Virgin Group Marketing Strategy

This report analyzes the marketing strategy of the Virgin Group, a multinational conglomerate. It explores key marketing concepts, identifies successful strategies and programs, and examines the relationship between marketing and other functional areas. The report concludes with recommendations for enhancing the Virgin Group's marketing strategy and overall performance.

VIRGIN GROUP- MARKETING
STRATEGY

Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. MAIN BODY...............................................................................................................................1
1. Explaining marketing concepts and terminology applicable to The Virgin group.................1
2. Identifying marketing strategies and programs helped firm in accomplishing objectives......4
3. Marketing concept and principles ..........................................................................................6
4. Relationship of marketing function to other functional areas ................................................9
3. CONCLUSION AND RECOMMENDATIONS......................................................................10
NOTES:..........................................................................................................................................12
REFERENCES..............................................................................................................................14
APPENDIX (ANNOTATIONS)...................................................................................................16

1. INTRODUCTION
The marketing strategies are crucial to be formed for increasing brand awareness among
people. The rationale behind presenting report is to provide importance of marketing strategies in
business to increase customer's base and more quantum of profits. Present report deals with
Virgin Group which is multinational conglomerate will be taken for analysing market strategy.
Marketing concepts along with marketing strategies will be discussed with reference to
company. Moreover, relationships of the marketing functions to various functional areas cross-
functional relationship of departments of Virgin Group will be analysed. Lastly conclusion will
be drawn from the report and recommendations would be provided so that business may be able
to enhance its marketing strategy and overall performance.
2. MAIN BODY
1. Explaining marketing concepts and terminology applicable to The Virgin group
The marketing concept is one of the important element as it helps firm in knowing needs
and requirements of customer and promoting brand image of company in an effective way. By
assessing needs, company should make decisions for satisfying customers in a better manner.
This will be beneficial for firm for accomplishing competitive advantage in market where it
operates. Virgin Group is a British multinational conglomerate organisation having its various
subsidiaries under one brand name. It was founded by Sir Richard Branson and Nik Powell and
firm has become a pioneer in the UK. The marketing concepts are of utmost crucial for business
and is enumerated below-
Branding
Brand Identity-
The brand identity is the identity which Virgin Group presents to the public in effective
manner for recognising among public. Virgin Group has more than 100 of subsidiaries which
operates under various industries and as a result, brand identity of business is recognised to
people (The importance of brand and how to build one | Virgin. 2018).
Brand image-
It is an impression drawn in customer's mind which is developed over time mainly
through regular advertising campaigns that are being initiated by company. Great brands have
1

different approaches making them distinct from others. Virgin Group has a challenging brand
image for providing something better and different all times, this leads to enhancement of
marketing objectives.
Brand Strategy-
The brand strategy is effectively connected to the customer's needs, emotions and
competitive environments which makes business of Virgin group successful.
Sub brands, Brand extension and stretches-
The brand stretching or extension is type of marketing strategy in which organisation
marketing a product with reference to well-developed image using the same brand name in
different product category (Macarthy, 2018).
Product Strategy of Virgin Group-
Level of Products
There are three level of products which are as follows-
Core Product-
It is an intangible product which cannot be touched as it creates value for the customers.
This is because benefit is provided by Virgin Group which creates value for its consumers.
Actual Product-
It is tangible in nature as it is real product having physical characteristics and can be
touched by people which is provided by Virgin Group.
Augmented Product-
The augmented product is non-physical part of product which means that it has added
values which may or may not be availed by paying premium. It includes Virgin Start-up loans
adding value to entrepreneurs for starting business operations. (Angell and Kraemer, 2017).
Product and Service Classifications-
The classifications of product and service of Virgin Group are as follows-
Convenience goods-
2

