Virgin Mobile Pricing Strategies

Paper Type:  Essay
Pages:  3
Wordcount:  613 Words
Date:  2021-03-06

Virgin Mobile is a top recognized company in the U.K that believes in making a significant difference to customers by meeting their needs. Notably, the Company believes in value for quality money innovation and has a sense of competitive challenge. It believes in looking for new opportunities and grabbing them to increase their revenue. However, the company has to some extent failed in exploiting the opportunity that exists in the current market where the needs of the young people are not entirely met.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

The company has internal strengths such as high revenues, goodwill, and a reputation from their previous experiences in serving their customers. Moreover, it has all it takes to exploit the new opportunity that involves serving the needs of the young people. Pricing strategy, however, is a core factor that it should consider if it has to get into the market and make attractive revenues in the end.

The best pricing strategy for the newly identified market would be to set their prices below the competition values. Notably, the benefits of setting prices below those of the competitors definitely outweigh the risks. Firstly, a slightly lower price attracts a massive number of customers. Since in business a consumer is considered to be a rational being, they strive to attain the highest level of utility from the minimum possible sacrifice. This means that, besides other factors that influence a customers taste and preference, the price comes first (Ferguson & Brohaugh, 2008). When Virgin Mobile company sets their price below the competition, there are high chances that many youths will shift to their product since a single unit of difference price impacts greatly in the decisions that consumers make. Attracting many customers means high revenue for the company (Duarte, 2008).

Secondly, paying closer attention to the pricing structure present in the industry and comparing it to the rate of consumption by the youth which is between 100-300 minutes a month, it does not make much sense to say that the company is charging lower prices. Many of the young people use less than 300 minutes a month. There are those that consume fewer minutes, and others use all the 300 minutes. Since the price for this package is fixed, the effects of consumption differences cancel each other out in the end, and the company does not incur any losses as a result of charging lower prices (Ferguson & Brohaugh, 2008).

Moreover, many young people prefer cheap things as they have a lot of stuff to do with their money. Persons in the age group of between 15-29 years are very keen on the value for their money since they are in the initial stages of accumulating wealth (Duarte, 2008). Charging a lower price than the competitors would be like offering them a very fair deal and so they will have no second thought about taking the deal. They will, therefore, prefer Virgin mobile company's prices.

Lastly, it will be easier for the company to implement this pricing structure as it is already available in the market. The only thing they will do it to inform the target customers that they are offering their lower prices through advertising and marketing (McGovern, 2007). They have however to emphasize on their lower costs in their adverts since it is the only thing that differentiates them from other competitors in the market.



Duarte, M. (2008). U.S. Patent Application No. 12/055,635.Ferguson, R., & Brohaugh, B. (2008). Telecom's search for the ultimate customer loyalty platform. Journal of Consumer Marketing, 25(5), 314-318.

Malhotra, A., & Kubowicz Malhotra, C. (2013). Exploring switching behavior of US mobile service customers. Journal of Services Marketing, 27(1), 13-24.

McGovern, G. (2007). Virgin Mobile USA: Pricing for the very first time. Harvard Business School Pub..

Cite this page

Virgin Mobile Pricing Strategies. (2021, Mar 06). Retrieved from

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism