Virgin America aims to provide low-cost, high-quality air travel targeted at young, tech-savvy professionals ("the creative class"). It offers amenities like in-flight WiFi and entertainment systems on flights between major coastal cities. Virgin America prices its tickets competitively while also offering different classes to price discriminate. It distributes tickets mainly through its website but also partners with online travel agencies and occasionally discount sites. As an independent airline not in a major alliance, Virgin America faces challenges competing on costs and revenues.
Vistara is a joint venture between Tata Sons and Singapore Airlines that began operations in 2015. It operates Airbus A320 aircraft on 311 weekly scheduled domestic routes between 12 destinations within India. The document discusses Vistara's business model, costs, funding, and provides a breakdown of estimated per seat fuel and operating costs for a flight from Delhi to Mumbai on an Airbus A320.
The document provides a history and overview of Emirates airline from its founding in 1985 to present day operations. It discusses the airline's founding, key events and expansions over the decades. It outlines Emirates' current fleet size, destinations served, and goals for the future. The document also reviews Emirates' mission, vision, strategies, products and services offered across various classes. It provides financial reports on revenue, passengers and market share from 2008-2015. Finally, it performs outside analyses including PESTEL, Porter's Five Forces and McKinsey 7S framework to evaluate the external and internal environment.
The document discusses the challenges facing the US airline industry, including rising costs, excess capacity, and increased competition from low-cost carriers. It notes that the industry's financial problems predate 9/11 and that major restructuring will be needed for the legacy carriers to adapt to current market conditions and regain profitability. Code-sharing agreements between carriers are seen as one way to cut costs through increased cooperation.
This document outlines a media plan for a JetBlue campaign called "Blue Break" aimed at increasing vacation travel sales by 5%. The primary target audience is "Youthful Explorers", professional women ages 25-34. The $6.5 million budget will be spent on outdoor, digital, and spot cable advertising from December 2014 to July 2015 in 10 markets. The plan analyzes JetBlue's situation, objectives, target audience, competitors, and proposed media strategies and tactics to reach its goals.
Spirit Airlines: Strategic Management Case StudyMarissa Pié
Each degree candidate in the Saint Mary's College Department of Business Administration is responsible for successful completion of a senior comprehensive project. The project incorporates interdisciplinary application of business principles, including marketing, accounting and strategic management. A team of four conducts a case study and presents both a formal written report (attached) and a 10 minute "pitch" presentation to the entire department.
IndiGo Airlines is a low-cost carrier that operates 399 daily flights to 33 destinations in India and abroad. It uses a hub-and-spoke model and focuses on keeping costs low by not providing complimentary meals and concentrating operations on high traffic routes to limit investments. A key to IndiGo's success has been strategic aircraft deals, including a 2005 deal with Airbus for 100 planes at exceptional prices and with Airbus responsible for maintenance, as well as keeping planes airborne for 12 hours per day to maximize revenue through efficient turnaround times under 31 minutes.
Vistara is a joint venture between Tata Sons and Singapore Airlines that began operations in 2015. It operates Airbus A320 aircraft on 311 weekly scheduled domestic routes between 12 destinations within India. The document discusses Vistara's business model, costs, funding, and provides a breakdown of estimated per seat fuel and operating costs for a flight from Delhi to Mumbai on an Airbus A320.
The document provides a history and overview of Emirates airline from its founding in 1985 to present day operations. It discusses the airline's founding, key events and expansions over the decades. It outlines Emirates' current fleet size, destinations served, and goals for the future. The document also reviews Emirates' mission, vision, strategies, products and services offered across various classes. It provides financial reports on revenue, passengers and market share from 2008-2015. Finally, it performs outside analyses including PESTEL, Porter's Five Forces and McKinsey 7S framework to evaluate the external and internal environment.
The document discusses the challenges facing the US airline industry, including rising costs, excess capacity, and increased competition from low-cost carriers. It notes that the industry's financial problems predate 9/11 and that major restructuring will be needed for the legacy carriers to adapt to current market conditions and regain profitability. Code-sharing agreements between carriers are seen as one way to cut costs through increased cooperation.
This document outlines a media plan for a JetBlue campaign called "Blue Break" aimed at increasing vacation travel sales by 5%. The primary target audience is "Youthful Explorers", professional women ages 25-34. The $6.5 million budget will be spent on outdoor, digital, and spot cable advertising from December 2014 to July 2015 in 10 markets. The plan analyzes JetBlue's situation, objectives, target audience, competitors, and proposed media strategies and tactics to reach its goals.
Spirit Airlines: Strategic Management Case StudyMarissa Pié
Each degree candidate in the Saint Mary's College Department of Business Administration is responsible for successful completion of a senior comprehensive project. The project incorporates interdisciplinary application of business principles, including marketing, accounting and strategic management. A team of four conducts a case study and presents both a formal written report (attached) and a 10 minute "pitch" presentation to the entire department.
IndiGo Airlines is a low-cost carrier that operates 399 daily flights to 33 destinations in India and abroad. It uses a hub-and-spoke model and focuses on keeping costs low by not providing complimentary meals and concentrating operations on high traffic routes to limit investments. A key to IndiGo's success has been strategic aircraft deals, including a 2005 deal with Airbus for 100 planes at exceptional prices and with Airbus responsible for maintenance, as well as keeping planes airborne for 12 hours per day to maximize revenue through efficient turnaround times under 31 minutes.
Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people and products. The hundred-plus years following the invention of the first aircraft have brought about a revolution in the way people travel. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living.
This is a presentation on Indigo Airlines, a Marketing management project how they as a company evolved overcoming and competing other companies. This presentation views about their strategies and porter's five forces.
American Airlines Merger (Management In Action Case Study)Neil Mathew
The document provides an overview of the merger between American Airlines and US Airways that formed American Airlines Group. Some key points:
- The $11 billion merger in 2013 created the world's largest airline group operating over 6,700 daily flights worldwide.
- The merger was aimed to yield over $1.5 billion annually in added revenue and cost savings by combining the two airlines' networks and fleets.
- Regulators initially opposed the merger due to antitrust concerns but eventually approved it after American Airlines Group agreed to divest slots and gates at several major airports.
This case study analyzes the strategy and success of IndiGo, India's largest domestic airline by market share. Some key points:
1) IndiGo has grown rapidly since its founding in 2006 to become India's fastest growing and most profitable domestic airline, overtaking competitors through its low-cost business model.
2) IndiGo focuses on affordable fares, on-time performance, and hassle-free service to attract customers. This strategy has helped it gain a 21.9% domestic market share.
3) While facing challenges like high fuel costs and competition, IndiGo has opportunities to expand into new markets like freight and international routes. Its continued growth relies on maintaining its low
Southwest Airlines case analysis presentation (designing work organization - ...Aditya Kumar Varshney
Group A8 analyzed Southwest Airlines. Southwest's mission statement focuses on excellent customer service delivered with warmth, friendliness and company spirit for both external customers and internal employees. The mission statement is simple but does not align fully with business strategy or reflect a vision for growth. Southwest has experienced great success through its low-cost strategy of operating fuel-efficient Boeing 737 aircraft on point-to-point routes, keeping fares simple, and focusing on volume over frills. It also emphasizes a unique, fun-loving culture cultivated through employee profit-sharing and development. However, maintaining this culture as the company continues to grow poses a challenge.
Vistara is an Indian airline jointly owned by Tata Sons and Singapore Airlines. It commenced operations in 2015 with 5 Airbus A320 aircraft and currently operates 164 flights per week to destinations across India. Vistara offers premium economy seats in addition to regular economy and business class. The presentation discusses Vistara's target customer segments, marketing strategies, and service offerings which include on-time performance, premium in-flight services and well-trained staff. It also outlines Vistara's marketing mix, competition in the Indian aviation industry, and strategies to promote customer loyalty.
IndiGo is an Indian low-cost airline founded in 2006 that aims to provide affordable fares, on-time performance, and hassle-free service. It is owned by InterGlobe Enterprises and Caelum Investments and has a fleet of 93 aircraft serving 38 domestic and 5 international destinations. IndiGo has the largest market share in India at 39% and has been profitable consistently since 2011-2012. It uses effective advertising strategies across various media to promote its brand.
