Problem Statement Virgin Mobil is venturing into the US market and their launch date is July 2002. The company’s goal is to have one million total subscribers by the end of the first year and three million by year four. In order to achieve their goals‚ the company has to come up with a competitive pricing strategy to attract and retain customers in an already mature market. Recommended course of action Despite a mature US market‚ the cellular service industry has a market penetration of only
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Eindhoven University of Technology‚ the Netherlands. The significant contributions of Jan Peter van der Hoek‚ Ewald Bruggeman‚ and Erwin van den Broek in gathering and analyzing case information are gratefully acknowledged. Please note that we prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. We have disguised some case information. Send correspondence to: James A. Narus Babcock Graduate School of Management
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Introduction: Virgin Mobile is a successful company based in the U.K. The company is well known for its brand extension and was the first company to introduce the Mobile Virtual Network Operator (MVNO) in the U.K.‚ where they leased network space form another firm instead of running a network in-house and as a result avoiding infrastructure and large fixed cost. The company was well known for its hip and trendy position in the U.K.‚ and catered to the youth market. Although they have had a couple
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Pricing Decision From Customer’s Standpoint The company tried to distinguish itself from the competitors standpoint by playing on the fact that the targeted segment “did not trust the prevalent pricing points” in the industry that hinged on the credit worthiness. The main practices prevalent were: 1. 90 % of all subscribers had contractual agreement for a period of 1 year to 2 years 2. Required rigorous credit check 3. Plans established “buckets” of minutes‚ on extra usage users penalized
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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
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Increasing Commodity Costs COKE faces a risk from increasing price movements for commodities that are required in for its operations. Changes in the prices of these raw materials will pass onto the customers if the company wishes to remain profitable. This change and potential increase in price of products could potentially result in a
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The Money Transfer Service - Competition in the global market Introduction In any given market a healthy business is one that looks for a strategy that will give it a competitive advantage over the rest of the players in the industry. This is key in penetrating the market and ensuring that it stays a notch above the others in the delivery of a good or service to its clientele. In many cases competition is quite healthy‚ as articulated below with regard to the wars between Coke and Pepsi Companies
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believe that pocket money teaches teenagers to be responsible with money. Others say that teenagers are too young to deal with money and that their parents should just buy them what they need. Do you think that being given pocket money teaches teenagers anything? Write 200-250 words Use the following plan: 1. Introduction. (State the problem) 2. Express your opinion and give reasons for it. 3. Give other people’s arguments and explain why they are wrong. 4. Make a conclusion Some
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How to Create a Mobile Home Money Machine by Lonnie Scruggs [pic][pic][pic]My ad read "Mobile Home For Sale--Will Finance" and the phone was ringing off the hook. Some of the callers didn’t even bother to ask what the selling price was‚ or the interest rate. Most of them were interested in only two things: "How much down and how much a month"? These are the type of people that will make you rich if you understand notes and seller financing. The financing alone will make you rich. But if you
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How To Make It In The Modeling Industry The best way to make it in the Modeling Industry (industry) is to do research and know the truth. “That is behind all the lies and deviousness and to know the real deal about the industry. The modeling industry is a devious and very secretive industry. The modeling industry is a devious and very secretive industry. “That only lets you know what they want you to know and what they want you to think or hear and see. There is a lot more to it than what meets
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