Comprehensive Marketing Analysis of The Virgin Group: A Case Study

This report provides a detailed analysis of the marketing strategies employed by The Virgin Group. It begins by identifying key marketing concepts and terminologies applicable to the company, exploring how these concepts are applied across the diverse range of Virgin's products and services, including financial services, airlines, and hotels. The report then delves into the specific marketing strategies and programs that have enabled The Virgin Group to achieve its organizational objectives, with a particular focus on ethical considerations and sustainability. The analysis includes a discussion of the company's vision, mission, and SMART marketing objectives, highlighting how these elements guide the group's approach. Furthermore, the report examines how The Virgin Group applies marketing concepts and principles in its daily organizational operations, covering branding, promotional strategies, and the integration of various marketing dimensions. Finally, the report explores the relationship between the marketing function and other functional areas within the company, offering a comprehensive understanding of The Virgin Group's marketing practices.

THE VIRGIN
GROUP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Key marketing concepts and terminologies applicable to The Virgin Group.........................1
2. Marketing strategies and programs for The Virgin Group that assisted them in achieving
organisational objectives in an ethical manner...........................................................................3
3. Marketing concepts and principles applied by The Virgin Group in daily organisational
operations....................................................................................................................................6
4. Relationship between functional areas and marketing function of The Virgin Group...........8
CONCLUSION AND RECOMMENDATIONS..........................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing principles and practices play a crucial role in an organisation that are
conducted with an aim to stay in market for longer span of time with gaining a competitive edge
over others. Virgin Group was founded in 1970 by launching a mail – order record business
which then converted into virgin records. Virgin Group includes 20 holding companies and
operates in conglomerate industry which deals with many products and services related to
different sectors such as banking, books, healthcare, jewellery, retail, travel, etc. As per the given
case study of Virgin Group, key concepts of marketing applicable to company will be discussed.
Also, it will include the marketing strategies and programs of Virgin Group which assisted them
in achieving the organisational objectives. Furthermore, marketing concepts and principles used
in daily organisational operations of Virgin Group will be highlighted. Moreover, it will provide
an understanding of relationship between marketing functions to other functional areas in
company.
MAIN BODY
1. Key marketing concepts and terminologies applicable to The Virgin Group
The key concepts of marketing which includes production, product, selling, etc. There are
different products provided by The Virgin Group that consist of financial services, airlines,
trains, cosmetics, music and soft drinks (Amaro and Duarte, 2015). Virgin Group started to sell
the diversified product in order to increase their customer base also it increased their brand
image as many people were attracted towards Virgin Group as people were getting all the
facilities and products at one place which increased the attraction of people toward the
organisation.
The organisations were not associated with specific product this allowed The Virgin
Group to cross the products and market boundaries easily which is difficult for other
organisation. Marketing approach adopted by The Virgin Group was related to innovation and
offbeat marketing (Kirschbaum and Fernandes Ribeiro, 2016). For example: Virgin hotel, a
brand in The Group was created by Richard Branson. The following strategies are applicable to
Virgin hotel:
Product strategy of Virgin Hotel: The strategy adopted by Virgin Group to increase
their revenue for hotel and achieve organisational objective of Virgin hotel includes that services
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provided by hotel must be of high quality and guest must be satisfied by their services. Hotel
group mainly focuses on providing their guest with best experience to provide them quality time
at place. The group aimed to have hotels in 20 locations to increase their brand image and
profitability. The product strategy of Virgin hotel is to solve the problems of travellers and
provide them facilities of hotel which is comfortable, customisable and have fun experiences.
The Virgin Group provides value for money, quality, experience and fun.