Vistara, a new airline joint venture between Tata Sons and Singapore Airlines, aims to launch scheduled domestic air transport services in India. The submission document provides details on Vistara's vision, mission, competitive analysis of the Indian aviation industry, proposed marketing strategy and brand, financial projections, fleet and route details, management structure, and timeline. Vistara plans to differentiate itself through high quality customer service while operating as a hybrid carrier between full service and low cost models. Key goals include revolutionizing India's corporate travel market and setting new standards of service excellence in domestic aviation.
Indigo has achieved success through strategic deals on aircraft purchases, an efficient hub and spoke model, and focusing operations on high traffic routes to reduce costs. In contrast, Kingfisher offered luxury services like lounges and in-flight entertainment, but faced challenges maintaining profitability. The document then provides statistics on Indigo's growth in market share and details on its operations strategy centered around on-time flights and high aircraft utilization to maximize revenues.
Emirates is an airline based in Dubai, United Arab Emirates that is wholly owned by the government of Dubai. It is the largest airline in the Middle East operating over 3,600 flights per week from its hub in Dubai to over 140 cities in 81 countries. Emirates has a fleet of Boeing and Airbus aircraft and offers amenities like onboard showers and WiFi. The airline promotes itself through various advertisements, sponsorships, magazines, and other marketing strategies as it seeks to maintain growth and market share despite increased competition from other airlines.
This document appears to be a student project report on a comparative study of two low-cost airlines: Air Asia and Norwegian Air Shuttle. It includes an introduction to the airline industry and low-cost carriers. The objective is to analyze and compare the two airlines' strategies, pricing, marketing, CSR and achievements. Secondary research methods are used, gathering data from the airlines' websites and other online sources. The report also provides profiles of each airline, covering their history, management, vision and goals. It then compares the airlines using SWOT analysis, STP analysis and other metrics.
The document summarizes the key differences between low cost carriers (LCCs) like Indigo Airlines and full service airlines (FSAs). It notes that LCCs operate point-to-point flights from secondary airports, use a single fleet type, offer single-class cabins with reduced seat pitch, restrict baggage and have minimal in-flight services. This allows LCCs to reduce costs related to airport charges, maintenance, training, turnaround times and distribution. The document then discusses how Indigo Airlines was able to become highly profitable despite the industry's losses by increasing fleet capacity and passenger traffic while others declined. Indigo maintains high customer ratings through consistent, quality service and strong operational and financial performance.
The document provides a SWOT analysis for the PIA Training Center in Rawalpindi, Pakistan. It identifies the center's strengths as its faculty, strategic location, equipment/aircraft, and literature/courses. Weaknesses include its building, image, organizational culture, and policies. Opportunities lie in upcoming domestic airlines, international airline operations in Pakistan, and offering specialized courses. Threats are competitors like COA-IST, economic conditions, changes to aviation authority regulations, and inflation. Strategic recommendations include utilizing resources efficiently, improving culture and policies, designing new courses, and achieving economies of scale before competitors.
Business Model Canvas of Discount Airline case study Southwest Airlines - Sho...Jukka Ala-Mutka, Dr Sc.
The document summarizes the business model of discount airlines using Southwest Airlines as a case study. It discusses how Southwest broke norms of the airline industry in the 1970s by adopting a low-cost business model focused on high aircraft utilization, point-to-point routes, and limited services to offer the lowest fares. Key aspects of Southwest's model included frequent, short flights between mid-sized cities using only Boeing 737 aircraft and a highly productive workforce committed to customer satisfaction. This allowed Southwest to achieve high growth and profitability for over 40 years by prioritizing efficiency and low prices.
Vistara Airlines is marketing its premium services to business travelers and high-end customers while keeping prices competitive. It aims to create brand awareness and increase its customer base through innovative advertising campaigns. Vistara offers various seating classes with inflight entertainment and catering options. Its marketing strategies focus on visibility through events and partnerships, highlighting its premium product offerings, and building strong customer relationships.
Southwest Airlines has consistently been profitable for 37 years through a low-cost business model. It focuses on short, frequent flights without hubs using only Boeing 737 aircraft. Southwest saves on fuel costs through hedging and efficient operations like fast turnarounds. It aims to pass these savings to customers through low fares while maintaining a fun, customer-focused culture. Though competitors try to copy its model, Southwest prides itself on excellent customer service.
Virgin America is a low-cost airline that targets tech-savvy "creative class" business travelers between ages of 25-45. It began in 2007 flying between West Coast cities like Seattle, Portland, and San Francisco and expanded to 13 cities by 2012 focusing on business hubs. Virgin America offers in-flight entertainment and productivity features to appeal to this demographic. It promotes through social media and multimedia campaigns like "Breath of Fresh Airline" to reach customers online and in transit areas. The marketing plan concludes Virgin America delivers low prices with amenities by expanding routes while maintaining its reputation from the Virgin brand.
Virgin America aimed to redefine elegance in air travel by targeting young, tech-savvy travelers with stylish services at discounted prices. It provided higher levels of comfort than other airlines through amenities like an in-flight entertainment system and mood lighting. Virgin America also focused on social media connectivity and loyalty programs. To promote its brand, the airline utilized various social media platforms, sales promotions, and multimedia advertising campaigns that highlighted its affordable yet luxurious customer experience.
Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people and products. The hundred-plus years following the invention of the first aircraft have brought about a revolution in the way people travel. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living.
This is a presentation on Indigo Airlines, a Marketing management project how they as a company evolved overcoming and competing other companies. This presentation views about their strategies and porter's five forces.
American Airlines Merger (Management In Action Case Study)Neil Mathew
The document provides an overview of the merger between American Airlines and US Airways that formed American Airlines Group. Some key points:
- The $11 billion merger in 2013 created the world's largest airline group operating over 6,700 daily flights worldwide.
- The merger was aimed to yield over $1.5 billion annually in added revenue and cost savings by combining the two airlines' networks and fleets.
- Regulators initially opposed the merger due to antitrust concerns but eventually approved it after American Airlines Group agreed to divest slots and gates at several major airports.
This case study analyzes the strategy and success of IndiGo, India's largest domestic airline by market share. Some key points:
1) IndiGo has grown rapidly since its founding in 2006 to become India's fastest growing and most profitable domestic airline, overtaking competitors through its low-cost business model.
2) IndiGo focuses on affordable fares, on-time performance, and hassle-free service to attract customers. This strategy has helped it gain a 21.9% domestic market share.
3) While facing challenges like high fuel costs and competition, IndiGo has opportunities to expand into new markets like freight and international routes. Its continued growth relies on maintaining its low
Southwest Airlines case analysis presentation (designing work organization - ...Aditya Kumar Varshney
Group A8 analyzed Southwest Airlines. Southwest's mission statement focuses on excellent customer service delivered with warmth, friendliness and company spirit for both external customers and internal employees. The mission statement is simple but does not align fully with business strategy or reflect a vision for growth. Southwest has experienced great success through its low-cost strategy of operating fuel-efficient Boeing 737 aircraft on point-to-point routes, keeping fares simple, and focusing on volume over frills. It also emphasizes a unique, fun-loving culture cultivated through employee profit-sharing and development. However, maintaining this culture as the company continues to grow poses a challenge.
Vistara is an Indian airline jointly owned by Tata Sons and Singapore Airlines. It commenced operations in 2015 with 5 Airbus A320 aircraft and currently operates 164 flights per week to destinations across India. Vistara offers premium economy seats in addition to regular economy and business class. The presentation discusses Vistara's target customer segments, marketing strategies, and service offerings which include on-time performance, premium in-flight services and well-trained staff. It also outlines Vistara's marketing mix, competition in the Indian aviation industry, and strategies to promote customer loyalty.
