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Free «Product and Pricing Analysis: AT & T and US Cellular Companies» Essay Sample

Product Features

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AT & T avails wireless mobile services to an already established customer in both the United States and across the globe. Some of its notable product-features are discussed below. First, the products are tangible in nature. This is depicted by sales made in respect to minutes sold to cell phones and the immediate bandwidth data-sets that are used for both browsing and easier accessibility of service throughout the United States. Second, the smart-phones are equipped with significant mobile application software and other voice features that are meant to meet the specific needs of the user. Third, the products are intrinsically designed to allow for easier integration of network security feature hence protecting the consumer from possible loss.

On the other hand, US Cellular Products are represented by normal phones which are generated within a limited scope in meeting the customer’s need. The phones do not possess an advantage feature over its counterpart. This is because the normal phones are not able to perform distinctive functionalities as required by the ever changing customer needs. The entity’s products are limited to wireless connections. This means that the phones are not equipped with either voice or data call features which its competitor enjoys immensely.

Market Segmentation

In respect to AT & T, the entity avails both its products and services to an extensive consumer market. The company provides its products to both the United States and the entire globe. This ensures that the products are able to meet sales volume targets.  The assumption that the entity avails smart-phones to the potential consumers is an indication that it has invested fairly in market research and development activities.

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On the other hand, US Cellular offers most of its services to the population within the United States. Some of the products sold to the US consumer market are the normal phones that provide average wireless communication services to the entire population. For this reason, US Cellular enjoys fewer market niches across the globe.

Product Differentiation

AT&T has embarked on a strategy that involves diversifying most of its products in order to meet the consumer needs and also keep-up with intense competition. The entity’s products and services are not necessary limited to the generation of smart-phones. There are a number of plans set forth by the company in order to meet the different needs of each potential customer. For instance, the entity avails voice minutes in different packages that can be selected easily. The plan is broadly classified into either family or individual plan. Furthermore, the aforementioned plans are sub-divided into either Talk; Talk +Test; Talk+Test+200MB data or Talk+ Text+ Unlimited data. Additionally, the plan can also be either contractual or on non-contractual prepaid services.

On the other hand, US Cellular has differentiated its products and services to outsourcing such companies as Amdocs in order to avail differentiated customer experiences. The entity has also introduced a Turbo Charging feature. This model of product differentiation is meant to provide single real-time procedural flow. The real-time procedural flow can either be prepaid or postpaid so that the needs of the potential customers are met.

 
 
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Target Markets

AT &T is a multi-national telecommunication company that provides products and services to the American market and the entire global market. This means that the entity operates in most of countries throughout the globe. However, there is a possibility for the business to venture into emerging economic markets especially in Africa and Middle East Asia. This is associated to the research conducted indicating more Africans are conversant with Smart-phones in order to run most of their activities easily. This company produces the smart-phones in order to meet the requirements of the ever-changing young generation markets.

On the other hand, US Cellular is expected to cover most of the United States local market.  Given the intense level of competition from other technological savvy businesses as AT & T, the entity has lost most of its customer-base. The company’s level of revenue is insignificant to catapult possible venture into newer markets. The normal phones produced are targeted to the older generation whose perception of a phone is limited to calling and sending texts.

Pricing Strategies

AT&T being a multinational company that engages in the production of smart-phones has its prices set in respect to the margin of cost of production. Smart-phones require intense levels of technology and experts, which require enormous funds. Notably, the entity also pays-up for conducting R&D, useful in establishing the ever changing markets. US Cellular places its prices on the lower side in order to attract larger customer base.

The following are the charts, which represent both revenues and prices set for different products.

   

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