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13315487 Virgin MobileThe Marketing Strategies

13315487 Virgin MobileThe Marketing Strategies

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Published by: Abhishek Sawant on Aug 02, 2011
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Customer Acquisition And Retention A Marketing Project On

December 10, 2008


PREPARED BY Group 11:Gaurav Kumar-334 Jaybind Kumar Jha-328

Submitted To: Dr.Rajan Saxena

Kumar Saurabh-368 Nilesh Chandra SInha-359 Smriti Jha-329


Topic Page No.

INTRODUCTION«««««««««««««««««««««..5 UNDERSTANDING VIRGIN¶S BUSINESS MODEL««««««....5 COMMUNICATING THE VIRGIN BRAND««««««««««..7 TARGET MARKET«««««««««««««««««««.«.8 CUSTOMER ACQUISITION AND RETENTION STRATEGIES...«..8 VALUE CREATION THROUGH PRODUCT DESIGN«««««« 9 MARKETING MIX««««««««««««««««««««..10 DISTRIBUTION CHANNEL««««««««««««««««..10 COMPETITION ««««««««««««««..«««««««12 CUSTOMER RESEARCH««««««««««..«««««««12 RECOMMENDATIONS..................................................................«...14 EXIBITS«««««««««««««««««..«««««««15 REFERENCES««««««««««««..«««««««««..23


Virgin mobile is a unique player based on its business model and strategy. So. It is the only service provider which does not hold any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum and is penetrating market totally on its branding and marketing strategy. virgin is targeting specific segment with tailor made plans keeping its long term goals in mind. in mobile sector where all other players are trying to provide similar service to different customer segments. UNDERSTANDING VIRGIN¶S BUSINESS MODEL: Virgin has promoted itself as the brand for young India. The idea behind targeting this segment can be found inherited in virgin¶s business model. 3 .VIRGIN MOBILE-THINK HAT KE INTRODUCTION-WHY VIRGIN MOBILE? In Indian mobile market. The different marketing perspectives are explained in fig 1. 3) Increased use of data services in future due to technological advancements. this is a very unique company to study. The salient features of Virgin¶s business model from customer perspective are: 1) With intensive competition and reducing voice tariffs. So. keeping the Indian youth as its target customer segment. from marketing and customer understanding point of view. the profit margins for voice service are decreasing day by day. the future profit strategy is maximizing profit margins through data services and it is youth segment which provides maximum data service revenues. 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. 2) Future projection of increasing young and working population of India as 65% of overall population by 2020.

VIRGIN MOBILE-THINK HAT KE NETWORK DISTRIBUTION CHANNEL Tata Teleservices Bluedart Online selling Retail Access Samsung VIRGIN MOBILE BRAND PRODUCT DESIGN Paid incoming calls 50 paisa STD COMMUNICATING VALUE PROPOSITION Youth centric advertisements Young & Vibrant website VBYTES Value added services Fig 1: Creating Virgin brand through various market channels 4 .

VIRGIN MOBILE-THINK HAT KE COMMUNICATING THE VIRGIN BRAND: Virgin mobile has communicated itself as the youth oriented brand of India through various communication channels. They are: a) ³Think Hat ke´ advertisement campaign targeting youth b) Red and vibrant website look with youth focused language (Fig 2) c) Tailor made plans for young segment d) Getting paid for incoming calls: a source of recharge option for youth Fig 2. Virgin Mobile website depicting youth flavor 5 .

caller tunes. The distinct mobile phone usage habits of the young users provide a huge advantage to Virgin Mobile. CUSTOMER ACQUISITION AND RETENTION STRATEGIES: The company knows that they are trying to position themselves into a very established and competitive market. The usage of SMS. some of them are1) Providing services which were not offered so far a) Get paid for incoming calls. they contribute more than 50 percent of the revenues of telecom industry. Sir Richard ³We want to deliver a more tailored and relevant offering for a single segment. 6 . Moreover young users have a short handset up gradation cycle-under 12 months as compared to two years for people above 25 years of age. b) 50 paisa for all calls across the country. mobile shopping and other value added services like ring tones. 70 million own a mobile phone and this segment is expected to add another 50 million new subscribers in the next three years. which means huge billing potential for service providers. Though young subscribers constitute only 30 percent of the total mobile subscribers. Out of this. They make more and longer out-bound voice calls.´ Company targets only 10% of the above mentioned segment and have plans to acquire and retain them by various innovative propositions. they anticipate to achieve a subscriber base of 5 million in next three years and will make profit afterwards they will be able to break even in three year or so. There are 215 million people in this age group. targets Indian youth aged between 14 and 25 years. According to the patron. etc are very high in this group which again provides a huge opportunity to be tapped. They understand the fact that they cannot start making profit from day one neither they have plans for it. data services in the form of mobile internet. wallpapers. By 2010 this group is expected to contribute 6070 percent of total revenues.VIRGIN MOBILE-THINK HAT KE TARGET MARKET: The Virgin Mobile Brand.

