Virgin Airline: Low Cost Flights - Case Study Example

Individual Reflective Essay Introduction Assessment of trading environment of any business entity is a very critical point when setting the objectives of the company. The various means used in assessment of a company or institution work to ensure that decision makers possess the required information to help them make the required decisions (Page, 2003). The company operates in a very competitive market. Top on the list of competitors are Tiger and Qantas. These two competitors enjoy the largest market share based on the fact that they have been in the industry for a very long time. Another factor behind their competitiveness is the strong asset and resource base. This market is also defined by external factors like the global economic crisis. For a business to succeed there is a need to analyse the various components of the marketing plan in order to understand the suitable strategy to be adopted. Regardless of the fierceness of the environment of trade as presented through the market analysis, businesses that are ready to strategically position themselves in the market will always succeed. Objectives for 12 Months Market situation presented in the analysis provide the basis over which the objectives of the company are laid. The current situation provides the required information that will assist marketers design approaches of dealing with the challenges inherent in the market. These objectives will guide the company on how to overcome the challenges inherent in the environment. They are meant to gear up the company towards achieving while in the current environment. The following are some of the objectives of the company for 12 months: To eliminate operational inconveniences for long distance travels through modification of processes To increase the international flights by 10% of the current flights To put a cost ceiling in order to deal with the uprising fuel prices To seek short term financing in order to deal with expansion needs To explore all possible means of reducing carbon emissions To increase the market share up to 10% To put in place employee on-job training programs Target Market and Market Positioning The two highlighted aspects are the top most critical aspects to any marketer. The importance of these aspects is felt across all players in the industry. Both the new and existing businesses must fully understand and implement the market positioning strategy (Gremler, Bitner & Zeithami, 2012). This is the ultimate selling point for companies and other businesses. The companies must carry out a comprehensive analysis into the market to be able to come up with the best strategies that will work in the targeted market. In this regard, a study has already been conducted concerning the environment from which this company operates. It is a bit easier to select the market segment that the company is better placed to capitalize upon through meeting its needs. This is in line with the strategies and resources that the company has lined up for the sake of the market. When the appropriate market has been identified, it is easier to focus on specific strategies that are aimed at exploiting the opportunities in that market. The company will be looking at the opportunities to exploit and the challenges to overcome in order to meet the set goals and objectives. Market Segments From the information that has already been gathered about the environment from which this company operates, it is very easy to identify key segments. One of the segments is the students who study in international opportunities. They are one of the reasons the company has put in place expansionary plans into the international airlines. These students are targeted mostly when they close their schools and colleges. Therefore, they are occasional customers. Nevertheless, they always come in large numbers. Virgin airline wants to establish itself as the airline of choice for these students. Another feature of this particular segment is that their income is limited. Therefore, the budget constraint upon their spending does not allow them to travel in classy categories. Theirs is only convenience. As long as convenience is guaranteed, they will always feel attracted to a specific service provider. Due to this, they prefer low cost flights. For this, we will configure our travel operation on the international flights in order to effectively accommodate this category of consumers. This will involve limiting all kinds of luxurious costs in their class. This is a basic cost minimization strategy. This is what will pave way for pricing their flights lower than other passengers. In this regard, our market positioning will be unique to every target segment. For instance, to the international students we will position ourselves as the cost effective airline. Overall Market Positioning Having analysed the entire market, there is a way in which this business can position itself in the market that will help it revolutionize its productivity. The specific concerns when it comes to the overall positioning are the competitiveness in the industry. The main area of focus when analysing the market positioning is to assess the strengths and weaknesses. From the analysis carried out about the competitors in the industry, the best market positioning strategy is on quality of products and services. This is the best strategy under the prevailing conditions for this company. The company ought to establish itself as a brand that focuses more on quality as opposed to many other facets. This is achievable through product and service delivery re-engineering. The new service and product provision should be a reflection of the company that is very focused on the quality of products it offers (Hopkins, 1996). This is very significant. For this kind of strategy, it may take quite some time for the consumers to identify a particular quality to a certain brand. There is absolutely nothing wrong with that. In spite of the length of time it takes for customers to identify a particular brand with a certain quality, when the ultimate time comes the business will reap benefits that will overflow into the future. This is because such qualities that businesses seem to identify with are usually psychologically absorbed by consumers. Therefore, regardless of the cost that it may take to achieve this, the company must be willing to go this far because it is worthwhile. Marketing Mix This is a tool that is used to achieve the marketing objectives of the company (Cialdini, 2006). Marketing mix combines several attributes of both the products and the channels of delivery of the products. The suitability of the marketing mix greatly relies on the product being sold. In this scenario, the focus is upon services being offered by the airline. Therefore, the marketing mix in this case is the one that will exploit the greatest potential in the services. The main emphasis is upon the 4Ps of marketing. Price: this is the most manipulated aspect of the product almost in all industries. One consideration that must be made in line with the decision to adjust price in order to affect demand in a particular direction is the price elasticity (Gremler, Bitner & Zeithami, 2012). This is the measure of how responsive the demand of the product is with respect to change in price. They are only elastic goods whose price is to be adjusted to stimulate demand. This strategy is usually successful at all levels of business growth. The company must consider this tool as the prime marketing strategy. Product: we have already laid emphasis on the need for this company to position itself on the platform of quality. Service differentiation will be the top most axioms to be used for ensuring the quality of services offered are upbeat. This is meant to be a continuous process in the life of the service. Place: when focusing on the main product of this company, the target is the services offered. In relation to this service, the role of place in the marketing process becomes quite minimal. In such a case, there are no distribution channels since products are sold directly to the customer. Promotion: this is a very reliable communication tool. Marketers are always keen on the strategies to use in order to ensure the market is fully exploited. This will take any form for these airline products. One of the suitable promotional aspects suitable to this airline is the loyalty programs. Customers who are frequent in using the company’s airline must be rewarded through the loyalty programs. Link between Marketing Plan Activities To a larger extend, it is easier to realize that the various marketing plan activities are interconnected. Activities rely on others in order to meet the expected goals. For instance, the marketing positioning is directly linked to the market segments. The characteristics of the market segment dictate the kind of approach to be used in that market. Another illustration is in relation to how the short term objectives determine the marketing mix to be adopted. There are many other examples that illustrate how connected all activities of this marketing plan in achieving common goals. Conclusion This marketing plan is a blueprint of what the company intends to achieve and how it ultimately achieves those goals. Through this marketing plan, one is able to see through the company both in short term perspective as well as long term perspectives. This marketing plan will guide the company on best ways to harness the potential that has been identified in the market. The success of this marketing plan is closely tied to the support from the top management. References Cialdini, R.B. (2006). Influence: The Psychology of Persuasion. New York, NY: Harper Business. Gremler, D, Bitner, M & Zeithami (2012). Services Marketing. New York: McGraw-Hill. Hopkins, C.C. (1996). My Life in Advertising and Scientific Research. New York: McGraw- Hill. Kennedy, S.D. (2011). The Ultimate Sales Letter: Attract New Customers, Boost your sales. Avon, MA: Adams Media. Page, R.(2003). Hope is Not a Strategy: The 6 Keys to Winning the Complex Sale. New York: McGraw-Hill. Steel, J. (1998).Truth, Lies and Advertising: The Art of Account Planning. New York: Wiley. Read More