TUSCAN LIFESTYLES: ASSESING CUSTOMER LIFETIME VALUE Tuscan Lifestyles catalogs markets a number of products such as cookware‚ tableware‚ linens and decorative home accessories. Due to the nature of the products and the business‚ it is difficult for the company to know whether or when the customer makes additional purchases. The company is looking to see whether a customer’s initial purchase amount is predictive of the overall lifetime value of the customer and base their future marketing plans
Premium Marketing Purchasing Procurement
Virgin mobile pricing Document Transcript VIRGIN MOBILE USA – ‘FIRST PRICE’ STRATEGY (An analysis of the Pricing Decision alternatives that Virgin has to undertake to create an alternate customer segment and monetize their buying power)VIRGIN XTRAS – OVERVIEWThe Virgin Mobile USA service involved content‚ features and entertainment‚ called “Virgin Xtras”.Collaboration with MTV networks as it was the most recognized youth brands in the country and unparalleled reach forthe under-30 market segment:
Premium Price Costs Variable cost
Customer Lifetime Value (SMALL BOOK 167-177) * Customer lifetime value (CLV)‚ is the net present value of the cash flows attributed to the relationship with a customer. * The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction‚ rather than on maximizing short-term sales. * Two approaches to CLV: * Disaggregate (“spreadsheet”)– Complex and cumbersome‚ but allows you to build in any assumptions
Premium Marketing Time Profit
analyze the best possible pricing strategy for the Virgin Mobile venture into the United States. 1.2 Situation Virgin is a global company that has 200 corporate entities involved in everything from planes and trains to beverages and cosmetics. The newest addition is the Virgin Mobile USA entity‚ which was created after Virgin was able to successfully penetrate the U.K. cellular market. However‚ the company was not so successful with the mobile services in other parts of the world. The company has
Premium Mobile phone Virgin Group Mobile network operator
CROON ELEKTROTECHNIEK‚ B. V.© James A. Narus James C. Anderson * May 2002 * James A. Narus is Professor of Business Marketing‚ Babcock Graduate School of Management‚ Wake Forest University. James C. Anderson is the William L. Ford Distinguished Professor of Marketing and Wholesale Distribution‚ and Professor of Behavioral Science in Management‚ Kellogg Graduate School of Management‚ Northwestern University. He is also the Irwin Gross Distinguished ISBM Research Fellow at the Institute
Premium Paper
on extra usage users penalized heavily 4. Charged less for off-peak than on-peak minutes‚ but the off-peak period had shrunk 5. An additional fee was added to monthly bill‚ including taxes and services charges. From Company’s Standpoint Virgin Mobile USA had to fix all these problems prevalent in the industry while taking a pricing decision. The main limitation it faced was that the prices should be competitive and portable without triggering of competitive reactions. There are three options
Premium Costs Cost
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
Premium Virgin Group Mathematics Pricing
Virgin Mobile USA Pricing Strategy1.) Given Virgin Mobile’s target market (14 - 24-year-olds)‚ how should it structure its pricing? The case lays out three pricing options. Which options would you choose and why? 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.)Given Virgin Mobile’s (VM) target market (14 - 24-year olds)‚ I would recommend the company to structure its pricing
Premium Mobile phone
Virgin Mobile USA Analysis [pic] August 08‚ 2009 Table of Contents Table of Contents 2 Introduction 3 Internal Factor Evaluation (IFE Matrix) 4 External Factor Evaluation (EFE Matrix) 5 Porter’s Five Forces 6 Porters Generic Forces 6 Financial Analysis 7 Competitive Profile Matrix 8 The Marketing Mix-The 5 P’s 9 Key Issues 10 Boston Consulting Group (BCG Matrix) 11 GE / McKinsey Matrix 12 Space Matrix 14 Recommendations 16 Introduction Virgin Mobile is a great company
Premium Mobile phone
Considering the youth that Virgin Mobile is targeting‚ we conclude that the best strategic decision will be to establish a new plan that offers no contract requirements‚ lower than industry average minute prices‚ fixed minute rates with no additional or hidden fees‚ prepaid plans internet and text messaging included and subsidies of around 40 dollars per cellphone. This new plan is necessary to differentiate Virgin Mobile from its competitors and retain market share. By having the new venture with
Free Mobile phone