Virgin Mobile Case Marketing

3505 Words15 Pages
Problem Statement Virgin Mobile is making an entry into the US Mobile Operator industry as an MVNO, and is targeting an underserved segment of consumers (ages between 14 and 24). According to its brand values, Virgin must differentiate from its competitors clearly representing a fresh, challenging and innovative service that sets it apart from US traditional carriers. The team lead by Dan Shulman finds itself with the challenge of determining a pricing strategy which would give Virgin Mobile a competitive advantage over future attempts of competition.Such strategy must be in line with both Virgin’s values and value proposition and the rest of the marketing mix elements that are already set, and the failure to do so could completely foil the entire venture. The elected pricing strategy must therefore offer competitive prices, be clear to the customer (avoid confusion), avoid to trigger off competitive reactions and make money (of course!). Virgin Mobile in the US (Situation Analysis) Customer Virgin Mobile has identified an opportunity window in serving customers aged from 14 to 24 (targeted by advertising). These customers have in common poor credit quality, which both means they are not eligible for traditional US carriers who require credit checks to sign up a contract and that they are going to be very sensitive to price. Also, this group provides low value and very unstable revenue for each subscriber. Finally, this kind of consumer is generally savvy and doesn’t like the idea of being fooled as a customer.However, this kind of customer is very prone to spending money on additional services such as text messages, graphics and ringtones. To them, their mobile phone is not just a tool to make phone calls; it is also a fashion accessory. Also, it’s a sector with a good growth potential, as Mobile penetration on the lower age scale is still very low in the US

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