The convenience goods are of daily use and not much thought is provided to it and
customers buys the same. Virgin Money is a perfect example providing convenience services.
Shopping goods-
It is affected by buying decisions of people influenced by price, quality and value of
product and successful marketing places goods in a better way attaining competitive advantage.
It includes non-daily goods.
Speciality goods-
These type of goods are highly-centric and promotes strong brand identities resulting in
loyal customers and they want quality products even at high price. It includes luxurious goods.
Unsought goods-
The unsought goods are those in which customers don't compel to buy and they usually
buy when the needs arise (Dye. 2018).
Individual Product and Service Decisions-
It has five stages which are listed below-
Product Attributes-
The attributes of product start with basic benefits that product will offer to customers.
Virgin Group has subsidiaries such as Virgin Care, Virgin Hotels, Virgin Megastores and other
subsidiaries having attributed to particular needs of customers.
Branding-
It provides significant identity such as name, sign, symbol, design and related
combinations which attracts people not by the product only but brand itself. Virgin Group have
different brand identities which are under same brand names.
Packaging-
The packaging involves lucrative designing and producing wrapper for product. It attracts
people to buy if packaging looks attractive. Virgin Megastores is one which has lucrative
packaging of products (Nagle and Müller, 2017).
Labelling-
3

These are mostly products in which labelling is required so that people may be able to
analyse useful information like contents, how to use etc.
Product Support services-
This include some form of customer service and it contributes to augmented product as
value added services are provided (Wensley, 2016).
Product development and innovation, NPD-
The NPD (New Product Development) takes into consideration preferences of customers
for benefits over specifications and features by conducting research in effective manner. Virgin
Group takes into account distinct needs of people and prepare products accordingly.
Promotional Strategy-
The promotional strategy is used for attracting customers in a better manner through
applying better strategies (Key and Czaplewski, 2017). Virgin Group provides effective
discounts on various products on advanced booking on Virgin Atlantic, Virgin Hotels and
favourable deals are provided to people in effective manner which leads to incentive to
customers. Website of firm exposes products and services to people leading to have better
promotional strategy. Along with it, social media marketing is also being used for attaining
attention of consumers on worldwide basis.
2. Identifying marketing strategies and programs helped firm in accomplishing objectives
Mission-
The power of purpose in business is mission statement of Virgin Group. Humans are
evolving, firm needs to have purpose and want to make lives of people different.
Vision-
Firm aim to deliver long-term capital appreciation through investment in various sectors.
Focusing on Travel & Leisure, Telecoms & Media, Music & Entertainment, Financial Services
and Health & Wellness.
Objectives-
 To initiate healthy core sectors by attainment of growth
4

 To make investment by experience and understanding of consumer behaviour, marketing
and brands
 To constantly offer quality goods and services to people by reaching to more markets
worldwide.
Overall Marketing strategy-
The overall marketing strategy of Virgin Group is focused on providing effective services
and products to people so that they may be able to generate good quantum of profits in the best
possible manner (Our Strategy | Virgin. 2018). It is required that business should provide better
quality products at competitive prices in order to attain desired revenue ahead of competitors.
Failure to do which will lend company to lose its customers which will lead to reduction in
market share up to a major extent.
It can be analysed that Apple, giant in technology sector has effective marketing strategy
as to produce goods of topmost quality and do not sell them off at a lower cost. This is done
because firm offers goods to earn something and reducing commodities at low price will only be
fruitful in short-term and not being useful for long-term. The firm will automatically reach to
bottom and as a result, profits will get deteriorated. Virgin Group should also follow similar
marketing strategy in order to earn more profits and attain organisational objectives.
The four objectives that can be analysed from the report are as follows-
Proper market research-
The major brands do not always succeed in all the new concepts and products launched
by them. This is evident from the fact that Virgin Group and Apple both have launched potential
ideas for their sub-brands but only few of them succeeded. This entails that proper market
research needs to be conducted in order to attain profits in effective manner (Hill, 2017). By
scrutinising demands and preferences of customers, products are easily formed and chances of
failure consecutively decreases. The branding team of Virgin Group needs to recognise the same
and provide products suiting customer's demand. This is exactly done by Apple to make iPhone
successful in countries.
Knowing how to differentiate-
5

