In the 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 spectrum and is penetrating the market based totally on its branding and marketing strategy. Creating a niche brand and promoting it to specific customer segment with proper marketing has been the key success factor for virgin mobile across the globe. So, from marketing and customer understanding point of view, this is a very unique company to study.
Virgin has promoted itself as the brand for youngsters, keeping the youth as its target customer segment. The idea behind targeting this segment can be found inherited in virgin's business model. The different marketing perspectives are explained in fig 1.
The salient features of Virgin's business model from customer perspective are:
[...] Company is providing the best prices in whichever plan you go, quality of signals is not only comparable but better than most of the service providers, on technology front it is the first to go for one-touch VAS access from every Virgin Mobile. DISTRIBUTION CHANNEL: Virgin mobile makes its products available to the customer by both retail stores and online distribution. Selective Distribution: Virgin mobile has selected some retail outlets to distribute its products. It does not follow the strategy of intensive and exclusive distribution. [...]
[...] For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart. RECOMMENDATIONS: Virgin should try to promote its latest plans in advertisements. Making customers aware about latest pricing will increase its market share in terms of cost effectiveness. Virgin should try to tap 14% of customer base who want to switch to virgin but not able to switch because of existing non-compatible handset. Solving existing non-compatible handset problem and better communication to inform latest pricing strategies will lead to substantial increase in consumer base for virgin mobile. [...]
[...] One touch VAS access from every virgin mobile. Providing services which others are not providing meticulously Easy to change the handset from a wide range of handset providing at very reasonable prices. Boring customer care services telling you are in queue. One customer care officer dedicated for all queries of one customer leading to transparency. No jammed or bad network coverage. Tailor made customized plans without any hidden charges. No monthly bills. VALUE CREATION THROUGH PRODUCT DESIGN: Various steps that Virgin is taking to add value to the customer are on price, quality, technology and social front. [...]
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