learning, etc.

And with the emergence of Peer to Peer (P2P) marketplaces, sites like Couchsurfing, AirBnB, Lyft and Tripping are transforming the way in which people travel.

And as nowadays travellers are armed with more information than ever before. There are literally thousands of websites that publish detailed guides about a destination or travel product and social media has a tremendous influence, due in part to the speed and accessibility of information. Holidays have therefore become more than just periods of rest and relaxation. They are now opportunities for learning and self-development as well.

Airbnb is a start in achieving fulfilling experiences aswell as going local for traveling. Airbnb connects people to unique travel experiences, at any price point, in more than 34,000 cities and 190 countries. Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.

As a result, there is a growing trend for holidays that allow travellers to immerse themselves in the destination’s culture and engage in authentic local interactions and local experiences.

There are services that provide a guide to local experiences. The Tripbods application and website is one example. Tripbods are local experts who share their favourite places online and uncover hidden local gems. They help you get straight to the best bits and feel more like a local, less like a tourist. (Tripbod, 2015) Another example, Withlocals is the peer-to-peer market place similar to Tripbods where local people offer experiences and their skills to travelers. Their mission is to connect people and cultures through food and unique experiences. (Withlocals, 2015)

13

4. Transportation of more than his/herself Today, as more and more people are wanting to travel conveniently. The appreciation and use of delivery services has become popular.

Delivery services exists in all major areas of the pathway a traveller needs to take in order to travel. From retail stores to the airport, all developed countries offer a delivery service at a cost for those who cannot manage time or prefer to pay for everything delivered. Therefore, consumers are demanding delivery services but at a professional prompt level. In UK next day delivery is considered a standard. For example, the most successful online retailer ASOS offers free next day delivery for orders great than £100. Or for any orders below £100 for just £5.95. Delivery is fully tracked, and delivery notifications via SMS and email are provided by the carrier. And if you purchase a premier membership, shoppers can take advantage of unlimited free next day delivery regardless of the amount purchased. (Asos.com, 2015).

“Delivery costs and free shipping trump faster delivery” Free shipping continues to drive purchasing decisions. 58% of online shoppers have added items to their shopping carts to qualify for free shipping and 83% are willing to wait an additional two days for delivery if shipping is free. More than one-half of online shoppers said they want to see the total purchase cost early in the checkout process. And while consumers prefer most of their packages (74%) delivered to their home, there is a growing trend for alternate delivery options. Only about 43% of shoppers in the survey were satisfied with the flexibility of changing delivery days or rerouting packages. (Reston, 2014).

Thus, it was clear that a desirable delivery service among online shoppers consisted a free of charge service that had other alternative delivery options besides their home address.

Urb-it - A creative convenient online shopping service. Indicating the desire for delivery service urb-it is not a new way to ship, it’s a new way to shop. If you have a store in Stockholm with an integrated online store, you can connect to urbit and become part of a modern ecosystem that allows your customers to act in a whole new way.

And as an urber you get to work how you want, when you want and get paid directly after delivery. (urb-it 1 hour, 2015)

14

Purchase

Pick-up

Delivery

You order a product from an online store, just as you normally would.

Most often, the order to a central warehouse located very far away, but choose urb-it that delivery can order directly to the store closest to you, where the clerk put your item in a bag, just as if you are on site and shopping.

Your purchase order notifies directly to our hundreds of urbers moving in the city. The closest urber to the store of your order will confirm the delivery of your order and send a personal message from that the item is on its way to you.

You get the goods personally delivered within an hour or whenever you wish to receive it. You can choose if you want to get it to your home, at the office or elsewhere. And because the purchase was made locally delivery occurs on foot, by bicycle or by public transport, without any environmental impact.

Chapter 2

Contaminated Segments

15

contaminated segments

- The Users of Low Cost Carriers

1. European Tourists Europeans spend 77% of their holiday trips in their own country.

A recent Eurostat publication showed the importance of domestic tourism for the tourism sector. Domestic tourism expenditure by residents was twice as high as inbound tourism expenditure by non-residents. (Demunter and Dimitrakopoulou, 2011) Domestic vacations were on average half of all the age groups as seen below.

In 2013 70% of Europeans travelled for at least one overnight.

Only 11% of Europeans expect not to go away in 2014 because of the current economic situation. 4 in 10 Europeans plan to spend their main holiday in their own country. And over 4 in 10 intend to have at least one of their trips in the EU in 2014. (Europa. eu, 2014) And as domestic travels taken by air as well as travels within the European region are short. There was no need to purchase expensive flights that offer full services as travllers do not need a meal or a screen to watch movies for flights running less than 3 hours.

Therefore, this explains that the large numbers of LCC seats sold in Europe shown in the pervious pages, LCC is defined most popular in Europe, LCC covered 32% of departures in Europe (airlineprofiler, 2014) It is estimated that the number of travels in Europe using a LCC is approximately 17,600,000 (1,100,000,000/2 X 0.32). As a result of the demand of LCC flights within Europe.

Ryanair intends to focus expanding on “old reliables� like Britain, Italy and Germany that are specifically on short, high frequency routes, many of them domestic. (RTE.ie, 2014)

(Demunter and Dimitrakopoulou, 2011)

16

2. Mini Moon travellers

3. Mid life crisis retreat

Budgets, time constraints and marriage in wrong seasons among just-married couples are contributing to the “mini-moon” trend. “A survey confirmed that most newlyweds will take a several day mini-moon rather than not taking a honeymoon at all,” says Martin Slagter, vice president of HomeAway, (Heiderstadt, 2011) And in order to stay within budget and time limits, mini moon travellers find destinations within their country or to close by countries using LCC.