IndiGo is an Indian low-cost airline founded in 2006 that aims to provide affordable fares, on-time performance, and hassle-free service. It is owned by InterGlobe Enterprises and Caelum Investments and has a fleet of 93 aircraft serving 38 domestic and 5 international destinations. IndiGo has the largest market share in India at 39% and has been profitable consistently since 2011-2012. It uses effective advertising strategies across various media to promote its brand.
Vistara, a new airline joint venture between Tata Sons and Singapore Airlines, aims to launch scheduled domestic air transport services in India. The submission document provides details on Vistara's vision, mission, competitive analysis of the Indian aviation industry, proposed marketing strategy and brand, financial projections, fleet and route details, management structure, and timeline. Vistara plans to differentiate itself through high quality customer service while operating as a hybrid carrier between full service and low cost models. Key goals include revolutionizing India's corporate travel market and setting new standards of service excellence in domestic aviation.
Indigo has achieved success through strategic deals on aircraft purchases, an efficient hub and spoke model, and focusing operations on high traffic routes to reduce costs. In contrast, Kingfisher offered luxury services like lounges and in-flight entertainment, but faced challenges maintaining profitability. The document then provides statistics on Indigo's growth in market share and details on its operations strategy centered around on-time flights and high aircraft utilization to maximize revenues.
Emirates is an airline based in Dubai, United Arab Emirates that is wholly owned by the government of Dubai. It is the largest airline in the Middle East operating over 3,600 flights per week from its hub in Dubai to over 140 cities in 81 countries. Emirates has a fleet of Boeing and Airbus aircraft and offers amenities like onboard showers and WiFi. The airline promotes itself through various advertisements, sponsorships, magazines, and other marketing strategies as it seeks to maintain growth and market share despite increased competition from other airlines.
This document appears to be a student project report on a comparative study of two low-cost airlines: Air Asia and Norwegian Air Shuttle. It includes an introduction to the airline industry and low-cost carriers. The objective is to analyze and compare the two airlines' strategies, pricing, marketing, CSR and achievements. Secondary research methods are used, gathering data from the airlines' websites and other online sources. The report also provides profiles of each airline, covering their history, management, vision and goals. It then compares the airlines using SWOT analysis, STP analysis and other metrics.
The document summarizes the key differences between low cost carriers (LCCs) like Indigo Airlines and full service airlines (FSAs). It notes that LCCs operate point-to-point flights from secondary airports, use a single fleet type, offer single-class cabins with reduced seat pitch, restrict baggage and have minimal in-flight services. This allows LCCs to reduce costs related to airport charges, maintenance, training, turnaround times and distribution. The document then discusses how Indigo Airlines was able to become highly profitable despite the industry's losses by increasing fleet capacity and passenger traffic while others declined. Indigo maintains high customer ratings through consistent, quality service and strong operational and financial performance.
The document provides a SWOT analysis for the PIA Training Center in Rawalpindi, Pakistan. It identifies the center's strengths as its faculty, strategic location, equipment/aircraft, and literature/courses. Weaknesses include its building, image, organizational culture, and policies. Opportunities lie in upcoming domestic airlines, international airline operations in Pakistan, and offering specialized courses. Threats are competitors like COA-IST, economic conditions, changes to aviation authority regulations, and inflation. Strategic recommendations include utilizing resources efficiently, improving culture and policies, designing new courses, and achieving economies of scale before competitors.
Business Model Canvas of Discount Airline case study Southwest Airlines - Sho...Jukka Ala-Mutka, Dr Sc.
The document summarizes the business model of discount airlines using Southwest Airlines as a case study. It discusses how Southwest broke norms of the airline industry in the 1970s by adopting a low-cost business model focused on high aircraft utilization, point-to-point routes, and limited services to offer the lowest fares. Key aspects of Southwest's model included frequent, short flights between mid-sized cities using only Boeing 737 aircraft and a highly productive workforce committed to customer satisfaction. This allowed Southwest to achieve high growth and profitability for over 40 years by prioritizing efficiency and low prices.
Vistara Airlines is marketing its premium services to business travelers and high-end customers while keeping prices competitive. It aims to create brand awareness and increase its customer base through innovative advertising campaigns. Vistara offers various seating classes with inflight entertainment and catering options. Its marketing strategies focus on visibility through events and partnerships, highlighting its premium product offerings, and building strong customer relationships.
Southwest Airlines has consistently been profitable for 37 years through a low-cost business model. It focuses on short, frequent flights without hubs using only Boeing 737 aircraft. Southwest saves on fuel costs through hedging and efficient operations like fast turnarounds. It aims to pass these savings to customers through low fares while maintaining a fun, customer-focused culture. Though competitors try to copy its model, Southwest prides itself on excellent customer service.
Virgin America is a low-cost airline that targets tech-savvy "creative class" business travelers between ages of 25-45. It began in 2007 flying between West Coast cities like Seattle, Portland, and San Francisco and expanded to 13 cities by 2012 focusing on business hubs. Virgin America offers in-flight entertainment and productivity features to appeal to this demographic. It promotes through social media and multimedia campaigns like "Breath of Fresh Airline" to reach customers online and in transit areas. The marketing plan concludes Virgin America delivers low prices with amenities by expanding routes while maintaining its reputation from the Virgin brand.
Virgin America aimed to redefine elegance in air travel by targeting young, tech-savvy travelers with stylish services at discounted prices. It provided higher levels of comfort than other airlines through amenities like an in-flight entertainment system and mood lighting. Virgin America also focused on social media connectivity and loyalty programs. To promote its brand, the airline utilized various social media platforms, sales promotions, and multimedia advertising campaigns that highlighted its affordable yet luxurious customer experience.
This document provides a marketing analysis of Virgin Atlantic airline. It begins with an executive summary and table of contents. It then analyzes Virgin Atlantic's financial performance compared to competitors like British Airways and Cathay Pacific. It discusses Virgin's marketing activities such as branding, social media campaigns, and loyalty programs. It also analyzes the competitive airline market and recommends Virgin focus its expansion on the growing Asian market through partnerships. The document provides an in-depth analysis of Virgin Atlantic's position and strategies compared to other airlines.
This marketing plan outlines Alaska Airlines' history, operations, target markets, competitors, strengths, weaknesses, and objectives. Alaska Airlines aims to increase customer satisfaction to 95% and retain 75% of customers. Additional objectives include growing market share by 5% through a 10% increase in advertising and maintaining an on-time arrival rate of 90%. The plan discusses Alaska Airlines' product, pricing, placement, promotion and financial goals to improve profitability and market position.
Branson should apply the following criteria when deciding on new diversifications:
- It should add value to end users and communities in line with Virgin's brand of value, quality, fun and innovation.
- It should benefit from Virgin's resources like its strong brand, management expertise, and ability to innovate in constrained industries.
- The diversification should create opportunities for synergies across Virgin's existing operations through shared resources and capabilities.
1) A Chinese woman on a Virgin Atlantic flight reported that a male passenger called her a "f*****g Chinese pig" and that crew members ignored her complaints and told her to sit down or be expelled from the flight.
2) After she posted about her experience online, it went viral in China, garnering millions of views. Virgin Atlantic initially refused to apologize.
3) In response, a campaign was launched on social media platforms in China to boycott Virgin Atlantic, which expanded to gain coverage from over 50 foreign websites and 700 tweets. Virgin Atlantic began responding to the incident on social media and promised an investigation.
Virgin America was founded in 2004 by British entrepreneur Richard Branson with the goal of reinventing air travel by offering customers an unparalleled flight experience. The airline launched in 2007 and focuses on innovative amenities like inflight WiFi, touchscreen entertainment systems, and mood lighting. Through its emphasis on technology, design, and excellent customer service, Virgin America has won numerous industry awards. It utilizes an active social media strategy and loyalty program to engage customers and continues to pioneer new approaches to the airline industry.
This document provides an overview and analysis of Emirates Airlines' business strategies and marketing plan. Some key points:
- Emirates was established in 1985 in Dubai and has expanded significantly to over 80 aircraft flying to over 70 destinations globally.
- It faces competition from other UAE-based airlines like Air Arabia, Etihad, and RAK Airways. Emirates differentiates itself through advanced onboard services.