Promotional strategies for hotel: The organisation can use various promotional
strategies to increase profitability and market share of company in market. There are various
promotional tools which includes advertisement in newspaper, magazines, etc. but the
promotional strategy adopted by The Virgin Group to promote their hotel is digital approach
which includes promotion through social media sites such as Instagram, Facebook, etc. (Lazich,
Burton and Virgil, 2016). Promotional strategy also includes sales promotion to increase the
sales of hotel by attracting more customers towards the hotel. Also, the organisation have the
option to promote the services using direct marketing which includes providing information to
public about the services offered by hotel through mail or telephone etc. Sales promotion is
related to influencing the customers towards products and services of the firm. The Virgin group
also can use strategy of direct marketing in which products and services of group are directly
provided to customers. Furthermore, promotion through PR in which the public relation are
maintained by the organisation to promote products and services can be done. Also, the products
of Virgin group are promoted through personal selling in which the buyer is influenced to
purchase the same through face to face communication.
Branding for Hotel: Branding is process of creating a unique name for the product or
services to attract customers towards the firm. It uses Monolithic branding in their marketing
approach which means having a family name which is then followed by actual product. The
Virgin Group started the hotel as it is known for being a challenger brand (Imon, 2017). The
group adopted branding strategy to provide hotel services in name of Virgin hotel to increase
market share of organisation. Hotel branding strategy includes that it must fulfil customer’s
needs to improve the brand image of organisation.
Brand extension refers to the use of the existing brand name for new product categories.
Hotel industry in order to increase their brand image have used the name of Virgin Group which
provide cross products in the name of Virgin. It has built various hotels in name of Virgin group
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in order to provide diverse range of products to its customers. Virgin hotel provides its customers
with different services with better experience and make them enjoy their holidays
(Mintz and Currim, 2015). Virgin Group uses its name in every products and services in which it
deals to provide customers with the understanding about the various products and services
offered by the group to increase their customer base which will help the group in achieving their
business objective. This group provide the customer with high quality products and services
which satisfy the demands and wants of customers. This group used various strategies to
improve their brand image which includes providing different products and services to give high
competition to the other firms existing in the market (Pauwels, 2015). The promotional strategy
like advertising in the television, through social media, newspaper etc. to promote the products
and services of the business to increase their customer base.
2. Marketing strategies and programs for The Virgin Group that assisted them in achieving
organisational objectives in an ethical manner
There are various marketing strategies that helped The Virgin Group in achieving their
organisational objectives. This group focuses on providing customers with high quality products
and services to increase their experience. The main purpose of The Virgin Group is to change the
business for good. The company focusses on long term impact of decision made by them and
making decision for long term (Ni, 2017). Also, the organisation provide that having a clear and
measurable purpose in every virgin business will help in making decisions which assist in
providing positive impact on customers , people, community and environment.
Vision statement
Vision of Virgin group is to “change the business for good”. Also, it includes pioneering
systematic change beyond the Virgin Group through profile of Sir Richard Branson.
Furthermore, it involves advocacy as a global business leader. Vision of The Virgin Group is to
be a shopper victor by delivering brand values that include value for currency, superior quality
products and services, higher customer service, etc.
Mission statement
The mission of Virgin group is to think about the long term impact of business decision
which are taken today. Also, it includes having a clearly articulated, embedded and measurable
purpose in every business of to have positive impact on customers, people, communities and
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environment. The mission of the Virgin Group is to achieve its vision and objective by working
towards the achievement of its Vision statement.
Marketing objectives of The Virgin Group: Main objective of company is to provide high
quality products and services to retain their existing and attract the potential customers to
increase the profitability and productivity of organisation by increasing its sales.
Marketing strategies of The Virgin Group are based on SMART objectives which are
specific, measurable, achievable and realistic as well as time bound. Specific includes particular
goals of the business such as changing business for good. The goal must be measurable and are
achievable in particular time. To offer fun and experience to customers by way of delivery of
different products and services. To use social media sites for promoting its products and services
to reach at a large group of people situated in different countries.
SMART objectives components Objectives of Virgin Group
Specific The objective of Virgin group is to achieve
higher productivity and profitability by
increasing their sales with 10% by the end of
2nd Quarter.
Measurable It is measurable by comparing the sales
revenue with the past year to identify the
increase in profitability.
Attainable This objective is attainable through use of
various promotional tools which will help in
attracting more customers towards the brand.
Realistic This objective is realistic because 10% is small
target for the group.
Time bound This objective will be achieved by Virgin
group within 6 Months.
