03-01-2013, 04:53 PM
Virgin Mobile USA: Pricing for the Very First Time
1Virgin Mobile.ppt (Size: 173.5 KB / Downloads: 27)
Virgin Group
UK Based – Top 3 brands in UK
Known for Brand Extension – 200 Virgin Brands
Some Successful – Virgin Music
Some Failed – Virgin Cola
Virgin Mobile
Launched in UK in 1999
Currently present in 6 countries
Failed in Singapore
Virgin Mobile – Operational Model
Leased Network – No network maintenance issues
Focus on Consumer Needs and Wants
Revolutionary – Going with what Virgin stands for
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
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.
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
Promotion
Low Budget
Target Segment Oriented
Street Marketing
Unusual Launch
Articles in opinion-leading magazines
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
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