1. FedEx: Focusing on the Future Len Hostetter Vice President, FedEx Brand Engagement Marketing June 24, 2010
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6. Three “generations” of customers are important near term Source: National Center for Health Statistics, 2002 June 2010 Focusing on the Future AMA Conference 46-64 years old 31-45 years old 10-30 years old
7. “ When I first joined the workforce, my office looked like this…” June 2010 Focusing on the Future AMA Conference
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15. EarthSmart is how we will support our commitment June 2010 Focusing on the Future AMA Conference
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17. EarthSmart is flexible June 2010 Focusing on the Future AMA Conference Program Focus How Team Members Are Engaged Responsible Group EarthSmart Solutions Innovation & Branding program Allows team members to submit innovative ideas. Sustainability Global Brand Management EarthSmart @ Work Employee 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
First we will talk a little bit about the FedEx brand and where we came from. Then we will look at our customers, not just the ones we have today, but also the customers we hope to have in the future. I will explain our EarthSmart initiative, which is our environmental platform and show you what FedEx is doing to support sustainability. Then switching gears we will look at another component of what FedEx is doing to stay relevant from a social media standpoint. E arthSmart June, 2010
I would say something about us creeping into middle age, and use your quote about the fact that we are making sure we stay relevant and don’t have a mid life crisis. E arthSmart June, 2010
It takes meticulous care to manage a brand like FedEx and that in everything we do we think about our brand and who we want to be and who our customers expect us to be. Our customers expect us to be perfect or close to it, so we have to deliver. E arthSmart June, 2010
FedEx built an industry and Baby Boomers remember it. To them we have done something very powerful, but we can’t rest on our laurels because there is a whole generation of people who don’t know that and don’t care. E arthSmart June, 2010
As you can see Gen Y is large and in charge…. E arthSmart June, 2010
While all three inhabit the same workplace, their differences are significant Work ethics Boomers: “I have a stronger work ethic and am more dedicated than the younger generations.” Gen-X: “I’ll be on the team, but let me do my piece” Gen-Y: “Get me out of here. I need to use my brain.” Use of technology Gen-Y prefers to communicate via blogs, IMs and text messages Boomers and Gen X-ers prefer to communicate on the phone or face-to-face E arthSmart June, 2010
E arthSmart June, 2010
The current health of the environment has gained a lot of public interest . It has become a key topic in personal, business and government discussions. Over the last 18 months we have seen a renewed focus on the state of the environment. This focus, in part , is due to: New government administration with a commitment for a healthier environment and energy investment, and the willingness to set forth supporting policies. Social media uniting individuals and communities that are passionate about environmental issues. Especially the “ Dark Greens ” In this economic downturn their passion has remained strong , even when many skeptics called it a fad and thought it would fade away . Now more than ever, consumers are integrating their concern for the environment into their purchasing decisions. It is also becoming a decision “tie breaker” when price and quality are equal. Concern for the environment is shaping the way people think, work and live today . It’s not the stereo-typical tree hugger it’s everyone-people, businesses and municipalities-learning and excited/empowered about making better choices to reduce their environmental impact. The environment has become a modern responsibility. That is a big shift for corporations. E arthSmart June, 2010
Many companies saw sustainability as burden or a check the box activity rather than integrating it into their business strategy and it is these companies who are struggling or failing to connect with customers. Sustainability is not burden rather an opportunity for our business. Especially now in our economic climate. There are great proactive reasons to look at our business through a sustainability lens. Sustainability is: At the core of survival. It’s about doing more with less. It drives innovation (which as we all know has been a part of our Brand DNA from day one…we thrive on this). Innovation opens up new product lines and product positioning. Sustainability has added a 5th P to marketing ─ Product Stewardship . (very relevant as there are talks about the global product labeling) How your product/project affects the environment. (Airbill or Door Tag example) Increase customer experience, $500k cost savings and 234,000 lbs. of paper just from removing one ply of paper. It forces us to think differently as it drives innovation and new product developments as well as efficiencies that can reduce risk, save the company money all while building our brand value and loyalty. E arthSmart June, 2010
