Category: Business Content

Business Content!

Business Content, Opportunity, and Small Business Ideas, Businesses can privately own, not-for-profit or state-own. An example of an Online eCommerce industry is Google Searching Web and also Facebook Social Site.

While a mom-and-pop catering profession is a private enterprise. Every industry requires some form of investment and enough customers to whom its output can sale on a consistent basis in order to make a profit. An organization or economic system where goods and services stand exchanged for one another or for money.

A business (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus.

Their various talents and organize, their collectively available skills or resources to achieve. Specific declared goals are involved in the provision of goods and services to consumers. A profession can also describe as an organization that provides goods and services for human needs.

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  • Case Study of Using Marketing Channels to Create Value for FedEx Customers

    Case Study of Using Marketing Channels to Create Value for FedEx Customers

    FedEx as a service company that mainly focuses on transportation or shipment services, channel played an important role leading to success. FedEx need a good channel to get and reach more customers. FedEx has a strong network structure linking all the market together. FedEx serves more than 220 countries and territories currently. Further, these networks are linked up by land, air and ocean transportation. Also learn, Case Study of Using Marketing Channels to Create Value for FedEx Customers, with How companies create value for customers? How is Value Created and What Does It Do?

    Understanding and learn what? Case Study of Using Marketing Channels to Create Value for FedEx Customers.

    FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. A customer can choose either one drop- off location that is nearest to them.

    FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint for delivering the packages. There are four hubs in the Asia Pacific. That is Shanghai, Osaka, Seoul and Guang Zhou. Besides, FedEx has hubs in London, Cologne, Frankfurt, and Paris which will later ship the parcel around the European area. Moreover, hubs that link Latin America, the Caribbean and Canada were in Memphis and Miami.

    One thing that makes FedEx so special out of so many transportation or shipping company is the collection of airplane uses by FedEx in order to ship the parcel. FedEx is the first company who use the plane called the Boeing 777. The uniqueness of the plane is the plane is a fuel saver. It shorter the transit time with larger space to put the parcel. This had made the overnight courier service possible.

    FedEx was famous for its overnight service. Customers can receive their packages at the same time on the next day. The strong backbone of shipping network structure by FedEx makes this service available. An example is given to explain how FedEx manage to ship the parcel between 24 hours and reach 10.30am. A customer decided to ship his parcel from Shang Hai to New York City. FedEx pick up the shipment in time to make the same-day trans-oceanic flight. FedEx picked up the package from the client at the time of 4:50 pm, Tuesday. The package was delivered to Shang Hai’s facility for sorting process.

    Then, the package reaches Shang Hai Pudong International Airport at 9:30 pm. At 11:30 pm, the package leaves China and in the Boeing 777 aircraft on the way direct to Memphis, Tenn. The flight travel east of the Pacific Ocean and passed the International Date Line. At the time 11:30 pm, the package arrived in Memphis. In Memphis, the package was on loaded, cleared, sorted and reloaded on to a flight from Memphis to Newark. In Newark, the shipment ship by truck to New York City. This is how the package from Shang Hai reach the client in New York City and at the time 10:30 am Wednesday.

    From the example, the package was first picked up and sends to the facility for the process, then to the airport. The package then reaches the hub and been process again. Finally, the package was delivered by motorized vehicle. FedEx has more than 43,000 motorized vehicles which make FedEx manage to reach many places in the different country. Example of motorized vehicle commonly used by FedEx was trucks, vans, containers, and also tricycles.

    FedEx delivered by electrically-assisted tricycles in Paris to avoid the traffic jam in order to ship in time. The tricycle was designed to put packages back on the tricycle. It has a removable storage container that places between the back two wheels. It is 100 percent electrical and it has to start manually. It is 100 percent eco-friendly and it enables delivery work more efficient even faster than a car or truck.

    FedEx not only ship with aircraft and motorized vehicles, but also by ocean cargo. It provides another choice for the customer to choose from. The ocean cargo services provided by FedEx linking North America, Latin America, the Asia-Pacific region, Europe and the Middle East together. Besides, FedEx has enough amount of ocean cargo to make their services, choosing the space of cargo available.

    For example, allow the customer to have full-container-load (FCL) for the user that need huge space and less-than-container-load (LCL) for those customers that does not need so much cargo space. Further, FedEx has ocean cargo with the different facility like the refrigerator, onboard cranes, on the cargo ship to provide the service like ship dry or liquid bulk shipments and handle heavy shipments to smaller ports.

    Moreover, customers usually expect their package to ship in time with good condition. FedEx understand that and come out a solution that is provided packing service. It tried to help in avoiding damage in packages. In order to make the service available, one of the FedEx’s subsidiaries company was designed to become one of the channels in helping customers to pack their packages. So, customers can now bring their package to any of the FedEx Office and ask for pack up service.

    Further, FedEx knows that this the era of information technology. Everyone seems to be online often and many things can be done online. FedEx understand that there is a need to open a website as a channel in order to make the service available for more people, especially for those who seldom go out and always do online shopping. The website makes the process of shipping easier. Everyone can use the service. Now, FedEx’s customer can ship online with few steps and avoid many processes of filling up the forms.

    FedEx reach customers in many different ways. Beside of online, by air, by land, and by sea, FedEx reach customers by telephone and fax. This is another channel provided by FedEx to the customer called and picks up service. In order to provide convenience to the customer, understanding some people might think lazy to go out just for dropping a small package, and also for people who definitely very busy and lack of time, called and pick up service is a very good way to reach them. The customer can just dial FedEx’s customer service number and ask for a pickup. FedEx will pick up the package from you and the great thing was the time count once the package was picked up by them. Further, Customer can fax to the company to have the service.

    In another hand, mobile phone or smartphone are using as a channel to reach more customers. Smartphone becomes very popular nowadays. People tend to have one smartphone to do many tasks on the go. FedEx makes the website of FedEx available for the smartphone user, trying to attract more customers to use their service. FedEx customer can do tracking of the parcel, schedule a pickup, and even billing by using the phone. It makes the service become very convenient especially for those who usually travel around and wish to deliver their parcel.

    FedEx understands the importance of customer service. So, a company called FedEx Service is there specialized in information technology. They providing back up and information like tracking information, customer’s detail, and customer’s history of using FedEx’s services, estimate the duties and taxes and handle the claims and complaints. Besides, the company also provides information about the service and company. It is to make the customer service and online tool available at all the time whenever customer needed them. Furthermore, it is a guide for the customer because much information was provided on the website.

    One of the channels in marketing is the employee. As a service provider, the employee is the first who reach the customer and make the service available. It often leads to satisfaction of the customer. In order to make the service delivery to a certain standard, the employee is trained. The employees required to test every six months to ensure their skills meet minimum acceptable requirements. Extra training was required for those who have not met the minimum requirement. Employees need to go through computer-based training, satellite broadcast training, and staff-conducted training in order to perform the service to the customer.

    FedEx’s channels are backed by the computer system called COSMOS. That is Customers, Operations, and Services Master Online System. It is a centralized computer system to manage people, packages, vehicles and weather scenarios in real time. It is to make sure all the channels are working properly.

    How companies create value for customers?

    With these concepts in mind, think about ways you can improve customer value to grow your business. This is article presenting by inc.com. Here are 5 steps you can take:

    Step 1: Understand what drives value for your customers.

    Talk to them, survey them, and watch their actions and reactions. In short, capture data to understand what is important to your customers and what opportunities you have to help them.

    Step 2: Understand your value proposition.

    The value customers receive is equal to the benefits of a product or service minus its costs. What value does your product or service create for them? What does it cost them–in terms of price plus any ancillary costs of ownership or usage (e.g., how much of their time do they have to devote to buying or using your product or service?)

    Step 3: Identify the customers and segments where are you can create more value relative to competitors.

    Different customers will have varying perceptions of your value relative to your competitors, based on geographic proximity, for example, or a product attribute that one segment may find particularly attractive.

    Step 4: Create a win-win price.

    Set a price that makes it clear that customers are receiving value but also maximizes your “take.” Satisfied customers that perceive a lot of value in your offering are usually willing to pay more, while unsatisfied customers will leave, even at a low price. Using “cost-plus” pricing (i.e., pricing at some fixed multiple of product costs) often results in giving away margin unnecessarily to some customers while losing incremental profits from others.

    Step 5: Focus investments on your most valuable customers.

    Disproportionately allocate your sales force, marketing dollars, and R&D investments toward the customers and segments that you can best serve and will provide the greatest value in return. Also, allocate your growth capital toward new products and solutions that serve your best customers or can attract more customers that are similar to your best customers.

