Marketing Principles - Virgin Atlantic Airways - Case Study Example

Running Header: Marketing Principles Virgin Atlantic Airways Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Task 1 Elements of the Marketing Process The marketing process that a firm adopts lays emphasis on the design of the product, policies, valuing, advertising among others. These are the major initiatives that a company should embark on while undertaking the marketing process. Moreover, there are some vital elements that an enterprise, such as Virgin Atlantic should adopt so as to succeed in its marketing process. They are the ones that serve as the strength to marketing. One of the major areas that a firm should embark on while marketing is to undertake market research. In this case, an enterprise is supposed to determine the needs of the market, and the appropriate position to adopt in order to emerge successful in the area of marketing. Secondly, a firm needs to determine its standing in the market to determine its weaknesses and strengths. In this case, the company can be able to formulate strategies and factors that can allow it to cope with rivals in the market1. Marketing Orientation Drawbacks and Benefits After an enterprise identifies the appropriate opportunity that can allow it to address the needs of its clients, it can manage to pursue a particular prospect for it to operate efficiently in the market. In the case of Virgin Atlantic, marketing orientation plays an essential role with respect to allowing the company to portray responsiveness, which allows it to stay ahead of its competitors. This plays an essential role with respect to allowing Virgin Atlantic to stay ahead of competition. The issue of marketing orientation is also associated with particular costs. In this case, Virgin Atlantic would experience significant costs with respect to addressing the needs of its clients in an intelligent manner. These costs are mostly associated with huge investment in infrastructure, which can allow it to modify its processes and products on a constant basis. Also, the issue of external influences would significantly impact on the marketing orientation of Virgin Atlantic.2 Task 2 Macro and Micro Environmental for Virgin Atlantic Virgin Atlantic is in possession of various aircrafts such as 787 and A380, which offer it an opportunity to undertake upgrades to its aircrafts. Moreover, it has the opportunity to boost the number of airports that it serves. Most people are aware of the company based on its logo, since it is associated with various companies that allow it to gain deep trust among its clients, and hence attract more. With respect to the issue of entrepreneurship, Virgin Atlantic is one of major innovation-driven companies. Since the company is linked to Virgin Galactic, it has the potential to make or break itself. For instance, a large number of companies are geared towards the program that is associated with the Galactic initiative, and hence making it challenging for Virgin Atlantic to lay significant emphasis on Atlantic division. In this case, the company finds it possible to adopt the Galactic Involvement, and thus allowing it to raise its revenue significantly. With the rise in revenue, the company is in a position to purchase new planes, boost the relationships that it has with prevailing airlines.3 Virgin Atlantic Segmentation Virgin Atlantic mostly lays emphasis on those clients whose financial standing is above average. As a result, the prices that the airline charges are high compared to the average in the industry to allow it offer services that are of high quality. Virgin Atlantic emphasizes on delivering high quality services to its clients, and it does this by targeting a variety of client segments. It emphasizes on a broad range of client segments to allow it boost its profitability as well as cope with the competitive pressure in the market. By embarking on customer segmentation, Virgin Atlantic is capable of undertaking an analysis of its broad range of clients to allow it understand various behavioural descriptions of the various client segments. The segmentation strategy that Virgin Atlantic adopts is aimed at boosting the level of communication that is has with its clients, especially in those circumstances that are regarded as being unusual. With this segmentation strategy, Virgin Atlantic is able to communicate effectively with its broad range of clients, especially during those times when conditions of the weather lead to cancellations of various flights. Virgin Atlantic Targeting Strategy Since Virgin Atlantic is one of the biggest airlines in the United Kingdom, it has set in place various plans that can allow it to attain a larger share of the market. The target strategy for this company is to emphasize on providing its clients with premium services. The company mostly focuses on those clients who travel for business purposes. To realize this, the company is looking for ways that can allow it to widen its routes, especially those that comprise of business travellers. In order to raise the number of clients who travel for business purposes, the company has introduced various services such as spa services, roof allotment as well as Jacuzzi. With the provision of these services, the company hopes to boost its profitability and enhance its operative margins. Moreover, by enhancing its leisure operations, Virgin Atlantic will manage to boost the number of sales that it makes, especially as a result of serving a large number destinations4. Impact of Buyer Behaviour on Marketing Activities Marketing initiatives play an essential role with respect to influencing the perception of clients