Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Virgin Mobile USA: Case study - Essay Example

Comments (0) Cite this document
According to Mcgovern (2007), Virgin Mobile is a company located in the U.K. It is well recognized for its brand extension and the first organization to have had Mobile Virtual Network Operator (MVNO). It is also known for its stylish position of the mobile market targeted for the youth market from age 15 to 29 years. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Virgin Mobile USA: Case study
Read TextPreview

Extract of sample "Virgin Mobile USA: Case study"

Virgin Mobile USA Case Analysis According to Mcgovern (2007), Virgin Mobile is a company located in the U.K. It is well recognized for its brand extension and the first organization to have had Mobile Virtual Network Operator (MVNO). It is also known for its stylish position of the mobile market targeted for the youth market from age 15 to 29 years. I agree with this choice of target market selection as young people mostly use mobile phones to communicate and socialize with their friends and loved ones. Globally, it is known that young people interact more effectively than older people do. There are mostly likely to purchase the commodity to fulfil their need of socializing. Youths particularly teens mostly use MMS and SMS that is affordable. Mcgovern continues to indicate that, young people are so much addicted to mobile phones that they can hardly live without them. Internet and media contact via mobiles is much preferred by youths as compared to other segments. Online games and internet is most used by youths as most identify themselves with the emerging technology. With this in mind, I agree with the Virgin mobile’s target market selection of young people as their lives revolve technology. However, the risk associated with targeting this market is that most of them depend on their parents for their needs thus becomes hard to purchase an expensive choice. Most people in this target selection are students and few working. Secondly, there is a risk in targeting this target group in that a Company needs to set affordable prices that meet this group’s needs. Lastly, either most consumers are leaving at home or in college, thus their usage is inconsistent as a time they may not use the phone especially when in school or vacation. Given the Virgin Mobile’s target market (14-24 years old) the Company should structures it’s pricing at an affordable price that is not too low to the Company and still not high for consumers. This flexibility makes youths to modify their plans to purchase what they want and need. The case lays out three pricing option that include Clone to the Industry Prices, Prices underneath the Competition, and the Whole New Plan Option. From the three pricing options, I would choose the third policy of the Whole New Plan that entails introducing different pricing structure with different pricing dimensions. When this is done, it eliminates contracts that would create a competitive advantage to reach the target group. In facts, the target group particularly those under 18 years would not need signing of contracts thus this would result to high customer acquisition. Lowering handset subsidies is a superior strategy that makes consumers feel more loyal and proud of the brand thus increasing their buying power. Off-peak hours are essential as they increase sales. Lack of hidden fees will beneficial as youths do not like such charges. By having simple pricing and marketing in a competitive way augment customer acquisition. Therefore, this option is best for the company for it has essential features like off-peak hours, prepaid package, no contract, and low subsidies that align to the target market. Financial Viability of the Whole New Plan Market share Subscribers (1st page) 1, 000, 000 Total Subscribers 130, 000, 000 Market Share 0.77% Monthly Revenue from call Minutes per customer 200 Charges per minute 0.425 VAS revenue 12.82 Total Revenue 97.82 Retrieved from: Lastly, the cellular industry is notorious for customer dissatisfaction despite the existence of service contracts, the big carriers churn roughly 24% of the clients yearly. The source of all this dissatisfaction is lack of planning as most companies fails to comprehend various strategies that retain clients and augments the company’s growth. This entails poor pricing plan that comprises of poor structure that is not competitive, and does not create profit. As a result, it creates dissatisfaction and in turn results to great loss. Typically, different pricing variables affect consumer experience differently. For instance, the Clone Industry Pricing has no real price distinction and consumers may not be willing to buy products. Pricing below the Competition has high chances of attracting consumers due to affordable prices. Lastly, the Whole New Pricing Plan motivates consumers to purchase products as most products are in different pricing and packaging. Categorically, Virgin Mobile is an organization with an exceptional image that gives consumers innovation, quality, fun, and value of money. In future, the Company intends to offer valuable products better than those of competitors do. Its choice of market requires innovation that attracts young people. Youths.The Company intends to create a friendly packaging similar to that of electronics item that in turn would enhance better appealing. Works Cited Mcgovern, Gail 2007, Virgin Mobile USA: Pricing for the Very First Time. Harvard Business School. Read More
Cite this document
  • APA
  • MLA
(“Virgin Mobile USA: Case study Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Virgin Mobile USA: Case study Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Virgin Mobile USA: Case Study Essay Example | Topics and Well Written Essays - 500 Words)
Virgin Mobile USA: Case Study Essay Example | Topics and Well Written Essays - 500 Words.
“Virgin Mobile USA: Case Study Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Virgin Mobile USA: Case study

Implications of Mobile Communication on Society

Lifestyle has changed and the mobile phone is gradually becoming a part of the culture of modern societies (Hulme & Peters).
Voice transmission is no longer the only way that mobile phones are used. It is a multi-purpose device. Mobile phone networks have become a new platform through which data, information and transactions are exchanged. It serves as an alarm clock, an address book, an entertainment device through games, and to a text message.
At the end of 2003, there were 1.35 billion mobile subscribers worldwide compared to 1.2 billion fixed line users (Shaping the Future Mobile Information Society). It has undoubtedly changed the lives of the people and the biggest factor which induces the purchase of mobile ph...
6 Pages(1500 words)Essay

Towards the Comparison of Specialized Courts in USA and India

Without specialized courts, resolution of complex matters would have been stalled and progress dampened.

