Virgin Mobile USA: Pricing for the Very First Time - CASE STUDY Kiran Chimmiri Virgin is a U.K-based company led by Sir Richard Branson and is one of the three most recognized brands in Britain. Dan Schulman has been appointed CEO of the Virgin Mobile USA and is now trying to determine what pricing strategy would be most efficient in attracting and sustaining customers in the USA. There are several other decisions which also need to be made, such as unique features Virgin mobile can offer to differentiate
Words: 924 - Pages: 4
Q.1 Given Virgin Mobile's target market 914 to 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of subsidies, hidden fees, average per-minute charges, etc.). I will recommend third pricing strategy, which is to come up with a completely new plan, since we are trying to target
Words: 1292 - Pages: 6
quality, innovation and sense of competitive challenge is what Virgin stands for and its aim is to look for opportunities, which provides a better offer for its customers. That’s what drives Virgin Mobile USA to focus on youth market targeting customers between the ages of 15 and 29, which is a group that hasn’t been targeted as much by major cell phone providers. Virgin Mobile has proposed a 50-50 joint venture with Sprint, in which Virgin Mobile would buy minutes from Sprint as needed. Overall, this
Words: 683 - Pages: 3
Case Study - Virgin Mobile USA PGXPM 10 – ARJUNAS – GROUP VI SERVICE MARKETING Assigned by Prof. D. Sriram MEMBERS: NIRANJAN DAUTKHANI Virgin Group Profile: * Virgin, a leading branded venture capital organization, is one of the world's most recognized and respected brands. * Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony, to transportation
Words: 853 - Pages: 4
Problem Statement Virgin Mobile is launching its services in USA in the summer of 2002. It has to decide on its pricing strategy that would attract and retain subscribers. Situation Analysis Customer: The target consumer group is youth aged between 15 and 29 years. Penetration in this segment is significantly lower and the growth rate is projected to be robust in the coming years. Most of them have a history of poor credit quality, no credit cards and no facility to pass credit checks. The revenue
Words: 1557 - Pages: 7
Virgin Mobile USA is a brand extension of Virgin, a U.K.-based company founded by Sir Richard Branson. The company led by CEO Dan Schulman was founded under Virgin's mission statement which stated "we believe in making a difference. In our customer's eyes, Virgin stands for value, for money, quality, innovation, fun and a sense of competitive challenge... we look for opportunities where we can offer something better, fresher, and more valuable, and we seize them. We often move into areas where the
Words: 1408 - Pages: 6
Problem Statement Virgin Mobil is venturing into the US market and their launch date is July 2002. The company’s goal is to have one million total subscribers by the end of the first year and three million by year four. In order to achieve their goals, the company has to come up with a competitive pricing strategy to attract and retain customers in an already mature market. Recommended course of action Despite a mature US market, the cellular service industry has a market penetration of only
Words: 1052 - Pages: 5
provides a unique way Virgin Mobile USA can enter the market and gain a following. However, one option stands apart from the others and fits with what Virgin Mobile is trying to convey. Q3. Virgin Mobile’s targeted market selection of 15-29, if marketed successfully, had the greatest potential for growth since it was the least penetrated. Consumers are often very brand loyal, especially with products or services that take up a larger part of their income. This meant that Virgin Mobile must promote
Words: 672 - Pages: 3
Case Study:-Virgin Mobile USA: Pricing for the very first time Introduction: Virgin Mobile Company led by Branson, is a British-base company. Dan Schulman was chosen as CEO in 2001. He was trying to find a niche market in US for virgin mobile. US market was under-served and dissatisfy with existing Carriers. Youth were ignored and no carrier had capitalized on this segment. The company entered in a 50-50 joint venture with US-based Sprint in which Virgin will use Sprint network for US services
Words: 1586 - Pages: 7
Introduction to Virgin Blue – Low Cost leisure travel for Australians. - The airline was developed to service the Australian domestic leisure travel segment as a low cost airline with low prices, one class of ticket, and minimal on-board, complementary services. - In 2003, virgin blue holdings floated on ASX with core business being provision of travel services to leisure travellers in Australia and overseas - Pacific Blue in 2004 - Polynesian Blue in 2005 - Virgin Australia
Words: 431 - Pages: 2
