V Vishal Ramrakhyani 44

V Shalinee Sharma 49
V Pinky Gwalani 22
V Gulam Rasool Farooqui 20
V Suvidha Waghmare 56
V ireated in 1970 by Sir Richard Branson, the Virgin
Group has gone on to grow very successful businesses
in sectors ranging from mobile telephony to
transportation, travel, financial services, media, music
and fitness.
V Virgin has created more than 200 branded companies
worldwide, employing approximately 50,000 people, in
29 countries. Global branded revenues in 2008
exceeded £11 billion (approx. US$17 billion).
V hn hndian mobile market, Virgin mobile is a unique
player based on its business model and strategy.
V ht is the only service provider which does not hold
any bandwidth and mobile setup infrastructure but
uses Tata Teleservices spectrum and is penetrating
market totally on its branding and marketing
strategy.
V ireating a niche brand and promoting it to specific
customer segment with proper marketing has been
the key success factor for virgin mobile across the
globe.
V With intensive competition and reducing voice tariffs, the profit
margins for voice service are decreasing day by day. So, the future
profit strategy is maximizing profit margins through data services
and it is youth segment which provides maximum data service
revenues.
V Future projection of increasing young and working population of
hndia as 65% of overall population by 2020.
V hncreased use of data services in future due to technological
advancements.
So, in mobile sector where all other players are trying to provide
similar service to different customer
segments, virgin is targeting specific segment with tailor made
plans keeping its long term goals in mind.
V ht is a virtual mobile operator.
V Virtual implies for not having any dedicated basic
infrastructure for operation.
V They donǯt have licensed frequency bands, no base
stations, no switching centres and no transmission
media.
V They purchase the airtime from the MNO (Mobile
Network Operator) as bulk and resell them according to
the agreed tariffs with the actual MNO.
V Virgin mobile launched by virgin group is worldǯs first
MVNO.
V ht is really one of successful business strategy of a
successful business man, pioneering this business plan
before everyone and still continues to be market leader in
MVNO.
V iountries including Germany, Netherlands, France,
Denmark, UK, Finland, Belgium, Australia and US have the
most MVNOs.
V Other countries, such as Portugal, Spain, htaly, iroatia,
Baltic, hndia, ihile, hreland and Austria are just beginning to
launch MVNO business models.
V MVNOs can operate with any available technology like
GSM or iDMA, making them more resistant for market
response.
V Another highlight feature of MVNOs is they can set their
own tariff plans subject to accommodating MNO.
V A MVNOǯs role and relationship to the MNO vary by
market, country and the individual situations of MVNO and
MNO.
V Even rMVNO (roaming mobile virtual network operator) is
also available for roaming services.
V Even well known MNOs are trying to declare their own
MVNO brands.
 Virgin mobile had segregated its market into 3 groups
while launching their mobile phone.
] Young aged customers from(14 to 25)
] Middle aged customers from(25-40)
] Old aged customers (40 and above)

After segregating the consumers they targeted the

young aged customers(14-25) as they thought they will
be the one who will be using the mobiles most.
V The Virgin Mobile Brand, targets hndian youth aged
between 14 and 25 years.
V There are 215 million people in this age group.
V Out of this, 70 million own a mobile phone and this
segment is expected to add another 50 million new
subscribers in the next three years.
V Though young subscribers constitute only 30 percent of
the total mobile subscribers, they contribute more than
50 percent of the revenues of telecom industry.
V By 2010 this group is expected to contribute 60-70
percent of total revenues.
V The distinct mobile phone usage habits of the young
users provide a huge advantage to Virgin Mobile.
V Moreover young users have a short handset up
gradation cycle-under 12 months as compared to two
years for people above 25 years of age.
 The marketing mix is the combination of marketing
activities that an organisation in so as to best meet the
needs of its targeted market.
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V The company knows that they are trying to position
themselves into a very established and competitive
market.
V They understand the fact that they cannot start making
profit from day one neither they have plans for it; they
anticipate to achieve a subscriber base of 5 million in
next three years and will make profit afterwards they
will be able to break even in three year or so.
V According to the patron, Sir Richard DzWe want to
deliver a more tailored and relevant offering for a single
segment.dz
 iompany targets only 10% of the above mentioned
segment and have plans to acquire and retain them by
various innovative propositions, some of them are-
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 Virgin mobile makes its products available to the
customer by both retail stores and online distribution.
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V Virgin Mobile has entered into a very competitive
industry where Airtel, Vodafone and Reliance are the
dominant players.
V Virgin Mobile faces stiff competition from Reliance
iDMA phones.
V The tie up with Tata Teleservices enables it to fight
competition as the network quality of Tata Teleservices
was ranked first by DOT.
V Virgin should try to promote its latest plans like 50 paisa
STD calls in advertisements.
Making customers aware about latest pricing will increase
its market share in terms of cost
effectiveness.
V Solving existing non-compatible handset problem and
better communication to inform
latest pricing strategies will lead to substantial increase in
consumer base for virgin mobile.
V hn order to enhance customer satisfaction, time gap
between services sought and delivered should be
minimized.