The differentiation strategy implies that what are the different features offered by one
firm in the industry which makes it different from another. Differentiation is required so that
better avenues may be generated in effectual manner. Virgin Group promises to impart
impeccable consumer experiences whether be it in any sector of company. This has led to make
unique value and identity of the brand which is focused by company for making it shine in all its
core business sectors. Challenging, innovating products leads to attainment of goals in a better
manner.
Building strategy within correct times-
The strategy never remains same all the time and changes are required to be initiated in
order to raise brand awareness among people (Hodgson. 2018). Till 1990s, Virgin Group relied
on making promotions on headlines in papers and foot traffic but the scenario changed as years
passed by. Now social media in marketing is more trendy in comparison to advertisements on
TV and direct email. On the other hand, Apple also uses modern tool for marketing which
signifies clearly that firm needs to adapt to correct strategies in accordance to time for tasting
success of its brand.
Keeping products simple-
The products are required to be provide to the customers so that they may avail goods and
services. It can be analysed that products should be kept simpler in order to reduce
overwhelming among others (Hunt, 2018). Apple understands the need for technology
consumers and overwhelm attitude leads to create confusion in forming marketing mix. Apple
reduce consumer confusion by simplifying their web sales and use direct words for effectively
meeting products to customers. Hence, simplicity is useful for Virgin Group in effective manner.
Ethical considerations and objectives
It includes that information supplied in firm from customers should be used only by top
management for providing value to customers and other stakeholders. Moreover, such
information should be kept confidential and nobody should be within the reach of the same.
3. Marketing concept and principles
Marketing concept is the approach that implement to satisfy customer wants, raising sales
and increase profits and route of competition. In order to that marketing mix, segmentation,
6

targeting and positioning that includes in marketing principles (Morgan and et.al., 2018).
Marketing mix has been determined as set of marketing tool utilize for achieve marketing
objectives.
7P's of marketing mix:
7P's of marketing mix stands for product, price, place, promotion, process, people and
physical evidences that helps in accomplish marketing objectives (Loo, P. T. and Leung, R.,
2018).
Product:
Virgin group is the British Multinational venture capital which operating in different
industry. This group has many ranges of products such as commercial aviation, travel, rail
transport, commercial electronics etc. For example, in the airline business, Virgin Atlantic is the
major airlines companies serving international destination.
Price:
Price refers to amount customer has to pay and exchange for goods and services of Virgin
group. Price of product set on the basis of production cost. It is interrogated with distribution,
packaging, design and branding (Luo, Roach and Jiratchot, 2015). For instance, Virgin airline
company is provided high price services than economy flights. Company has appropriated
market penetration strategies for setting its prices.
Place:
Virgin group has introduced that campaign of marketing at wide level. Product is planned
to be introduced at the same time in different leading locations of nation such as Sydney, Perth
etc. Still. The purpose of introducing of good in starting form the situation of small towns and
cities are not taken into consideration (Marketing Mix of Virgin Group, 2018). The decision of
locations depend on offering of type of product and services.
Promotion:
Virgin group has understood incorporated marketing interaction channels such as print
media, electronic, internet, direct merchandising etc. for purpose of promoting products across
the world. Organization is understood market penetration strategy that focus on over publicity
7

which relatively less. Virgin company is highly focus on social media marketing of their product
and services.
People:
People are more important for business. Therefore, Virgin group make sure that strong
engagement with their employees that helps in success of business. Worker are providing
products and services to customer, contributing in problem solving, increasing sales of business.
So that, company provide the effective training and development for impressive execution in the
business (Mohammad, 2015).
8
Illustration 1: Marketing Mix
Source: (Marketing Mix of Virgin Group, 2018)