The Group focusses on improving their services on the basis of evaluating feedback
provided by customers to improve consumer experience with firm and satisfy buyer’s demands
by providing products and services according to their requirements. The Virgin Group is
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involved in integrating different dimensions in marketing their products and services such as
product, place, price and promotion. Company emphasises on achieving objectives of business in
an ethical manner by creating value for consumers and providing products and services by
fulfilling the promises.
For example: Virgin group is operating in different sectors and to achieve their objectives
in an ethical manner, it is focusing on sustainability and following the ethical code of conduct.
Organisation’s main motive is to provide those services which are useful for them and to create
their value for customers to retain them in business to achieve the objectives of the group ( Our
values, 2018). The Virgin Hotel is a part of Virgin Group which is providing services to its
customers to render a great experience and fun. The hotel’s main objective is to provide comfort
to its customers and satisfy their requirements as per customers’ demands.
The Virgin Group adopted marketing strategies as it will help them in providing
information to customers about various products and services of group. Marketing objectives of
the group help them in achieving their business goals. This Group is providing services
internationally to increase their customer base and gain more market share. The appeal of Virgin
Group was humour, style and fun which will help organisation in crossing national culture.
There were many researchers that raised question and suggested Virgin to get out of
business which does not fit the personality and it included business relating to beverages,
cosmetics and financial services and to come up with other brand names for those products. The
Virgin Group followed same name as it will reduce profitability of firm if it changes name or
renaming brand. The Group provided it products and services in the name of Virgin which is
having a strong brand image that supports firm in attracting more customers.
Business performs its various activities in an ethical manner without breaking the laws
and regulations of any country and providing products and services which are of high quality to
gain customers loyalty to retain them in business (Our Purpose, 2017). Main motive of the group
is to provide customers with fun and experiences by way of their products and services. The
group was known for its competitive approach which no other firm in the market was applying.
The objective of Virgin group is to change business for good which was achieved in an ethical
manner as this group provides its products and services by adopting ethical practices and giving
preferences to the customers by providing accurate information about their products and services
with maintaining the level of sustainability to achieve goals.
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3. Marketing concepts and principles applied by The Virgin Group in daily organisational
operations
The application of 7 Ps to The Virgin Hotel of the group
Product: The product in Virgin hotel focusses on providing high class rooms and
includes facilities which will meet the demands of customers. The hotel is providing its services
in the name of Virgin so that the customers can recognise their group. The focus of this group is
to provide services which will consist of high quality, innovation, fun and a sense of competitive
challenge. The services offered by Virgin hotel group helps them in increasing their brand image
and improving the service quality by taking the customer feedback to improve their experiences
and satisfy their demands. Increased number of products and services offered by group has
supported organisation in building a strong brand image in the market and increasing their share
to provide tough competition in the industry.
Promotion: The promotion of products and services plays an important part in attracting
customers towards items offered by firm. Promotion of products and services is important to
provide information to customers about the goods and services offered by the organisation. The
virgin hotel is providing excellent services and room facilities which are promoted through use
of various tools such as advertisement in newspaper, magazines, etc. through various other
modes which include advertisement with social media sites such as Facebook, Instagram and
promoting the products and services by making videos on YouTube etc. to attract customers
towards the brand.
Price: The pricing strategy adopted by the Virgin hotel group includes competitive
pricing strategy as firm believes in providing services at high standards. The firm charges price
which are not too low and not high to provide customers with services at price availing in
market. The prices charged by The Virgin Hotel helps them in increasing their customers as there
are many organisations providing the same services at same prices but the standard is low.
Place: In The Virgin Group, place refers to the location products and services are offered
to customers. The distribution channel of The Virgin Group is extremely expensive because it is
global company and it uses direct distribution is some cases. Indirect distribution is used in
providing services as it cannot provide them physically. The Virgin Group in order to provide its
customers with services at proper time and place provide their customers to know about various
hotel deals on their website to book their room.
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Physical evidence: The Virgin Group is having a strong brand image which helps the
hotel in providing customers with physical evidence (THE MARKETING MIX, 2018). The
infrastructure of The Virgin Hotel is attractive and cleanliness is highly maintained which helps
firm in attracting customers. Hotel is involved in maintaining their interiors with positive
ambience to attract customers towards them.
People: The staff of Virgin Group are service providers who provide customers with best
service quality to offer them better experience at hotel to retain them in business. People working
in hotel are providing their best services to the customers and thus, help organisation in attracting
more customers.
Process: It includes process of obtaining services. The Virgin Hotel Group provides their
customers with easy service availability to provide them fast services which will help
organisation in retaining the buyers in business for future.
Segmentation, Targeting and Positioning for Virgin hotel group
Segmentation: It is a process of dividing market into potential customers on the basis of
their taste and preference and their demand to provide them with the products and services
required by them. The Virgin Hotel Group provides its guests with different facilities. This helps
the hotel in dividing customers into different segments according to their demands.
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Illustration 1: 7ps of marketing
(Source: 7P’s of Marketing, 2018)

Targeting: This helps organisation in targeting those customers from segments which are
profitable for the firm. This step helps in identifying those customers which will help the firm in
increasing their profitability in market. The Virgin Hotel Group’s target market are the people
who do not value for money but rather give more preference to the standard of quality.
Positioning: This step is the final in STP process which helps the firm in identifying its
position in the market. This step is related to implementation of targeting strategy in order to
increase the market share and profitability of organisation. The Virgin Hotel Group is having a
strong brand image in market which helps firm in attracting more customers towards
organisation.
4. Relationship between functional areas and marketing function of The Virgin Group
There are different functional areas under the Virgin Group that includes finance
department, marketing, research and development, human resource management, production
department, etc.
Relationship between marketing and financial department: There is a relationship
between marketing function and financial department as it help the finance department in
identifying various information about the sales of the organisation and marketing department
require the information about the cash available with the company for various promotional
activities. The Virgin Group department are linked to each other as they require different
information about the various operations of the organisation.
Relationship between marketing and human resource: marketing department provide
information to human resource department about the vacancy in the marketing department and
various information about their employees. Human resource department provide the right people
for the marketing department which will help the organisation in increasing their sales. The
Virgin Group hotel department are connected to each other for sharing various information.
Human resource department is linked to marketing department for sharing various information
relating to the employees and various vacancies.
Relationship between marketing and research and development: The Virgin Hotel
group have various department and all s department have relation with each other for sharing
various information relating to different operations of the firm. The research and development
department provide information to the marketing department about the taste and preferences of
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the customers and the demand existing in the market which help the marketing department in
promoting the product to increase the sales.
Relationship between marketing and customer service department: By working
together this department can increase the profitability of the organisation. The customer service
department is involved in providing better services to customers by taking their feedback about
the products and services (Pinheiro, 2017). Marketing department by can use different tools by
taking suggestion from the customer service department to provide better services to customers
The Virgin Group has hierarchical organisational structure which helps the firm in easy
and efficient decision making. It is the reason The Virgin Group is able to expand into new
businesses. It allows a wider span of control and decentralization. It helps the firm in making
decision which will increase the profitability and market share of the business.
CONCLUSION AND RECOMMENDATIONS
From the above study, it can be concluded that Virgin Group in order to achieve its
targeted objectives has followed various strategies for improving its brand image that consists of
promotional and branding strategy that has helped the firm in increasing its profitability through
use of various promotional tools such as advertising, social media sites and various other modes.
Virgin Group has developed its mission, vision and objectives that have helped the organisation
in attaining sustainability. Furthermore, it has various threats that include brand dilution and
threat from global competition.
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Illustration 2: Virgin group organisational structure
(Source: Virgin corporate strategy, 2016)

It is recommended to The Virgin Group that it should improve relations with the public to
enhance their performance and achieve future growth by fulfilling their demands that will help in
reducing the impact of threat. Also, The Virgin Group should focus on one product line instead
of diversified products and services as diversification is the last option for any company to grow
its business. It is recommended to company to fulfil its social responsibilities to increase
customer loyalty. Also, it is suggested to the organisation to have SMART objectives that will
help the firm in increasing their growth rate.
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