Marketing Principles, Practices, and Strategies: Virgin Group Report

This report provides a comprehensive analysis of the marketing strategies employed by the Virgin Group. It begins with an introduction to the company and its diverse ventures, followed by an examination of core marketing concepts and terminology applicable to the group. The report delves into the product, price, place, promotion, people, process, and physical evidence (7 Ps) framework, illustrating how Virgin Group utilizes these elements in its daily operations. Furthermore, it explores the application of Segmentation, Targeting, and Positioning (STP) strategies. The report also discusses how marketing functions integrate with other departments within the organization, such as human resources. It highlights the strategies and programs that have helped Virgin Group achieve its objectives, including market strategy, mission, vision, and ethical objectives. The report also includes recommendations and conclusions based on the analysis.

Marketing principles &
practice

Table of Contents
.....................................................................................................................................................2
INTRODUCTION...........................................................................................................................3
1. Marketing concept and terminology applicable to the Virgin Group......................................3
3. Uses of 7 Ps and STP in daily organizational operations of Virgin Group............................7
4. Marketing functions with other functional areas-..................................................................11
CONCLUSION..............................................................................................................................12
RECOMMENDATIONS...............................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Virgin Group is a British company founded by Richard Branson and it was established in
1970. Headquarter of Virgin Group establish in London. Virgin Group do not focus on any
particular brand. They launched many products and expanded into many sectors. The group runs
over 100 national health services in the U.K. Richard Branson invest their money in many
sectors like travel, health, media, Banking, Gym chain, entertainment Etc. that is why they did
not grow. Now there are more than 60 companies established in many countries (Moriarty and
et.al., 2014).
In the Virgin Group marketing all activities included purchase, selling, advertising,
shipping, storing. Providers deliver their product and services to product seeker according to
their needs. Virgin Group provides strong network to the investor. Marketing is a very discipline
and broad. With the help of marketing principles companies successfully launch their products.
Marketing ideas and principles help to virgin for effective strategy (Virgin Group, 2016).
Marketing planning helps how product will be launched and which place is good for that. Virgin
Group make strategy how to promote their products and what should be the product price.
Television, radio, newspaper, magazines are the best way to promotion their product. Products
can be launched according to consumers need. It is also must that product price should be
defined according to consumer needs. They all included in marketing planning and practices.
The study will discuss about the marketing planning and terminology applicable to the
Virgin Group. This report will also show achieved objectives of Virgin Group with the help of
marketing strategy and planning. Uses of 7 p's in the company, daily bases marketing research
and operations will also include in this report. Also explain that functional relationship of the
marketing and other department in the Virgin Group for example marketing relationship with
HR.
1. Marketing concept and terminology applicable to the Virgin Group
In Marketing Concept Virgin Group should analyse the consumer needs. Take the
decision related to satisfaction of consumer. Also analyse that how to improve their organisation
other than competitive firms. Product concept, selling concept, purchase concept, marketing

concept all are included in the marketing concept. Virgin company aim that produce product and
invest in every sector where opportunities of consumer needs.
Product strategy
In product strategy, focus should be on product quality and cost. Their product could
make effective and low cost. Every strategy is different according to their product. In Virgin
Group they satisfied customers in travelling sector. They assumed consumers’ needs and worked
according to the customers. In Virgin Group all products sectors are similar name like virgin
mobile, virgin airline, virgin Atlantic, virgin trains and logo is also same. That is why their
company became famous. Virgin works in many sectors according to consumers demands. In a
competitive field they increased their production in different variety of product (Harcup, 2015).
After producing product price strategy is most important for the organisation. Virgin did
not reduce their product price and also not increased too expensive. Virgin make their product
and services luxuries. The price of other products are same. This is beneficial point for the Virgin
Group. Customer satisfaction is must for the company. For example virgin Atlantic give variety
of price. Customer can choose price level according to their budget (Moriarty and et.al., 2014.
Virgin Group is global organisation that is why their branches are available in different
areas. They locate their store for consumer needs. In virgin Atlantic website customers can not
go directly. For this middle men has helped. Consumer can book their flight with the help of
their service.
Virgin Atlantic make their strategy unique from other competitive airlines. Virgin
Atlantic company opened in 1984 (Harcup, 2015). in this flight high quality drinks and foods are
available for attract the customers. Company made strategy for high level traveller by pick up
from home to airport. Company vision that to provide comfortable journey to their customers.
Now company has higher passenger compare to other companies. Virgin Atlantic have the
strategy to expand their business in every country and earn more profit.
Promotion strategy
Virgin Group promotion strategy has impact a positively. Promotion is the main strategy
for every company because of this product has appeared in front of people. Advertising is the
best part for promotion. Virgin is also promoted their product through advertisement. Many
types of promotions are available like digital marketing, Public relations. Seminars, events.
Company also advertise their product from celebrity. That is why product image influence to the

