Virgin Media Promotional Mix Essay

Table of Content

 

 

    • 3.0 Environmental Analysis and Audit 4

 

 

 

    • 3.3 Competition Analysis – Porter’s Five Forces 6

 

 

 

 

 

    • 5.2 Marketing Objectives 10

 

 

 

 

 

 

    • 5.8 Distribution Strategy 13

 

 

    • 6.0 Financial Analysis 15

 

    • 7.0 Implementation Controls 16

 

    • 8.0 Corporate Social Responsibility 16

 

 

 

1.0 EXECUTIVE SUMMARY

This is a comprehensive product marketing plan which is aimed at launching virgin laptops and getting it to the end user. The brand name is virgin mobile under the bigger umbrella of virgin group of companies within which virgin laptop will be officially launched and marketed in the United Kingdom (UK). This country has been selected as the target market because Virgin Group is a very successful company within the UK with huge popularity of the brand. The virgin brand is one that is viewed with lots of excitement and many of its products are often most acceptable and successful within the UK (Johnson 2011).

Also, this marketing plan further makes an environmental audit of the selected market with much emphasis on the level of competition within the market. This will then be followed up with an analysis of the marketing strategy for virgin laptops as well include in the structu sensu, that is the relevant monitoring and control measures that will help facilitate and achieve the objectives outlined (Kotler 2009). This marketing plan also includes a concise discourse of financial requirements that will be needed for an effective marketing of Virgin Laptops.

The conclusion will include valuable recommendations which will involve the need for a 10% contingency fund of the total budget that is meant to be invested into the implementation of the marketing plan in order to facilitate and enhance the future penetration of this product into new markets (Johnson, Whittington & Scholes 2011).

2.0 INTRODUCTION

Marketing as defined by the Charter Institutes if Marketing (Charted Institutes of Marketing 2011) is “…the management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably”. Kotler (Kotler et al 2009: 109) defined a marketing plan as ‘’a written document that summarizes what the marketer has learned about the marketing place and indicates how firm plans to reach its marketing objectives’’.

This plan consists of an environmental audit of the personal computer industry in order to ascertain current position with regards to the retail and banking industry and promotion via different resources such as Internet website directories (i.e. SearchWIZ). The plan employed theoretical frameworks like PESTEL and Porter’s FIVE FORCE. The plan analyzed the product offering and life cycle, marketing strategy, target market, positioning, marketing mix as well as implementation and control. It also made use of strategic clock, BCG matrix and Ansoff Matrix to help evaluate the strategic direction of the company and proposed recommendations.

3.0 ENVIRONMENTAL ANALYSIS AND AUDIT

3.1 PESTEL

The PESTEL analysis of markets aims to evaluate six key features of a new market, namely: a) Political, b) Economical, c) Social, d) Technological, e) Environmental, and f) Legal. According Johnson, Whittington & Scholes (2009:56), this is particularly important as these factors will influence either the success or failure of the new product ‘Virgin range of laptops with windows eight (8)’ in the UK. The following is the PESTEL analysis of Virgin laptops for the UK market:
a) Political and legal factors: The ever increasing focus of both governmental and non-governmental organisations on the environmental impact of high-tech has led to more stringent environmental regulations on the electronic industry such as RoHS (Restriction of Hazardous Substances) and WEEE (Waste Electrical and Electronic Equipment) Directive (Dalal 2009). Additionally, testing and certification directly affect the supply chains of PC manufacturers which will increase manufacturing cost and lowering profits (Dalal 2009). Other than these key issues, the UK provides a fairly stable political and legal market environment.

b) Economic factors: An increase in VAT from 17.5% to 20% in order to tackle budget deficits will increase corporate spending and an increase in the minimum wage to 15.5% will have a positive effect on the demand (HM Revenue and Customs 2011). However this decline will be followed by a gradual increase in terms of market share from an expected 5.4% in 2009 to 4.4% in 2012 (Gartner 2008).

c) Social: Factors such as education, preference and income levels affect the purchase of laptops within the UK. The UK is a highly literate society and for that matter the usage of laptops is a part of the norm. For instance, within the UK, consumers spending rises during festive periods and demand for laptops will as well rise (Gartner 2009).

d) Technological: Consumer demand for sophisticated gadgets ranging from laptops to phones makes it appropriate the virgin brand to go into laptop production because it offers the sophistication consumers yearn to have.