- Emirates' strategic focus includes its mission to offer high quality service, goals of market expansion, and leveraging Dubai's location and brand reputation.
- Its marketing plan targets UAE tourism/business travelers, expatriates in the UAE, and transit passengers,
This document provides an overview of the strategic development of Virgin Group from 2013. It discusses Virgin's origins under founder Richard Branson, its expansion into various industries globally, and its diversified but loosely structured organization. It also examines Virgin's branding as a "consumer champion" and Branson's leadership style. Challenges facing the group are outlined as well as strategies for its future corporate direction given concerns around Branson's eventual departure.
Define a Panam’s audience, values, and market perception. Complete exercises to come to a consensus on the visual direction of the company based on the defined understanding of their brand.
Iterative Insights is a customer experience methodology that involves multiple touchpoints with customers to gain insights. It includes stakeholder interviews, customer journey mapping, qualitative and quantitative research to understand customers. These insights are used to create customer personas and journey maps to share a holistic view of the customer experience. Prototypes are then designed, tested and refined through iterative customer feedback to improve the experience.
This document profiles potential buyers personas for several major airlines - ANA Airlines, Air France, and Japan Airlines. It provides basic details about each airline such as location, founding date, fleet size, and goals. It also describes potential user scenarios for how each airline may utilize new aircraft like the Boeing 787 to expand routes, increase efficiency, and better serve customers' needs. Decision makers in the airline industry are looking to purchase new planes to replace aging fleets, meet growing travel demand, lower costs and emissions, and gain competitive advantages.
Southwest Airlines - Airline with a heartRaghav Arora
Content:
1.Persona
2.Operations
3.Marketing Offers
4.Challenges Ahead
Disclaimer:
Created by Raghav Arora, NIT Jamshedpur during an internship under Prof. Sameer Mathur. IIM Lucknow.
Ricoh submitted a proposal to replace the City of San Diego's convenience copier fleet. Their primary proposal and two alternative proposals aim to achieve the city's goals of maximum quality at lowest cost. The alternative proposals offer lower total cost of ownership through a non-cancellable rental or a public finance program with ownership options. Ricoh's proposals are designed to meet the city's priorities of low total cost, high service levels, financing flexibility, and environmental sustainability.
The document provides a business plan for Windsor Plaza Hotel in Ho Chi Minh City, Vietnam for 2009. It analyzes trends and sets objectives to play safe on revenue but focus on savings and costs. The hotel has 403 rooms and facilities for events, dining, entertainment and more. The business plan aims to achieve priorities and targets through effective operations, marketing, resources, and financial management. It also provides a SWOT analysis and outlines strategies for training, new revenue streams, renovation, and other initiatives.
The document provides an executive summary for a marketing plan targeting jetBlue customers. The primary target audience is frequent travelers aged 45-64 with household incomes over $100,000. The secondary target is younger jetBlue customers aged 35-49 with families living in New England. The objectives are to reach 80 people 4 times for the primary audience during peak seasons and 75 people 3 times for the secondary audience. The strategy will use various media like magazines, websites, TV, radio, newspapers and outdoor advertising to reach each audience.
JetBlue was founded in 1999 with a mission to bring humanity back to air travel. Over the next decade, JetBlue grew rapidly by focusing on point-to-point routes rather than hubs, offering amenities like satellite TV and extra legroom, and implementing technology like online booking. By 2011, JetBlue had partnered with other airlines to expand its international routes while continuing to prioritize low costs, high customer satisfaction, and a strong brand.
The document provides a SWOT analysis of Virgin Atlantic airline. It discusses the company's strengths such as its strong brand value and focus on quality customer service. Weaknesses include financial challenges from Brexit and poor differentiation from competitors. Opportunities include changing customer preferences and growing business travel. Major threats include increased competition from other airlines and economic conditions from Brexit. The conclusion emphasizes Virgin Atlantic's strengths in branding and customer experience while needing to address weaknesses like financial issues and lack of differentiation from rivals.
Virgin Atlantic, Marketing, External Environment, Internal Environment, Porter's Five forces Model, IIFM, Indian institute Of Forest Management, Richard Branson
Southwest Airlines is the largest domestic carrier in the US based on passengers carried. It was founded in 1971 with a mission of providing low-cost, high-frequency, point-to-point flights. Southwest pioneered many customer-friendly policies like online booking and ticketless travel. It focuses on strong customer service and loyalty through low fares and programs like Rapid Rewards. Southwest uses a point-to-point routing on a single aircraft type to keep costs low and efficiency high.
This document proposes demand generation campaigns and media recommendations for Virgin Atlantic for 2017 by Sharaf Travels, their General Sales Agent in the UAE and Oman. It analyzes Virgin Atlantic's business model, customers, products, and competition. Two campaign ideas are presented: an incentive program called "Fun to Earn" for travel agency staff and a "Fly Fresh" campaign positioning the airline as a refreshing experience through interactive advertising. The agency seeks to partner with Sharaf Travels to execute a two-pronged B2B and B2C marketing strategy using various online, print, outdoor, and event-based media.
A strategic Analysis of WestJet Airline Company.docxwrite31
WestJet Airlines is a Canadian airline company that provides low-cost air travel to destinations in Canada, the US, Mexico, and the Caribbean. It was founded in 1996 and has grown significantly since then, becoming the second largest airline in Canada. WestJet aims to offer affordable and high quality air services. It has a strong corporate culture and focuses on community involvement and environmental protection. While WestJet has many strengths, it also faces threats from other modes of transportation and competitors as it looks to expand internationally.
A strategic Analysis of WestJet Airline Company.docxwrite12
WestJet Airlines is a Canadian airline company that provides low-cost air travel to destinations in Canada, the US, Mexico, and the Caribbean. It was founded in 1996 and has grown significantly since then, becoming the second largest airline in Canada. WestJet aims to offer affordable and high quality air services. It has a strong corporate culture and focuses on community involvement and environmental protection. While WestJet has many strengths, it also faces threats from other modes of transportation and competitors as it looks to expand internationally.
Air canada- Digital Marketing StrategyKeshav Arora
- Air Canada wants to position itself as the premier travel partner for Canadians to explore their own country as travel anxiety decreases using an omnichannel digital marketing strategy.
- The strategic plan includes two campaigns - "Making Your Dreams Travel" and "CleanCare+" focusing on domestic exploration and COVID-19 safety, running from June to August.
- Key goals are to take an omnichannel approach, increase paid advertising, and boost brand affinity over competitors.
Southwest Airlines provides low-cost air transportation throughout the United States. Founded in 1971, Southwest operates over 3,100 flights daily to 64 cities using a fleet of over 500 Boeing 737 aircraft. Known for its low fares and emphasis on customer service, Southwest has no change or baggage fees and provides complimentary snacks and drinks on flights. Through consistent adherence to its low-cost business model and humor-focused promotional campaigns, Southwest has become the largest domestic carrier in the U.S.
Business Pitch AssignmentDaniela Aleman Danae Alonso J.docxfelicidaddinwoodie
Business Pitch Assignment
Daniela Aleman | Danae Alonso | Javier Llanos | Kelly Pena | Aymara Priede | Alec Walter
VALOR AIRLINES
“Sky High Value”
Valor Airlines is a new, low-cost carrier primarily serving passengers for long-haul travel to South
America. Based in Miami, Valor Airlines is projected to have about ten aircraft by 2025, which will
serve around 20 destinations across North and South America. Our mission is to provide competitive
pricing for customers who would like to travel long-haul but can’t a�ord the prices of legacy carriers.
Currently, America’s legacy carriers are the only options on some long-haul travel routes to South
America and this has led them to having a monopoly on prices and frequencies. For example, if you
wanted to �y non-stop from Miami, Florida, to Montevideo, Uruguay, you would have to use
American Airlines, which charges a staggering $1000+ average fare per person!
Meanwhile, low-cost competitors like Spirit Airlines and Frontier Airways have competitive prices
but they simply can’t take you as far and deep into South America as we would be able to because
of their �eet types.
