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Coke vs Pepsi - India

In: Computers and Technology

Submitted By Julaikha
Words 672
Pages 3
For their target market and any new product entering a saturated market, the pricing should be low if not the cheapest product out in the market. It should cater for customers who value pricing in choosing their products. The pricing should appeal to their target market and help create a young and hip image. This structure should accomplish the goal of attaining a sizable amount of the market share and stay profitable at the same time. It should convey the message that their product has a higher quality than the other options available in the market, and it should be priced that it is not the most expensive, so more consumers could afford it. This pricing structure will create the air about the product as being the new hip product to have which this generation wants the latest products that will make them look cool or good. The case presents 3 different options each one of these provides a unique way Virgin Mobile USA can enter the market and gain a following. However, one option stands apart from the others and fits with what Virgin Mobile is trying to convey.

Q3. Virgin Mobile’s targeted market selection of 15-29, if marketed successfully, had the greatest potential for growth since it was the least penetrated. Consumers are often very brand loyal, especially with products or services that take up a larger part of their income. This meant that Virgin Mobile must promote their own products and services, and also concentrate on why they differ from the competition to avoid failure risk. Another issue with targeted segment is that this demographic may not be employed or have lower salaries. Obviously when an individual does not have an inflow of money, he has no way of payment to a service provider. Either this is the case, or the parents of these children do not have enough disposable income to provide a cell phone and service to their child. Before Virgin Mobile,...

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