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1.0 Background to the study

1.1 Company profile

Virgin Mobile Australia (VMA) is a private limited company which operates within the Australian telecommunication industry. Its headquarters are located in Sydney. The firm was founded in 2000 and has a human resource base of 400 employees according to 2008 statistics.

As a result of acquisition by Optus, VMA operates as a subsidiary of Optus. Optus owns 74.15% of VMA limited. Through the acquisition, Optus attained the right to deal with Virgin Mobile brands within Australia. The license is applicable for 15 years since the acquisition in 2006. The license is not limited to dealing with Virgin Mobile brands only (Bergholcs, 2006, para. 1-5).

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In its operation VMA has incorporated the concept of Mobile Virtual Network Operator (MVNO). This was attained as a result of utilizing Sing Tel Optus (STO) network. Despite the alliance, the firm owns a billing system in addition to a number of value added services and prepaid platforms.

In its operation, VMA’s main focus is provision of a number of services such as mobile and home broadband within Australia. In addition, the firm’s management team has also incorporated the concept of customer focus. As a result, the entire firm’s management team ensures that its operations result into customers attaining value for their money.

In order to attain this, the firm has formulated an effective mission statement which entails transformation of the mobile phone industry in Australia. This is by ensuring that its operations do not compromise the intended quality of service. The firm’s management team is also committed at ensuring that the firm provides fair and simple deals. The firm has adopted a strong brand strategy. The strategy entails treating its customers as member of the firm. This has played a significant role in instilling customer confidence.

1.2 Aim

The aim of the report is to identify and evaluate marketing opportunities with specific reference to Virgin Mobile Australia.

1.3 Scope

A number of issues are considered in the report. VMA marketing strategies and their impacts on customer base are evaluated. In addition, the firm’s post sale services, products and services are also identified and analyzed. Some of the marketing strategies which VMA should consider are outlined. In addition, the necessary monitoring and resource requirement are discussed. Finally a recommendation and a set of recommendations are outlined.

2.0 Marketing strategies used by VMA

Marketing strategy is a vital consideration in the success of a firm. It entails a firm selecting a target market which it commits itself to satisfy via provision of products and services. This is achieved through incorporation of a marketing mix which includes price, promotion, distribution and the product (Kurtz, MacKenzie & Snow, 2009, p.55). In order to attain its goal of increasing its business and customer base, the VMA has adopted a number of marketing strategies. Some of the current marketing strategies are outlined below.

Strategy Impact on business/ customer base
Competitive pricing strategyThe firm has adopted a simple rate which declines depending on the frequency in which the phone is used. In addition, the call rates are billed on the basis of seconds compared to minutes. In addition, the firm offers free voicemail and everlasting recharge. The firm has not set monthly access fees or put a limit on the amount to spend. Considering the price conscious nature of customers, the low pricing strategy has played a vital role in attracting customers.
Public relations via incorporation of User Generated ContentAll You Can Eat (AYE) campaign is a form of public relation campaign that VMA has adopted to enable the firm gain insight on the level of understanding of the firm’s promotion strategy. The firm also participates in festivals which are endorsed by prominent musicians. The campaign helps in establishing a relationship with the customers which is paramount in increasing its customer base (Newshound, 2010, para. 5).
Mass coverage ( intensive distribution strategy)The firm has established more than 3,500 retail outlets which are located in various cities in Australia via which it distributes its products. In addition, the firm has developed web-based stores and also incorporated telemarketing. These two strategies have not only helped the firm increase its customer base but also its business base.
Product diversificationThe firm offers a wide range of products and services in an effort to meet the diverse customer product and services requirements. According to Penrose and Pitelis (2009, p.120), product diversification aids in increasing a firm’s customer base by attracting new customers.

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