    Your customers are the lifeblood of your business. They are the source of current profits and the foundation of future growth. These steps will help you find more ways to grow your business by better serving your best customers.

    How is Value Created and What Does It Do?

    Value is created just as much by a focus on processes and systems as much as it is my mindset and culture. Mindset and culture are much more difficult to change, and also difficult to emulate. It is easier to copy products and systems than to change mindsets and culture. Therefore, for long-term success, mindset and culture are important and lasting. These, along with systems create great experience and value.

    Value changes during the use of a product or during the Customer Journey. Value is perceived during the purchase intent, the shopping, the actual purchase or buying, the installation or start-up, the use, and even the re-sale. We sometimes call this the waterfall of needs. Needs change during the Customer Journey.

    Creating Customer Value increases customer satisfaction and customer experience. (The reverse is also true. A good customer experience will create value for a Customer). Creating Customer Value (better benefits versus price) increases loyalty, market share, price, reduces errors and increases efficiency. Higher market share and better efficiency lead to higher profits.

    Case Study of Using Marketing Channels to Create Value for FedEx Customers - ilearnlot
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  • Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx

    Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx

    Transportation is one of the largest industries in the world, and its sector range is very wide which include taxis, truck, train, ships, barges, airplanes, pipelines, warehouse and logistics service. For the industry, the three main trends were the globalization of business, information technology development and new technology to support process efficient, and the market demand for more value-added. Also learn, Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

    Understand and learn what? Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

    Hence, the companies in the transportation and logistics industry depend on the global network of distribution centers to gain quick payment cycle and cheaper resources. In FedEx Corporation, as a leading firm in the industry, its centralized structures have always required, and facilitated billion dollar investments in IT and established the website from 1994.

    It provided a successful technology for the FedEx Corporation as a pioneer in the whole industry for e-business. This strategy became an advantage that they used to undermine their competitors’ strengths and localized customer service. With a globally connected IT network, FedEx was able to leverage their IT advantage to service their corporate accounts on a global basis, rather than on a country by country basis.

    Pioneer of Internet Business in the Global Transportation and Logistics Industry.

    FedEx Corporation created its own website form in 1994, it is the first step and basis for the company to develop its e-commerce. FedEx.com is the first transportation website which could accept the one line order for package tracking and allow the customers to transact the business by the Internet.

    Both shippers and recipients could access shipping information and print documentation via the Internet. As the pioneer in the industry, FedEx should continually improve their system and service due to its competitor also created the Internet service and Internet software.

    For instance, the DHL launched the website in 1995, UPS spent billions on IT and electronic commerce. The express transportation associated with e-tailing would reach $7 billion in the year 2000, but FedEx only handled with 10 percent of purchase online goods. All of these brought heavy pressure to FedEx. In 1998, the company paid more than $2 billion to acquire the Caliber System, Inc. to increase the abilities and power on Internet service and e-tailing.

    Because of the large potential market and lower cost, the Internet and e-tailing market was continually enlarging in the Global Transportation and Logistics Industry. To evaluate the performance of FedEx in Internet and e-tailing market should be from the view of five performance objectives.

    Firstly, from the view of cost, FedEx as the first one for Internet and e-tailing in the Global Transportation and Logistics Industry, it focused on long-term investment on IT and led the company to have the specific position in the area. For the intense competition, the company paid more than $2 million to purchase Caliber System. It could effectively increase their market share in business-to-consumer delivery service. Hence, the investment partly made up the weakness against with UPS.

    Secondly, flexibility, the Internet service, and e-tailing provide the convenience for the customers, increase an easy and quick channel for the transportation and e-tailing business. For instance, in the year 1999, FedEx Marketplace created a link to the online shopping, the online shopper could click to the top online stores and with FedEx delivery.

    Thirdly, dependability, the establishing of the website enhanced the dependability between the organization and customers. The computer system supported the customers to know their goods conditions during the whole delivery process. For example, the company created software called FedEx Virtual Order in 1999 which provide Internet order and also provide the customers’ catalogs for them on the website. Moreover, the IT system also enhanced the internal management of FedEx Corporation. For the enormous organization, the dependable information system should be the basis for the busy operation process.

    Fourthly, speed, for the transportation and logistics industry, speed is one of the crucial elements for the customers choosing a transportation company. The online order and the unique information system in FedEx deal with the order and storage, goods and shipping process, every process could reduce the time than before. For example, the FedEx Marketplace provided easy access to online merchants to offer fast FedEx shipping.

    Last but not least, quality, all of the strategies and performances about Internet and e-tailing could be linked to improving the quality providing for the customers and partners. For instance, the FedEx created e-business Tool in the year of 1997 which could support an easier connection with FedEx shipping applications. And the EuroOne network established also provide a powerful transportation routing system which linking more than 30 cities. All of this would enhance the service quality of FedEx’s Internet and e-tailing.

    Consequently, the FedEx had an explicit objective in the Internet and e-tailing market, for both financial and non-financial performance of an organization in this area was the focus on achieving their objective. For the customers and partners, FedEx tries to provide more flexible, convenient, fast service by the Internet and e-tailing channel, created dependable and loyal relationships with them and build a perfect reputation in the market. For the own organization, it insisted on long-term investment on the Internet and e-tailing area, it would lead to earning a long-term benefit.

    Besides, the organization continually emphasized the infrastructure building and technology improvement, to create a dependable operating system and transportation team which could support the smooth operation of the Internet and e-tailing market. All of these performances lead the development of FedEx. It could not satisfy only by the pioneer of Internet business in the Global Transportation and Logistics Industry but try to be the long-term leadership in this market.

    Evaluation of FedEx Acquisition of Caliber System.

    To evaluate the success or failure of FedEx Corporation acquired Caliber Systems in 1998 should also form different points of view. From the positive side, the company use $88 million acquired the Caliber System, Inc., it could provide the company with a powerful technical support on Internet commercial at that time. In the period, the e-commercial was on the development stage in the Global Transportation and Logistics Industry, the long-term investment, and acquisition of Caliber System made the FedEx Corporation own the abilities and opportunities to be the pioneer and leader in this area.

    According to the summary of benefits for M&A, The strategy helped FedEx Corporation enter a new market, broaden the business range, develop the new product and also gain new information technology. From the result, after the acquisition, in the following year, the company had an excellent performance, the net income increased 30 percent and posting record earning risen 73 percent.

    However, as the passage of time, the competition in the market became more intense, despite the e-tailing and electric commerce supporting, the report showed that both the volume and the income have a negative trend. From the view of the financial report, the result had an obvious falling. This condition was the cause of several factors.

    • Firstly, the fuel pricing jumping was unexpected, it will increase the cost for the company.
    • Secondly, it also meant the Caliber System did not blend into the organization completely.

    The organization was enormous, the operation was complicated, hence, just acquisition strategy without good association could not make the new party perform perfectly. For solving the problems, the FedEx Corporation announced reorganization on 19, Jan 2000.

    Consequently, it is hard to simply judge whether success or failure for the acquisition of Caliber System. The acquisition brought benefits, opportunities and also new operation method for FedEx Corporation. The negative result in the following years was also caused by multiple factors, i.e. the competition in the industry, the fuel price rapid rising and etc.

    Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx - ilearnlot
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  • Case Study of the Success Story of FedEx Company

    Case Study of the Success Story of FedEx Company

    Federal Express was founded in 1971 as the “big idea” of charter airplane pilot Fred Smith. It launched its overnight air express business in 1973, and just 10 years later, it was the first U.S. company to top $1 billion in revenues in its first decade. What do you learn, Case Study of the Success Story of FedEx Company?

    Understand and learn what? Case Study of the Success Story of FedEx Company. 

    The intro of FedEx by Wikipedia: FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express (now FedEx Express), which was used from 1973 until 2000. The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location (to help in finding lost packages), a feature that has now been implemented by most other carrier services.

    Today, FedEx (its nickname, “FedEx,” officially became the company name in 2000) is the world’s largest express transportation company-almost 196,000 employees move more than 3 million items to more than 200 countries each business day, up from 110,000 workers and 2 million packages just five years ago! In 1990, FedEx became the first service company to win the Baldrige Award. Since then, the company has expanded its ground delivery business by purchasing both Parcel Direct (formerly a division of Quad/Graphics, now renamed FedEx SmartPost) and more than 1,100 Kinko’s locations (now FedEx Kinko’s Office and Print Centers) in 2004.

