Fred cuts marketing by 25%

[UpstateNYUPSer(Ret)]

There are few business that have succeeded without any marketing. One of which is Starbucks. Sure it worked for a while, but now that McDonald's have introduced the McCafe and advertises for it, Starbucks as a business has suffered greatly. Trust me I know as I am a stockholder.

Starbucks has been in decline because consumers are deciding for themselves that $4 is too much to pay for a cup of coffee. I am by no means saying that the coffee served at Mickey D's is comparable to that served at Starbucks but I will take my $1.61 medium coffee at Dunkin Donuts any day over Starbucks.

I am a Sirius satellite radio stockholder so I understand your pain. Sirius does a lot of marketing but, much the same as Starbucks, consumers are having a hard time justifying paying for something that they can get for free.

Another poster said that shippers do not associate express service with UPS and that is true. That is called brand recognition and when you want to overnight something you FedEx it. When you want to make a copy you Xerox it and if you are thirsty for a soda you grab a Coke (and a smile). I don't think any amount of marketing can erase brand recognition completely--you can simply hope to gain market share.

K of C, I was just having some fun at your expense. You make some excellent points in your posts. Dave.

 

[Re-Raise]

Actually I was a business major in college and did take classes on marketing King. Advertising a new product or service to a demographic that you wish to use your product is of course a good investment.

I believe our company has only service to offer. I don't care how many race cars bear our logo, or how many sporting events have UPS in the title, if the service isn't there so what.

If UPS would put on enough routes to service our customers more consistently and without the pressure on the drivers to go faster..faster,it might make more difference than a commercial.

And I don't make purchases based on adds, I go with value.

 

[Catatonic]

Starbucks has been in decline because consumers are deciding for themselves that $4 is too much to pay for a cup of coffee.

I don't go to Starbucks often but I've never paid more than $1.69 for their "just coffee". I see a lot of those "sissy" drinks for $3.50 - $4 but not normal coffee.
I did notice that I seem to be the only person ordering coffee...most of the other people were ordering the sissy stuff. Probably a much higher profit margin on the sissy stuff.

 

[kingOFchester]

Starbucks has been in decline because consumers are deciding for themselves that $4 is too much to pay for a cup of coffee. I am by no means saying that the coffee served at Mickey D's is comparable to that served at Starbucks but I will take my $1.61 medium coffee at Dunkin Donuts any day over Starbucks.

I am a Sirius satellite radio stockholder so I understand your pain. Sirius does a lot of marketing but, much the same as Starbucks, consumers are having a hard time justifying paying for something that they can get for free.

Another poster said that shippers do not associate express service with UPS and that is true. That is called brand recognition and when you want to overnight something you FedEx it. When you want to make a copy you Xerox it and if you are thirsty for a soda you grab a Coke (and a smile). I don't think any amount of marketing can erase brand recognition completely--you can simply hope to gain market share.

K of C, I was just having some fun at your expense. You make some excellent points in your posts. Dave.

Oh, and thank you and steve and a few others for your advice during peak. I had, and still have, a lot to learn about the whole UPS and Union.

 

[UpstateNYUPSer(Ret)]

And I don't make purchases based on adds, I go with value.

RR, this is how Wikipedia defines economic value:

Value is linked to http://en.wikipedia.org/wiki/Price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed: those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a certain amount of a good, so too does the seller reveal what it costs him to give up the good.

I also don't make purchases based on ads but instead purchase based upon value and past experience or perhaps the experiences of others. Marketing is simply one of the input variables that I use when gathering information prior to making a purchase.

 

[Big Babooba]

There was a time when this company's advertising was the Brown Truck and its driver - nothing more. There was a certain mystique about UPS in the eyes of the public. Is it true that your trucks are made in Europe? How do you like working for the government? Did you have to take a special test to get hired?(people assumed we were part of USPS). Is it true that they wash the trucks every night? Now we are in everybody's living room via the idiot box. Times have changed and we have to keep up with them. I would rather they spent their money washing the trucks like they used to.

 

[kingOFchester]

Actually I was a business major in college and did take classes on marketing King. Advertising a new product or service to a demographic that you wish to use your product is of course a good investment.

I believe our company has only service to offer. I don't care how many race cars bear our logo, or how many sporting events have UPS in the title, if the service isn't there so what.

If UPS would put on enough routes to service our customers more consistently and without the pressure on the drivers to go faster..faster,it might make more difference than a commercial.

And I don't make purchases based on adds, I go with value.

Absolutly. I am not a strong beliver in sponserships. Add a few routes. Slow the belt down a tad for the preloaders. Then advertise the fact that UPS has slowed the system down and increased service. Tug at the heart. Produce a marketing campaign around packages that have value(Whether that be an heirloom or a flat screen TV)
that UPS acknowledge's and takes pride in delivering timely and safely.

