Virgin Mobile Usa: Pricing for the Very First Time [Case Study]

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Marketing – Master of Management 78-614 Odette School of Business, University of Windsor Write-up Title of case: Virgin Mobile USA: Pricing for the Very First Time Key person and his / her position in the organization: Dan Schulman, CEO of Virgin Mobile USA Key issue or decision that must be made: The key issue for Virgin Mobile USA is to select a pricing strategy that will both attract and retrain subscribers. Basic facts of the case: Virgin is a U.K-based company led by Sir Richard Branson and is one of the three most recognized brands in Britain. The company has a vast history of brand extensions – one of which is their launch of a wireless phone service in the USA. Dan Schulman has been appointed CEO of the Virgin…show more content…
In order to avoid these risks it’s important for the company to advertise its product correctly and re-defining why pre-paid, contract free mobile service is better then what the competition has to offer. Also by offering the customer services and features he/she may want and are unique to Virgin Mobile, the company will be able to create customer loyalty and the churn rate will stay manageable. What do you expect to happen as a result of implementing your decision? It is anticipated that by implementing the decisions as suggested the company will be able to adequately enter the US mobile phone service market by targeting the youth market and sufficiently attract and sustain new subscribers. Short Cycle Key person and his / her position in the organization: Dan Schulman, CEO, Virgin Mobile USA Key issue: The key issue for Virgin Mobile USA is to select a pricing strategy that will both attract and retrain subscribers. Sub issues: 1. What age group should be Virgin Mobile’s target market? 2. What unique features could be added in order to attract this age group? 3. What channel strategy should be used to get their product to their target market? 4. How should their product be advertised in order to appeal to their specific target
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