3.2 SWOT ANALYSIS

The Strength, Weaknesses, Opportunities and Threats or SWOT analysis is one of the most commonly used tools to evaluate the suitability of markets for the launch of a new product. This framework is used to assess the products’ feasibility in meeting market needs as well as available future courses of action that can be exercised to lead to successful introduction of those products(Johnson, Whittington & Scholes 2009:119). The following is the SWOT analysis of Virgin laptops for the UK market:
a) Strengths: Virgin laptops will meet the expectations of consumers as more emphasis will be placed on the chip that will make processors much smaller and light-weight which is ideal for tablet PCs and Ultrabooks. Thickness – Less than 0.71 inches or 18 millimetres, Weight – Less than 3.1 pounds or 1.41 kg, Battery Life – More than 5 hours, will have Intel’s Rapid start technology and also have flashed based drive for storage (Pinegar 2002).

b) Weaknesses: Virgin mobile, although a part of the prominent Virgin group, is not a major player in the market for laptops and personal computers. It has low brand visibility and low brand loyalty which implies that it will take time for this product to be to penetrate into the market.

c) Opportunities: The virgin brand is one that is most revered within the UK market and for that matter, what customers feel about the virgin brand will be transferred to virgin laptops and it will therefore help in the marketing of this new product. The internet market has matured since the technology sector continuous to grow even in the wake of the financial downturn (Gartner 2009).

d) Threats: The personal computers industry is controlled by five major manufacturers. These are: a) Dell Inc, b) Hewlett-Packard, c) Gateway, d) Lenovo/IBM, and e) Apple Computers with more than 64.2% of market share which will be a threat to this product (Davis 2009).

3.3 COMPETITION ANALYSIS

Michael E. Porter’s five forces model for analysing competition is one of the most widely used market analysis tools. As the name suggests, the model focuses on five key forces that influence the competitive environment of a product. The forces are: a) Entry barriers, b) Threats of substitutes, c) Bargaining power of suppliers, d) Buyers bargaining power, and e) Rivalry from established companies offering the same product. The following is the analysis of market competition for Virgin laptops in the UK based on Porter’s Five Forces model:
a) Threats of new entrants: The cost of production and distribution are the factors that make entrance high (Johnson, Whittington & Scholes 2010). The five main manufacturers are dictating the pace with more than 64.2% of market share (Davis 2009). It implies that new entrants will need to invest so much with low prices in order to compete with market leads (Kotler 2009).

b) Threat of substitute products: The threat of substitute is high because there are several alternatives as phones, tablets and this has resulted in low degree of product differentiation (Davis 2009). With continuous technological innovations, products are developed with similar attributes to laptops with each firm manufacturing product that directly competes with competitors which in the end acts as a substitute (Dalal 2009).

c) The Bargaining power of buyers: Bargaining power of buyer’s is low due to the fact that companies have what is referred to as brand equity and therefore buyers have in-depth know-how about the products available in the market (Dalal 2009).

d) The Bargaining power of suppliers: The microprocessor industry is dominated by Intel technology which holds a market share of over 50 % for the distribution of microprocessors in the market. Consumers usually demand laptops with consistent software and hence as a result of the high degree of product differentiation, changing suppliers becomes difficult which therefore leads to a high supplier power (Anderson 2007) implying moderate bargaining power of suppliers.
e) Intensity of rivalry: There is evidence of strong rivalry among dominant companies within the UK because of the fact that they control more than 64.2% of the UK market share and therefore competition levels are very high within this industry (Anderson 2007).

Figure 1 illustrated the five forces analysis for Virgin laptops in the UK.

Figure 1

With the above, is conclusive that the UK PC industry is a hyper competitive one and new firms will be successful in such an industry if they have the technical expertise and adequate capital and with brand equity being a matter of need, virgin mobile and virgin group as a whole has what it takes to penetrate into the UK market despite some of these challenges.

