BUS300: Marketing Strategy Analysis of Virgin Australia Airlines

This report provides a comprehensive analysis of Virgin Australia's marketing strategy. It begins with an introduction outlining the report's objectives and scope, followed by a definition of the extended marketing mix (7Ps). The main body of the report examines Virgin Australia's current marketing strategy, breaking it down according to the 7Ps of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence). The report further identifies key market trends and issues affecting Virgin Australia's marketing efforts, including demographic, environmental, socio-cultural, and economic trends. Finally, the report concludes with specific and well-justified recommendations for the company's marketing mix, aimed at enhancing its competitive position and addressing the identified market challenges. The report is structured to provide a clear understanding of Virgin Australia's marketing landscape and offer actionable insights for strategic improvement.

Business Marketing-
Market Research Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Define and describe theoretical concept of extended marketing mix..........................................1
Explain the current marketing strategy for the Virgin Airlines Australia...................................3
Identify some of the key market trends and issues that affect the marketing strategy................5
Specific and well-justified recommendations of the marketing mix for the company................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The marketing strategy of an organization combines all the marketing goals and
objectives into one comprehensive plan (Kwang and Sone, 2019). Virgin Australia Airlines is
commonly referred as Virgin Australia and it is one of the largest airlines company in Australia.
This is also the largest airline as fleet size for using the Virgin brand. The theoretical concepts of
extended marketing mix is discussed. Brief explaination of the current marketing strategy is done
under the basic concepts of marketing mix headings. Further the report briefly describes about
the key market trends and issues that affect the marketing strategy. Further the specific and well-
justified recommendations for the marketing strategy mix is done.
MAIN BODY
Define and describe theoretical concept of extended marketing mix
Illustration 1: Marketing mix
Business organization aims at making a good and effective marketing strategy and it can
be drawn from in-depth market research and focusing on right product mix. This is the simplistic
image or diagram that describes about the different elements that are included in the marketing
mix (The Marketing Mix 4P’s and 7P’s Explained, 2019). The theoretical concept of extended
marketing mix can be described as the blend of seven elements or components, sort of decisions,
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which business organization effectively manages, keeps in mind about the targeted objectives for
appropriately and proficiently marketing their products and services into target markets.
Product: This P aims at managing the product which is being sold to the end customers. It may
be any physical product or even intangible services. The critical ideas are included in this P such
as name of the product, its looks or packaging, etc.
Price: The second P includes any elements or issues which are related to pricing aspects which
are identified with the products. This is basically the amount that is paid by customers for the
products or services. This is determined as the important element as it may influence the
organization's survival and profitability.
Place: This is referred as the distribution and placement of the product in such a place that is
easily accessible for potential customers (Stead and Hastings, 2018). Business aims at
discovering about the most efficient and effective positioning and distribution strategies which
can directly contact with the target and potential customers.
Promotion: This component helps in boosting the sales and brand recognition. It is also
comprised of different elements such as : advertising, public relations, sales promotion, etc.
Business organization aims at combining different promotional strategies in order to achieve the
targeted goals and objectives.
People: This element of marketing mix is concerned with the individual who work for the
business organization. This is imperative for enrolling and training right employees, on the basis
that they are the one who will be dealing with end customers. The people of organization may
run the support desk, provide effective services to end customers, programmers, copywriters, etc.
Process: The organizational system and process may lead to influence or affect the execution of
the services. Thus, business organization ensures to have a well-tailored process for minimizing
the costs. This may include distribution system, sales funnel, pay system or any other systematic
procedure.
Physical Evidence: This refers that how a product or service is introduced with the clients or
customers, it also includes its surroundings. The physical evidence pertains about how the
business organization and its products or services are generally perceived in the markets.
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Explain the current marketing strategy for the Virgin Airlines Australia
Marketing mix of Virgin Airlines Australia analyses about the company that covers about
7Ps of marketing mix and explains the marketing strategy. The marketing mix tool is applied to
discuss about the current marketing strategy of the Virgin Australia Airlines.
Marketing mix theory Marketing mix in Virgin Airlines Australia
Product: This element of marketing mix
strategy reflects effective solutions for the
needs and wants of customers. Brand name,
quality, variety of features, packaging,
augmented services are the different elements
that are included in the product strategy.
Virgin Australia is leading premium airline
company that serves in various international
destination (Song and et.al., 2018). The current
product marketing strategy aims at developing
unique product design, features and name so
that it can stand out in the intense competitive
markets.
