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    Virgin Mobile USA

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    bsush
    Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

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    Virgin Mobile USA

    Uploaded by

    bsush
    53 views15 pages
    Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

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    Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    53 views15 pages

    Virgin Mobile USA

    Uploaded by

    bsush
    Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

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    of 15

    Virgin Mobile USA: Pricing for

    the Very First Time


    Group 4, Section A
    Ajitesh Jaiswal (08P007)
    Anuj Dharnidharka (08P013)
    Reeti Bhatia (08P039)
    Siddharth Singh (08P048)
    Subhratosh Khan (08P050)
    Varun Malik (08P053)
    Virgin Group
    • UK Based – Top 3 brands in UK
    • Known for Brand Extension – 200 Virgin
    Brands
    • Some Successful – Virgin Music
    • Some Failed – Virgin Cola
    Virgin Mobile
    • Launched in UK in 1999
    • Currently present in 6 countries
    • Failed in Singapore
    Virgin Mobile – Operational Model
    • Leased Network – No network maintenance
    issues
    • Focus on Consumer Needs and Wants
    • Revolutionary – Going with what Virgin
    stands for
    American Cellular Market
    • Saturated – Everybody who should use a mobile is
    using one and if one is not using a mobile, its because
    he does not need one.
    • Post Paid Based – 92% of all customers are on a
    contract basis
    • High Advertising – Verizon budget: $650 Million
    • Unserved Youth Market – No carrier was targeting
    this segment
    Target Segment
    • The Youth Segment – High School and
    College Students – 15 to 29 year olds
    • Open to new products – open to uses
    • Untargeted till now
    • Virgin Mobile decided to market the mobile as
    much more than a device to make calls –
    messaging, ringtones, downloads etc.
    VirginXtras
    • Extras for the Target Segment
    – Collaboration with MTV for downloadables and
    airtime
    – Text Messaging
    – Ring Tones
    – Rescue Ring
    – Fun Clips
    – Music Messenger
    – Etc etc
    Distribution
    • No Salesmen – Strategic Distribution
    • No retail outlets
    • Kept in Stores frequented by youth – Dollar
    Stores etc
    • Available at retail shelf as any other electronic
    product
    Packaging
    • Attractively packed for the Younger
    Generation
    • Changeable Clamshells
    Promotion
    • Low Budget
    • Target Segment Oriented
    • Street Marketing
    • Unusual Launch
    • Articles in opinion-leading magazines
    Pricing
    • 3 options
    – Clone the industry prices
    – “Price below the Competition”
    – “A whole new Plan”
    Suggestion
    • Create a new pricing plan
    – Young Generation knows about hidden costs
    – Young Generation cannot enter into contracts
    – Should have the ability to stay hidden from parents
    Suggestion Contd.
    • Should be based on Current Industry Pricing
    Plans
    – The pricing should be new, but should be based on
    existing plans.
    • Separate Text messaging plans and Download
    plans
    – These will not be billed
    – On a pay first, use later basis
    Suggestion Contd.
    • Finally, Create a plan that the intended user
    can support, i.e. Cheaper than normal
    • Since we do not have Salesperson to explain
    our products, we need to have a simple pricing
    plan that the user can understand, If possible
    the plan should be similar to others
    THANK YOU

    QUESTIONS?

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