UPS [Hearts] Logistics

Monday, September 13th, 2010

UPS is replacing “What can Brown do for you?” with “We [Heart] Logistics”:

Conceived by Ogilvy & Mather Worldwide, a unit of WPP PLC, the campaign aims to educate businesses that logistics done well can be a competitive advantage, Mr. Davis said.

The TV ads feature a new UPS jingle set to the tune of the Dean Martin classic “That’s Amore,” sung in Mandarin, Spanish and English with lyrics such as, “When it’s planes in the sky, for a chain of supply, that’s logistics,” and “There will be no more stress, ’cause you’ve called UPS, that’s logistics.”

The campaign reflects the company’s shift, since going public in 1999, from simply shipping parcels:

Supply Chain and Freight, the UPS logistics unit started after the company went public, is the company’s third-largest unit.

The division brought in 16% of total UPS revenue of $45.3 billion in 2009, up from 7% of total revenue in 2004. The unit is growing faster than UPS’s largest unit by far, its domestic package-delivery business.

Profit margins in the logistics segment have “improved pretty dramatically,” Mr. Davis said. The past decade was “a time of adding capabilities,” he said.

Since going public, UPS has bought more than 40 logistics companies whose specialties range from distributing medicine to clearing international borders.

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