costumers. Virgin Group is a global name therefore promotion is a big thing for the company.
Product promotion support to the company for their growth. Virgin apply new types of
promotion. Promotion strategy should be always unique. Like for example the firm has made use
of various activities like celebrity endorsement which has created the awareness about the
product in the market. It has supported the firm to expand their market in the various regions. It
also helped the company in enhancing their profitability as well as revenue. Also the other
promotional strategy like advertising through social media websites like Facebook, Instagram,
has been used by the firm in order to expand their brand.
2.Market strategy and programs of Virgin Group helped to achieve its objectives.
The organizational objectives can be easily achieved by various strategic marketing
functions depending upon the mission and vision of the organization. Virgin Group has
successfully attained its objectives of long term, positive impact on the customers, people,
communities and environment. The group has an objective of uplifting the society, environment
and economy by conserving human rights and value based approaches.
Market strategy and programs is the part of business. Market strategy focused for
achieving their organisation goals. Example of marketing strategy is social media marketing, e-
book. Market strategy work for a long time that is why companies focused to make a good
market strategy. Marketing strategy of Virgin Group should be improved and developed. In a
marketing strategy sales concept is also important. Company always try to convince the customer
for buy their product (Harcup, 2015).
Virgin make marketing strategy to sold their product with profitable price. People use the
word marketing but their really mean is sales. Marketing strategy is also focused on business
destination. Virgin Group has successfully become top company in all over the market. Virgin
apply outstanding services through marketing strategy for their customer attraction. Strategy
should be made effective which affect the other companies.
To make a position in the market virgin applied new strategy with the help of new
technologies. Virgin always focused on the needs of customers. They understand customers’
requirements and developed financial goals and then made strategy. Company concerned about
customer satisfaction. Strategy of Virgin Group helps to identify their market goals and targets.
New technologies are also helped to make marketing strategy.

Virgin Group growth in the short time with the help of marketing strategy. Virgin
Atlantic should cultivate their market strategy. This company should make more relationships
with customers, partners, shareholders. Virgin Group providing outstanding foods and drinks.
Mission : A mission of Virgin Group to spread their branches in every country. Sometime
a new strategy may change their mission. Company creating a new strategy for new product.
Mission of the company is that innovate new ideas and strategy and fulfil their goals and
objectives. Earn more money is the main mission of the Virgin Group (Moses, 2017).
Vision : Virgin Group vision is to be a victor in a competitive field. Company vision also
like improve behaviour of their employees and make new market strategy. Fulfil customers’
demands and requirements and give the satisfaction. Thinking about all the impact of business
strategy.
Objectives : company objectives that make position in all over the world. It is
responsibility of managers to fulfil strategy and convert into objectives. Objectives fulfilment is
depended on the performance of the company. To achieve objectives marketing strategy plays
main role. Virgin objective is that to invest money also in other fields. Number of objectives can
also change before achieved strategic plan. Objective of the firm is to increase the sales by 20%
till the end of year end.
Ethical objectives have been achieved
Fulfilled the customer needs : Virgin Group fulfilled the customer’s needs. For being
successful every company must to satisfied to their customers. Virgin Group first objective that
customer satisfaction. Company has spread out in every sector according to consumer needs.
Definitely Virgin Group has grown with the help of strategy. Company provide facilities to
customers in every fields where they work.
Develop product variety : Virgin Group launched many product in different fields. They
also increased their services. Now Virgin Group spread out in every sector with the customer
satisfaction. They always try to invest in another sectors. Virgin is one of the most knowing
brands in the world. Even now company has also developed their product in other field.

