Virgin Mobile USA: Pricing for the Very First Time

Powerful Essays
Case Analysis: Virgin Mobile USA: Pricing for the Very First Time
April 14, 2012

History
As part of the Sprint prepaid brands, Virgin Mobile USA is a mobile phone service that offers Android-powered smartphones and pre-paid web access phone service. Virgin Mobile-branded phones are widely available in over 40,000 stores nationwide, including Target, Walmart, Best Buy and Radioshack. Virgin Mobile USA’s service is based on a non-contract basis, offering a freedom of service to their customers compared to other major-brand mobile phone service (Business Wire, 2012).
Virgin Mobile USA is the leader of no-contract mobile service since its debut in the U.S. market in 2001. Their leading promotional feature includes their Unlimited Web, Data, Messaging, and email starting at $35 per month. Their value brand, called payLo, is a pay-as-you-go plan, with the options of talk and texting plans or just a talk plan (Virginmobileusa.com).
Music is also a large makeup of Virgin Mobile’s service, including sponsorships with major television networks and events, including Lady Gaga’s Monster Ball Tour and the FreeFest Music festival. In addition, Virgin Mobile Live is a service that offers continuous music streams of songs of any genre to its customers (Virginmobileusa.com).
Virgin Mobile USA’s no-contract and no-credit checks directives opens up to their targeted youth market because their no obligation approach opens up to a customer base that traditional mobile phone companies do not offer. Issues Facing Virgin Mobile
Virgin Mobile USA’s need to differentiate from the current mobile service market has to look at the available options in getting their pricing strategy a priority to determine which works best for the niche market they are targeting. Solely looking at the pricing analysis does not guarantee brand loyalty, satisfaction nor meet the customers’ needs.
Virgin Mobile USA contains a combination of both a good and service, where the good is their



References: Boost Mobile and Virgin Mobile USA Recognized as J.D. Power and Associates 2012 Customer Service Champions By: Boost Mobile and Virgin Mobile USA, Business Wire (English), 03/15/2012 Regional Business News. Virgin Mobile. (2012). Retrieved from http://www.virginmobileusa.com/about-virgin-mobile Zeithaml, V. A., Bitner, M. J. & Gremler, D. D. (2009) Services Marketing (5th ed.). Boston: McGraw-Hill.

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