A Comprehensive Analysis of the Virgin Group's Marketing Approach

This report provides a detailed analysis of the Virgin Group's marketing strategies, examining its branding, the 7Ps marketing mix (product, price, promotion, place, people, physical evidence, and process), and its overall approach to customer relations. It explores how the Virgin brand, built on Richard Branson's persona and values, has successfully transcended various industries. The report delves into the company's marketing programs, emphasizing the importance of fun, innovation, and disrupting established markets. Furthermore, it discusses the relationship between marketing and other departments, particularly Human Resources, highlighting the importance of teamwork and skilled personnel in achieving brand values and sales targets. The report also provides insights into the Virgin Atlantic's marketing strategies including pricing, promotion, and distribution channels. Overall, the report provides a comprehensive overview of the Virgin Group's marketing success factors and their impact on the company's success.

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The Virgin Group
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Introduction
Richard Branson started his first business as a student magazine after he dropped out of
school at a tender age of 15 (Feloni, 2015). Later, he co-founded what was known as the Virgin
record store that then grew into a record label. It is after ten years of tremendous prosperity that
Branson dumbfounded his partners when he said that he wanted to venture into the airline
industry. Close to fifty years later, Richard Branson is the chair of the Virgin Group making him
a billionaire. He has presided over 500 enterprises, and his brand is between the 200 and 300 of
the enterprises he oversees. Branson’s remarkable passion and vision and good leadership
qualities have made him be one of the exponential entrepreneurs on this planet.
Branding
The Virgin group’s most significant asset is the Virgin brand. The manner in which the
brand was communicated and how it facilitated the products to which it was attached to was
sophisticated (Martinroll.com, 2018). It signified connotations portraying the value of money
though it was connected to concepts of style and broader social values. It is vital to recognize the
fact that the brand was not attached to any particular product or market and this enabled Virgin
to transcend commodity and market boundaries with easiness compared to any other brand name.
Marks & Spencer was instrumental in expanding its St. Michael brand from apparel to food,
Ralph Lauren transcended his brand from clothing to cosmetics and Harley-Davidson applied the
brand to clothing, cigarettes and cafes. However, no single company has managed to extend its
brand to such a diverse array of products and service such as the airlines, financial services,
railways and music.
The brand value can be a product of Richard Branson’s persona and style. Both the values and
characteristics communicated by the brand are inseparable from Richard Branson who is hailed

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as an entrepreneur, hilarious and challenger of incumbents. Product differentiation offered by
Virgin brand was connected to the innovation and offbeat approach that symbolized the various
Virgin start-ups.
Marketing strategies and programs
The UK has more than 5.4 million businesses all jostling for customer’s attention. In
winning such customers, large companies invest millions on complex marketing campaigns.
However, the beauty in marketing is that all such resources can be outperformed by a new
entrepreneur with just a personality and a simple idea (Virgin.com, 2016). Branson asserted that
no guarantee could be given to slingshot enterprises forward when businesses spend substantial
finances on marketing. He gave the reason for this is that consumers not only shop for a brand
and its associated products but also need to identify with its primary values.
One of the primary values at Virgin has been to disrupt industries while delivering
heartfelt service by maintaining fun all the time. Irrespective of whether Virgin is selling
holidays or contracts, it always makes sure that fun shines via all its products and service by
having it at the heart of its marketing. Such an approach has led to enormous dividends for the
company since like laughter fun is infectious.
When the company launched Virgin Atlantic, they lack the required budget to oust
British Airways’ marketing campaigns (Abdul, 2015). However, following the advice of Sir
Freddie Laker, Branson used some advice that he considered valuable where he used himself to
market the airways otherwise the product would not have survived. Richard Branson took the
advice seriously and placed himself at the centre and before the brand, and this was strategic as it
gave Virgin a personality that lacked in British Airways. It is since then that Virgin has been
pondering of fun ways that will enable it to stand out from the people and capture the attention of

