Bernardo Guzmn Lpez Karla Alejandra Carrillo Hernndez Cristina Loaiza de la Mora Mario Ibaez Barrera Luis Juventino

Lpez Villegas Michel Rodrguez Eduardo Ortiz

FedEx Challenge

Tecnolgico de Monterrey, Campus Ciudad de Mxico

Objectives:

1. Increase sales attributed to small and medium enterprises that focus on local and i nternational exportation. 2. Develop strategies to increase flow in retail points and therefore also invreasing sa les at these points.

Segment analisys: small and medium enterprises that use local and international parcell s ervices. Mexican SMEs According to the Subsecretara para la mediana y pequea empresa(Spyme), in Mexico th ere are more than 4.1 million micro enterprises, that attribute 41.8% of national employment. Th ere are 174,800 small enterprises and they account for 15.3% of employment; Added to this, med ium enterprises sum up to 34,960 and they generate 15.9% of national employment. In Mexico, SMEs have a low exportation average, this is mainly attributed to a poor formal strategic planning process and a underdeveloped logistic system; even though SMEs provide em ployment, the majoirty of them have not reached a development level that allows them to compe te and interact under the international market. General characteristics of SMEs: In average SMEs have a life expectancy of 16 years 65% of SMEs are family owned

31% of the employees that work at an SME have completed Jr high, 26% completed high school or some type of technical career. 90% of these businesses are focused on trade The most common line of business are restaurants, and grocery stores.

The remaining percentage is represented by professionals focused on independent projects. SMEs depend mostly on government support.

Economic Tendencies: Increased support offered by the mexican government such as purchasing services that these enterprises offer, or through support programs, the government finds ways of injecting resources. An example of this would be the SME fund, which in 2012 gave out 7,000 million pesos for the development of projects. In addition, the government has taken a defining role in the acquisition of SMEs services. In 2009, this sector accounted for 17,600 million pesos of SMEs sales, in 2010, 62,000 million pesos and a year later 72,000 million pesos were registered. The countries of Latin America currently face a complex economic environment

due to the weakened economic global growth and the ever-present uncertainty it projects, this is why a structural change is needed that favors the diversification of the economy, increasing productivity and decreasing technological and productivity gaps; the development of policies specifically focused on SMEs- by both modernization of existing enterprises and the creation of new enterprises that may penetrate new market activities of greater added value- must consider the heterogeneity of these actors and their environment.

With an average participation of nearly 23%, public financial institutions(IFPs) have had a crucial role in the facilitation of direct and indirect credit programs to SMEs. Long term credit financing increased 85% between 2007 and 2009. In 2009, 8 of every 100 latin american workers, labored in high productivity sectors (mining, energy, financing), 20 sectors of medium productivity (manufacturing, transports) and over 70 in relative low productivity sectors (agriculture, construction, commerce and services) According to a comparison between enterprise creation and survival rates, in Argentina, Brazil, Colombia and Mexico compared to those of European countries, the business dynamics present profound differences (Bartelsman et al., 2004). Mexico has one of the highest business creation rates, over Argentina, Brazil and most european countries. Although, the survival rates of these business in Mexico is under those of other countries of the region, which reflects a easy entrance environment but an adverse medium term landscape; Which eventually, in 2010, brought the competitive micro and SME development Law, in order to better support these new endeavors. From the point of view of the 90s decade, the ESM support policies have undergone a serious evolution process. Also in Mexico ESM support programs have experimented an astonishing increase. For example, the NAFIN program grew from a 0.8% GDP representation in 2001 to a 2.5% in 2008. Within the programs offered, the Program Cadenas Productivas de NAFIN program offers enterprises access to immediate liquidity, obtaining financing on accounts receivable through the electronic discount of its invoices before their due date.

Domestic/Retail International retail trends

1. Empowered and discerning consumers: With the access to products information including price comparison and user opinions, consumers can make decisions with the information obtained. In this case, traders must add a significant value to the products that consumers common can find, it could be online or directly in the points of sale.

2. Ubiquitous Connectivity: The scope available of the internet in any part or time like in the office, home or in the way (mobile devices), consumers will be connected most of the time and thereby can make their purchases on line.

3. Local and ecologic purchases: Buyers want to make a responsible and sustainable consume. They desire buy to local and organic sellers with a testing of the products origin. However, the enterprises and sellers have to know if consumers are willing to pay more for ecologic products.

4. Sources of consumers data: Points of sales (POS), social networks, corporative web sites and tracking URLs generate an huge amount of consumers data but only a few of traders are able to maximize the potential value of this entry. It will take time, because the volume of data continues growing faster than the capacity for processing.

5. New marketing age: With more data of consumers like their activities online or purchasing behavior, traders will be able to make specify marketing campaigns. This will require experimentation and calibration of these campaigns, because consumers have little tolerance for wrong marketing efforts.

6. Growing power of retail: The slowdown in growth in the long term in developed markets, retailers in North America and Western Europe will continue to investigate the potential of the regions. Retailers expect sales of non-food retail market to grow faster at a rate of 4% per year between 2011 and 2016. The good and grocery market, meanwhile, will grow by just over 3.5%. Brazil and Mexico will be responsible for the majority of these new sales, driven by the development of channels such as pharmacies and wholesale stores. 7. Evolution of retail technologies: A wide range of technologies is enabling companies to streamline back-office functions and increase the efficiency, helping to offset higher labor costs like the peak of the online environment.

8. Diffused boundaries between channels, formats and brands: Pharmacies are selling fresh food, grocery stores have bank branches, and the cafes and bookstores have to sell Starbucks coffee or another brand of coffee. Instead of thinking in terms of channels, consumers are simply opportunistic. If traders have in the moment, a quickly solution for consumers need and they can meet easily and conveniently, they will buy in the trader channel and brand. The increase of online shopping is eroding store traffic, forcing retailers to rethink their budget for real state, marketing assets and commercial formats. Market players that are dynamic will act differently by category and location.

Proposed Strategies:

a) For PYMES and retailers, upgrade the offered services in the FedEx web site. b) Increase advertising for mass market and digital media to familiarize the target that well focus with FedEx offered services. c) For retail: Change Multipack image making it similar to FedEx image. We propose MultiPack by FedEx

Ejemplos de estrategias: http://www.slideshare.net/LeoBurnettCol/tendencias-para-retail

Referencias datos: http://www.economia.gob.mx/swb/es/economia/p_cpyme_exportacion http://www.economia.gob.mx/swb/es/economia/p_Contacto_PyME http://www.cepal.org/publicaciones/xml/4/48374/LEO_2013.pdf http://www.creditperformancenews.com/es/notas/2012-02-00/america-latina-el-motor-de-crecim iento-del-retail-global/