It has a well-established website and mobile application which makes consumer accessibility easier and tie-up with various payment services makes payment convenient. United Parcel Service currently owns 200+ aircrafts. The main source of transport is still the in-house large fleet of cargo airlines which aids its worldwide package deliveries. In the ground services it has also tied up with various railroad companies for cargo transport. UPS has also got tractor trailers which handle the ground delivery services in the domestic region. The delivery is done by 100,000 package cars for its domestic delivery services which carry out door to door delivery services. United Parcel Service also has 35 million square feet of warehousing facilities which aid the logistics services. There are more than 950 field stock locations and 5 central stock locations spread across 120 countries which handle inventory, packaging, shipping and other critical order fulfilment. UPS has a very wide global distribution coverage in over 220 countries. Also read United Parcel Service (UPS) SWOT Analysis, STP & Competitors United Parcel Service (UPS) Place & Distribution Strategy:įollowing is the distribution strategy in the United Parcel Service (UPS) marketing mix: ![]() ![]() United Parcel Service (UPS) Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. It also has customs duty and other clearance charges options. The price has base rate which has season surcharge, security fee and other handling charges. The freight services of United Parcel Service is the bulk services in which a higher quantity has to be transported. The international packages on top of the above charges has premium price and depends on the region it is being shipped to. A typical 2 pound Express small parcel will cost approximately $25 for three day delivery. The rate also includes fuel surcharges and other handling charges. The pricing policy in its marketing mix for the packages vary on the distance of transportation, time of delivery, dimension of the product, weight of the product, value of the product and other value added services. UPS follows a competitive pricing strategy as there are many competitors. United Parcel Service (UPS) Price/Pricing Strategy:īelow is the pricing strategy in United Parcel Service (UPS) marketing strategy: It also has another arm UPS Capital which provides financial services related to the supply chains it is handling.Īpart from all the major services United Parcel Service provides value added services such as door to door delivery services, pick-up services, online package tracking, electronic billing, technical support, and other shipping solutions for small businesses. United Parcel Service also has other services such as freight forwarding, truckload freight brokerage, logistics and distribution services, customs brokerage services. The Freight services of UPS have services such as Air Freight, Freight, Less-than-truckload shipment services which again differ majorly by the load of the delivery and also delivery duration. In the international segment that are Express Critical, Express Plus, Express and Express Saver, Standard, Expedited which are different products based on the basis of urgency of delivering the packages and weight of the packages. ![]() UPS also has another economical option for lightweight mails by ground. Further the delivery period can be chosen from either of same day, next day, two day and three day options. These packages are money-back guaranteed. In the domestic segment it provides time bound delivery services. The Global Small Package delivery services of United Parcel Service are further divided into US domestic package delivery and International package delivery services. The UPS products and services in its marketing mix are divided majorly into Global Small Package delivery services and Supply Chain & Freight services. UPS aims at providing focused services which are present in various segments such as consumer services, industrial manufacturing, professional services, healthcare, retail and even aerospace. United Parcel Service or UPS is one of the world’s leading courier, freight and logistics company. ![]() The product strategy and mix in United Parcel Service (UPS) marketing strategy can be explained as follows: United Parcel Service (UPS) Product Strategy:
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