Marketing Plan of Virgin Media
1. Terms of reference
This report describes the marketing plan for Virgin Media a major player in the Digital television market in UK. Virgin Media (formerly NTL Incorporated) is an UK-based entertainment and communications company. In February 2007, the company’s name was changed from NTL Incorporated to Virgin Media. It provides television, broadband, fixed line telephone and mobile telephone services in the UK. VirginMedia uses cable technology for their network and a set top box (STB) is used by the customer. Their new product called Video On Demand (VOD) is the only platform that can access BBC iPlayer. The digital recorders that they supply is called Digital Video Recorders (DVR) with which the customer can record programmes in 2 channels, while viewing the third. 2. Executive Summary
The marketing plan of Virgin Media is designed to examine the position of the company in the digital television market. According to latest reports from Ofcom the digital television industry is expanding and the number of customers are expected to rise every year. Virgin Media offers the customer with a wide array of choice like interactive TV, Video On Demand and superior technology. The objective of this plan is to describe the major findings and provide recommendations. In order to analyze the current position of the company an external and internal audit was conducted. The internal audit exposes the strengths and weaknesses of the company and the external audit depicts the opportunities and threats that the organization face. Some of the key findings of the external audit and internal audit are mentioned below 1.
Through the PEST analysis, it was found that Virgin Media has a major market share in the Digital TV industry and is also growing. The company faces stiff competition from the market leaders BSKYB 2.
Virgin Media is financially under loss owing to high debt and also operating loss due to goodwill and intangible assets impairment of £417 million. 3.
In the perceptual map it was found that Virgin Media offers channels are lesser price when compared to their competitors BSkyB. This can be taken as an opportunity and a strength to capture more market share 4.
The company has great potential to develop its market share in untapped areas like the Asian community and student community. They should offer more price discounts to penetrate further 5.
In the BCG matrix, the product Video On Demand (VOD) is a profitable product and can be termed as a star since resources should be invested to maintain or increase the leadership position. The product V+ HD is termed a cash cow. Marketing models like Ansoff Matrix, BCG matrix, SWOT analysis, Perceptual maps etc are used to analyse the position of the company. Strategic recommendations to successfully implement the action plan are also suggested. 3. Business Mission
“Virgin Media as a company wants to give excitement to the customer and make their digital space the brilliant place it should be” Virgin Media are a leading U.K. entertainment and communications business providing a ‘‘quad-play’’ offering of broadband, television, mobile telephone and fixed line telephone services. As of December 31, 2008, they were the U.K.’s largest residential broadband provider and mobile virtual network operator, and the second largest provider of pay television and fixed line telephone services by number of customers. They owned and operated cable networks that passed approximately 12.6 million homes in the U.K. and provided service to approximately 4.8 million cable customers on our network. 4. External Market Audit
4.1. Macro environment
Macro environment are external factors that can affect a company or its product development and which influence the organization’s decision making that are outside the company’s control. The various factors are namely Political/Legal, Economic, Social and...
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