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- 1. UP IMC 1 UNION PACIFIC CORPORATION UNION PACIFIC IMC CAMPAIGN Jessie Whitmore August 25th , 2021
- 2. UP IMC 2 UNION PACIFIC CORPORATION TABLE OF CONTENTS 1. UNION PACIFIC CORPORATION 1 IMC CAMPAIGN 1 2. Table of Contents 2 3. Executive Summary 3 4. Backgrounder 5 5. SWOT Analysis 7 6. Target Audience/ Potential Market 8 7. Customer Profile 10 8. Marketing Campaign Objectives and Strategies 11 9. Creative Strategy 12 10. Promotional Mix 15 11. Creative Execution 17 12. Conclusion 18 13. Reference List Page 19
- 3. UP IMC 3 UNION PACIFIC CORPORATION EXECUTIVE SUMMARY As a company that has been in business for over 125 years, Union Pacific knows how to run a business while still taking the best care of their customers. Working in any conditions to help companies to get their products to their customers. They do this efficiently and with a true love for what they do. Union Pacific also cares about helping their communities and helping these communities to grow and prosper. They are dedicated to staying on top of technological advances and takes opportunities to make their shipping and freight services more accessible and to continuously grow and evolve with the changing market. They also follow strict guidelines and support policies that make things safer and more efficient. Even in times of need, Union Pacific steps up to provide products that people couldnt get otherwise.
- 4. UP IMC 4 UNION PACIFIC CORPORATION
- 5. UP IMC 5 UNION PACIFIC CORPORATION BACKGROUNDER The Union Pacific Corporation was started in 1969 as a holding company, with Union Pacific Railroad as one of its operating companies. Yet the first Union Pacific Railroad was incorporated on July 1, 1862, under the act of Congress entitled Pacific Railroad Act of 1862. The act was approved by President Abraham Lincoln, and it provided for the construction of railroads from the Missouri River to the Pacific as a war measure for the preservation of the Union. It was constructed westward from Council Bluffs, Iowa to meet the Central Pacific Railroad line, which was constructed eastward from San Francisco Bay. The combined Union Pacific-Central Pacific line became known as the First Transcontinental Railroad and Overland Route. (Wikipedia, 2020) Nowadays they ship freight of all types, have passenger trains and more. They still provide during wartime, but now it is more about getting products from one place to the next destination. Union Pacific operates in Arizona, Arkansas, California, Colorado, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming. The Union Pacific Corporations core values are quite simple. According to their website, they have three main core values (Union Pacific, 2020): Passion for Performance- Passion, determination and expertise drive our safety, customer experience and financial results. High Ethical Standards- Our reputation will always be a source of pride for our employees and a bond with our customers, shareholders and communities. Work as a Team- We work together, embrace diversity and create opportunity for all. We promote all- inclusive environment where people from varied backgrounds can be their best, reflect the communities where we live and work, and deliver a competitive advantage. They are dedicated to providing great service, while still thinking about their employees and where they are headed in the future. Union Pacifics mission statement is: The men and women of Union Pacific are dedicated to serve. Union Pacific works for the good of our customers, shareholders, communities and one another. Our commitment defines us and drives the economic strength of our company and our country. (Comparably, 2021) This company wants to
- 6. UP IMC 6 UNION PACIFIC CORPORATION continue growing and providing customers and their communities with the best service and company that they can provide. Although Union Pacific hasnt made quite as much money this year compared to even last year, they didnt drop too much in earnings in 2021. They made a profit of over 5 billion dollars in 2021 alone. They are staying strong within the market and because of the demand for intermodal shipping needs they are not expected to drop in earnings by too much. Union Pacific Corporation offers many services for your shipping needs, on their website they provide this list of their shipping capabilities (Union Pacific, 2020): Construction, Consumer Appliances, Hazardous Waste, Lumber and Panel, Machinery and Dimensional, Metals and Ores, Military Shipments, Paper, Petroleum Products, Plastics, Private Locomotives, Sand and Drilling-Related Products, Waste, and Door-to-Door Shipping and Logistics Services. Union Pacifics target market is not really a certain age group or demographic. They are not looking for any certain customers. This company targets any firms, companies, or organizations that have a need to get their goods from one point to the next. Union Pacific has definitely gained more competition through the years. With the addition of new or older companies expanding into the freight business. According to the website Comparably these are their top competitors (Comparably, 2020): CSX Corporation Amtrak BNSF Railway Norfolk Southern Corporation Canadian Pacific Railway Ltd The Kansas City Railway
