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Union Pacific

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by

Kevin Checinski

on 3 December 2014

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Transcript of Union Pacific

Company Description
Union Pacific is...
An organization with exceptional customer intimacy that continues to build a more connected America
North America's premier railroad franchise
Headquarters located in Omaha, Nebraska
Railroad system covers over 23 western states
31,000 miles of rail track
8,300 locomotives
Abraham Lincoln signed the Pacific Railroad Act that directed Union Pacific to begin building
Founded over 150 years ago
Union Pacific Company Overview

Vision:
Building America.
"The importance of UP’s rail transportation to America's economy, honors the generations that preceded us and is the promise for the generations that will follow us.."

Mission:
The Men and Women of Union Pacific Are Dedicated to Serve
. "Union Pacific works for the good of our customers, our shareholders and one another."

Values:
Focus on Performance
Ensure High Ethical Standards
Work as a Team


Union Pacific's Strategic Direction
Premiere Railroad Franchise
Continue performing with excellence as a top competitor in railroad industry in the United States

Innovation
Invested more than $21.6 billion in its network and operations to support America's transportation infrastructure.

Global Leader
International leader by acting as the only railroad serving all six major Mexico gateways.
Dominate Strategy
Customer Intimacy
Mission statement declares that their primary focus is on their customers and stakeholders

Cost Competitive
Having efficient means of transportation by rail at a low cost give them a competitive advantage

Differentiation
Union Pacific is able to transport products across many different industries while having an environmentally friendly service and a railroad system that spans many states
Union Pacific's Internet Innovation
E-Commerce
Union Pacific provides internal procurement through dynamic pricing, versatile auctioning, strategic sourcing and electronic procurement capabilities through innovative specialized software
Introduction of Big Data
Collects Data to increase efficiency in the organization
For example, the collected data will reduce derailment by 80%

Social Media
Stays relevant on all social media sites through the services provided by Ignite Social Media Agency
Facebook, Google +, Instagram, Twitter, LinkedIn, and YouTube
Satisfaction and Loyalty
Marketing Strategy
Undifferentiated Market
Main focus on Agricultural products, Automotive, Chemicals, Coal, Industrial products, Intermodal, and Mexico markets.
Other industries are able to use their services as well
They have the flexibility to transport products from many industries
Union Pacific

By: Kevin Checinski (A46708150), Chris Liepa (A45978422), Julie Piccone (A46108422), Christen Yuan (A45470860), Norman Braddock (A46912610)
Values
Focus on performance
Ensure high ethical standards
Work as a team
Forces Driving Industry Competition
Spartan Consulting
Competition
Burlington Northern Santa Fe
Norfolk Southern Corporation
CSX Corporation
Canadian National Railway
Suppliers
Potential Entrants
Barriers to Entry

Establishing a new railroad requires a large amount of capital investments
This results in a low threat of new entrants and competition in the industry
Mergers between existing companies are more of a threat than the creation of a new class one railroad company

Intermediaries and Buyers
Logistic Companies that buy the use of the rail road tracks
Distribution centers where products are held until they arrive at their final destination
Substitutes
Union Pacific focuses on
:
employee satisfaction
forming balanced teams to accommodate each segment of business
creating the safest railroad by being environmentally friendly
listening to the customers needs and wants

Customer Satisfaction
The current satisfaction score is 94%, the highest rated railroad company in the U.S.
Brand Awareness
- Best recognized for their exceptional safety precautions for the public as well as their services
Perceived Quality
- environmental consciousness including Optimization Waste management campaign. "Reduce, Reuse, Recycle"
Brand Associations
- Union Pacific continues to provide the most valuable information to their consumers for their purchasing decisions. They make organizations look better.
Brand Equity
Goods and Services Continuum
Union Pacific's organization focuses on Services with Goods, primarily with Experience Qualities.
Consumers are able to evaluate
Delays
Wait-times
Unharmed Products
Good Communications
Customers can give feedback to their experience
Union Pacific focuses on listening to their customers needs and wants to improve their services
Product Planning/ Innovation Strategy
Product development
- they continue to improve their services and add new services when necessary.
For example, for transporting agricultural products...
Grain products - Grain Car allocation system, Plant-to-Port
Food and Refrigerated products - Refrigerated containers, express lane, and produce rail express

Continuous Innovation
- updating tracking software as well as the company website

