Thursday, October 21, 2010
My Marketing blog about Pricing
Wind Mobile was launched with cheaper phone rates in Canada in December, 2009, drastically undercutting competition.
The title of the article in the link above from Toronto Star newspaper screams “Wind launches with cheaper phone rates”. And the first sentence of the report reads “Globalive started selling its new cell phone service Wednesday with a baseline package that drastically undercuts its competitors”. Wind Mobile Canada is a Canadian wireless telecommunications provider operated by Globalive, that was launched in Toronto in December, 2009 with very low introductory rates. This is a clear example of Market Penetration strategy using price as a weapon. In other words, this is an example of Penetrative Pricing.
Wireless service is expensive in Canada. Customers are always looking for better deals in order to save money, especially, in the current period of economic slowdown. Everyone wants to have more service or more of the products for lesser price. Wind mobile spotted an opportunity for market entry here using price as a competitive tool.
The prices of Wind Mobile at the time of introduction were quite cheap and offered twice the amount of minutes as Koodoo and Fido. In addition, there was no contract, no system access fees, no charge for incoming calls, unlimited province wide calling (within Ontario) and so on. I also noticed that the introductory rates were quite low and the initial customers were given much more special offers and discounts, as compared to later subscribers. However, inspite of that, and inspite of entry of newer players like Public Mobile, Mobilicity and Chatr, Wind Mobile still has among the best deals in the market right now.
I personally switched in July, 2010 from Fido Prepaid to Wind Mobile wireless service and I could not have been happier. With Fido, I had to constantly keep refilling currency into my account. I used to spend on average, $100 a month and be pretty frustrated. But with Wind Mobile, I have no worries at all.Wind Mobile has been successful in creating sufficient buzz through its excellent advertising as well as its pricing strategy. As long as the company continues to provide its customers decent service at a good price, I guess there shall be customer loyalty and the company shall continue to thrive. Atleast, I can speak for myself and say “I love my Wind Mobile service!”.