United Parcel Service And Service Marketing Business Essay

United Parcel Service And Service Marketing Business EssayServices argon economic activities that create and deliver great value to the consumer. It is an act that helps consumers to get things do without having to go do it themselves, and the consumers have to pay for it. Services, which can surprise a client on the first deliin truth, always win over with high reputation and excellence or pass with flying colours. This report is on the serve offered by UPS, mainly focusing on their recollect centre.UPS was found in 1907 by two mint Jim Casey Claude Ryan who were teenagers at the eon, also known as the American Messenger fraternity, whose messengers delivered packages, and carried notes, baggage and trays of food from restaurants. Most of the deli genuinely was made either on foot or, and bicycles for longer journeys. At the cartridge holder, save a few automobiles were in existence and department stores of the day still used horses and wagons for merchandise delivery. The company was soon started delivering teentsy parcels for local department stores and changed its name from American Messenger Company to Merchants Parcel Delivery. The company expanded outside Seattle (USA) in 1919 with the acquisition of Oakland (USA) based Motor Parcel Delivery and was renamed United Parcel Service in 1930. UPS began the physical butt against of expanding its services by acquiring common carrier rights for the entire country this took place in the 1950s.Over the past century, UPS has transformed drastic each(prenominal)y, growing from a small messenger company to a leading provider of air, ocean, ground, and electronic services. In 2003, the company introduced a brand impertinent mark and acronym UPS showing the world that its capabilities take place beyond small package delivery but rather has a broad line of services. However, the company avows its reputation for integrity, reliability, employee ownership, and customer service. For UPS, the future holds eve n greater goals to be earnd and accomplished.The UPS CultureAs a company, UPS focuses its attention onSafety The company spends $38 million a year on safety training, which covers everything from befitting body mechanics at work to proper nutrition and exercise at home. As a result, UPS has lowered the number of workdays lost due to taint by more than 50 percent since 1995.Employee education Many UPS employees at Worldport and other sorting locations are college students. UPS encourages mentors and recruiters from nearby colleges to visit and work with its employees, and it provides additional benefits and perks for college students. alteration Minorities make up 35 percent of UPS U.S. employees and 30 percent of its executives. Its also recognized by Fortune magazine as one of the 50 scoop out companies for minoritiesThe Environment Delivering packages all over the world and moving them between distribution centers requires an enormous meter of fuel. UPS uses several methods t o reduce its fuel consumption and its environmental impact. For example, it has highly-developed a hydraulic hybrid package car, and its drivers use route- planning software to minimize the amount of time they spend idling in traffic and fashioning left field turns. UPS pilots also fly at the most fuel-efficient speeds possible to meet their delivery deadlines and run only one engine when taxiing to conserve fuel.Current trends in the manufactureAccording to Miss Tanya Astley, customer Representative Officer in the UPS there are no such trends in the company, only the way things are done keep changing, on busy days, like, on festivals and important occasions.ENVIRONMENTAL ANALYSISSWOT ANALYSISStrengthsGlobal Brand,Strong Distribution NetworkWeaknessesPerception of underseal Delivery instead of OvernightHeavy Union presenceOpportunitiesExpansion of online shoppingEmergence of international middle classThreatsIncreasing Fuel make upCompetitive Landscape (DHL, USPS, caterEx), pot entially slowing global economy.Now to use strengths to capitalize on opportunities, I would say leverage the brand online by partnering with major shopping sites.To addresses weaknesses to alleviate threats, I would say heavily market overnight capabilities to keep FedEx and DHL at bay.3. Major competitorsFedexDHLSpeedexAramexTHE SERVICE OFFERINGDe endpointining customer requirementsthither is no particular way of measuring the customer requirements in the type of service done by UPS, but they tend to attract new customer by with(predicate) marketing and telesales. Customer loyalty is held high in UPS.StrategyThere are a lot of different factors to condition Competitive favour in the Air Express Industry. The different strategies of the companies based on their core product which they are better in than other companies hence makes all the difference.When a business provides an excellent service to its customers, it gives them a positive service experience which leads to repeat purchases or usage of that specific service. As well as transitory on the experience to family and friends this helps UPS build a stronger relationship with their customers. UPS believes that by achieving effective customer service they pass on hence achieve a competitive favor in the market.UPS uses a differentiation strategy it does this by creating something intimately its product or service that is apprehendd as unique in the labor. Customers must perceive the service as a unique one compared to the competition. UPS should be aware that its customers must be relatively price insensitive as adding this additional uniqueness to its services as additional costDifferentiation may be attained through many features that make the product or service egress unique. Possible strategies for achieving differentiation may includewarrantiesbrand imagetechnologyfeaturesservicequality/valuedealer networkEconomies of scale, such as, lower costs and product differentiation were also prim e sources of achieving a competitive advantage in this industry, which were used by UPS to its advantage. This helped UPS to gain a much larger interior(prenominal) market share three times that of United States postal and twice of Fed Ex, UPS was very cost effective at the time and had a very good reputation in the market. It was only a matter of time when UPS complete that they were not doing as well as they did before and also realized that any competitor could do the same in circumstances of achieving economies of scale.UPS has been the market leader in this division for a long time. UPS as sited in our see has always been the leader in market pricing trends. Always the first to charge premiums, and the first to give discounts to the customers. UPS strategy has always been quite different from that of Fed Ex, Aramax or even DHL. UPS is very profitable, well organized, successfully run, has low debt, and a massive ground operation that can financially support a downswing in ai r express operations. Because of their size and financial strength UPS is in the best position to survive a price war in the industry.The media strategyThe usage of an appropriate advertising media, such as, television, press, radio, internet and key broadcast channels, leading titles and publications and strategic outdoor sites can be very influential in helping us to achieve our campaign objectives.The following media imperatives have been set for the regionTelevision is the key broadcast medium to drive awareness of the new UPS brand identity and