Strategic Management: U.S Cellular

Strategic Management: U.S Cellular

http://hwpool.com/product/strategic-management-u-s-cellular/

 

Book for class is Strategic Brand Management 4th addition by Kevin Lane Keller Tuck School of Business Dartmouth College

 

Sections of the paper that I need for the U.S. Cellular company, teacher does check for plagiarism.

Executive Summary: Keep this item at no more than two pages. It is a synopsis of key information that is found in the subsequent sections that clearly and succinctly explains the overview of the loyalty program as a concept. Provide the name and slogan for the loyalty program, and propose how the system will work.

Brand Inventory: This is a comprehensive profile of how all the products and services of a company are marketed and branded. Profiling requires marketers to catalogue visual and written forms for each product or service sold, the inherent product attributes or characteristics of the brand, pricing, communications, and distribution policies.

Brand Opportunities: Based on the Brand Inventory, identify where there are opportunities to improve the brand. State the relative value of exploiting these various opportunities and explain how a loyalty improvement program can be used to attack these opportunities.

Brand Extension Policy: An extension’s ultimate success will depend on its ability both to achieve some of its own brand equity in the new category and to contribute to the equity of the parent brand. State the policy you recommend and your reason. Be sure to reference course and text material.

Loyalty Program: Design a name and slogan for the loyalty program, and propose how the system will work—what data will be collected? How will this data benefit the company in terms of brand equity and positioning? How will individual customers be tracked and what will the company do with the data that is collected?

Conclusion: Explain your reasoning for this program. Why are you recommending it? How will it impact your brand? How does it all come together?

References: Be sure to include at least six sources as references in addition to the textbook and course lecture. Be sure to also include APA style in text citations throughout both the paper and the presentation.

 

Work completed:

 

  1. Identify all of your brand’s brand elements and access their ability to contribute to brand equity according to the choice criteria in Chapter 4.

U.S. Cellular is focused on growing consumer base by using brand equity.  It is essential to their strategic imperatives to drive revenue growth and grow net additions. Branding is integral to differentiate U.S. Cellular products and services from their major competitors such as Verizon, T-Mobile and Sprint. In order to create greater awareness and capitalize on marketing initiatives and investments, there needs to be consistency around the messages that they are communicating. This includes everything from graphical treatments, logo presentation, and written communications. If different messages are being transmitted to consumers, brand equity and awareness will be diminished and the consumer will be completely confused.

U.S. Cellular has given great thought to the 6 brand elements when building their brand. There are many examples of great branding by U.S. Cellular. First, U.S. Cellular is a recognized brand in many rural markets do to it is one of the few cellular carriers that “works in the middle of know where” (www.uscellular.com). This creates a feeling of safety with the customer with intern gives them a good memory of the product.  U.S. Cellular also made sure that the name of the company, trade make colors and the logo were meaningful and likeable for all the markets that are selling their products. By referring to the U.S. and using the red, white and blue colors make the customer feel that they are being patriotic or purchasing form a USA supporting company. Other brand element that U.S. Cellular took in to account was their transferability and adaptability when choosing which markets they were going to move to as they expanded. As they expand, they were looking to reproduce the success in those areas that had little or poor coverage to really highlight how valuable they are to keeping people connected. They advertised heavily “Stay connected with the people who matter to you, no matter where in the world you or they may be” (www.uscellular.com).This helps them maintain brand consistency across all markets they operate in. I one area I feel the U.S. Cellular could have done a better job insuring that the brand was protectable from a legal and a competitive side when they choose the brand colors of red, white and blue. There are many different types of companies that use those colors and in some cases they would not want to be associated with them. Some of the companies that use the same logo colors are Pepsi, U.S. Bank and American airlines.

 

  1. Access the pricing strategy.

U.S. Cellular has design a holistic view on their Pricing strategy when it comes to refreshing their pricing portfolio that is positioned for the future and for instant updating to respond to competitors. U.S. Cellular intends to increase new customer growth and maintain growth through expanded choices.  Customers have more data needs, which after price, is the most important driver of plan selection. By giving customers the flexibility to add data plans tailored to meet specific needs proves to be a strong positive for choosing a plan. Only about one-quarter of customers rate themselves highly on their ability to understand how much data is used for various activities. When given the opportunity to design a customized plan, a large number of consumers chose low minute and low-to-high data combinations, indicating that various add-on options need to be offered to suit a range of wireless preferences.

