United parcel service, Inc (UPS) and FedEx Corp. (FDX) are the two giants in global carrier delivery services. In 2018 UPS reported earnings of 71.9 billion while FedEx trailed at 65.5 billion, making UPS the top dog. (Tamang, P. 2019).
The top dog UPS uses a branding strategy that starts with their signature dark brown trucks with gold lettering. They are known for domestic ground package delivery which is their main market strategy and the biggest source of revenue for the company. Their brand strategy also includes subsidiaries such as UPS express critical, UPS Airlines, and UPS freight. (WEI, J. 2020). They also use a strategy that consists of offering flat rate shipping and free pickup services. There underdog FedEx has similar brand strategies which also starts with their signature white trucks with blue and red lettering. FedEx is known for its global air Time-sensitive international express freight. (WEI, J. 2020). They also use a marketing strategy that offers ground package delivery like it’s rival UPS, with subsidiaries that include FedEx office, FedEx customer critical, and FedEx supply chain. (WEI, J. 2020). One of their biggest branding strategies is to offer same-day-delivery two individuals and businesses They also are well known for using a brand strategy that includes funny TV commercials that can be seen throughout the year.
FedEx is considered the underdog when compared to UPS, but similar in nature and can improve its market share by increasing its small package delivery service, continue to challenge customers by offering customers the cheapest and fastest delivery services, and investing more into their e-commerce development and digital technology for business innovation. (Tamang, P. 2019).
When it comes to UPS versus FedEx, customers prefer UPS for several factors such as UPS has a larger ground presence with over 21 million packages delivered each year and their vehicles are well known for that brown signature look throughout many neighborhoods in the country while making package deliveries. Customers also prefer UPS for their cheaper ground package delivery and safe/ secure delivery personnel. As a former part-time employee of UPS, I prefer them because of their business model, on-time performance, and professionalism when it comes to handling your packages. (WEI, J. 2020).
References
Kardes, F., Cronley, M., & Cline, T. (2012). Consumer behavior (2nd ed.). Boston, MA:Cengage Learning.
https://mbsdirect.vitalsource.com/#/books/9781305161689/
Tamang, P. (2019, December 6). FedEx vs. UPS vs. USPS: Price, Features, & What’s Best in 2019.
https://blog.capterra.com/ups-vs-FedEx-who-ship-more/
WEI, J. (2020, January 15). UPS vs. FedEx: What’s the Difference?
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