Marketing Strategy Of Virgin Mobile

1276 WordsMar 23, 20176 Pages
I. Problem Statement Virgin Mobile needs not only an effective but profitable pricing strategy that will set the company apart from the competition. With goals to have 1 million total subscribers by the end of the first year and 3 million by year 4, Virgin Mobile has some high expectations with a limited budget. As a company, Virgin Mobile wants to implement a pricing strategy that will attract and retain customers, especially in a target market that has been underserved in the past. II. Strategic Situation Facing Management in the Case The market Virgin Mobile is trying to target is millennials, aging between 15 and 29. As of now, the U.S. has the lowest penetration in the mobile industry within this age group, with a high growth rate…show more content…
Current marketing strategies include a strong focus toward the youth market, and where they spend most of their time. Advertisements will be aired on MTV, and products will be sold in places like Target and Best Buy. These are all smart tactics to get the product in front of the target market. Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy. III. Strategic Alternatives Available to the Firm There are three options to price the new Virgin Mobile line in the US. The first option involves setting prices at the same level as the competition. The benefit of this option is the ease of implementation, but the drawback is the lack of differentiation. Virgin Mobile will not be setting itself apart from other companies, by

More about Marketing Strategy Of Virgin Mobile

Open Document