Holidays, vacation and retreats are often solutions to both men and women going through a mid life crisis. Women are seeking the Divine and the Frisky within themselves and often each other. And they are exploring all the possible avenues. Most people consider a vacation a luxury and a time for mindless play.

Perhaps that is why the retreat is becoming fashionable among women. While they want some play and relaxation, these women are on a mission to find something bigger in their own lives. And though retreats can be pricy, for many women, taking a retreat is not considered a luxury item. Instead retreat taking has become a part of their ritual self care; carefully scheduled into their yearly calendar. (Madsen, 2012) And with the option of taking LCC, those women in a mid life crisis as well as a strict budget can also indulge travelling.

Besides newly wedded couples, couples in general are taking short vacations to get to know each other better before marriage and to enjoy life with vacations over traditional date routes in town. With the easiness to travel cost effectively nearby to cities for a weekend with LCC. More couples are making use of LCC to travel together for an intimate travel experience.

4. Mid life couple vacation When mortgages are paid off and children have moved out couples believe its time for them to enjoy their life through travelling. Earning the highest income they can in their life and having no other responsibilities for expenditure, mid life couples go on vacations to treat themselves for the all the hard work they have done. However, not all these couples can afford luxurious vacations and in their nature they are financially conscious as always. Thus, these couples usually head via LCC to quiet nearby destinations where they can relax and enjoy leisure.

17

5. Business travellers

7. Young travellers

Business traveller are looking to cut costs by embracing low cost carriers such as EasyJet and Ryanair. Corrie Long, air product manager at Capita travel and events, said: “Low cost carriers have become increasingly acceptable as part of business travel planning for our customers as we continue to help customers create stronger policy controls around the use of ‘lowest logical fare’.

With the ability to purchase LLC flights, young people are given the opportunity to travel abroad more than ever. Opening a new market to the travel industry. It is possible to arrange a vacation within the capability of a young adult not only flyinh LCC but even by booking cheap accommodations such as hostels and eating out cheap. And these travellers now represent 20% of international tourism, making the group an important economic force. (Mohn, 2013) These young people are attracted to fashion and fast fashion.

“The price dynamics and flight scheduling convenience are factors in their popularity.” (Leach, 2013) Ryanair estimates that around 20 million of its 83 million annual passengers are business travellers and aims to increase that number to 30-36 million.

(RTE.ie, 2014) Infact, The CEO of IKEA is known to only fly with LCC and this has been a hot topic in public, he was published by many publications for flying easyjet. (Ballinger, 2008) Moreover, in the Business Traveller awards, voted by the readers, easyJet has consistently won Best Low Cost airline with BA winning best short haul airline.

(Otley, 2009)

The rising cost of University tuition and an uncertain future is leading to an increase of students taking gap year before heading straight to university after college. Many students are taking time to travel, volunteer, and think about their future before rushing to University. In Denmark and most of Europe, a gap year is normative. According to the University of Rochester admissions department, more students are taking “gap semesters.” Jonathan Burdick, dean of admissions, said that “students want six months off to travel and combat the burnout senior year stress. They end up starting with us in January.” (Parker, 2013)

6. Food lovers Food has always been a central part of the travel experience, offering not only interesting new flavours but also an insight into the customs and traditions of a place. Over the last decade, however, food has been taken increasingly seriously and, with heightened public interest, has come a new wave of food travelers, people for whom food is not just an enjoyable part of a trip but the raison d’être for traveling in the first place. (TourismLink, 2013) In Spain, food was thought to attract as many as 5.6 Million visitors in 2012 an increase of 4% from 2011. (TourismLink, 2013) In the chart on the right Spain and Turkey are predicted to have a high increase in the expenditure of tourists on food for 2018.

Moreover, companies in the travel industry Priceline, bought OpenTable, an online dining reservations company, for US$2.6 billion (€2.3billion), while TripAdvisor bought La Fourchette, a European online restaurant reservations service. (WTM, 2014)

18

(Euromonitor International, 2013)

In Key Words consumers under the trends are:

travellers cost conscious time conscious want convenience want new experience 19

where do they shop?

Consumers that are contaminated in the trend of traveling at low cost are cost conscious.

1. affordable fast fashion stores such as H&M, 2. at mass merchants such as M&S in UK and 3. on affordable online stores such as ASOS. Thus, they shop at

As well as being cost conscious another key purpose of shopping at fast fashion stores is to purchase more often something new and fashionable over a single item that is more costly.

Quantity is desired over quality. Fast fashion consumers continuously seek new clothing to wear that is within their budget. Thus, a key competence of fast fashion brands is that they are able to provide consumers with new clothing, with new designs in line with the fashion trends. Another competence appreciated by shoppers of fast fashion and mass merchant brands is that they have a large number of stores in all shopping districts as well as central districts. Giving convenience of location and the easiness of access.

what do they shop?

LCC travellers all have different tastes and desires of fashion, However, one thing in common is that these consumers shop essential products that they have to wear on a everyday basis, which are also products that need to be packed essentially where ever they are travelling to for what ever occasion and duration. These most basic clothing items include underwear, sleepwear and socks.

