Digital Marketing Strategy: Virgin Atlantic Case Study Report

This report provides a comprehensive analysis of digital marketing strategies, using Virgin Atlantic as a case study. It begins with an introduction to digital marketing and its impact on UK businesses, followed by an analysis of macro-environmental factors (political, economic, social, technological, legal, and environmental) affecting the airline. The report then critically evaluates the effectiveness of social web platforms for brand building, focusing on Virgin Atlantic's use of Facebook, Twitter, Instagram, and other platforms. A comparison between traditional and digital marketing is presented, outlining the advantages and disadvantages of each approach. The report concludes with recommendations for optimizing digital marketing strategies and enhancing brand awareness and customer engagement, emphasizing the importance of adapting to changing customer trends and leveraging social media for market leadership.

Digital Marketing
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Digital marketing and its impact on UK business..................................................................1
Analysis of macro environmental factors in context to chosen organisation.........................1
CONCLUSION................................................................................................................................3
Task 2...............................................................................................................................................4
Critical evaluation and analysis of effectiveness of social web for brand building:..............4
Task 3...............................................................................................................................................6
Introduction......................................................................................................................................6
Define traditional marketing...................................................................................................6
Advantages........................................................................................................................6
Disadvantages....................................................................................................................7
Define digital marketing.........................................................................................................7
Advantages........................................................................................................................7
Disadvantages....................................................................................................................8
Comparison along with contrast between traditional and digital marketing..........................8
Conclusion and recommendations...................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Digital marketing is defined as the use of internet in order to reach consumers. Along
with this, it is a component of marketing which utilizes online and internet based digital
technologies such as mobile phones, desktop computers & other digital platforms and media to
promote goods and services (Chaffey, 2019). In the present report, Virgin Atlantic is taken into
consideration. It is a British airline that was founded in year 1984 and its head office is in
England. The company has recently launched an application named as “Virgin Atlantic crew
Planlt app. This online application is designed to help cabin crew in providing an outstanding
service to its customers. Digital marketing impact on the UK Business as it avail various benefits
to gain growth and development. The report will cover impact of digital marketing on UK
business and also describes macro environmental factors associated to respective organisation.
TASK 1
Digital marketing and its impact on UK business
Digital marketing is also termed as online marketing, it is an approach which primarily
relies on internet in order to connect with potential and target audience by different digital media
platforms and channels.
In year 2017, the overall expenditure of United Kingdom in advertisement on digital
platforms amounted to 3.6% across various media for means of digital marketing topping at
45.4%. In UK, the internet user rate at present is around 85% and daily internet users is 48.1
million (Mekonnen, 2018). This shows digital marketing impact positively on UK business as it
help them to reach large number of customers within short span of time which in turn leads to
increase in growth and development of UK economy.
Analysis of macro environmental factors in context to chosen organisation
Macro environmental factors influence a company from outside and impact directly on
the performance as well as operations of an organisation (Pinto and Pinto, 2020). The factors are
discuss below in context to chosen organisation:
Political factor: It is about an extent a government intervenes within the economy. It
involve elements such as tax policy, labour law, trade restrictions, labour law etc. It is analysed
that Virgin Atlantic is facing different political challenges because of spread into foreign
1

countries that is Australia and USA. For instance, tariff ad customs imposed by U.S. Government
reduces the number of bookings that it get from U.S. This impact negatively on performance and
profitability of respective organisation in a negative manner. The company is recently launched
a digital marketing campaign known as “Looking for Linda” with an objective to attract large
number of customers by providing exclusive offers, garnering 14000 entries and grow its social
media followers as well. It is important for the company to follow all the government legislations
so that the campaign is implement in a proper manner.
Economical factor: This factor have high influence on how a company operate business
& how profitable it is. It include elements that is inflation rate, interest rate, exchange rate,
disposable income and many more (Hanlon, 2019) . In context to Virgin Atlantic, due to Brexit ,
inflation rate of UK is increases and decline the buying willingness of people living in UK. This
impact negatively on sales of Virgin Atlantic and reduces its profitability and revenue level. It is
determined that this campaign allow company to improve its conditions. Along with this, it also
help in attracting large number of customers so that the conditions is improved in a proper
manner.
Environmental factor: This factor is becoming crucial because of raise in scarcity of
raw materials, operating business ethically, carbon footprints, pollution targets that is set by
government. With reference to Virgin Atlantic, its higher ensure to decline the use of carbon
footprints and it has also started a campaign to save environment as a CSR activity. In addition to
this, it follow all the environmental laws that assist in developing positive brand image and also
save it from any of the penalties charged by government for harming environment. It is analysed
that the this help company to decline the use of carbon footprints and paper advertising as the
digital campaign is take place electronically. In addition to this, decline in use directly contribute
towards the protection of environment and also help in developing image and strengthening
market performance as well.
Legal factor: It is significant for an organisation to follow all the laws proposed by
government such as consumer rights & laws, product safety, health and safety and so on. It is
determined that Virgin Atlantic follow all the laws and legislations so that they can implement
activities without any delays and government penalties as well. In addition to this, GDPR is a
new set or rules and policies that is designed to provide EU citizens more control on their
personal information. Its main objective is to simplify businesses and citizens in European
2

