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Marketing Strategy - Union Pacific

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<strong>Marketing</strong> <strong>Strategy</strong><br />

Jack Koraleski


Business Dimensions<br />

2001 - $10.4 B<br />

23%<br />

Energy<br />

Mexico 8%<br />

International 15%<br />

19%<br />

Industrial Products<br />

18%<br />

Intermodal<br />

15%<br />

Chemicals<br />

Domestic<br />

77%<br />

14%<br />

Agricultural Products<br />

11%<br />

Automotive


Commodity Revenue Growth<br />

Third Quarter to Date<br />

$7,714 $7,773<br />

$7,972<br />

$7,349<br />

1999 2000 2001 2002


Revenue Outlook<br />

Outlook<br />

Market,<br />

Price &<br />

Penetration<br />

GDP<br />

1999 2000 2001 2002<br />

Outlook


Western Market Share<br />

2002<br />

$88 Billion<br />

2008<br />

GDP+ Growth<br />

UP<br />

12% BNSF<br />

10%<br />

UP<br />

14%<br />

Truck<br />

78%


How Are We Changing The Game?<br />

• Franchise<br />

• Alliances<br />

• Customer and Service Focus<br />

• Business Development


Changing the Game. . . Franchise


CP<br />

Mexico . . . A Key Link<br />

$ Millions<br />

Calexico<br />

$709<br />

$849 $861<br />

Double Digit<br />

Growth<br />

Nogales<br />

El Paso<br />

Presidio<br />

Eagle Pass<br />

Laredo<br />

1999 2000 2001 2002<br />

Brownsville


Changing the Game . . . Alliances<br />

CP


Changing the Game . . .<br />

Customer and Service Focus<br />

Record<br />

Levels<br />

• Customer Satisfaction<br />

1999: 72<br />

2002 YTD: 78<br />

Customer<br />

Satisfaction<br />

Index<br />

• Service Delivery Index<br />

1999: 65<br />

2002 YTD: 73<br />

Service<br />

Delivery<br />

Index


Changing the Game . . .<br />

Business Development<br />

Seattle<br />

Portland<br />

Oakland<br />

Las<br />

Vegas<br />

Phoenix<br />

Los<br />

Angeles<br />

New<br />

Products<br />

Corridor<br />

Initiatives<br />

Integrated Network<br />

Solutions


New<br />

Product<br />

<strong>Strategy</strong>


Revenue Growth Potential<br />

Ag Products<br />

Autos<br />

Chemicals<br />

Energy<br />

Industrial Products<br />

Intermodal<br />

TOTAL<br />

GDP<br />

0% 1% 2% 3% 4% 5% 6% 7%


Yield <strong>Strategy</strong> Implementation<br />

Margin<br />

Optimization<br />

Commercial<br />

Finance<br />

Network<br />

Design<br />

Operations<br />

Yield <strong>Strategy</strong><br />

Business Team<br />

Corridor<br />

Product<br />

Customer<br />

Carload


<strong>Union</strong> <strong>Pacific</strong>

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