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media towards the company. Virgin has done everything spanning from breaking global records
to pulling the tails of competitors and Branson cannot remember how many costumes he wore
and the outlandish explorations have developed waves. Despite the size and budget of the Virgin
Group, the have continuously made lines via having fun.
The golden rule of marketing adopted by Virgin is that of communicating primary values
in the most straightforward manner possible, eliminating the aspect of being small from deterring
a company to make a splash. Despite Virgin Group accomplishing significant milestones such as
including more than 100 enterprises in its portfolio, it considers itself a brand challenger. An
analysis of the industries where Virgin exists reveals that most of its companies are challenging
the established incumbents. Virgin has a reputation as an upstart where its core focus has been to
disrupt the status quo while enjoying and having all the fun leading its marketing efforts and in
return driven the success of the brand.
7Ps
The marketing mix of Virgin Atlantic evaluates the brand which includes the 7Ps such as
product, price, promotion and place among others and elaborates on the marketing strategy
adopted by Virgin Atlantic.
Product
Virgin Atlantic has been ranked as the leading premium airline enterprise stationed
outside the U.S. that serves the American and global destinations (mbaskool, 2011). It has been
reported that Virgin Atlantic has more than thirty aeroplanes that are a component of its
marketing mix and product offering. The fleet entails Boeing and Airbuses. Each plane
belonging to Virgin Atlantic has three classes Economy, premium economy and business class.
Virgin Airlines is a premier airline that concentrates primarily on quality. Its superior quality

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cabins characterized by more extensive leg space facilitates comfort for its passengers. Just like
other airlines, Business and First-Class passengers are provided with access to Lounge, luxury
facilities and comfy 180-degree seating. They also have a unique food menu for the children.
The games, movie and music constitute the in-flight entertainment.
Price
Virgin Atlantic has been categorized as a high-end airline. Its rivals include the British
Airways, Cathay Pacific and Lufthansa among others (mbaskool, 2011). All these airlines are
best for the class of service they offer and are priced higher compared to economy flights.
Though there being many clients for economy flights, Virgin is keen on establishing quality over
quantity. Virgin Atlantic is of the opinion that price should not be the determinant for choices
rather quality and service should propel one to the desired options. People who are deemed high
class are catered for as long as they are willing to pay for more for the services. Their customers
range from upper middle to influential personalities. Though having higher prices compared to
economy flights, they are priced slightly lower than their competitors. Virgin Atlantic adopts a
comparative pricing strategy enabling it to remain relevant in the market while most customers
prefer it.
Place
Virgin Atlantic has limited flights of approximately 39 which serve 29 destinations. Its
place of operation is from three areas in Britain particularly Gatwick airport, Heathrow airport
and Manchester airport (mbaskool, 2011). The products from Virgin Atlantic services are sold
via different distribution channels. For some, they can book them through the internet in the
official airline website by Virgin Atlantic Airlines, online travel agents and via local travel
agents.

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Promotion
Although Virgin Atlantic provides services that are fairing well with those of its
competitors in the market, it fails to fare well as it did in the past. The recent hike in fuel prices
has led to lesser profits. Travelers, on the other hand, prefer low-cost airline when travelling due
to its convenience. Virgin Atlantic employs social media campaigns to attract and lure customers
to connect with them. The owner of Virgin Group, Richard Branson gets used by the PR to
develop a vast brand image for Virgin Atlantic Airlines. The commercial advertisements in the
televisions are strategically crafted to appeal to the audience. They use smart and beautiful
women who act attraction points for passengers. Also, the planes have been given female names.
Virgin Atlantic also gives special offers based on destinations, kind of customers and festivities.
They lower and hike prices depending on the occasions. The premium customers have a regular
flyer club known as the flying club.
Physical evidence
Virgin Atlantic mode of operation is based in three strategic locations in the UK.
However, their presence is felt in almost all the continents serving more than 29 destinations.
The head office is based in Crawley in Britain. The Virgin Atlantic office virtually conducts
activities such as sales operations, baggage claims, support and customer relations department.
There are other offices situated across the world apart from the head office which is situated in
London for instance in cities such as Johannesburg, Lagos, Shanghai and Dubai.
People
Virgin Atlantic has employed over 9000 workers. The Group takes its people seriously
both the customers and the employees. The customers are treated with utmost respect and
honour. The company believes that treating people right will make them come back for quality