unions that can fully advantageous from digital economy (Saura, Palos-Sanchez and Correia,
2019). This law assist Virgin Atlantic to secure data of its customers and also save their
information in a proper manner. It is important for the higher authorities of Virgin Atlantic to
ensure that all the laws is followed in campaign and its activities did not impact anyone. If such
issue arise then the company is need to give higher penalties and its also affect on its brand
image. Moreover, security of information given by customers should remain confidential and is
not shared to others.
Social factor: It consist of factors such as values, beliefs, opinions and ideologies of
people working as well as associated with the organisation. In addition to this, it is determined
that Virgin Atlantic provide services according to customers requirement and also ensure that
they can make changes that meet with the market demand. In context to its campaign “Looking
for Linda” is associated with the objective to reach large number of people and enhance its
profitability. This is achieved when organisation offer its services according to the requirement
of people considering their values as well.
CONCLUSION
From the above discussion, it has been concluded that digital marketing plays an
important role for an organisation as it hep in reaching large number of target customer which
has positive influence on productivity and profitability of a company. In addition to this, it is
analysed that PESTLE analysis is used by business entities in order to gain knowledge about
macro environmental factors on business operations and performance in an appropriate manner
3

Task 2
Critical evaluation and analysis of effectiveness of social web for brand building:
Social media indicates internet based applications that facilitates thoughts, information
and idea sharing. Social media platforms involve YouTube, linked In, Instagram, Facebook etc.
Business ca utilize these platforms to attract large segment of customers. Social web covers
structures, interfaces and services that are developed to foster social interactions. Virgin Atlantic
is a global firm and hence requires enhanced strategies for market recognition. Various social
media platforms are utilized by an organization for encouraging customer engagement. Firm has
its page on Facebook for fostering its availability in which it shares customer experience and
various offers. Along with it, entity is also available at Twitter and Google+ to align with recent
customer trends. Further, it promotes its services and pinpoints key differentiating factors on
Instagram with the motive of attracting large customer base. Virgin Atlantic also has agency of
socially-led creative that assures process of competitive pitch on social web. Firm creates and
delivers strategies for optimum utilization of social web channels through campaigns and
effective promotional tactics on online platforms. Company is a forward thinking brand and
forecast changing trends to ensure alignment of its marketing strategies with changing customer
trends. Social media promotions is a cost effective and efficient promotional strategy that ensures
high market reachability and increasing customer network for advertising services of an
organization and increasing customer attractiveness and loyalty (Karaağaoğlu and Çiçek, 2019).
Brand can be explained as a symbol, name, term or design that differentiates an
organization from another entities. It is a identity of firm and helps people in recognizing it.
When brand name is legally protected, it is termed as Trademark. Combining one or more
elements, such as, name and symbol, is referred as Brand Identity. Brand identity of Virgin
Atlantic airways involve a larger Union Jack. Its logo is in dark purple colour which is easily
identifiable at the time of take off and landing, along with it, wing-lets are in red. Johnson Banks
by collaborating with in-house design team developed new logo of an organization for enhancing
brand awareness of firm. Brand awareness refers to recognition of brand by customers. Brand
awareness campaigns on social sites are initiated by Virgin Atlantic with the motive of notifying
its brand by visually appealing tactics to encourage customer engagement and brand loyalty.
Brand loyalty signifies commitment of consumers towards brand which can be evaluated by
4

