Marketing Strategies of Virgin Australia - Case Study Example

Individual Reflective Essay Name: Tutor: Course: Date: Marketing Plan According to Gibbs (1988) application of structured debriefing reinforced the findings of Kolb’s reflecting learning cycle (Gibbs, 1988). I have always acknowledged marketing plan as essential tools for marketers since they provide direction for a brand, product or an organization. It was a learning point to develop a marketing plan for international airlines, Virgin Australia. I learned to describe and analyze its marketing environment, marketing objectives and marketing strategies. Through the report I gained a lot of knowledge and theories of marketing management and planning based on the analysis of international airlines of Virgin Australia in detail. I came across clear definitions of product lines, target markets, market share, and market size of the airline in consistent growth to achieve the result of market analysis. In the initial studies I went in-depth dissect the international airlines of Virgin Australia by applying marketing mix strategy. I was able to identify and compare the two principal competitors by defining their impact of macro environment on international airlines. Notwithstanding was the use of SWOT analysis to evaluate its business environment. I have never had an opportunity to learn of how air transport operates or makes its profits. Through the report and SWOT analysis, I learned that Virgin Australia was earlier known as Virgin Blue Holdings Limited, established in Brisbane, Queensland in 2000. I got to know the owner as Richard Branson and the CEO as John Borghetti of Virgin Group. My experience with their strategic goals was remarkable since they have established elaborate ways to grab more market share of business travelers. I learned of their new service standards and dress code. I feel that their choice of routes was fantastic especially their plans for the long haul international airlines. So far, Virgin Australia’s domestic airlines covered 22 greatest cities in Australia and it operated eight international airlines. I believe the company has the focus and determination to rival other giants like Qantas and Tiger. In situational analysis, nothing comes greater than knowing behaviors of competitors, and the market situation of any international airline. I felt that products indeed have significance to companies and the description of intangible products, which producers provide directly to customers, was likened to performance of Airline companies. I realized that airline service to people is the expectation to travel to other places and the satisfaction they get from travelling to those areas. I thought of Virgin Australia as a considerable company with multiple international routes service with different classes. I noticed that satisfying different customers’ need requires class considerations in domestic airlines and short hauls international airlines. I felt that Virgin Australian operations on long-hauls international airlines and creation of more classes helped in its diversification. I realized that premium economy class makes more pleasant experience for all customers, such as the seat pith in premium economy class is wider than economy class. I came across the data published by Virgin Australia airline which pointed to the requirements on seat pith for premium economy class and economy class. To my knowledge, Virgin Australia is quickly expanding business class and premium economy class in long hauls international airlines and I felt this was a rapid growth. I liked the way different long hauls international airlines introduced humanized services by adding new items to the original product line. I preferred using the example of a business class where seats are perfectly put to horizontal and the length of theses seats. I saw this as a benefit for customers flying with long-hauls at night. My good experience was with the use of rechargers provided in the business class, for customers to use in charging the battery for their laptops and mobile phones. I also liked the feature service of business class and premium economy class seats having 12.1 inches and 10.6 inches touch screen PTV with audio video appended. In, every seat has the touch screen PTV. I learned that unlike business class, the seats of premium economy class cannot be totally put flat, but customers still can adjust the headrests and footrests according to everyone needs of comfort level. I concurred with the observations of Hanson, Hitt, Ireland and Hoskisson (2011) which requires that companies by means of raising more brands or services extends their product line. I felt that Virgin Australia should continually increase and improve its service items, so that its product line becomes in the future. I have seen managers implement market analysis by identifying the product’s target market, market share, market size and its growth. I no doubt hold the same principle through the same way market analysis of the international flights of Virgin Australia is done. I observed that international flights of Virgin Australia regard business travelers and international students as their target market. I realized most business travelers first consider the safety and comfort rather than the price, so the airline launched the business class which with the high quality service to attract business travelers. I also noticed that students pricing is the main factor they consider since students are willing to choose cheaper airline. I expected to see companies have a market share has an expectation of the products’ market share. I also anticipated the market share to reflect whether a company set the accurate target market for its products. I was amazed to learn that Virgin Australia operates eight international routes with 11 aircrafts and in Australia’s famous airport departure lounge, it set up VIP waiting room, such as the Sydney airport. I anticipated its corporate team to order and replace a group of old aircraft to attract more business travelers become the company’s goal. I learned a lot regarding the four Ps (product, price, promotion and price) and their roles in the market. I likened their interdependence to a large number of issues of the international airline in Virgin Australia. I felt that the airline was engaging the right gears in creating a “seamless end to end experience” to customers no matter in the air or on the ground. I learned of their struggle to provide better services to passengers since Virgin Australia made a lot of improvements in each channel. I agreed with their plan to have more indigenous employees included in the team to make the international airlines’ competitive advantage obtain an obvious improvement. I felt that everyone desired to communicate with others by using their mother tongue in anytime and anywhere, especially for those who could only speak their own language. I learned of the desire by Virgin Australia to provide high quality service, low prices and memorable promotions to attract the massive consumer groups. To my knowledge knowing oneself and one’s enemy can ensure victory. Therefore, the competitor analysis becomes more valuable. In here, I focused on analysis of the international airlines of Virgin Australia’s two main competitors: Qantas and Tiger. I learned that Qantas flights cover Oceania, extender to Southeast Asia, East Asia and India, Britain, Germany, the United States, Canada, South Africa and other places. In addition, I realized in the past ten years that Qantas’s international airline has been occupying the first share of the Australia market. On the other hand I noticed that Tiger airways are under the Singapore's management and are the largest capacity and low cost airline, founded in 2003. I agreed that though Tiger is a cheap airline, corresponding to the plane of the service, it is not exceedingly well. I liked Virgin Australia for their free drink and meals unlike tiger which provides free newspapers. I also learned that the global financial crisis that broke out in 2008 and it made many organizations to suffer a serious defeat, with some of them closing down. I felt for Virgin Australia which got into trouble as their consolidated income declined at a historical low (-160 million) and the company income only had 8.9 million. I pitied them for the adverse change of the global economy. I realized they were not alone many multinational organizations went bankrupt, and this also indirectly led to reduced frequency of business travel. At the same time, many ordinary people also cancelled the original travel plans. I also noted that the volcanic eruption in Chile in 2011, made the flights of Australia and New Zealand to be badly affected. I knew that they would seek partners survive and expand the business of airlines. From geographical dimension, I saw Australia as an independent continent convenient for people who have enough vacation time, to take cruise become a popular alternative, especially for people who have never been aboard a cruise. I learned of their comfortable, leisurely and the entertaining facilities. I agreed with Virgin Australia decision to slash its low-cost carrier’s market share, to provide high price and quality of service, in order to attract high income customers, thus successfully gained market share and increase profits. I now prefer using SWOT analysis where services, products, marketers, and competitors are evaluated to determine their strengths, weakness, opportunities and threats. I affirm that the international airline of Virgin Australia has a lot of benefits that others do not have such as low price and high quality service in the air or on the ground. I concurred with their ability to cushion from market risk like rising fuel prices, low profits and the pollution of carbon emissions. I learned that given this situation, all airline companies try to improve fuel efficiency in order to reduce the consumption of fuel. I concluded that Virgin Australia marketers must be more careful on capacity growth, in addition, they must understand promoting the development of the aviation market are different from causing long-term damage to the airline industry. I felt that the CEO of Virgin Australia airline should consider profit as prime measurement criteria alongside customer services, brand image and marketing, and the influence of these three for profit (annual report). References Boud, D., Keogh R & Walker D. (1985) Reflection, Turning Experience into Learning, Routledge Campling, J., Poole, D., Wiesner, R., Ang, E. S., Chan, B., Tan, W. L., & Schermerhorn, (2008) Management (3rd ed.). Milton: John Wiley; Chen, J. S., (2012). The evolution of Virgin Australia from a low-cost carrier to a full-service airline-Implications for the Tourism Industry, Emerald Group Publishing Limited, pp.215-231; Fitzgerald, M., & Ayson, S. (2012) Managing under uncertainty: a qualitative approach to decision making, Sydney Pearson Australia: The SOS Print & Media group; Gibbs, G. (1988) Learning by doing: A guide to teaching and learning methods, Oxford Centre for Staff and Learning Development, Oxford Polytechnic. 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