Virgin Atlantic airline is a strong brand basically because of its corporate image, as a member of virgin group, its reputations for corporate service and reputation for innovations. The company was established in 1984 by the known British entrepreneur Richard Branson. The quality, value for money airline company was took only three months to established.
Virgin was some of the companies in the industry who introduced some first’s offering, such as: first entertainment system, the first airline to offer the complementary limousine pick. up, and the first airline who offer the first in-flight beauty treatment and business economy cabin.
The company is a leading branded venture capital organization and one of the worlds recognized and respected brand in an airline industry..
Virgin Atlantic Airways entertains the different status, gender and age. Most of the travelers are business traveler and leisure travelers.
They allow children ages 5-and above to travel. Below 5 years old, the kid should have guardian ages 16 up or parents. For the unaccompanied child/children, they must follow a certain rule. The Virgin Atlantic also accepts trained pets who accompanied disabled person e.g. Blinds person. Also some of their passengers are packed with friends, families and high yield business travelers.
Virgin Atlantic Airways gives importance to technology. Technology could also upgrade the expectations of passengers. Virgin Atlantic Airways knows how dangerous to fly the airplane without further checking of its technology. There are aircrafts engineers that have been researching to improve security airlines. They also implement high technologies to entertain the passengers while waiting for arrival. They don't want the passengers feel bored during the flight.
Innovations were implemented in order for the passengers to relax and to feel comfortable. There were video entertainment, Sony watchman's on board, individual video screens for every seat, virgin’s onboard entertainment offered 20 audio channel, 16 video channel. Those innovations was created to cater the needs and wants of the customers as well as to understand the passengers needs and go beyond their expectations. They accepts any status of passengers.
POLITICAL-LEGAL In January 1991, the UK opened Heathrow Airport to Virgin when it abolished the London Air Traffic Distribution Rules in response to pressure from the industry. The London Air Traffic Distribution Rules had come into effect in 1978, originally created to achieve a fairer distribution of traffic between Heathrow and Gatwick, the UK's two main international airports, to help Gatwick make a profit. The former rules stated airlines without an international scheduled service from Heathrow prior to 1 April 1977 would not be permitted operations there, instead they would have to use Gatwick. Before the abolition, airlines that did not already operate at Heathrow could commence domestic scheduled services there provided BAA, which ran both Heathrow and Gatwick on behalf of the Government, and the Secretary of State for Transport, granted permission.
The economic issues in the industry are also mostly concerned with deregulation. The evolution of industry structure plays an important role in determining the robustness and stability of lower air fares in unregulated markets. Deregulation keeps airline fares so low as compared to that of other countries. The reason for this is because despite the failure of most entrants since deregulation, investors continue to create new airlines.
Some industry participants have argued that financially distressed carriers have cut prices in an effort to raise short-term cash, depressig market prices below efficient levels and threatening the financial security of health carriers.
Market implications: lowered their airline tickets; discounts for senior citizens; discounts for group travelers
Virgin Atlantic Airways have quality staff despite of low income. Virgin Atlantic’s employees should have the sense of responsibility in entertaining the passenger’s needs and wants. Branson wanted that their customers also feel the belongingness in the industry. The crew should also have the sense of fun. Sense of fun that while the crew have to work hard, they should have fun and should be satisfied with what they do and what to offer for the passengers.
Virgin Atlantic is committed to reducing our environmental impacts where we can by becoming a more efficient business, leading the industry to practical and technical solutions and engaging, inspiring and empowering our staff and customers to help us meet this challenge.
Together with Virgin Atlantic's biofuel demo and push for more efficient aircraft this is the sort of initiative the airline industry needs at a time when emissions from this sector are growing at nearly 4% a year.”
The dedicated emphasis on customer service and innovation
It is headquartered in a country where airline competition is tolerated and enhance because of the deregulation policy.
The increasing number of travelers in the UK is also an opportunity for Virgin Atlantic.
There might have a push on the market with its latest Heathrow clubhouse.
Lacks transparency unlike other
companies UK and around the world.
Virgin Atlantic reach only limited countries unlike other global airlines.
The company has limited destination.
The emerging consumer mindset thus it is dangerous to ride airlines because they are suspectable to terrorist attacts.
Emergences of new airlines, as there are newly formed ones using Virgin concepts .
INDUSTRY SUPPLIERS Buyers COMPETITORS SUBSTITUTE Firms Analysis
The airline industry is saturated. In a country, it can have more than five airlines, which also compete againts each other. Since travel services are derived demand, new etrants should be able to cut a share in the pie in the presently saturated market. Virgin Atlantic Airways, a company with a good background in the industry and they are also backed up by Singapore Airlines.
BACK Firms Analysis
The main supplier for airlines is obviously its aircraft manufacturer. In Virgin Atlantic case, the main aircraft manufacturers are Boeing and Airbus. Fuel companies are also one of the key suppliers for airlines, since fuel is the basic necessity for aircraft in order to operate. the airport itself supplies the services needed by aircrafts. IT companies such as IBM and NCR can be classified as suppliers as they supply IT solutions.