regarding the products that the company offers. Most clients tend to purchase those products and services that have been marketed in an innovative manner. With respect to innovative ways in which a product is marketed, a firm should ensure that the strategies that it adopts are innovative and creative, since they are the ones that clients can remember easily5. In the case of Virgin Atlantic, its marketing strategies are geared towards excellent service to customers, innovative advertisement strategies, as well as affordable fares. Based on its target market, Virgin Atlantic has raised the budget that it allocates to advertising approximately twice. In order to attract the attention of its clients, Virgin Airlines embarks on massive TV campaigns in various parts across the globe to allow it realize a significant number of passengers, and boost its reputation among its consumers.6 Virgin Atlantic Positioning It is appropriate for an enterprise to devise a positioning strategy that can allow it to operate effectively in the market. By positioning a particular brand in the marketplace, it is easy for an enterprise to influence the decision of clients. The brand varieties that a company implements plays an essential role with respect to allowing an enterprise to differentiate it from other rivals in the market. For instance, since the founding of Virgin Atlantic, the company has managed to position in the market where it has emerged as a worldwide brand that has been able to acquire a significant share of the market7. The trend that the company has laid emphasis on are those that are associated with bringing down the costs of operation. Since the issue of saving costs made the company to witness losses, the company decided to adopt a different strategy that would allow it to cope with the unpredictable market situations. It embarked on offering first-class services, such as allowing its clients to experience fun and comfort. It did this to make it possible for its clients to enjoy themselves while travelling. Task 3 Virgin Atlantic Competitive Advantage The airline industry is highly competitive, and companies that are found in this market are required to adopt a set of strategies that can allow them to offer the clients with something that revolutionary and unique. Today, most consumers are only capable of absorbing limited information that is attributed to the services and products that companies offer. In the case of Virgin Atlantic, it aims at making improvements to its operations, and hence allow it to deliver its message to clients in an effective manner8. To begin with, the brand of Virgin Atlantic that targets the upper class business travellers has allowed its clients to be loyal to it. It emphasizes on delivering quality services to its clients as opposed to considering prices. It lays emphasis in making its clients to realize the value of the money that they spend while traveling or based on the services that are provided to them. Though its tickets are quite expensive, the quality of products and services that it offers to its clients cannot be compared to other airline firms. It adopts strategies that can allow its customers to witness a memorable flight experience. It also offers its clients with various travel classes such as economy, premium economy and upper class, which make it possible for the company to address the diverse needs of its broad range of clients. Virgin Atlantic Distribution Strategy The travel industry is changing at a rapid pace. As a result, travel companies should develop distribution relationships, which can allow them to attain a larger number of clients. To facilitate in the distribution practices that Virgin Atlantic adopts, it has linked with Travelport Inc., which is the largest provider of distribution among airline industries. This relationship has allowed Virgin Atlantic to be able to witness new areas where it can distribute its services. Virgin Atlantic has managed to gain access to those routes that have a large number of clients, and hence playing a crucial role with respect to boosting its overall profitability in the market9. It is appropriate for an enterprise to demonstrate that it is capable of handling the needs of its clients in an effective manner. This is one of the major strategies that Virgin Atlantic emphasizes on to allow it cope with the growing needs of the market. Though there are various challenges that prevail in the case of distributing travel routes in an effective manner, it is appropriate for airline companies such as Virgin Atlantic to join efforts with companies that facilitate in the distribution of routes so as to cope with the various challenges that travel companies are witnessing in today’s competitive airline market.10 Virgin Atlantic Pricing Strategies Virgin Atlantic has adopted a set of pricing strategies that allow it to address the diverse needs of its clients in an effective manner. The different forms of travel services that the company offers comprise of economy, premium economy and upper class. In the case of the economy service, a client is able to experience a journey that is easy at a price that is exceptional. You can be bale to check-in online to Virgin Atlantic as well as choose the seat that you prefer. With respect to the issue of checking in, you can be given primacy boarding to Virgin Atlantic by choosing the premium economy option. In this case, you are given your own personal space, and you can also turn the seat that you are on to a small office. The dining is also given an inspirational approach to help you enjoy your meals sufficiently. The upper class mode of travel is luxurious, and the clients pay fare that