Vertu Mobile Phones: Luxury Redefined

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Case Details:

Case Code : MKTG151
Case Length : 11 Pages
Period : 2002-2006
Organization : Vertu
Pub Date : 2006
Teaching Note :Not Available
Countries : Worldwide
Industry : Telecom

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Vertu Collections

The Vertu Ascent Collection, launched in January 2004, was also made of stainless steel, ceramic, sapphire crystal, Liquidmetal alloy, and leather. The collection was inspired by high-performance luxury cars...

The Concierge Service

Every Vertu phone came with a Vertu Concierge. When a person bought a Vertu phone, he/she automatically became entitled to use the concierge service...

Who Buys the Vertu?

When the Vertu Signature was launched, it became popular with celebrities such as David Beckham, Gwyneth Paltrow, and Madonna. However, priced as they were between US$ 5,650 and US$ 26,550, the phones were out of the reach of the merely 'wealthy' - only the super-rich could afford them.

"These are people who buy the best quality watches, the best quality fashion devices," said Litchfield. Initially, owing to its steep price, even the team at Vertu were not sure what the demand for the phones would be. "I can't give you a (market) figure because nobody knows," said Litchfield...


Vertu, by virtue of the fact that it was a category creator, faced no competition at first. "That's one of the exciting things -we are creating a new market. The market size will be determined by the sorts of products and services that Vertu offers because we don't believe we have any real competition today,"...


In 2005-06, Vertu expanded its presence, especially in Asia. "In Asia, the buying patterns and replacement cycles for handsets are very high. Mobile phones also serve as status symbols, especially in countries like Singapore and Hong Kong, so there is a lot of potential," said Bryma Ma, senior manager, IDC, a market research firm.

The year 2006 was a high growth year for Vertu. "The first four months of the year (2006) we have tripled our revenues, and we are on the track to at least double the size of the company, maybe even triple...


Exhibit I: The Vertu Signature
Exhibit II: The Components of a Vertu Phone
Exhibit III: The Vertu Logo
Exhibit IV: The Mobiado Professional
Exhibit V: Vertu's Distribution Network (as of Mid-2006)*
Exhibit VI: The Vertu Constellation


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