Virgin Atlantic: Background, Goals, SWOT, Marketing Mix, And Events Strategy

Background and history of Virgin Atlantic

Summarise Virgin Atlantic’s background and history, turnover, management structure, current corporate goals and targets, and markets. Your summary should use material from the Virgin Atlantic website, and other relevant online sources (approx. 250 words).  

Develop a SWOT analysis to identify Virgin Atlantic’s current situation in relation to its main competitors. You should identify a minimum of three strengths, weaknesses, opportunities and threats. Your model should be developed referencing core marketing texts with content developed from articles and web sites

Describe the marketing mix and its role in marketing, referencing two relevant theories and concepts. 

Explain how Virgin Atlantic use the different elements of the marketing mix to promote their brand. You should apply at least one other theoretical model learnt during your lectures. Your explanation should be illustrated with specific examples of Virgin Atlantic’s events, promotional activities and target audiences

Create a diagram explaining how special events are defined and classified. Your diagram should draw upon relevant core texts .

Classify at least four Virgin Atlantic events using the model you have provided.

Explain the impact of Virgin Atlantic’s marketing and events strategy.

Virgin Atlantic was found in the year 1984 and has become the second largest airways carrier throughout Britain. It has won several trades and consumer awards and received huge popularity.  The company carried about nearly 53 passengers at its starting time but now the company has more than 9000 employees from different parts of the world.  The company adopted a distinctive approach to the marketing of the complete business (Virgin Atlantic Airways Ltd., 2016).  The company serves nearly 30 destinations throughout the world.  The history of the company reveals that it was developed as the Offshoot of the virgin group of Richard Branson’s which was mainly famous for pop and the rock music.  The aim of the firm was clear to fulfill the needs of the clients with the superior services by valuing for money and for all class of the travelers (Virgin Atlantic Airways Ltd., 2016). The routes of the firm were divided into 10 routes for the US, 6 for Asia Pacific, 4 African routes, 1 for the Indian Ocean, 1 for the Middle East and 8 routes for the destinations of Caribbean. Virgin Atlantic is mainly owned by the virgin group by nearly 51% of the shares and 49% of the shares belongs to the Singapore airlines.

Goals of the organization are as follows:

• To develop strategic strategies for establishing good relationship with the customer
• To market their respective product in well-defined manner as per the requirement
• To enhance the effectiveness of the clients by putting emphasis on value for money, innovation, and fun

Goals of Virgin Atlantic

The SWOT analysis will help in understands the preferred strengths and the weakness of the firm in order to formulate effective strategies for the effectual growth of the organization.

Strengths

• Being the stronger promoter as compared with other companies like British airways and British Midland
• Carriers more than 5 million of the travelers within a year
• Second largest British Airlines having more than 35 destinations
• Excellency in advertisements as well as innovative branding

The firm is one of the strongest promoters for the services offered by it to respective clients.  Moreover, it has been considered to be the second largest carriers for the travelers all through the British market segments (Armstrong, 2014). Therefore, it has become critical for the firm to establish its global presence all across different countries of the world.

Weaknesses

• Tough competition from British airlines and Emirates and other airlines of Middle East
• Limited presence throughout the global market segments
• Lack of effective strategies to handle the customers

It is important to increase the communicational skills of the employees with that of their respective passengers as this will help in providing reliability during traveling (Entrekin and Scott-Ladd, 2013). These points are vital as compared with its competitors such as Jet Airways and British Airways.

Opportunities

• Increasing the global routes and destinations
• Enhancing its brand reputation throughout the different parts of the world
• Heathrow terminal is considered to be the major hub throughout the world and it had its vital presence here

Threats  

• Rise in the labor costs
• Hike in the rates of fuels and change in the aviation regulations
• Increase in the competition all through the European Market segments
• Some of its competitors are British Midland, Jet Airways, Emirates and British Airways

The uses of the effective marketing strategies are of great importance as they help to expand the business procedures of the firm in different market segments.  The detailed analysis has been provided below:

Product

Virgin Atlantics is engaged in providing flights across different countries. A large number of intangible services are offered to the passengers on board such as Excellency in customer support, provides kids menu and meal menu for different classes and entertainment on board (Entrekin and Scott-Ladd, 2013).  The classes are divided into three categories such as an economy, premium economy, and Upper class.  

Prices

The company has adopted differentiation in the pricing strategies as to compete with the other airlines such as British airlines and emirates.  The company also offers discount rates as to attract a large number of the customers (Fabozzi and Markowitz, 2011).  High and low seasonal prices are also being offered by the firm.

Places

It includes location and distribution strategies to increase the profitability of the organization (Fabozzi and Markowitz, 2011).   The operating bases of Virgin Atlantic are Heathrow Airport, Gatwick airport, and Manchester Airport.   The distribution strategies are to sell its products online through their respective website, through travel agents and tour operators.

Promotion

There are different kinds of the promotional strategies are adopted by Virgin Atlantics such as posters, website promotions, use of the social media such as YouTube, Facebook, through travel agents and direct emails to the customers (Härtel and Fujimoto, 2010).  

Physical evidence

This consists of the documents, brochures used for the effectual promotion of the firm.  It is used as to keep the record for the entire marketing process.

SWOT analysis

Processes

The firm uses different innovative techniques to retain its old clients as well as to attract the new customers with a different process (Hooley, Piercy, and Nicoulaud, 2012). Discounted offers are provided to the customers occasionally.

