Traditionally Industry carriers are attempting to attract customers through manipulative pricing strategies leaving their clients unaware of the hidden fees, overly priced plans as well as potential competition which may offer a much better deal. Virgin Mobile became aware of this cellular anarchy and had to decide what pricing strategy would best attract their target niche and offer them unbeatable value so that competitors could not enter into the same market easily.
Alternative 1 -Clone the Industry Prices
The first pricing strategy Virgin mobile considered was to copy the current industry pricing structure. The angle was that Virgin was to offer the same prices that of their competitors however with additional features built into the plan (i.e. better off-peak hours, superior customer service, etc.), as well as “VirginXtras” containing applications where customer had access to the latest MTV accessories such as games, ringtones, alerts and MTV channels and websites which would only be offered exclusively through Virgin Mobile.
The merits of copying the same pricing strategy as the competition are that when consumers are searching for the right service plan, Virgin Mobile would be the one to prevail because of the additional features offered exclusively through Virgin. Teenagers and young adults, which make up the majority of the most frequent cell phone users, would much rather a less complicated plan with added extras promoted right in front of them, then a service plan with pages of fine line details and specifics stating the parameters of their contract. These points would definitely grant Virgin Mobile the competitive edge and attract more customers.
The weakness of implementing a pricing strategy similar to that of the competition is that Virgin Mobile is placed in a position where they are relying solely on the fact that their customers are going to go through the trouble, and take the