continuous or repetitive purchase by buyers and customer retention. New brand loyalty
programme has been announced by Virgin Atlantic that provides reward opportunities to loyal
customers, that is, frequent flyers of business (Khan and Islam, 2017). Along with it, brand
equity of company is also valuable, which pinpoints, services of firm has high value addition
over others.
Use of social web in Virgin Atlantic ensures increase in its brand awareness because
majority of population are using social websites in present scenario. It enables firm to outreach
potential customer segments and foster activities of brand recognition (Theodoridis and Gkikas,
2019). Social web provides opportunity to business to become a market leader with the process
of encouraging brand loyalty and advocacy. This further helps in generating leads which can be
converted into effective buyers and profitability of firm can be enhanced. Brand loyalty
improvises brand image of company that enables it in efficient achievement of organizational
goals.
Virgin Atlantic focuses more on digital marketing promotions for creating brand
awareness and loyalty, while on the contrary, Express Jet Airlines focuses more on offline
marketing concept. Later is approaching new contract agreements with attendants of flight for
the purpose of expanding its scope and initiating long term extension programs, while former has
designed new brand logo and theme for attracting customers. Objective of Express Jet Airways is
building long term relation with customers and achieving higher profitability as well as
expansion of firm's scope. On the other side, objective of Virgin Atlantic is building a motivated
workplace which leads to enhancement in customer experience as best service will be provided
to them and to become a market leader by expanding brand recognition through aggressive
promotional strategies (Wirth, 2018).
Virgin Atlantic should further optimize its use of social web by ensuring quick resolution
to customer queries and complaints on its online platform. It can also create contests on social
media pages to foster customer engagement. Company can measure or monitors traffics at
different social media channels which will empower firm to focus more on platforms which gain
high visibility and have high chances of lead conversions
5

Task 3
Introduction
The series of actions that utilise online marketing channels for attainment of goals is
referred to as digital marketing strategy. In this case, channels comprises of paid, owned as well
as earned media (Dakouan, Benabdelouahed and Anabir, 2019). The action plan enables within
building and launching online marketing strategies. This report will provide an insight into
traditional along with digital marketing by illustrating key advantages, disadvantages, differences
and similarities among them.
Define traditional marketing
The approach where marketers determine audiences along with place ads where
audiences can hear, see and interact via offline medium like billboards, print ads and television
advertisements. Marketing is more than interacting, brand services and product message.
Basically, it involves coordinated efforts that made by different corporate departments for
creation of multi-tiered sales effort. It is an important aspect for developing business. For an
example, McDonalds makes use print, direct mails, broadcast along with telemarketing for
reaching their potential customers and accomplishing their requirements as per desired standards.
Advantages
They are illustrated below in context of traditional marketing:
 Reuse and recycling is attainable: The online marketing do not need any kind of
physical materials such as pamphlets or posters but the advantage of making use of hard
copies is that advertised materials add up benefits. This can be understood by taking an
instance like posters, fliers, etc. can be re-read as well as reused wherever they are
located. The major asset is that it does not need internet connection.
 Familiar mode of marketing: Traditional marketing is known mode for advertising that
can be used for advertisement for businessmen and older people as they do not require
any other promotional material (Gkarane and et. al, 2019). They will have pamphlets or
fliers and will read asper their comfort zone.
6

 Reach local audience: Traditional marketing can be utilised for making tasks easy
through which it becomes easy for reaching local audiences easily. Radio is best and
quickest way for advertising business.
 Processing of hard copy: Traditional hard copy of marketing is easy to be processed
mentally as well as recalled in future.
Disadvantages
With respect to traditional marketing their limitations are specified beneath:
 Static text: For an instance ad is placed in newspaper for product and if firm run out of
stock then it cannot be updated and interaction with customers is also not probable.
 Expensive method: To post ads as well as distribute pamphlet or flyer, it becomes
important to pay each time for executing campaign. Along with this, relevant amount
have also to be paid when these are distributed (Kayumovich and Annamuradovna,
2020).
 Customised marketing is not attainable: The peculiar customers will not be targeted. For
an instance ad is developed for young ladies for new handbags. In this case, the segment
cannot be determined rather it is particular section like males or females or for both.
 Furnish less information: It becomes critical to illustrate pricing options and offers
related with products. Enough space is not available for displaying variations of prices
and offers that might seem appealing to buyer.
Define digital marketing
The course of action or plan for attainment of set of goals is referred to as digital
marketing strategy. In this case, goals are identified via what are the objectives and accordingly
priority is given. In this case, emphasis is made on attracting traffic, online presence along with
traffic conversion (Kotler and et. al, 2020). At present scenario, maximum organisations like
Tesco, Bentley Motors, etc. have opted for having online campaigns for captivating audiences
towards their services.
Advantages
They are illustrated below:
7

