#Marketing Mix of United Parcel Service 7Cs
UPS or United Parcel Service was founded in the year 1907. The brand had very humble beginning as a bicycle messenger service that has grown into largest delivery network. It is now a large and global business that is operational across more than 220 countries. UPS has brought a diverse range of services for its customers which include individuals as well as small and big businesses. It is also a trusted supply chain partner for businesses all around the world. Each business day UPS makes deliveries for around 1.5 million customers around the world. In 2017, UPS delivered around 5.1 Billion packages. In the recent years, it has focused on making its logistics network stronger. Revenue of the brand has increased to 65 Billion dollars in 2017. Despite all the wins that UPS has registered globally, the brand remains committed to customer service and innovation for growth. It is known for strong brand equity and great relationships with its customers. UPS is known as a reliable brand that millions of customers around the world trust. It has a large network of logistics services to make deliveries around the world. Read in this article about its marketing through an analysis of its marketing mix. Since UPS is a service provider, it has 7P’s in its marketing mix.
UPS is a global brand of delivery services that has brought a diverse range of services for various customer segments. A large variety of services caters to the needs of diverse segments of customers. UPS has brought diverse options for its customers to meet several types of their needs. Apart from package delivery, the brand also caters to various other types of needs of its customers. It has brought a large range of supply chain solutions for its business customers. these supply chain solutions include – freight forwarding, truckload brokerage, customs brokerage, order fulfilment and returns management. Its business is divided into US Domestic Package, International Package and supply chain and freight. The US domestic package is the largest revenue earner for the brand.
UPS serves customers across 220 nations. US is the main market for the brand which accounts for the largest part of the brand’s revenue. The brand has maintained a global presence from North America, Europe, Middle East, Africa, Asia Pacific and Latin America. On each business day, UPS delivers packages from 1.5 million shipping customers to 9.0 million receivers. The brand has got 2500 operating facilities worldwide.
UPS follows a pricing strategy to retain its competitive position in the package delivery industry. The pricing strategy for domestic and international shipments is based on the billable weight of a shipment. UPS determines the charge for a shipment by comparing the actual weight with the dimensional weight of the shipment and whichever is higher is considered the billable weight. While actual weight is the weight rounded to the next pound, the dimensional weight reflects the density of the package.
Increased competition in the parcel industry has led to higher focus on marketing and promotions. UPS also focuses a lot on the promotion and marketing of its products and services. To grow its brand recognition, it runs marketing campaigns from time to time. These campaigns are targeted at promoting the brand as well as building a reliable image and goodwill. Videos are a major part of its marketing strategy and campaigns. One of them is the famous United Problem Solvers campaign that aimed at highlighting UPS’s unique capabilities in solving problems for customers including small and big enterprises. While this campaign promoted UPS’ innovative problem solving capabilities, it mainly targeted the Asian businesses targeting fresh growth opportunities.
UPS is now a 454,000 strong company with a strong record in terms of ethics and service quality. The company notes that its people are its main strength. 374000 of its employees are posted in US whereas 80,000 are located internationally. It has got a large and global team of dedicated employees. It attributes the dedication of its employees to the distinctive employee owner culture it has established. The brand maintains several stock based compensation programs to encourage stock ownership among its employees. Employee compensation and benefits are a very large part of its operating expenses.
UPS has a global network that offers its customers more than 150000 entry points for its customers to tender a package at a location or time that is convenient for them. Apart from UPS drivers who collect packages, UPS Drop boxes, UPS Access point locations The UPS Store locations, authorized shipping outlets and commercial counters, alliance locations and customer centers attached to UPS facilities are also a part of this network. Some of these locations are equipped to provide a full array of services, including pickup, delivery and packing options, while others are drop-off locations only.
UPS is headquartered at Atlanta, Georgia and UPS supply chain solutions is headquartered at Alpharetta, Georgia. The brand also operates a global ground fleet of around 119,000 package cars, vans, tractors and motorcycles.
UPS Annual Report 2017