UPS Marketing Plan
----------------------------------Advanced Marketing Management
Marketing plan for United Parcel Service
Mission Statement:
End-to-end global supply chain provider.
Executive Summary:
The company analysis shows that UPS is actually positioned as a domestic (U.S.) ground shipping company, instead of being the primary coordinator of the flow of goods, information and funds throughout the entire supply chain on an internati onal basis, as UPS perceives themselves. UPS is the follower in the overnight (e xpress) deliveries segment. Therefore the marketing plan recommends gaining mark et share in that segment by withdrawing market share from FedEx, which is the ma rket leader in that segment. Therefore, UPS should target companies (such as hos pitals, finance companies etc.) and households who are currently using FedEx for urgent freight. In addition, UPS should also position themselves in the interna tional shipping market. Therefore, they should target global manufacturing compa nies where UPS can handle storage, tracking and shipping on a worldwide base.
The major strength of UPS is its ubiquitous US ground network, which was built more than 90 years ago and is six times bigger than that of FedEx s. UPS ca n reach virtually every address in the U.S. In addition, UPS figured out how to under-take quick mid-distance deliveries - as far as 500 miles in one night - b y truck, which is much less expensive than by air. One should also consider that
UPS has much better operating margins in air deliveries than FedEx. Therefore, is it absolute feasible to gain market share in the overnight (express) segment
. To push this idea UPS should establish an alliance with Wal-Mart in order to s et up Drop Boxes in their stores, offer night and Saturday delivery, corporate r ates, coupon for frequent household users, and implement appropriate media adver tisement according to the target