20

Lingerie Market Global lingerie market is estimated to be around $29 billion USD in 2012 (€25 billion). Considered as a historically resilient sector by industry analysts, the industry has witnessed good growth rate even during recessionary pressures. With a positive growth rate over the coming years, market for intimate wear is expected to reach $30 billion by 2017 (€26 billion).

Today, a large number of fast fashion stores are offering lingerie products. & other stories a recently new fast fashion store has a large variety in lingerie and well a H&M. Indetix has it’s own serperate fast fashion intimate brand, intimissimi.

Much of the market potential for the product lies in Western Europe and North America comprising 65% of the global lingerie market. During 2012, more than one fourth of the global lingerie sales were made in EU-27. (Fibre2fashion.com, 2012) In Europe, France is regarded to generate more revenue in the sales of intimate apparel. More than two thirds of the British online retailers reported a drastic increase in their sales figures during 2011. (Fibre2fashion.com, 2012) Lingerie has blossomed from a commodity into a fashion market segment with higher margins than apparel, according to Citi analyst Nancy Marino. Younger woman want style and value while older women want comfort and value.

The industry is growing in the mid to high single digits per year versus low to mid single digits for women’s apparel overall and growth is accelerating. (Lepore, 2011) Moreover, the women’s intimates and socks/hosiery market grew 6% year-over-year (YoY) to $14 billion (€12 billion).

The women’s intimates and socks/hosiery market grew to $14 billion (€12 billion) in 2011, from $13 billion (€11.5 billion) in 2010. The increase was driven by a 7% gain in intimates i.e. bras, panties, shapewear and daywear, and a 4% gain in socks/hosiery.

Within intimates, daywear dollar sales grew 14%, followed by bras at 9%, panties at 6% and shapewear was flat. (Badkar, 2012)

(Lepore, 2011)

Underlining the pie chart above, Bras are clearly the main sellers of the lingerie market and of what most lingerie brands concentrate in offering. However, the second best performing category of panties is an important cateogry that is somehow less offered by most brands in terms of funcationality and creativity.

Moreover, bras are usually purchased after physically trying on to see the fit giving limitations when sold online and in stores with few dressing rooms. Whereas for panties it is more convenient to purchase online.

21

Strategic fit The travel and tourism industry is continuously growing opening new markets with the service of low cost carriers. More and more people are able to travel within a budget and to carry out different experiences and activites by exploring new cities. And in relation to the fashion industry these consumers are shopping for clothing for travelling in fast fashion stores such as the essential items like socks and underwear, and within the fashion market lingerie seems to be performing in a potential way to introduce new products, especially in the field of underpants.

Therefore, because travellers can sometimes be forgetful to pack the basics such as underwear, socks and even sleepwear. And the fact that there is a strict limit to the size of suitcases on Low cost carrier flights, a new business idea related to reducing the space in the suitcase has potential to give convenience to these consumers. And with the lingerie market growing today it is advantaging to develop a lingerie product that does not have to be packed inside the suitcase of the traveller so that it gives the traveller more space to pack other needs or desired items also eliminating the effort to re pack dirty laundry.

22

Chapter 3

The Idea

23

the idea There is potential to sell recycled disposable washed ultra light yet fashionable lingerie, called D.handy (Disposable yet handy with a fashion touch of being Dandy) to travellers, that will be delivered to their accommodation at the time they desire. They can purchase the products on the same day, time online when they book their flights and accommodations. Thus, there will be no need to repack dirty laundry it is a wear and toss product allowing travellers to have space for more clothing, personal items or shopped goods.

Consumers within the traveling trend stress the important of convenience on all factors when deciding upon purchases. If D.handies are adapted by a certain company this company will need to have excellence in managing effectively to offer cheap priced products as well as to deliver them at the right time and at the right place. Thus, the choice of a delivery company was chosen over flight search engines. As the success of D.handy relies on the delivery service of the products to fulfil the convenience and easiness that they were created to offer.

the objectives 1.

To provide professional delivery services of D.handy products in order to reach optimal level of great delivery experiences in order to increase and maximise consumer loyalty of the product and delivery company.

2.

To provide seasonal disposable collections at the lowest possible price in order to be perceived as accessible and convenient yet fashionable, trendy and not of cheap quality.

3. To penetrate globally in all potential travel markets and furthermore expand in selling to wholesalers in the future.

24

selection of brands D.handy has to be fulfilled by a professional transporation company with experience in door deliveries and managing stock internationally. As D.handy is not just about being a convenient product when worn but a convenient package of service from the purchase phase to the final disposal. Thus, in order to find the best potential transportation company to adapt D.handy. The top 3 frieght companies: UPS, DHL and FedEx where evaluated under the criteria of:

- The guarantee of professional worldwide delivery at the time

desired by the consumer - The company image related to travelling - Brand loyalty - The level of corporate efficiency to offer convenience - The potential to manufacturer, market and stock new products - Level of technical integration - The global presence and number of warehouses

25

Brand ANALYSIS With the criteria mentioned before a benchmark chart was undertaken by giving a weight to each criteria based on how important each criteria was to the business idea of D.handy. The two more important criteria was the professional delivery service and the travel image. Therefore, although the final result worked out that DHL was best performing out of the three, the second best performer FedEx was only one point behind and had the best results under the two most important criteria. (highlighted in orange). Thus, in the case for adapting of the new business unit of D.handy.

FedEx shows to be more potential.

