Virgin mobile usa case study solution

virgin mobile strategy analysis

D No flexibility in calling habits; always paying the same high price. Most consumers do not trust the industry pricing plans. Under the contract, the U. Because the young customers are savvy, they understand the hidden charges.

virgin mobile usa pricing for the very first time answer

The two leaders operate in a wide range of industries, and live very public lifestyles, promoting both themselves and their companies through their activities. While this pricing structure strategy would help gain consumers that value pricing when choosing their products, it can also work against Virgin Mobile.

But considering the high acquisition turnover time andrecovery time of almost 29 months, it is a risky strategy because of very high mobility in the targeted segment. If Virgin Mobile eliminated contracts then they are creating that setting for more customers. They also did a great step with collaboration with MTV. The pricing would appeal to their target market and help create a young and hip image. That option is option three. Since these costs are much lower than the other competitors, they can price themselves lower than competitors. Wake-Up Call helped sleepy people out of bed. Firstly, they engaged the agreement with Sprint, USA company, which already had needed infrastructure. We strive to achieve this by empowering our employees to continually deliver an unbeatable customer experience.

On and off peak hours are also concerns. The big carriers have such a monopoly on the cell phone industry that it is not necessary for them to try to improve their customer dissatisfaction rates.

Virgin mobile uk case study

The first of which is quite obvious in that because an individual does not have an inflow of money, they have no way of payment to a service provider. One of the problems could be also a name, which is provocative and targets young people, but at that time, it was not widely known in the USA. The pricing structure strategy would be to conduct research to find out what the industry is pricing. This structure would accomplish the goal of attaining a sizable amount of the market share, but it would not be as profitable as the second pricing structure strategy. The higher limit in the vent of exceeding the contract is due to penalizing. There used to be the belief that people, who do not use the cell phone for business or already have the contract, will not use the cell phones so much, that they will be able to cover the costs of acquirement and service, so the profitability was not quite high. C Simple packaging could save costs on high commissioned salespeople. To avoid unpleasant situations on the dates, they develop Rescue Ring, which help to escape the bad situation. Most consumers do not trust the industry pricing plans. This generation wants the latest products that will make them look cool or good. Yes, I agree with the Virgin Mobile target market selection. It helps push their competitors to strive to put products on the market that excel the previous. Contract By charging less in the peak hours, the large target market of age Yrs old can join into the phone usage community, but also provide the added benefit of being charged less in their after-school phone conversation between pm. Collaboration with MTV networks as it was the most recognized youth brands in the country and unparalleled reach forthe under market segment: Exclusive, multiyear content and marketing agreement. Get Essay Subscribers would have access to MTV- branded accessories and phones, graphics, ring tones, text alerts and voice mails.

This meant that Virgin Mobile must promote their own products and services, and also concentrate on why they differ from the competition. D Hard for a new entrant to the market.

given virgin mobile target market 14 24 year olds how should it structure its pricing

Schulman is currently debating three pricing options: 1 adopting a pricing structure that is roughly equivalent to the major carriers, 2 adopting a similar pricing structure, but with actual prices below the major carriers, or 3 coming up with a radically different pricing structure.

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Lecture 9 HBS Case: Virgin Mobile