However, thanks to our Airbus 321LRs, Valor Airlines will be a leader in long-haul direct service to
small and large, international cities. Our narrow-body jets allow us to connect to the smaller cities
in South America that don’t have direct service yet. This allows us to connect more people and cities
without customers having to have a second or third layover to get to their destination. Operating
routes with thinner tra�c is a key strategy for Valor Airlines; we would be able to operate these
routes with less seats that larger carriers can’t pro�tably sustain with a jumbo-jet like a Boeing 747.
Valor Airlines: “Sky-High Value.”
BargainAir Express Airways
Name subject to change
IDEA PITCH FOR GROUP
Purpose
To provide competitive fares on routes into deep South America where
legacy carriers have premium fares.
Example: Miami to Montevideo flights
Realize how there is only one carrier
on the route and it is one of
America’s legacy carriers, American
Airlines. $1,311 is a bit steep.
Market Analysis
The Low Cost Carrier {LCC} has been an airline model that has surged in
popularity and growth within the past few years. In the United States,
we have several large LCC’s.
In Europe, the second biggest carrier is an LCC named Ryanair. They
also have Norwegian Air.
Market Analysis [Part 2]
While Europe and North America might seem saturated with LCC’s, South America is a different
story. Spirit Airlines has a great market share for Central American routes and short distance
South American routes such as Colombia or Ecuador. On the other hand, there are no American
LCC’s flying into deep South America such as Paraguay, Argentina, or southern Brazil.
The primary airlines that do are…
LATAM
AMERICAN
DELTA
UNITED
AVIANCA
None are considered low-cost
Market Analysis [Part 3]
Inte.
Marketing Excellence Southwest Airlines
Southwest Airlines debuted in 1971 with little money but lots of personality. Marketing itself as the LUV airline, the company featured a bright red heart logo and relied on outrageous antics to generate word of mouth and new business. Flight attendants in red-orange hot pants served Love Bites (peanuts) and Love Potions (drinks). Today, it is Fortune’s seventh-most admired company in the world.
How did a small-budget airline accomplish so much? Southwest’s business model is based on streamlining its operations, which results in low fares and satisfied, loyal consumers. The company uses a point-to-point routing system, flying thousands of shuttle trips between different pairs of airports or “points” and carrying more passengers per plane than any other airline. Each aircraft averages 6.25 flights a day, flying for almost 12 hours. Southwest can accomplish such a feat because it avoids the traditional hub-and-spoke system and has extremely fast turnaround. In its early years, it turned planes around in less than 10 minutes. Today it averages 30 minutes—half the industry average.
Southwest’s unique boarding process also helps expedite departure. Instead of getting assigned seating, passengers are put in one of three groups (A, B, C) and given a number when they check in. Group A boards first and in numerical order (for example, A1–A30). Once on board, passengers may sit anywhere they like.
Southwest also saves by flying only Boeing 737-700s and 737-800s. This simplifies the training process for pilots, flight attendants, and mechanics and lets management substitute aircraft, reschedule flight crews, and transfer mechanics quickly and effortlessly.
One of Southwest’s biggest cost savings techniques is its strategy of purchasing fuel options years in advance. Jet fuel is an airline’s largest expense and now accounts for 35 percent of operating costs versus 13 percent just a little more than a decade ago. Many of Southwest’s long-term contracts allowed the airline to purchase fuel at $51 per barrel, a significant savings especially during the 1990s and 2000s when oil spiked past $100 per barrel. Analysts estimate it has saved more than $2 billion this way.
Southwest also improves its fuel efficiency by making its planes lighter. Crew members power-wash the jet engines each night to remove dirt, planes carry less water in bathrooms, and seats have been replaced with lighter models. Because the airline consumes approximately 1.5 billion gallons of jet fuel each year, every minor change adds up.
Southwest has expanded by entering new markets other airlines overprice and underserve. These usually include secondary cities with smaller airports, whose lower gate fees and reduced congestion promote faster turnaround and lower fares. The company believes it can reduce fares by one-third to one-half whenever it enters a new market, and it expands every market it serves by making flying affordable for more peop ...
This document provides an overview of low-cost or low-frill airlines. It discusses the history and development of the low-cost carrier model globally, including in North America, Europe, Australia/New Zealand, Asia, and India. Key aspects of the low-cost carrier model are described such as cost control strategies, pricing approaches, and operational efficiencies. Specific Indian low-cost carriers IndiGo and SpiceJet are profiled, outlining their business strategies and approaches to achieving low costs and good customer service.
Southwest Airlines was founded in 1971 and has grown to become one of the largest low-cost carriers in the US. Its mission is to provide high quality customer service with warmth and friendliness. Southwest aims to become the world's most loved, profitable, and flown airline. It offers low fare flights primarily within the US and to nearby countries, targeting middle-class families, small businesses, and young travelers. Key aspects of its strategy include an all Boeing 737 fleet and frequent short flights to reduce costs.
- Travel fees continue to rise across industries like airlines, hotels, rental cars and cruises as companies try to maximize profits. Fees are charged for things like baggage, seat selection, WiFi and amenities that were previously included.
- Some airlines like Ryanair are considering more extreme options like charging for airplane bathrooms and vertical seating to fit more passengers on flights. However, others like Virgin America are not as focused on fees and extra charges.
- As the trend toward more travel fees progresses, companies must adapt their marketing strategies to address the à la carte nature of travel costs and packages. Hotels especially are profiting greatly from service fees but must market different room rates accordingly.
This document provides an analysis of Southwest Airlines' internal strengths by examining its competencies, resources, and key financial ratios over the past three years. The internal analysis looks at Southwest's current ratio, debt-to-equity ratio, fixed assets turnover, and gross profit margin to evaluate areas where the company is performing well and areas that could be improved. Overall, the ratios show some upward and downward trends from 2014 to 2016, indicating mixed performance in different aspects of the company's financial position and operations.
Case study presentation on marketing managementNakib Khan
Southwest Airlines has traditionally had a low cost structure allowing it to offer lower fares than competitors, but as other airlines adopt similar business models the cost gap is shrinking. Issues like rising baggage handling times due to increased passengers and higher fuel costs are also challenging Southwest's low cost advantage. The document recommends strategies like improving routes and providing in-flight entertainment to help Southwest adapt to increased competition in the airline industry.
The document discusses advocacy in the airline industry. It finds that as costs increase and standard services become ancillary charges, customer experience is declining. Traditional large airlines have fewer brand advocates than alternative carriers, with many customers feeling trapped. JetBlue is resetting expectations by creating a unique flying experience. Virgin Airlines is making a good first impression with its luxury international and new domestic flights. Southwest continues its no-frills approach but may face challenges maintaining momentum. American and Delta are removing amenities and charging for basic services, creating an undesirable experience for captive customers. Airlines need to better deliver unique service, add value to flying, and upgrade the overall travel experience to encourage advocacy.
1) As costs increase and standard services decline, airlines need to find ways to upgrade the travel experience without raising costs to avoid rising customer criticism.
2) Research shows traditional carriers like Delta and American have fewer brand advocates than alternative carriers, and most customers feel trapped flying them due to limited options.
3) JetBlue has redefined passenger expectations with a unique experience and has as many advocates as popular brands like Target and Verizon. Virgin Airlines has also made a strong first impression despite limited customer experience.
1) As costs increase and standard services decrease, airlines need to find ways to upgrade the travel experience without raising costs to avoid rising customer criticism.
2) Research shows traditional carriers like Delta and American have half as many brand advocates as alternative carriers, and most customers feel trapped flying them due to limited options.
3) JetBlue has redefined passenger expectations with a unique experience and has garnered as many advocates as popular brands like Target and Verizon. Virgin Airlines has also made a strong first impression despite limited customer experience.
Strategy Innovation
Proposal #2
1
7
Strategy Innovation
Yearly, the airline industry makes lucrative, financial decisions as they pertain to collecting profitable assets for the business. As of 1930, more than 30 airlines have exercised the option of merging with another; some have succeeded, some have failed, particularly on a financial aspect. Running a business requires time, money, and of course the knowledge of running a business. Some people start off small; presenting a business in which focuses on a one area at a time. Eventually, that business can expand by globalizing its brand from state-to-state, country-to-country, or wherever their product will sell.
