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Virgin America Marketing Plan
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.
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Virgin America Marketing Plan
- 1. MARKETING PLAN BY :ANGELA ROMERO
- 2. VIRGIN BRAND BySir. Richard Branson Brand extension marketing strategy: • Using the same brand name in a different product market Can anybody name some of its brand extensions?
- 3. HISTORY: VIRGIN AMERICA •Started August, 2007 routes to • By 2012, Virgin America has travel destinations to 13 cities– Seattle, Portland, and Dallas. WHY • Because its target market flies for business purposes & these cities are business hubs
- 4. TARGET MARKET CREATIVE CLASS • Gen X / Gen Y • Young Professionals • Tech-savvy • Business Travelers • Silicon Valley Entrepreneurs
- 5. PRODUCT: AIR TRAVEL Entertainment & productivity Low cost Quality service
- 6. WHY? • Tech savvy--Hightech offering • Travel for work– work on the flight • Fly frequently want great service
- 7. PRICE Comparable to Southwest:Low cost Price Discrimination Main Cabin Main Cabin Select First Class
- 8. DISTRIBUTION Company Website Online Travel Agencies 70% 30%
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- 10. WHY? • The “creativeclass” shops on the web • Not brick-and-mortar travel agencies • High fixed cost and low variable cost • Rather have more passengers in the flight at a discounted rate than losing that revenue.
- 11. PROMOTION: SOCIAL MEDIA GOALS • Sales promotions • Brand awareness ? • Service– Rebooking
- 12. MULTIMEDIA CAMPAIGN: “BREATH OFFRESH AIRLINE” Out of Home Online Print
- 13. WHY? • Tech savvy •Work • Best place to reach them is online • Or, in places where commuters frequent, like train stations or transited streets
- 14. CONCLUSION • Virgin Americais a high-tech airline that targets business travelers • Derives reputation from its parent brand, Virgin • Delivers on low-cost promise, but offers extra amenities • Performing well because it keep expanding its routes
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Editor's Notes
- #3 The virgin brand was created by Sir. Richard Branson. Branson is a successful entrepreneur who infused the core values of being unconventional, hip, and innovative to each of his brands. He uses the Marketing Strategy of Brand Extension for his businesses. Using the same brand name in a different product market Can anybody name some of its brand extensions? In fact, there is so many brand extension that they form a Conglomerate of over 400 subsidiaries worldwide called Virgin Gruop, but today we are going talk about Virgin America.
- #4 History: Virgin AmericaStarted August 8, 2007 routes to SF, NYC, and LA.By 2012, Virgin America has travel destinations to 13 cities, such as Seattle, Portland, Dallas, and Philadelphia. Why fly to these cities? Virgin’s target market flies for business purposes & these cities are business hubsWhich bring us to the next topic, which is Virgin America’s Target market?
- #5 They are called creative class Encompasses the Gen X / Gen Y Young Professionals Tech-savvy Business TravelersSilicon Valley EntrepreneursWhat does virgin America offers this target marketProduct: AIR TRAVEL
- #6 Virgin America offers low-cost travel~I made some research online and I found that Virgin America offers airlines tickets from San Francisco International Airport to Los Angeles International Airport for $69 dollars. Also, Southwest offers tickets for the same route at the same price, $69 dollars~Premium entertainment and productivity options, like free internet or plugs in each seat for productivity devisesWith high-quality service, while being trendy and hip.
- #7 Why do they offer these features? Remember these guys? They are Tech savvy, which means they are going to want a high tech offering, like free internet Travel for work– work on the flightWhich is why plugs in each seat for productivity devisesFly frequently, so they want great service every time
- #8 Price Virgin’s pricing is in the lower-end of the spectrum, because its price offering is similar to Southwest, which is the leader in low-cost air travel.
- #9 Distribution There are two main distributions channels The main one, which accounts for 70% of the revenues is the company website, Virginamerica.com. The other 30% comes from online travel agencies, such as Travelocity or Expedia
- #10 Sporadically, Virgin America distributes its plane tickets through discount websites, such as Groupon or Living Social. Groupon deals sold tickets for 7 dollars fro SFO to Chicago.
- #11 WHY does virgin distribute its products this way? The “creative class” shops on the web, not brick-and-mortar travel agencies Sell on discount websites because of high fixed cost and low variable costRather have more passengers in the flight at a discounted rate than losing that revenue.
- #12 Promotion: Social Media Mostly active on Facebook & Twitter The Goals : Sales promotions: Virgin did a Twitter promotion through Promoted Tweets called “Fly Forward, Give Back”, which resulted in the fifth most successful day in ticket sales.Brand awarenessService– Rebooking guest. For example, if a guest misses a flight and Twits about it, Virgin responds by rebooking another flight for that guest. A social media strategy never seen before in the airline industry.
- #14 Multimedia Campaign: “Breath of Fresh Airline”Delivery channels: out of home, print, and online Why? These guys are tech savvy & work. Therefore, the best place to reach them is onlineOr, in places where commuters frequent, like train stations or transited streets.