Product Positioning for Tinted Windows and UPS

Target the Right Market Segment

The proposed option is transitional polarized tint for car windows that adapts to lighting conditions as an option for new car buyers. One obvious market segment is more affluent families, given that this could be viewed as a safety feature for cars to reduce glare. Married professional people with children are likely to spend the most time in their cars commuting or ferrying children to activities (Werbach 2013). Affluent dual income earners with combined incomes over $100,000 are also more likely to have money to pay for this extra feature. This demographic is likely to be highly educated given its income bracket and the amount of time spent commuting on the roads to white-collar jobs.

A second market segment is young, technologically-obsessed males. This market segment of 18-34-year-olds may earn less because they are just beginning their careers but they love cars and want to have the next new thing. They are willing to spend a much larger proportion of their income on cars than the average person. However, their income level is still in excess of $50,000 per year given that they have enough disposable income to spend on a new car. They do not have families which frees up a larger proportion of their salaries for amenities one might not consider necessities, such as car detailing, window tinting, or simply purchasing a new car in general.

A third market segment is that of older, affluent couples who may be having trouble driving as their eyes age. They have enough income to feel secure enough to buy a new car, are likely still working although they are thinking about retirement, and are concerned about the effects of aging on their driving habits. Given their age (50-64-year-olds) they are likely not to have young children at home but they are not so old that they have to cut back on their driving, they are simply concerned about safety.

Positioning: UPS

UPS is facing a highly transitional period given that more and more people are shifting their correspondence online -- businesses can email documents or share via cloud services, versus having to send them manually. On the other hand, the ubiquity of Internet technology means more and more people can purchase items online and need them shipped. However, one of the problems with UPS is that it lacks emotional resonance as a company -- unlike clothing or shoes, people tend to only notice a shipping company when it is late. This has made it difficult for UPS to distinguish itself from FedEx, its main competitor in the marketplace.

As the rivalry between the two companies began to heat up as Christmas became more and more important for both companies' bottom lines with the rise of Internet shopping, UPS branded itself as the more reliable, high-quality company, a strategy known as rational branding. Unfortunately, this new positioning strategy failed dramatically in 2013.

"Retailers were telling customers that their UPS packages would arrive before Christmas, per the logistical assurances of UPS, yet many of those packages failed to arrive in time. The reason for the failed deliveries was due to -- here it comes -- logistical problems," the very strength which UPS had branded itself upon (Burns 2013). The ability to track packages and the assurances given by UPS did not translate into actual improved service and customers rebelled.