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despite them being priced higher. Virgin Atlantic recruits people who are warm and pleasant to
share such an experience in the journey of their clients. The group is also keen on hiring young
and beautiful women who attend to their visitors enabling passengers to feel comfortable and
have amazing flight experience.
Process
The products by Virgin Atlantic have been tried and tested for purposes of quality to
ensure that they deliver maximum customer satisfaction. The analysis of the market is adequately
done to ensure that customers, on the other hand, have an amazing experience with the products.
The products are then released to the public for individuals to experience. For instance, when a
traveler wants to book a flight, they head to the official website or local agents where they book
their flight. The flight tickets include the itinerary and luggage requirements. Once they arrive at
the airport, they are provided with check-in depending on the kind of class they are entitled to.
The travelers can also access lounges partnered with Virgin Group before boarding a flight.
Marketing should be perceived as a business philosophy where the existence of any business
should depend on satisfying the needs and wants of customers. Such a burden cannot be
shouldered by the marketing department alone (Kotler & Armstrong, 2018). Marketing as a
strategic subject defines most activities of the business and is a critical component of the co
prorate strategy that is communicated via the corporate plan. It is thus to recognize that products
should be tailored to meet the needs of the customers. Though a specialized unit does the
marketing function, marketing thing should permeate the whole organization. The establishment
of an effective marketing plan requires close collaboration with other functional departments of
the organization.
Relationship between marketing and other departments

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Marketing and HR
The HR model and the marketing department are linked in such a manner that they both
aim at serving the internal and external customers through innovations at both the marketing and
HR departments (Sanadress, 2012). Both HR and marketing are sensitive departments that
require experts to craft the very best models. The human resource department is tasked with
recruiting people with the right skills and attitude to ensure the job gets done productively
employs marketing individuals who ensure that the value of the brand gets achieved. In
upholding and promoting the value of the brand, teamwork and excellent sales representatives
are required to market and improve sales. The HR department is thus tasked with selecting
individuals with the right attitude and zeal to ensure that brand values are achieved leading to the
formulation of brand culture at Virgin. The marketing department is in charge of marketing the
various products exhibited by the Virgin Group informs the HR department of the skills and
talents that are important in boosting the sales of the company. The marketing team also reports
the HR department of any gaps regarding skills that are needed to complement the already
existing workforce of the company.
The HR conducts training and development for people in the field of marketing, and
Richard Branson was strategic in delegating such a responsibility to employees that are deemed
capable to assist them to brace for future marketing roles within the company. The move to train
marketing employees ensured that individuals got innovative and their skills got polished to
enable them to deliver the best results. The collaboration between the marketing department and
the HR department as strategic partners was imperative as it fostered customer services that are
directly linked to the success or failure of the organization.
Marketing and production

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The Virgin Group’s marketing department works in close association with the production
function to ensure that, substantial research and development is planned to meet current and
future needs of the customers. It also provides that the products are customized where possible as
per the quality and design specifications as laid down by the customer. Lastly, is to ensure that
the volume of generated orders by the marketing team meet the schedule regarding delivery.
The close relationship between marketing and production departments has been crucial in
facilitating optimum performance for the Virgin Group. Also, the cooperation between the two
functional departments has been due to close communication. The result of such collaboration
has led to customer needs being fulfilled while organizational profits have been increased.
However, there have instances of conflicts as the two functions strived to achieve their goals and
this affected their roles and the performance of The Virgin Group. However, Virgin group has
managed to emphasize the need for cooperation between the marketing and production functions
a move that has seen an increase in the performance of the organization and general
improvements. However, each function is tasked with different tasks and responsibilities. The
production function is tasked with developing new products and organizing deliveries. The
marketing function, on the other hand, focuses on satisfying and meeting the needs of customers.
Thus, the Virgin Group can increase profits and satisfy the needs of consumers by collaborating
the marketing and production functions while curbing conflicts that may arise between them.
Marketing and finance department
The marketing department at Virgin Group works in close association with the finance
department facilitating that there is a substantial budget that anticipates the needs for research
and development, distribution and promotion of products. The Virgin’s finance department has
the entire organization brief that facilitates that the business runs within its financial abilities. As