Assessing the situation:
One airline in particular is American Airlines; once known as American Airways, “now American Airlines”, was founded in 1930. With an operating income of more than 300 million dollars, and total revenue of 22 billion, they are the United States number one operating airline. Although final mergers pertaining to complete destination routes, and plane makeovers, American Airlines, and US Airways will create a monstrous foundation to keep the number one spot atop the airline rankings.
Assessing the situation, an unlimited amount of information is available, and discussion amongst the two airlines merging is viewable via the company’s web site, or via an Internet source. As a strategist, assessing any given situation can be tricky; mainly because of the pros and cons presented to the business. American Airlines and US Airways operated under different methods of intelligence. These methods pertain to the airlines focusing on demographics; demographics are quantifiable statistics of a given population. As both airlines initially serviced multiple countries, unwanted problems can arise at any time. These unwanted problems are usually not seen by the innovators because an innovator cannot be everywhere at the same time.
Identifying of the problem and opportunity:
Identifying unwanted situations can only upgrade the opportunities for the airline as a whole. Merging US Airways with American Airlines will bring the fleet size up to more than 800 aircrafts. Some people may take notice of the 800 aircrafts as a positive statement to the business, whereas others who travel for a living may beg to differ; this is mentioned because of air traffic. A fact in which some people may not know is; the owners of an airline company is not guaranteed air slots or space, all proposals must be discussed and brought to the attention the Federal Aviation Administration (FAA). Conjoining two airlines and clogging the friendly skies with airplanes is sufficiently unsafe. A good aspect and opportunity of the merger is the notion of the airline having what I like to call, “cap space”. In my own definition, cap space will allow the airline to have a certain amount of aircrafts on standby incase of mechanical or passenger overbooked situations.
Creative concept development:
C.
Marketing Excellence Southwest Airlines
Southwest Airlines debuted in 1971 with little money but lots of personality. Marketing itself as the LUV airline, the company featured a bright red heart logo and relied on outrageous antics to generate word of mouth and new business. Flight attendants in red-orange hot pants served Love Bites (peanuts) and Love Potions (drinks). Today, it is Fortune’s seventh-most admired company in the world.
How did a small-budget airline accomplish so much? Southwest’s business model is based on streamlining its operations, which results in low fares and satisfied, loyal consumers. The company uses a point-to-point routing system, flying thousands of shuttle trips between different pairs of airports or “points” and carrying more passengers per plane than any other airline. Each aircraft averages 6.25 flights a day, flying for almost 12 hours. Southwest can accomplish such a feat because it avoids the traditional hub-and-spoke system and has extremely fast turnaround. In its early years, it turned planes around in less than 10 minutes. Today it averages 30 minutes—half the industry average.
Southwest’s unique boarding process also helps expedite departure. Instead of getting assigned seating, passengers are put in one of three groups (A, B, C) and given a number when they check in. Group A boards first and in numerical order (for example, A1–A30). Once on board, passengers may sit anywhere they like.
Southwest also saves by flying only Boeing 737-700s and 737-800s. This simplifies the training process for pilots, flight attendants, and mechanics and lets management substitute aircraft, reschedule flight crews, and transfer mechanics quickly and effortlessly.
One of Southwest’s biggest cost savings techniques is its strategy of purchasing fuel options years in advance. Jet fuel is an airline’s largest expense and now accounts for 35 percent of operating costs versus 13 percent just a little more than a decade ago. Many of Southwest’s long-term contracts allowed the airline to purchase fuel at $51 per barrel, a significant savings especially during the 1990s and 2000s when oil spiked past $100 per barrel. Analysts estimate it has saved more than $2 billion this way.
Southwest also improves its fuel efficiency by making its planes lighter. Crew members power-wash the jet engines each night to remove dirt, planes carry less water in bathrooms, and seats have been replaced with lighter models. Because the airline consumes approximately 1.5 billion gallons of jet fuel each year, every minor change adds up.
Southwest has expanded by entering new markets other airlines overprice and underserve. These usually include secondary cities with smaller airports, whose lower gate fees and reduced congestion promote faster turnaround and lower fares. The company believes it can reduce fares by one-third to one-half whenever it enters a new market, and it expands every market it serves by making flying affordable for more people. S.
Angela Romero is a digital strategist with 4 years of experience in social media, digital, and Hispanic marketing. She has skills in areas such as social media strategy, digital strategy, content development, analytics, and Hispanic/international marketing. She has worked with Fortune 500 brands and leverages insights to define clearly positioned marketing campaigns and flawlessly executes them to deliver high returns.
The document analyzes the key causes of the 2007-2008 housing bubble and financial crisis. It discusses several factors:
1) Government policies in the 1970s-2000s that deregulated lending standards in an effort to promote homeownership, making riskier loans more widely available.
2) Government-sponsored entities Fannie Mae and Freddie Mac came under pressure to purchase riskier loans to meet quotas, further spreading risky lending.
3) The Federal Reserve kept interest rates low in the early 2000s, fueling the bubble, then raised rates in 2004-2006, increasing foreclosures on adjustable rate mortgages.
4) Mortgage lenders aggressively targeted riskier borrowers with
Apple introduced the iPod in 2001, featuring a sleek design, large storage, and easy interface. It became a mass-market product appealing to teens and young adults. Apple differentiated the iPod into various models at different price points to target different segments. The iPod was marketed through mass media advertising campaigns portraying it as hip and urban, and distribution occurred through major retailers, Apple stores, and online stores.
This document summarizes the design thinking process for a Monster Energy Drink advertising campaign. It discusses researching two prototype ads featuring Albert Einstein and Brian Wilson and finding that more people understood and preferred the Wilson ad. The final ad features Wilson and will be displayed on a billboard in San Francisco between a highway and the AT&T Park baseball stadium, targeting young male sports fans commuting to games. The ad is intended to humorously suggest that drinking Monster Energy can enhance athletic performance.
This document discusses a marketing campaign targeting seniors aged 65 and older. It analyzes the demographic, psychographic, and geographic characteristics of seniors. The campaign aims to position the message that you are only as old as you feel by showing seniors engaged in active lifestyles. TV advertisements will run on networks like CBS Local News and The Ellen DeGeneres Show to reach both female and male seniors. The ads will feature doctors discussing health issues and solutions like Centrum vitamins, along with videos of seniors enjoying hobbies and activities.
Metamorphosis a transformation from book caterpillar to rock star butterflyAngela Romero
The memoir documents Patti Smith's transformation from a shy, insecure teenager to a confident rock star and artist. This was largely due to her relationship with Robert Mapplethorpe, who cultivated her self-esteem and confidence, supported her artistic pursuits, introduced her to influential social circles, and orchestrated opportunities that launched her career, such as her debut performance at St. Mark's Church. Mapplethorpe played many pivotal roles in Smith's life and was devoted to helping her achieve success and recognition as an artist.
Dublin Dr. Pepper: A Goldmine of OpportunityAngela Romero
Dublin Dr. Pepper, a small-town soda maker, was forced to close by Dr Pepper HQ despite a loyal following. This creative brief proposes re-launching Dublin Dr. Pepper as an artisanal soda, targeting affluent urban professionals who prefer locally-made organic foods. The marketing strategy would emphasize Dublin Dr. Pepper's original taste from cane sugar in glass bottles. A two-page magazine ad would feature copy highlighting the soda's return and a design that doubles as a bottle opener.
The document proposes an in-store advertising campaign to increase customer awareness of Target's sustainability efforts such as recycling programs. It presents research showing customers are unaware of these initiatives. The recommendations include promoting reusable bags, relocating recycling bins, developing educational materials, and offering incentives for purchasing green products to boost sales and brand image.
The document analyzes search engine results and paid search ads for the keyword phrase "Saving for College" on Google, Yahoo, and Bing. It finds that the top organic search result and many paid search ads across the search engines link to savingforcollege.com. It also provides an example of a display ad that could be created to promote a college savings plan from Key Bank targeted at young adults.
