Virgin mobile usa: identifying a target market


Richard Branson enlisted Dan Schulman to become the CEO of Virgin Mobile USA, a newly formed start-up in highly competitive and mature industry.

One of the first tasks that Dan had to accomplish was to choose his target market. After getting loads of data from IDC and Salomon Smith Barney, and studying it for several weeks, he noticed that among consumers aged 15-29 penetration rate was around 45% versus about 50% for general population. Also the growth rate for this particular group was predicted to be strong in the next 5 years.

“Why haven’t the big players targeted this market?” Dan asked himself. One reason was that young consumers often didn’t have good credit history and didn’t pass the credit checks required by cell phone contracts. Another reason was that the cell phone companies were wary to acquire low value subscribers, because their average cost of acquiring customers was about $370 per customer and they were afraid that this group would be unprofitable for them.

Despite these challenges, Dan’s team decided that this segment of the market represented the greatest opportunity. Schulman explained: “This is a market that has been underserved by the existing carriers. They have specific needs that haven’t been met.”

After more marketing research, Dan’s team was able to compile an average profile of their target customer:

A lot of the consumers in this age group are in flux in their lives. They are either in college, they are just leaving their home, or they may be getting their first cell phone. Their usage is probably inconsistent. One month, they may not use the phone at all, and another month, they may use it quite a bit, depending on whether they are on vacation or in school.

Their calling patterns are different from the typical businessperson. They are more open to new things, like text messaging and downloading information using their phones. And they are more likely to use ring tones, faceplates, and graphics. Phones are more than a tool for these young people; they are a fashion accessory and a personal statement.


1. What factors did Dan’s team use to choose a target segment?

2. Did they consider the ‘fit’ factor? Why?

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.