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such, they ensure that all departments operate within their allocated limits regarding the budget.
The marketing department focuses on sales volume and developing the market share while the
finance unit concentrates on cash flow, operational costs and payback investments within the
shortest time possible.
Conclusion and recommendations
The Virgin group that began following inception of ideas by Richard Branson would not
have become a possibility were it not for Branson’s resilience and persistence. The
diversification of his products spanning from airlines to cosmetics is impressive. However, the
Virgin brand has become overextended in some way. Some of the enterprises that fail to meet
Virgin personality should be left out, for instance, the cosmetics, beverages and probably the
financial services or design another brand name for such products. The fair prices charged
compared to those of competitors has made the company have a significant market share as
consumers are loyal due to the quality products and services offered. The segmentation of the
market particularly in the airline industry has been beneficial for Virgin. This is because there are
products for all clients based on the size of their pockets.
The penetration of Virgin into global markets led to the Virgin brand being able to attract
customers across the globe. The appeal associated with Virgin for instance humor, fun, and style
that characterized Richard Branson led to the company making severe considerations for how
well the image transcended cultural barriers. Despite Branson’s popularity in both Europe and
North America, in many aspects, he was a British character that symbolized both time and place.
However, the increased diversification and a large number of start-ups that were not generating
substantial profits, the group began looking at the extent to which the brand had become
overextended. In areas that Virgin seems not to perform, it should exist such ventures as they

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reflect incompatibility with the Branson’s personality, for instance, the beverages, cosmetics and
probably the financial products. The group can also brand such enterprises differently to see if
they can generate more profits and achieve greater market penetration. Stretching the brand name
to other services such as the railway has been perceived to damage the goodwill associated with
the brand leading to compromise of the primary values it was based on. The group’s vision to
provide the public with new levels of speed and comfortability has been downtrodden by UK’s
privatized but poorly-connected rail network.
References

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Abdul, R., 2015. Virgin corporate strategy, Case Study. [Online]
Available at: https://www.robabdul.com/business/virgin-corporate-strategy-case-study-article-
this-report-closely-examines-the-virgin-groups-corporate-rationale/
[Accessed 11 December 2018].
Feloni, R., 2015. Why Richard Branson is so successful. [Online]
Available at: https://www.businessinsider.com/how-richard-branson-maintains-the-virgin-group-
2015-2?IR=T
[Accessed 11 December 2018].
Kotler, P. & Armstrong, G., 2018. Principles of marketing. Upper Saddle River: Pearson.
Martinroll.com, 2018. Market Orientation – The essential foundation for strong brands. [Online]
Available at: https://martinroll.com/resources/articles/strategy/market-orientation-essential-
foundation-strong-brands/
[Accessed 11 December 2018].
mbaskool, 2011. Virgin Atlantic Marketing Mix (4Ps) Strategy. [Online]
Available at: https://www.mbaskool.com/marketing-mix/services/17557-virgin-atlantic.html
[Accessed 11 December 2018].
Sanadress, 2012. Marketing and its relationship with other business activities.. [Online]
Available at: http://www.sanandres.esc.edu.ar/secondary/marketing/page_14.htm
[Accessed 11 December 2018].
Virgin.com, 2016. The Golden rule of marketing. [Online]
Available at: https://www.virgin.com/richard-branson/golden-rule-marketing

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[Accessed 11 December 2018].