Reasons For Failure of Virgin Mobiles

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 23

Through

Renovation

Harshita Srivatava
Charu Sharma
Karishma Singh
Present before you
Detailed Analysis of failure of
and strategies to bring it back to race.

Virgin mobile is a wireless communication brand


used by eight independent brand-licensees
worldwide.
Virgin Mobile wireless entity is typically a
partnership between Richard Branson's Virgin
Group and an existing mobile network operator.
It launched its brand in India in March 2008.
It is primarily a MVNO company, and retail
distribution is only a part of the overall strategy.

Virgin, a leading branded venture capital organization, is one of the


worlds most recognized and respected brands. Conceived 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,leisure,music,holidays ,
publishing and retailing. Virgin has created more than 200 branded
companies worldwide employing approximately 50000 people in 29
countries. TTSL which is the second largest CDMA operator with 22
million customers,will sell the youth based mobile service under the
brand name of virgin mobile.

The basic reason for the failure of Virgin Mobile


was that it chose wrong operator -it made entry
into India partnering TTSL in March, 2008.That
time TTSL was offering mobile services only on
CDMA as Tata Indicom . Tata Indicom has no
circles where it is positioned 1st or 2nd or 3rd as
per subscriber base.

USER

RATIO

Virgin Mobile chose wrong technology


CDMA while it targets youth population.

CDMA is not a preferred technology for youth


as to be a Virgin one need to get a CDMA
handset. Virgin did not introduce any great
CDMA handset which can attract youths.

Virgin Mobile Internet plans are not really


cheap, often hidden with daily rentals.

Virgins foray into data card market never


works because TTSL never wanted to give
competition to its own Photon+. No cheap
tariff for youth certainly gives a thumbs down!

Interestingly Virgin strategy is followed by


Tata Docomo which is GSM wing of TTSL, Tata
Docomo with its catchy TVC, presence on
social sites and exceptional 1p/sec tariff made
a overwhelmed entry.
Smartpaid concept of Virgin is now placed in
Tata Indicom as Smart Postpaid.

Following Virgin GSM launch on Tata


Docomos network Ranbeer Kapoor and
Genelia were roped as Brand Ambassador
Now he is on the TVC for Tata Docomo.

And.
Do you feel theres any chance that
Virgin 3G can ever roll out Tata
Docomo 3G network ???!!!!!

Some of the flaws which we have witnessed


practically with virgin is that it has a very poor
network provider
Even the customer care service is not sufficient
enough to meet the demands of people.
Often we get to hear the busy
or not
reachable tone...
Tarrifs and data packs were too costly for an
average customer to afford it.

Firstly it should give up its hope to flourish in


the CDMA Industry.
The question still remains that How come
CDMA reliance established its empire?
So, the answer to this is that Reliance is already a
well settled and renowed name in itself.
For virgin to compete with any of these , the first
and foremost thing it will have to do is establish
an independent industry , gaining attention of
common masses and prove itself trustworthy.

Instead of collabrating with TTSL or any other


company , it should establish its independent
network system in India also as is the case in
other countries.
The advertisements should be made user
friendly.
Random and vague advertisements should be
avoided. Most of them go above rhe head of a
common man.

As style is need of Today .. Virgin should


make more durable as well as attractive and
stylish phones.
As in India , potential customers are youngsters .
So , phones must be attractive and have smart
features.
These qualities are necessary to cope up with
the leading companies like samsung , Nokia ,
Apple.

More to come in coming


slides.

You might also like