    The survival issue is prominent in the minds of quality leaders. FedEx’s Fred Smith compares the awakening to quality to “a near-death experience. A lot of times it’s brought on by trauma.” Leaders often embrace Total Quality Management because they see no alternative: improve or die. Whatever inspires them-the fear of failure, the promise of success, the achievement of other companies, the belief that there must be a better way to manage a company-triggers the leap of faith. Once they are on the quality path, the cultural changes they see all around them frequently breed a missionary zeal about the need for, and the benefits of, the quality improvement process.

    The first step for any company president, chairman, or CEO is committing himself or herself, as well as the company, to the process. Jamie Houghton took this step in 1983, shortly after he became Corning’s chairman. Fred Smith and his top executives founded FedEx on the idea of providing the highest quality of service, then participated in quality training in the first year of the company’s existence.

    At FedEx, Fred Smith has been directly involved in the development of every quality process and system the company has implemented. He founded the company on a belief that customers would value a time-definite express delivery service, then used on-time delivery as the company’s primary measure of performance. In the late 1980s, he helped develop a more comprehensive, proactive, customer-oriented measure of customer satisfaction and service quality: the Service Quality Index (SQI).

    As Smith said, “We believe that service quality must be mathematically measured.” The company tracks these 12 indicators daily, individually and in total, across its entire system. Each indicator is weighted: the greater the weight, the greater the impact on customer satisfaction. One of FedEx’s service goals is to reduce the totals of the SQI every year.

    SCAC codes use by FedEx:

    The Standard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long. It was developed by the National Motor Freight Traffic Association in the 1960s to help the transportation industry for computerizing data and records.

    FedEx’s codes include:

    • FXE – FedEx Express.
    • FXSP – FedEx SmartPost.
    • FXG – FedEx Ground.
    • FXFE – FedEx Freight.
    • FDCC – FedEx Custom Critical.
    • FXO – FedEx Office, and.
    • FSDC – FedEx Same Day City.

    Service is one of the company’s three overall corporate objectives: People-Service-Profit. Every manager at FedEx, including Fred Smith and the senior executive staff, has annual benchmarks for each of these three corporate objectives. Smith sets his own personal objectives with input from the board of directors, and the process cascades through the organization from there. Managers are evaluated on how well they achieve their objectives.

    To develop and implement such broad measures and objectives, Smith and his staff had to understand the company’s quality objectives, its customers’ needs, and the potential effectiveness of the SQI as a measure and motivator. Many other service companies are still trying to figure out what to measure. Smith led the development of a measure that tells all FedEx employees, every day, exactly how they are doing on customer satisfaction and service quality. Active participation in the quality improvement process doesn’t get any better than that.

    Good leaders know that having a customer focus is critical. At FedEx, each officer is assigned responsibility for the major customers in a sales district. Smith and his staff talk to customers continuously at the executive level to make sure their needs are being met.

    FedEx has three corporate goals: People-Service-Profit. As Smith summarizes, “when people are placed first, they will provide the highest possible service, and profits will follow.” The three corporate goals are translated into measurable objectives throughout the corporation. Progress on the people goal is determined by the Leadership Index, a statistical measurement of subordinates’ opinions of management’s performance.

    Service is based on the Service Quality Indicators described earlier. The profit goal is a percentage of pretax margin, determined by the previous year’s financial results. Success in meeting the objectives for each area determines the annual bonuses for management and professionals.

    FedEx Corporation in the United States administers the variety of advanced factors of production. These are managerial sophistication, logistics know-how, and physical infrastructure. Logistics is one of the main advanced factors which FedEx developed for managing its complex hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports.

    Additional distinctive competencies that FedEx have, also arise from firm-specific tangible and intangible resources, namely, FedEx’s hubs and package handling systems; its package tracking and customer support function and its logistics support. Again, the main barrier to imitate these firm-specific resources is the high cost associated with acquiring them. FedEx’s package tracking and customer support functions, as well as their logistic support, are examples of the firm’s distinctive competencies as well.

    The barriers to imitate FedEx’s package tracking and customer support functions are based on the fact that FedEx was the initiator in establishing the first tracking applications website and providing each customer with a unique barcode to individualize each shipment. That allowed FedEx to gain proficiency in these systems and knowledge about the functional operations.

    FedEx’s strengths in logistics, operations, and technological innovation allow them to pursue a differentiation business level strategy. FedEx works to stand apart from its competitors by creating a level of service that is difficult for competitors to match. FedEx has clearly been identified as an innovator, but what they need to get across to their customers is that they provide a high level of quality service.

    FedEx charges higher prices for its services than many of its competitors in the industry. This is considered a premium that a customer pays for the quality of service FedEx provides. By differentiating their standard of quality from their competitors, FedEx lets their customers know that if they are willing to pay more, it will be worth it.

    FedEx is able to meet the needs of all these segments. They have spent an extraordinary amount of capital developing their infrastructure just so they can make the best promises to their customers. FedEx transports more than 3 million items to over 200 countries each day. Within each business unit are specific functional units that perform particular functions. The main functional units are logistics and operations for its transportation system.

    These units assure the coordination and smooth flow of FedEx’s deliveries. The end result is a high level of quality service. Their service includes customer responsiveness and innovations such as; its aircraft fleet, its hubs and package handling systems, package tracking, customer support functions, and logistics support. Not only does this help FedEx follow through with their promises, but in some ways that are superior to that of the competition.

    FedEx has transformed itself into an e-business by integrating physical and virtual infrastructures across information systems, business processes, and organizational bounds. FedEx’s experience in building an e-business shows how a company can successfully apply its information technology expertise in order to pioneer “customer-centric” innovations with sweeping structural and strategic impacts. It also shows the role of outsourcing, which frees companies to concentrate on their core business.

    The value chain for FedEx Express can be seen as starting with the pick-up of the packages. FedEx employees gather the packages from various locations such as drop boxes, businesses, and residences. Value is created for the customers by making package pick-ups possible just about anywhere or anytime. FedEx has a money back guarantee for those people whose packages do not arrive on time, therefore creating value by assuring timely delivery of the packages.

    After the packages are initially picked up, they must then be transported to a hub. The hub is a central location where packages are sorted according to their destinations. The packages will likely pass through many hands before reaching their final destination. The packages stay at the hub until they are picked up and shipped either by truck or plane.

    FedEx Supply Chain Services which synchronize the movement of goods for enhanced customer satisfaction. With all of this evident, it can be said that FedEx segments its markets according to the needs of the customers and not by demographic regions.

    While FedEx is a very large company that occupies a large portion of market share in the express delivery sector as well as the ground sector we have concluded that FedEx does not so much possess distinctive competencies, as it has strong existing competencies that allow it to compete competitively with industry leader UPS. These competencies include a very timely customer response time, cutting-edge technology and innovation.

    With the fact that FedEx does not have a competitive advantage, or distinctive competencies, yet is still the largest express package delivery service there are many directives that could be followed to attain both. This is obviously a long-term goal, however, it can be seen that the undertakings have already begun. Its most recent endeavor, characterized as a diversification from its “usual” product offering of actual shipment of good’s, is the newer service offering of consultation.

    Labeled FedEx Trade Networks, this newest division of the FedEx offerings showcases the company’s vast competence of international shipping knowledge to an array of customers. These customers are provided value creation with the knowledge that can greatly increase efficiencies through the supply chain. FedEx Trade Networks offers a full range of international support services, including customs clearance, freight forwarding, Trade & Customs Advisory Services (TCAS) and trade technology solutions.

    Case Study of the Success Story of FedEx Company - ilearnlot
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  • Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx

    Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx

    Understanding and Learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

    FedEx is an international company that provides shipping by a series of air and land and logistics and business consulting services, not only for its core businesses with customers but also for the main business objectives, with speed in their communication with the constituencies And provide dependence. In FedEx, employees work in 200 countries for 7 days a week, 24 hours a day. The corporate communication function should act as a broader scenario with speed, high impact, and precision. Also learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

    Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.

    According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success. These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different.

    Since the company has created cross-functional groups to solve these strategies, which are at the center of FedEx business. Margaritis Corporate Communications specifies people to have each cross-functional groups dedicated to the “well-known market” strategy. In this way, the perspective of corporate communications on issues such as message about launching a new product, sending news about mergers and acquisitions, pitching the media, and helping in the management of government relations in highly regulated environments, where FedEx operates , Voices are raised with concerns about finance, operations, information systems, and long-term strategic goals.