The document provides guidance for creating a blog for the company Farm Fresh To You (FFTY) that will profile their produce and provide recipe ideas, including discussing potential blog names, design elements, functionality, and initial post topics such as an introduction, roasted lamb recipe, and pumpkin cauliflower soup. It also recommends strategies for demonstrating cooking expertise through responsive engagement with readers and other bloggers.
The document discusses and compares the Facebook pages of three retailers - Lord & Taylor, Barneys New York, and Neiman Marcus. It finds that Lord & Taylor has the best designed page with high quality photos, a clear brand image, and engaging content. In contrast, it says the Barneys New York page is cluttered, inconsistent, and lacks professional photos. For Neiman Marcus, it provides details on their target demographic of wealthy women ages 30-60, and describes tactics for their Facebook page like using a landing page to encourage likes and sharing fresh photos.
Tube Tool Box is software that aims to help videos go viral by automatically gathering lists of friends and subscribers, sending friend requests, commenting on videos, and messaging viewers to build a large subscriber base and bypass CAPTCHAs, though the automation could seem insincere and risk accounts getting flagged or banned. It works by using APIs and delays for safety and spider searches to find target audiences while automating tasks and marketing functions with the goal of making videos spread widely.
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
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Virgin America Marketing Plan
1. Virgin America: The Low-Cost, Luxury Airline
Marketing Plan
Presented by: Angela Romero-Monsalve
Presented to: Prof. Perttula
MKTG 649-3
SFSU
2. History of Virgin America
Virgin America is a subsidiary of the Virgin Group, which is a venture capital conglomerate,
composed of 400 companies worldwide owned by Sir Richard Branson. The concept behind this
business model is to infuse each subsidiary with the Virgin brand and core values in order to
invest in different business areas. The Virgin brand is intrinsically linked to its owner, Sir
Richard Branson. Branson infused thecore values of being unconventional, hip, and innovativeto
each of the conglomerate’s subsidiaries with a keen emphasis on delivering high-quality products
for a low price.1These core values are present in Virgin America because it provides high-quality
travel at a low cost. Virgin America’s primary operations are located in San Francisco
International Airport and its headquarters are in Burlingame, CA.
Virgin America started its flight operations on August 8, 2007 with an aim to provide low-cost
travel with high-quality service between major cities across the east and west coasts, such as
New York City, San Francisco and Los Angeles. By 2012, Virgin America has expanded its
travel destinations to 13 cities in the U.S., such as Seattle, Portland, Dallas, and Philadelphia.
The reason why Virgin flies to these destinations is because these destinations are major
metropolitan cities where the target audience, the “creative class”,frequentsforbusiness purposes,
as explained in the next section “Target Audience”.
Target Audience
According to David Cush, Virgin America’s Chief Executive Officer, the airline’s offering is
primarily targeted at the “creative class” who are young, urban, tech-savvy professionals using
smartphones to frequent social media sites, such as Twitter, Facebook, and Wordpress. 2This
target market rages from 25 to 40 years old, lives in urban areas, and socializes on the web. The
“creative class” encompasses two generational cohorts—the millennials, who were born between
mid 1970s and mid 1990s 3and the Generation X, who were born between mid 1960s and mid
1Marketing Minds. The Virgin Brand. 2012. Web. 04/09/12.<www.marketingminds.com.au/branding/virgin.html>
2Young, Eric. “Virgin America targets ‘creative class’ with social media”. San Francisco Business Times,October 11, 2009.
Web. 04/09/12 <www.bizjournals.com/sanfrancisco/stories/2009/10/12/focus2.html>
3 French, Dana (2005-11-21). "Generation Y versus Baby Boomers". Furniture Today. Retrieved 2009-11-27. "Born
between 1976 and 1994, more than one-third of Gen Y is still under 18."
3. 1970s. Gen X is the main focus of Virgin America because Gen Xers are in a life stage cycle
where they travel for work and/or have capital to start entrepreneurial ventures, which require
travel. The main reason why its operations are located in San Francisco is to cater to hub of
technological start-ups in Silicon Valley. As a marketing strategy, Mr. Cush aligned the product
offering with the primary target market. Because Silicon Valley people are computer-savvy, and
need to work and multitask during the flight, Virgin America offers in-flight Internet, gaming
platforms, and plugs for electronics. Also, the “creative class”will pay for comfort, luxury and
high quality service, which is why Virgin America offers customized leather chairs, ample
legroom and a friendly staff. 4Lastly, the Quantcast demographic analysis reveals that Virgin’s
target market is: males and females between the ages of 25-44 who are affluent and have at least
a college education, which parallels the “creative class” target market description.5
Product
Virgin America offers low-cost travel with high-quality service, providing premium
entertainment and productivity optionswhile being trendy and hip.To fulfill the low cost brand
promise, virgin follows a low-cost airline business model, having only one type of aircraft, the
Airbus A320. Following Southwest, the market leader on low cost, Virgin America uses a point-
to-point route networks and doesn’t add many connections.
Virgin America offers a touch-screen entertainment and productivity platform because, JetBlue,
the leader in comfort andpremium entertainment offers it. This touch-screen platformuses the
Red™ system, which is the most sophisticated entertainment system in the airline industry,
offering music, movies, and games.For productivity purposes, Virgin created a partnership with
Google to provideGogo® in-flight Internet. Theairplanes also come equipped with Ethernet jacks
and USB plugs in every seat because Virgin wants itspassengers to use their productivity devises
to get work done while traveling. The main cabin is also equipped with white leather seats,
ample chair space, and mood lighting, resembling first class cabins. Lastly, the flight attendants
are meticulously trained to provide a friendly and consistent service.
4 Grossman, David. “Virgin America designs a low-cost airline for business travelers”. USA TODAY, 9/9/2009. Web.
04/09/12. <www.usatoday.com/travel/columnist/grossman/2009-09-09-virgin-america_N.htm>
5Quantcast Corporations, 2012. . Web. 04/09/12. <www.quantcast.com/virginamerica.com>
4. Price
Virgin’spricing is in the lower-end of the spectrum, because its price offering is similar to
Southwest, the leader in low-cost airtravel. Virgin America offers airlines tickets from San
Francisco International Airportto Los Angeles International Airport for $69 dollars. Also,
Southwest offers tickets for the same route at the same price,$69 dollars.
As we learned in class, the airline industry is characterized by high fixed cost and very low
variable cost, which is why airlines aim to maximize revenues by engaging in price
discrimination. Figure 1: Price Discrimination depicts several price pointsthat Virgin America
offers for the same flight from San Francisco International Airport to John F. Kennedy
International Airport. The main categories are: Main Cabin, Main Cabin Refundable, Instant
Upgrade to Main Cabin Select, Main Cabin Select, First Class, and Refundable First Class.
Virgin America offers fundable tickets mainly for business travelers because this kind of ticket
allows for flexibility. This feature appeals to businesses because business meetings are often
rescheduled or because other coworkercould fly instead. On the contrary, leisure travelers rarely
reschedule vacations.
Figure 1: Price Discrimination
Source: VirginAirlines.com
Also, there is three price points: Main Cabin, Main Cabin Select, and First Class, which
correspond to three different locations in the airplane and an increasing amount of amenities. For
example, the Main Cabin offers for-pay entertainment, for-pay food and drinks, and no free
luggage check in. In contrast, First Class has exclusive reclining chairs, and unlimited free
entertainment, food, drinks, and checked bags.
5. Distribution
There are two main distributions channels for Virgin America’s tickets. The main one, which
accounts for 70% of the Airline’s ticket revenue is the company website, Virginamerica.com. 6
The other 30% comes from online travel agencies, such as Travelocity or Expedia. Virgin’s
tickets sales are mostly online because the “creative class” gravitates towards the web to do its
shopping, instead of going to brick-and-mortar travel agencies.Sporadically, Virgin America
distributes its plane tickets through discount websites, such as Grouponor Living Social. Virgin
sells its tickets via discount websites because of its cost structure. Because it has high fixed cost
and low variable cost, it is preferable to get more passengers in the flight at a discounted rate
than losing that revenue.
