International Marketing for Travel and Tourism - Essay Example

Introduction Virgin Atlantic is one of the leading airlines in the world and has been in existence for the last 26years under the British long Haul category. People recognize it as the best in the economy as it creates a journey that is enjoyable and memorable. The airlines friendly and highest quality service, excellent value products at value prices make the airline more famous and one that people would look forward to travel with again. The airline provides their services to 33 of the most interesting destinations in the world. It operates from London’s Heathrow, Gatwick airports, and Manchester. Virgin Atlantic was developed from Richard Branson’s Virgin group that was best known for pop and rock music. Its first flight to Newark took place in 1984, a flight filled with celebrities, friends, and the media. The airlines main goal was to provide services of high quality at value price for all classes of air travelers. Moreover, the routes the airlines travels to include flights to Asia Pacific, African routes, Indian routes, the middle East and Caribbean destinations. The three classes of travel that Virgin Atlantic provides are the upper class, premium economy, and economy. The three classes of travel have award winning in-flight entertainment. The main flight of discussion is from Heathrow to Hong Kong. The geographical market of the airline is divided into four categories by the transportation department. They include the international that operates without many limitations destinations that has more than one billion American dollars (Flottau, 2010). . The national that allows for about 100 – 150 people and brings in revenue of about one billion. There are also the regional flights that operate only for short distances and bring in revenue of more than $ 50 Million and lastly the Cargo airline that only deals with the transportation of goods (Balmforth, 2009). The airline has segmented its customers to the economy and the business class those travelling on economy are doing so for leisure and fun while the business class, they normally are going for business or company deals. In addition, the airline uses targeting as a competitive strategy by targeting the upper class customers who travel for the purpose of business (Engel & Fiorillo, 2009). This allows the company to provide their best services to these target market thus becoming successful in the market. In addition, virgin Atlantic has positioned itself as the direct competitor to British Airways and is striving to compete with the airline on all aspects and routes into and out of London. This is the reason why they are continuously innovating products and providing quality goods and services to win its customers. Moreover, virgin Atlantic is installing internet capabilities that are high tech to be able to meet the customer’s needs and become competitive in the market. Virgin Atlantic uses a variety of marketing techniques including advertisements in the magazines, taxi sides’ press, and direct mail to current and potential customers as well as use of posters. In addition, Virgin Atlantic runs a variety of promotions, organizes trips and social events, as well as advertises through travel agents. The company also offers flying club membership to promote customer loyalty. The in members are allowed to get free miles exchangeable free freights and other rewards. The company also has a website that plays an important role in ensuring that their customers get efficient service. It offers full electronic booking, informs members of the mileage balance, provides information on destinations, and provides different promotional schemes. Virgin Atlantic has an inbound logistics department that specifically deals with receiving and managing of raw materials from suppliers within the firm. They include controlling stocks of fuel foods, drinks, and snacks. It also provides the customers with a service system and facilities planning where it gives choice of the meals to be eaten. The facilities increase with the level of class. The firm also has a support system that include the firm structure that deal with corporate strategy, accounting and finance. There is also the Human Resource department that deals with recruiting people through newspaper advertisements and its website. The employees receive excellent training that develops them from time to time. This is through educational events that make them adjust to the changing market environment to meet customer needs. Virgin Atlantic also employs people with sigh language skills to cater for the disabled passengers. This exceptional service helped the airline gain good reputation as well as an award. The use of technology is another support system that virgin Atlantic uses to provide services to their customers. The use of the internet to book online, the provision of flight information and handling of customer complaints are some of the uses of the internet that the airline is dealing with. Today, the use of technology is important as most airlines use the internet to promote their services and well as get more customers. Most people use the internet to get information and through the website, massive people can be able to know what products the airline offers and at what prices. Virgin Atlantic not only considers technology as necessary but also spends a lot on it for the airline knows the advantages of using it. Virgin Atlantic believes in the provision of quality goods and services, it has therefore invested in an efficient procurement department that obtains these goods at competitive prices. The department buys goods in large quantities thus achieving economies of scale. They also out source for companies that offer handling services like baggage handling and cleaning services at the airport thus reducing costs. As Virgin airlines operate across the globe, it complies with the national and international laws that govern a country. The society has accepted the airline because of the quality of services they offer and this is the reason why it is gaining popularity and more people prefer travelling with the airline. Virgin airlines compete with most of the industry’s major national carriers and they include the British Airline, and the American airline. To handle competition, the airline collaborated with Singapore airlines to be able to gain market access in areas that proved to have tight market restrictions, restructuring, obtain knowledge and extend supply of goods. Additionally, the company beats its competitors by providing best customer service, innovation and the brand name. The