Regarding the size of the companies in terms of the revenue of 2010 DHL was the biggest performer followed by UPS and then FedEx. However, in 2013 UPS performed better than DHL putting them in lead. Moreover, evaluating the growth percentage of the three companies. FedEx had performed the best throughout the 4 years with a total of 12.8% growth from 2010 to 2013. This shows the potential in growth for the future.

(Figures from the annual reports of each company)

26

All three companies were founded in different years. UPS was the first in 1907, followed by DHL in 1969 and lastly by FedEx in 1971. UPS and FedEx were founded in the states and DHL in Germany. UPS is currently the leading service in North America and DHL of Europe. FedEx being the newer company of them all has a younger image and is showing a positive result in growth.

In comparison to the other two companies that were founded earlier than FedEx.

campaigns

(UPS campaign)

(DHL campaign)

(FedEx campaign)

Analysing the camapigns above, the 3 competitors can be defined as below: UPS - Concentrates on the concept that they can deliver any object of shape and weight DHL - Focuses on the communication of ultimate speed of delivery FedEx - Focuses on communicating experience of a delivery adding a the touch of fun

Moreover, the imagery related to travel can be found in FedEx campaigns.

Comparing with the ad campaigns of UPS and DHL. FedEx had more qualities and a more variety of campaigns that communicate to the kind of consumers contaminated by the low cost carrier trend.

27

choice: fedex FedEx stands for the company’s initial name at founding, Federal Express. It is an American global courier delivery service company headquartered in Memphis, Tennessee. (About FedEx, 2015) Generating €40 billion in revenue last year.

The company profits increased for more than 14 consecutive years. The company’s strategic investments in both the network and technology began 16 years ago and continue today. Investing in technology led FedEx to gain a significant share of the market growth that’s fuelled in part by e-commerce.

Operating markets: FedEx is present nearly everywhere in the world, the orange coloured countries are where they deliver and the white is where they do not. There are only 27 countries and islands that FedEx does not operate in. North America, Europe and Asia are the most important markets for delivery services of FedEx and in general.

FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. FedEx inspires its more than 300,000 team members to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

FedEx is organised into operating units, each of which has its own version of the wordmark. The ‘Fed’ is always purple and the ‘Ex’ is in a different colour for each division. The original FedEx logo had the Ex in orange. It is now used as the FedEx Express wordmark.

FedEx Express is the pioneer for express distribution and claims to be the industry leader in this segment. FedEx Express offers domestic overnight and deferred package and freight services, as well as international express and deferred package and freight services. And this service is what is of interest to the idea of D.handy. FedEx express service will delivery the D.handies to the selected cities of D.handy distribution.

28

FedEx continues to make progress in plans to expand footprint in Europe. FedEx Express has opened 100 stations across 11 European countries since 2011. (Annual report, 2014) However, FedEx is still weaker in the European market compared with their competitors. They are present but not known or considered to be used by the Europeans. Thus, they should find a way to create awareness in the European market and one way is to take advantage of the current trends in Europe and to create a commercial product within it. Therefore the purple coloured countries are targeted for distribution of D.handy due to many other evaluated reasons in the marketing ‘Place’ section of the report.

It’s what we do

Mission

A more connected world means more opportunities. That’s why customers count on our diverse portfolio of transportation, e-commerce, and business solutions. Our air, ground and sea networks cover more than 220 countries and territories, linking more than 99 percent of the world’s GDP.

FedEx Corporation will produce superior financial returns for its shareowners by providing high-valueadded logistics, transportation, and related business services through focused operating companies.

Customer requirements will be met in the highest quality manner appropriate to each market segment served.

FedEx will strive to develop mutually rewarding relationships with its team members, partners, and suppliers.

Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

It’s why we matter In a connected world, the power of technology, transportation, information, and ideas compounds and multiplies. Businesses big and small create jobs that lift their communities.

For people who are hungry for the education, goods, services and jobs that can improve their lives, a connected world is a better world.

It’s who we are We are consistently ranked among the world’s most admired brands and employers. More than 300,000 FedEx team members are absolutely, positively focused on safety, the highest ethical and professional standards, and the needs of our customers and communities.

FedEx

is consumers as

perceived

among

1.

an affordable yet professional on time delivery company. Thus,

2. being reliable and 3. avaliable worldwide.

Therefore, FedEx has successfully communicated their values as the receiver received the reliability picture FexEd sent. Their values are slearly reflected in their campaigns on page 27.

29

Fedex Core competences: 1. Employee relations

3. Relationship with B2B clients

Motto “The strength of the people powers the strength of our results” is embodied in our People-Service-Profit culture and our Purple Promise: “I will make every FedEx experience outstanding.” Despite the toughest winter FedEx has ever experienced, team members delivered record volumes, and service metrics were among our best ever for a peak season.

FedEx has integrated their delivery service in every step of the supply chain. From the delivery of raw materials to the delivery of finished goods.

FedEx works with all steps in the supply chain to give businesses a more efficient service and in return, having a wider reach of consumers of FedEx delivery service. Thus, creating relationships with business in all steps of the supply chain.

In fact, many team members volunteered to work on Christmas Day. It’s no coincidence that FedEx was once again recognised by Fortune magazine as one of the world’s 10 most admired companies and No. 1 in the delivery industry.

At FedEx, we believe that when we connect people and possibilities, innovation soars, businesses create jobs that improve lives, and people thrive in communities rich with opportunity and hope for a better future.