    By dividing corporate communications employees into “go-to-market” groups, customer-facing tasks such as sales, customer care and information technology, Margaritis has gained significant side-effects, they develop a multi-talented group of communication professionals Strategic-level issues of reduction in functional areas such as marketing, finance, sales, technology, and tactics Can help solve problems. Members of his team do not just fill a narrow space, such as writing newsletters for pilots or making speeches for senior executives. Instead, their employees can move through projects to build a comprehensive knowledge of business and can contribute to value-added advocates in those decisions.

    The senior management at FedEx realizes that when the company offers new services, offering new services, and making a commitment in the market, the company’s brand is online with several constituencies – opinion leaders, media, Investors, employees, customers as well. For the strategy of working, the company’s culture has to be migrated to a new strategic direction; Employee behavior, motivation, and emotions should be changed accordingly.

    Using an example of the company need to make a purchase for a new customer initiative, Margaritas explained the possible partnership between corporate communications and the company’s major strategic decisions:

    When companies are rapidly considering changes to their business strategies or business models, then corporate communications groups should play a vital role in the planning and execution process. To change quickly, the company needs to get this news primarily in an attractive, versatile manner in important constituencies, and they have to buy. For example, the company makes a new pledge to the customers, the organization should have a program that connects employees with this new purpose.

    A company wants that loyalty of employees to be combined with new value propositions, and translate the new pledge into shareholder value. Employees need to reach new strategies. If not, the company’s brand and reputation may be suffering, corporate communications, one of the things is related to research between employee behavior, and tasks with customer service, and therefore performance interval with active communication programs. Corporate communication has to play a leadership role in a changing environment.

    FedEx takes a holistic view of corporate communications in all channels and audiences: by planning and executing a new strategy to measure attempts to add behavior and approach to business and market behavior related to marketplace and market behavior.

    Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx - ilearnlot
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  • Case Study of Leveraging Information Technology to Grow Business in FedEx

    Case Study of Leveraging Information Technology to Grow Business in FedEx

    Understanding and Learn, Case Study of Leveraging Information Technology to Grow Business in FedEx.

    Federal Express is a global express transportation and logistics company that provides customers with a single source for global shipping, logistics, and supply chain solutions. It was founded in 1973 by Frederick W. Smith. Since its launch, FedEx has led the express delivery industry. The company focused on the main business of express delivery and provided delivery services to customers at night globally. However, the change of businesses and customers from the old economy to the new economy forced FEDx to shift itself from ‘overnight delivery service’ to the ‘one-stop-shop’ for the full logistic requirement of the business. The company became the logistics service provider of major organizations like General Motors. Also learn, Case Study of Leveraging Information Technology to Grow Business in FedEx.

    Background of FedEx:

    In the late 1960s, Frederick Smith (Smith) emphasized the idea of ​​starting an airline courier company. During this period, it was a common practice for sending commercial packages such as cargo on commercial carriers such as American, United or Delta Airlines. There were many shortcomings in this exercise because the passenger airlines usually operated during the day and were on land in the night. In addition, freight forwarders (the company responsible for taking the package from the airport to the destination address) usually do not offer home delivery. Smith felt the need to start an airline courier company which would solve all these problems.

    During his college years, he recognized that the United States is becoming a service-oriented economy and requires a reliable, overnight delivery service company designed to fully package and transport documents. He wrote a Yale Term Paper on this idea and received the ‘C’ grade. His professor thought that this would never work. Fortunately for Frederick Smith, he did not take it in his heart and finished building the company he dreamed of. Smith found investors willing to contribute $ 40 million, used $ 8 million in family money and received bank financing. They started the Federal Express with more than $ 80 million, from which it was ever funded by capital.

    In the last 36 years, in the past 36 years, FedEx has called for the addition of Fadex Express (formerly the Federal Express), FedEx Ground (formerly the Roadway Package System), FedEx Custom Critical (formerly the Roberts Express), FedEx Logistics (formerly Caliber Logistics) Horizontally expanded with five subsidiaries, and Viking Freight. Consequently, the FedEx family has been able to compete collectively in clear transport and logistics industries. The FedEx strategy is to collaborate on all sales and engagement for FedEx companies, but run different operations and keep each company’s strengths and markets separately. Today, the services provided by FedEx include worldwide express delivery, ground small-parcel delivery, less truckload freight, and global logistics, supply chain management and electronic commerce solutions. Federal Express is the world’s largest package delivery company today.

    FedEx began operations with the sole focus on improving customer quality, pricing, and quality of services for the overnight delivery market in the United States. Since then, it has emerged to provide leading document and freight services for more than 212 countries across North America and abroad.

    The Federal Express Corporation had a visionary leader to become the first motivator in the express transport and logistics industry, leaving FedEx with a remote source: their ability to help them control the entire supply chain management.

    The ability of the company to use technology and its supply of resources has made competitors difficult to match standards of company standards. FedEx is mainly successful because of their technical progress. Technology has given them better customer service and quality which is not unique by any company. No company was able to offer overnight delivery of packages with speed and precision of the Federal Express.

    FedEx’s modeling capabilities gave them a competitive advantage because they implemented new methods and technology. Currently, they have a superhub with many regional centers and packages are tracked by managed and tracked systems. COSMOS – A centralized computer system to manage people, operations, and services, Master Online Systems, people, packages, vehicles and weather scenarios in real time. This system allowed the customers to know where their packages were on and later integrated for web usage, allowing customers to track the package on the Internet. Apart from this, the company’s customized delivery service is unique in the market.

    Leveraging Information Technology:

    In the late 1970s, FedEx saw a major advantage in using IT to simplify its business processes. Smith was quick to understand that speed, reliability and customer service were a necessary factor for success in the global transportation industry.

    From the beginning of the 1990s, the widespread use of the Internet has thrown open opportunities for FedEx. Since the company already had an EDI based system on which he had spent a lot of money, FedEx decided to use the combination of Internet and EDI. One example was the implementation of the purchase of products. FedEx bought a product from a company named Eriba. Eriba was a demanding system that was placed on the FedEx intranet. The system was installed so that the supplier can retain the database of catalogs that can be accessed by any FedEx employee.

    The company’s website hosts more than 6.3 million unique visitors per month and averages more than 2.4 million package tracking requests on average. More than 2 million customers are connected electronically with the company, and the electronic transaction is responsible for approximately two-thirds of the daily shipments of more than 5 lakh shipments. FedEx operates one of the world’s largest computers and telecommunication networks – computers with more than 75,000 networks and thousands of hand-held computers that ship shipment records and track. FedEx’s data center processes more than 20 million information management systems transactions every day, more than any other American company.

    The company is involved in connecting 39 hubs around the world, operating 677 aircraft and 90,000 vehicles, monitoring 200,000 employees and delivering six million packages per day in 220 countries, where every second was important. This is ‘FedEx Edge’ which is known for the company. FedEx has changed both customer and business transport models with high speed, reliability, information technology applications, better content handling systems and streamlined logistics networks.

    The company popularized the concepts of ‘first-in-time’ and ‘build-to-order’, thereby reducing the time of customer leadership and increasing productivity. In addition to joining the ‘Logistics Solutions Provider’, the company was able to maintain its leadership position in small packages and light freight markets through its unique ‘Hub and Speak’ model.

    FedEx played a role in the strategic role played in the strategy. Using IT as a major part of your business, the FedEx has reached almost entirely new groups of people. It has retained its reputation and has increased its business at the same time. IT has created a huge opportunity for customers in the global market. They can now request service, pay for that service, and track the online package. Customers no longer need to talk to FedEx.

    They are now free to order, twenty-four hours per day, seven days per week. Because of this, the strategy of FedEx has changed. It is now focused on the use of the internet and other technological advances. Because it is such an important aspect of strategy, the implementation of the strategy should be almost immediate. In order to compete with other major businesses in the industry, FedEx was supposed to serve customers who could be accessed using technology. They had to provide package tracking services too. As soon as they developed this service, their prestige and business increased.

    FedEx has done many things with its value chain to develop new business. First of all, they have always recognized the need to work in technology and IT to run logistics. They have developed Internet technologies that work smoothly and efficiently to enable customers and vendors to use Fadex. It has enabled many companies to integrate FedEx technology into their websites for the use of customers.

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  • A Good Advertisement Copy: Characteristics and Elements

    A Good Advertisement Copy: Characteristics and Elements

    Meaning: An “ad copy” is the medium through which an advertiser expresses his views as a message to readers. This article explains about A Good Advertisement Copy with discussion by Characteristics and Elements. It refers to all the reading cases of an advertisement, whether it is short or long, and includes the title, sub-title, text or body, an advertiser’s name or initials. An ad copy is sometimes known as “advertising message”. Also, learn A Good Advertisement Copy.

