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Virgin Mobile Usa

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  • 1. Virgin Mobile USA: Pricing for the Very First Time Group 4, Section A Ajitesh Jaiswal (08P007) Anuj Dharnidharka (08P013) Reeti Bhatia (08P039) Siddharth Singh (08P048) Subhratosh Khan (08P050) Varun Malik (08P053)
  • 2. Virgin Group • UK Based – Top 3 brands in UK • Known for Brand Extension – 200 Virgin Brands • Some Successful – Virgin Music • Some Failed – Virgin Cola
  • 3. Virgin Mobile • Launched in UK in 1999 • Currently present in 6 countries • Failed in Singapore
  • 4. Virgin Mobile – Operational Model • Leased Network – No network maintenance issues • Focus on Consumer Needs and Wants • Revolutionary – Going with what Virgin stands for
  • 5. American Cellular Market • Saturated – Everybody who should use a mobile is using one and if one is not using a mobile, its because he does not need one. • Post Paid Based – 92% of all customers are on a contract basis • High Advertising – Verizon budget: $650 Million • Unserved Youth Market – No carrier was targeting this segment
  • 6. Target Segment • The Youth Segment – High School and College Students – 15 to 29 year olds • Open to new products – open to uses • Untargeted till now • Virgin Mobile decided to market the mobile as much more than a device to make calls – messaging, ringtones, downloads etc.
  • 7. VirginXtras • Extras for the Target Segment – Collaboration with MTV for downloadables and airtime – Text Messaging – Ring Tones – Rescue Ring – Fun Clips – Music Messenger – Etc etc
  • 8. Distribution • No Salesmen – Strategic Distribution • No retail outlets • Kept in Stores frequented by youth – Dollar Stores etc • Available at retail shelf as any other electronic product
  • 9. Packaging • Attractively packed for the Younger Generation • Changeable Clamshells
  • 10. Promotion • Low Budget • Target Segment Oriented • Street Marketing • Unusual Launch • Articles in opinion-leading magazines
  • 11. Pricing • 3 options – Clone the industry prices – “Price below the Competition” – “A whole new Plan”
  • 12. Suggestion • Create a new pricing plan – Young Generation knows about hidden costs – Young Generation cannot enter into contracts – Should have the ability to stay hidden from parents
  • 13. Suggestion Contd. • Should be based on Current Industry Pricing Plans – The pricing should be new, but should be based on existing plans. • Separate Text messaging plans and Download plans – These will not be billed – On a pay first, use later basis
  • 14. Suggestion Contd. • Finally, Create a plan that the intended user can support, i.e. Cheaper than normal • Since we do not have Salesperson to explain our products, we need to have a simple pricing plan that the user can understand, If possible the plan should be similar to others
  • 15. THANK YOU QUESTIONS?

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