We aspire to connect the world in more environmentally friendly and resourceful ways. This in turn has made us a stronger and more efficient company. We also recognize that being a more responsible corporate citizen is increasingly important to many customers who decide to do business with FedEx based on our sustainability goals and progress.

(Annual report, 2014) 2. Management of fuel FedEx manages their cost of fuel efficiently, and so they are able to carry out a large number of deliveries global with a stable control on their main source, fuel.

Our efforts are well ahead of plan. For example, we recently revised both our FedEx Express vehicle fuel efficiency and aircraft carbon emissions improvement goals from 20 percent to 30 percent by 2020 from 2005 baselines. Modernizing our aircraft fleet has significantly improved efficiency and reduced emissions while saving millions of dollars annually in fuel and maintenance costs. (Annual report, 2014)

30

(Annual report, 2014)

FedEx already offers a professional delivery service of Traveller’s baggages.

Travel Light, Bypass Lines by Shipping Luggage Ahead Travellers can take their luggage to a FedEx Office or FedEx World Service Center and FedEx will ship it to their destination.

FedEx advertises on their website this service: Rather than wasting valuable vacation time jostling with other travelers around the luggage carousels or loading your car with vacation gear, let FedEx handle your baggage for you. Just bring your luggage to your nearest FedEx Office location and let your vacation begin.

Shipping your luggage ahead is also perfect for transporting extras such as: - Seasonal clothing for multi-climate traveling.

- Golf bags, tennis racquets and other sports equipment.

- Souvenirs and gifts.

A few of the benefits you’ll enjoy when you ship luggage with FedEx: - Less stress. Have peace of mind knowing you can track the status of your luggage and know precisely when it has arrived.

- More convenience. There’s no need to wait in line to check your baggage or stand around at the carousel once you reach your destination. A few days before your flight, simply bring your luggage to a FedEx Office or FedEx World Service Center location to be shipped via FedEx Express or FedEx Ground to the destination of your choice. Your luggage will be waiting for you when you arrive.

- Fast service. When you need your luggage overnight, ship via FedEx Express. FedEx Ground also offers 1 and 2 days service to many locations.

- Cost-effective. Ship for less by bringing your suitcases to an eligible FedEx location a few days before your departure date and use FedEx Ground service. Find the transit time for your luggage to get to its destination.

- Extra protection. Help to protect your suitcase against normal wear and tear with our inexpensive recyclable luggage bags.

These durable plastic bags are puncture- and tear-resistant and can be purchased at FedEx Office and FedEx World Service Center locations.

However, this service is not so known or yet used by a large number of travellers as it is a new type of service that requires attention of how the service is run and travellers need to physically go to a FedEx office with the packed bags before their flight.

Thus, a product that is sold online and delivered to the travellers destination is a more easier service that can be adapted by anyone easily at anytime and at any place.

Moreover, once travellers experience the delivery of D.handy to their destination of travel they would have experienced the delivery service of FedEx. Thus, they will be able to consider FedEx when in need of another delivery task. Moreover, FedEx express service has declined in sales in this recent year.

Therefore, D.handy should help bring it back up.

The benefits of FedEx once adapting D.handy are: 1. Sales of a new commercial business unit.

2. Making professional positive delivery experiences with new consumers to increase awareness and brand loyalty.

3. Offering a new product online for travelling thus associating FedEx into more depth with the multi million travel industry.

And as fedEx already has FedEx express operating in Europe with usual ground delivery rounds. With D.handy stocked in the warehouses of the targeted cities. FedEx just needs FedEx express service to deliver D.handy as an addition to their usual deliveries. Since they mange efficiency so well within the company.

D.handy should bring more advantages to the company.

31

d.handy COMPETITORS D.handy Competitors are fast fashion brands that offer lingerie products and online retailers that offer affordable lingerie with convenient delivery services. The popular brands within fast fashion brands of Europe in which tourist and locals were shopping for lingerie were Intimissimi owned by Inditex, H&M and Golden Point and the most popular online source was ASOS. These brands where benchmarked by each other in order to find the best player. The criteria of benchmark are the criteria most important to shoppers when shopping lingerie and are weighted by the amount of importance to these shoppers.

Again the weight of the criteria was weighted on the importance of the qualities shoppers looked for when shopping lingerie products.

Out of the criteria the more important ones were Comfort/fit, The quality of material, Fashion content and the Price. The price criteria here works in a way that the higher the rating the better the price was percieved by the shoppers. Meaning that the price was cheaper. From the final result of the chart Initimissimi was the best performer followed by H&M. Intimissimi was also the best performer under most important criteria.

D.handy should consider Intimissini’s collections and their communication strategy into depth to benefit from the benchmark.

Intimissimi has buillt an image upon being eco friendly and engaging consumers to participate and earn pleasure in doing so. Intimissimi joins the eco-sustainability cause and launches a unique initiative: the scrapping and recycling of your old items. Thanks to “Recycling your Bras” project, Intimissimi in cooperation with I:CO gives life to your old items. Special containers have been erected in all of Intimissimi’s flagship stores to collect old items, no matter what the brand. The recycled fabrics are being used to manufacture soundproof insulating board thereby helping to reduce waste and alleviate noise pollution. And consumers that brought in their old clothing were given an Intimissimi voucher. (Uk.intimissimi.com, 2015)

32

Chapter 4

Marketing Plan

33

product D.handy is an upgraded product offer of currently existing disposable underwear, with the added competitive value offering:

1. Maximum convenience D.handy products are recycled disposable ultra light underpants and socks for everyday wear especially for traveling, delivered right to the accommodation of the consumer’s destination. It is a wear and toss concept so that travellers do not have to worry about packing their essentials or repacking dirty laundry that will take up their limited luggage space.

