Virgin Mobile Australia Case Study

In a study by Beulen, et al (2006), Virgin Mobile is an upcoming first growing company that runs mobile telephone services within the telecommunication industry. It was founded in 1999 and is presently a fully Virgin Group’s subsidiary. The company prides in having its customers being able to both shop in about 6000 retail outlets in the UK and purchase the company’s services through the internet and cell phones. The company has already penetrated the Australian and American markets and plans are underway to get into Canada. In addition, its aim is to provide full fledged services at affordable prices.

Virgin Mobile allows its customers to only pay for the actual use of their services and does not provide them with subscription services. It does not only focus on wider markets, but is also customer oriented. Rather than introducing new services in the market, the company aims at improving on what is already being provided. With such strategies in place, the company has managed to reach millions of subscribers in the UK apart from being the fastest growing mobile provider globally. A strategy that is keep the company in the changing and ever growing market is outsourcing business processes that can well handled by partners and outside suppliers. Presence of numerous contractors enables the company to respond accordingly to changes in market and hence enabling it to locate and hire required employees.

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It is headquartered at Trowbridge and has its marketing departments in London. Between 2003 and 2006, the company was ranked the best provider of both prepaid and customer care services. Orange, Vodafone, 02 and T- Mobile are Virgin Mobile Australia’s key rivals (Virgin Mobile Australia, 2010).

Virgin Mobile Australia’s Marketing Strategies

In a study by Jaray (2006), Virgin Mobile Australia has devised the following marketing tactics for its products:


Product Collateral (Brochures).

Through this strategy, the company is able to put a list of its available services on brochures. Explanations of how those services operate are made in an elaborate and simple manner.

This enables customers to read them on their own at their own time. Through this, they can be reminded of the products, make choices and change where necessary.

2. Advertising

Virgin Mobile Australia engages in different forms of advertising such as through both print and electronic media to either remind customers of the existing services or to introduce a new service.

3. The website

Given that most of its customers are up keeping with the advancement in technology, the company uses the website to reach out to both potential and existing clients to keep them informed about the features of its services and any changes. In a study by Informa Healthcare (2005), Virgin Mobile has launched the following additional strategies to increase marketability of its services:

4. Simplicity

Virgin Mobile’s success in the US has been attributed to its simplistic approach.

The company begins by taking note of areas of customer strain as outlined by the operator. The company then realizes that simplicity is the only marketing strategy that can make it distinctive. Simplicity has been implemented through the prepaid service where an easy non-contract one-rate charging option has been adopted together with a narrow choice of handsets.

5. Customer Relationship Management (CRM) strategy.

Its elaborate customer experience is one of the aspects that have placed the company above its rivals.

This is one of the approaches that have been very successful with studies showing that a bigger percentage of the United States customers will tell a friend about Virgin Mobile due to provision of its high quality customer related services.

6. 3 G strategy

This is a high investment plan required in provision of services such as content and operator partnerships, and network infrastructure. Through 3 G, the company provides a mobile television service that has a provision for program recording that can then be watched later on, making it an effective marketing aspect.

7. Content strategy

To penetrate most of its markets, Virgin Mobile’s services have based on texts, wallpapers and ringtons. After an agreement with T-Mobiles, the company introduced another content service under its brand virgin extras. Through this, the company’s brand strength was boosted through enabling its clients download digital music.

8. Use of Incentives

In a study by Beulen et al (2006), Virgin Mobile has employed the use of incentives in an effort to retain its customers. First there is the use of 3p texts between virgin to virgin. Secondly, the company has introduced lowest denomination airtime vouchers (? 5).

Thirdly, there is the glue incentive where customers are rewarded with some airtime for every person they connect. Additionally, there is the flash it incentive where clients are awarded some airtime for the much they spent at the Virgin Megastores.

Impacts of marketing strategies on customer and business base

In a study by Manning, Salter and Tuinzing (2005), the marketing mix is used to ascertain the blend of product, price, place and promotion to be used together with the marketing strategy.

StrategyImpact on customer / business base1. BrochuresSaves time and costs that would have been used by the company to explain to customers. Is a reminder to the customer and can reach more customers at reduced costs.2. AdvertisingReaches a wide audience at reduced costs thus increasing the company’s market share.

3. WebsiteEncourages feedback from customers hence giving information on relevant service modifications. Also increases customer interaction with the brand.4. SimplicityIncreases usability of the service among customers resulting to more revenue.5. CRM strategyCompany is able to track individual customers’ performance, monitor and retain them. Enhances good customer relations that increases usability hence more revenue for the company.

6. Content strategyIncreased usability among clients. Boosts the company’s brand making it distinct from its rivals.

Use of incentivesRetains customers by encouraging them to stick to one network. Airtime awards encourage usage and maximize profits. Customer network grows3 G strategyHigh technology improves product quality, attracts many customers leading to increased sales.


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