Virgin Mobile
Given VMs target market, VM should structure its pricing model based on option 3. Virgin Mobile should institute the whole new plan model based on the fact that it is a radical departure from the rest of the cell phone industry. Refer to the Virgin brand values to find that one of their core values is to move into areas where customers have traditionally received a poor deal and offer something better, fresher, and more valuable. Virgin also takes pride in offering innovation and a sense of competitive challenge. Given the values of Virgin, the radical new pricing strategy offered by option 3 fits nicely with Virgin's core values. However, a final pricing decision should be based on much more than core values. Many other regional carriers and smaller national carriers account for the remainder of market share. While LTV calculated on Virgin's option 3 may not be as high as the industry, Virgin's approach to entering the market may be worthwhile to accept a lower LTV if the entry approach creates demand for their services.
In choosing an option, the core values, target market, and pricing scenarios should all be considered before making a decision. One important note about the target market is that 14-24 year old consumers have little to no experience with contracts and typically have poor credit scores. Additionally, the 14-18 year old consumers must have a parent sign a legal contract. Given these facts, it appears that a marketing campaign directed at 14-24 year old consumers excludes those individuals, typically parents, who must agree to the contract ...
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...yes of the customer.
The major carriers have been slow to target this segment given the reasons listed above and others such as poor credit scores, inability to sign legal contracts, focus on working adults and business needs, and lack of information about this segment. Additionally, this segment has been slow to accept the terms of the existing carriers due to complexity of pricing, long-term contract requirements, and mistrust of the carriers' advertisements and marketing gimmicks. The carriers deem long-term service contracts a necessity of their business model and are unwilling to change this method of pricing. Teens and young adults cannot or will not accept these terms, therefore, the market segment remains unpenetrated.
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
...e my competition brand will gain more customers since teenagers nowadays want to appear youthful but mature. Recognizing the tweens as being unbeneficial and reducing these customers, we will lose market share but still improves effectiveness.
Imagine if nobody had a cellphone in today’s world. That’s why today everybody has some form of a cellphone contract with the four major companies (AT&T, Sprint, Verizon or T-Mobile) or a less know cellphone provider. AT&T and Verizon Wireless provide more than the other two major companies.
When American Express first came about, it would fit the assumed picture of a typical call center: a tall building filled with thousands of service agents aligned on every floor. For years, a typical work-day for each employee consisted of repeated, recorded, scripted, and timed phone conversations. Today, though, it is a whole new world. Today, no two conversations are the same. American Express finally realized that opening the gates and allowing employees be themselves would sell more product than ever before.
For this report, our team performed a scan of the general environment concerning T-Mobile. Topics which were reviewed include the economy, demographics, technology, legal and political events, and social attributes. Significant events and trends dealing with the segments are analyzed throughout.
“Few public opinion polls exist concerning the burgeoning youth marketing industry. We therefore conducted an online survey of 978 U.S. residents in the Spring of 2004. Results suggest that a large majority of respondents believe: a) that the youth marketing industry is harmful to children and has questionable ethical practices: b) that the industry contributes to a variety of problems common in youth: c) that most of the marketing which takes place in schools is unacceptable: and d) that marketing directed at children under 8 years of age should be prohibited”, (Kasser and Linn).
strong global presence tha t dates back to 1882 when it opened a plant in
Choosing a cellular service provider can be a daunting task. Which carrier is right for your needs, is often the first question people typically asked themselves. What distinguishes one carrier from another? Which company offers the consumer more for their money? Americans spend billions of dollars each year on wireless service. Fortunately for consumers, the market is flooded with cellular providers and plans. All you need to do is pick one; but is it that simple? It's easy to become disoriented with all the data usage, GB, texting data, talk time, and of course monthly fees. Preforming some research may prevent stressful experiences before committing yourself to a two year contract. In times past prepaid was stigmatized as a "little to no credit" option for individuals desiring to own a wireless phone. This just isn't the case anymore. Primarily, most companies offer prepaid plans which would prevent shoppers from becoming lured into their lengthy contracts. By comparing AT&T, T-Mobile, and Verizon, three of the leading carriers to a fourth rapidly growing company's prepaid plan offered through Straight Talk, any consumer should be able to select the right provider to meet their specific needs. Currently, the average consumer tends to review service plans presented by providers. Ideally, unlimited is what everyone seeks for but not all companies offer. Selecting a provider solely by their talk, text, and data plans merely isn't good enough. Consumers should dig deeper to investigate coverage, data, terms, rates, and overage. Subsequently, another question that should be asked is if a contract plan fits your lifestyle over prepaid. AT&T offers unlimited talk and text with no contract for $65 a month. It covers 2 GB of data for on...
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint, MCI, and AOL, but simultaneously the very high cost involved with entering and competing in this industry also makes it very unattractive for new entrants. These are just some of the big names who are planning to and are presently providing parts of the pipe dream that AT&T seems to seek. In this industry it is very important to have customer awareness of the line of products you carry. Most of the public hears the name AT&T or Sprint or MCI and they think telephone bills but many consumers do not realize that these companies have expanded their field of services from cellular phones to wireless web services. The reason mainly being the lack of marketing, and direct consumer advertising provided by these firms on the other line of p...
Students do not have the education needed to use credit cards responsibly. Nellie Mae (August 2007) states that 93% percent of students would have liked more information on financial management topics before they started school and want financial management education made available to them now. This is proof that students crave the education before getting into debt. Allowing credit companies to market their product on campus is too much of a temptation ...
The following report will analyse Vodafone and their current position in the international market. This report will cover the competitive strategy of Vodafone and their influence of products and services in relation to the demand of the market.
The explanation behind this is that the gadgets, for example, iPods and iPads are anything but difficult to use because of their touch screen quality which is useful for youngsters. In addition, folks can download learning diversion applications on Apple gadgets to teach youngsters and children. Grown-ups are likewise one of Apple Inc.'s target markets. The new IPhone and other product line will be valuable to grown-ups for their ordinary needs, for example, telephone calls, map headings, web association, records and cameras. Due to the premium prices charged for Apple products, the best target consumers are the wealthier teenagers. The next convient target market are millennials who are the next demographic after the teenagers. Millenials constitute a perfect target market. This is because they are hooked into technology and they would enjoy exploiting the numerous benefits the new products will provide. Consequently, this will increase the level of sales and overall wealth for the company (Annacchino, 2007). In conclusion, conveying these gadgets makes grown-ups lives much simpler for every day communication as these products are light and
There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher. Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand.
children with the hopes that they can influence their parents choices when it comes to buying a
They observed that millennials have less trust in banks and financial institutions because of the Great Recession. Millennials are more educated when it comes to financing big purchases compared to previous generations. The research also shows that 80% of millennials believe they should start saving for retirement as soon as possible. Most millennials were making their break in the “real world” when the Great Recession broke out, not only did this affect their trust in financial institutions, but it also made them take financial matters into their own hands. Millennials financial stability is on the rise and growing at a much faster rate than their counter generations. Millennials are becoming more diverse with their investment options and especially taking into consideration the need to save for their future. This article exemplifies this case for millennials and their