Virgin Mobile Case

Better Essays
Topics: Paper
CROON ELEKTROTECHNIEK, B. V.©

James A. Narus

James C. Anderson *

May 2002
*

James A. Narus is Professor of Business Marketing, Babcock Graduate School of Management, Wake Forest University. James C. Anderson is the William L. Ford Distinguished Professor of Marketing and Wholesale Distribution, and Professor of Behavioral Science in Management, Kellogg Graduate School of Management, Northwestern University. He is also the Irwin Gross Distinguished ISBM Research Fellow at the Institute for the Study of Business Markets (ISBM), located at Penn State University, and Visiting Research Professor, Department of Technology Management, Eindhoven University of Technology, the Netherlands. The significant contributions of Jan Peter van der Hoek, Ewald Bruggeman, and Erwin van den Broek in gathering and analyzing case information are gratefully acknowledged. Please note that we prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. We have disguised some case information. Send correspondence to: James A. Narus Babcock Graduate School of Management Wake Forest University Suite 150, One Morrocroft Centre 6805 Morrison Boulevard Charlotte, NC 28226-3551 USA +1.704.365.6717 (telephone) jim.narus@mba.wfu.edu (e-mail)
©

2002, James C. Anderson and James A. Narus. All rights reserved.

CROON ELEKTROTECHNIEK, B.V.
A loud but warm greeting startled Fred Kombrink, a lead engineer from Croon Elektrotechniek’s Engineering Department. It came from Bart Van Asch, a senior account representative from Océ Technologies B.V. Along with a technical sales team from Océ, Bart had driven one hour by car from their offices in Den Bosch to Croon’s headquarters in Rotterdam to give a sales presentation for the Océ 950 Digital Reprographics System. “Let me introduce you to my team, “ Bart said enthusiastically as he gave a brief summary of the qualifications of each person. The team

You May Also Find These Documents Helpful

  • Powerful Essays

    Virgin Mobile

    • 1524 Words
    • 7 Pages

    Virgin Mobile Paper A Case Study Analysis Presented to: 1 I. CASE SUMMARY Virgin, a U.K. based company led by Sir Richard Branson, has had a history of brand extension resulting to 200 different corporate entities. One of which is Virgin Mobile which has decided to expand to USA based on their success in the U.K. market. Dan Schulman, Virgin Mobile USA CEO, is tasked to lead the expansion to the U.S. and has decided to focus on consumers aged 15-29 given that there is low penetration…

    • 1524 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Virgin Mobile

    • 707 Words
    • 3 Pages

    1. Given Virgin Mobile’s target market (14 to 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of the subsidies, hidden fees, average per-minute charges, etc.). I believe Virgin Mobile has two options. The first option is the obvious for their target market and any new…

    • 707 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Virgin Mobile

    • 953 Words
    • 4 Pages

    There is nothing that will prevent Virgin from competing to an untapped market. • Threat of Substitutes – Weak o There are very few substitutes available that offer mobile and immediate communication. Alternative like pagers are outdated & this target market cannot afford sophisticated PDA service. • Degree of Rivalry – Strong o Competitors have brand recognition in the US and have the majority of the market share. Financial Analysis: Initially, Virgin may have no great profits since…

    • 953 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Virgin Mobile

    • 1094 Words
    • 5 Pages

    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…

    • 1094 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Virgin Mobile - Case Study

    • 1052 Words
    • 5 Pages

    Problem Statement Virgin Mobil is venturing into the US market and their launch date is July 2002. The company’s goal is to have one million total subscribers by the end of the first year and three million by year four. In order to achieve their goals, the company has to come up with a competitive pricing strategy to attract and retain customers in an already mature market. Recommended course of action Despite a mature US market, the cellular service industry has a market penetration of only…

    • 1052 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Virgin Mobile Case Study

    • 579 Words
    • 3 Pages

    Ton-Tho MKTG 4400 Watson 5/1/13 Virgin Mobile USA Case Study This case speaks of Dan Schulman who has just recently taken the position as CEO of Virgin Mobil USA. In the summer of 2001, he assembled a team and set a goal of 1 million subscribers by the end of the first year, and 3 million by the end of year four. Virgin although a top brand in the UK had a weak following in the states at this time. They had success in the UK with the launch of their mobile network and devices, but did not fare…

    • 579 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Virgin Mobile

    • 746 Words
    • 3 Pages

    1 AEM 4160: STRATEGIC PRICING PROF.: JURA LIAUKONYTE VIRGIN CELL CASE: EXCERCISES Pricing Structure from the Carrier Perspective ¨ Contracts: ¤ ¤ ¤ Annual churn rate WITH contracts Annual churn rate WITHOUT contracts The difference: =2% * 12 months = 24% (p.8) =6% * 12 months = 72% (p.8) 72% - 24% = 48% Take AT&T example: customer base = 20.5 million If AT&T abandons the contract based plan how many new customers would it need to acquire to offset customers from an…

    • 746 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Virgin mobile pricing Document Transcript VIRGIN MOBILE USA – ‘FIRST PRICE’ STRATEGY (An analysis of the Pricing Decision alternatives that Virgin has to undertake to create an alternate customer segment and monetize their buying power)VIRGIN XTRAS – OVERVIEWThe Virgin Mobile USA service involved content, features and entertainment, called “Virgin Xtras”.Collaboration with MTV networks as it was the most recognized youth brands in the country and unparalleled reach forthe under-30 market segment:…

    • 3044 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Virgin Mobile Harvard Case

    • 2352 Words
    • 10 Pages

    STUDENT: | Louis-Claude ROUX | PROFESSOR: | Philippe René Gillet | CASE: Virgin Mobile USA “Pricing for the first time” | DATE: 20/02/2012CLASS: MBS-Entrepreneuriat | PART I) ANSWERS BASED ON MY “GUT FEELINGS” Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why? I would go for option number two for several reasons. The first one is that I think offer number one is not sufficiently different from the rest…

    • 2352 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Virgin Mobile has strategically shaped its marketing mix to appropriately target the younger demographic. First, lets look at it’s the product element. The younger demographic is more open to new things like text messaging, downloading information from their phones, ring tones, faceplates, graphics, having access to popular entertainment on their phone, etc. For younger people, phones are less of a tool and more of a fashion accessory or personal statement. To appeal to these needs, Virgin Mobile…

    • 783 Words
    • 4 Pages
    Good Essays