People

The employees and the management are responsible for marketing its products and increasing the effectiveness of the organization.

Targeting, segmentation, and positioning are three of most crucial elements which help to evaluate the imperative growth of the preferred firm.  There are different promotional methods adopted by various organizations such as by means of social media, newspapers, effective campaigning and many others. The brand reputation can be created with the help of excellent communication skills and the capability of redelivering high-value services to the customers by the respective employees of the firm. The use of the effectual marketing mix strategies expands the barriers of the firm within the large competitive market segments all through the different parts of the world (Stroke: latest treatment options in acute management, 2015).  Delivering the best quality of the services will help in establishing the brand reputation in front of the targeted customers (the marketing mix: a review, 2014).  It is crucial to identify the target markets for the execution of the business and then the requirements of the client’s needs to be understood as this will improve the quality of the services delivered by the firm.  Marketing mix will help in improving the delivering the high-value customer support and will promote the brand with the help of effectual campaigns and social media channels.  Use of the different events will also promote the brand in front of the customers.

Figure: Diagram explaining the arrangements of events

The figure critically explains that different events are arranged following the sequence. Firstly, there is a need to create the user event, and then it needs to be planned effectively following the desired requirements of the events.  Then the events are sent to the concerned distributors, and then the target widget is decided by the event distributors (Varma and Budhwar, 2013).  The entire processing of the event resides within the hands of the target widget which verifies the entire requirements of the concerned event. The event is processed and action is created by the target widget. Then finally the target widget sends the required actions to the respective listeners.

Four Virgin Atlantic events

The four Virgin Atlantic events are the celebration of the silver anniversary of Virgin Atlantics, the charity golf event, sponsorship events and celebration of the annual party.   First of all, there is a need to identify the cause for the celebration, then according to the celebration of the respective events the planning needs to be done (Wierenga, 2008). The charity golf events are mainly to raise funds for the different types of the charity foundations in order support the needy people. First of all the event is created and then it is sent to the event distributor and then the target widget critically confirms the entire matter and finals the occurring of the event.  The silver anniversary was celebrated in order to motivate the employees and to celebrate the growth and expansion of the airlines on a large scale.

Marketing mix and its role

The marketing strategies of Virgin Atlantic provided the desired elevation in the business process and brought positive outcomes for the organization.  The marketing strategy is mainly to assist the clients with the best quality of services which in turn brings out the potential income for the Airline. There are seven of the crucial elements for the service industries, which are considered within the marketing mix, they are products, prices, places, promotions, physical evidence, people and the processes (Wierenga, 2008). The other arrangement of the events strategy has been up to the mark in celebrating the events successfully and CSR has been one of the most important features for the company as it helps to work for the welfare and the development of the organization. These CSR and marketing strategies have also helped in evaluating the brand reputation of Virgin Atlantics in front of the passengers.

Conclusion

Management plays the most critical role in increasing the effectiveness and efficiency of the organization within the market segments.  Virgin Atlantic was originated in 1984 and has become the second largest airways carrier throughout Britain. The company has received several consumer awards by providing best quality of the services to the customers. The papers reflect its desired strengths, opportunities, threats and weaknesses. The company has created its brand reputation by working as per the satisfaction of the passenger’s and moreover it serves to more than 35 to 40 destinations throughout different countries of the world. There is a tough competition from the different competitors so in order to expand the business, adoption of effective strategies is crucial. A large number of intangible services are offered to the passengers on board such as Excellency in customer support etc. The use of the effective marketing mix critically enhances the overall performance of the organization within the competitive market segments.

References

Armstrong, M. (2014). Armstrong’s Handbook of Human Resource Management Practice. London: Kogan Page.

Entrekin, L. and Scott-Ladd, B. (2013). Human Resource Management and Change. Hoboken: Taylor and Francis.

Fabozzi, F., and Markowitz, H. (2011). The theory and practice of investment management. Hoboken, N.J.: John Wiley & Sons.

Fabozzi, F., and Markowitz, H. (2011). The theory and practice of investment management. Hoboken, N.J.: John Wiley & Sons.

Härtel, C., and Fujimoto, Y. (2010). Human resource management. Frenchs Forest, N.S.W.: Pearson Australia.

Hooley, G., Piercy, N. and Nicoulaud, B. (2012). Marketing strategy & competitive positioning. Harlow, England: Pearson Financial Times/Prentice Hall.

Hooley, G., Piercy, N. and Nicoulaud, B. (2012). Marketing strategy & competitive positioning. Harlow, England: Pearson Financial Times/Prentice Hall.

Stroke: latest treatment options in acute management. (2015). The Pharmaceutical Journal.

THE MARKETING MIX: A REVIEW. (2014). ELK Asia Pacific Journal of Marketing and Retail Management.

Varma, A. and Budhwar, P. (2013). Managing human resources in Asia-Pacific. Hoboken: Routledge, Taylor, and Francis Group.

Virgin Atlantic Airways Ltd., V. (2016). Book flights & Check in online | Virgin Atlantic. [online] Virgin-atlantic.com. Available at: https://www.virgin-atlantic.com/gb/en.html [Accessed 23 Jul. 2016].

Wierenga, B. (2008). Handbook of marketing decision models. New York: Springer.