Figure 2: Domestic Operating Profit
Competition
The airline industry is characterized by having high fixed
costs and fierce price competition. As a result, airlines
created several alliances as means to increase revenue
and efficiency while reducing costs. There are three
major airline alliances:Oneworld with a market share of
22.7%, SkyTeam with 28.3%, and Star Alliance with the
majority of the market share of 37.6%.7
Source: CAPA
This is key for Virgin America because it’s an independent airline,
which means it has no alliances. This factor places Virgin America at a disadvantage when it
comes to reducing cost via increased purchasing power or increasing revenue via costumer
sharing, as the big three alliances do. Virgin America’s disadvantage is shown in it lower profits
compared to airlines that are members of alliances. Virgin America’s operating profit, shown in
blue, is often at the bottom when compared to Spirit Airlines, Alaskan Airlines, Jet Blue
Airways, and AirTran, demonstrated by Figure 2: Domestic Operating Profits.8
6 Grossman, David. “Virgin America designs a low-cost airline for business travelers”. USA TODAY, 9/9/2009. Web.
04/09/12. <www.usatoday.com/travel/columnist/grossman/2009-09-09-virgin
7 CAPA. “Virgin Atlantic to join alliance for firepower to compete with 'mega' mergers”.
Centre For Aviation, 13th September, 2011. Web. 04/09/12.< www.centreforaviation.com/analysis/virgin-atlantic-
considering-its-options--to-join-alliance-o-compete-with-mega-alliances-44259>
8CAPA. “Virgin America’s David Cush says the airline's unique formula will drive success”. Centre For Aviation, 13th
September, 2011. Web. 04/09/12. <www.centreforaviation.com/analysis/virgin-americas-david-cush-says-the-airlines-
unique-formula-will-drive-success-58673>
6. Promotion
Because Virgin America’s target market isthe “creative class”-- young, urban, tech-savvy
professionals using smartphones to frequent social media sites, such as Twitter andFacebook--the
best place to reach them is online. For promotions and advertising, Virgin America is mainly
active in 2 social networking sites: Twitter and Facebook.Twitter is the main promotional vehicle
for Virgin America. It aims to attract new customers in the tech-savvy market with Promoted
Tweets, which are advertisements that appear in the feed of people who aren’t following Virgin.
This is a good strategy because even thought Virgin America has over 300,000 followers, it can
9
increase its revenues via more customers. Moreover, Virgin did a Twitter promotion through
Promoted Tweets called “Fly Forward, Give Back”, which resulted in the fifth most successful
day in ticket sales. 10
Virgin America aims to create brand awareness, engage customers, and increase emotional
bondsby being highly responsive with its followers. After analyzing Virgin America’s Twitter
stream, I concluded that it respond to all the Tweets from followers, which is highly unusual for
a company. Virgin America embraced Twitter as a vehicle for guest services, a social media
strategy never seen before in the airline industry. For example, if a guest misses a flight and
Twits about it, Virgin responds by rebooking another flight for that guest.
Facebook is the perfect vehicle to engage in 2-way conversations with consumers in an attempt
to increase brand loyalty because Virgin hasover 200,000 followers.While followers don’t
translate into engagement, Virgin has over 5,000 people “talking about this”, which represent the
number of people actively engaging with the company.Virgin’s FacebookPage showcases events,
promotions, new routes and links to other less important social media sites, such as Instagram
and Pinterest. Because Virgin America is positioned as a high-tech airline, it wants to attract a
tech-savvy target market, which socializes on the web. As a result of the direct engagement via
social media, Virgin was able to achieve a Net Promoter Scoresimilar to Apple’s, which enjoys
high loyalty among its customers.A Net Promoter Score is a marketing tool used to measure
9 Van Grove, Jennifer. “Tweets at 35,000 Feet: How Virgin America Uses Promoted Tweets”. April 13, 2010. Mashable.com.
Web. 04/09/12. <mashable.com/2010/04/13/virgin-america-promoted-tweets>
10 Bush, Michael. “Virgin America on Why Twitter, Facebook Are More Important Than TV”. Adage.com, February 09,
2011. Web. 04/09/12. <http://adage.com/article/digital/virgin-america-values-twitter-facebook-tv2/148795>
7. customer’s loyalty. In conclusion, Virgin has turned one-time customers to loyal fans through
social media engagement. 11In addition, Virgin America has refrained to use TV ads because it is
a startup airline with a small target market that doesn’t have much reserve capital. On the other
hand, TV ads are designed to reachthe mass markets and are extremely costly. As a result, a TV
campaign would not serve Virgin’s goal, which is whyVirgin has not
used TV ads. Figure 3: Event Promotion
Guerrilla Marketing
Virgin America engages on guerrilla marketing campaigns that
seamlessly blend several marketing channels, such as the “Fly The
Beard” campaign. Virgin America and the San Francisco Giants
partnered to create a plane that has a beard in honor of baseballstar,
Brian Wilson. The campaign was promoted via a You Tube video Source: Virgin’s Facebook
because You Tube is another website that is frequented by the creative class. Another component
of the campaign is event marketing. Virgin set up a footprint that looked like an airplane in front
of AT&T Park. It also had photographers taking pictures of people in a fake beard behind a cut
out that resembles Virgin’s iconic print ads, see . The goal of the campaign is to take a picture of
the bearded plane and Tweet it to@VirginAmerica using the #FlyTheBeard hash tag. Virgin
selects the best pictures every month and the winners get free flights, andVirgin America Club
Level passes.12
There are several reasons why Virgin did this campaign. First, partnering with a high profile
organization like the San Francisco Giants increases brand awareness. Moreover, a Quantcast
demographic analysis reveals that the Giants fans are males between the ages of 20-35 who are
affluent and have at least a college education. 13 The Giant’s target market
demographicsparallelVirgin’s demographics closely, which illustrates that Virgin was aiming to
gain customers from the Giants because these two companies have a similar target market.
Breath of Fresh Airline Multimedia Campaign
11Bush, Michael. “Virgin America on Why Twitter, Facebook Are More Important Than TV”. Adage.com, February 09,
2011. Web. 04/09/12. <http://adage.com/article/digital/virgin-america-values-twitter-facebook-tv2/148795>
12Virgin America. 2012. Web. 04/09/12. http://www.virgin.com/travel/news/fly-the-beard-with-virgin-america
13Quantcast Corporations, 2012. . Web. 04/09/12<http://www.quantcast.com/sanfrancisco.giants.mlb.com>
8. Figure 4: Print Ad Virgin’s main campaign was called a “Breath of Fresh
Airline” and it was introduced in 2011. This multi-media
campaign usesonline banner ads, You Tubevideos,print, and
out-of-home billboardsas its main pillars.14However, the
online banner ads are the most used because online ads are
relatively cheap, the ROI is easy to track, and it gathers
consumer information. I found that Virgin’s online ads are
based on search history because since I’ve been doing this
paper, I’ve been getting several ones.
Source: Virgin’s Website
Figure 5: Out-Of-Home
The goal of the campaign is to showcase differentiating
features and amenities of the airline, such as entertainment,
mood lighting, and Internet with “cheeky statements” from
passengers. The adsshow different passengers framed from an
airplane window, expressing their feelings about Virgin such
as, “landing has never been so bittersweet”. The passengers’
points of view represent the company’s mission to make
flying fun and stylish. Moreover, from language like Source: Virgin’s Website
“bittersweet”, we can infer that Virgin is targeting an educated target market because
“bittersweet” is not a common word. Moreover, Virgin chose to display its ads on the
Internetbecausethat is where the target market spends its time, socializing and working. Lastly,
for the print ads, Virgin chose to deliver them in places transited by commuters, such as train and
bus stations, and busy street intersections because its needs to reach its target market who are
working professionals that commute.
14VirginAmerica. 2012. Web. 04/09/12. < http://www.virginamerica.com/press-release/2011/virgin-america-launches-
breath-of-fresh-airline.html>