Virgin Mobile Case Report - Virgin Mobile You work for a...

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Virgin Mobile You work for a high-profile sales and pricing consultant who’s been called in by Virgin Mobile to review its marketing and pricing strategy before the company pulls the trigger and implements a particular strategy. Unlike your boss, your background is more in the area of management processes. Consequently, your boss has tasked you with the following: Reviewing and analyzing Virgin Mobile’s goal-setting process for its entry into the U.S. market. (Ch. 4) Applying the rational-decision making process to the strategic decisions facing Virgin Mobile, specifically, (1) Virgin Mobile’s target market selection (14 to 24 year olds); and (2) Virgin Mobil’s pricing structure given its target market selection. (Ch. 4) In analyzing these two issues, you may want to consider the following factors and questions: The risks associated with Virgin Mobile’s target market selection. Why the major carriers have been so slow to target this segment. Do you agree with Virgin Mobile’s target market selection? The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service contracts, the big carriers churn roughly 24% of their customers each year. Clearly, there is little loyalty in this market. What is the source of all this dissatisfaction? –hidden fees in contracts and monthly credit history checks.
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