3. Uses of 7 Ps and STP in daily organizational operations of Virgin Group
The concept of 7 Ps in marketing strategy consists of Product, Place, Price, Promotion,
People, Process and Physical evidence. Organizations adopt seven Ps strategy to enhance each
and every possible of aspect of marketing of products/services.
Virgin Group has adopted marketing mix strategy to establish its brand name and value in
the market. The 7 Ps for Virgin Group involves-
PRODUCT- This segment of the strategy refers to deliver quality to the provided
services. Product strategy of marketing focus on the Sustainability, Demand, features,
uniqueness and availability of the services/product in the market.
Virgin Group, an established brand has comprehensive services/products for different
disciplines. Product mix strategy of Virgin Group increase its sales (Lees-Marshment, 2014).
From Virgin records to Virgin galactic and Virgin Unite, the group has expanded variety of its
Illustration 1: 7 p's of marketing
Source: (7 P'S of marketing, 2016)

service/products. “Innovation” is the key to brand value and customers' attraction towards it.
Virgin Group commitment of “changing business for good” and delivering promising and quality
products to customers maintain its credibility and independence on a single service
sector/product (Moses, 2017).
PLACE- The objective of adopting this strategy is to extend services/products among
different demography with the help of various tools that provide easy accessibility and approach
to it.
Virgin has already built a network of its product/services throughout the world. The
services are easy to access with the support of various subsidiaries. Outreach of Virgin has a vast
coverage in almost 35 countries with new upcoming projects in India named “Virgin
Hyperloop”. It has existing services at airports, super markets, malls and tourist’s places. All
Virgin Group services reach to different culture and geographic location with the intent to
facilitate social, environmental and economic benefits (Lees-Marshment, 2014).
PRICE- Pricing strategy is applied to maximize profit in any organization. Pricing
strategy are based on number of services/products, available substitutes and condition of market.
“Penetration pricing strategy” is adopted by Virgin Group to gain customers' attention.
Wide range of services with high standard quality at considerably low price, deliver it markets
penetration. Virgin Group has maintained its dignity by focusing on competitive pricing strategy
as compared to that of its competitors (Worth, 2018).
PROMOTION- This strategy assigns competitive advantage to organization by
promoting its services/products with creative, innovative and approachable platform.
Promotional strategy of Virgin Group has distinctive features it assembles great ideology of
Virgin team members and usage of social media platforms and advertising media partners.
PEOPLE- It includes proper utilization of workforce, provision for employee benefits,
maintaining work- life balance, continuous growth and opportunities and effective customer
service platform.
Virgin Group have extensive HRM protocols that involve proper reward, benefits and
compensation to its workforce. It also defines the work culture of organization with open system
of management and communication. It strengthens organizational environment hence, increasing
productivi9ty and efficiency of workforce.

PROCESS- This strategy depends upon core functional capability of organizations with
respect to manpower, equipment and facilities and assembling all three aspects to deliver
services.
Virgin Group has focused on productive process strategies to maintain its ample amount
of services. It encompasses high luxurious service varieties to its customers with high quality of
procedures. It involves integrated information system for customer engagement, brand awareness
and other strategic intent.
PHYSICAL EVIDENCE- Virgin Group is famous for its red colored theme for each
and every services. It also has a well created user friendly web portal and application. Since, it
has reached to almost 35 countries in the world. It has spread its reach to almost every continent
with high standard of working environment and retail stores.
SEGMENTING, TARGETING, POSITIONING of Virgin Group
STP model is used to analyze markets and interested customers on the basis of their
requirements. STP model include, Segmentation, Targeting and Positioning of market, customers
and products/services respectively. Virgin have utilized this model with strategic marketing
functions that facilitate productivity of its services and team.
SEGMENTATION-
Segmentation of market by Virgin Group depends on Lifestyle, demographic, Gender,
Socio- economic, Interests, behavioral traits of customers. Virgin Group have immense
subsidiaries that fulfill the demands of each and every trait. It has high class facilities for high
income segment. It has its approach to different geographic locations and service provisions
depending upon cultural diversities. Virgin Group encompasses array of services in following
sectors-
 Entertainment- Virgin Media, Virgin Music, Virgin Radio
 Travel- Virgin Atlantic, Virgin Holiday, Virgin Rail group, Virgin Hyperloop
 Retail- Virgin Retail group, Virgin Vouchers, Virgin Mega stores
 Health care- Virgin Care
 Communications- Virgin Mobile

