Case Solution Virgin Mobile

Problem Statement unadulterated Mobile is planning to assent the U.S. grocery store in July 2002. Their objective is to reach 1 zillion sum total subscribers by the reverse of the first-class honours degree year, and 3 million by year four. This represents 0.8% and 2.3% of the current commercializeplace size. Their biggest concern is how to price their service. utter(a) Mobile pauperisms their prices to be warlike, allowing them to make property without triggering off competitive reactions. Situation Analysis At the end of 2001, the U.S. had six national carriers and a number of regional providers. The market was considered to have reached maturity with one hundred thirty million subscribers. However, among consumers aged 15 to 19 penetration was well-nigh 17%. Consumers aged 15 to 29 had poor extension feeling and they were considered to be low users, therefore they were non as kind to current players. The approach to acquire a node was nearly $370 and the average monthly bill was $52. The average cost to take to heart one customer was $32. Virgin Mobile was sufficient to identify this niche, its needs and where they normally bought for electronics. The company knew that these customers usage was uneven and that they did not like the confusion current rates created. Customers cherished clear, ductile plans.

They were unable to predict their own usage so they usually ended up paying more than they cute to. breaker point hours rates, extra minutes and one-time be increase monthly bills unexpectedly. Pre paid plans were unusual because of prohibitive determ ine (starting at 35 and as high as 75 cents)! In 2001 mobile entertainment represented $10 zillion and was communicate to increase steadily over the next hardly a(prenominal) years. Alliances with MTV, VH1 and nickelodeon were going to be Virgin Mobiles of import communication strategies to position the brand with potential customers. Alternatives Virgin was considering trey pricing options to introduce the brand. The first one was basically clone the Industry Prices with a few differences, so that they...If you want to enamour a full essay, order it on our website: OrderCustomPaper.com

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