D.handy is all about the professional delivery for convenience. And FedEx is a company that has professional knowhow in delivery and corporate efficiency. Today they have over 200 warehouses worldwide which will be able to stock D.handy products worldwide.

FedEx with their usual ground delivery service will just add on delivering D.handy products like any other package, employees and trucks will be slightly increased according to the demand of D.handy. And to promise maximum convenience D.handy products will be delivered washed for instant wear, packed inside a multi functional packaging that consumer can use as the disposable bag of their worn D.handies when throwing away. Thus, creating a sustainable, convenient and financially advantaging package.

Moreover, the delivery time of the D.handy it decided by the consumer and can be changed 24/7 via the FedEx mobile app and on their website.

FedEx already has a mobile application in which can adapt a section for time selection of D.handy consumers. Thus, those that choose to download the FedEx application in order to change the time of delivery will be exposed to the FedEx services in general.

Time changes can also be done via the homepage of FedEx. Again generating more visit to their website.

34

2. The balance of fashion content, price and quality.

The new business unit D.handy, stands for disposable yet handy, it may be of disposable quality however it will be of maximum handiness during its usage. Moreover, the term Dandy is referred to men who dress is a fashionable manner. D.handy although with a concept of wear and toss will deliver a certain fashion standard to please consumers even for a single day. Dandy people are more likely to want to pack more clothing and shop clothing during their trips. Thus, the product will have seasonal designs to implement fashion content to the maximum but keeping prices at an affordable rate. D.handy it the perfect balance between design, quality and price as stated in positioning in the next page.

3. Ethical D.handy will be made of 100% recycled cotton with seasonal collections and delivered in the packages that can be used as disposable bags made of recycled material. Moreover, in relation to fashion D.handy will offer 2 seasonal underpants designs that will be sold for 6 months (a season) only. So every 6 months will have different special designs.

And as D.handy will be manufactured in sweatshops in order to offer the affordable prices. In order to support the communication of the existance of women working in poor condition sweatshops and their need for support. The sweatshop women working in the factory manufacturing D.handy will personally design the 2 special designs of one femal and one male underpants. And each special design sold will contribute in funding a better working place for the sweatshop women.

All D.handy sweatshop women will be given the chance to design and out of all the designs the best will be selected and adjusted to fit the trend of the current season. This will also give motivation to the women as the winning design will receive an incentive and fame. Moreover, the so consumers that choose to purchase the more fashionable D.handy designed by the sweatshop women, for only a day’s wear can feel the good deed of the purchase even if it is to be thrown away the next day or so.

D.handy will be a collection consisting of: 4 female underpant styles: - Brief - Bikini - Thongs - Hipster plus 1 special seasonal style 3 male underpants style - Hip Brief - Trunks - Boxers plus one special seasonal style 4 unisex sock styles - Pop socks - Ankle socks - Low calf socks - Mid calf socks

D.Handy, will not include Bras, as stated before bras are usually purchased after physically trying on to see the fit thus, they are less likely purchased online.

Moreover, women do not change their bra everyday.

For vacations under a week an average women would take 2 bras plus and one they will wear on the day of travel. And 2~3 bras do not take up so much space in the luggage compared with 6~7 underpants and socks plus sleeping pants.

Sleeping pants were included in the collection as sleepwear is an essential item for packing. However, understanding the travellers usually have a comfortable top within their packed clothing that they can wear to bed but not of bottoms. It was highly likely that if both tops and pants were included in the D.Handy collection that pants would not be of more popularity over tops. Thus, in order to created the most commercial collection tops were excluded and pants were included.

2 unisex sleeping shorts - Mini - Short = A total of 15 styles All chosen styles are representative of each category. Every other model that competitors sell are a slight adjustment and modification of the main styles consisted in the collection of D.handy.

35

positioning & Price D.handy will be positioned amoung fast fashion brands and but offering a cheaper and convenient price, it should not be perceived as those cheap disposable underwear sold by Onederwear or Walmart. D.handy will implement further features of fashionable design content even with it’s short term product life. It will have better quality than the already existing disposable underwear but to the optimal level of keeping the retail price below fast fashion brands.

Thus, looking at the the price position of the main products, female underpants of the two competitor groups the disposable underwear brands and fast fashion brands. D.handy will be positioned more or less in between the two competitors in order to have the competitive advantage of offering cheaper prices than fast fashion brands with the added value of convenience as well as quality fashion design integration. Consumers should appreciate the quality, the price and most of all the convenience of D.handy.

Respecting the potential of the price lining strategy, all Underpants styles will be priced the same in order for consumers to have a set price on the concept of D.handy. To keep it clear and simple that D.handy offers maximum convenience.

D.handy will be the perfect solution to travellers that are time and money conscious.

Socks prices will be priced nearer to the cheap quality disposable socks sold as mass merchants and online such as walmart. As consumer perception on the expenditure od socks is much lower than of underpants.

Whilst sleeping shorts will have the same strategy of being near the middle price position as it is also a fashionable quality item like the underpants, and last longer than one day.

36

D.Hand y itself is a product with a unique selling proposition.

