Virgin

The pricing strategy does not really differentiate it from the competitors as value-based service is not provided by the airlines. The low-cost structure and revenue strategy of Spirit Airlines give it a sustainable competitive

Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why?

Virgin Atlantic is clearly the cash cow of the Virgin Empire but we have undertaken a

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

The key issue for Virgin Mobile USA is to select a pricing strategy that will both attract and retrain subscribers.

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

We think that companies should calculate their break-even point for their goods and services and to charge the prices according to that figure. This way, they can make sure that their price covers their expenses. In case of AT&T’s text messaging they are charging much more than the cost. But because there are only four national carriers in United States and they control 90 percent of the market, and text messaging had become widely popular, they can afford high prices. They are considering the demand of the service and pricing the product according to demand and supply.

Virgin Mobile is looking to launch a new cell phone service in the US marketplace, which is already a highly saturated industry. This analysis will help select a pricing strategy that attracts and retains subscribers, while still maintaining a competitive edge within the industry. The cell phone industry has many sources of customer dissatisfaction. For instance, customers’ distrust in pricing plans due to confusing usage rates; companies’ inconvenient and inconsistent off-peak hours; service provider’s hidden fees that include taxes and higher rates after minutes are used up, universal service charges, and one-time costs; and binding contracts by the service

Virgin Mobile USA is the leader of no-contract mobile service since its debut in the U.S. market in 2001. Their leading promotional feature includes their Unlimited Web,

The purpose of this report was to provide a strategic evaluation of the company Virgin Australia. The report begins by conducting a strategic analysis of Virgin, including an analysis of the external environment and an internal analysis of competitive strengths and weaknesses. The report then identifies the strategic direction and objectives of Virgin Australia, including the vision, mission, strategic objectives and stakeholders of the company. The report moves on to explore strategic choices of Virgin Australia by identifying the key broad business level and

The first part of this report provides a broad introduction into the business of Virgin Australian by examining its principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and generates revenue by the core business of passenger and cargo transport.

Being in the service sector it is important for Virgin Atlantic to study its marketing mix as it works as an efficient tool, while building up marketing plans. It comprises of the seven P’s which are as follows.

2. Unique business model – expanding on the self-service trend with a unique twist and custom pricing options will be appealing to all consumers.

Some Virgin businesses are also related in terms of being "ideally suited to e-commerce and in which growth is expected to occur - travel, financial services, publishing, music, entertainment" (Case, p.687). Virgin exploited this potential to create synergies by sharing activities across these businesses to reduce unit costs. i.e. the distribution of various products from different businesses can be shared by using "technology to give all Virgin customers a small mobile device form which they could purchase any Virgin product from a rail or cinema ticket to a CD… and streamline online service with a single Virgin web address: Virgin.com" (Case, p.687).

As service providers, consistent and frequent service failure could prove to be fatal in term of their survival and their long-term brand reputation. Therefore it would make sense for telecommunication firms to divert the peak-hours traffic into non-peak hours by using a price discrimination strategy which segments the users based upon their willingness and abilities to pay. For instance, business-users are willing to pay higher price for peak-hours usage due to their inelastic demand whereas in contrast, leisure-users’ demand is elastic and are willing to make call during off-peak hours in return for lower price. By adopting the price discrimination strategy, telecommunication firms are able to maximize sales revenue during peak and off-peak hours by balancing the air-time traffic based upon different market segment of users.