airlines believes in creativity and this is why its keeps on coming up with new ideas that are unique to solve the passengers problems as well as beat competition. It was the first to launch an entertainment system and onboard bars to increase social activities in the flights. It also provides complimentary limousine services and beauty treatment services. Likewise, the airline expects the crewmembers to provide exceptional service and this is the reason the management measures their deliverable performance from time to time. Based on the good record of the airline there are opportunities for it to grow in new cities. These include those lines that have bankruptcy experience can be god targets. In addition, the European Union is proving to be supportive. The airline also has a great scope to grow in the African market by focusing on increasing the market share of the African market. They should also aggressively promote the clubhouse facilities to their customers. Due to the many tourists visiting the UK, the airline should use strategic advertising and marketing tools to deal with competition (Brethauer, 2002). To reduce costs in sales promotion, the airline should communicate through Public Relation that is a cost effective tool than advertising to integrate a consistence image of the organization. The use of employees to spread informative communication provides effective media for communication. The two-way communication provides instant feedback that is useful to the organization. The airline is able to use the received information to garner knowledge on how to improve. In addition, the use of the press to communicate about the innovation of new products or services is important as it helps reduce costs. The sponsorship of TV programs provides a new opportunity for brand awareness where the airline image is maintained. In addition, the use of radio where through debates and interviews the information about the organization can be spread and thus reducing cost on sales promotions. In addition, the airline should use its brand name by organizing for an event and inviting the target customers. Since people like to identify with people and good image, the airline can use this strategy especially in areas where the product has not penetrated the market. These kind of news help create news and excitement thus promoting an organizations products and image. The critical issues that might affect the overall strategy include the fuel costs that are expensive and continue to rise day by day. Due to the rise of price fuels globally, the aviation fuel have increased drastically therefore having a big impact on the airlines margins. In addition, the terrorist attacks scare passengers from flying. This is because of the insecurities in most countries. On the occurrence of a terrorist attack, both current and potential customers fear flying. Virgin Atlantic has two main segments they include the Upper class and the Economy class. It also developed a marketing mix where they have factored in the in-flight services as well as the ground services, while keeping in mind the tangible products and the services. On the ground, the airline ensures that there is efficient transportation of goods to and from the airport. They also ensure that the online bookings and check in services operate smoothly. In terms of the in-flight services, the airline ensures that the customers feel at home. Therefore, the organization invests in staff training to allow customers feel appreciated. This encourages customer loyalty and satisfaction. In addition, the airline uses competitive prices for both the business and the economy class. The airline also uses seasonal pricing where tickets become expensive when purchased when the demand is high. Moreover, the use of promotions to create awareness of the products using TV, magazines, posters that have the airlines logo have been some of the strategies that the airline uses. The airline uses postal service to get to the target customer and informing them on any new advancements and improvements. In addition, the airline markets in the travel agents who are distributors of their seats. The airline does risk assessment from time to time to determine what kind of promotional strategy to use. For example during the low season, the airline uses tactical promotions and price advertising to attract customers. This is important as it helps in cost reduction, as the company does not have to advertise unnecessarily. Due to the airlines marketing strategies, it has been able to receive many international rewards. The airline has won both business and customer awards worldwide in most categories that the travel industries offer. For example, when the airline introduced the exceptional service of employing people who are skilled with sign language the Virgin Atlantic was able to win the EASE award for four consecutive years. The airline has also been given awards for the in-flight entertainment system and for designing beds and seats that give extra comfort. In conclusion, it is evident that marketing is the key strength of Virgin Atlantic airline. Richard Branson suggests that the airline will be able to reach a wider market and expand across the world. They will continue to provide the best services to their customers and ensure that the goods and services are of higher quality at competitive prices. In addition, the use of the right marketing strategies and promotional activities will be the core business of the airline. This is to ensure the airline is seen and available in the market and making it the top of mind airline for most consumers. The use of qualified employees is also important as they help in the growth of the business. Lastly, the intense training that the airline provides to the employees is vital. Most successful airlines have used this technique to ensure that both the workers and the management are on the same page in ensuring that the goals and objectives of the organizations as well as the customer needs are met as well. References Balmforth, J. 2009. Virgin Atlantic. Hersham: Midland. Brethauer, D. 2002. New product development and delivery ensuring successful products through integrated process management. New York: AMACOM. Top of Form Engel, J., & Fiorillo, H. 2009. Market segmentation; concepts and applications. New York: Holt, Rinehart and Winston. Top of Form Flottau, J. 2010. Change of fortunes: Virgin Atlantic faces multiple challenges to its survival as an independent airline. Top of Form Frank, R., & Massy, W. 2003. Market segmentation. Englewood Cliffs, N.J.: Prentice-Hall. 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