is appropriate for business-class people11. Virgin Atlantic Promotional Activity Promotion of products and services plays a vital role with respect to allowing a business to realize increased sales, and boost its competitiveness in the market. With appropriate product promotion tactics, an enterprise finds it possible to encourage its customers to use its products and services, and hence excel in the market. One of the major areas that Virgin Atlantic lays emphasis on is promoting its products to allow it remain as one of the major leaders in the airline industry. For instance, the company lays significant emphasis in terms of advertising its products and services through various forms such as posters, television, mail, newspapers and promotions, in order to encourage its clients to use its products appropriately. For instance, the advertisements that have been directed towards Upper Class service has allowed the company raise its clients by approximately 30 percent. It also embarks or promotion mechanisms that allow it to target those people who travel for leisure purposes, and hence boosting the overall competitiveness of the compaany.12 Extended Marketing Mix The various marketing initiatives that Virgin Atlantic adopts to allow it offer support to the strategies that it implements in the market comprise of communication channels, products, price, services as well as internal marketing. This mix plays a vital role with respect to allowing the company to realizing success on its integration services. The variety of services that Virgin Atlantic offers its clients varies based on whether the needs of the customer are local or international. It makes sure that the clients witness satisfaction based on all the services that it offers. Based on pricing, the company offers distinct services based on the fees that the client is charged, and which will address their needs effectively. Moreover, the company adopts a sophisticated communication platform that allows it to plan effectively for the needs of its clients both locally and abroad. Task 4 Virgin Atlantic Marketing Mix Plan In the event of an airline company such as Virgin Atlantic, it is supposed to develop a strategy that can allow it to monitor its fight services. In order to encourage the adoption of the services that Virgin Atlantic offers, it should emphasize on areas such as booking over the internet, offer modes of shopping that are free of duty, provide options for parking, and create parking facilities for the clients. Price is another issue that Virgin Atlantic needs to lay emphasis on. The company has been portrayed as adopting a competitive mode of pricing that is appealing for those travellers who embark on business travels. In this case, the company is supposed to distribute its tickets in terms of insurance, fare for buses, service fee for the passengers, tax for aviation travel. Moreover, in the event of seasons, the company is supposed to implement different modes of pricing so as to cater for the needs of the clients in an appropriate manner. Based on promotion initiatives, the most common forms of advertisements in Britain include magazines, the press, TVs, as well as posters. In this case, Virgin Atlantic s supposed to embark on such modes of advertising by incorporating its typical logo in order to make the public aware of the appealing services and products that are available for different classes of clients13. Differences in Marketing Services and Products to Consumers and Businesses There are various differences that prevail between marketing products and services to businesses and consumers. People adopt different strategies while marketing for their individual needs and while marketing for companies. For instance, when marketing to a business, one tend to apply less emotions, and instead adopts more tasks. Moreover, while marketing to a business, you tend to adopt lengthy as well as multifaceted strategies as opposed to when you are marketing to a consumer14. Additionally, while marketing to a business, a marketer is supposed to adopt a mode of business marketing that is shorter and emphasizes on channels of distribution that are direct in nature in order to address the needs of the target audience appropriately. However, the only similarity that prevails in the case of marketing to consumers and businesses is that the two concepts employ the ideologies that are affiliated with the marketing mix. Differences between International and Domestic Marketing Undertaking marketing initiatives locally and abroad are entirely different concepts. While marketing to international clients, you are supposed to employ new skills that target the country that you want to engage in business with. This is because the regulations that prevail in different countries are not similar15. With regard to Virgin Atlantic, which in an international airline, it should it should realize that the local market in the UK cannot be compared to the different needs that clients in the global market adopt. In this case, it is appropriate for the company to adopt different marketing strategies depending on the country that it undertakes its operations. This is essential in terms of allowing the company to meet the diverse needs that are associated with different needs of clients based on their culture and purchase decisions that they adopt in their country. Bibliography John, D. 'Developments in airline marketing practice' Journal of Marketing Practice', Applied Marketing Science, Vol. 5, issue 1, 2005, pp. 134-150. Patrick, B. & Mehan, S. 'The one thing you must get right when building a brand', Harvard Business Review, Vol. 88, issue 12, pp. 80-90. Read More