Virgin Mobile.
Content
Vishal Ramrakhyani Shalinee Sharma Pinky Gwalani Gulam Rasool Farooqui Suvidha Waghmare
44 49 22 20 56
Created in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness. Virgin has created more than 200 branded companies worldwide, employing approximately 50,000 people, in 29 countries. Global branded revenues in 2008 exceeded £11 billion (approx. US$17 billion).
In Indian mobile market, Virgin mobile is a unique player based on its business model and strategy. It is the only service provider which does not hold any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum and is penetrating market totally on its branding and marketing strategy. Creating a niche brand and promoting it to specific customer segment with proper marketing has been the key success factor for virgin mobile across the globe.
With intensive competition and reducing voice tariffs, the profit margins for voice service are decreasing day by day. So, the future profit strategy is maximizing profit margins through data services and it is youth segment which provides maximum data service revenues. Future projection of increasing young and working population of India as 65% of overall population by 2020. Increased use of data services in future due to technological advancements. So, in mobile sector where all other players are trying to provide similar service to different customer segments, virgin is targeting specific segment with tailor made plans keeping its long term goals in mind.
It is a virtual mobile operator. Virtual implies for not having any dedicated basic infrastructure for operation. They don t have licensed frequency bands, no base stations, no switching centres and no transmission media. They purchase the airtime from the MNO (Mobile Network Operator) as bulk and resell them according to the agreed tariffs with the actual MNO.
Virgin mobile launched by virgin group is world s first MVNO. It is really one of successful business strategy of a successful business man, pioneering this business plan before everyone and still continues to be market leader in MVNO. Countries including Germany, Netherlands, France, Denmark, UK, Finland, Belgium, Australia and US have the most MVNOs. Other countries, such as Portugal, Spain, Italy, Croatia, Baltic, India, Chile, Ireland and Austria are just beginning to launch MVNO business models.
MVNOs can operate with any available technology like GSM or CDMA, making them more resistant for market response. Another highlight feature of MVNOs is they can set their own tariff plans subject to accommodating MNO. A MVNO s role and relationship to the MNO vary by market, country and the individual situations of MVNO and MNO. Even rMVNO (roaming mobile virtual network operator) is also available for roaming services. Even well known MNOs are trying to declare their own MVNO brands.
Virgin mobile had segregated its market into 3 groups while launching their mobile phone. Young aged customers from(14 to 25) Middle aged customers from(25-40) Old aged customers (40 and above) After segregating the consumers they targeted the young aged customers(14-25) as they thought they will be the one who will be using the mobiles most.
The Virgin Mobile Brand, targets Indian youth aged between 14 and 25 years. There are 215 million people in this age group. Out of this, 70 million own a mobile phone and this segment is expected to add another 50 million new subscribers in the next three years. Though young subscribers constitute only 30 percent of the total mobile subscribers, they contribute more than 50 percent of the revenues of telecom industry. By 2010 this group is expected to contribute 60-70 percent of total revenues.
The distinct mobile phone usage habits of the young users provide a huge advantage to Virgin Mobile. Moreover young users have a short handset up gradation cycle-under 12 months as compared to two years for people above 25 years of age.
The marketing mix is the combination of marketing activities that an organisation in so as to best meet the needs of its targeted market. Product Price Place Promotion
The company knows that they are trying to position themselves into a very established and competitive market. They understand the fact that they cannot start making profit from day one neither they have plans for it; they anticipate to achieve a subscriber base of 5 million in next three years and will make profit afterwards they will be able to break even in three year or so. According to the patron, Sir Richard We want to deliver a more tailored and relevant offering for a single segment.
Company targets only 10% of the above mentioned segment and have plans to acquire and retain them by various innovative propositions, some of them areProviding services which were not offered so far. Providing services which others are not providing meticulously.
Virgin mobile makes its products available to the customer by both retail stores and online distribution. Selective Distribution Online Distribution
Virgin Mobile has entered into a very competitive industry where Airtel, Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff competition from Reliance CDMA phones. The tie up with Tata Teleservices enables it to fight competition as the network quality of Tata Teleservices was ranked first by DOT.
Virgin should try to promote its latest plans like 50 paisa STD calls in advertisements. Making customers aware about latest pricing will increase its market share in terms of cost effectiveness. Solving existing non-compatible handset problem and better communication to inform latest pricing strategies will lead to substantial increase in consumer base for virgin mobile. In order to enhance customer satisfaction, time gap between services sought and delivered should be minimized.