Dynamically Continuous Innovation
- Inter modal-Service, refrigeration, and new tracking software

Discontinuous Innovation
- Waterway Transportation, International services for example in Mexico, and the introduction of Big Data
Integrated Marketing Communication
Mass Communication
Public Relations
Lobbying from Federal and State Level
Many Positions with Government affairs
Not-for-profit organizations

Advertising
Building America Campaign
National advertising campaign to illustrate Company's Door-to-Door shipping logistics expertise





Most Valid Media Options
Newspapers
Television
Magazines
Internet
Outdoor Ads
Internet
Personal Selling
Union Pacific focuses on providing valuable information to each unique customer to enhance their service experience and to further build stronger customer relationships.

Representatives assist customers with determining which services/ containers are most necessary
build customer relationship by responding as quickly as possible to feedback



Direct and Missionary Sales
Direct Sales
- sales calls to potential customers
Missionary Sales
- potential customers do not necessarily make an order but can influence a potential order in the future.
Price Sensitivity

Union Pacific has a high price sensitivity

Differentiation and Price Competition
Many competitors in our industry.
We compete with other transportation industries, such as trucking, long with other railway companies.
Customer Value Propositions
Product Leadership
- transport anywhere in the country
Operational Excellence
- one time delivery, customer service
Customer Intimacy
- maintaining relationships with company socials
Competitive Factors
Price
Transit Time
Safety
Service Reliability
Railroad companies only rely on a
few suppliers due to supplier consolidation in the industry
This provides suppliers with negotiation power

Union Pacific Equipment Suppliers
One domestically located
One internationally located
Pricing Strategies
Fuel Surcharges
- Union Pacific can ease the pricing on fuel surcharge to gain a comparative advantage on our competitors.
Examples
Fuel, Equipment, Mechanical
Roles and Responsibilities of Salespeople
Shanker Chalekode: Business Director of Marketing and Sales

Question 1:
Is there any improvement you can make in social media?
Shanker's Key Points:
Our customer base is not very influential in social media. Majority of the people recognize our brand. We just have a social media to stay current.

Question 2:
Is Keystone pipeline a potential threat to Union Pacific?
Shanker's Key Points:
Many people think that it will be a threat to our company, but I view it as a opportunity. To get the pipes and tools required for the development of the keystone project, they will need rail to transport it.

Question 3:
What is your role in gaining potential new customers for Union Pacific?
Shanker's Key Points:
Sometimes it requires myself to step outside the box and question, " Why can't we transport that on our rail?" I do have to reach out and make contacts with companies to see if they will consider Union Pacific for.
Trucking -
The greatest threat of substitution since transporting through road can reach anywhere in the country at a reasonable cost

Beth Franksman: Senior Business Director
Question 1:
How do you feel Union Pacific differentiates themselves on a marketing standpoint compared to their competitors?
Beth's Key Points:
They were fortunate enough to receive the fortune most respected transportation reward. The attitude at Union Pacific is to satisfy the customer and work with them. We focus on listening to our clients needs and wants to continually improve our services. Through this customer based focus, Union pacific was able to attain the highest customer satisfaction rate in transportation.

Question 2:
What areas do you think Union Pacific needs to improve on to stay competitive in the Railroad industry?
Beth's Key Points:
No matter how respected Union Pacific is, we continue to improve our services. For example, we try to be more responsive to requests and reply as quickly and effectively. Union pacific has contracted prices and customers discover this information as soon as possible.

Question 3:
Could you explain your role with the Union Pacific's marketing department?
Beth's Key Points:
I focus mostly on sales, but many people people have roles in both marketing and sales. My largest clients are in the automotive industry including both Chrysler and Ford. I am responsible for the customer relationships with these companies.

Question 4:
How does Union Pacific make sure they reach all areas of their diversified mix of commodities
Beth's Key Points:
To address all of these commodities we have developed a new advertising campaign that splits the commodities into six main business tiers including Intermodal, Agriculture, Chemicals, Automotive, Coal, and Industrial Products.
Air
- This substitute can transport items
very quickly, but are very expensive. Most
companies only use air for expedited needs
Water
- This is a good alternative to ship
high volumes internationally however destination of ports are limited
Intermediaries
Buyers
Buyers don't have the power to barter
due to the limited number of railroads
per region
However, railroads do need to be priced competitively so they don't lose business to their competitive substitutes
Union Pacific
Will Continue to Build America
Full transcript