Virgin Atlantic Competitive Analysis

This assignment delves into a comprehensive analysis of Virgin Atlantic's competitive landscape. Utilizing Porter's Five Forces framework, the document evaluates factors such as industry rivalry, bargaining power of suppliers and buyers, threat of substitute products, and the threat of new entrants. It also examines Virgin Atlantic's brand equity, demand analysis, and comparative position within the low-cost carriage and premium services segments of the aviation industry.

MARKETING
COMMUNICATION
FRAMEWORKS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis of Virgin Atlantic brand and evaluating marketing and communication issues faced
by the company.......................................................................................................................1
TASK 2............................................................................................................................................3
Communication Objectives....................................................................................................3
TASK 3............................................................................................................................................5
New strategic direction for Virgin Brand...............................................................................5
TASK 4............................................................................................................................................6
Communication activities used by Virgin Atlantic................................................................6
TASK 4 a.........................................................................................................................................8
Scheduling of communication and tools and media...............................................................8
TASK 5............................................................................................................................................8
Communication Budget..........................................................................................................8
TASK 6............................................................................................................................................9
Communication Evaluation....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Communication is a key element for organizational success. Expanding boundaries and
developing growth prospects of the business has complicated the communication process.
Organisation in the present global world needs to select effective and well defined means of
communication in order to attain effective results. Virgin Atlantic is a successful brand of virgin
group which provides aviation services to different parts of the world. The company was
established in the year 1984 and has been successfully operating thereon. This firm has been
known for its unique marketing agenda which has helped it in developing a unique brand name
within the market. The present study will focus on developing effective and competitive
marketing communication plan for ensuring the success of the business within the economy.
TASK 1
Analysis of Virgin Atlantic brand and evaluating marketing and communication issues faced by
the company
Virgin Atlantic is a successful airline brand operating globally. The company has gained
high brand recognition in the international market due to its unique marketing strategies and
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Illustration 1: Demand analysis for Virgin Atlantic
(Source: Zeithaml, Bitner and Gremler, 2010)

communication plan as well. The brand analysis of the organization will help in analysing its
present market position and issues that the company are facing for developing its marketing and
communication plans.
Brand equity model
Brand identity
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Illustration 2: Brand equity model
Illustration 3: Comparative analysis of low cost carriage and premium services
(Source: Virgin Atlantic Airways – Company Overview)

Virgin Atlantic has developed a well established and unique brand image within the
market. The growth and development of the company has created an effective and well
developed impact on organizational demand and different range of services. Virgin Atlantic has
developed a recognised brand image through adopting effective range of services for the
consumers. The premium range services of the business is effective and well defined. However,
the consumer perception for the company is defined by high price range services. Low cost
services by the company is limited which has developed low demand for recent trends for low
cost services.
Brand meaning
Virgin Atlantic has developed a unique brand image in the competitive market by
focusing of on valuable services and unique service range to the consumers. The premium
service range for the company has developed a competitive position and effective demand within
the market. The company focuses on delivering high value to consumers through effectively
providing services as per their needs and expectations. However, the range of services is high
and thus the company has developed a premium brand image within the market. Consumers
associate the brand with high priced service range and products range as well.
Brand response
The brand response for Virgin Atlantic is effective and well defined. The service range
for premium consumers is effective however the demand for low cost carrier is facing the issues
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Illustration 4: Growth analysis of Virgin Atlantic

in establishing effective service demand within the market. Consumers are facing effective issues
while creating high market demand and sales within the economy. The gap between demand and
supply is high which has resulted in enhancing cost factors for business.
Brand relationship
This dimension focuses on analysing the emotional attachment of the business units and
consumers in order to enhance market sales and demands. The attachment of the consumer with
products range and services helps in defining an effective brand relationship for the companies.
According to Sheth 2011, urge to buy the product again reflects a positive brand relationship for
the company. Virgin Atlantic has developed effective brand relationship for premium range
consumers however and for low cost consumers developing brand relations is a challenge.