Vishal Ramrakhyani Shalinee Sharma Pinky Gwalani Gulam Rasool Farooqui Suvidha Waghmare
44 49 22 20 56
Created in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness. Virgin has created more than 200 branded companies worldwide, employing approximately 50,000 people, in 29 countries. Global branded revenues in 2008 exceeded £11 billion (approx. US$17 billion).
In Indian mobile market, Virgin mobile is a unique player based on its business model and strategy. It is the only service provider which does not hold any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum and is penetrating market totally on its branding and marketing strategy. Creating a niche brand and promoting it to specific customer segment with proper marketing has been the key success factor for virgin mobile across the globe.
With intensive competition and reducing voice tariffs, the profit margins for voice service are decreasing day by day. So, the future profit strategy is maximizing profit margins through data services and it is youth segment which provides maximum data service revenues. Future projection of increasing young and working population of India as 65% of overall population by 2020. Increased use of data services in future due to technological advancements. So, in mobile sector where all other players are trying to provide similar service to different customer segments, virgin is targeting specific segment with tailor made plans keeping its long term goals in mind.
It is a virtual mobile operator. Virtual implies for not having any dedicated basic infrastructure for operation. They don t have licensed frequency bands, no base stations, no switching centres and no transmission media. They purchase the airtime from the MNO (Mobile Network Operator) as bulk and resell them according to the agreed tariffs with the actual MNO.
Virgin mobile launched by virgin group is world s first MVNO. It is really one of successful business strategy of a successful business man, pioneering this business plan before everyone and still continues to be market leader in MVNO. Countries including Germany, Netherlands, France, Denmark, UK, Finland, Belgium, Australia and US have the most MVNOs. Other countries, such as Portugal, Spain, Italy, Croatia, Baltic, India, Chile, Ireland and Austria are just beginning to launch MVNO business models.
MVNOs can operate with any available technology like GSM or CDMA, making them more resistant for market response. Another highlight feature of MVNOs is they can set their own tariff plans subject to accommodating MNO. A MVNO s role and relationship to the MNO vary by market, country and the individual situations of MVNO and MNO. Even rMVNO (roaming mobile virtual network operator) is also available for roaming services. Even well known MNOs are trying to declare their own MVNO brands.
Virgin mobile had segregated its market into 3 groups while launching their mobile phone. Young aged customers from(14 to 25) Middle aged customers from(25-40) Old aged customers (40 and above) After segregating the consumers they targeted the young aged customers(14-25) as they thought they will be the one who will be using the mobiles most.
The Virgin Mobile Brand, targets Indian youth aged between 14 and 25 years. There are 215 million people in this age group. Out of this, 70 million own a mobile phone and this segment is expected to add another 50 million new subscribers in the next three years. Though young subscribers constitute only 30 percent of the total mobile subscribers, they contribute more than 50 percent of the revenues of telecom industry. By 2010 this group is expected to contribute 60-70 percent of total revenues.
The distinct mobile phone usage habits of the young users provide a huge advantage to Virgin Mobile. Moreover young users have a short handset up gradation cycle-under 12 months as compared to two years for people above 25 years of age.
The marketing mix is the combination of marketing activities that an organisation in so as to best meet the needs of its targeted market. Product Price Place Promotion
The company knows that they are trying to position themselves into a very established and competitive market. They understand the fact that they cannot start making profit from day one neither they have plans for it; they anticipate to achieve a subscriber base of 5 million in next three years and will make profit afterwards they will be able to break even in three year or so. According to the patron, Sir Richard We want to deliver a more tailored and relevant offering for a single segment.
Company targets only 10% of the above mentioned segment and have plans to acquire and retain them by various innovative propositions, some of them areProviding services which were not offered so far. Providing services which others are not providing meticulously.
Virgin mobile makes its products available to the customer by both retail stores and online distribution. Selective Distribution Online Distribution
Virgin Mobile has entered into a very competitive industry where Airtel, Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff competition from Reliance CDMA phones. The tie up with Tata Teleservices enables it to fight competition as the network quality of Tata Teleservices was ranked first by DOT.
Virgin should try to promote its latest plans like 50 paisa STD calls in advertisements. Making customers aware about latest pricing will increase its market share in terms of cost effectiveness. Solving existing non-compatible handset problem and better communication to inform latest pricing strategies will lead to substantial increase in consumer base for virgin mobile. In order to enhance customer satisfaction, time gap between services sought and delivered should be minimized.