3.4 PRODUCT OFFERING

The company will brand and package products to add to a perceived value of customers (Kotler et al 2009:506).By purchasing the product consumers will get the following benefits:
Core Product: Durability, fashionable
Actual Product: Customer satisfaction
Augmented benefit: Ethical standards linked to fair trade products

Source: Style communications
Virgin mobile will introduce the following range of laptops:
Processor: 2nd generation Intel® Core™ i5 (windows 8)
i7 processor (2.20 GHz, with Turbo Boost 2.0 up to 3.10 GHz)- (windows 8)

6.0 PRODUCT LIFE CYCLE

The life of most products is segregated into five key phases, namely: a) Product development, b) Product introduction, c) Product growth, d) Product maturity, and e) Product decline. The typical product life cycle is depicted in Figure 2:


Figure 2

The above diagram shows that virgin ultra – laptops is at the introduction stage but can increase sales revenue by focusing on the brand image of the parent company virgin mobile under virgin group. The product will be at the maturity stage in 3years through rigorous advertisement.

5.0 MARKETING STRATEGY

The marketing strategy offers a direction on the ways of getting a product/service to the consumer which is guided by a routine set of duties and responsibilities. For the effective marketing of Virgin laptops, a pre-emptive strategy will be used whereby a general claim is made but with some assertion that one’s brand is superior (Pickton & Broderick 2005:427).

5.1 MISSION

To offer consumers with intrinsic value of quality durable laptops with greener technology this will come at affordable prices.

5.2 MARKETING OBJECTIVES

By introducing a new product line of virgin laptops, virgin mobile aims to achieve the following objectives:
Short term: To increase brand awareness by 10% which intended to achieve a market share of 5% from 2012 – 2013.
Medium term: Ensure customer satisfaction by 20% through surveys and product development by 2014.
Long term: Launch product in Europe and achieve 6.5% increase in sales between 2014-2015

5.3 TARGET MARKET

As a result of increased computer literacy, the demand for laptops with extra features is rising but will be done on a pilot basis; this product will have its target group as university under-graduate students between the ages of 15-24. There will however be a shift to encompass all university students and professionals in the medium and long-terms respectively.

5.4 POSITIONING

Strategic positioning involves decisions about setting initial prices of a product(s) in response to competitive challenges in the market (Kotler, Keller, Brady, Goodman & Hansen 2009:853). The image is intended to be created as a pre-emptive strategy to help position virgin ultra – laptops as is to position the ‘Virgin Laptops with windows eight (8)’ with emphasis placed on its type not being in the market yet with the features it has and yet prices are comparable to current market leads.

5.5 SEGMENTATION

IT is important to segregate a product’s target market into segments as this allows better focus of marketing and sales effort on those audiences that are most likely to make a purchase of the product. Virgin range of laptops will target university students and professionals since among these groups, laptops have become necessities rather than wants. Research in the light of the economic recession, demand for laptops is on the rise after a fall in 2008 (Garoia 2010).

5.6 ANSOFF MATRIX

Considering Ansoff matrix, Virgin laptops is a new product being introduced in an existing market and therefore categorized under the product development quadrant. The product has a chance of penetrating into the market because of consumers are not only interested in intrinsic value but ethical factors as well (Emerald 2003). With regards to market penetration sales would also be improved by advertisement on brand awareness as well as promotions, discounts, contract laptops, etc. There will be no immediate diversification since the product will need to reach its maturity stage of the product life cycle before diversifying into either related or unrelated products will be considered. Figure 3 highlights the Ansoff Matrix for Virgin laptops for the UK market:

BCG MATRIX

The BCG Matrix was developed by Boston Consulting Group aimed at assessing business potential and evaluating the market environment. Analysing the BCG matrix above shows virgin laptops with windows eight (8) is among the question mark category because it is at the introduction stage of the product life cycle where market share is normally low. This product has a potential of becoming a star at the growth stage. Figure 4 shows the BCG Matrix for Virgin laptops in the UK market:


Figure 4

Source: Sooper Tutorials

5.8 DISTRIBUTION STRATEGY

Distribution strategy includes selection and management of channel relationships to deliver value to consumers (Kotler et al 2009:853). Our direct distribution channels consist of our website and Virgin Mobile at your Service, our toll-free customer care centre and the use of a third-party retail distribution channels such as Nextel Stores, Target Stores. A four – party retail distribution channel also include Amazon.com will place product within their stores to promote sales (Lynch 2008).