    Understand and Learn, A Good Advertisement Copy: Characteristics and Elements.

    Ad copy can be anything from a simple text to art form made of aesthetics or to a celebrity playing in the background or appearing in admirable music or ad in the background. A product or brand advertisement is done through many mediums. There are newspapers and magazines in which there are many pages of advertising.

    The advertisement in this form is known as the print media. Advertising can do through visual and audio media, which are usually television channels and radio channels. Regardless of how the advertisement is done, the jingles in the advertisements displayed or displayed in the words, serve as a continuous reminder for the brand and its products in our memory.

    An ad copy helps people targeted to an organization to communicate a specific message. Advertising copy plays an important role in taking marketing efforts for customers. Making an ad copy for print media and electronic media differs on different aspects. While print media ads have a positive effect on the position and appearance of the position, the electronic media is focused on catching people’s hearts within a few seconds of the allotted time.

    The Concept of the study Explains – A Good Advertisement Copy: Characteristics of a Good Advertisement Copy, and Elements of a Good Advertisement Copy.

    Characteristics of a Good Advertisement Copy:

    This article throws light on the few main characteristics of a good copy of the advertisement.

    The following characteristics are:

    • Attention Value.
    • Suggestive Value
    • Memorizing Value.
    • Conviction Value.
    • Sentimental Value.
    • Educational Value, and.
    • Instinctive Appeal Value.

    Now Explanation Each:

    Attention Value:

    The copy of an advertisement should so draft as to easily draw the attention of the prospects. This is the first requisite on which depends on the effectiveness of the ad­vertisement. Attraction can bring about by pictures, by the use of display types, borders, price quotations, reply coupons, etc. Which one or which of them will be most suitable depends on the individual condition of the product and the market.

    Suggestive Value:

    The suggestion as to the use and quality of the product makes a copy of the advertisement a good one. The re­peated use of a suggestion, a command or a slogan can do the trick. Coca-Cola, Pepsi are examples.

    Memorizing Value:

    The copy of the advertisement should so draft as to make it suitable to stick to the memory of the in­dividual reader. Repetition of the advertisement is an effective way of creating memorizing value. In any copy of advertise­ment of a branded product, the advertiser must stress the brand name repeatedly. (Vim, Coca-Cola, etc.).

    Conviction Value:

    Convincing arguments add value to a copy of the advertisement. To create the conviction value, the advertiser will have to avoid both extremes it should neither be a plain notice to the prospects announcing the availability of a certain product nor should it use flowery and high-flown language to advertise a product, without giving any tangible and appealing reasons why the customer should prefer the product to the rival products in the market.

    Sentimental Value:

    Sentiments play a very important role in any matter. In advertising, it must not overlook that the sentiments of those for whom the advertisement is primarily meant rouse or at least not injured or adversely affected.

    Educational Value:

    A copy of the advertisement, though is commercial, we must not forget that the advertise­ment should contain information that has some educational value. An advertisement not only retains an existing market but creates the market for the future. The copy of the advertisement should be informative and must contain in it the ingredients that will help people to change their habits in such as to be conducive to create additional demand.

    Instinctive Appeal Value:

    Certain instincts are ingrained in human beings. The copy of the advertisement should so draft as to encourage those instincts that are relevant for the product advertised. Advertising is essentially the motivation of the po­tential consumer and to activate the motivation, an appeal is of very great significance.

    Generally speaking, a good of advertis­ing should direct to:

    1. Self-preservation instinct,
    2. Hoarding instinct,
    3. The instinct for self-display,
    4. Parental in­stinct and,
    5. Something for nothing instinct (vague desire’ to get something without paying for it).

    Based on these basic instinctive appeals, the follow­ing themes may lay down for a copy of good advertisement: pride, beauty, health, economy, comfort, fear, parental affec­tion, patriotism, achievement, emulation, and imitation.

    The Elements of a Good Advertising Copy:

    The make-up or parts of the copy of the good advertisement or advertising can view from two aspects – elements below are:

    1. Advertising theme, and.
    2. Advertising layout.

    Now, explain each one;

    Advertising Theme:

    A theme represents a particular viewpoint or a central idea with which the message is conveyed to the consuming public. The theme involves a rational appeal based on human emotions, desires or sentiments. Such well-thought-out and specific appeals became effective in arousing desire and in initiating action on the part of consumers.

    Elements of Good Advertisement Copy – The following are the common themes used in advertising:

    The theme of beauty:

    The sales appeal for cosmetics, perfumeries, and toilet products are usually based upon the theme of beauty. Accordingly, the message of the advertisement contains expressions like “For romantic or charming appearance, use product A”, “Product B ensures alluring or exquisite complexion”, or “Care your hair with product C for the glossy glimpse and luxuriant growth.”

    The theme of pride:

    The sales message in the case of pieces of jewelry, radios, costly clothes, motor cars, and others is laid upon the theme of pride since the acquisition of such products deems as proud possessions on the part of buyers. For example, “Prestige car means A”, “Radio B adds decency to any home”, “Discerning people prefer fabric C”, or “X’s Jewellery adorns fashionable ladies.”

    The theme of health:

    Food products and drugs are advertising through reliance upon the theme of health. To take some examples, “Product A supplies boundless energy and vigor”, “Health brings happiness—and the key to health help by product B”, “Product C keeps you free from disease”, or “Eminent physicians prescribe D for cold and cough.”

    The theme of comfort:

    Products which aid in giving comfort to the people at work or home are advertising through the theme of comfort. Elec­trical fans, air-conditioning plants, refrigerators, and the likes belong to the group of products meant for providing comfort.

    The theme of the economy:

    This is a common appeal use in many cases for making bargaining purchase, for saving money or for protecting costly things from decay and destruction.

    The theme of fear:

    The theme of fear utilizes by insurance companies and safety-vault operators in expanding the demand for their services. Possible dangers and their consequences are presenting in the copy of advertising for initiating action on the part of their customers.

    The theme of emulation:

    The desire for imitation strongly implants in human nature. By giving illustrations and factual information as to what some distinguished persons do, the message of the advertisement may call for imitation on the part of others. To take one case, “The succ­essful men all over the globe use Blade A.”

    The theme of distinction:

    The desire for individual recognition, distinct social status, and superior community standing is inherent in human beings. As an outward mark of that distinction, selected products of very expensive nature are acquiring by a class of people who may be high-borns or aristocrats.

    The theme of affection:

    Baby foods, toys, and other playthings are advertising based on this theme. By directing appeal towards parental love, the copy of advertising becomes effective in securing action on the part of buyers.

    The theme of patriotism:

    The appeal for products of national origin is sometimes based upon national sentiments. For the prosperity of a nation and its citizens, the theme of patriotism makes out a case for using national products in preference to goods of foreign origin.

    Advertising Layout:

    The layout is the logical arrangement of compo­nents of an advertisement in the copy and deals with the systematic presentation of the message. The pattern of layout varies according to the medium to use.

    For newspapers and magazines, the presentation of the message is visible in written words and pictures; in radio, the presentation is audible in spoken words and sound effects; and in television, both audio and visual presentations are practicable. In all cases, balance and symmetry are of prime importance in presenting the message within the allotted space or time.

    Visual layout in any publication can divide into the following three parts:

    Headlines:

    Headlines are using in bold letters for drawing atten­tion of the consuming public. The size and length of the headline must be appropriate to the general format and page size of the publication; it must also be in keeping with the theme of advertising and with the entire makeup of the copy.

    Usually, short headlines are giving stressing some facts, suggestions, prepositions or convictions. In magazines and trade journals, color printing adopts for headlines to make than more promi­nent and conspicuous.

    Illustrations:

    Illustrations are giving by way of pictures, symbols or photographs for drawing attention, creating interest as well as for arousing desire. Significant illustrations may be worth a thousand words in securing public reception for the product.

    But limits of decency must not exceed in presenting pictures or photographs which should always be in good taste. Obscene and objectionable pictures do more harm than good to the cause of advertisement.

    Texts:

    Texts provide the heart of the message of advertisements, and they are to weave around an advertising theme. For an individual copy, one theme is desirable; a multiplicity of themes creates confusion and weakens the strength of appeal. For presenting the text, different practices are following in the business world.

