This may be what you are looking for?

CREATE TABLE Groups (
group_name VARCHAR(80) PRIMARY KEY,
upper_level varchar(80),
sales_person VARCHAR(35));

GO

CREATE PROCEDURE InsertGroup
@sales_person VARCHAR(35),
@raw_group_name VARCHAR(80)
AS
BEGIN
  DELETE Groups
  WHERE sales_person = @sales_person;

  WITH
   N1 (n) AS (SELECT 1 UNION ALL SELECT 2),
   N2 (n) AS (SELECT 1 FROM N1 AS X, N1 AS Y),
   N3 (n) AS (SELECT 1 FROM N2 AS X, N2 AS Y),
   N4 (n) AS (SELECT ROW_NUMBER()
                            OVER(ORDER BY X.n) FROM N3 AS X, N3 AS Y),
   groups (group_name) AS (
   SELECT SUBSTRING(@raw_group_name, 1,
                    CHARINDEX('.', @raw_group_name + '.', n) - 1)
   FROM   N4
   WHERE  SUBSTRING('.' + @raw_group_name, n, 1) = '.'
      AND n < LEN(@raw_group_name) + 1
  )    
  INSERT INTO Groups (sales_person, group_name, upper_level)
     SELECT @sales_person, group_name,
            CASE WHEN charindex('.', group_name) > 0
                 THEN substring(group_name, 1,
                           len(group_name) -
                           charindex('.', reverse(group_name)))
           END                    
    FROM   groups

END;

GO

EXEC InsertGroup
      @sales_person = 'Frank Brown',
      @raw_group_name = 'Fedex.United States.Texas.Dallas.Airport
Branch.Customer Services.Team C';

SELECT sales_person, group_name, upper_level
FROM Groups;
go
drop table Groups
drop procedure InsertGroup

Help minus Understanding = Hope
You can only hope you can get more of the same kind of help. You'd be better
off
doing this in a way you understand so you can modify it. Hope is a poor
foundation
for responsibility. Use a cursor if you have too. What good is performance
only?
Help comes at a price, there are no free lunches.

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Hi Mark,

It is always best to describe the initial problem in more detail so you can
get better help from everyone here. Your requirements were not so simple and
the code may be misleading.

Also, you may want to look at hierarchies and in particular materialized
path.

Here is the code changed to produce the desired result set (in a way very
similar to Erland's code, but complete in context of the full requirements).

CREATE TABLE Groups (
group_name VARCHAR(80) PRIMARY KEY,
sales_person VARCHAR(35),
GroupNameUpOneLevel VARCHAR(80));

GO

CREATE PROCEDURE InsertGroup
@sales_person VARCHAR(35),
@raw_group_name VARCHAR(80)
AS
BEGIN
  DELETE Groups
  WHERE sales_person = @sales_person;

  DECLARE @earth TABLE (
               group_name VARCHAR(80),
               group_idx INT,
               GroupNameUpOneLevel VARCHAR(80));

  WITH
   N1 (n) AS (SELECT 1 UNION ALL SELECT 2),
   N2 (n) AS (SELECT 1 FROM N1 AS X, N1 AS Y),
   N3 (n) AS (SELECT 1 FROM N2 AS X, N2 AS Y),
   N4 (n) AS (SELECT ROW_NUMBER()
                     OVER(ORDER BY X.n) FROM N3 AS X, N3 AS Y)
  INSERT INTO Groups (sales_person, group_name, GroupNameUpOneLevel)
  OUTPUT Inserted.group_name,
              LEN(Inserted.group_name) -
              LEN(REPLACE(Inserted.group_name, '.', '')),
              Inserted.GroupNameUpOneLevel
  INTO @earth
  SELECT sales_person, group_name,
            CASE WHEN CHARINDEX('.', group_name) > 0
                   THEN LEFT(group_name, LEN(group_name) -
                                  CHARINDEX('.', REVERSE(group_name)))
            END AS GroupNameUpOneLevel
  FROM(
  SELECT @sales_person,
             SUBSTRING(@raw_group_name, 1,
                             CHARINDEX('.', @raw_group_name + '.', n) - 1)
  FROM N4
  WHERE SUBSTRING('.' + @raw_group_name, n, 1) = '.'
      AND n < LEN(@raw_group_name) + 1) AS T(sales_person, group_name);

  INSERT INTO Groups (sales_person, group_name, GroupNameUpOneLevel)
  SELECT @sales_person,
             STUFF(group_name, 1,
                      CHARINDEX('.', group_name + '.') - 1, 'Earth'),
             STUFF(GroupNameUpOneLevel, 1,
                      CHARINDEX('.', GroupNameUpOneLevel + '.') - 1,
'Earth')
  FROM @earth
  WHERE group_idx <= 4;

END;

GO

EXEC InsertGroup
      @sales_person = 'Frank Brown',
      @raw_group_name = 'Fedex.United States.Texas.Dallas.Airport
Branch.Customer Services.Team C';

SELECT sales_person, group_name, GroupNameUpOneLevel
FROM Groups;

HTH,

Plamen Ratchev
http://www.SQLStudio.com