Virgin Mobile Case Essay

500 Words2 Pages
Virgin Mobile USA: Pricing for the Very First Time A: Who is in the target segment? How attractive is it? What is the fit with the “Virgin” brand name? The demographics of the target market is the youth generation from 15 – 29 years of age. This target segment consists of consumers who are in the “flux of their lives”. They are either about to enter college or the job market and this may be their first cell phone. The target market does appear to be attractive as it is currently underserved by the other big carriers. The target market itself is an attractive segment, based on the “cool” and popularity need to have a cell phone. This segment would be the high users of text messaging, games, internet, and ring-tones. The phone would serve as a multi-media device and not just a telecommunication device. However, financially, it is not extremely attractive considering that most 15 – 18 year olds would need their parents to buy this phone and pay for the monthly service. Most college students rely on their parents for monthly allowances or to help them with the bills. So the target market that can actually afford to pay for the cell phone and the monthly service out of their pockets narrows down to 24-29. (even though most college students graduate from undergrad at age 22, majority go back for a higher education (masters, mba, law and med school) in which case they are not earning. But the growth rate for this demographic was projected to be robust for the next five years. The fit with the Virgin brand name was that the value proposition for this target market was innovative and fun. They offered a better, fresher and more valuable offer to this demographic than any other carrier had. VirginXtra’s was their unique value proposition. The “virgin” brand name especially the music stores is very popular within this demographic; so the pairing of

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