    In some cases, the text prefaces by a statement of the problem to the reader and follow by a solution thereof. In other cases, reading materials are presenting analytically with pertinent facts and data. Furthermore, the text may present by the use of a typeface in one copy or of hard lettering in another copy.

    A Good Advertisement Copy Characteristics and Elements - ilearnlot
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  • A Good Advertisement Copy: Features, Types, and Benefits

    A Good Advertisement Copy: Features, Types, and Benefits

    The advertisement copy refers to the written contents of the advertisement including its text and headline. This article explains about A Good Advertisement Copy with discussion by Features, Types, and Benefits. It can refer to as the heart of advertising and should draft with utmost care; otherwise, all the money invested in carrying out the advertisement campaign will go to waste.

    Explanation and Learn, A Good Advertisement Copy: Features, Types, and Benefits.

    In the words of William J. Stanton “The copy in an advertisement is defined as the written or spoken material in it, including the headline, coupons and advertiser’s name, and address as well as the main body of the message”. Simply stated advertisement copy means the total structure relating to the message which the advertiser wants to convey by using any medium of advertisement.

    The advertisement copy should prepare in such a manner as to leave ever­lasting impression on the reader. The job of drafting the copy should entrust to an expert. The reader should not only read but understand and believe the contents given in the advertisement copy.

    It should properly work and cover every detail about the product. Various considerations or essentials of a properly drafted advertisement copy are as under.

    The Concept of the study Explains – A Good Advertisement Copy: Features of a Good Advertisement Copy, Types of a Good Advertisement Copy, and Benefits of a Good Advertisement Copy.

    The Features or Characteristics of a Good Advertisement Copy:

    These also know as salient features or characteristics of a good advertisement copy.

    It Should Be Simple:

    The first important ingredient of an advertisement copy is that it should write in simple language. It should be capable of proper understanding. They should not use ornamental and tough words rather short, simple and properly understandable words.

    It Should Be Capable Of Holding The Reader’s Attention:

    An advertisement copy should be capable of holding the attention of the reader. It should present in such a manner which attracts the consumer immediately.

    The following methods may undertake to hold the attention of the reader:

    • Headlines should properly word and attractive. It should be short and easy for the reader to remember.
    • Use of pictures and sketches should be in direct relation to the product to advertise. A good sketch and drawing will be greatly helpful in explaining the product.
    • An attractive border may insert around the advertisement copy to distinguish it from other advertisements. Underlining the keywords and leaving blank space at the bottom of the copy is also helpful in drawing the reader’s attention.
    • Quoting the price of the product in the advertisement copy is also helpful in holding the attention of a reader. This would be more helpful if the price of the commodity is low.
    • The insertion of reply coupons in the advertisement copy is also helpful in attracting the people.
    It Must Be Suggestive:

    The advertisement copy should be capable of suggesting the reader about the utility and use of the product. Effective slogans can use to give suggestions to people. For example, in case of camp Cola, it is written in the advertisement copy that “life is full of camp cola times”, similarly in case of State Bank of India, it is advertised, “protect your future with State Bank of India”. All these slogans have suggestive value. Suggestions may also give with the help of certain pictures in the advertisement copy.

    It Should Have Conviction Value:

    The advertisement copy shall be able to have an everlasting impression on the reader if the suggestions are backed by convincing arguments. The reader should not have any doubt on the quality of the product. He should fully convince and satisfied. Exaggeration in explaining the qualities’ of a product must check. An appeal about the outstanding features of the product must make. It should state in simple language so that the reader could understand easily.

    In the case of Chelpark fountain pen ink, it is written that it cleans your pen while writing, contains clean x for better pen protection. Similarly in case of Forhan’s toothpaste, “it is ideal for the gums” and “protects your teeth” some organizations assure “money-back guarantee” to convince the people about the quality of the products.

    It Should Educate The People:

    The advertisement copy should tell the people about the use and operation of a product. It should also impart new uses of a product with which the people are not familiar. An advertisement copy containing information about the use, sources from where the product can obtain, price and services available along with the product is greatly helpful in enhancing the demand and enlarging the sales.

    For example, in the case of Hawkin’s pressure cooker, a booklet is also given to the buyer containing methods of preparing various vegetables, soups, and puddings, etc. with the help of the cooker. Similarly, in case of a refrigerator, a booklet containing various directions about proper use and preservation of the refrigerator are giving.

    It Should Have Memorising Value:

    The advertisement copy should prepare in such a manner that a reader gets the everlasting impression about the product. It can successfully create by repeating the advertisement time and again. Repetition projects the permanent image of the product on the reader’s mind. Trademarks and brand names can use successfully for achieving this end. Dalda, Thums-up, Bournvita, and Surf have successfully achieved memorizing value. The names of these products are very common among people.

    It Should Be True:

    An advertisement copy should be truthful. It should not misrepresent and conceal the facts about the product. Rather it should lay down the limitations in the product. For example, a cloth merchant should specify the fading of color and shrinkage of yarn, if it is so. If these limitations are not brought to light, the buyer eventually comes to know about them after using the product. This will shatter the confidence of the buyer in the product and the very aim of the advertisement defeat.

    Types of a Good Advertisement Copy:

    As told earlier, the method or style of presentation is to do with how the message presents. It speaks of the different types of advertising copies to arrest, inform, impress and impel the reader; certain elements are to be present in a copy such as attention, suggestion, meaning, conviction, sentiment, education, and instinct.

    Good Advertisement Copy is classifying in several ways in their types. However, the most practical one is to classify into six types as:

    • Institutional.
    • Reason why?
    • Human interest.
    • Educational.
    • Suggestive and.
    • Expository.

    Now, explain each one;

    Institutional Copy:

    Institutional Copy neither sells nor the products neither the service but the name of the business house. The aim is to build the sound edifice of a reputation for the selling house. It seeks to build goodwill through its philosophy, objectives, and policies towards public so that the prospects remember it.

    Reason Why Copy:

    Reason Why Copy offers reasons as to why the customer expects to buy a product or service of the advertiser. It appeals straight to the intellect or the judgment of an individual than emotion or impulses. It attempts to prove the product superiority using evidence in the forms of performance test, records, testimonials, guarantees and the like.

    Human Interest Copy:

    Human Interest Copy appeals to the emotional and the senses than intellect and the judgment, sympathy, affection, love, fear, humor, curiosity and other emotional appeals are used to the sense of sight, touch, taste, smell, and hearing.

    It tells about the product about the people instead of conforming to the facts about the products. It takes several forms of which four are very significant namely, “fear”, “humorous”, “story” and “predicament” copy.

    Suggestive Copy:

    Suggestive Copy tries to suggest or pinpoint or convey the message of the advertiser directly or indirectly to the readers. Much is left to the reader to infer the ad message. Like a poem, suggestive language is freely used where the hidden meaning is to pick by the readers. Such a copy can be “direct” or “indirect” suggestive copy. The first tells directly about the products or services of the company while the latter does indirectly.

    Expository Copy:

    Expository Copy is the open copy that exposes, unlike suggestive copy. It is so open that the facts are given in a very simple and clear way so that there is no need for interpretation. The information given is so clear and concise that hardly it takes the reader’s brain. It makes possible effortless grasp and acts.

    Advertisement Copy is the soul of an advertisement. An advertisement copy is all the written or spoken matter in an advertisement expressed in words or sentences and figures designed to convey the desired message to the target consumers.

    In print media, an advertisement copy is made-up of head-line, sub-headlines, the body of the copy, illustration logo-type, slogan, and the brand name. Strictly speaking, the written content of an ad copy is the product of the collective efforts of copy-writers, artists and the layout-men.

    As well as, Copywriter and artist must collaborate to provide an advertisement though copywriting precedes or succeeds the artwork and the layout.

    The Benefits of A Good Advertisement Copy:

    Whether a copy is effective or ineffective is a matter of personal judgment. It is very difficult to judge as its evaluation is purely subjective and perceptive. However, a good or effective copy is one that succeeds in reaching the target consumers to create favorable benefits towards the product and the producers, impelling an action on the part of the consumer to buy.

    A good advertisement copy has the following Benefits:

    It is brief:

    Brevity is the soul of wit. Most readers are interested in shorter advertisements. Being brief is not dropping words or chopping sentences. It is the meticulous work of eliminating and substituting the words without jeopardizing the meaning. This cuts to the core, it is to the point to cover all.

    It is clear:

    A clear copy is one which is easily and quickly read and grasped by the readers. It is unambiguous and self- explaining. It is one that clicks fast. Clarity gives clue to interpretation. How a copy is interpreted is dependent on factors like local traditions habits, customs, and nationality. Clarity adjusts to these points.