5.9 MARKETING MIX

PRODUCT: Virgin ultra – laptops will be made-up of Chip that will make processors much smaller and light-weight which is ideal for tablet PCs and Ultrabooks. Thickness – Less than 0.71 inches or 18 millimetres, Weight – Less than 3.1 pounds or 1.41 kg, Battery Life – More than 5 hours, will have Intel’s Rapid start technology and also have flashed based drive for storage with windows eight (8) which is not available in the market presently. This product is also manufactured to be environmentally friendly. This will be very appropriate for the current laptop consumer market.

PRICING: Prices will be earmarked to meet middle income earners purchasing levels since most of UK population consider themselves middle or working class people (BBC 2009). This marketing plan will use customer based pricing approach since we aim to penetrate into the market by persuading consumers from switching to virgin range of laptops;
Prices:
1 Virgin ultra-laptop 14” (windows eight) – £650
2 Virgin ultra-laptop 15.6” (windows eight) – £700

PLACE: This product will be introduced in UK as a test market which will be followed with a survey to ascertain customer satisfaction and the feedback will influence the launch of the product in the European economies in the long term.
PROMOTION: Virgin mobile under the virgin group is a strong brand in the industry but to further increase consumer awareness of its new product line ’virgin laptops’, raise awareness about the new brand under the bigger umbrella of the well-recognised virgin brand, advertisement campaigns will be staged via online and offline marketing communication channels. It also includes advertising on websites as direct communication through blogging Google, yahoo, and gum tree etc. (Kotler, Keller, Brady, Goodman & Hansen 2009:711).
PEOPLE & PROCESS: Virgin mobile has a well-developed marketing department. However, an introduction of a new product requires training on departmental basis to equip workers with the necessary information on the new product. The product will be marketed through existing marketing channels as well as online. A simplified IT approach will be used where a low-touch uniform infrastructure spanning the desktop to the data centre will be employed to the measurement of operational efficiency (Dell 2012).
PHYSICAL EVIDENCE: Through billboards, magazines and live TV commercials showcasing the new range of laptops, consumers will get to know the quality and durability of the virgin laptops before the launch of the product in the UK.

6.0 FINANCIAL ANALYSIS

Price penetration strategy as mentioned in the marketing mix will be employed with an estimated average price pegged at £550 and £6500 prices respectively. An average variable cost is estimated at £400 and £450 respectively. The initial fixed cost for the production of the virgin range of laptops is estimated at £5,000,000 and £6,000,000 respectively which will total £11,000,000. Virgin laptops intend to start making profit from the 2nd year when the product break even with an increased sale volume of £3,000,000.

7.0 IMPLEMENTATION AND CONTROLS

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Servicess selling are a signifier of selling which focuses on selling services. Servicess can be slippery to sell and the selling attack for them is much different than the attack for merchandises. Some companies offer both merchandises and services and must utilize a mixture of manners ; for illustration, a shop which sells phone besides tends to offer services such as assisting people select phone as contract and supplying broadband service and phone fix. Such a shop must market both its merchandises and the supporting services it offers to appeal to clients.

When people market services, the end is non to acquire clients to purchase a merchandise, but to acquire people to make concern with a peculiar company, frequently in a specific location. For illustration, virgin media offers broadband and internet service: It provides phone, cyberspace and Television service for the clients, both on-site and in to-go signifier in many instances. When the company markets itself, it must convert people that it is preferred to other broadband and that its installation is worth the trip.

Virgin Media is an advanced new media company that was formed as a consequence of a amalgamation between NTL and Telewest and so a re-branding as Virgin Media. Its chief strength lies in the stigmatization and the invention that the name Virgin offers. Internally, Virgin Media is the lone company in the United Kingdom that offers all four of the chief media services, i.e. digital telecasting, broadband, fixed line telephone and nomadic phone bundles. The ability to offer these merchandises all together in one package is the alone merchandising point of Virgin Media and clearly sets the company apart from its rivals.

