Virgin Canada strikes right chord with target subscriber base: Decima Research

Virgin Mobile Canada has struck the right chord with its intended target audience, according to new data from Decima Research Inc., suggesting the company’s splashy launches in Toronto and Montreal hit the mark with the under-24-age group. Decima Research polled 1,023 Canadians between March 10 and 14 on their knowledge of Virgin Canada’s launch and their perceptions towards the company’s launch activities. The company launched services in Quebec, Ontario, British Columbia and Alberta earlier this month (RoW, March 8/05). Overall, 10% of Canadians are able to identify Virgin on an unaided basis, but that level jumps for specific demographics. The research also shows that males were more likely to be able to identify the company when asked ‘A new company began offering cell phone services in Canada last week. Do you know the name of the company?’ Decima also notes in its research that Canadians with higher income and education levels were better able to identify Virgin Canada on an unaided basis. Of the 10% of Canadians who could identify Virgin Canada, nearly three-quarters are males. Bob Murphy, senior VP at Decima Research, says this shows the company is hitting the mark in terms of its target audience. "Although only one in 10 Canadians could correctly name the company, when we further look at what the favourability of those launch activities and events, you definitely see that the sweet spot is with the young males," Murphy tells Report on Wireless. A sexy launch campaign and brand image is touching the right audience, he adds. A 10% unaided recall may seem low given the company’s high worldwide profile and brand recognition, but Murphy says it’s not surprising given this was a new brand launch in Canada. "In terms of having this level of unaided recall a week after the events took place in Toronto and Montreal, that level is really not surprising," he says. "Certainly all the industry insiders were keeping an eye out, and ears to the ground as to what they were going to do, when and where. But they didn’t use other types of traditional marketing, pre-marketing and teaser campaigns. For that reason, it’s not that surprising." Digging deeper, numbers show that Canadians living in Toronto and Montreal were able to identify Virgin Canada to a greater degree. According to the data, 24% of respondents in Toronto and 18% in Montreal who were able to name the company were able to do so on an unaided basis. Virgin Canada did hold launch activities in Vancouver, but the data shows a low level of brand awareness in the city. It’s unclear why the level of awareness is lower, but it could be attributed to the fact that two previous launches were held in Central Canada, taking the some steam out of the impact of the launch in Vancouver. The company’s launch in Canada didn’t come without controversy. Nurses’ associations across the county were appalled at the gimmick of three faux nurses being rescued by Virgin Group head Richard Branson and demanded an apology from the rebel billionaire. The Canadian Nurses Association (CNA) wrote on March 4, "At a time when the nursing profession is experiencing tremendous challenges, including shortages of catastrophic levels, CNA strongly encourages the Virgin Group to harness its power and find positive ways of supporting nurses to foster a greater public understanding of the valuable contributions these professionals make. CNA would welcome the opportunity to discuss strategies with you in achieving this goal." Despite the negative publicity, the stunt didn’t seem to affect the company’s ability to reach its desired audience or establish acceptance of Virgin Canada’s launch activities. The research shows that there was an overwhelming acceptance of the company’s activities (54% favourable versus 15% unfavourable). Males figure prominently in the favourable category with more than three-quarters having favourable attitudes towards Virgin Canada’s launch events. "They’ve hit their mark on their initial awareness build and then on brand resonance as measured by the general favourability around the activities and events surrounding the launches," Murphy says. The survey was conducted between March 10 and 14 as part of Decima Research’s national omnibus Decima teleVox. Results of the data are accurate within plus or minus 3.1%, 19 times out of 20. Decima Research is affiliated with Report on Wireless publisher Decima Reports. For more information about the data, contact Bob Murphy at (416) 962-2013.

Virgin Canada strikes right chord with target subscriber base: Decima Research

News | March 23, 2005

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