U.S. Cellular has also discontinued their rewards program on September 1, 2015.  U.S. Cellular ended the rewards so they could their customers more of the things that matter most such as national coverage, a network that works better in unexpected places, the best overall value, customer service excellence, and the latest and greatest device portfolio.

 

 

 

  1. Identify and analyze the channel strategy.

U.S. Cellular’ s channel strategy is to drive company growth and profitability in all channels and established new markets each year with different point of distribution.  U.S. Cellular is late to the game when it comes to embracing a multi-channel philosophy and being where the customers want to shop.  In order to grow revenue with new products and services they need to allow customers to do their business where they choose.  The first step they have taken to strengthen their strategy is creating a field technical product manager who would be responsible for enhancing the customer experience by supporting the successful implementation and execution of device and product technical support programs across a multi-channel sales organization. This new role would serve as a strategic partner for All Channels to ensure the ongoing effectiveness and utility of their customer’s connected solution(s).

 

  1. Gather your brand’s marketing communications material and access how effective the brand mixed and matched marketing communications are. Has it capitalized on the strengths of different media and matched marketing communications? How explicitly has it integrated its marketing communications program?

Marketing Communications Strategy Plans

U.S Cellular will be running a Point of Purchase Sales Promotion to gain new customers and retain current customers. As U.S. Cellular focuses on customer engagement, a refer a friend program will be a first “good read” of customer sentiment and at best a leading indicator of the value of the U.S. Cellular’s network and device offers. Brand strength can be tested and they can use social media channels to draw out some original research among the participating referrer and referee base. Though having a sale on merchandise is a great way to boost sales for them.

U.S. Cellular ran this pilot to generate word a mouth promotion. U.S. Cellular gave existing customers the ability to receive a $50 reward for each subscriber who activates a new line. The referee will also be able to receive $50 for the same activation of a phone on. This would make the cost to acquire a new customer lower than normal. U.S. Cellular is also able to adjust the offer at any time and market through online and traditional media.

 

Traditional Media

Currently, U.S Cellular aggressively advertises on television ads the markets that they do business in. These television ads can reach thousands of people in the target markets and this helps maintain the brand’s image. U.S. Cellular also participates in a lot of print advertising in State local papers such as Wisconsin and North Carolina.

 

Print TV and Radio Media – We do not recommend a standalone M2M launch campaign, but rather a strong extension of existing Business program.

Internet

 

The internet will be the most effective way to communicate to our target market because the internet gets to the online shopper.  U.S. Cellular should focus in on internet ads on webpages such as Facebook or Amazon

Marketing Communications Strategy Plans

 

U.S Cellular will be running a Point of Purchase Sales Promotion to gain new customers and retain current customers. As U.S. Cellular focuses on customer engagement, a refer a friend program will be a first “good read” of customer sentiment and at best a leading indicator of the value of the U.S. Cellular’s network and device offers. Brand strength can be tested and they can use social media channels to draw out some original research among the participating referrer and referee base. Though having a sale on merchandise is a great way to boost sales for them.

 

U.S. Cellular ran this pilot to generate word a mouth promotion. U.S. Cellular gave existing customers the ability to receive a $50 reward for each subscriber who activates a new line. The referee will also be able to receive $50 for the same activation of a phone on. This would make the cost to acquire a new customer lower than normal. U.S. Cellular is also able to adjust the offer at any time and market through online and traditional media.

Traditional Media

 

Currently, U.S Cellular aggressively advertises on television ads the markets that they do business in. These television ads can reach thousands of people in the target markets and this helps maintain the brand’s image. U.S. Cellular also participates in a lot of print advertising in State local papers such as Wisconsin and North Carolina.

 

Print TV and Radio Media – We do not recommend a standalone M2M launch campaign, but rather a strong extension of existing Business program.

Internet

The internet will be the most effective way to communicate to our target market because the internet gets to the online shopper.  U.S. Cellular should focus in on internet ads on webpages such as Facebook or Amazon

 

  1. Name and evaluate your brand’s leverage of secondary associations. Name ways the brand could more effectively leverage secondary brand associations.

