Case Solution Virgin Mobile

Problem Statement unadulterated Mobile is planning to participate the U.S. grocery store in July 2002. Their objective is to reach 1 one thousand thousand sum total subscribers by the set aside of the number 1 year, and 3 million by year four. This represents 0.8% and 2.3% of the current grocery store place size. Their biggest concern is how to price their service. utter(a) Mobile pauperisms their prices to be warlike, allowing them to make bills 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 tonus and they were considered to be low users, therefore they were non as entrancing to current players. The approach to acquire a node was approximately $ 370 and the average monthly bill was $52. The average cost to servicing one customer was $32. Virgin Mobile was sufficient to site 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, conciliative plans.

They were unable to predict their own usage so they usually ended up paying more than they cute to. extremum hours rates, extra minutes and one-time be increase monthly bills unexpectedly. Pre paid plans were unusual because of prohibitive determine (st arting at 35 and as high as 75 cents) In ! 2001 mobile entertainment represented $10 zillion and was project to increase steadily over the next hardly a(prenominal) years. Alliances with MTV, VH1 and jukebox were going to be Virgin Mobiles chief(prenominal) communication strategies to position the brand with potential customers. Alternatives Virgin was considering collar 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 permit a full essay, order it on our website: OrderCustomPaper.com

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