VIRGIN MOBILE

Virgin Mobile

[Name of the Institute]

Virgin Mobile

Answer # 1

Pricing strategy is one of the most important factors for any company to make, in order to attract customers. In the same way, the Virgin mobile has also focused on its pricing strategy so that they would attract, and retain subscribers (Lamb, 2008). For designing the strategies, Virgin Mobile has studied different customers to understand the pricing which will be accepted among the target audience. As it focuses on youth, it has to be very careful while taking the final decision on pricing. It does not have any flexibility in calling habits, and it always paying the same high price. It does not have any genuine price distinction, as consumers are not willing to switch over just for the Virgin Extras features.

Virgin mobile has adopted the strategy of finalizing the pricing which is slightly lower than the competitors pricing. The best way of attracting the customers and sustaining the subscribers is by proving them with the packages. It has given a bucket of minutes to its subscribers. The Strategy says that the price per minute should be set below the industry average in certain key buckets. It has targeted the young market that uses around 100 to 300 minutes in a month.

One of the challenges that Virgin Mobile had to face was how to set prepaid and post-paid prices. Majority of the users are post-paid; thus, it is essential to set proper pricing for it, as there are around 92 percent users of post-paid. Hence, Virgin Mobile has used the strategy of keeping their prices lower than the industry, and it has given peak hours charges, plus the minutes bucket for its users. Virgin mobile has been promoting itself through different advertisements, teasers, billboards, etc. It keep promoting its packages that it is providing to its customer, in order to sustain the subscribers.

Answer # 2

The best strategy that Virgin Mobile should use for promoting itself is by promoting its packages. It should design different deals for both prepaid and post-paid users. Low prices should be designed for the users, and these pricing strategies should not only be promoted through television commercials, but should also be promoted by viral promotion. Viral promotion means that personal message should be sent to all users of Virgin Mobile. Apart from this, random funny messages should be designed, which includes the information of the Virgin Mobile in that ...