A Report on Virgin Mobile

Topics: Virgin Group, Virgin Mobile India, Tata Teleservices Pages: 6 (1815 words) Published: July 1, 2010
Virgin Mobile India-Think Hat Ke

To be the favourite mobile service of India’s youth

Company Overview
Virgin Group, Ltd. operates as a venture capital company. The company engages in various businesses, including mobile telephony, travel and tourism, financial services, leisure and pleasure, transportation, social and environment, music, holidays, shopping, media, publishing, and retailing. It has operations in Africa, Asia, Australia, Canada, Europe, the United Kingdom, and the United States. Virgin Group, Ltd. was founded in 1970 and is based in London, the United Kingdom. Virgin mobile is Virgin’s third India play - after Virgin Air’s India routes and a radio station, Fever 104 FM. And it’s Virgin Mobile’s seventh telecom market.(others include U.S., France and South Africa)

Virgin mobile
Virgin has 15 million youth customers across 4 continents. 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 (50:50 joint venture) 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.

Current scenario
Almost 80 per cent of the Indian mobile telephony is GSM based and Virgin is counting big on the urban youth segment for growth in the segment. Virgin Mobile has launched GSM services in six telecom circles, including Uttar Pradesh (East), UP (West),Madhya Pradesh & Chhattisgarh, Haryana, Kolkata and Bihar. Now Virgin has GSM services in a total of 14 telecom circles.(June 2010).

Virgin Mobile launched a high-speed Internet service vFlash in the country with a monthly tariff of as low as Rs 250 per month on January 13,2010. To encash on this IPL fever Virgin Mobile India announced the launch of Indian Panga League on april,2010 . A unique online campaign for cricket enthusiast . A similar campaign was launched last year by Virgin Mobile named Indian Hatke League which did wonders during the IPL season. Apart from this Virgin is launching new offers for Value Added Services and reduced call rate schemes time to time.

Short term Targets
Virgin is targeting 10 per cent market share in the urban youth segment, which accounts for almost 50 per cent of the total mobile market in India. “We aim to garner five million subscribers till December 2010”says Virgin Mobile CEO Mr. M A Madhusudan.

Understanding Virgin’s business Model
Virgin’s team of 250 spent nearly nine months researching their target audience. They discovered that the key to India’s youth is their goal success. 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.

Communicating the Virgin Brand

Virgin mobile has communicated itself as the youth oriented brand of India through various communication channels. They are:
a) “Think Hat ke” advertisement campaign targeting youth b) Red and vibrant...
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