Both countries have high educational standards and believe in an informed judiciary who are experts in their fields and these courts are presided by such persons. Justice is speedy in both cases and both give their judges penal and punitive powers.

Although there are many similarities, yet there are some differences both in content and in approach. Whereas the US believes in a more liberal outlook, giving greater emphasis to Human Rights, India lags behind due to its colonial and cultural legacies. The redeeming feature is that lead by its own global status as a growing economic power, it is trying to shed...
12 Pages(3000 words)Case Study

Country Study: Mali

The territory of Mali has had a great history. We have been centers of the Ghana Empire, the Mali Empire, and the Songhai Empire for about six centuries. Thereafter, during the 17th and 18th centuries, several small states developed along the Niger basin, but they fell during the holy war waged by Muslim leader Al-Hajj Umar, whose kingdom extended from Timbuktu to headwaters of Niger and Senegal. His successor, Ahmadu was defeated by the French in 1860. ( /mali.html)

As is well-known, we have had a turbulent past. We were a French colony for 80 years until we achieved independence. Now we are a multi-party democracy with Presidential form of Government. While the executive power rests with the...
6 Pages(1500 words)Case Study

The Case of R v Turnbull

The defendants planned to rob a bank’s customer deposits in the bank’s safe by posting a notice diverting the dropbox to another location, which they planned to burgle. Several customers did, in fact, drop their wallets loaded with money into the dropbox, however, one customer was suspicious and alerted the police. The strength of the prosecution’s case rested on the visual recognition provided by a police constable who clearly saw one of the defendants removing a sign from the bank premises and recognized him. On this basis, the court of appeal concluded that the appeal of the defendants could not stand. It was held that if visual identification had been the only evidence, the outcome would not have been definit...
10 Pages(2500 words)Case Study

The Popularity of Mobile Phone Marketing

The marketers of today should have a hawks eye on any new marketing trends and issues so that they can be adopted and addressed respectively and so that they benefit the marketing activities of the product to the maximum possible.
The current issues in marketing are those which have not been that prevalent/popular or even existent a year ago, and this is where the need for a spotlight on them arises. Marketers in the making need to have a close look at these current issues so that they can incorporate them into their marketing practices when they step into practical life. Not just those in the making, but it is essential for currently established marketers to be flexible for these current issues so as to provide the best mark...
10 Pages(2500 words)Term Paper

A Comparative Study of the Origins of Ethical Thoughts

Do you know what they dug out? -- Wires! It proves that two thousand five hundred years ago, in the age of Pericles, the Greeks had telephones”. The Jew laughingly retorted: “Recently they were digging in Jerusalem. They dug out nothing. This proves that three thousand years ago when Solomon was the king of Judea, the Jews had the principle of wireless!”

ETHICS AND DIVERSE DEFENITIONS: One of the Dilemmas of the civilized human society was the fight between the soul and the flesh or rather the body and desires. The question is how to divert human energy in an intelligent, controlled way? Searching answers to this question one lands in the premise of ethics, personal as well as social. Ethics (English)...
11 Pages(2750 words)Case Study

The Idea of Liberty in Sam Slime Case

... Sam Slime This could certainly be the case of the rich get richer and the poor go to jail, especially in a country that is trying to serve many masters. The government of the United States is certainly a political and governmental entity, but at it heart it has almost always been a voice of corporate business and expansion of wealth for the few. It operates seemingly under the principle guise of what is good for business is good for the people. One could say that the state of the economy today is the fallout of this mindset. In the “Sam Slime” case study we see the idea of liberty as applied by several masters. The first, when Sam Slime mugs you outright is a matter for governmental law and order. Cleary there is a criminal (Sam...
8 Pages(2000 words)Coursework

Analysis of OReilly v Mackman Case

Judicial review is a concept which is constitutionally undecided as it on one side, it shores up the rule of law, democracy, and pre-eminence of parliament by facilitating the courts to check the boundaries of government authority and on another side, the courts are open to the decision on the plants based on the fact of separation of authorities that are intimating with the verdicts of democratically elected institutions. Judicial review is not apprehended with the virtues of government assessment but deals with whether the deciding authority has remained within the legal boundaries and whether broad principles of rationality and fairness adhere. The constitutional basis of judicial review is debated as one view holds that it is...
8 Pages(2000 words)Case Study

Analysis of Tourism and Hospitality Law Case

 The main issue that needs to be tackled first is whether there is a valid contract between Richard Brat, carrying on trade as Brighton Greens, (buyer) and Molly and Kelly trading in First Grade Granny Smith apples as Holy Farm.

Apparently, there was, when considering their verbal and written mail sent by Richard to Holy Farm on August 1 reading as follows –“Please deliver 20 boxes –Granny Smith ‘Brighton Greens’. Cheque mailed.“

It may be seen that the mail order does not specify the category or grade of apples to be supplied, but one of the implied conditions of sale could be that the goods ordered need to correspond with the goods inspected and tested.

In th...
8 Pages(2000 words)Case Study

Conflict Between Researh and Ethics on the Tuskegee Syphilis Study

The Declaration of Helsinki by the WHO clearly states that in clinical trials involving humans the wellbeing of the subject should be of prime importance than the interest of science or society. This has been stated because at times in order to achieve the objectives of a study the investigators might overlook the welfare of the trial subjects thus jeopardizing their health in the process. According to ethical rules while comparing two treatment options the control group of the study must receive the best-known treatment available while the study subjects are given a potential newer treatment. Only when there is no effective treatment available a placebo-controlled group can be used for the study. There have been several trials th...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Virgin Mobile USA: Case study for FREE!

Contact Us