 Effectiveness in outcomes: In this case, strategies can be altered by firm on the basis of
results that have been achieved. Like number of visits, call tracking and many more will
aid firm to understand interest of their consumers.
 Specific marketing: Digital marketing is precise for reaching peculiar group of people.
Organisation can direct their strategies to peculiar state, country and zip code even.
 Global reach: The social channels or website enables to identify new markets as well as
trade globally for minimum investments within the project.
 Low cost: Digital marketing is planned in an appropriate manner where they emphasise
on reaching right customers at right instance of time.
Disadvantages
The limitations associated with digital marketing are specified beneath:
 Time consuming: It needs relevant investment of time for optimisation of online
advertising campaigns and creation of marketing material.
 High competition: Global audiences are reached through this but it also lead firm to have
global competition and this can have relevant impact on their markets shares.
 Complaints & feedback: Any criticism of brand will be seen by audiences and this might
lead negative impact on mindset of individuals towards offerings of firm (Vaculčíková,
Tučková and Nguyen, 2020).
 Skills and training: Employees need to have expertise within digital marketing for
having success.
Comparison along with contrast between traditional and digital marketing
This is specified beneath:
Basis Traditional Marketing Digital Marketing
Contrast or
dissimilarities
 Promotions through telephone,
banners, sponsorship, TV, etc.
 Not cost efficient strategy
 Is not very good for brand
formulation
 Difficult to measure
 Promotions via electronic
medium like ppc, sem, etc.
 Cost effectual
 Fast and efficient for brand
development
 Can be measured with
8

analytical tools.
Comparison or
similarities
 Set of offline tools are used for
attracting customers
 Take into account all the
aspects that creates impact on
buying behaviour of customers
 Based on hypothesis
 Online tools are utilised for
captivating consumers
 Tend to unite customers
behaviour
 Aspects are hypothetical as
preferences of customers are
not precise
Conclusion and recommendations
From above, it is inferred that both the strategies are utilised for captivating customers
towards their offerings. This implies broad category that includes distinct forms associated with
marketing and advertising. It is recommended that all the teams that include accounting, product
development, sales, distribution, IT, etc. must work together for guiding creation of multi-
layered and effective marketing strategies that covers four P’s appropriately.
9

References
Books and Journals
Chaffey, D., 2019. Digital marketing. Pearson UK.
Dakouan, C., Benabdelouahed, R. and Anabir, H., 2019. Inbound marketing vs. outbound
marketing: independent or complementary strategies. Expert Journal of Marketing, 7(1).
Gkarane, S. and et. al, 2019. Combining traditional and digital tools in developing an
international guerilla marketing strategy: the case of a SME Greek company. In Strategic
Innovative Marketing and Tourism (pp. 397-404). Springer, Cham.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Karaağaoğlu, N. and Çiçek, M., 2019. An evaluation of digital marketing applications in airline
sector.Journal of Human Sciences.16(2). pp. 606-619.
Kayumovich, K.O. and Annamuradovna, F.S., 2020. The main convenience of internet
marketing from traditional marketing. Academy, (1 (52)).
Khan, A. and Islam, M., 2017. The Impact of Digital Marketing on Increasing Customer Loyalty:
A Study on Dhaka City, Bangladesh.International Journal of Economics, Commerce
and Management.5(4).
Kotler, M. and et. al, 2020. Upgrading Digital Marketing Strategy: Strategic Platform for Digital
Marketing. World Scientific Book Chapters, pp.49-124.
Mekonnen, A., 2018. Digital marketing strategy for affinity marketing: Utilising the new
marketing arena. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications (pp. 87-105). IGI Global.
Pinto, F. M. and Pinto, C. C., 2020. Country Marketing Strategy: A Low-Cost Digital Marketing
Proposal for Cabo Verde. In Digital Marketing Strategies and Models for Competitive
Business (pp. 131-159). IGI Global.
Saura, J. R., Palos-Sanchez, P. R. and Correia, M. B., 2019. Digital marketing strategies based
on the e-business model: Literature review and future directions. In Organizational
Transformation and Managing Innovation in the Fourth Industrial Revolution (pp. 86-
103). IGI Global.
Theodoridis, P. K. and Gkikas, D. C., 2019. How artificial intelligence affects digital marketing.
InStrategic Innovative Marketing and Tourism(pp. 1319-1327). Springer, Cham.
Vaculčíková, Z., Tučková, Z. and Nguyen, X.T., 2020. Digital marketing access as a source of
competitiveness in traditional Vietnamese handicraft villages. Innovative Marketing.
Wirth, N., 2018. Hello marketing, what can artificial intelligence help you with?.International
Journal of Market Research.60(5). pp. 435-438.
10