What are our customers saying: For more than 35 years, people around the world have welcomed FedEx into their communities and their daily lives. They have trusted us to deliver services to them in a highly reliable yet cost-effective manner. Today, they expect that same trust just in a more responsible way with respect for our environment . 7 countries, 5K participants Comprehensive action means: Balance of offering products and services to customers as well as Internal programs and reporting Very relevant for Gen Y audience Examples of companies that are sustainability leaders in their markets: IKEA SC Johnson Microsoft Wal-Mart E arthSmart June, 2010
Our competition has seen this as a good business opportunity and they are moving. And it seems to be working E arthSmart June, 2010
We just took possession of 10 more all electric vehicles for deployment in California. E arthSmart June, 2010
Many companies have seen a great opportunity to capitalize on this concern for environment and thoughtlessly flooded the marketplace with false or misleading green claims that have caused a greenwashed ( making claims without substantiation ), eco-cluttered and eco-saturated marketplace that has led to a wide distrust. This new reality means companies must communicate their sustainability strategies in ways that connect the customer-facing brand story (traditional advertising) with the authentic corp. back story to illustrate authenticity and trust. With this new back story comes a whole new vernacular for customers to learn . (footprint, GHG) And, as technology drives new levels of transparency , customers are becoming increasingly savvy and looking beyond our corp. advertising to proactively substantiate or find and share information on their own . (So, if something is misleading they have their own social network to get the word out) There is a paradigm shift…it’s not what a company says it’s what they do that matters . E arthSmart June, 2010
So how do we show our commitment in a trusting, transparent way…We do this through EarthSmart What originally started as an eco-branding strategy for power applications grew into our overarching corporate commitment intended to become a uniting concept that frames our sustainability efforts across all audiences. By definition: EarthSmart is our commitment to minimize our impact on the environment by integrating innovative sustainable practices into the way we work and the services we offer our customers. ES illustrates how FedEx is making smart choices today to deliver on a more environmentally sustainable tomorrow E arthSmart June, 2010
EarthSmart is intended to be aspirational to help our team members to think differently – we want them to start viewing their work & behaviors through a sustainability lens, so they can begin to think differently, more efficient and ultimately more sustainable To be successful, EarthSmart must be embraced corporate-wide, and EarthSmart strategies must be incorporated in all areas & channels and prioritized as a corporate objective. Like the Purple Promise, EarthSmart will be an important aspect of the FedEx culture. Purple Promise brands an invaluable aspect of our culture: the commitment to doing whatever it takes to deliver an outstanding experience. Similarly, EarthSmart should brand another long-standing but increasingly important aspect of the FedEx culture: our commitment to make the decisions and create innovations and solutions that will transform our company – and our industry – towards sustainability. EarthSmart extends the Purple Promise because it reaches beyond our customers to make a better world for everyone. E arthSmart June, 2010
E arthSmart June, 2010
An eco-branding and engagement platform a s a set of programs, EarthSmart allows us to communicate about our sustainability efforts and encourage innovation, team member engagement and philanthropy Specifically: Communicates about FedEx sustainability goals and efforts under one umbrella concept. Builds brand and encourages innovative solutions by communicating about specific FedEx efforts to internal and external audiences. It brings to life our commitment to innovative, environmentally sustainable solutions and gives customers one more reason to choose FedEx. ES branding is unique to FedEx. There is no environmental label that would cover all of our business lines. Creates an extremely motivated workforce that contributes to FedEx sustainability efforts through their knowledge, actions and ability to communicate about FedEx commitments and progress. It must become a commitment and mindset for our team members to make smarter choices and create a sense of pride in our company. Encourages strategically aligned environmental philanthropic efforts. To be strategic and effective, the EarthSmart platform needs to help FedEx achieve business, sustainability and workplace goals. E arthSmart June, 2010
When our team members across all parts of FedEx learn about our EarthSmart efforts, they will see their actions and decisions as key to helping FedEx run more efficiently and smarter. E arthSmart June, 2010
Team members will have a sense of pride as they see how their actions contribute to EarthSmart FedEx. E arthSmart June, 2010
… FedEx shares my commitment to be more environmentally sustainable… I choose FedEx E arthSmart June, 2010
We no longer invest in the traditional media channels like we did even a few years ago and expect to be communicated to. They expect to be able to communicate back. E arthSmart June, 2010
E arthSmart June, 2010
You need to click on the screen to start the slide show. If you click again it will stop it. E arthSmart June, 2010