- 7. UP IMC 7 UNION PACIFIC CORPORATION SWOT ANALYSIS
- 8. UP IMC 8 UNION PACIFIC CORPORATION TARGET AUDIENCE/ POTENTIAL MARKET Union Pacific Corporation does not target just ages. They want to help connect businesses together and to the world beyond by helping them get their products and supplies to where they need to go through safe and efficient freight transport serving the Western and Mid-Western States. Especially during covid-19, people and businesses had to find a way to get their products where they need to go. Small business ownership statistics from Experian tell us that American small business owners are 50.3 years old, on average Entrepreneurs in the construction industry are the youngest, at 48.3 years, on average. (Reddigari, 2018). So the target market for small businesses using Union Pacific is 48-54 years old. Even now there is an ever-evolving market that Union Pacific can tap into. As our nation has grown more diverse, so too has the self-employed workforce. There are now roughly 8 million minority-owned small businesses in the country, according to small business ownership statistics from the SBA. Similarly, women owned businesses have grown by 114 percent over the past 20 years. Thats over twice the national growth rate of 44 percent for U.S. businesses. (Reddigari, 2018). With more outreach by Union Pacific, they could reach even more businesses in the Western and Mid-Western States that could benefit by using freight transport. I chose this market because it is not clearly defined. This company has a chance to reach any business owner if they are willing to invest in social media, engaging their audience, and giving people a glimpse into what they are doing to give back to their communities as well. From the terrain our rails touch to communities worldwide, its important we act as stewards to support the transition to a more sustainable future. (Pacific, 2021). The biggest threat to Union Pacific in 2019 was; Interestingly, I think the greatest threat to railroads is robotic or autonomous trucks. Robot trucks threaten railways because they offer many of the advantages of trains without the need to maintain an expensive infrastructure. Specifically, robot trucks unlike trains lessen the need for drivers. (Daniel, 2019). We are subject to competition from other railroads, motor carriers, ship and barge
- 9. UP IMC 9 UNION PACIFIC CORPORATION operators, and pipelines. Our main railroad competitor is Burlington Northern Santa Fe LLC. Its primary subsidiary, BNSF Railway Company (BNSF), operates parallel routes in many of our main traffic corridors. In addition, we operate in corridors served by other railroads and motor carriers. (Market, 2021).
- 10. UP IMC 10 UNION PACIFIC CORPORATION CUSTOMER PROFILE Meet Tasha Rodriguez, the ideal customer for Union Pacific Corporation. She graduated top of her Business class at the University of Houston in Houston Texas. After graduating she did an internship with a reputable business firm. She still lives in Texas and is now CEO of a company manufacturing company that makes refrigerators. Even at 53 years old she still stays on top of social media, loves television, and keeping in touch with her three sons, and four grandchildren. She makes around $90,000 a year. When covid-19 hit, her company was struggling to find ways to get their refrigerators to potential customers. With different policies and procedure halting certain types of transportation, her company has been struggling with finding a good transportation method. She wants to find a solution that could foster a good relationship when it comes to shipping while also making sure that their customers needs are also being met. She wants a company that also believes in sustainability and giving back to the community. She has been doing intensive research along with her team to find the best option for her business, customers, and communities.
- 11. UP IMC 11 UNION PACIFIC CORPORATION MARKETING GOAL, OBJECTIVES & STRATEGIES GOAL: To create more relevance between Union Pacific Organization and Baby Boomers and Gen Xers, that will create more business opportunities. OBJECTIVES AND STRATEGIES: 1. Increase target audience awareness by 70% of Union Pacific Organization and what they offer. Create campaign that goes over various ways that Union Pacific can help companies. Create social media that enhances and showcases what Union Pacific can do for the target audience. Create program that promotes services and educates target audience on how they could use Union Pacific. Be open to suggestions and obstacles that target audience faces when using Union Pacific. 2. Increase Customer engagement and satisfaction by 30% Create social media accounts that go over services that Union Pacific offers. Give a glimpse into charitable and community changes that Union Pacific is accomplishing. Create ad that helps to promote employees and Union Pacifics core values. Provide information on upcoming events and hiring events that engages individuals.
