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Virgin Mobile USA: Youth Market Strategy

Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

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13 views15 pages

Virgin Mobile USA: Youth Market Strategy

Virgin Mobile USA aimed to target the youth market of 15-29 year olds with its mobile service. It planned to distribute phones through unconventional stores frequented by youth and package phones attractively for younger customers. Virgin Mobile's strategy was to offer extra services beyond basic calls, like texting, ringtones and downloads through partnerships. It considered different pricing options, from matching competitors to creating a wholly new plan. The document suggested a new plan that was cheaper than normal, with separate texting and download plans paid upfront to allow hidden use from parents on a budget youth could support.

Uploaded by

bsush
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

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)
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
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
Packaging
• Attractively packed for the Younger
Generation
• Changeable Clamshells
Promotion
• Low Budget
• Target Segment Oriented
• Street Marketing
• Unusual Launch
• Articles in opinion-leading magazines
Pricing
• 3 options
– Clone the industry prices
– “Price below the Competition”
– “A whole new Plan”
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
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
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
THANK YOU

QUESTIONS?

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