Virgin Mobile Case Answers

1) Which option would you choose and why?

• I would go for a “whole new plan”. Well, even tough other pricing plans are logical and might be even profitable since they are entering a neglected market where their target is 14-24 year old people, they are flexible enough to try something new so that they can really meet the needs of their targeted market while they are making profits and creating loyalty, as well as recognition from young people.

• This plan is very radical and can be very risky but once it achieves its goal, the outcomes will be great for Virgin Mobile. First of all, no contracts seem very risky but considering 14-24 youngsters, they would highly appreciate the idea that they go to a tech store see the package, go to the cashier, by the product with their pocket money and perhaps, psychologically they may feel that they are a grown up.

• A phone for a teenager is more than a tool for communication but a fashion accessory and a personal statement as Gail Mcg O Vern stated. In some cases, being the first carrier of a youngster may lead to a loyalty between the brand and the customer. For example, I still use the same carrier, I had in high school even tough they are relatively expensive than other carriers but to me the best among all because the services they provide. This can turn up to a emotional issue sometimes.

• Plus not only teenagers but also other customers who are out of their target market can benefit from no contracts such as tourists, businessman who are staying for a limited time period in the country, housewives or people whose credits are not approved by competitor carriers.

• Having pre-paid minutes is another attractive point for their target market. Especially young people know how long they are going to be able to speak and they may feel they are on safe ground compared to monthly bills. Parents would feel more comfortable by providing their kids a pre-paid card since they can control the spending on their phone....