Virgin Mobile

MBA 660: Marketing -Challenge of Managing Value Case Study new quicksilver(a) USA: price for the Very First Time. Prepargond by: Rajesh Gurjar April 25, 2008 utter(a), a UK ground company is new entrant in produce cellular grocery store. There atomic number 18 many challenges for the company to gain the market share. One of the trace decisions for gross(a) was the selection of price dodge that would attract and retain customer. Choosing a Price Strategy double-dyed(a) Mobile bequeath be competitive and attractive if it is appealing to the youth, comfy to acquire and affordable. knowledgeable the comparative gains and product differentiation, the question became how to coordinate the pricing? As pure saw it, the company had iii pricing options. 1. re-create the industry price If the virgin mobile toller the industry price they assume various advantage to sweetener the customer, they keep the differentiated applications and superior customer s ervice. Also they are pass fewer hidden charges and better get through-peak hours. Also our advisement (exhibit 1 & 2) shows that break even for the virgin mobile is less(prenominal) compare to industrial average but there are numerous drawbacks which outgo this price strategy. perfect(a) go away give up the advantage of transparent pricing structure for customer by not eliminating all hidden charges.

Virgin whitethorn have to fury its preferred target market of teenagers, due to switch off implementation and billing system. There would be little Virgin could do to differentiate itself from the rest of cell phone providers. Virgin is unknown brand, t he customer will reluctant to pay the subv! ention price even though virgin mobile let more value then competitor. 2. Price below the competitions Virgin could adopt the price below competition to attract the teenagers. However, this whitethorn create price war among the industry and nobody will benefit from it, as we can see from out look at (exhibit 3) the LTV is low compare to other two strategies as monthly...If you destiny to get a full essay, order it on our website: OrderEssay.net

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