Marketing of Services - Virgin Atlantic

EXTENDED PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKS.............................................................................................................................................1
Market size and structure........................................................................................................2
Customers segment.................................................................................................................2
What makes the company different ?.....................................................................................2
Supply chain ..........................................................................................................................2
Pricing.....................................................................................................................................2
Brand values ..........................................................................................................................3
Marketing ..............................................................................................................................3
Human Resources...................................................................................................................4
Comparison of Virgin Atlantic and their competitors............................................................4
Porter five forces....................................................................................................................4
Ways in which Company has changed its position last few years.........................................5
Recommendations............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDICES...............................................................................................................................10

INTRODUCTION
Virgin Atlantic is a British airline having its head office in Crawley which is in United
Kingdom. This company established in the year of 1984 (Merkert and Morrell, 2012). This was
originally created by its co- founders Randolph and Alan Hellary for flying between London and
the Falkland Island at the beginning. It is the British second largest long haul global airline
(Akaka and Alden, 2010). The corporation has approximately 8,875 workers. The company has
code share agreements with different ventures like Delta Air Lines, Jet Airways, Air China, etc.
The present report is explaining how the firm is gaining competitive advantages.
TASKS
Virgin Atlantic's is a well known British airlines which have operations in more than 29
destinations. It has three main operating bases which are Gatwick, Heathrow, Manchester. The
company is operating since last 33 years successfully (Zhang, Shen and Wu, 2011). It has many
competitors, out of which British Airways possess biggest threat to the company ability to
perform. It is also a major company which have more resources than Virgin airlines (Hesterly
and Barney, 2010). The competition for organisation is very tough in UK that is why it focuses
on other countries to ears profits, such as USA.
Virgin Atlantic is currently serving to more than 29 destinations which are profit making
routes for company. It is in the mode of expansion which will allow firm in enhancing its market
share and diversifying risk by reducing dependency on UK market which is mostly controlled by
British Airways or Easy Jet (Sirmon and et. al., 2011). It positions itself in a very different
manner which enables it in attracting customers and increasing productivity. The company has a
tag-line for its positioning scheme, “It refers itself to be a premium airline which is under the
budget of common man” (Chiou and et. al., 2011). Also, they focus on customer experience as
well as hospitality as to attract customers towards its services. They aim to gain competitive
advantage via using different methods as well as strategies. Competitive advantages can be
simply defined as an advantage over the competitors which is achieved by offering customers
unique products in comparison to their challengers . This can be in the form of best quality
services, having greater value which can be provided by means of minimum pricing, giving
greater benefits, etc.
The present status or market positioning of Virgin Atlantic are listed below:
1

Market size and structure
The company has an around 5.44 million customers and approx 8,875 number of
employees in the year of 2016. This reflects that it has a larger size in terms of their workers as
well as consumers (Sirmon and et. al., 2011). But the net income of the venture decreases from
2.78 pound billion (in 2005) to 2. 69 pounds (in 2006). The main competitor of Virgin Atlantic
are Emirates, British Airways, Jet Airways, British Midland, etc. (Aaker and Joachimsthaler,
2012). But the company is on a growing stage. They are developing their infrastructure, services
quality, etc. and attempting to provide best services to their customers. Virgin Atlantic is
enjoying a high-level brand image due to the personal sincerity of main owner of the corporation
in practices of brand promotions (The Five Forces, 2017).
Customers segment
There are commonly three segments of people: some are from a rich background, some
of them are from middle sectors and some are from poor backgrounds (Akaka and Alden, 2010).
The company mainly targets to those section of the society that are average in terms of financial
background. So, as a result they cover both the middle one as well as the richer section of the
society.
What makes the company different ?
Venture is using several methodologies for making themselves unique among all other
corporations (O’Connell, 2011). This can be achieved by gaining competitive advantages. They
are using following methodologies for gaining the competitive advantages :
Supply chain
A supply chain is a system of people, data, organizations and resources included in
moving a service or product from supplier to consumers. Virgin Atlantic has its own private area
for waiting the passengers (Hesterl and Barney, 2010).
Pricing
The corporation is providing the cheapest services to their consumers. There are various
pricing strategies can be used by the corporation that are listed below:
 Price skimming: price skimming of can be performed in the market by providing
products or services at a higher price on the basis of minimum volume (Barney, 2012).
2