Swot analysis

Swot analysis is the most of import and first phase of planning. It is a feedback mechanism to do new schemes for any administration. Strengths, Weaknesses, Opportunities and Threats are the four constituents of a swot analysis. Failings and Strengths are correlated and analyze the internal portion of the concern analysis whereas Opportunities and Threats deal with the external environment of concern operation. Failings and strengths refer to aspect of selling, finance, fabrication or organizational construction. Swot analysis helps clarifies the aims of the administration

Strengths

In offering these combined services, the company has significant economic systems of graduated table as it is able to unite many of its generic functions such as disposal and finance, therefore leting the company to monetary value more competitively for the benefit of its clients. Due to its perceived prima trade name name in the media, Virgin Media has managed to procure an on-going contract with Sky, widening further still its inclusive offering to its clients. Technical ability and substructure are besides two of the cardinal internal strengths of the company, which have been exploited to bring forth a market taking place.

Failings

Despite this, the company does hold some internal failings that need to be managed. The amalgamation between NTL and Telewest is still comparatively new and there are cultural clangs between the two manners and the emerging Virgin manner. In recent old ages, there have been several redundancies and outsourcing of client services, in an effort to convey down costs. This has resulted in a grade of unsettled behavior and deficiency of trueness from staff. Due to the size and complexness of the turning administration, there are likely to be ongoing struggles which will necessitate to be managed if this cultural displacement is non to impact on the client experience.

Opportunities and Menaces

Externally, the chances and menaces confronting Virgin Media are of all time altering. The media sector is developing an exceptionally fast gait, ensuing in both chances and menaces for companies such as Virgin Media. Opportunities are widely available for Virgin Media, preponderantly in offering value added services such as on-line gambling or more dependable broadband connexions. Bundling these media services together, as Virgin Media has already done offers yet farther chances within the media sector, in footings of hold oning greater market portion. Consumers like simple, one-stop shopping when it comes to the media options available ; this is something that Virgin Media can go on to work, peculiarly now that it has signed an understanding with Sky.

Menaces to Virgin Media semen from other similar media companies such as Orange or BT who remain as big participants in the market. In peculiar, Virgin Media is rumoured to hold troubles with its substructure dependability, which could potentially let rivals such as BT to increase market portion. The media sector as a whole is highly fast moving ; hence, the chief menace is that Virgin Media may neglect to maintain gait, therefore losing its client base to another more advanced company.

The flower of service

Facilitating elements ( services )

Information: Customers frequently require information about how to obtain and utilize a merchandise and services. They may besides necessitate balances and certification. Example,

Of virgin broadband information services are: Direction to serve site and utilizing direction, warning and insurance, footings and status of services.

Order taking: Many goods and services must be ordered or reserved in progress. Customer needs to cognize what available and may desire to procure committedness to bringing

Charge: ” How much do I owe you? ” .Customers deserve clear, accurate and apprehensible measures and statements.

Payment: Customer may pay faster and more cheerfully if Virgin makes minutess simple and convenient for them.

2 ) Enhancing services:

Consultation: Value can be added to goods and services by offering advice and audience.

Safe maintaining: Customers prefer non to worry about looking after the personal ownerships that they bring with them to a service site.

Exceptions: Customers appreciate some flexibleness in a concern when they make particular petition. They expect it when non everything goes harmonizing to program.

Cordial reception: Customers who invest clip and attempt in sing a concern and utilizing its services deserve to be treated as welcome invitees.

User Preparation

When implementing new system, it is of import that forces, employees, directors and others in the organisation are prepared for it. This procedure is besides called procedure of cooking the determination shapers, directors, employees, and stakeholders for a new system. In this respect, user preparation becomes really indispensable, because without it the success of the system can non be guaranteed. This procedure of user readying is planned and executed decently and involved a batch of agreement, and consideration ( Stair & A ; Reynolds, 2008 ) .

Virgin Media, the UK ‘s prima fiber-optic broadband supplier presently has about 60,000 SME and public sector broadband clients, but has announced that it is looking to turn this significantly.

Virgin Media has unveiled programs to aim the little and medium concern clients of its rival broadband giant BT.

The move comes shortly after BT ‘s committedness to undersell Virgin Media ‘s residential super-fast broadband monetary values, with its new fiber-optic broadband service which BT is turn overing out this twelvemonth.

There is a really large market up for grabs, as little and moderate-sized endeavors ( SMEs ) spend about ?18bn a twelvemonth on IT and telecoms.