    It is apt:

    A copy is apt that matches the needs and counts of the prospects. Writing an apt copy is the art of putting in the words that create a strong desire to possess the product where the product features or the qualities satisfy the consumers’ desire to possess. The Copywriter is to place himself in the position of a customer to make it apt. He is to use the most suitable USP.

    It is personal:

    A personal copy is specific where generality dismisses to do away with ambiguity. A personalized copy centers on the prospect. It presents something of interest to the prospect. It’s an individualized appeal copy. It is written from “prospect” to “product” rather than “product” to “prospect”. The copy has “your attitude”.

    It is honest:

    Credibility or believability of an advertisement message is decided by the extent of honesty. An ad to be good must be truthful. Misleading and miss-presented facts made in the copy only damage the reputation of selling the house. One of the surest ways of winning the hearts of the consumers is, to be honest. “Honesty”, here, implies “commercial honesty” and not the “judicial”.

    It is conforming:

    Every ad copy is to conform to standards, rules, and regulations acceptable to the advertising media and the laws of the land. Anywhere in the world, no copy is acceptable to any media that offends the morality, declines decency and ravages religious susceptibilities of people.

    That is why; we have not come across ads on cigarettes and alcohols on radio and television. No advertiser can violate the provisions of the Act of Names and Emblems, Drugs Acts of 1940, 50, and 54.

    A Good Advertisement Copy Features Types and Benefits - ilearnlot
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  • What is OTCEI (Over The Counter Exchange of India)?

    Learn and Study, What is OTCEI (Over The Counter Exchange of India)?

    Over the Counter Exchange of India (OTCEI) was incorporated in October 1990 under Section 25 of the Companies Act, 1956 with the objective of setting up a national, ring-less, screen-based, automated stock exchange. It is recognized as a stock exchange under Section 4 of the Securities Contracts (Regulations) Act, 1956. It was set up to provide investors with a convenient, efficient and transparent platform for dealing in shares and stocks; and to help enterprising promoters set up new projects or expand. Also learned, ISE, NSE, SEBI, What is OTCEI (Over The Counter Exchange of India)?

    Their activities, by providing them an opportunity to raise capital from the capital market in a cost-effective manner. Trading in securities takes place through OTCEI’s network of members and dealers spanning the length and breadth of India.

    Over The Counter Exchange of India was promoted by a consortium of financial institutions including:

    • Unit Trust of India.
    • Industrial Credit and Investment Corporation of India.
    • Industrial Development Bank of India.
    • Industrial Finance Corporation of India.
    • Life Insurance Corporation of India.
    • General Insurance Corporation and its subsidiaries.
    • SBI Capital Markets Limited.
    • Canbank Financial Services Ltd.

    The Over the Counter Exchange of India is based on the model of the national association of securities dealers’ automated quotation (NASDAQ) of USA, with modifications to suit the Indian conditions. The OTCEI arose out of the need to have a second tire market in the country. It was set up to provide small and medium companies an access to the capital market for raising finance in a cost-effective manner and investors with a convenient, transparent and efficient avenue for capital market investment.

    The OTCEI was the first ring less, electronic and national exchange with a screen-based trading system listing an entirely new set of companies of small size. It allowed companies with paid-up capital as low as 30 lacs to get listed, It brought the screen-based trading system in vogue for the first time; this was quite different from the open outcry system at BSE.

    Moreover, each strip listed on the exchange had at least two market makers who continuously gave two way quotes. Market makers are merchant bankers willing to make a market in securities by continuously offering to buy and sell quotes. They act as a dealer cum stockiest and do not charge any commission or brokerage. Their profit margin is the spread between the bid and offer prices.

    A voluntary market maker can be appointed for a period of six months. Market making is a unique concept of OTCEI. The other player on OTCEI is the custodian or registrar a safe keeper of share certificates. The OTCEI provides a liquid cash market for retail investors with a T+3 rolling settlement systems and no problem of bad of short deliveries.

    Salient Features of Over the Counter Exchange of India:

    1. Ring-less and Screen-based Trading: The over the Counter Exchange of India was the first stock exchange to introduce automated, screen-based trading in place of the conventional trading ring found in other stock exchanges. The network of on-line computers provides all relevant information to the market participants on their computer screens. This allows them the luxury of executing their deals in the comfort of their own offices.
    2. Sponsorship: All the companies seeking the listing on Over the Counter Exchange of India have to approach one of the members of the OTCEI for acting as the sponsor to the issue. The sponsor makes a thorough appraisal of the project; as by entering into the sponsorship agreement, the sponsor is committed to making the market in that scrip (giving a buy sell quote) for a minimum period of 18 months, sponsorship ensures quality of the companies and enhance liquidity for the scrip’s listed on OTCEI.
    3. Transparency of Transactions: The investor can view the quotations on the computer screen at the dealer’s office before placing the order. The OTCEI system ensures that trades are done at the best prevailing quotation in the market. The confirmation slip/trading document generated by the computers gives the exact price at which the deals has been done and the brokerage charged.
    4. Liquidity through Market Making: The sponsor-member is required to give two-way quotes (buy and sell) for the scrip for 18 months from the commencement of trading. Besides the compulsory market maker, there is an additional market maker giving two way quotes for the scrip. The idea is to create an environment of competition among market makers to produce efficient pricing and narrow spreads between buy and sell quotations.
    5. Listing of Small and Medium-sized Companies: Many small and medium-sized companies were not able to enter the capital market due to the listing requirement of Securities Contracts (Regulation) Act, 1956 regarding the minimum issued equity of Rs.10 crores in case of the Mumbai stock Exchange and Rs.3 crores in case of other stock exchanges. The OTCEI provides an opportunity to these companies to enter the capital market as companies with issued capital of Rs.30 lacks onwards can raise finance from the capital market through OTCEI.
    6. Technology: Over The Counter Exchange of India uses computers and telecommunications to bring members/dealers together electronically, enabling them to trade with one another over the computer rather than on a trading floor in a single location.
    7. Nation-wide Listing: Over the Counter Exchange of India network is spread all over India through members, dealers and representative office counters. The company and its securities get nation-wide exposure and investors all over India can start trading in that scrip.
    8. Bought-out Deals: Through the concept of a bought-out deal, OTCEI allows companies to place its equity with the sponsor-member at a mutually agreed price. This ensures swifter availability of funds to companies for timely completion of projects and a listed status at a later date.

    Benefits of getting OTCEI Listing for Companies:

    The Over the Counter Exchange of India offers facilities to the companies having a issued equity capital of more than Rs. 30 lakhs.

    The benefits of listing at the Over the Counter Exchange of India are:

    • Small and medium closely-held companies can go public.
    • The OTCEI encourages entrepreneurship.
    • Companies can get the money before the issue in cases of Bought-out-deals.
    • It is more cost-effective to come with an issue of OTCEI.
    • Small companies can get listing benefits.
    • Easy issue marketing by using the nation-wide OTCEI dealer network.
    • Nation-wide trading by listing at just one exchange.

    Benefits of Trading on OTCEI for Investors:

    • The OTCEI trading counters are easily accessible by any investors.
    • The OTCEI provides greater confidence to investors because of complete transparency in deals.
    • At the OTCEl, the transactions are fast and are completed quickly.
    • The OTCEI ensures security, liquidity by offering two-way quotes.
    • The OTCEI is an investor friendly exchange with Single Window Clearance for all investor requests.

    The OTC Exchange Of India (OTCEI), also known as the Over-the-Counter Exchange of India, is based in Mumbai, Maharashtra. It is India’s first exchange for small companies, as well as the first screen-based nationwide stock exchange in India. OTCEI was set up to access high-technology enterprising promoters in raising finance for new product development in a cost-effective manner and to provide a transparent and efficient trading system to investors.

    OTCEI is promoted by the Unit Trust of India, the Industrial Credit and Investment Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India, and other institutions, and is a recognised stock exchange under the SCR Act.

    The OTC Exchange Of India was founded in 1990[3] under the Companies Act 1956 and was recognized by the Securities Contracts Regulation Act, 1956 as a stock exchange. The OTCEI is no longer a functional exchange as the same has been de-recognised by SEBI vide its order dated 31 Mar 2015.

  • What is ISE (Inter-Connected Stock Exchange)?

    Learn, What is ISE (Inter-Connected Stock Exchange)?

