Virgin Mobile USA: Pricing for Term Paper

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In addition to gaining a high percentage of the 15-29 segment as defined in the case study, there is the added strategy of being able to take more of the mainstream customers from cellular service providers with bad service, high prices, and complex programs to understand. Presented below are the specific assumptions that illustrate the financial viability of this strategy:

Pay-as-you-go is expected to be the fastest growing segment of cellular telephone service industry (SEC 2007) as defined by research firms the Yankee Group and Current Analysis. Included in this analysis by these research firms is significant churn from existing cellular telephone service providers, which is a strength of Virgin Mobile.

Cost of Goods Sold (COGS) is assumed to stay flat over the forecast period for both basic and deluxe service levels, further increasing profitability and the potential for increasing investment in capital equipment and service assets, including customer service centers and systems.


Mobile Entertainment Services' growth is expected to contribute significantly to revenue and profit growth, growing at over 70% in revenue throughout the customer base. This also includes 40% or more mark-ups on MTV and proprietary digital content.

Multichannel-based selling strategy for both minutes and add-ons, including extensive use of the Internet site, use of retail locations and directly through IVR systems.

Significant launch events and branding building events to expand the overall pay-as-you-go marketplace as well. Virgin Mobile also has the strength from a marketing perspective to increase the size of the pay-as-you-go market through innovative and focused marketing, further making the revenue forecast discussed here attainable......

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"Virgin Mobile USA Pricing For", 23 June 2007, Accessed.19 May. 2024,
https://www.aceyourpaper.com/essays/virgin-mobile-usa-pricing-37015