United Parcel Services of America
Headquarters: Atlanta Brand established: 1919 2005 advertising: $192.8 million 2006 Interbrand/BusinessWeek ranking: No. 32 Brand value: $17 billion CoreBrand ranking: 15
STRENGTHS: Gregory: Like two great fighters, it is fascinating to watch the brand battle between FedEx and UPS. Brand Power for UPS has grown from 76.4 in 2003 to 82.9 in 2006. The UPS brand equity has grown from 19.00% in 2003 to 19.54% in 2006. Ries: UPS is the dominant package delivery carrier. With more and more business being done over the Internet, the long-term prognosis for the company is highly favorable. CHALLENGES Roth: The Mailboxes Etc. acquisition has helped establish a retail presence, but UPS has been slow to effect the transition, and the location branding seems to lack the presence of its FedEx Kinko’s rival. Ries: The company’s biggest problems might be internal. If its drivers go on strike, the company’s reputation would be seriously endangered.
The image, part of UPS' "Fast Lane" and "Expanded Early A.M." branding campaigns that debuted earlier this year, is accompanied by the tagline: "UPS. Covering more ground faster than ever." Online ads are running on several Web sites, including AOL small business, CNN.com, foxsports.com, Newsweek.com small business and yahoo.com small business.
A TV spot from the campaign, titled "Rain," is shot from a UPS truck driver's point of view as he seemingly arrives in the Pacific Northwest from Texas in the blink of an eye.
"For some [small and midsize businesses] in the service industry, a deadline is a deadline, and packages have to be delivered first thing in the morning," said Larry Bloomenkranz, VP-brand management, advertising and sponsorships for UPS. "We need to make our services relevant for the SMB and midsize companies and let them know that the brand can do more and more for them."
Earlier this year, UPS accelerated the movement of packages in its U.S. ground network—cutting at least one day off the transit time for more than 500,000 packages every day. The ground improvements came just months after similar enhancements to UPS' air network.
The addition of UPS Freight Less-Than-Truckload and Truckload enhanced the company's ability move goods of all sizes through customers' supply chains.
Bloomenkranz said the new services will resonate with the SMB and SOHO markets. "The freight services will help companies conducting targeted b-to-b transactions," he said.
The new campaigns build on the "What Can Brown Do for You?" rebranding effort that kicked off in 2002. The company has also spent the last few years rebranding all its Mail Boxes Etc. locations into nearly 4,000 UPS Stores.
"The SMB market has all kinds of business needs, and the "Brown" campaign has smartly established a brand platform for UPS that goes beyond the expedited delivery category," said Beth Zimmerman, a principal with Cerebellas, a strategic planning and marketing firm.