Virgin Media presently have grosss of about ?600m dad from concern broadband clients and this is forecast to lift to about ?1bn dad in three to five old ages.

Virgin Media head runing officer Andrew Barron said: “ This is another measure frontward. We ‘ve been working in the concern division for 18 months on acquiring the concern processes to the right degree. We ‘ve improved it dramatically. We can utilize the fiber-optic web to distinguish ourselves. ”

Marketing communicating Mix:

The selling mix is the set of governable tacticle selling tools that the house blends to bring forth the

Response it wants in the mark market ( Melewar. T.C. , & A ; Saunders.J, 2000 )

Selling communications are the agencies by which houses attempt to inform, carry, and remind

consumers straight or indirectly about the merchandises and trade names that they sell. A company s sum

marketing communicating mix besides called publicity mix ( Kotler, 2005 ) consists of specific blending of

advertisement, personal merchandising, gross revenues publicity, public dealingss, and direct selling tools that are used

by company to prosecute its advertisement and selling aims.

The selling communicating activities which contribute to the

selling of any new or bing merchandise: by making consciousness of the trade name ; associating the right

associations to the merchandise ‘s image in the consumer ‘s memory, easing stronger consumer-product

connexion etc.

Current extended selling mix selling mix.

Peoples – People is one of the elements of service selling mix. Peoples define a service.. In instance of service selling, people can do or interrupt an organisation. Thus virgin media presents are involved into specially acquiring their staff trained in interpersonal accomplishments and client service with a focal point towards client satisfaction. In fact many companies have to undergo accreditation to demo that their staffs are better than the remainder. Decidedly a USP in instance of services.

Process – Service procedure is the manner in which a service is delivered to the terminal client. The procedure of a service company such as virgin media in presenting its merchandise is of extreme importance. It is besides a critical constituent in the service design, wherein before set uping the service, the company defines precisely what should be the procedure of the service merchandise making the terminal client.

Physical Evidence – The last component in the service selling mix is a really of import component. As said before, services are intangible in nature. However, to make a better client experience touchable elements are besides delivered with the service. Physical grounds is used as a discriminator in service selling.

This is the service selling mix ( 7p ) which is besides known as the drawn-out selling mix

Position

Positioning in different countries is non ever easy ( I can state it is excessively hard ) . Virgin Group was cognizant of the troubles so they had to believe about the Virgin trade name name. They have ne’er entered in a concern before making solid researches and analysis. They have reviewed the industry and tried to look from clients ‘ eyes. They were cognizant of the tradeoffs they had to believe before come ining a new concern venture and they have ne’er underestimated the hazards behind new entryway.

Ad

Virgin Media launched to much ostentation in February 2007, with a public dealingss event and an expensive advertisement run which covered major UK telecasting channels, newspapers and hoardings. In an attempt to increase consciousness of the group and its services, Virgin Media ‘s run used bright ruddy colors to portray its trade name image. Recent [ update ] telecasting advertisement featured actress Uma Thurman and comedienne Ruby Wax, and presently [ update ] characteristics actor Samuel L Jackson, whilst the print advertisement characteristics bold typography. Virgin Media besides sponsored the Channel 4 world Television show Big Brother until the terminal of the 9th series.

Virgin Media Business/

On Thursday 11 February 2010, Virgin Media announced that its concern division would be rebranded as Virgin Media Business with immediate consequence. The company, which had been runing as ntl: Telewest Business, is now the largest B2B trade name in the Virgin Group. This marked the terminal of the NTL and Telewest being used by the company.

Virgin Media Business is the UK ‘s lone telephone company with a national fiber ocular Next Generation Network. Administrations working with Virgin Media Business include London City Airport, Arqiva, Hampshire and Isle of Wight Partnership and South West Water.

