Virgin Mobile Strategy

Topics: Mobile phone, Mobile network operator, Virgin Group Pages: 15 (4016 words) Published: February 10, 2011

* Virgin Mobile, a leading branded venture capital organization, is one of the world's most recognized and respected brands.  Conceived in 1970 by Sir Richard Branson, the Virgin Mobile Group has gone on to grow very successful businesses in sectors ranging from mobile telephony, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. Virgin Mobile has created more than 200 branded companies worldwide, employing approximately 50,000 people, in 29 countries. Its revenues around the world in 2006 exceeded £10 billion (approx. US$20 billion).

* Virgin Mobile India is a brand franchise association between the Virgin Mobile Group and Tata Teleservices to launch the Virgin Mobile brand of services in India.

* The organisation was set up in 2007 to focus on telecom services for the youth market.

* Tata Teleservices is one of India's leading telecom service providers, with a customer base of over 23 million.

* The brand will be available in 20 telecom circles and will be serviced by nine centres across nine Indian cities.

* The company is headquartered in New Delhi, India.

* 15 million youth customers across four continents
* Winner of 8 JD Powers customer satisfaction awards in 7 years * Voted the most admired brand in UK
* Ranked 18th most valuable telecom brand in the world
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 key to success for virgin mobile across the globe. Understanding Virgin’s business Model

Virgin has promoted itself as the brand for young India, keeping the Indian youth as its target customer segment. The idea behind targeting this segment can be found inherited in virgin’s business model. The salient features of Virgin’s business model from customer perspective are: 1) 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. 2) Future projection of increasing young and working population of India as 65% of overall population by 2020. 3) 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.

* Worldwide:
* Market size:- 4.1 billion mobile customers worldwide.
* Major players:-Vodafone, Verizon, AT&T, T-mobile, Orange, China Mobile * India:
* Indian mobile market is growing at an outstanding pace over the last five years as mobile has become a household name in the country. Be it business or personal use, mobile phones have become a necessity in India. The subscriber base in India has increased by about 83% in the last 1 year. The current tele-density in India is about 24% which is very les as compared to many other developed countries. Looking at the Indian mobile market we can find out that about 600 million people are still without mobile phones. Indian mobile subscriber base is set to touch about 450 million till the year 2010. The growth in the Indian mobile market is being fuelled by rapidly falling handset prices. In India less than Rs 5000 category accounts for around 60% of the market. * Market size:-

1) Currently 302 million wireless subscribers in India
2) Wireless subscribers are...
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