Virgin Mobile Case

 When Virgin planned the entry, the market was saturated, there were hidden charges and
collusion among telecom network companies. The youth was not targeted. Virgin was a natural
fit for the US market.
 To attract youth Virgin came up with various UVPs, for example, Rescue rings, wake-up calls,
Ring tones, Hit list etc. These are called virgin xtras.
 Customer acquisition cost for Virgin was relatively low, $120 with respect to $370 for other
players. Due to that Virgin can break even in year one itself.
 Application of Porter’s generics for trimming cost, bringing differentiation and focusing on the
target.
 Virgin moved from import contracts to improved service
 Segmentation: leaving the traditional market focused on a youth segment
 Targeting: Targeted the youth whose creditworthiness is low and needs are different.