An Examination of Marketing Strategies and Practices at Virgin Group

This report provides a comprehensive analysis of the marketing principles and practices employed by the Virgin Group, examining its diversification strategies and the challenges associated with umbrella branding. The study delves into key marketing concepts, including product strategies, rebranding, and branding techniques, highlighting how the company has adapted to maintain its market position. The report further explores the marketing mix (7Ps), STP (Segmentation, Targeting, and Positioning) strategies, and the integration of marketing functions with other functional areas within the organization. It analyzes the company's approach to customer satisfaction, innovation, and its use of digital marketing tools. The report also discusses how the company addresses ethical issues and coordinates different departments to achieve its marketing objectives. The analysis includes specific examples of how the Virgin Group has implemented various marketing strategies to enhance its brand image and increase market share, concluding with insights into the company's efforts to align diversified products with its core values and maintain a customer-centric approach.

MARKETING PRINCIPLE
AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
1.key marketing concept and terminology.............................................................................1
2. Marketing strategies and programs of The Virgin group...................................................3
3. Marketing mix and STP of Virgin group...........................................................................5
4. Marketing functions and its relation with other functional areas.......................................7
Conclusion ......................................................................................................................................9
REFERENCE.................................................................................................................................11

INTRODUCTION
Marketing is effort to promote and sale good and service to end customer. Prime
objective of marketing is to increase sale by enhance consumer satisfaction. Diversification is
process of expanding business in different industry. Successful diversification can be done by
effective and efficient marketing practice. Present study gives the idea of marketing function and
its relation with diversification. Report is made upon case study which identifies the problems
occurred in Virgin group due to umbrella branding. Company overstached it sizes. Diversified
product are not matched with core value and principle set by Richard Charles Nicholas Branson
(owner). Report cover marketing function and activities which help it to become a giant empire.
Report also put light on co ordination of different department of Virgin Group. Marketmix of
Firm also include to know how it uses different strategies for different products. Virgin Group is
one of the largest company having its business in more than 400 countries. USP of this legend
organisation is its “ huge diversification” policy. Richard Branson not only set up brand at very
young age, he even took so intensive risk to establish it as a “ global company”. No other owner
and entrepreneur is famous with its brand as Richard Branson is, because his personality and
ethics can be seen all the business. Company offer financial services, bank, electronic gates,
Airline, Rail transport, books, health care, wellness product, internet facility, mobile, radio,
jewellery and films product to its customer. It has really big product base in business industry.
Such a large diversification policy help to avail large market size but it also creates the problem
of quality in product. Report also suggested the way Virgin group can manage the ethical
issue( compromise core value ) emerge due to loosing its concentration.
1.key marketing concept and terminology
Product strategy
It is a blueprint of product development stage and activities. Objective, directions,
purpose of product are being formulated in product strategy of company. Strategic planning and
marketing planning are done to achieve these objectives and purpose. Company get a random
idea of would be product and it takes its actions to achieve this imaginary product. Product
strategies comprises vision, mission (short term goals), initiatives, big picture context etc.
following is the rebranding marketing strategy used by Virgin Group for its product (Bahl. and
Chandra, 2018)
Rebranding
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Here vision of Virgin group is to give different name to different business . Company
also want to change name of diversified product based upon suggestion received by marketing
experts. Same name for every thing create image of “unfocused Firm” and goodwill of company
affected by failure of diversified product. For instance organisation use “Virgin” with rail
service, but these service is swamped by Britain’s poor integrated rail system (Cacciolatti. and
Lee, 2016)
product development
Virgin group can offer innovation and improvement in current product accepted by
customer to regain its lost goodwill. Withdrawing from diverse business not a good idea as it can
attach failure stigma with company. Company has to know the reason of failure. To align the
diversified product with company's vision and core value, it can take initiative like rebranding,
identification of customer's need, quality improvement, personalised product, gather data of
target customer about regarding expectation, pricing and packaging modifications, use separate
name for separate industry. Virgin Group's prime vision is “ changing business for good”, that
can be easily achieved by these initiatives (Caselli. and.et.al., 2015)
Branding
Virgin Group desperately need barding effort in its business. Monolithic branding does
work for company as expected. This marketing function focus on acquiring a special place and
image in customer's mind. Company can communicate its vision ,core value, product feature
and benefit to consumer. It must use individual branding. It enables consumer to differentiate its
product form competitor and from its own sibling products. Here Firm need different brand
name for different services because single name has some attached image and expectation of
customer. Like Virgin now earned image as best venture capital firm.Over starching and over use
of same brand name lead to confusion and distrust among customer. So in order to improve this
area, Virgin group must convey the objective and reason for diversification. For instance: if
company wants to change the name of virgin rail it should use promotional tools like (social
media, website) to give more information for product (DiMartino. and Jessen, 2016) . Effective
communication of information help the company in making good brand image and position in
market and in customer mind.
