Virgin Mobile Harvard Case

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STUDENT: | Louis-Claude ROUX | PROFESSOR: | Philippe René Gillet | CASE: Virgin Mobile USA “Pricing for the first time” | DATE: 20/02/2012CLASS: MBS-Entrepreneuriat | PART I) ANSWERS BASED ON MY “GUT FEELINGS” Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why? I would go for option number two for several reasons. The first one is that I think offer number one is not sufficiently different from the rest of the market. The price positioning is the same and we only get better off peak hours, supposedly “fewer hidden fees” and applications. Virgin Xtras is a creative idea and definitely suits Virgin’s image and targeted young audience, however I…show more content…
It feels like an inquisition for the customer, affecting in a very bad way the purchasing experience. The buckets of minutes might have been a confusing notion at first, however everybody understands what it is now. The industry had to find a common standard to compare the offers and that is what buckets help doing. I think the buckets are visual and graphically clear enough to make the offers more attractive and easy to comprehend. The hidden fees are a true enemy to the consumer experience! Even when you think you have understood everything, there are extras “coming out of nowhere” spoiling the whole experience. That is part of the reason why we always feel like the phone operators are cheating on us. Regarding the on peak/off peak distinction, I think it is a powerful argument. Most people understand what it is and the fact that we can have unlimited time on off peak hours is a must have for every operator today. Just like with the buckets, it might add a complexity at first, but it is something that the customer has understood and therefore we speak the same vocabulary. The big problem that ruins the consumer experience is the addition of these variables. Indeed, you need to compare all of them between different carriers to find the better deal. I would also add to these variables the price of the actual mobile phone with the
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