Q.1 Given Virgin Mobile's target market 914 to 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of subsidies, hidden fees, average per-minute charges, etc.). I will recommend third pricing strategy, which is to come up with a completely new plan, since we are trying to target
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quality, innovation and sense of competitive challenge is what Virgin stands for and its aim is to look for opportunities, which provides a better offer for its customers. That’s what drives Virgin Mobile USA to focus on youth market targeting customers between the ages of 15 and 29, which is a group that hasn’t been targeted as much by major cell phone providers. Virgin Mobile has proposed a 50-50 joint venture with Sprint, in which Virgin Mobile would buy minutes from Sprint as needed. Overall, this goal
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Case Study:-Virgin Mobile USA: Pricing for the very first time Introduction: Virgin Mobile Company led by Branson, is a British-base company. Dan Schulman was chosen as CEO in 2001. He was trying to find a niche market in US for virgin mobile. US market was under-served and dissatisfy with existing Carriers. Youth were ignored and no carrier had capitalized on this segment. The company entered in a 50-50 joint venture with US-based Sprint in which Virgin will use Sprint network for US services
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Introduction and Key Issues Virgin, a U.K.-based company is one of the top three most recognized brands in Britain. Virgin’s cellular operations in the U.K. had signed up approximately 2.5 million customers in just three years. The company had a history of brand extensions and one of these extensions is the launch of their wireless phone services in the USA called "Virgin Mobile". The key issue for Virgin Mobile is to select a pricing strategy that will both attract and retain subscribers. There
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Cody Rigsby \ 1. We decided that that pricing strategy three “a whole new plan” would be the most effective at positioning Virgin mobile as the brand for adolescents and young adults in the United States. This pricing strategy is easy for young consumers to understand and afford. The phones are at the most expensive $100, which a high school student can afford with half of their part-time job paycheck or a teenager who has an allowance can save up for a month and buy. It is also at
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Virgin Mobile USA : Pricing for the Very First Time 1) Virgin Mobile targets the 14 to 24-year olds market. The case lays out three pricing options. Which option woul you choose and why ? All three options are very interesting for Virgin Mobile to introduce the American market. Considering Virgin Mobile’s background, goals and strategy, I would have choose the option 3 « A Whole New Plan » There are few reasons that explain this choice : Firstly
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Virgin Mobile 1. Given Virgin Mobile’s target market (14 to 24-yeard-olds, how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g. contracts, the size of the subsidies, hidden fees, average per-minute charges, etc.) 2. How confident are you that the plan you have designed will be profitable? Provide evidence
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Virgin Mobile USA: Pricing for the Very First Time - CASE STUDY Kiran Chimmiri Virgin is a U.K-based company led by Sir Richard Branson and is one of the three most recognized brands in Britain. Dan Schulman has been appointed CEO of the Virgin Mobile USA and is now trying to determine what pricing strategy would be most efficient in attracting and sustaining customers in the USA. There are several other decisions which also need to be made, such as unique features Virgin mobile can offer to differentiate
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Problem Statement Virgin Mobile is launching its services in USA in the summer of 2002. It has to decide on its pricing strategy that would attract and retain subscribers. Situation Analysis Customer: The target consumer group is youth aged between 15 and 29 years. Penetration in this segment is significantly lower and the growth rate is projected to be robust in the coming years. Most of them have a history of poor credit quality, no credit cards and no facility to pass credit checks. The revenue
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Virgin Mobile USA is a brand extension of Virgin, a U.K.-based company founded by Sir Richard Branson. The company led by CEO Dan Schulman was founded under Virgin's mission statement which stated "we believe in making a difference. In our customer's eyes, Virgin stands for value, for money, quality, innovation, fun and a sense of competitive challenge... we look for opportunities where we can offer something better, fresher, and more valuable, and we seize them. We often move into areas where the
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