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Illustration 1: Product strategy
Sources: (Product strategy templates,2018)
2. Marketing strategies and programs of The Virgin group
Changing business for good is visions statement of virgin group. This “good”
comprises, thinking for long term result of action taken by company, clearly defined and
measurable purpose for every virgin product and service. Core value of company are supportive
behaviour to employee and consumer, explore new ideas, strike for go beyond the customer
expectation, use creativity to bring positive changes. Virgin marketing team believes in “being
out of the ordinary”. Their marketing strategies has focus on reaching the customer heart. They
welcome experiments in order gain customer trust. Company majorly focus on digital tools for
advertisement rather traditional TV adds. They want to covey massage that virgin care for its
customer(Dinnie, 2015)
Where 5.4 million businesses spend millions of dollar in marketing, Virgin group put its
efforts in product by investing huge amount in diversification, because Company believes that
customer buy products, not brand. Fun and creativity are core value of this multi talented
organization which it placed in centre of its marketing campaign. At the time of launching virgin
Atlantic, company did not have amount so that it can compete with British Airways marketing
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efforts. To tackle this situation, disrupt the stats of que with adventure and fun activities based
adopted by virgin group. Like lee( founder of flash pack) spend $ 800 to visit Rio de Janeiro.
Creative selfie was taken by him on Christ the Redeemer statue. He uploaded that picture on
social media, which goes viral. This selfie communicates the core value of virgin group of being
creative in marketing strategy (Kumar, 2015)Company successfully got its objective of use
creativity and fun activity, in its every business function.
Marketing team of Firm did deep research to know the customer need and preference, it helps it
to please its customer by offering them improved and different product. Diversification in 10+
businesses could be possible only by Intensive market analysis.
11 billion euro profit revenue is result of premium travel facility and increased service quality in
travel industry, which rendered 5.77 million passengers. This betterment in service was
introduced on the basis of sound knowledge of customer behaviour and market, in virgin group
marketing team (Mathews. and.et.al., 2016)
Earlier company faced issue regarding attract potential customer and retain the existing
customer. Problem was solving by taking decision of being competitive in business across the
world. Company follow customer oriented marketing function. For instance, Firm took help of
feedback and suggestion given by customer regarding product, price, promotion, place and
physical evidence. Richard use this information in product improvement, which eventually help
organization to achieve competitive fitness in industry. Organisation got its “ go beyond the
consumer expectation” objective by taking help of product improvisation (Qureshi, Aziz. and
Mian, 2017).
Promotion tool used put positive impression on consumer's mind. Richard Branson has
many photographs with celebrities , which give brand an “elite touch.. These all marketing
practice used by company , target its organisation goal. Like unique promotion help in increase
market share with less marketing expenses. Customer research help in increased the market
share.
Ethics are followed by company by take care of employee well-being, render them open
culture, personalised solution to each employee rather one size treatment. These best HRM
practises also fairly contributed to achieve the organisation goal (Chen. And.et.al., 2015)
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3. Marketing mix and STP of Virgin group's retail business
Marketing mix is appropriate combination of major aspect of marketing that collectivity
contributes to raise the product demand and influence customer's choice. Earlier company's use 4
P'S into consideration but now marketing role has been changes. Current competitive
environment force Virgin group to use 7P. Marketing mix factor must align to organisation
objective (Caselli. and.et.al., 2015) . Following is the marketing mix adopt by Virgin Group.
This perfect marketing mix combination help company in successful diversification.
Product
Competitive product and services being offered by Virgin group. There are so many
products and services are available in company's basket like Virgin Atlantic render commercial
aviation facility, virgin published books and statoney items, virgin hotel, health care product,
financial and banking services, Films, mobile and internet ,consumer electronic gadgets( TV,
fridge, music system), virgin radio station, cosmetic, drink and retail stores.
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Illustration 2: Marketing Mix 7 P
Sources: (component of marketing mix,2017)

Price
Pricing policy of virgin group is highly depends demand of product and affordability of
customer. Six price level are offered to Virgin Atlantic so that client can get value of money.
Premium pricing strategy is used where level of satisfaction is greater. Virgin media and
electronic item are available at low and competitive price both. Electronic industry has large
customer base so it helps company to raise high revenue(Bahl. and Chandra, 2018)
Entertainment packages and game broadband has high price because these products are
configured with the latest software and technology.
Places
Virgin group is committed to deliver its services and product to customer in minimum
time. Company render electronic shopping facility like website,- commerce sites, app, phone and
Email. Customer who want to acquire services of Virgin hotel, airline, financial services, bank
services generally use electronic mode . Direct selling is done by Virgin stores. They are easily
available in airports, malls, supermarkets, tourist places. Selective Distribution policy is chosen
by Firm for its outlet establishments. It has its store in different countries like south
Johannesburg, Australia,New Zealand · Canada and Latin America
Promotion
Company know the importance of E marketing so it comes up with social media
advertisement , you tube story telling videos, creative blogs, referrals and suggestion on relevant
pages & sites (virgin airline ad displays on tourism site and electronic gazettes are showing on
educational sites), search engine optimisation help in taking competitor advantage. Discounts,
offers, packages, product information are given on virgin official websites. Offline promotion is
done by organising charity programs, sponsor sports and educational events, distribute pamphlet
etc (Dinnie, 2015).
