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Virgin Mobile Case Study

Virgin Mobile is a mobile phone company owned by the Virgin Group. The company was founded in 1999 and launched its service in the UK in 2002. Virgin Mobile offers both pay-as-you-go and contract mobile phone plans.

In 2006, Virgin Mobile entered the Australian market. However, the company’s Australian operations were sold to Optus in 2013.

Virgin Mobile has also expanded into other countries, including Canada, South Africa, Chile, Colombia, France, India, Poland and Spain.

The company has been facing some challenges in recent years, including competition from other mobile phone companies and a decline in demand for pay-as-you-go plans. In response to these challenges, Virgin Mobile has embarked on a new strategy that includes expanding its product range and increasing its focus on customer service.

Virgin Mobile’s new strategy appears to be paying off, with the company reporting strong growth in both revenue and customers in the first half of 2016. The company is also investing in new initiatives, such as a partnership with Virgin Atlantic to offer in-flight mobile phone services.

Looking forward, Virgin Mobile is well positioned to continue its growth trajectory and build on its strengths in the mobile phone market.

Virgin Mobile was founded in 1999 and is a mobile phone company owned by the Virgin Group. The company offers pay-as-you-go and contract mobile phone plans. It has expanded into other countries, including Canada, South Africa, Chile, Colombia, France, India, Poland and Spain. In 2006, Virgin Mobile entered the Australian market but sold its Australian operations to Optus in 2013.

Virgin Mobile has cleverly tailored its marketing mix to target younger consumers. For example, it offers product features that appeal to this demographic group, such as text messaging, downloading information from phones, ring tones, faceplates and graphics. In addition, Virgin Mobile provides access to popular entertainment on phones.

So, Virgin offers phones with these capabilities. Another example from the product element would be that Virgin is willing to offer cell phone service without a contract, which is appealing to college students and people who do not have a regular income. They also offer pre-paid minutes, which is again appealing to those who do not have a lot of money.

From a pricing perspective, Virgin’s no-contract and pre-paid minutes options are priced very competitively when compared to other providers who require a contract. For example, AT&T charges $39.99/month for 450 minutes with a one-year contract while Virgin charges $35/month for 400 minutes with no contract. This makes Virgin an attractive option for budget conscious consumers.

Virgin’s place element is also very well developed. They have a network of over 10,000 retail locations across the country where consumers can purchase phones and minutes. This is important because it makes Virgin accessible to consumers who may not have credit or who want to avoid signing a contract.

Finally, Virgin’s promotion mix is also aimed at the younger demographic. They use aggressive marketing tactics such as celebrity endorsements, sponsorships, and guerilla marketing campaigns. For example, they sponsored the Virgin FreeFest music festival in 2010 which featured performances by Jay-Z, MGMT, and LCD Soundsystem. This type of event resonates with the younger demographic and helps to build brand equity.

Overall, Virgin has done a good job of targeting the younger demographic with its marketing mix. The company has positioned itself as a provider of affordable, no-contract cell phone service with a wide array of phone choices and features. It has also utilized celebrity endorsements and event sponsorships to reach its target market. This has helped to make Virgin Mobile a successful brand within the competitive mobile phone market.

Since phones have become more of a fashion accessory or personal statement for younger generations, Virgin Mobile created “VirginXtras” to brand themselves towards that market. This involves the delivery of popular content, features, and entertainment. They secured an exclusive agreement with MTV networks to deliver music, games, and other types of content to Virgin Mobile subscribers over a span of several years.

This was a very promising move on their part, as the MTV brand is highly recognizable and trusted by younger generations.

However, there are certain risks associated with this type of content delivery. First of all, it is important to make sure that the content being delivered is actually popular and desired by the target market. Secondly, it is important to ensure that the content can be delivered consistently and without any technical difficulties. If subscribers are not able to access the content they want when they want it, they will likely become frustrated and look for another service provider.

Virgin Mobile has done a good job so far in terms of delivering popular content to its subscribers, but it will need to continue to monitor the situation closely to make sure that it does not lose its edge in this area.

The company also offers an online VirginXtras store in which subscribers can browse and buy content. The combination of the powerful Virgin brand, unique VirginXtras, and low prices makes Virgin Mobile a very appealing alternative to the major providers.

In terms of its organizational structure, Virgin Mobile is a joint venture between Sprint Nextel Corporation (51%) and the Virgin Group (49%). The company uses a virtual organization structure, meaning that it does not own any physical assets such as retail stores, cell towers, or switching equipment. Rather, it leases capacity from Sprint Nextel and then resells that service under the Virgin Mobile brand. This type of structure allows the company to be very nimble and responsive to changes in the marketplace.

Let’s look at the elements of placement and distribution next. Virgin Mobile implemented a channel marketing strategy that was more aligned with its target-market segment. They decided to distribute their goods through channels where young people shop, such as Target, Sam Goody, music shops, and Best Buy. These are the places where kids buy consumer electronics products, such as CD players and MP3 players.

For example, 50% of Virgin’s handsets were sold in Target stores.

The main objectives of this strategy were to:

– Increase brand awareness

– Make it easy for the target market to find and purchase the product

– Increase sales

Virgin Mobile also invested in point of sale (POS) displays that would attract attention and get people interested in the product. This was especially important because many people did not know that Virgin Mobile existed. The POS displays were very effective and resulted in a significant increase in sales.

Another key element of Virgin Mobile’s marketing mix is pricing. The company has adopted a pricing strategy that is very competitive. They offer a variety of plans that are designed to meet the needs of different types of customers. For example, they offer a pay-as-you-go plan for people who do not use their phone very often, and a monthly contract plan for people who use their phone more frequently.

Virgin Mobile’s marketing mix has been very effective in helping the company achieve its objectives. The company has successfully increased brand awareness and made it easy for its target market to find and purchase its products. As a result of these efforts, Virgin Mobile has experienced significant growth in recent years.

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