    The formation of NSE changed the way in which the stock exchanges were functioning. Modern infrastructure, technology, transparency and corporate governance are now becoming the features in the corporate the world. It also forced BSE to adopt the new technology and with this, NSE and BSE crossed boundaries and started functioning, operating throughout India. This affected the functioning of small and regional exchanges. This led to the birth of the Inter-connected Stock Exchange of India Ltd. (ISE). Federation of Indian stock exchanges, in a meeting held in 1996, constituted a steering committee to evolve an interconnected market system. Also learned, NSE, SEBI, What is ISE (Inter-Connected Stock Exchange)?

    In 1997, the market governing the body of India, Securities and Exchange Board of India (SEBI) granted approval to the proposal of the ISE to set up a national level stock exchange promoted by 14 regional stock exchanges.  ISE was launched with an objective of converting small, fragmented and illiquid markets into a large, efficient and liquid market. Inter-Connected Stock Exchange (ISE) has set up an Inter-connected Market System (ICMS) which provides its trading members a facility to trade on the national market in addition to the trading facility at the regional stock exchanges. The trading members of the ISE, who are already the members of the 14 stock exchanges (which are the constituents of the ISE), satisfy the capital adequacy requirements of the ISE separately and in addition to the capital adequacy requirements of the regional stock exchange.

    The ISE has set up a separate clearinghouse for settlement of the trades at the national market. The ISE has also made arrangement to appoint a clearing bank for online transfer of funds from regional centers to the national center. The ISE has an adequate risk management system for safety, integrity of the market and also to protect the interest of the investors. The participating exchanges of ISE have about 4,500 members and a large number of listed securities. It is a stock exchange of stock exchanges, members of the stock exchanges being traders on the ISE. The ISE has provided a highly automated trading system to the traders of the participating regional stock exchanges with direct access to the national level trading platform on an equal footing regardless of the location of the particular stock exchanges.

    Important Features of Inter-Connected Stock Exchange of India

    There are some of the features which make ISE a new age stock exchange are as follows:

    • ISE is a national level recognized stock exchange having moderate listing fees and granting listing and trading permission to small and medium-sized companies having a post public issue paid-up capital of Rs. 3 crore to Rs. 5 crores (subject to the appointment of market makers), besides companies with a capital of above Rs. 5 crores.
    • All traders and dealers of ISE have access to NSE through ISE securities and Services Ltd. (ISS), which ensures the continuous attention of investors.
    • ICSE has set up an ‘Investor Grievance and Service Cell’ which looks after all types of complaints of investors located across the country and provides decentralized support.
    • Listing of stocks with ISE would give the company an advantage of being identified as a technology-savvy and investor-friendly company.

    Inter-connected Stock Exchange Ltd. (ISE) is an Indian national-level stock exchange, providing trading, clearing, settlement, risk management and surveillance support to its trading members. It started its operation in 1998 in Vashi, Mumbai, and has 841 trading members, who are located in 18 cities. These intermediaries are administratively supported through the regional offices at Delhi, Kolkata, Patna, Ahmedabad, Coimbatore, and Nagpur, besides Mumbai.

    The ISE is promoted by 12 regional stock exchanges namely at Bangalore, Bhubaneshwar, Chennai, Kochi, Coimbatore, Guwahati, Indore, Jaipur, Kanpur, Mangalore, Magadh, and Vadodara. The participating exchanges of ISE have 4,500 members and listed securities. It is a stock exchange of stock exchanges, members of the stock exchanges being traders on the ISE.

  • Explain, What is SEBI (Securities and Exchange Board of India)?

    Explain, What is SEBI (Securities and Exchange Board of India)?

    Securities and Exchange Board of India (SEBI) is the nodal agency to regulate the capital market and other related issues in India. It was established in 1988 as an administrative body and was given statutory recognition in January 1992 under the SEBI Act 1992 which came into force on January 30. The Act charged the SEBI, the first national regulatory body in India with comprehensive statutory powers over practically all aspects of capital market operations, “to protect the interests of the investors and to promote the development of, and to regulate the securities markets by such measures as it thinks fit.” Also learned, NSE, Explain, What is SEBI (Securities and Exchange Board of India)?

    Learn, Explain, What is SEBI (Securities and Exchange Board of India)?

    Explain What is SEBI (Securities and Exchange Board of India) - ilearnlot

    SEBI has been vested most of the functions and powers under the Securities Contract Regulation (SCR) Act, which brought stock exchanges, their members, as well as contracts in securities which could be traded under the regulations of the Ministry of Finance. It has also been delegated certain powers under the Companies Act.

    In addition to registering and regulating intermediaries, service providers, mutual funds, collective investment schemes, venture capital funds and takeovers, SEBI is also vested with the power to issue directives to any person(s) related to the securities market or to companies in areas of issue of capital, transfer of securities and disclosures. It also has powers to inspect books and records, suspend registered entities and cancel the registration.

    Before the establishment of Securities and Exchange Board of India (SEBI), the principal legislation governing the securities market in India was the capital issues control act 1956 and the securities contract act 1956. The regulatory powers were vested with the controller of capital issues for the primary market and the stock exchange division for the secondary market in the Ministry of Finance, Government of India.

    SEBI has been constituted on the lines of Securities and Exchange Commission of USA. SEBI is consisting of the Chairman and 8 Members (one member representing the Reserve Bank of India, two members from the officials of Central Government and five other public representatives to be appointed by the Central Government from different fields). SEBI has been playing an active role in the Indian Capital Market to achieve the objectives enshrined in the SEBI Act, 1992.

    The major objective of the Securities and Exchange Board of India (SEBI) may be summarized as follows:
    • To provide a degree of protection to the investors and safeguard their rights and to ensure that there is a steady flow of funds in the market.
    • To promote fair dealings by the issuer of securities and ensure a market where they can raise funds at a relatively low cost.
    • To regulate and develop a code of conduct for the financial intermediaries and to make them competitive and professional.
    • To provide for the matters connecting with or incidental to the above.
    Section 11 of the SEBI Act deals with the powers and functions of the SEBI as follows:

    It shall be the duty of Board to protect the interests of the investors in securities and to promote the development of and to regulate the securities market by measures as deemed fit.

    To achieve the above, the Board may undertake the following measures:
    • Regulating the business in stock exchanges;
    • Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, merchant bankers, underwriters, portfolio managers;
    • Registering and regulating the working of the depositories, participants, credit rating agencies;
    • Registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds;
    • Prohibiting fraudulent and unfair trade practices relating to securities markets;
    • Promoting investors education and training of intermediaries of securities markets;
    • Prohibiting insider trading in securities;
    • Regulating substantial acquisition of shares and take-over of companies; and
    • Calling for information from undertaking, inspection, concluding inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market intermediaries and self-regulatory organizations in the securities market.

    In order to attain these objectives, SEBI has issued Guidelines, Rules, and Regulations from time to time. The most important of these is the “SEBI (Disclosure and Investor Protection) Guidelines,2000”. The provisions of these Guidelines,2000 are aimed to protect the interest of the investors in securities.

    The Guidelines, 2000 deals with the following areas :
    • Eligibility norms for companies issuing securities,
    • Pricing of securities by companies,
    • Promoters contribution and lock-in requirements,
    • Pre-issue obligations of the merchant bankers,
    • Contents of the prospectus/abridged prospectus letter of offer,
    • Post issue obligation, of merchant bankers,
    • Green shoe option,
    • Guidelines on advertisements,
    • Guidelines for issue of debt instruments,
    • Guidelines for the book building process,
    • Guidelines on public offer through the stock exchange on-Line system,
    • Guidelines for issue of capital by financial institutions,
    • Guidelines for preferential issues of securities,
    • Guidelines for bonus issues,
    • Other operational and miscellaneous matters.

    In order to regulate and control and to provide a code of conduct for the merchant bankers, other participants of the capital market, and other matters relating to the trading of securities, Securities, and Exchange Board of India (SEBI) has issued several Rules and Regulations.

    These are related to Bankers to the issues, Buyback of securities, Collective Investments Schemes, Delisting of securities, Depositors, Derivatives, Employee stock options, Foreign Institutional Investors(FII’s), Insider Trading, Lead Manager, Market Makers, Merchant Bankers, Mutual Funds, Ombudsman, Portfolio Manager, Registrars and Share Transfer Agents, Securities Lending Scheme, Sweat Equity, Stock Brokers and sub-brokers, Takeover Regulations, Transfer of Shares, Underwriters, Unfair Trade Practices, venture capital Funds, Annual Reports, etc.