1.

I do agree with Virgin Mobil’s target market selection, which is between the ages of fifteen and
twenty-nine. At the end of 2001, the U.S. had six national carriers and a number of regional and
affiliate providers. Industry penetration was close to 50% with about 130 million subscribers, and
the market was considered to have reached maturity. Therefore, the general market has become
saturated, and only the youth market has not been penetrated.If marketed successfully,Can get
huge returns.In fact Virgin did succeed. At the same time, this strategy can save a lot of
advertising costs. Under this strategy, Virgin only needs to accurately place their ads on the
network.

2. The first is that this strategy may fail,The first is that this strategy may fail. When it first entered
this market, the market was mature, and many companies had already occupied the market with
their own brands. In the service industry, consumers are usually more loyal to the brand. Virgin
wants to succeed.,To promote their products and services.
At the same time, the target group has a lower income than the general population, and it is very
likely that they cannot pay Virgin, or the families of these young people are unable or unwilling to
provide funds for them to purchase mobile phones and services.Teenagers have more
requirements for the diversity of products and services, and they are usually less loyal to brands.

3. When these major carriers sign contracts with customers, they need customers to pass credit
checks, but many teenagers have no income at all and no credit cards, so it is difficult for
teenagers to sign contracts with them.
Many carriers did not believe it was worth acquiring consumers who might not use their cell
phones on a frequent basis. The main carrier already has a lot of high-value users, and these user
groups have small risks and great benefits. The main carrier can easily charge hidden fees, and
there is no need to worry about these users being unable to pay.