offering.Radio will be used as a lead (where budgets dont allow for TV) or support medium, reinforcing primary messages and cultivating top-of-mind awareness.Outdoor will be used to communicate the primary message, ensure new logo exposure and in smaller countries, as a substitute for broadcast media. sign up will be used to support the TV creative or stand alone, allowing more opportunity to explain the UPS strategy furtherHigh bring in media will be used at the launch, covering all audiences, followed by one or two lower bursts ensuring longevity of the new brand message.To build customer relationship, the organization couldKeep in touch with the customer by sending emails with the offers and rates.Get regular feedback from customer who have used the service and amend with their suggestions, to make the customer feel like the king.DEMAND AND CAPACITY1. Demand cannot be forecasted in this industry. The company can only take the initiative to maintain current sales and hope increase sales in the future by marketing.2. An increase in demand will lead to more people being employed either part time or full time depending on the tasks that need to be performed. Another important thing infallible is the service vehicles, with the increased demand.3. Customers dont have to go through the hassle of waiting in lines for their doubts to be clarified. All the customer has to do is call, which gets routed to various agen ts in the call centre, to answer any queries or solve any issues.SPECULATION1).Opportunities appear to be available in the industry currently the margin for opportunities seems to be very narrow. But strategies could be altered according to the consumer needs. For example, some consumers emphasize on price and the others on the service time taken no matter what the price.Recently, UPS is planning to set up a domestic postal service in China. They plan to introduce a next day delivery service and irregular and third day delivery products. China is a potential for UPS to grow and offer services and products internationally and this it seems China is an emerging market which could be value billions.2. Technological advancesIn todays day and age the air express industry has become so technologically advanced that goods can be delivered overnight. It is facing acuate price competition between the competitors, which exist in this market. The ability to price, route, track and deliver parcels and mail in both domestic and international markets demands a comprehensive. A significant improvement in information technology has enabled package carriers to provide to customers the ability to track their packages movement from origin to destination. Other advances included combining logistics, burden and financial services with traditional package delivery in rove to offer customers full supply train management solutions. Only the organizations that were able to achieve these effectively and efficiently were able to survive in this industry. This is how the existing companies could then make their profit.In this industry the price of the service is the main source for competing. This is the only way in achieving Competitive Success. Competitive advantage can be achieved if, the price of the service provided by competitors is similar and the approach taken to provide the service. For instance, the amount of time taken for the product to reach from point A to point B.3 . Advice to other firms who plan to enter the industryOur advice to the new firms which plan to enter this industry would be to, research the market and the industry and think about strategies that provide the new firm a big competitive advantage including low cost of service and low price charged to the customers. The relationship between the firm and the customers should be healthy. The company should be knowledgeable about everything and should see to it that they have all the information necessary.Customer Relationship ManagementCustomers account for 95% of UPSs shipping information directly. The CRM methodology is a very core part of the UPS success story. UPS grows through engineering and re-engineering of its systems. UPSs growth was achieved slowly and methodically from the inside out. An Excellent service is what distinguishes it from other companies.Companies can use and integrate UPS Worldship hence optimizing their business processes. They can process shipments easily, r espond to your customers faster, and reduce costly errors.UPSprovides businesses withmultiple ways to integrate WorldShip with their businessBatch Import/Export Import a file containing addresses, customer orders, or other shipment information, or export shipping history to your internal systems.Keyed ImportAllow WorldShip to recognize a customers order simply by entering or scanning a unique identifier, such as a Purchase Order number.Hands-Off ShippingSchedule WorldShip to pull addresses from your order entry database and automatically print shipping labels at designated times.XML Auto-ImportAutomate shipment processing using XML code.LOGISTICSLogistics is about getting things where they need to be, at the correct time as effectively and efficiently as possible. But nowadays, logistics is also a strategic way to add value to your business, better served customers, and better long term growth.The logistics provided by UPS can help you manoeuvre the intricacies of global trade with minimal effort. Manage your shipments and minimize their environmental impact. And win repeat and loyal customers by making it easy to return products or parts.The new logistics is more than just getting things to the right place at the right time at the right cost. Its about using the movement of goods as a competitive advantage. Its a whole new way of thinking. And its a powerful force for growing your business.Access to Resources through UPSBusinesses dont need a large warehouse, distribution center, or global network to access this new logistics. UPS has built a massive integrated network of physical, technological, and human beings assets that lets youtap into the power and passion of logistics.The new logistics from UPS levels playing fields. It lets you act locally or globally. Its for the individual entrepreneur, the small business, or the large company. Its reliable, efficient, and environmentally responsible.Long term growth in the telecommunicationUPS needs to learn from other industry best practices to gain a competitive edge in and expand beyond their core markets. An increasing number of companies have redefined themselves and significantly outperformed the markets by growth through services. UPS Moved from traditional parcel services to total supply chain solutions.UPS can better differentiate themselves via services by extending relationship with existing customer base leveraging.Superior customer knowledge as key asset.Customer proximity and delivery competence.In addition, developing the necessary skills and scale by new service-specific processes being developed and service innovations to ensure fast scalability of process and time to market.UPSs evolution to Total Supply Chain Solutions started as-Standalone development of small service operations within the organizationWorldwide Logistics unitService part LogisticsWorldwide dedicated ServicesUPS Truck LeasingUPS consultingThis moved on to-Expansion of product portfolio and consolidation of existing services resources into UPS Supply Chain Solutions.And finally reorganization and major MA effort with 16 key acquisitions to develop scale and growth.