The cell phone business is full of the latest technology with Blackberries, iPhones and the Droid. People commonly race out to get the newest, flashiest models of cell phones and spend hours toying with the gadgets. But a new cell phone store has tapped into a market with no interest for these glamorized phones, and it’s based in right here in Oregon.
Consumer Cellular is a company based in Tigard, Ore., which specializes in basic cell phones for senior citizens. Last year, the company crossed the $100 million threshold for the first time.
While the company specializes in basic cell phones for senior citizens, it separates itself from other cellular companies through straightforward plans.
Monthly plans through Consumer Cellular begin at $20 per month, which is about half the cost of a standard contract with the major cell phone companies. And get this—basic cell phones are free with the plan.
While this untapped market for senior citizens is a wonderful idea in theory, it does experience some problems. With a market focused on senior citizens, its target customers are currently getting older and older. And younger generations tend to be more technology savvy.
Also, people could just buy basic cell phones on the major networks and call it good, right? Wrong. The basic cell phones Consumer Cellular offer include big buttons that are easier to see and push. The cell phones are also hearing aid compatible. And the plan is much cheaper than those of the major networks.
Sure, the younger generations tend to be more technology savvy, which could mean trouble for a company that specializes in cell phones for senior citizens. However, what the company can count on is that there are people besides just senior citizens who are not so technologically knowledgeable.
We all have those relatives who ask for your help with their cell phones every time they see you, and for most people it is usually their grandparents. But there are those relatives who belong to a younger generation who have no idea how to work their cell phones.
The problem is they may be too proud to go with a cell phone company that targets senior citizens when they are far from elderly. One way this could be fixed is to possibly gear advertising strategies to focus on advertising for easy-to-use cell phones rather than just cell phones for senior citizens.
Consumer Cellular has been thus far successful due to its ability to tap into the untapped market of cell phones for senior citizens. The company may have found the one untouched market in the cell phone industry. Perhaps it is time for it to expand its scope of targeted customers.
The scariness of technology is something to be accounted for as well—by saying that the cell phones are easier to use, both senior citizens and people who do not understand technology are more inclined to buy from the company because the intimidation factor is gone.
Many senior citizens find technology to be a threat when they endured some of the most intense and scary things in history and were in charge of some of the most magnificent things ever built.
Consumer Cellular is expanding its business by testing out kiosks for the cell phones in Sears stores. The company is also looking into getting more than just basic cell phones, although it is far from getting any smart phones or the iPhone. It is also connected with AARP and AT&T and is reaching customers that way.
All in all, Consumer Cellular has done a good job creating straightforward monthly plans and basic cell phones. With a few tweaks the company could become a major contender in the cell phone market.