Virgin
Introduction
The objective is to analyse the initial marketing and pricing strategy of Virgin as it targets the relatively unsaturated and overlooked youth segment of the American mobile communications market. To succeed, Virgin must define a pricing strategy that achieves Virgin's objectives of building a customer base and achieving profitability. To this end, Virgin's value proposition - promotion, placement, product, and pricing – will be examined, and recommendations provided.
Promotion (Advertising)
In the commoditized mobile industry, advertising is essential in acquiring new customers. The average advertising expenditure per customer in the industry ranges from $75-$105. Where in this range a company's advertising costs will fall depends on factors such as market saturation, attractiveness of value proposition, effectiveness of marketing campaigns, and competition.
Virgin can be confident that its cost of customer acquisition will be lower (~$60) than the......
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Approximate Word Count: 1406
Approximate Pages: 6 (250 words per double-spaced page)
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