Virgin Mobile (VMA) Australia is a leading consumer focused mobile network with its headquarters based in Sydney. VMA has official retail stores located in the following Australian cities Sydney, Brisbane & Melbourne and further 4000 retail outlets located around Australia stock their products. Following a successful launch in October 2000, Virgin Mobile Australia has continued to achieve strong growth and was recently acquired by the Optus Group. Virgin Mobile Australia has more than 400,000 customers and is one of the most recognized brands globally, representing strong customer focus and good value for money.
Virgin Mobile's declared mission is to right the wrongs of the mobile phone industry and provide a simple and fair deal that offers freedom, flexibility and value for money without compromising on quality of service. Founder Mr. Richard Branson stated that achieving VMA goals is all about "finding spaces where we can make a difference - then making it."
Virgin Mobile Australia's main objective is to increase its customer base by 10% in the first quarter (Jan, Feb, March) of 2011. Virgin Mobile Australia Pty Ltd (VMA) was purchased by Optus in 2006, Optus now holds 100% market share for VMA.
More information is available on the common share folder.
Your task:
To assist Virgin Mobile Australia (VMA) in increasing their current customer and business base by formulating innovative marketing strategies that will allow them sustainable competitive advantage in the highly competitive Australian telecommunications market. The marketing strategies that you will formulate are scheduled to be implemented in the first quarter of 2011. VMA senior management has allocated a $500,000 budget for implementing your chosen marketing strategies. Senior Management at VMA has asked that you remember the key component when devising these marketing strategies "their customers."
Key elements to include in your report for VMA Senior Management are:
1. An introduction about Virgin Mobile Australia (Company profile).
2. Identify and evaluate current (minimum of 5) marketing strategies being used by Virgin Mobile Australia.
3. What are the direct impacts of Virgin Mobile Australiamarketing mix on its current marketing strategies on their customer and business base?
HINT: It may help to answer this question in tabulated form.
Strategy
e.g. Dialing Under the Influence
Impact on Customer/ Business Base
Increases customer interaction with the brand, it clearly aligns with the organisations image of being fresh and innovative and encouraging a sense of fun. It gives the organisation an opportunity to interact with its customers unobtrusively in their social lives, which is not offered by competitors.
4. Discuss the levels of customer service provided by Virgin Mobile Australia (Post sales services)
5. List Virgin Mobile Australia's current products / services offered along with its respective cost / prices list
6. List the ways in Virgin Mobile Australia's current products / services are promoted and distributed to its customers
7. Does Virgin Mobile Australia's offer any additional products / services through its parent or subsidiaries?
8. Propose 3 NEW marketing strategies that Virgin Mobile Australia could implement to improve its current market offerings and attract new customers / market share.
HINT: It may help to answer this question in tabulated form.
Strategy Estimated Cost Risk Opportunity Ranking
E.G. Form a strategic alliance and locate the next big technological invention $150,000
($75,000each if costs are shared) • Financial
- Trust in the Alliance
- Time constraints First to market
- Increasein customer base due to new innovation 2/3
9. Based on your proposed 3 new marketing strategies (as per point 8) how do you intend to monitor the success of the strategies.
10. Return on Investment (ROI) and Cost Benefit Analysis (CBA)
A) Discuss the ROI and CBA for the three marketing strategies that you have selected.
B) Rank your proposed marketing strategies in ascending order, starting from the highest and most preferred strategy.