FedEx and UPS Competitive Analysis

Fed Ex and UPS are competing to ship people’s packages, especially businesses whose higher volume will create a higher profit. As brands, the companies have had to differentiate themselves through their advertising to try to reach the target market.

UPS’s current marketing strategy hinges on the whiteboard sketches of Andy Azula, a creative director from the Martin agency in Richmond, Va. Azula is a laid back man whose freelance sketches transform along with the story he is telling the viewer about the benefits of using UPS. To view all the UPS ads click here http://www.pressroom.ups.com/multimedia/av/advertising/0,1405,,00.html. The ads are a departure from other shipping companies’ ads, such as FedEx, whose ads focus on busy business people in need of shipping aid. The UPS ads are soothing in their delivery and they convey a sense of calm. The story telling aspect makes it seem more like information versus just a tagline or scripted ad. The drawings are always developing from one thing to the next so they entice the reader to watch to see how the drawing will end. The ads are looking to appeal to the business person who needs help not more hectic advertising clutter to sort through. The ads are such a departure from other ads that UPS has set themselves into a niche that they will help the customer without being a jarring presence in their day-to-day business routine. The campaign has changed the personality of the UPS brand. The brand was becoming stale and distant from younger business people; however “what can brown do for you” can now be visualized as a benefit to be attained.

FedEx’s “Relax, it’s FedEx" campaign has some humor and unexpected twists. Although still in an office setting the ads show the benefits the company will get from the money they save by using FedEx over UPS. In one spot the workers have purchased massage chairs with the money they saved by reducing their overhead costs. To see the FedEx ads click here http://fedexads.designcdt.com/. The FedEx ads are made to appeal to the business person who needs a break in their day. The FedEx ads are comical and set to show how things at work should be taken lighter. FedEx wants consumers to believe they can relieve some of the burdens at work by taking away some of the grunt work.

The different ad campaigns set the two companies apart. UPS and FedEx are the market leaders in shipping in America. Recently, even DHL announced that it was shutting down its operations in America because the competition between FedEx, UPS, and the United States Postal Service is so fierce. However, the new campaigns may be causing a role reversal for UPS and FedEx. FedEx was a newer company that made a fresh impact on the shipping industry when it began and UPS was the stodgy old-faithful. Now, UPS has been able to reposition themselves as a company that is more in tune with the target market. Busy business people do not want a dog and pony show (or in the case of FedEx birds flying out of an overgrown beard). They want something that stands out from the barrage of information overload that they are subjected to and right now UPS has been more successful at that than FedEx.

Competitive Analysis: Kraft & Duke's mayonnaise

Kraft Mayonnaise and Duke’s Mayonnaise offer the same consumer good. They target mayonnaise users; however, the two companies are clearly varied in their positions.

Duke’s mayonnaise’s brand is southern based on the region in which it is sold. They tout the fact that they have been around since 1917. Duke’s mayonnaise is slightly richer then Kraft mayonnaise because it is made with more eggs. Duke’s recently went through a repositioning effort to address the fact that they are not used as a condiment as much as other mayonnaise brands because of the richness of the flavor. Duke’s has positioned itself as an ingredient. Instead of competing with Kraft head to head, Duke’s realized they had a unique position. Kraft holds a large portion of the mayonnaise market for use as a condiment. Duke’s is circumventing that competition by telling their consumers that Duke’s is an ingredient. Duke’s is now telling consumers to use Duke’s in their potato salad, or in their chocolate cakes, or their deviled eggs, whereas before their message was that Duke’s was an optimal sandwich topper. Duke’s consumers may even have two jars of mayonnaise in their home. Kraft for sandwiches and Duke’s for baking. Duke’s may be a little too rich for the average mayonnaise consumer, but people want a richer flavor for the items they use mayonnaise as an ingredient in.

Kraft mayonnaise is a more stylish mayonnaise. It is more well-known than Duke’s and is offered nationally, whereas Duke’s is only available in certain regions. The label shows fresh lettuce, tomato and onion invoking images of a nice cold cut sandwich in the mind of the consumer. They are the sandwich mayonnaise. Recently Kraft advertising has focused on the brand versus the individual products. Kraft ran ads to “Kraft your summer” stressing the memory of the brand since they have been leaders in the market. Kraft also ran an ad for their newest version of mayonnaise, one that is made with olive oil instead of vegetable oil. The ad showed women dancing around a house utilizing the mayonnaise. One woman made a tomato sandwich slathered with mayonnaise. Kraft is made for sandwiches. The strategic advantage they have over Duke’s is that they are market leaders, they already have top of mind recognition with consumers who are looking for a sandwich condiment and they are beginning to offer healthier alternatives to basic mayonnaise.

Both companies offer the exact same thing: egg yolks, oil, vinegar and some spices for flavoring, but they have a huge variance in the way they market their brands. Duke’s has avoided competing directly with Kraft as a sandwich condiment. Duke’s could not compete with the mammoth market leaders, but by creating its own position in the mayonnaise market they have been able to remain profitable. Kraft is one of the mammoth market leaders and they have been for a while so clearly being the sandwich mayonnaise is the right position for them and they do not need to address different ways of using mayonnaise, such as an ingredient.