Design of Goods and Services in FedEx

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Product design is applied in decision-making at FedEx throughout their operations management. In 1992, the company hired Landor Associates to study Federal Express' corporate identity and brand image. As part of this study, Landor determined the attributes that were associated with the brand: speed, reliability and customer service. However, it was also determined that the word "Federal" was hard for some customers to pronounce and rather than make the company appear official, actually conjured up ideas of bureaucracy. The company utilized this information to change their name to "FedEx" (Fresh Creative, 2008).

In addition, Federal Ex used design to communicate with the customer (and its' stakeholders) its' reach and speed by using the tagline "The World On Time" along with a subtle arrow to signify movement to the customer. Once decided, the company implemented this design throughout their operations, adding new decals to drop boxes, change trucks and re-brand airplanes. In addition to crafting a new image, the logo, now on a background of white instead of purple, saved money for the company. FedEx was able to avoid re-painting new trailers and aircraft their signature purple, and keep the vehicles white. This also allowed the company to save fuel, because "surface temperatures on the planes were reduced by 40 degrees, lowering the need to cool the planes and therefore allowing for fuel cutbacks per flight" (Fresh Creative, 2008).

Furthermore, the FedEx company uses design to help distinguish and recognize the services which it provides customers, dividing each of its' services by distinguishable sub-branding, with a unique look and logo. In this manner, they are communicating their services via branding to their customers and their employees, while uniting the brand design through a distinctive, simple logo. FedEx's product design helps to communicate the clear, concise message of the company "The World on Time", inspiring employees to act on the mission and consumers to trust the company.

FedEx uses product design to aid decision making by evaluating high growth opportunities through an innovation team to determine which ideas present the company with the greatest potential. Next, this team builds upon the best ideas to determine if adding the new function or service will increase opportunity compared to the level of risk involved in ...