Case study Virgin - Superbrands UK 09/10

1. SUPERBRANDS 2009/10
superbrands.uk.com VIRGIN
Virgin is known for applying its brand values across many sectors, making it arguably one of
the most diverse brands in the world. Throughout its 40-year history, it has continued to stand
out from its rivals through an unwavering focus on quality, outstanding customer service and Lounge from the likes of Business Traveller, focused heavily on building its social media
industry innovation. That three of its brands – Virgin Atlantic, Virgin Media and Virgin Mobile – SkyTrax and Travel Weekly, to name but a few. presence through social networking sites
It has also been commended for leading the such as Facebook and Twitter. The airline is
have attained Superbrand status in 2009 is testament to its ongoing success. way in environmental air travel and was the now one of the most positively perceived and
world’s first airline to successfully fly biofuel talked-about brands in social media, according
at 30,000ft. to the independent Kaizo Advocacy Index.
Market
Since it was established by Richard Branson Formed by the merger of ntl:Telewest, Since its launch, Virgin Media has continually
in 1970, the Virgin Group has gone on to virgin.net and Virgin Mobile, Virgin Media looked for ways to improve its service. In 2008
encompass sectors ranging from mobile faced a substantial task to turn around customers on 4Mb broadband were upgraded
telephony and music to travel, financial customer perception. Since its relaunch, up to 10Mb, and in spring 2009 customers on
services, leisure, publishing and retail. brand awareness has more than tripled and 2Mb followed. Further recent developments
There are more than 200 Virgin-branded perceived brand warmth doubled. In 2008 include a range of value-added services to
companies worldwide. Virgin Media climbed from 140th place to enable customers to get the most out of their
number six in the Joshua G-2/Marketing broadband, such as free file sharing, backup,
In recent years, the Group has implemented Brands We Love survey. storage and photo prints. For example, Virgin Media made its first
a successful global expansion programme foray into the world of in-game advertising
with launches of Virgin Mobile in India and Putting the customer at the heart of the Promotion through the appearance of outdoor posters
Virgin Radio in France, Canada and Dubai as business is critical to Virgin Media’s success. Virgin Atlantic has recently revamped its in online games. It also sponsored the web
well as a low-cost, high-quality airline in the More than 500,000 individual customer advertising approach, concentrating on drama ‘Sam King’, which integrated key
US, Virgin America. comments and Net Promoter® scores have different aspects of each of its cabins and messages about its Mobile Broadband
been collected, mobilising the company highlighting the product benefits of each, from product and V Festival sponsorship into
By focusing its businesses around the needs around the issues that customers themselves the no-extra-cost frills in Economy to the wider the plotline.
of the customer and staying true to its values, in Economy and a fully flat bed in Upper Class. package – and therefore offering better value. say are most important. Virgin Media’s 14,000 legroom in Premium Economy and the fully flat
Virgin remains one of the UK’s most admired Unlike many rivals, it continues to offer frills It is also the only major provider to offer staff have been central to the company’s bed in Upper Class. Its promotional strategy Brand Values
brands (Source: HPI Research 2007 and 2005). such as Oscar-winning films, drinks and a choice services through a state-of-the-art fibre optic transformation; a leadership team was has been clearly designed to differentiate Virgin Virgin has an appealing youthful personality
of three meals at no extra cost. Its new Upper cable network. Using technology tailor-made for developed to take the business to the next from other airlines that may fly the same planes and since its inception has endeavoured to
Product Class Wing at Heathrow’s Terminal high speed internet, it delivers a revolutionary level and implement a ‘change’ programme, from the same airports but don’t offer the same adhere to its brand values: Fun, Value for
The Group’s flagship airline, Virgin 3 has been dubbed the world’s television service to accommodate shifting focusing on Virgin values and behaviours. standard of service. Money, Quality, Innovation, Competitive
Atlantic, serves the long-haul flight fastest check-in by Wallpaper* trends in viewing habits. Challenge and Brilliant Customer Service.
market and despite having just three per cent magazine and along with its multi-award-winning Recent Developments As a brand, Virgin has successfully used These brand values focus on putting Virgin
of take-off and landing slots at Heathrow, Heathrow Clubhouse, demonstrates how Virgin Mobile phone services are key to Virgin In celebration of its 25th birthday, Virgin traditional promotional media such as customers’ needs first, constantly challenging
carries around six million people annually on its Atlantic continues to strive for exacting Media’s strategy to develop fully integrated Atlantic introduced its ‘Still Red Hot’ campaign. television, radio and cinema as part of its the status quo by putting innovation at
38 aircraft. In comparison, its main competitor standards within the airline industry. entertainment and communications services. Recreating the airline’s launch in June 1984, ongoing strategy and over the last year, in line the heart of its philosophy and always
(British Airways) holds a 41 per cent share of Improved Pay As You Go and Pay Monthly the TV advert incorporated classic 1980s with its digital diversification, has also used encouraging staff to think the impossible,
take-off and landing slots and carries 40 million Virgin Media – incorporating Virgin Mobile – tariffs, internet services on mobiles, and imagery and themes. Virgin Atlantic has also online advertising effectively. with resulting benefits for its customers.
across its total network. Virgin Atlantic launched in 2007 and now employs more than mobile broadband to complement home
operates three cabin classes on board 14,000 staff, bringing broadband, television, broadband are all designed to offer better virgin.com
its flights: Upper Class, Premium phone and mobile services to almost value for customers.
Economy and Economy. 10 million people nationwide.
Achievements Things you didn’t know
Throughout its history, Virgin Atlantic Through Virgin Media, the Group has Virgin Atlantic has won an array of awards about Virgin
has focused on quality and service become the first to provide for all of its for its service and product innovation,
and strives to offer industry innovation. customers’ digital needs by offering television, including Best Business Class, Best Premium
It was the first to introduce seatback televisions broadband, phone and mobile services in one Economy, Best Economy and Best Airline Virgin Atlantic’s aircraft are all female
and have carried more than 65 million
1984 1992 1999 2003 2006 2007 2008 2009 passengers since the airline launched
in 1984.
Virgin Atlantic is Virgin Atlantic introduces Richard Branson sells The new Upper Class Virgin Atlantic adds Also in 2006, Casino ntl:Telewest merges Also in 2007, Virgin Virgin Media launches Virgin Media upgrades
established. The the revolutionary Premium a 49 per cent stake of Suite is launched, Montego Bay and Dubai Royale sees Virgin with Virgin Mobile and Atlantic places an order its 50Mb broadband 4.2 million customers
Virgin Media’s V+ HD box lets viewers
inaugural flight takes Economy class, which Virgin Atlantic to complete with the to its list of destinations Atlantic replace virgin.net, relaunching for 23 fuel-efficient Boeing and is ranked the sixth from 2Mb to 10Mb
pause, rewind and record live TV.
place on 22nd June, goes on to be replicated Singapore Airlines. longest fully flat bed and an industry-leading British Airways as as Virgin Media. An 787 Dreamliners – the Most Loved Brand in and Virgin Atlantic
Unlike those supplied by other service
from London to by several other airlines. in any business class. environmental strategy James Bond’s airline internal brand and largest order in Europe a survey carried out celebrates its 25th
providers, it allows two programmes to
Newark. is unveiled. of choice. culture programme – and its new Terminal 3 by Joshua-G2 and birthday.
is rolled out. facility opens at Heathrow. Marketing magazine.
be recorded while a third is watched.