The final pricing of D.handy products positioned in between the fast fashion and disposable brands still remain profitable when considering the cost of managing fuel and commission for the online platforms in which D.handy will be sold on. All details of budgeting can be found in the Merchandising Plan.

37

place D.handy will be sold on selected online ticketing platforms of flights and accommodation.

Online because the majority of booking websites offer more services after the booking of flights such as the accommodation and car rental so that it is more helpful to make a booking complete of a trip. Apart from these search engines LCC themselves are also providing all these different options on their platform to service maximum convenience as well as profits from online bookers. An example of Easyjet online booking process below:

Globally, mobile bookings increased by 20%, followed by 65% of Europeans making last miunte bookings last year. Due to the easiness of booking online via smart devices of cheap flights Europeans are more than ever taking advantage of the mobile and cheap flights by booking within 7 days before their departing date of th trip. And these last minute bookers had longer trip durations. Moreover, most airlines provide mobile boarding passes giving travellers more convenience.

An example of easyjet mobile booking on the right: Because D.handy is a new product in the market, in the beginning they will be sold on the two major players of LCC: Ryanair and Easyjet. And on Priceline owned platforms: Booking.com, Kayak. com and Swoodoo.com so that the first perception of consumers is that they are a commercial product offered on the most popular website for ticketing. D.Handy can make use of the popular website by being associated with them in maximise awareness as an important brand not just sold anywhere. And only flight purchases to the destinations D.handy will target in their first wave launch will have the selection page of D.handy showing after the booking of flight tickets before proceeding with the final checkout.

Moreover, in order to help FedEx settle, build up experiences and synergies as well as to learn the efficiency of D.handy so that is more potentially manageable in future penetrations. Thus, as not all cities in which FedEx operates in will be given the choice of purchasing D.handy for delivery. And also in order to create desire from consumers traveling to cities that do not yet deliver D.handy, the excitement for the launch will be accumulated as time passes.

38

Only the European region will be targeted for the first launch of D.handy as there are more sales of LCC and they are one of the least developed regions for FedEx in professional delivery services in which they already exist in. FedEx still needs and wants to grow in Europe can use D.handy to create awareness of themselves and reach travellers, widening their consumer profile.

And UK will host Rugby World Cup this year in New Castle near September. Berlin will host the UEFA Champions league

D.handies will be launched in strategic waves similar to the launch of iPhones of Apple. The first wave cities were selected under the criteria of:

Thus, evaluating all the factors above the destinations of the first wave launch of D.handy was selected. Along with the possible second wave, third wave and wholesalers that look potential for the future at this moment. They will be reselected on the situation in the future.

Firstly, to understand where the targeted consumers were travelling.

For business trips: Milan is highly likely to be flooded with visits as they will hold the EXPO starting in May through to October.

1. Thus, the popular destinations of the leading LCC, easyjet and Ryanair where analysed. edreams outlines the top 10 cities visited via easyjet and Ryanair flights: (edreams, 2013)

The two airlines both had London Paris, Milan, Madrid, Rome and Barcelona in common. (hightlighted in bold) 2. Major international events that would attract tourists were considered.

Sporting tourism is an important criteria on the purchasing decision of travel. 69% of bookings increased in Rio for the holding of the Fifa world cup last year. (WTM, 2014)

FedEx fortunately already operates in all the cities above and has warehouse in all these cities to stock D.handy in order for prompt delivery.

The sales to wholesalers will be the very last step of distribution when all major travel markets are covered and that there is demand for D.handy by non travellers. As FedEx is a delivery company that needs to maximise delivery experiences of individuals in order to maximise and reach new consumers of FedEx delivery service in general.

39

D.Handy will be avaliable for purchase on the website of FedEx and most importantly on the websites of Priceline.

And on the two major LCC Ryanair and easyjet. in fact 99% of Ryanair ticketing is booked online. And 33% of Ryanair sales is in the European area. And for easyjet 21%. The availability on these two major players in LCC will support the awareness of D.handy.

Once they purchase D.handy via one of the low cost airline website or a platform of Priceline. The code that they are given after the purchase of their flight i.e the booking reference. The same booking reference can be used to insert on FedEx homepage to select the time of delivery of the package at desire location. Since it is the same booking reference as the flight the date will be automatically inserted along with a estimate time of the package delivery if it is wanted at soon as the traveller arrives at their accomodation. And certainly these times can be manually changed.

The reason for the need to go on to their website is because the pathway of booking flights and accomodation works in these ways: And in the introductory stage of D.handy travellers will first:

Search on Airline websites or search sites

Book Flight

Book Accomodation

Purchase of D.Handy

Book Rental Car

Total Checkout

They may or not either book a hotel or car.

OR Booking .com search

40

Book Accomodation

Purchase of D.Handy

Total Checkout

FedEx Website

FedEx Website

Or it could be that they end up on FedEx website trying to find disposable underwear or once D.handy is more widely known if could be that they have already purchased their flights and booked accomodation from sites that do not offer D.handy but want to purchase D.handy so they go straight to FedEx website. In the end the final destination is always the FedEx website. Therefore, this will increase the number of visitis to their website and thus increase the potential for visitors to browse the homepage and discover other services and get to know more about FedEx and any special events or new campaigns that will be on the homepage. And if the traveller for any reason changes there destination or want to rearrange the time of the delivery all they need to do is revisit the website or otherwise download the FedEx application where ever they are to easily adjust any details.