U.S. Cellular has evaluated Unite GPS and is going to leverage them as a secondary association to grow both companies. USCC can no longer grow its business by simply relying on sources of revenue from traditional consumer and business service offerings.  90% of all carrier subscriber gains are customers taken from other carriers (fierce wireless).  The wireless industry is approaching a stalemate. Without new customers to connect, carriers are stealing them from one another and looking towards M2M for future growth.  M2M cellular sales have  amounted to 48M in 2008, and are expected to grow to 187M by next year alone (50B according to new report from Cisco).U.S. Cellular is positioned exceptionally well to capitalize on this explosive growth and by leveraging its systems, networks, people and processes.

In order to grow U.S. Cellular has partnered with Unite GPS.  Unite GPS is a Fleet Management Solution that will be offered in their equipment portfolio. With the deployment of system capabilities for Unite GPS solution on February 15, hardware and software orders can be placed through US Cellular allowing the capture new revenue opportunities. This new billing will also allow U.S. Cellular to compensate associates for software sales and consolidate all M2M charges for Unite GPS on the customer’s wireless bill. The primary targets for Unite GPS are Government, Construction and Manufacturing. Secondary targets are Utilities, Healthcare.

U.S. Cellular has come up with diverse ways to create brand equity. The marketing communication for this product will need to be strategic to build brand

With the integration of Unite GPS into U.S. Cellular, they will use existing media vehicles with some or all of the following additional tactical elements:

Web – U.S. Cellular will overhaul there Business positioning on www.uscellular.com.  The updated web presence will call attention to the availability of Unite GPS into their Business Solutions.

 

Advertising in Vertical targeted publications (both printed and web) this will ensure U.S. Cellular lets the world know it open for solid/reliable/flexible business solutions.

 

  1. Assemble a brand inventory for your brand that includes names, logos, symbols, characters, packaging, slogans, and trademarks used.
  2. Brand inventory for U.S. Cellular
  • Names,

From 1983 to 1999 they were United States Cellular and in 1999, United States Cellular became U.S. Cellular.

The name: U.S. Cellular represents the customers pride for their country in its rural markets

  • Logos,

U.S. Cellular’s logo is a simple blue star with 2 red dots and the name in red and blue. Some would say that it’s not very imaginative

1983 to 1999

1999 to present

 

  • Packaging, U.S. Cellular packing is the logo with sage green
  • Slogans,

1999, “The way people talk around here” during its new name launch

2001, U.S. Cellular introduced the slogan “We connect with you”.

2008, U.S. Cellular introduced the slogan “Believe in Something Bette

2012, U.S. Cellular introduced the slogan “Hello Better”.

U.S. Cellular’s Mission Statement

We will achieve Superior Results by delivering the ideal customer experience through passionate associates living the D.O. (uscellular.com)

Business Model

U.S. Cellular’s business model, is what they call the DO, the Dynamic Organization, starts with great leaders that produces associates that really care for their customers. In turn deliver the best customer service which yields better business results. (uscellular.com)

 

  1. Profile the brand personalities of the leading brands in the category using Aaker’s brand personality inventory from page 306.

U.S. Cellular brand personalities

 

  1. Conduct an analysis of your brand similar to the one done on Planters on pages 338–339 and explain what you learned about its extendibility as a result.

U.S. cellular, a phone network company, is equally subject to the market comparative approach employed by planters which takes into account the various aspects of its product such as the brand, and quality versus the pricing. It compares different brands at different prices to determine where the consumer would severe loyalty. For this case the various brands would be other cellular companies such as AT&T. By employing this model AT&T could determine from the result the orientation of customer expectations. They would then be able to appropriately decide what extendible products they should produce to do well in the market. Like planters they would likely find that their consumers would expect them to major on cellular related products such as tablets or mp3 players in which case they would increase their profits and potential sale by making these products.