On the basis of above analysis it can be effectively analysed that the business units has
effective and well developed means of working within the market. The company has created an
effective brand image within the economy. The major challenges faced by the business unit
includes: Changing consumer needs: Virgin Atlantic offers a wide range of services within the
market for both upper class and middle class. Current market competition has forced the
company to offer low cost carrier services. However, it is a challenge for the business to
develop favourable consumer perception for low cost services as the present perception
associate cost with quality and safety.
 Target market analysis : Fast changing needs for low cost carriers has challenged the
company to find out the right targeting strategy. Its present targeting strategy was
differentiated targeting for premium consumers however now company will need to focus
on mass targeting in order to maximize sales. Competitive strategies: The company has developed an effective brand image for
offering quality, innovative and premium services. Developing positive perception for
low cost services demands effective consumers' involvement and strategic analysis.
 Communication strategies: Developing competitive communication strategies for the
business to reach maximum audience will demand high investment in terms of cost and
time (MacInnis, 2011). Focusing on online marketing measures and developing effective
strategies fro the same will be demanded to create an effective brand awareness.
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TASK 2
Communication Objectives
Virgin Atlantic Airways services Ltd are is the established company helping the travellers
to move through Airbus and boing wide body aircraft. In order to increase the customer base,
there are few communication objectives set by the organisation complying with the SMART
model.
Specific Virgin Atlantic destinations of routes and destinations are confined to tarns-
Atlantic and pacific region (Balmer, 2013). It aims to widen the customer base
by providing services by starting flights in European countries.
Measurable Using different channels and approaches, Airlines targets to bring increment of
5 lakhs passengers in the coming year.
Assignable A group of team is assigned having expertise in their field process the objective
such as by using both the conventional and modern approaches in the form of
direct selling or digital marketing.
Realistic The specified target is achieved with the systematic and structured planning
processed in order to reach the maximum number of people in the market (Li
and Du, 2011).
Time frame To achieve the set target, a particular time frame is decided under which the
short term and long term objectives are achieved. Such as for the above goal.
Airlines has mentioned the time duration of 12 months.
With reference to the above SMART objectives there are some goals determined by the
Airlines groups:
 Brand Recognition
Increasing the domain of working of the Airlines to the European market, increases the
brand awareness to the wider stream of people.
 Increment in sales
Airlines caters to bring expansion in sales of the products and services offered by it. Through
different modes of persuasive marketing, objective is to attract customers towards the company
(Kotler, 2011).
 Increase the domain of working
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Virgin Atlantic, headquartered at Crawley, UK is the recognized airlines making their patrons
reach 31 destinations through number of routes. Having the profound team of employees and
management, Airlines are focussing on increasing the working of base of organisation and
consolidate large number of customers with it. Hence, a plan is prepared by inculcating different
components to widen the European market and have a good hold over it.
 Driving brand switching
On of the crucial communication objective of Airlines is to switch the potential
customers from the other modes of transports and rival companies towards the Virgin Atlantic.
Interacting with the existing customers and targeted customers leads to the increase in users.
TASK 3
New strategic direction for Virgin Brand
A communication strategy is prepared by the organisation Virgin Atlantic to provide the
direction to the plan prepared to increase the customer base (Rice and Atkin, 2012).
Fundamentally there are two strategies used by the company that are STP(Segmentation,
targeting and positioning) and 3P's of communication that are push, pull and profiles.
STP STRATEGY
Segmentation
In order of leverage the benefits of different factors, whole market is segmented into
sections. This way is processed to pursue the plans in the more effective manner. With different
sections, respective strategies and plans are prepared to address them properly and avail the
opportunities.
Targeting
After segmentation on the basis of characteristics and specifications, there markets are
targets. On the basis of internal and external analysis performed, there are three target market
decided by the airlines (Kumar, 2010). Three types of segmentation are done by the Airlines that
are geographic specifying European market, Demographic specifying people belonging to the
age group of 32-54 and psycho-graphic specifying the people having more tendency to move.
 European Marketing
The market is decided to due the presence of high growth and development opportunities.
The economic stable condition enable the people to have good disposable income to move from
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one place to the other using this mode of transport. Further, there are many global cities located
in this regions having high amount of traffic to and fro to the different corners of the world.
 Young people
Next target market is of people belonging to the age group of 32-54. These people have
significant amount of disposable income to move across the boundaries for official trips and
informal tours (Sheth, 2011).