Price: This element of marketing strategy
requires effective evaluation for the products
value for the targeted customers. The pricing
strategy of marketing mix needs to focus on
setting the least prices, payment period, credit
terms and discounts as well. The price of the
organizational products and services needs to
provide value to customers.
Virgin Australia Airlines aims at undertaking
market penetration strategy by combining
different competitive pricing strategy,
promotion, advertising and also more resources
which are dedicated for the personal selling.
The current pricing strategy describes that it
provides low and high seasonal prices and it
differs for every destination.
Place: This marketing mix element signifies
location in which the products or service of the
business organization meets with the end
customers. The distribution networks are
rapidly expanding which allows organization
to deliver the product6s at any position within
short time by developing effective distribution
plan and strategy.
The place and distribution strategy of Virgin
Australia aims at expanding its destination in
the Qantas market. The company's place
strategy also focuses on introducing new
services which can be dedicated for the
business travelers.
Promotion: In order to reach intended and
potential customers, advertising and various
The current promotional strategy of Virgin
Australia includes internet advertisements for
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other promotional aspects are employed in the
marketing mix strategy (Saputri and Sari,
2019). The different communication channels
are exploited with the goal and objective for
conveying relevant information regarding the
products and services with the potential
customers.
the quality services offered by company.
Physical Evidence: This element of marketing
mix strategy describes about the environment
in which the organization offers its products
and services. This also includes the places in
which organization comes into interaction with
the customers.
Virgin Airlines Australia operates in 57
destinations and have 99 fleet size. The head-
office is situated in Brisbane, Australia. The
offices of company carries out call centers,
sales operation, support department, customer
relation department and baggage tracing and
claims.
Process: This element of marketing mix
strategy refers to actual process, procedure,
flow of tasks or activities, mechanism through
which the products or services are delivered.
The process marketing mix strategy of Virgin
Australia Airlines focuses on improving the in-
flight services to customers for achieving its
targeted goals and objectives. The current
process strategy also describes about
introducing frequent programs about flyer
miles.
People: This element includes all human who
influences the working of the organization and
plays part delivery of services. The people may
lead to bring influences on the perception of
the buyers, and may include employees, staff,
customers.
Virgin Airlines Australia aims at treating its
customers and employees with utmost comfort
and respect as they take them very seriously
(Saidani and Sudiarditha, 2019). Virgin group
believes that people will continue to come for
the quality provided even if it charges higher
prices. Virgin Australia employs pleasant and
warm employees in order to instill effective
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experience for the customer's journey.
Identify some of the key market trends and issues that affect the marketing strategy
The general business environment in which company operates brings dramatically affects
on the strategies and the organization itself. Skytrax is a research consultancy firm that considers
Virgin Australia Airlines as the four-star airline company. There are various key marketing
trends and issues that leads to bring influences and affects the marketing strategies which are
available in macro business environment. This includes various different factors such as
demographics, socio-cultural factors, political and legal trends, economic trends, environmental
trends, etc.
Demographic Trends: The changes in the demographic factors are essential in the airline
industry as Virgin Australia conducts business through relatively luxurious services but it
charges moderate prices for it. There are both growing and aging population in Australia and
from 20 million people, 4.5 million people are represented by the generation Y. This is referred
as the demographic group which can bring great influences on the country's spending pattern and
thus, on the Virgin Australia's marketing strategy. There is increase in the retiring baby boomers
and also those people living in debt, customers of Australia are likely for increasing the
consumption level and thus, impacts the marketing strategy as well.
Environmental Issues: Around the world, there is an increasing and ongoing trend for greater
environmental concerns and Australia is also part of this (Macroenvironmental Forces Affecting
Marketing, 2019). Now-a-days, people try to lean forward for having environment friendly
transportation and also they look for the substitutes that emits less carbon. Such issues or trends
available in the macro- business environment leads to bring great impacts on the Virgin Australia
marketing strategies.
Socio-Cultural Trends: There is an increasing marketing trend in concern with providing
services to various leisure destinations for fulfilling the needs for fun and even consuming
Australian lifestyle. Scheduling is considered as an important aspect as in today's fast paced
world and business environment, timetables generally took precedence over the services for the
discerning business travelers. Thus, these marketing trends may lead to bring influences and
affects on the marketing strategy of Virgin Airlines Australia (Kwang and Sone, 2019).