Process:
Process of unit of every day tasks, works and activities that allows people to utilize
services successfully. Virgin group utilise services with minimised effort and complications. The
purpose is to avoid boredom and ensure that consumers are actively involved with services.
Physical Evidence:
Physical evidence enclose everything consumer can have evidence of existence of
business. For example, Virgin Atlantic present and serve 29 destinations. The logo of Virgin
group made in little red, so that it increase customer attraction.
Segmentation, target and positioning:
Virgin group determine recession with particular needs and mature markets to discover
new customers, present more directs and impressive marketing information. It includes different
types of segment such as demographic, psycho-graphic, behaviour, lifestyle etc. Group have
different subsidiaries companies such as airlines, travel so on (Mohammad, 2015). In this
context, Virgin airline target on business travellers whereas Virgin media targeted all types of
customers in every segmentation. Because of, every consumer use media or telecom services. So
that, they are easily attracted with company.
4. Relationship of marketing function to other functional areas
Marketing functions are more essential for every organization. These functions are
interrelated with other functional areas such as human resource, finance, operation etc.
Human resource department: Marketing department of Virgin group require to work
nearly with the human resource divisions to ensure that right skill and staffing level in place to
research and develop ideas for new product, meet production targets and make compulsive sales
team (Kozlenkova and et.al., 2015). Therefore, HR department make sure that appropriate hiring
and giving training for purpose of marketing in the business. With the help of it, Virgin group
easily satisfy with the customer requirement. .
Finance department: Marketing department need to work with finance division of
Virgin group. They make sure that allot equal budget to meet requirements for research,
promotion and distribution of products for customer satisfaction (Human, Bick and Singh, 2016).
This department has responsible for brief to ensure that financial capacities helps in operates of
9

entire company. Marketing department is overspending is profitable possibilities emerge over the
year. They also focus on sales volume and increasing market share. On other hand, finance
division directs on cash flow, covering cost and paid back investment as soon as possible.
Marketing department need to funds for promoting of product and services effectively as
compare to their competitors in the marketplace. With the help of it, Virgin group easily satisfy
with the customer needs.
Production department: Marketing section of Virgin group work closely with
production department to ensure that equal to satisfy current and future needs of consumers by
planning of research and development (Mohammad, 2015). Production section also make sure
that order volume that are made by marketing for meeting within time schedule needed for
deliver. With the help of it, Virgin group selling the effective product and services for easily
satisfy with the customer needs. It is important to that fulfil to customer demand and
requirements, so that production department make product according to demand and needs of
consumers. The relation among design of fresh goods and manufacturer facilities is based on
extended market study on basis of approximation of demand for new goods, time period and
space distribution. Marketing department of Virgin group provide information to production
department regarding needs and requirements of customers so that products can be developed
accordingly and needs of customers can be satisfied in an effective manner.
Therefore, marketing department has interrelated with all other divisions that helps in
increasing sales, improve execution and productivity of firm (Kozlenkova and et.al., 2015). So
that, marketing department needs to work closely and effectively with the other department of
Virgin group. Company easily achieving goals and objectives by interrelationship between the
marketing department and other functional areas.
3. CONCLUSION AND RECOMMENDATIONS
Hereby it can be concluded that marketing objectives are required to be attained by firm
in order to maximise sales and accomplish desired growth in the best manner possible. It is
required that proper marketing strategies should be implemented so that business may be able to
accomplish objectives in a better manner. Virgin Group has expanded from one business venture
to more than 100 sectors and having operational activities in 35 countries showing strength of
company. Moreover, it has acquired various companies and have staked in it. The marketing
10

strategies, concepts explained provide clarity that business may be able to attain efficiencies for
making desired amount of growth in a better manner.
The success of Group is attributed to its unique approach and creating value in the market
by offering quality products has imparted with globally recognised brand name. The marketing
strategy employed by it provides benefits to it in form of increased revenue and brand awareness
in the market among people. Marketing mix consisting of product, place, price and promotion
are also centred to accomplishment of marketing objectives in a better manner. In relation to this,
recommendations can be provided to firm for increasing its overall performance which are listed
below-
 Management should centralise its role for taking full control over its resources and instil
people some sense of responsibility in effective manner.
 External and internal environment should be scrutinised by rethinking planning process
for accelerating operations.
 Reviewing social, political and related descriptions which affect running of business
either directly or indirectly. The variables such as customer's experience, technological
advancement and market sensing are crucial one for the business.
 Bureaucratic channel must be followed as Virgin Group has larger number of operations
in plenty of countries. Centralising management will avoid duplication and overlapping
work with full control over operations.
 Focusing on building customer's experience should be made so that business may be able
to attain more customer base and increasing in loyalty among them.
11

