Disrupting the Mobile Carrier Market: Virgin Mobile’s Innovative Approach

Background

• 01 Virgin Group’s Diverse Ventures: Virgin Group, a globally recognized brand, operates in various industries, including telecommunications. The company is known for its innovative ventures and willingness to challenge industry giants.
• 02 Origin in the Music Industry: The company’s history dates back to when Richard Branson co-founded an independent record label, which eventually became one of the largest in the industry.
• 03 Virgin Mobile’s Role: Virgin Mobile is a subsidiary of the Virgin Group, and it plays a crucial role in the conglomerate’s diversified portfolio.
• 04 Fearless Competition: Virgin’s reputation for taking on major players is exemplified by its launch of a brand of vodka and its competition with British Airways in the airline industry.
• 05 Venturing into Diverse Sectors: The brand has ventured into numerous sectors, such as bridal wear, vacations, records, gyms, bank accounts, and mobile phones, showing its fearlessness in tackling diverse markets.

Factuality:

• 01 Virgin Mobile Canada’s Establishment: Virgin Mobile Canada was established in 2005 as a subsidiary of Bell Mobility Inc. It was initially a collaborative effort between Virgin Group and Bell Mobility Canada. Full Ownership by Bell Mobility: In 2009, Bell Mobility acquired full ownership of Virgin Mobile Canada.
• 02 Mission in Canada: The company’s mission in Canada was to be a “no catch” mobile operator and become the most beloved mobile phone service provider in the country.
• 03 Prepaid and Postpaid Services: Virgin Mobile Canada initially operated as a prepaid service and later introduced postpaid services in February 2008.
• 04 Growth and Workforce: The company has experienced significant growth, with revenues exceeding $300 million and around 500 employees, as per its LinkedIn account.
• 05 Offerings for Customers: Virgin Mobile offers both feature phones for customers who don’t require smartphones and smartphone plans with exclusive member access, segmented into Silver, Gold, and Platinum packages.
• 06 Always On Newsroom: Virgin Mobile embarked on a mission to create an ‘always on’ newsroom, adopting the model of a 24-hour ‘social newsroom’ to distribute content quickly and efficiently.
• 07 Buzz with Blogs and Celebs: The company’s strategy included crafting articles that coincided with current social trending topics. For instance, when Miley Cyrus’s performance at the VMAs sparked a significant buzz on social media, Virgin Mobile capitalized on this trend. Virgin Mobile’s collaboration with Buzzfeed, a renowned social news site, played a pivotal role in this endeavor. The partnership aimed to provide a continuous stream of content aligned with trending discussions on the social Web.
• 08 Reach: The results of this content-driven approach were impressive. In 2012 alone, Virgin Mobile achieved 5 million earned content engagements and 4.7 million paid content engagements. The shareable social content generated a brand lift of over 150%, accompanied by a remarkable 7.5 million monthly views.

Challenges:

• 01 Canadian Market Competition: In Canada, Virgin Mobile faced the challenge of attracting subscribers and gaining market share in a highly competitive telecom industry dominated by established players like STC, Mobily, and Zain.
• 02 SIM Activation Revolution: In Saudi Arabia, Virgin Mobile KSA aimed to revolutionize the SIM activation process, allowing consumers to reserve mobile numbers online before visiting a store. This required a shift from traditional SIM purchase processes and creating awareness among potential customers.
• 03 Establishment of a Voice: The primary challenge for Virgin Mobile was to establish a compelling voice in the crowded digital marketing space and generate interest and demand for its products through social advertising.
• 04 Competitive Market: The social Web had already become highly competitive for brands striving to attract and retain user engagement, especially in the telecom industry, where maintaining brand loyalty through meaningful social content was a priority

Outcome:

• 01 Online Success in Saudi Arabia: Virgin Mobile KSA successfully implemented its innovative approach to SIM activation, with around 90% of consumer leads originating from its online platform.
• 02 Google Advertising Impact: Google advertising played a pivotal role in this success, contributing 71% of bookings from all digital advertising.
• 03 Impressive ROI: The return on investment (ROI) for Virgin Mobile KSA was an outstanding 35X, with Google Search delivering a considerably lower cost per lead compared to other digital platforms.
• 04 Online-to-Offline Conversion: Approximately 30% of customers who booked a number online
  completed their journey with a store visit to purchase a SIM.
• 05 Virgin Mobile and Buzzfeed Collaboration: Virgin Mobile and Buzzfeed successfully addressed the challenge by pioneering a unique strategy. They created a 24/7 newsroom that hinged on the ongoing social conversations taking place on the social Web.
• 06 Leveraging the Celeb Connection: In response to the trending social topic of Miley Cyrus and the VMAs, Virgin Mobile and Buzzfeed produced an article titled “13 Celebrities Posing With The Old Versions of Themselves.” This content paired famous celebrities with their younger selves in older photos, leveraging the trend.

Conclusion

• 01 Effective Digital Strategies: Virgin Mobile’s achievements in Saudi Arabia underscore the effectiveness of innovative digital strategies in enhancing brand awareness and engaging with the target audience.
• 02 Youth Market Engagement: By leveraging digital campaigns and engagement, Virgin Mobile effectively reached the hyper-connected youth market segment and increased brand awareness at a relatively low cost.
• 03 Online Transaction Willingness: The success of the online booking system indicates that customers are willing to engage and transact online, opening up promising possibilities for future endeavors.
• 04 Digital Adaptability: Virgin Mobile’s digital marketing strategy highlights the brand’s adaptability and willingness to embrace new digital approaches to maintain a competitive edge in the telecommunications industry.
• 05 Newsroom Strategy: Virgin Mobile’s collaboration with Buzzfeed and its adoption of a content-driven, ‘always on’ newsroom strategy showcased the brand’s adaptability and innovation in the evolving landscape of digital marketing.
• 06 Effective Engagement: Successfully engaged the target audience by capitalizing on trending social topics, resulting in impressive levels of content engagement and brand lift. Virgin Mobile’s foray into content marketing highlights its readiness to embrace new strategies to remain competitive and connect with the new generation of digital customers.