 Festive season sales
At the time of occasions or any international events, peoples travelling get escalated.
With the regard to leverage this movement, Airlines has specific communication plan to reach
people.
Positioning
The above decided targeted customers are reached through the disposal of quality
products and services from the part of virgin Atlantic (Esper and et.al, 2010). It aims t offers the
highly personalised and thoughtful services to satisfy their customers at the utmost level.
Push, pull and profile
Pull With this strategy, organisation caters to increase the customer base
through lucrative sales promotion measures, adopting different forms of
advertising including both conventional methods and modern marketing.
Push It refers to retain the existing customers through maintaining good
connection with them. It is processed through direct selling, direct
marketing via mails and messages and demonstration of specification of
production on different platforms.
Profile In this method, organisation makes itself distinct from its competitors
through methods such as sponsorship, enhancing public relations and
leveraging digital marketing.
TASK 4
Communication activities used by Virgin Atlantic
With the aim to widen the stream of customers, different communication activities are
adopted by the Virgin Atlantic's to target the diverse people.
Direct campaigning
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In this type of method, employees of Virgin Airlines contact with the existing customers
and potential customers to communicate them different types of products and services offered by
the organisation (De Vries, Gensler and Leeflang, 2012). Through this direct campaigning also
known as direct selling, employees seek opinions and views of customer with respect to flaws,
advancements and improvements. This enables the organisation to bring improvement in the
services extended by the organisation.
Advertisements
In order to showcase the company's offerings, different platforms are used by Virgin
Airlines to post their advertisements. Both print media and audio channels are well utilised by
them. Packages, schemes, offers and rates are posted on the magazines and newspapers to
communicate the current rates to their customers.
Internet
With the advancements of technology, organisation are catering towards the process of
availing benefits of utilizing internet and improving their services. At present a lucrative method
is used by the company such as digital marketing. In this method, more and more traffic is
generated towards the websites through different ways such as search engine optimization, paid
search, and other related (Jean, Sinkovics and Kim, 2010).
Social media marketing
Social media at present is used by the large number of people to interact with each other.
Virgin Atlantics are reaching people through using different social media platforms such as
Facebook, twitter and LinkedIn. At these places' organisation posts the information about the
products and services of the Airlines. Along with this information about offers and schemes are
present at their pages and portals. This enhances the connectivity and networking between
producers and customers.
Public relations
Improving the relational constructs with different associated components of the
organisation such as their customer, suppliers, trading partners, terminals and other airlines
improves the efficiency of working along with increasing the customer base (Aral, Dellarocas
and Godes, 2013).
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TASK 4 a
Scheduling of communication and tools and media
Communication
Method
Sources Time Period
Direct
Campaigning
Virgin Atlantic's official websites, Telephonic
Conversations and personal employee to client's
meetings.
Around the year
Advertisements Company's official magazines, government reports,
Newspapers such as Economic Times, the guardian,
News channels such as BBC.
In the peak months
Between October to
March.
Online Through search engine optimization and pay per clicks
on the high traffic websites (MacInnis, 2011).
Around the year
Social Media
marketing
On networking websites such as Facebook and twitter
and professional sites such as LinkedIn.
Around the year
Public relations Direct conversations, through media, press
conferences, sponsorships and other affiliations.
Around the year
Communication Method Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
Direct Campaigning
Advertisements
Online
Social Media marketing
Public relations
TASK 5
Communication Budget
Virgin Atlantic with turnover of around £m 2928, it invests significant amount on the
marketing strategies that is around 21 million pounds. In that amount of investment, around 30 %
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ratio is attributed to the digital and online marketing with several subsections. Rest was further,
subdivided among the conventional methods of marketing along with the direct campaigning.
 In the process of utilizing the virtual platform, online marketing plays the crucial role in
gathering traffic from the around the globe using this technology. It accounts for about
10% of the marketing budget (Bill and Chan, 2010). It is done through banner ads, re-
marketing and other means.
 Search engine optimization that is attracting traffic towards the websites and increase the
working area. Another tool coupled with it is search engine maximization both of which
has the dominance over the company's spending for its investment in marketing strategies
(Kumar, 2010). It accounts for about 14 % of total budget.