NOTES:
Branding
Brand Identity-
The brand identity leads to attainment of corporate objectives by incorporating visual
logo, key colours and corporate typefaces in the best possible manner.
Brand Strategy-
The brand strategy is long-term plan which is associated with the firm for effectively
building brand and achieving specific goals in the best manner possible.
Sub brands, Brand extension and stretches-
This leads to increase awareness of the brand name and maximises profitability as
offerings from more than one product category in effective manner.
Promotional Strategy-
Advertising is key promotional strategy used by firm. The promotional strategies of
Virgin Group works in accordance to its offerings and target customers for making good
awareness of brand.
Overall Marketing strategy-
The golden rule of marketing being adopted by Virgin Group is to effectively
communicate core values of business in the simplest possible way so that desired marketing
strategy may be attained.
Segmentation, target and positioning:
Companies need targeting customer in each and every segment which is based on income
level, accessible etc. Positioning maps are last component of this procedure that utilise for
offering of competitive advantages.
Human resource department:
It has to equal obligations to market with those to another division. Effective skills and
knowledge to people is the most essential part of marketing of product and services.
Finance department:
12

Finance department of Virgin group prepare budget for marketing department so that all
the promotional activities can be carry out in proper manner and targets of firm can be achieved.
Production department:
Production department make sure that utilise appropriate design and quality of product
for marketing. In order to do that, marketing department set timeline that is reaching capacities
of production division. The interrelationship between marketing and production is the most
important for development of new products.
13

REFERENCES
Books and Journals
Angell, R. L. and Kraemer, J. R., International Business Machines Corp, 2017. Automatically
generating an optimal marketing strategy for improving cross sales and upsales of items.
U.S. Patent 9,685,048.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Human, G., Bick, G. and Singh, A., 2016. Strategic drivers of a network-orientated approach to
the organisation of marketing in business-to-business firm. Management Dynamics:
Journal of the Southern African Institute for Management Scientists. 25(3). pp.33-45.
Hunt, S.D., 2018. Advancing marketing strategy in the marketing discipline and beyond: from
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management. 34(1-2). pp.16-51.
Key, T. M. and Czaplewski, A. J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business horizons. 60(3). pp.325-333.
Kozlenkova, I. V. and et.al., 2015. The role of marketing channels in supply chain
management. Journal of Retailing. 91(4). pp.586-609.
Luo, A., Roach, S. and Jiratchot, C., 2015. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention. Journal of Supply Chain
Management Research and Practice. 9(2). pp.28-36.
Macarthy, A., 2018. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for
Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
Mohammad, H. I., 2015. 7PS marketing mix and retail bank customer satisfaction in northeast
Nigeria. British journal of marketing studies. 3(3). pp.71-88.
Morgan, N. A and et.al., 2018. Research in marketing strategy. Journal of the Academy of
Marketing Science. pp.1-26.
14

Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.
ONLINE
Marketing Mix of Virgin Group, 2018. [ONLINE]. Available through. :
<https://bloomsburybusiness.weebly.com/7ps-marketing-mix.html>.
The importance of brand and how to build one | Virgin. 2018 [Online] Available Through:
<https://www.virgin.com/virgin-unite/entrepreneurship/importance-brand-and-how-build-
one>
Dye. 2018 The Classification of Products in Marketing [Online] Available
Through:<https://yourbusiness.azcentral.com/classification-products-marketing-
16806.html>
Our Strategy | Virgin. 2018 [Online] Available
Through:<https://www.virgin.com/virgingroup/content/our-strategy>
Hodgson. 2018 Quintessentially British Brands: The Virgin experience and how to brand it like
Branson [Online] Available Through:<http://fabrikbrands.com/quintessentially-british-
brands-the-virgin-brand/>
15

APPENDIX (ANNOTATIONS)
Angell, R. L. and Kraemer, J. R. 2017
Hill, T., 2017
16

Human, G., Bick, G. and Singh, A., 2016
Hunt, S.D., 2018
17

Key, T. M. and Czaplewski, A. J., 2017
18

Kozlenkova, I. V. and et.al., 2015
19

Luo, A., Roach, S. and Jiratchot, C., 2015
20

Macarthy, A., 2018
Mohammad, H. I., 2015
21

Morgan, N. A and et.al., 2018
Nagle, T. T. and Müller, G., 2017
22

23

Wensley, R., 2016
24