VIRGIN ATLANTIC

Marketing Plan: Virgin Atlantic

Abstract

Virgin Airline is one of the global multinationals that is increasing its market and mind share rapidly. Virgin Atlantic serves 30 destinations worldwide and has established a loyalty program, Flying Club, which allows for significant reductions on flights or the supply of its partners (hotel reservation and car). Today, 75% of flights operated by Virgin from London Heathrow and new destinations expected to be operational (Rio de Janeiro, Seattle, Vancouver, Bangkok, Melbourne, Perth, Australia, Honolulu, Hawaii). This paper aims to explore and critically discuss the marketing plan strategies adapted by Virgin Airline that enabled it to successfully achieve a sustainable position in the market. Virgin Airways low cost leadership has enabled it to achieve a competitive edge over competition; nevertheless it is recommended that Virgin Atlantic should extend its target market as currently it focuses on the youth through its kinky and naughty brand image. It is suggested that Virgin Atlantic should also tap the untapped markets by extending their brand essence in order to cater the mature segment of market.

Table of Contents

Abstract1

Introduction3

Strategic Objectives5

Competitor Analysis6

Primary Competitor6

Secondary Competitors6

Marketing Mix Strategies7

Product Mix7

Price Mix7

Place Mix8

Promotion Mix8

SWOT Analysis9

Strengths9

Weaknesses10

Opportunities10

Threats10

Target Market Segmentation Strategy11

Communication Strategy12

Corporate Strategy13

International Expansion Strategies of the Organisation14

PEST Analysis16

Political and Legal Factors16

Economic Factors16

Social Factors17

Technological Factors18

Porter Five Forces Analysis19

Buyer Power19

Supplier Power19

New Entrants19

Substitutes20

Competitive Rivalry20

Conclusion20

Recommendations21

References24

Appendix26

Marketing Plan: Virgin Atlantic

Introduction

The man behind the creating of the world renowned London-based Virgin Group is Richard Branson. He is the chairman of the group and has parlayed an enduring respect for wisdom of conventional business into the world's most recognisable and powerful brand and international conglomerate worth of £ 1.8 billion. Under the brand name of Virgin, Branson has invested into a wide array of businesses from financial services to wedding gowns; amongst which airlines are also included. The market giants have been rested off from their market share through these businesses. A record mail order business was delivered in London by Virgin group in 1970.Soon after that the company started a recording studio which later became the leading British studio.

The company started its expansion in 1980s and established Virgin Atlantic airways, Virgin Vision, Virgin Holidays and Virgin Cargo. The company floated in the London Stock Exchange, in 1986. Although, Virgin Atlantic Airways remained Virgin Voyager Group's privately owned part. Branson believed that ruling a public company is infringing his entrepreneurial style; therefore, he bought all the outstanding shares back. Virgin Music was sold to Thorn EMI in 1992, which allowed Branson to invest more money in the airline business (Virgin Atlantic). This paper aims to examine the Virgin Atlantic Airlines in detail, with emphasis on the marketing strength and the role of employees in building the brand's image (Virgin Atlantic, 2012).

Virgin Atlantic Airways quickly established itself and started expansion in its operations to a number of locations including Boston, Orlando, Los Angeles, Miami and Tokyo in the late 1980s. A major hurdle which the airline faced initially was that it was not allowed to fly out the largest British airport ...