 Further, another lucrative means is social media which demands frequent creativity and
innovation in its methods to reach people. For that Virgin Atlantic invest for about 2% in
it.
 Other areas of investments where Virgin Atlantic has puts its money are email marketing,
mobile marketing. In these methods employees of the organisation get in link with the
customers through emails and short message services in which information about
products and services are circulated to the customers.
 Apart from these are the methods such as direct campaigning and direct selling which
attributes to the significant amount of customer gathering to the organisation.
Marketing Activity Budget (In £)
Online marketing (banner ads, re-marketing and other means) 36000 per month
Search Engine Optimization 3500 per month
Social media campaign 12000 per month
Email marketing 1800 per month
Mobile marketing 3700 per month
Direct campaigning and direct selling 14000 per month
Total 7,10,000 per month
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TASK 6
Communication Evaluation
After the preparation of the communication plan, it is evaluated on different parameters
to check its constancy and its applicability as per the competency with the objectives and goals
decided. For the purpose, different methods are used to evaluate the plan on the quantitative and
qualitative basis. Following are different attributes, value of which decides the impact of the
communication plan used by the selected organisation Virgin Atlantic.
Sales growth
Through this quantitative parameter, efficacy of communication plan is evaluated. It is
done through checking quarterly revenue generation details and comparing them with the
previous ones (Adolphsen, 2010).
Demand analysis
It is the most effective way to assess the current situation of the company's growth along
with the applicability of the strategies build by the management in different aspects of the
working. In this method, demand of the consumers is compared on monthly basis such as minute
differences can be assessed.
Competitive positioning
Along with internal analysis, it is imperative to make external and competitive analysis.
In this process position of company's is analysed with comparison to its rivals. It is evaluated
through different ways such as ratings released by the different organisations for many
specifications and features (Sheth, 2011).
Profitability growth
Communication plan is prepared to enhance the profitability and productivity of the
organisation (Virgin Atlantic, 2016). Virgin Atlantic's profitability is evaluated to check the
success rate of plan. It is checked from financial statement analysis.
CONCLUSION
Marketing communication framework is the structured and planned way to increase
networking and connectivity by the organisation to the customers to enhance their customer base
and profitability. In this report leading Airlines, Virgin Atlantic are taken into account. Throwing
light on different components, it can be articulated that it is lucratively leveraging the different
tools and techniques of marketing and by inculcating several elements. It has been figured out
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that it is investing around 21 million pounds on marketing in spends differently on different ways
such as search engine optimization, pay per click and other related.
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REFERENCES
Books and Journals
Adolphsen, M., 2010. Branding in election campaigns: Just a buzzword or a new quality of
political communication. Politische Kommunikation Heute—Beiträge Des 5.
Düsseldorfer Forums Politische Kommunikation. pp.29-46.
Aral, S., Dellarocas, C. and Godes, D., 2013. Introduction to the special issue-social media and
business transformation: A framework for research. Information Systems Research. 24(1).
pp.3-13.
Balmer, J. M., 2013. Scrutinizing and explicating corporate image, corporate identity, corporate
communications, corporate reputation, corporate brands and corporate marketing.
Contemplating Corporate Marketing, Identity and Communication. 3.
Bill Xu, J. and Chan, A., 2010. A conceptual framework of hotel experience and customer-based
brand equity: Some research questions and implications. International Journal of
Contemporary Hospitality Management. 22(2). pp.174-193.
Cheung, C. M. and Thadani, D. R., 2012. The impact of electronic word-of-mouth
communication: A literature analysis and integrative model. Decision Support Systems.
54(1). pp.461-470.
Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.
De Vries, L., Gensler, S. and Leeflang, P. S., 2012. Popularity of brand posts on brand fan pages:
An investigation of the effects of social media marketing.Journal of Interactive
Marketing. 26(2). pp.83-91.
Esper, T. L. and et.al., 2010. Demand and supply integration: a conceptual framework of value
creation through knowledge management. Journal of the Academy of marketing Science.
38(1). pp.5-18.
Jean, R. J. B., Sinkovics, R. R. and Kim, D., 2010. Drivers and performance outcomes of
relationship learning for suppliers in cross-border customer-supplier relationships: The
role of communication culture. Journal of International Marketing. 18(1). pp.63-85.