What I took from the FedEx cut news, is that I see an opportunity for UPS. I very well could be wrong, but I did think it was an interesting piece of news.

 

[trplnkl]

I may be mistaken but I don't think UPS is all that interested to get Joe 6 packs business, once a year. Sure we gladly except the business but our major focus is on the large accounts that ship hundreds to thousands of PKs per day. Joe 6 pack costs us money to deliver his Grandma's Christmas package.

 

[Catatonic]

I may be mistaken but I don't think UPS is all that interested to get Joe 6 packs business, once a year. Sure we gladly except the business but our major focus is on the large accounts that ship hundreds to thousands of PKs per day. Joe 6 pack costs us money to deliver his Grandma's Christmas package.

Have to challenge that one 555:
Joe SixPack pays Retail Rates or Full Daily Rates (or a small discount) and those resis have a $2.05 surcharge per package. We make much less profit per package for our largest shippers than we do for Joe SixPack.
Now if it is only for Christmas time, then you may have a point.

 

[Re-Raise]

Absolutly.

What I took from the FedEx cut news, is that I see an opportunity for UPS. I very well could be wrong, but I did think it was an interesting piece of news.

Tough economic times are alwys a great opportunity for strong companies to get stronger. It is also a time to make sure any investment of capital is warranted.

I have people all the time tell me they ask for UPS because of the service I and my fellow UPS employees provide them.

Talk is cheap in my book, DO IT WELL goes a lot further. I take advertising with a grain of salt.

 

[kingOFchester]

Have to challenge that one 555:
Joe SixPack pays Retail Rates or Full Daily Rates (or a small discount) and those resis have a $2.05 surcharge per package. We make much less profit per package for our largest shippers than we do for Joe SixPack.
Now if it is only for Christmas time, then you may have a point.

Ditto.

 

[Re-Raise]

Ditto.

Business to business is where the profit is.

 

[Catatonic]

Business to business is where the profit is.

TRUE...
90 million times a 4% profit margin
is more profitable than
10 million times a 7% profit margin.
but
That's where the "per package" part comes into play.

More, further, heavier is the mantra - same now as it was 20 years ago.

.

 

[upsgrunt]

what difference should that make to you

No more difference than what anyone else says on this forum that YOU respond to.

 

[Catatonic]

Quote:
Originally Posted by UpstateNYUPSer
what difference should that make to you

No more difference than what anyone else says on this forum that YOU respond to.

Oh, that's Upstate's haughty taughty ways... you know, he truly couldn't care less what you think or have to say.

But seriously, if you had taken the time to read the thread you would have seen that he was simply having some fun at K of C's expense, which K of C took with a sense of humor as it was intended.

 

[UpstateNYUPSer(Ret)]

No more difference than what anyone else says on this forum that YOU respond to.

If you had taken the time to read the thread you would have seen that I was simply having some fun at K of C's expense, which he took with a sense of humor as it was intended.

If you don't like what I have to say, ignore me--I truly couldn't care less what you think or have to say.

 

[upsgrunt]

If you had taken the time to read the thread you would have seen that I was simply having some fun at K of C's expense, which he took with a sense of humor as it was intended.

If you don't like what I have to say, ignore me--I truly couldn't care less what you think or have to say.

I posted my reply before you posted yours explaining your humor. My subscription to the psychic network has lapsed so I couldn't read your mind when I posted.
I am not bothered by the fact that you do not care what I think or say, as yours is the only real opinion that matters on here. It could be the fact that I'm in Hickville USA and you are in the land of truth and knowledge. Sometimes you have great posts, and I positive rep you, and sometimes I just shake my head. I don't claim to know much of anything and will be the first to admit when I'm wrong. If I see something I want to respond to I do.
One thing I do know is that you are no better than me or anyone else on here whether you want to believe it or not. Even though you don't care about my opinions or views, and it doesn't bother me, how many others on here do you feel the same about?
If it was just you and your cronies, it might get a little lonely or boring. I think I need a long break and give back to you what you truly think is "yours".
Steve

 

[Re-Raise]

It could be the fact that I'm in Hickville USA and you are in the land of truth and knowledge.

Does that mean I am just west of Hickville USA Steve?

 

[jnuts]

Actually, most districts LOOSE money during peak. I agree though with the "we value your service campaign" because slowing the blets and handling paxkages with greater care will have a huge LONG TERM impact.

 

[rod]

Actually, most districts LOOSE money during peak. quote]

I remember years ago when UPS tried to pass this B.S. off also In all reality have youe ever heard anyone in management say UPS made money?