- 12. UP IMC 12 UNION PACIFIC CORPORATION Creative Strategy POINTS-OF-PARITY/DIFFERENCE RATIONAL EMOTIONAL Many different shipping options Intermodal shipping and flexibility Responds to customers needs and wants Works to ship things like cars even more efficiently Has a well established route and structure Responsive to changes and new policies Has great reliability and trustworthiness with existing clients and customers Works to constantly improve themselves and adapt to what the customer wants and needs Works to build a relationship with customers Gives back to community and works to help the environment Has Customer Advisory Board that invites industry leaders that creative solutions Has a long history and supports military Provides supplies and things during times of need
- 13. UP IMC 13 UNION PACIFIC CORPORATION Creative Strategy Statement: Union Pacific delivers your supplies and products, gives you updates, and responds to you and your customers needs. Tagline: If you can create it, we can ship it. Rejected Statements: Union Pacific, the shipping solution you need. Delivering your goods, just like you would. You make it, and we deliver it. If you need it there, we can do that. CREATIVE BRIEF What are we advertising? Union Pacific can fulfill the need of small and large businesses that are run by Baby Boomers, Gen Xers, and Xennials that are looking for shipping solutions. Whom we are talking to? Small and big business owners who need to get their supplies or products shipped. What do they currently think? Some companies and businesses think that other shipping methods could be better, or they may not know much about freight shipping.
- 14. UP IMC 14 UNION PACIFIC CORPORATION What would we like them to think? Union Pacific works with customers to create the best service and adapt and change if needed. What is the single most persuasive idea we can convey? If you have a product or supply that needs to be shipped, Union Pacific can do it safely and efficiently. Why should they believe it? Union Pacific does not just worry about making money, they are committed to satisfying customer wants and needs. They also keep open communication with their customers. Are there any creative guidelines? Must use correct Union Pacific logo and go over benefits of using Union Pacific.
- 15. UP IMC 15 UNION PACIFIC CORPORATION PROMOTIONAL MIX Billboard Advertisement: Billboards cater to customers in certain geographical areas. They should also be kept simple and should always be if possible, entertaining or clever to your audience to draw their attention and hold it. The cost of billboard advertising depends on format, circulation, demographics, and impressions. Physical billboard costs average $750 to $1,500 per month in rural areas, $1,500 to $2,000 in small to midsize cities, and $14,000 and up in larger markets. (Main, 2020). Focusing our billboards in states such as Nevada, California, Arizona, and Oklahoma. We will have a budget of $250,000 for billboard advertising each year. Baby Boomers, Gen Xers, and Xennials will see the ad when driving to or from work or on their daily grind. The message of the billboards will convey business owners working alongside Union Pacific employees. Social Media: Using sites like Facebook and Twitter will help Union Pacific reach their target market of Baby Boomers, Gen Xers, and Xennials, because that is where their target market and products are being sold. By delving into social media Union Pacific is paving a way for two-way interaction with potential business and what customers are asking for in real time. What if you already have an existing Twitter account, but need some help to take it to the next level? Restructuring an existing Twitter account with limited coaching to achieve client goals is still going to cost you between $1,000-$2,500 per month, with some charging as much as $4,000 per month. Facebook management pricing can run a bit higher than that of Twitter alone. To set up a new Facebook account and provide limited ongoing training to business partners, online PR agencies charge an average of $2,500-$5,000 per month, with some going as high as $9,000. (DePhillips, 2021). To have a team that goes over new services, community involvement, new policies, and coming changes will give both our customers and theirs have a view into what Union Pacific is going for and gives prospective clients a glimpse into our values and services. Our budget for social media yearly will be $100,000. Radio: Radio is a good way to reach our on the go people that dont have the time to be help back, they want their information now. They want the information quickly and efficiently so
- 16. UP IMC 16 UNION PACIFIC CORPORATION that they can continue on with their busy days. Radio advertising is typically priced by the number of listeners multiplied by the cost per thousand (CPM). While station and market affect the cost, radio advertising often falls between $200 and $5,000 per week. Cost will be affected by length of advertisement, time, location, and station. For instance, a 60- second ad will cost more than a 30- second ad and an ad played late at night will cost less than an ad aired during rush hour. Additionally, an ad in a more populated market, like Chicago will cost more than an ad in rural Illinois and a more popular station will cost more due to the higher audience rate (Olmstead, 2020). Union Pacific will be targeting ten states to start: Arizona, California, Colorado, Idaho, Kansas, Minnesota, Missouri, Nevada, New Mexico, and Tennessee. The budget yearly will be about $360,000 per year.