Kitchen, P. J. and Burgmann, I., 2010. Integrated marketing communication. John Wiley &
Sons, Ltd.
Kotler, P., 2011. Marketing insights from A to Z: 80 concepts every manager needs to know.
John Wiley & Sons.
Kumar, V., 2010. A customer lifetime value-based approach to marketing in the multichannel,
multimedia retailing environment. Journal of Interactive Marketing. 24(2). pp.71-85.
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Li, F. and Du, T. C., 2011. Who is talking? An ontology-based opinion leader identification
framework for word-of-mouth marketing in online social blogs. Decision Support
Systems. 51(1). pp.190-197.
MacInnis, D. J., 2011. A framework for conceptual contributions in marketing.Journal of
Marketing. 75(4). pp.136-154.
Rice, R. E. and Atkin, C. K., 2012. Public communication campaigns. Sage.
Sheth, J. N., 2011. Impact of emerging markets on marketing: Rethinking existing perspectives
and practices. Journal of Marketing. 75(4). pp.166-182.
Zeithaml, V. A., Bitner, M. J. and Gremler, D. D., 2010. Services marketing strategy. John Wiley
& Sons, Ltd.
Online
Virgin Atlantic. 2016. [Online]. Available through:<http://www.virgin-atlantic.com/us/en.html>.
[Accessed on 14th March 2016].
Virgin Atlantic Airways – Company Overview. 2016. [Online]. Available
through:<http://www.virgin-atlantic.com/us/en.html>. [Accessed on 14th March 2016].
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APPENDIX
1. Internal factors
The internal analysis of the company will be carried out by applying 5M framework:
5M FACTORS
Manpower Virgin Atlantic has managed and maintained a team of well trained and
skilled employees. The pilots, ground staff and supportive staff of the
company are qualified and trained.
Medium The organization has developed favourable environment such as airport,
lightings and well structured infrastructural facilities for carrying out the
operations (Kotler, 2011).
Machinery The aircraft, machinery and materials of Virgin Atlantic are advanced,
well designed and automated which has helped in delivering positive
results within the market.
Methods Code of conduct, operations of the business and legislative framework
are well managed and maintained by the company. It works abiding all
legal requirements in order to develop a competitive market image
(Balmer, 2013).
Management Well structured business operations and effective organizational policies
have helped the business in attaining effective and favourable results for
the company.
2. External factors
Political Economic Technological
Political instability and
reforms have direct impact on
business operations, cost
factors and route planning for
the company hence; the
company keeps a close check
Economic factors such as
population, rate, growth rate,
GDP, Inflation etc. impact
business opportunities.
The company adopts advance
and updated technology in
order to maintain a competitive
edge in the market (Cheung
and Thadani, 2012).
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on political factors
(Christopher, Payne and
Ballantyne, 2013).
Social/cultural Environmental Legal
Consumer needs and demands
are closely monitored and
evaluated in order to develop
and maintain competitive
position within the market
The company has adopted
favourable environmental
policies regarding CO2
emission control, controlling
noise pollution factors etc
(Kitchen and Burgmann,
2010).
Company abides legal and
legislative frameworks of
different companies in order to
ensure effective business
operations. For example;
permission for airport usage,
safety and security policies,
employment policies etc.
3. Competitive analysis
In order to analyse the competitive position of the company, Porter 5 force analysis will
be used for the study.
FACTORS DOMINANCE ANALYSIS
Bargaining power of
buyer
Moderate Virgin Atlantic has developed favourable brand image
and offers high level of services within the market
(Rice and Atkin, 2012)
Bargaining power of
Supplier
Moderate Suppliers of fuel and resources are low hence; they
have subsequent power in enhancing cost of operations
of the company (Zeithaml, Bitner and Gremler, 2010)
Threat of substitute High Companies like British Airways, Easy jet, Emirates etc.
are positing direct and tough competition to Virgin
Atlantic. Slight changes in their competitive strategies
directly impact the business prospect of the company.
Threat of new
entrant
Low Cost of investment and level of competition set by the
company is highly ineffective for different business
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