Virgin Mobile Case Analysis

Virgin Mobile has strategically shaped its marketing mix to appropriately target the younger demographic. First, lets look at it’s the product element. The younger demographic is more open to new things like text messaging, downloading information from their phones, ring tones, faceplates, graphics, having access to popular entertainment on their phone, etc. For younger people, phones are less of a tool and more of a fashion accessory or personal statement. To appeal to these needs, Virgin Mobile created “VirginXtras,” which involve the delivery of popular content, features, and entertainment. They signed an exclusive, multi-year content and marketing agreement with MTV networks to deliver music, games, and other such content to Virgin Mobile subscribers. Consumers have access to branded accessories and phones, graphics, ring tones, text alerts, and voice mail. In addition to the MTV-branded content, Virgin Mobile also included the following VirginXtras: text messaging, online real-time billion, rescue ring (a prearranged “escape” call such as to avoid a bad date), wake up calls, fun audio clips, a hit list of top 10 songs in which subscribers can listen to and vote for, a music messenger that allows subscribers to shoot a message to their friends so that they listen to a song, and a movie application that provides descriptions, show times, and ticket purchases in advance. All of these features appeal to the youth market, and generate additional usage and loyalty.
Next lets look at the elements of placement and distribution. Virgin Mobile adopted a channel strategy that was more closely aligned to its target-market segment. They decided to distribute their products in channels where youth shop, which means places like Target, Sam Goody, music stores, and Best Buy. These are the stores that kids usually buy consumer electronic products, such as CD players and MP3 players. Virgin Mobile decided to package their products in similar consumer electronics packaging so