Case Analysis: Virgin Mobile USA
What we are analyzing here is pricing of a service in a market which is saturated, as it has reached maturity, is highly capital intensive and in which a large amount of competition prevails. Virgin however is a known brand name with an extremely diversified portfolio. It has experimented successfully with the telecom business in the UK but failed in Singapore. It now targets the USA market; the problems before it are to: come up with an appealing offer and ensure a run rate of 1million subscribers in the first year and three million by the fourth year.
Keeping with the brand strategy and philosophy of making a difference, it enters areas which are unserved or poorly served which in this case is the age group of 15-29 due to their low frequency of usage and poor credit rating. While targeting this segment lifestyle and psychographic factors are important as usage is inconsistent and based on school and vacation periods.
Virgin tie ups consist......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 2191
Approximate Pages: 9 (260 words per double-spaced page) |