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Economic Trends: According to an article which was published in the Herald Sun, it is
suggested that there is going to be continuous rise in value of Australian Dollars for the rest of
the year and it is also said that stock market will surge about 10 per cent. Short-term increase in
the unemployment rate over coming months can force Reserve Bank for lowering the interest
rates down. The Virgin Australia Airlines will get affected and influenced by this marketing
trend as fall or decrease in the interest rates will leads to directly affect the consumer's behavior
thus, affecting the business marketing strategy.
Specific and well-justified recommendations of the marketing mix for the company
After the profound analysis is done for the Virgin Airlines Australia's marketing strategy,
it is prudent for considering various strategical options which are available to the company's
management. The management of Virgin Australia needs to rethink about integrating the
planning process from both inside and outside of the business environment.
Product: The recommended product strategy for Virgin Australia is that it needs to focus on
connecting the domestic travelers with its international destinations. It can be done through by
selling through Virgin Australia, Virgin Atlantic, Virgin Holidays.
Price: Virgin Australia should aim at tailoring packages for the adventurers, young families and
for students as well. This pricing and discounting strategies will lead to bring more customers
and help the organization to increase the productivity and market share. Company applies
discounted pricing strategy from which it get benefits of increasing the market share.
Place:They should think about and focus on building effective customer experience centers in its
different location areas. These centers needs to be mandated for supplying the management with
the information and knowledge about preferences of customers. Such important information can
be used for penetrating the target market fast (Hunt, 2018).
Promotion: The Virgin Australia makers its promotional strategy in a way that focuses on giving
discounts for the advance bookings and also provides favorable deals to the ones who travel in
group as an incentive. Websites, travel agents, direct mail, posters, newspaper and TV adverts
are used for advertising and promoting such special offers and for attracting the customers.
Process: Virgin Australia Airlines is a highly globalized organization that should focus on
centralizing its management in order to ensure that the important information flows effectively
along bureaucratic channels and it can be also retained. The centralized management process will
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ensure that person or employee who is given particular role or responsibility should be
answerable to an employee at higher level.
People: Although the Virgin Australia aims at valuing its customers and employees in effective
way. The recommended strategy is that Virgin group needs to focus on providing staff and
employees with training and development in Virgin's method of services, customer safety and
etiquette. The ground staff of Airline company needs to be prepared for minimizing the flight
delays.
Physical Evidence: The physical evidence strategy of company should focus on for introducing
a new fleet which can be equipped with latest entertainment technologies for its customers
(Fahmi, Fathoni and Harini, 2019). So that this will the origination to attract customers, satisfy
them effectively and also retain them. As suggested by the demographic changes, there are more
customers from generation Y that will be attracted by the new fleet technologies.
CONCLUSION
Marketing strategy helps the business organization to accomplish targeted goals and
objectives. It also helps in achieving maximum profit potentials and also sustain business in
competitive markets. The present report is prepared with valid recommendations for the business
organization for improving the overall marketing strategy. The report includes brief description
about the marketing mix elements theory and its 7 elements i.e. product, price, place, promotion,
process, people and physical evidence. Various marketing issues and trends are identified that
may lead to bring influence and affects on the business marketing strategies. Finally the well-
justified marketing mix strategy is recommended.
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REFERENCES
Books and Journal
Fahmi, F., Fathoni, A. and Harini, C., 2019. THE EFFECT OF MARKETING MIX, PRODUCT
QUALITY, AND BRAND EQUITY ON CUSTOMER SATISFACTION THAT
IMPACT ON INTEREST TO BUY (Case Study in CV. IKILHO KONVEKSI). Journal
of Management. 5(5).
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.
Kwang, E. and Sone, M., 2019. The influence of marketing mix, on the student’s choice of
University–Two State Universities in Sweden.
Saidani, B. and Sudiarditha, I. K. R., 2019. Marketing Mix-7Ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB). 7(1). pp.72-86.
Saputri, M. E. and Sari, D., 2019, May. The Effect of Service Marketing Mix in Low Cost
Airlines: A study of Scoot Airlines Indonesia. In 1st International Conference on
Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.
Song, R. and et.al., 2018. When marketing strategy meets culture: The role of culture in product
evaluations. Journal of the Academy of Marketing Science. 46(3). pp.384-402.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Online
Macroenvironmental Forces Affecting Marketing. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/macroenvironmental-forces-affecting-marketing-
71632.html>
The Marketing Mix 4P’s and 7P’s Explained. 2019. [Online]. Available through:
<https://marketingmix.co.uk/>
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