The study further indicates where the consumers expected to find these products on the store shelves. This is important as it can inform the placing decision of the cellular products of the company to optimize visibility and potentially increase sales. However it is hard to tell from this model whether the consumers are responding to the brand knowledge (U.S cellular in this case) or the product as generic commodity in that category of products that is cellular network providers. It is therefore important to do the right marketing, pricing and placement of products so that they can have a competitive edge in the market and most important so that they can gain loyalty from the consumers. The outcome of the research also indicated the need to be focused. From the consumers response where they expected the extensions to be nut related it shows the business would benefit by staying focused on that particular line of products

 

  1. Characterize the brand portfolio and brand hierarchy of your Course Project brand.

A brand portfolio includes all brands sold by an organization in a classification. We judge a brand portfolio by its capacity to amplify brand value: Any one brand in the portfolio ought not to be mischief or diminishing the value of the others. Preferably, every brand expands value in the mix with every single another brand in the portfolio. My brand is U.S. Cellular, and it has a lot of portfolio characteristics such as U.S. cell to launch eight smartphones, two tablets, and its first 4g LTE devices. Boundless National Mobile-To-Mobile Minutes Boundless Night and Weekend Minutes Starting At 7 PM, Guest ID, Call Forwarding, Call Waiting, Three-Way Calling and Meandering Minutes. (uscellular, n.d.) And brand hierarchy of the U.S. Cellular system is very fast such as the LG G5, Samsung Galaxy Tab E, Apple IPAD-Pro, Samsung Galaxy Grand Prime, Apple IPD mini 4, Apple IPhone 6S plus. And Samsung Galaxy Note 5, LG Pad F 8.0, LG G4, Google Nexus 6, Apple IPad mini 2, Apple IPad Mini, Samsung Galaxy S4 mini, Apple IPad Air, Apple IPhone 5C, LG wine III.  (phonearena, n.d.)

 

  1. Pick one of your brand’s brand extensions. Use the models in Chapter 12 to evaluate its ability to achieve its own equity as well as contribute to the equity of the parent brand.

The selected brand extension is Apple. U.S. Cellular carries several smartphone, feature phone, and tablet devices, but their lineup did not include Apple products such as the iPhone or iPad.  This put U.S. Cellular® at a disadvantage in terms of our handset and tablet offering due to the widespread popularity of Apple products and customer loyalty to the iOS platform. The main objective of this brand extension is to expand smartphone and tablet device offerings to include Apple products such as the iPhone, the iPad, and the related accessories.  This opportunity will help U.S. Cellular reduce voluntary cancels, increase gross additions, and expand our presence in the marketplace within our footprint.  It will further help us to accelerate smartphone and LTE penetration and ultimately increase overall profitability. The latest IPad version has the equity features of the earlier IPad and also has some new features also. The most recent brand has all the features of the previous brand, for example, the iPad Pro was propelled to some ballyhoo a year ago, offering a scope of enhancements over past iPads including higher specs and swifter execution. The new A9X chip has double the memory data transmission of the iPad Air 2 and fundamentally more noteworthy stockpiling also. Macintosh asserts that the new processor implies the iPad Pro is more capable than 80 for each penny of convenient PCs sold a year ago. That claim is vital to comprehension the iPad Pro’s intended interest group – purchasers who need the profitability of a portable workstation yet in tablet structure. The screen is 12.9 creeps and is advanced for Apple’s most recent expansion, the Apple Pencil, a £79 stylus which permits clients to draw onto the screen with precision. It has the all the features of its parent version. (theweek, n.d.)

 

 

 

 

 

 

 

 

 

References:

Fierce Wireless, (2014, August 5) How Verizon, AT&T, Sprint, T-Mobile and TracFone stacked up in Q2, Retrieved on March, 25 2016 from

http://www.fiercewireless.com/special-reports/how-verizon-att-sprint-t-mobile-and-tracfone-stacked-q2

Cisco, (2015, April 15), Internet Of Things Will Deliver $1.9 Trillion Boost To Supply Chain And Logistics Operations Retrieved on March, 25 2016 from

http://newsroom.cisco.com/press-release-content?articleId=1621819

  1. S. Cellular (2004, December 3) Retrieved on March, 25 2016 from

http://www.uscellular.com/about/index.html

Phonearena. (n.d.). U.S. Cellular Phones. Retrieved on April, 8 2016 from phonearena: http://www.phonearena.com/phones/carriers/U.S.-Cellular

 

TheWeek. (n.d.). iPad Pro vs iPad Air 2 vs iPad Mini 4: How do they compare? Retrieved on April, 9 2016 from theweek: http://www.theweek.co.uk/66265/ipad-pro-vs-ipad-mini-4-vs-ipad-air-2-which-ipad-should-you-buy

 

uscellular. (n.d.). Other Calling Features. Retrieved on April, 8 2016 from uscellular: http://www.uscellular.com/features/calling.html

 

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