 Hospitality- Virgin Hotels, Virgin Limited Edition
Hence, it has segmented its market in various branches. Hence, it has received its
leadership in various segments because of high market penetration and cost leadership strategy.
TARGETING-
This strategy includes approaching the customers based on their liking, attractions and
occupations they have. Main considerations of targeting market based on market segments and
range of available consumers to that particular service/products (Armstrong and et.al., 2014).
Virgin Group target its customers on the basis of their LIFESTYLE, OCCUPATIONS,
HEALTH STATUS and PERSONAL INTERESTS.
Targeting strategy adopted by Virgin Group is “differentiated/multi segment targeting” as
it has extended its services to many sectors ranges from Entertainment, Healthcare, Travel,
Retail, communications. It has selected various cost effective measures for market penetration
and targeting customers as well.
POSITIONING-
Virgin Group have effectively positioned its brand with the help of strategic branding,
promotions and value based commitments. The brand has an objective of sustainble growth
increased its positioning in the market place. Richard Branson successfully maintain high quality
standards and fun loving tag to its brand (Hyndman and Athanasopoulos, 2018). He has defined
the enthusiasm within the workforce by posting happy pictures on social media platforms.

4. Marketing functions with other functional areas-
Marketing functions are broadly classified in terms of “Marketing Mix” based on
Promotion, Distribution, Customer service, Public relation, Sales and other related marketing
aspects.
Functional areas in any organization other than marketing are mainly- HR, Finance,
Production, Research and Development, Stores, Security etc. all these functional areas of
organizations are interlinked and dependent on each other directly or indirectly.
Virgin Group, being a gigantic service provider in market have various core functional
areas to facilitate and manage its vast area of operations. Marketing functions of Virgin Group
highly depends on other functional areas of management.
“Human Resource Management” of Virgin Group are diversified and collaborate to
accomplish different objectives and goals with a common approach. All subsidiaries of group
have skilled and expertise workforce required for HRM compliance. HR department has its
dependency on Marketing functions in terms of-
 Recruiting experienced market analysts and researchers (Hyndman and Athanasopoulos,
2018).
 To strengthen employee engagement of different sectors with the help of promotions,
public relation activities, enhancing attraction for recruitment purpose through
advertisements.
“Finance Management” of Virgin has detailed and planned structure to provide adequate
financial support to the organization. It has an efficient finance management system to conduct
cost analysis, budgeting and conducting feasibility analysis to evaluate organization's financial
strengths.
Marketing functions are directly related with financial aspect of organization, as it
delivers strategic goal in terms of advertisements, promotions, sales and distributions and
adopting efficient logistics. All these marketing functions require ample amount of budget and
capital that is provided by finance department.
“IT Department” is a vital functional area that integrate advanced use of software and
technologies to enhance promotional, financial, HR activities. It rectifies faults in organizational
system with the help of modern technologies.

Virgin Group is technology based brand conducting its various projects, campaigns,
selection of distribution channel, promotional strategies, sustainable growth policies are
monitored by its efficient patent software systems.
Marketing functions like market analysis, branding, social outreach, promotional activities,
product delivery channels all are being controlled through well equipped IT infrastructure of
Virgin Group. Hence, marketing functions are highly dependent on IT department of
organizations for operational excellence and sustainable growth (Worth, 2018).
“Operations” management in any organization deals with different supply chains,
logistics, production. This require efficient operational infrastructure. Virgin has great platform
for the delivery of services with the intent of customers' satisfaction. The services are accessible
and liaised with advanced features to smoother the operational activities.
CONCLUSION
Presented study has summarised some basic marketing concepts, related terminologies
and strategies applicable to Virgin Group. It has also identified all marketing strategies that
helped Virgin Group to achieve its objectives with ethical considerations. It has also reflected the
relevance of 7 Ps of marketing in services provided by Virgin Group. STP model in selected
organization has also explained. The relation between marketing functions and other functional
areas have also been described. The report has used basic facts and figures of relevant industry to
fulfil its requirements.
RECOMMENDATIONS
 Virgin Group should adopt Individual branding strategy to reduce confusions among
customers regarding the brand and services.
 Product development strategy must be applied to some of its core and elemental business
segment to enhance its quality rather than quantity.
 It must align its services according to predefined organizational goals and objectives.
 It should conduct periodic evaluations to monitor its performance and corrective
measures must be taken to rectify faulty conditions within its system.
 Virgin Group has to perform active researches before entering into any service sector to
achieve competitive advantages.