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Virgin Mobile. Problem Statement Virgin ... Now they are looking to go into the
US market with their Virgin Mobile brand. The main problem ...
Virgin Mobile. ... Boston Consulting Group Virgin mobile is considered a question mark
because they have high growth, but no market share in the US. ...
Virgin Mobile. ... Boston Consulting Group (BCG Matrix) Virgin mobile is considered a
question mark because they have high growth, but no market share in the US. ...
Virgin Mobile. Virgin Mobile ... costs. Virgin Mobile’s value proposition offers
a unique strategy in a crowded and competitive industry. By ...
virgin mobile usa. Case Analysis: Virgin Mobile USA What we are analyzing
here is pricing of a service in a market which is saturated ...
Submitted by kaiser on October 30, 2005
Category: Business
Words: 1940 | Pages: 8
Views: 409
Popularity Rank: 21,302
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Virgin Mobile
Given VMs target market, VM should structure its pricing model based on option 3. Virgin Mobile should institute the whole new plan model based on the fact that it is a radical departure from the rest of the cell phone industry. Refer to the Virgin brand values to find that one of their core values is to move into areas where customers have traditionally received a poor deal and offer something better, fresher, and more valuable. Virgin also takes pride in offering innovation and a sense of competitive challenge. Given the values of Virgin, the radical new pricing strategy offered by option 3 fits nicely with Virgin’s core values. However, a final pricing decision should be based on much more than core values. Many other regional carriers and smaller national carriers account for the remainder of market share. While LTV calculated on Virgin’s option 3 may not be as high as the industry, Virgin’s approach to entering the market may be worthwhile to accept a lower LTV if the entry approach creates demand for their services.
In choosing an option, the core values, target market, and pricing scenarios should all be considered before making a decision. One important note about the target market is that 14-24 year old consumers have little to no experience with contracts and typically have poor credit scores. Additionally, the 14-18 year old consumers must have a parent sign a legal contract. Given these facts, it appears that a marketing campaign directed at 14-24 year old consumers excludes those individuals, typically parents, who must agree to the contract terms. By choosing option 3, Virgin avoids altogether the need to convince both teens and their parents to agree on contract terms. Option 3 actually removes the additional step of signing a contract in the purchase process by removing the need for parental approval. Also by choosing option 3, Virgin is incorporating the customer perspective. By targeting the 14-24 year old...
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