BACK Firms Analysis
Virgin Atlantic Airways is known for the quality service render to their paasengers. The Virgin Atlantic Airways offers the chepest airfare so that the passengers can afford.
Passengers were used to purchase their tickets directly from the airlines company. At that time, bargaining power of customers was very low, but now every airlines spreads its distribution channel everywhere even overseas to keep up with the competition. This enables the airlines to cover the market, but on the other hand it also grant bargaining power to the buyers.
BACK Firms Analysis
For every product or service a company offers, there is always a potential of a substitute for it. Virgin Atlantic Airways operates completely in air transportation. Air transportation is utilised by people who need to travel faster and time efficiency is crucial for them. If time is not a main consideration, people might choose to travel by sea or land and this saves them a lot of money. The main subtitutes for airline industry are trains, buses and ships.
BACK Firms Analysis
The competitions is very stiff at this point, because of the reduced of the goverment role and protective rules that lead to the increasing competition among airlines. Competitors in the industry have same capability in terms of interactivity of their web page. The core competence of the Virgin Atlantic Airways is their high technologies, cheap ticket and good schedules.
BACK Firms Analysis
How will Virgin Atlantic airways segment and position their firm in the market in order for them to surpass their competitors and become a market leader.
Virgin Atlantic Airways founded by Richard Branson. Richard branson believes knowing the needs and wants of the customers are the best core competence to them. By this way, the company can target all the market. The Virgin Atlantic believes that they need to accomodate all potential customers for as long as they can afford the ticket. For example, they accepts children, unaccompanied children, male and female, employed or unemployed, and their different purpose of travels. The Virgin Atlantic dont practice the marketing segmentation
How the Virgin Atlantic maintain their good reputation and their services?
The Virgin Atlantic Airways is known for its high technology, offers a best fares and schedules, comfortable seats than other airlines their entertainment system is the best among the others. Passengers expect what they saw in the websites and also in the magazines. Passengers expects a good employees as well. But there are more unsatisfied passengers who commented in the internet about the Virgin Atlantic. The virgin atlantic airways offers a best fares and schedules, the seats are much more comfortable than the most airlines, their entertainment system is better than anyone else.
But unfortunately, the seats are tiny with absolutely no leg room in the premium economy class. The seats recliner botton broke. Passengers coment about their services and staff. Some of these are: lousy services, uninformed and uncaring employees, arrogant staffs, unprofessional, incredibly rude ground staffs, over-booked flight, inattentive attendants, they take no responsibilties for their mistakes. And they call their passengers faul names.
Virgin Atlantic Airways cannot serve all customers in a broad market. The company needs to identify their target market so that they can serve and do their job effective and efficient. Virgin Atlantic can apply the mass-market strategy. The mass-market strategy call on a firm to develop one product the is marketed to all potential consumer this approach considers the market segment with similar wants and needs of the customers.
The Virgin Atlantic Airways are known for their state-of-the-art facilities and their low price but there are still unhappy passengers because of some failures of their facilities which is not operating well. The main goal of the company is to give “ Upper Class service in a low cost”.
The management must check their equipments and facilities before and after the flight. So that the management can fix it ahead of time and also to avoid customers complaints. If the entertainment games is not available and must be fix for a longer time, they must informed the passengers about the problem and instead of on flight games, they can have an interactive games like bring me game, guessing game, playing cards and more to entertain the passengers and to avoid them to feel bored.
Since in gaining good reputation and obtaining a good service, Virgin Atlantic should conduct a disciplinary actions for their employees because they are the one who delivered the service to the passengers . The management should give a wishlist through the attendants upon entering the plane or upon sitting on their sits. Attendants should distribute this wishlist just like during christmas. The passenger can write what they want during the flight and after the flight. They can wish to buy presents for them instead of them who will go to the duty free. By this wishlist, the management and the attendants would know the likes and dislikes of the passengers and to avoid complaints. And they can also offer the Upper Class service to their passengers.
Gaining the trust of customers is not easy. Therefore we recommend alternative B because by this way the company would know the needs and wants of their passengers. They would also a big help for them because the staff would know what to do and what should not do. And they can give it much better than expected.
Implementation and Control
What Who When How
Globalize the Virgin Brand Name Further
Marketing Director 2-3 years if possible By expanding on some countries and operate in other countries 2. Develop innovative ideas of services Marketing Director 1-3 years By identifying the needs and wants of the customers then, produce 3. Ensuring the companies safety, reputation and success Mr. Richard Branson and the rest of the staff Anytime By keeping their eyes peeled for oppotunities and threats of the company. 4. Conduct a market research Research Department 6 months-3 years Distribute check-list for every passengers. To know the passengers wants and likes.