- 17. UP IMC 17 UNION PACIFIC CORPORATION CREATIVE EXECUTION NOW, MORE THAN EVER, WE NEED EACH OTHER VISIT US AT: http://www.up.com
- 18. UP IMC 18 UNION PACIFIC CORPORATION CONCLUSION Union Pacific Corporation is not afraid to take risks in order to help better themselves, their company, and their employees. In times of need, they can be counted on to provide essential supplies and products where they are needed. They bring awareness to issues that are happening in the world. They take a stand against wrongdoing and policies and things that need to change to make Union Pacific a respected corporation and a better working environment for the employees that work here. They do not back down when things get hard, they choose to change and adapt to what is happening, make innovations that provide better service and reliability, accept ideas and advice from industry leaders to make sure that they are doing everything they can to be the best they can while caring about the companies that work with them and future customers that they would like to work with.
- 19. UP IMC 19 UNION PACIFIC CORPORATION REFERENCE LIST: Bloomberg. (2021). Union Pacific. Bloomberg.com. https://www.bloomberg.com/profile/company/UNP:US. Comparably. (2021, August 6). Union Pacific Railroad Competitors. Comparably. https://www.comparably.com/companies/union-pacific-railroad/competitors. Comparably. (2021, August 6). Union Pacific Railroad Mission, vision & values. Comparably. https://www.comparably.com/companies/union-pacific-railroad/mission. Daniel, D. (2019, May 29). Is the Union Pacific in trouble? Market Mad House. https://marketmadhouse.com/is-the-union-pacific-in-trouble/. DePhillips, K. (2021, August 18). How much does it cost to outsource social Media Marketing? contentfac.com. https://contentfac.com/how-much-does-social-media-marketing- cost/. https://bomamarketing.com/2018/06/24/traditional-vs-digital-media-which-should-i-use-in- my- accounting-or-bookkeeping-firm/. Magazine, F. (2021). Union Pacific (unp). Forbes. https://www.forbes.com/companies/union- pacific/?list=global2000&sh=7e40578a7b23. Main, K. (2021, June 16). How much does a billboard cost? Pricing & advertising tips. Fit Small Business. https://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/. Market, C. S. I. (2021). Union Pacific's. CSIMarket. https://csimarket.com/stocks/compet_glance.php?code=UNP . Marketline. (2021, February 7). Company Profile: Union Pacific Corporation. EBSCO Host. http://web.a.ebscohost.com.oclc.fullsail.edu:81/ehost/pdfviewer/pdfviewer?vid=4&sid=97 b39ac8-54ca-488e-bf62-7738b29b448e%40sessionmgr4006. Nasdaq. (2020). Union Pacific Corporation common Stock (unp) financials. Nasdaq. https://www.nasdaq.com/market-activity/stocks/unp/financials. Olmstead, L. (2020, February 21). Local radio ADVERTISING: Cost, examples, and tips. 2ndKitchen. https://2ndkitchen.com/restaurants/radio-advertising/.
- 20. UP IMC 20 UNION PACIFIC CORPORATION Pacific, U. (2021). About us. UP. https://www.up.com/aboutup/index.htm. Pacific, U. (2021). Connecting People, Markets and Economics. https://www.up.com/cs/groups/public/@uprr/@corprel/documents/up_pdf_nativedocs/pdf_ up_2019_building_america_r.pdf. Pacific, U. (2021). Our ESG Approach: Building a Sustainable Future 2030. UP. https://www.up.com/aboutup/esg/index.htm. Pacific, U. (2021). Union Pacific. UP. https://www.up.com/aboutup/usguide/index.htm. Reddigari, M. (2018, September 17). Small business ownership statistics you should know. Microsoft. https://www.microsoft.com/en-us/microsoft-365/business-insights- ideas/resources/small-business-ownership-statistics-know. Studholme, L. (2021, March 22). Traditional vs digital Media? Which Should I use in my accounting or BOOKKEEPING FIRM? Boma. Wikipedia. (2021, August 10). Union Pacific Corporation. Wikipedia. https://en.wikipedia.org/wiki/Union_Pacific_Corporation. Wikipedia. (2021, July 15). Union Pacific Corporation. Wikipedia. https://en.wikipedia.org/wiki/Union_Pacific_Corporation#Ori