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Case: Virgin Mobile Pricing for the very first time Rules: 1.

. The WAC should be on the given format: a total of 10 pages with a maximum of 5 pages of text and a maximum of 5 pages of exhibits; font size: 12; font: Times New Roman; typed 1 1/2 spaced with one inch margin on all sides. Pages in excess of 10 will not be graded. Any violation of formatting conditions will lead to one grade lower than that actually obtained, e.g. A would become A-. 2. This is a GROUP WAC (group of 02) as already confirmed by the instructor. 3. Students should write their Roll Numbers & Name on the WAC. 4. The WAC must be submitted on Moodle by 1830 hours on Tuesday 21st of March, also students need to bring in hard copy and submit it to instructor before start of class. 5. Kindly note plagiarism, cheating and using other unfair means constitute unprofessional conduct. If I find any lines of text copied from internet I will give a straight zero with no concessions. 6. A sample WAC along with the case is given to you, please read through it to understand what sort of analysis I am expecting, only writing case facts would not help. When possible justify your reasoning by numbers (if possible). 7. Please go through the reading How to analyze case provided earlier for a better understanding on the way to approach WAC. 8. As communicated earlier I will mark your highest scoring WAC as your mid-term exam so this might be your chance to improve your scores. I am giving you ample time so this time I will not hear any excuse on your official or personal commitments. Also this might be the last WAC and your chance to pass the exam so go grab it.

Case Questions Note: Please do not answer the questions in a one by one manner. Instead these questions are there to guide you on what lines should you be analyzing the situation on.

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Do you agree with Virgin Mobiles Target Market selection? What are the risks associated with targeting this segment? Given Virgin Mobiles target market (14-24 years), how should it structure its pricing? a. The case lays out three pricing options which one would you choose and why? b. In designing your p[pricing plan be as specific as possible with respect to various elements under consideration (Contract size of subsidies, hidden fees,.. etc.) Provide evidence of the financial viability of your pricing strategy. You should be able to provide information on acquisition costs and a breakeven (either as a monthly charge or a break even charge). Hint: Exhibit 11 can be of great help as in cellular industry the Customer Life Time Value (CLTV or LTV) is a parameter to judge attractiveness of a particular customer segment. The cellular industry is notorious for its high customer dissatisfaction. Despite the existence of customer service large telecommunication companys churn roughly 24% of their customers each year. What is the source of this customer dissatisfaction? How have the various pricing variables (contracts, pricing, buckets, hidden fees, off-peak hours etc) affected the consumer experience?

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