on technology front it is the first in India to go for one-touch VAS access from every Virgin Mobile. quality. e) Tailor made customized plans without any hidden charges. recharging and everything. 7 . d) No jammed or bad network coverage. g) One touch VAS access from every virgin mobile. technology and social front. d) Extensive data service offers in the form of vbytes. b) Boring customer care services telling you are in queue. Company is providing the best prices in whichever plan you go. f) Go online facility for enquiry. f) No monthly bills.VIRGIN MOBILE-THINK HAT KE c) A brand truly meant for the young India which is reflected at each & every touch point. purchasing phone. VALUE CREATION THROUGH PRODUCT DESIGN: Various steps that Virgin is taking to add value to the customer are on price. e) Excellent value added plans. 2) Providing services which others are not providing meticulously a) Easy to change the handset from a wide range of handset providing at very reasonable prices. c) One customer care officer dedicated for all queries of one customer leading to transparency. quality of signals is not only comparable but better than most of the service providers.

8 . Promotion: Virgin Mobile entered the Indian market in grand style. Price: The handsets are priced in the range of Rs2000-5000. Virgin Mobile has used a very vibrant colour to relate itself with the targeted market.The call tariff is very nominal which is 50p per call both local and STD subject to terms and conditions. Selective Distribution: Virgin mobile has selected some retail outlets to distribute its products. Product: Virgin Mobile offers six RUIM enabled handsets with colour screen. The product is available across a host of modern retail outlets The Mobile Store.VIRGIN MOBILE-THINK HAT KE MARKETING MIX: The marketing mix is the combination of marketing activities that an organisation in so as to best meet the needs of its targeted market. The company surprised the readers of a leading Indian daily when all the headlines on the front page were in the colour red. FM radio and include one touch access for Vbytes-Virgin Mobile¶s VAS portal. Place: The focus of Virgin Mobile on customer acquisition has so far been in the top 60 cities of India and is set to extend to more cities. The strategy of selective distribution helps the company gain optimum market coverage and more control but at a lesser cost than intensive distribution. Apart from traditional media. Croma etc. Hotspot. DISTRIBUTION CHANNEL: Virgin mobile makes its products available to the customer by both retail stores and online distribution. RPG Cellucom. It does not follow the strategy of intensive and exclusive distribution. internet and outdoor youth centric advertising has been used wisely to attract the targeted audience.

These are then routed to another site where they are dealt with immediately in a seamless manner. Vijay Sales and Sangeetha to name a few. So it helps in improving the overall efficiency of the channel. Online Distribution: Virgin Mobile India has announced that customers can now buy Virgin Mobile branded products and services online. y y Customization becomes easier and feasible which adds to the customer value.48 hours and the requisite documents for proof of identity will be collected in person. For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart. extra messages as well as other freebies. Re-aggregation occurs in the sense that companies today encourage customers to lodge their complaints or send their queries on the net. Vishal Mega Mart. handsets will be delivered to the customer within 24 .VIRGIN MOBILE-THINK HAT KE Virgin Mobile launched a new mobile handset vBling on 7 July 2008. plan and number of their choice by filling an online form.000 outlets nationally and over 1000 modern retail outlets including The Mobile Store. Convergem. Croma. the handset will also be available in 34 kiosks in high traffic malls across the country. Univercell. They just need to select the handset. Customers taking advantage of online shopping will also be offered additional talk time. Disintermediation and re-aggregation: The different features of the online distribution are stated as follows: y Intermediary becomes redundant as customer buys directly from the firm using web technology. Post the payment transaction. Apart from this. vBling is available across 15. Big C. 9 .

2) 10% of customers surveyed were virgin customers where as 21% of them felt Virgin is the most cost effective brand. Vodafone and Reliance are the dominant players. Virgin Mobile have taken a µhatke¶ route and launched the brand in the youth segment. They are represented in the form of Pie chart (Exhibit 3): 1) 42% of customers rate price and 33% rate mobile set compatibility as first preference while using a mobile service. we performed a survey and came up with relevant findings. Two different surveys are: 1) Survey of target customers expectation including virgin and non. CUSTOMER RESEARCH: In order to understand target market¶s expectation and virgin customers experience about the product.virgin customers in the age group 15-25 2) Virgin¶s customer survey about product and customer service experience Analysis of target customer¶s expectation survey: In order to find target market¶s expectation from the brand. 10 . The company is spending huge chunks of money to promote their VAS services and it would be interesting to watch out what Virgin Mobile plans to offer. Virgin Mobile faces stiff competition from Reliance CDMA phones. we have done two different surveys with a sample size 30 each. The questionnaire (Exhibit 1) was prepared and sent across to the customer online and also the feedback was collected in person.VIRGIN MOBILE-THINK HAT KE COMPETITION: Virgin Mobile has entered into a very competitive industry where Airtel. The tie up with Tata Teleservices enables it to fight competition as the network quality of Tata Teleservices was ranked first by DOT.