Consumer behaviors

“ Understanding how consumer behavior is altering will be an of import demand of Virgin Media ‘s approaching music offering and, should they go jurisprudence, the Government ‘s legislative proposals will besides necessitate measuring of the degree of copyright violation on ISPs ‘ webs. Detica ‘s CViewa„? engineering potentially offers a non-intrusive solution which enhances our apprehension of aggregative client behavior without placing or hive awaying single clients ‘ informations. ”

Consumer Section

We face intense competition from a assortment of amusement and communications service

suppliers, which offer comparable broadband cyberspace, telecasting, fixed line telephone and Mobile

telephone services. In add-on, technological progresss and merchandise inventions have increased, and will

likely continue to increase, the figure of options available to our clients from other suppliers

and escalate the competitory environment. See ”Risk Factors-We operate in extremely competitory

markets. ” However, we believe that we have a competitory advantage in the U.K. residential market

due to the superior proficient capablenesss of our overseas telegram web over the web of the incumbent BT,

which many of our rivals rely on to supply their services. We besides face intense competition in

the nomadic telephone market, chiefly driven by increased pricing force per unit area from both established and

new service suppliers, germinating client demands and technological developments.

We offer most of our merchandises on a stand-alone footing or as portion of bundled bundles designed to

encourage clients to subscribe to multiple services. We offer broadband cyberspace, fixed line

telephone and nomadic telephone and information services throughout the U.K. , and presently offer telecasting

services entirely in countries served by our overseas telegram web

Cleavage, Targeting, Positioning ( STP )

Before start think about selling ( 4P ) , you must understand what is STP. Footings of STP include: market scheme ; mark markets ; positioning ; market cleavage and mark markets ; market cleavage and demographics

Cleavage

Cleavage: Identifying all sections for the product/service. Many of the resources listed in faculty 3 will be helpful to you when you develop sections. To be utile, sections should be:

Measurable

Accessible ( can you make them )

Profitable

Distinct from one another

the aim of cleavage is to happen attractive markets. Schemes include

Break market into constituents

Regroup into market sections

Select which section to aim

Targeting

Virgin Media is presently figure two in the place broadband market in the UK, but it evidently does n’t desire to be left behind when it comes to broadband on the move. The company has its own-brand nomadic phone service, so it ‘s was n’t that much of a spring for it to add nomadic broadband into the mix.

Virgin is offering nomadic broadband via a figure of different trades. For illustration, if you ‘re already a Virgin client utilizing it ‘s XL ( 20Mb ) or L ( 10Mb ) overseas telegram broadband bundles or its ADSL Bundle 1 offering, you can acquire nomadic broadband with a 1GB use allowance for an extra five-spot a month. If you ‘re on one of the lower-end place broadband trades you can acquire the same bundle for a 10 a month.

However, for this reappraisal we ‘re looking at the standard retail battalion which targets people who do n’t already hold a Virgin service. This trade costs ?15 a month on an 18-month contract for a 3GB monthly download allowance and a free USB modem

Positioning.

Positioning is an indispensable constituent and accomplishment in good selling. Perceptual maps are used to find the place of a merchandise, house, individual, service or thought. Positioning maps or perceptual maps can be simple, yet really effectual selling tools. One definition of Positioning Theory is: the scientific discipline of perceptual scheme. It is based on a theory that scheme can merely be planned in the head of the consumer, non the marketplace* .

It is of import to understand the degrees of competition because positioning applies at all degrees of competition. For illustration:

Product Level

Corporate Degree

Industry Degree

The STP Process

The turning usage of the STP procedure has occurred as a direct consequence of the prevalence

of mature markets, the greater diverseness in client demands, and the ability to

make specialized or niche sections. As such sellers are progressively sectioning

markets and placing attractive sections ( i.e. who to concentrate on and why? ) ,

in order to place new merchandise chances, develop suited placement and

communications schemes ( i.e. what message to pass on ) , and efficaciously

allocate resources to identify selling activities ( i.e. how much should we pass

and where? ) . Organizations will frequently committee cleavage research when

they want to re-scope their selling scheme, look into a worsening trade name,

launch a new merchandise, or reconstitute their pricing policy. Organizations runing

in extremely dynamic environments seek to carry on cleavage research at

regular intervals, to maintain in touch with alterations in the market place.

STP refers to the three activities cleavage, aiming, and positioning

Beginnings

1. Virgin Media, 4th one-fourth 2007 consequences presentation, February 2008.

2. Carphone Warehouse Plc 4th one-fourth trading update, April 2008.

3. “ Domestic Competitive Market Review ” , 2004, Ofgem.

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