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Case Study-Virgin Mobile

Case Study-Virgin Mobile

Case Study-Virgin Mobile

Please find attached Virgin Mobile case and answer

REQUIRED COMPONENTS

1. Summarize the relevant points

2. Summarize the business problem / crisis faced by the marketing manager.

3. Analyze / gain insights from included data.

4. Describe possible decisions.

5. Declare what you find to be the best solution / based on the nuances situation, your analysis

“GOOD BECOMES GREAT” COMPONENTS

1. Generalize the case to decisions made in competing companies, similar industries, or completely different sectors of the economy.

2. Prognosticate the future for this kind of case in the future.

3. Make some determination about how changes in the social, political, legal, or technological sphere will affect this industry or the decision faced.

4. Write from the experience of your own experiences in industry.

Analyze the case study and answer these questions along with required components and “GOOD BECOMES GREAT” components.

1. Given Virgin Mobile’s target marketing (14 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 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 of the financial viability of your pricing strategy.

3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service contracts, the big carriers churn roughly 24% of their customer each year. Clearly, there is very little loyalty in this market. What is the source of all this dissatisfaction? How have the various pricing variables (contracts, pricing buckets, hidden fees, off-peak hours, etc.) affected the consumer experience? Why haven’t the big carriers responded more aggressively to customer dissatisfaction?

4. What do you think of Virgin Mobile’s value proposition (the VirginXtras, etc.)? What do you think of its channel and merchandising strategy? 5. Do you agree with Virgin Mobile’s target market selection? What are the risks associated with targeting this segment? Why have the major carriers been slow to target this segment?


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