When purchases are made on websites other than FedEx the payment will be directed to the website holder as the transaction will done in one payment by the consumer. The website owner will take off the commission % and redirect the amounts to FedEx weekly. An employee of FedEx will be sent to all the websites to do the calculations and redirection.

In the future D.handy can be a product for many uses for different occassions in different locations.

For example festivals held outdoors. Where there is a need for disposable underwear. D.Handy will generate sales.

The benefit for online travel agents to sell D.handy: 1. First of all they will receive commissions of every D.handy sold.

2. For the first year Priceline will be given the exclusivity among online travel agents to sell D.handy on their websites: Kayak.com, Booking.com and Swoodoo.

Giving their consumers the extra convenience with the convenient product.

Thus, once D.handy become known by more travellers they will associate with Priceline and at one point serch flights or accomodation of Priceline owned websites in order to purchase D.handy. An example of easyjet’s website on the right side.

41

promotion D.handy will use both above and below the line advertising. Within their potential they will be able to advetise in travel magazines and on their ground delivery cars in the targeted cities.

Free delivery service by sharing on Facebook.

Share of travel life on Facebook unintentionally!

As D.handy can only be purchase online. D.handy can make use of being online by asking the purchaser to share their purchase of D.handy on social facebook in order to receive a free delivery service. As consumers were attracted to free delivery service of products they purchase online.

Moreover, the cost of delivering one package costs â‚Ź3.50 for FedEx with their capabilities and assets. And this cost can be covered by the price of the cheapest product of D.handy.

Therefore, although it will be advertised to consumers that they receive free delivery by sharing their purchase on facebook, there is no loss made for FedEx in doing this promotion.

And for the traveller purchasing the D.handy product can benefit of sharing on their wall the purchase of D.handy which indicates that they can purchase tickets for a flight or booked an accomodation thus giving them another way of sharing on social media their plan of travel and lifestyle. In other words they can show off in a less unintional perceived way.

Moreover, if they purchase the special model the content that they will share of D.handy shown on Facebook will include their good deed of supporting the sweat shop women by purchasing the special models. And for the privacy of the traveller the quantity of purchase or the travel destination will not be published on the content tab that will be shared an example that will show on the facebook wall is below:

42

As for below the line 2 events will be held in the most potential and important cities: London and Milan. Stalls will be set in the central shopping districts with ipads, asking shoppers and tourists to fill in their home address in case of a local and accomodation address in the case of a tourist in order to have a free D.handy package be delivered to their residing address. They can choose the design and colours on teh ipad and insert the details as well as the delivery time and date that should be within 3 days and with a fixed quantity choice of a 3 pack of underpants. Special models will not be a choice for the event. But will be advertised on site.

In this way the two influential cities in the spread of fashion and news can create the vibe of D.handy and spread the news.

Important traveller bloggers in Europe will have the special model of D.handy sent out with an explaination of the collection. They will be the first and only holders of the special model in order to publish on their blogs before the special model become available for purchase online.

The event for Milan will be held in June after the beginning month of the EXPO and in London it will be held in August just before the Rugby World Cup month. Thus, once the vibe of the event in Milan fades it will be continued again by the event in London for the season of the winter collection.

Moreover, in the Christmas period random people who have liked the page of D.handy on Facebook will be chosen to have FedEx deliver a package of D.handy. They will be notified on Facebook their prize of D.handy and will be given a code for them to enter on the FedEx website the address details and which 3 pack D.handy underpants they want and of course after the submission they will be directed to share their prize on Facebook. The Christmas event will be updated on other social media platforms and a photo will be taken with the winner of the Christmas event when the package is being delivered hand to hand. And this picture will be posted on Facebook to keep the social network aware of D.handy and the sweet imagery of the product.

We all love receiving a delivery package to our door whether it was expected or unexpected! The Joy!

43

limitations The calculation of the fuel cost was based on an asumption of finding the total number of ground deliveries of FedEx express on their annual report and diving the total annual fuel cost against this number which ended with a result of â‚Ź3.80 in which is was bought now to â‚Ź3.50 for the added packages of D.handy. Moreover, the cost of the delivery of the finished good to the warehouses of the targeted cities could not be estimated. This cost would have to be covered by the margin. fuel is always going to be the most problematic dependant resource of FedEx which will always need most attention in managing and creating contingency palns for the future in any case a major fluctation occurs.

Once D.handy becomes popular and known to the travellers as a convenient product. Other Delivery companies have the possiblity to undertake this business idea by working with other online travel agents such as expedia or expedia themselves could consider the product idea and create direct compettion with D.handy. Thus, the business idea of D.handy should be strictly controlled with copy rights and trade marks to a standard that makes it difficult for other potential companies to undertake the idea easily.

44

conclusion S h o r t te r m e d for the LONG R UN

Overall, D.handy is a trend orientated commercial product developed and assorted to provide maximum convenience to the traveller. The product itself is a unique selling proposition giving it an identity of its own. With the added value of a free professional delivery service. D.handy purchases should lead to an increase of not just the awareness of the brand FedEx but the experience with FedEx and thus lead to an increase of more loyal cocnsumers of the entire FedEx brand. As the awareness of a brand does not always lead to the use of their product or service.

After the success of D.handy sales online, as mentioned before it is possible to expand to wholesalers and even into more styles. Therefore, although D.handy may be a short term product of use. It will be a short term product that can be consumed in the long run for many occassions and in many convenient styles.

45