VIRGIN MOBILE-THINK HAT KE 3) In terms of cost effectiveness. Vodafone and Reliance stood at 1st place with 24% share each. Virgin stands 2nd with 21% share where as Airtel.compatible handset. 4) It was also found that the customer care were always available to assist and customers were satisfied with the kind of responses which they got form the staff. The data is presented in the form of Pie chart in the Exhibit 2 and analysis is presented below: 1) Most of the customers (80%) feel that the product and service which they are using is reliable and they are very much satisfied with it. 3) The quality of the network was found to be very good. 11 .g. For e. Using the bandwidth owned by Tata Teleservices. Analysis of Customer Satisfaction Survey: We conducted a survey in order to find out the customer experience with Virgin mobile and their overall satisfaction level. 7) An important finding was that 12% consumers surveyed did not know about Virgin mobile service. actually helped Virgin in making its presence in the market. 4) 88% of consumers were aware of paid incoming call facility provided by virgin but only 68% knew about 50 paisa STD plan. 5) 14 % of customers surveyed who were not virgin customers wanted to switch to virgin mobile. 2) It was found that time gap between the services sought and delivered was high. the online orders did not reach on time on many occasions. 6) 36% of customers did not want to switch to virgin because of holding a non.

time gap between services sought and delivered should be minimized.VIRGIN MOBILE-THINK HAT KE RECOMMENDATIONS: 1) Virgin should try to promote its latest plans like 50 paisa STD calls in advertisements. Making customers aware about latest pricing will increase its market share in terms of cost effectiveness. 4) In order to enhance customer satisfaction. 2) 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. 3) 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. 12 .

Which is the most important factor while using a mobile service? a) Price b) Mobile handset compatibility c) Mobile service of friends and relatives d) Free extra services like internet. Which is the most cost effective brand in mobile service? a) Virgin b) Reliance c) Tata Indicom d) Airtel e) Vodafone f) Idea g) Bpl h) Don¶t know 4.VIRGIN MOBILE-THINK HAT KE EXHIBITS: Exhibit 1 Questionnaire for target customer¶s expectation: Please fill this questionnaire and help us in finding target customer¶s expectation from the firm. Please select the option which according to you is most suitable: 1. Are you aware of 50 paise national call plan of virgin mobile? 13 . downloads e) Others 3. Do you own a virgin mobile connection? a) Yes b) No 2.

How is the proximity of the service centre? 1 2 3 4 5 2. Are you aware of paid incoming call facility by virgin mobile? a) Yes b) No 6. with 5 representing excellent i. If not a virgin customer. 1. How satisfied are you with time gap between services sought and delivered? 14 .VIRGIN MOBILE-THINK HAT KE a) Yes b) No 5. Why you do not want to go for virgin mobile? a) CDMA technology b) Limited Handset c) Price d) Switching from existing handset e) Others Questionnaire for the Virgin Customers: Please fill this questionnaire and rate Virgin Mobile on the following aspects from 1 to 5. highly dissatisfied. Is the delivery point user friendly? 1 2 3 4 5 3.e. will you like to switch to virgin? a) Yes b) No c) Can't say 7. highly satisfied and 1 being poor i.e.

How accessible is the customer care on phone? 1 2 3 4 5 5. The overall satisfaction level with Virgin Mobile? 1 2 3 4 5 Exhibit 2 Proximity of service center Excellent Poor 7% 3% Very Good 30% Average 23% Poor Average Good Very Good Excellent Good 37% 15 . How is the Network quality? 1 2 3 4 5 7. How well does the customer care respond to the queries of the customer? 1 2 3 4 5 6.VIRGIN MOBILE-THINK HAT KE 1 2 3 4 5 4.

VIRGIN MOBILE-THINK HAT KE User friendliness of delivery point Poor 0% Average 7% Good 7% Excellent 33% Poor Average Good Very Good Excellent Very Good 53% Service Time Excellent 3% Poor 20% Very Good 3% Poor Average Good Good 47% Average 27% Very Good Excellent 16 .

VIRGIN MOBILE-THINK HAT KE Availability of customer care Poor 0% Average 7% Good 20% Poor Average Good Very Good Excellent Very Good 60% Excellent 13% Quality f service y cust mer care Poor 0% Average 0% Good 10% Very Good 20% Poor Average Good Very Good Excellent 70% Excellent 17 .

VIRGIN MOBILE-THINK HAT KE Network Quality Average Poor 0%Good 0% 10% Very Good 17% Poor Average Good Very Good Excellent 73% Excellent Overall Satisfaction Level Poor 0% Excellent 20% Average 7% Good 13% Poor Average Good Very Good Excellent Very Good 60% 18 .



Rajan Saxena 4. www. www.in 2.tatateleservices.VIRGIN MOBILE-THINK HAT KE REFERENCES: 1.virginmobile.com 3. www.com 6.wikipedia.timesofindia. www. Marketing Management by Philip Kotler 5. The Marketing Management Book by Mr.com 21 .

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