The Virgin Group Case Study - Story of How Richard Branson put The Virgin Brand into a global map, extending it into 400 businesses. Created during summer Internship on Marketing Management under, Prof. Sameer Mathur, IIM Lucknow.

1. “Screw it, let’s do it!”

2.  Conceived by Sir Richard Branson & Nik Powell as MailOrder Record
Business in 1970.
 Represented itself as a brand entering every business as aVirgin.
 Floated at London Stock Exchange in 1986.
 Employed approx. 71,000 in 50 countries.
 Estimated net worth £5–5.5 billion as of November, 2014.
 Generated revenue £19.5 billion in 2016.

3. Quality-
To create value in
exchange of money
Innovation-
To make a difference
in competitive
environment
Friendliness-
To contribute
effortlessly in
customer satisfaction

4. Business opportunities are like
buses, there’s always another one
coming.
It has to be involving, fun and it has
to exercise your creative instinct.

5. Joint
Ventures-
To escape hassle-
free entry &
sustainability. Ex-
Virgin+Green Field
start up
Licensing-
To avoid capital
injection, make
brand as asset. Ex-
Virgin Radio
Acquisition-
To add value to
brand. Ex-Virgin
Galactic’s 30% stake
Bailout-
Selling old
business to invest
on potential ones.
Ex-Virgin direct
banking

6.  StartedVirgin Records in 1971 & Marked success with Mike Oldfield’s hit
record ‘Tubular Bells’.
 Expanded in industries such as Airlines, Entertainment, Lifestyle, Health,
Mobiles, Media, Financial Services in 1978-94.
 Started Virgin Bride in 1999,Virgin cars and mobile in 2000.
 LaunchedVirginCinemas, Stores, Express, Galactic in 2002-04.
 Created F1Team.

7.  Interacted with 50 customers every month since launch ofVirgin
Atlantic.
 Appeared at airports to gift customers for delayed flights.
Wherever we find
them(overcharged, unhappy
customers), there is clear opportunity
area forVirgin to do a much better job
than the competition.

8. Portfolio includes 400 different businesses, specially focusing
on:

9. • Organizational Strategy
 Keiretsu organizational structure
 Hands-off policy
 No formal managerial structure
 Decentralization of decision making
 Flat hierarchies, people-oriented

10. • Corporate Strategy
 Long-term growth
 Business opportunities using internet, competitive advantage
 Commitment to deliver niche experience.
 Less is more
 Combination of services in multiple business

11. 1.Virgin Atlantic 2.Virgin Mobile 3.Virgin Brides

12. Parent
Parental CorporateApproach

13.  Virgin Student
 Virgin Cola
 Virgin Brides
 Virgin Cars
 Virgin Clothing

14. Competitive
Rivalry -
HIGH
Threats of
New
Entrants -
LOW
Threat of
Substitution
- LOW
Bargaining
power of
Customer -
HIGH
Bargaining
Power of
Suppliers-
HIGH

15. Diluted Brand
Image
Too much
Dependency
of Branson
Extensive
Portfolio
Financial Risk
(Substitute
exchange rate)
Carry-over
Effect
Brand
over-
reliance

16. The BRANDS that willTHRIVE in
the coming years are the ones that
are the ones that have a purpose
BEYOND PROFIT.

17. 1. How isVirgin unique in its quest to be a
socially responsible and sustainable
company?
 Corporate Responsibility and Sustainable Development
(CR/SD) as its key factor.
 Green Fund in renewable energy from solar energy to
water purification.
 Virgin Unite to protect planet earth through activities.
 Earth Challenge to encourage long-term mean for
greenhouse gas emissions, awarding $25M.

18. 2. Discuss the contradiction between Virgin’s negative environmental
impact (via air and rail) and the green message and communication
efforts behind endeavours such as the Earth Challenge.
 Less exploitation of natural, non-renewable resources.
 Before,Virgin entered in aviation and rail transport, there existed others.
 Thorough review of submissions in Earth Challenge by team of scientists, professors, and
environmentalists.
 Goal – ‘ To change the way businesses and social sector work together’
 Hence, Green Fund is not only a mere PR stunt.

19.  Beginning
 Corporate Rationale
 International Expansion strategy
 Expansion
 Exclusive Customer Service
 Product Diversity
 Organizational-Corporate Strategy
 Sir Branson’s PR Stunts
 Value CreationApproach
 Failed Extensions
 Porter’s Five Forces
 Challenges
 Relevant Questions

20. Created as an assignment during Marketing Management
Internship, under
Professor Sameer Mathur
IIM Lucknow
Ph.D.: Carnegie Mellon University
By
Sharanya Ray
West Bengal University ofTechnology