People
Customer ,employee are the people of Virgin group. It gives time flexibility to its
employee. Firm focuses on creativity of its employee. Company facilitates personalised T&D
session to employees so that their individual learning can be fulfil. Employee motivation take
care by effective human resource management practices. Training helps employees of Virgin
Group in dealing effectively with customers and provide them high quality services.
Process
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Process in marketing mix deal with distribution the good and service, so that customer
can get desired product with minimum effort or on time. Retail good are being sold with
minimum intermediaries' involvement as company want to offer reason price to customer , where
it follows direct distribution in financial service, airline ticket booking, bank service. Customer
can purchase service just on one click (Kumar, 2015). Effective processes are used by company
in order to deliver products and services to customers in better manner. The Latest Technology
also been used to enhance the customer experience like self check out option, face recognition
technology, the latest payment option etc.
physical evidence
Virgin store has all the essential and luxury arrangements in store. Company use bright
Red colour theme in all its store outlet. Brand focuses on avail the fun experience to its customer
while shopping. Employee also follow the same red colour dress code. Organisation also offer
customer friend Internet interfaces of its website and app. (Mathews . and.et.al., 2016).
STP of Virgin Retail Business
Segmentation Virgin group customer base comprises customer who belong to middle income
group. They look for reasonable priced product with quality. These customers
desire to pay for product with value addition. Company use demographic
segmentation.
Targeting Virgin group target is segment by multi-segment targeting strategy, in this
segment company try to render market mix as per the customer choice, demand
and ability. For instance company use social media advertising for target
younger and print media for adult and old people as this segment has low
acceptance and knowledge of technology. Company target middle income
group people.
(Cacciolatti. and Lee, 2016)
positioning Virgin Group want to get emotional attachment with its customer by using fun
actives and offer customised product to its customer. To achieve this goal
organisation use creative display and humour in advertisement. Positioning
effort are done by company by TV adds.
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4. Marketing functions and its relation with other functional areas
Marketing functions play a vital role in growth and success of any organization The
basic marketing function that any organization adopts to facilitate its marketing strategies are-
Market Planning, Exchange functions, Product designing and development, Distribution,
Standardizing, Grading, financing, Risk taking, Customer Support and Market analysis
(Cacciolatti. and Lee, 2016)
All the mentioned marketing functions are related with and dependent on the other
functional areas of the organization (HR, Operations, Research and Development, Finance,
Legal) and it has been briefly presented in the context of Virgin group, an international service
provider. Cross functional relationship of departments has also been established in the same
context.
Human Resource-
Marketing functions can be successfully managed by a properly skilled labours and
manpower recruited by HR department. Hence, the marketing team has to be in sync with the HR
functions to closely observe and direct them the specifications and requirements of the
employees in the department. Human resource department help marketing team by facilitating
them training and development session to satisfy their individual need. For instance Hr recently
conduct training on soft communication skill for retail marketing team. It enhanced the
employee motivation and confidence. Human resources is successfully attracted the best
potential employee form market, when marketing department communicate Virgin Group's best
Hrm policy. Like people can feel Virgin take for its employee by watching happy and satisfied
team. It attracts people to join organisation.
Operations/Production
Marketing department needs to comply their functions with the operations to increase the
quality of the products/services. This relation is based on the amount of products generated, its
testing, monitoring and controlling measures (Kumar, 2015).
Virgin group has an efficient team for R&D that influences the productivity of
operational team. The budgets designed for the production and related feasibility analyses
conducted by finance department is up to the mark till now. Marketing team help production
market to design the product as per customer need and preference because marketing team has
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all the market data available. Marketing team get benefited by acquire right product on right
time. Availability of stock affect marketing team a lot as it can by reduce sale and profit.
Research and Development-
Marketing functions need strategic research and continuous change to bring creative and
innovative ideas for marketing the product/ services. R&D functions facilitate the marketing of
organizations with new platforms, selects the best and cost effective mode for logistics and
procurement and keep an eye to the new comers and existing competitors in the market.
Along with enhanced IT systems for R&D, Virgin group have skilled logistics for the usage of
advanced equipments that needs proper budget allocation and cost analysis projected by finance
department(Cacciolatti. and Lee, 2016)
Finance-
Marketing functions depends on the finance department of the organization as it
collectively conduct the cost analysis, feasibility analysis according to the sales and future
requirements. Financial functions provides adequate budget to comply marketing functions like
research, promotions, sales & distribution.
The R&D department of Virgin provide it an ample amount of strategies to raise the
market share, shareholders and profits to the company. Virgin group is a vast service provider
and has a gigantic network of cross functional dependency within each of its departments (Bahl.
and Chandra, 2018).
Marketing facilitate market data to every department. This data is used by each department to
bring improvement in their activity. For instance information technology make new app so that
customer can place order by phone. Department take this decision because marketing team gave
them suggestion to do so.
Conclusion
From the above study it has summarised that an organisation who has aim to increase its
market by going to “ put finger in very pie” ( diversification) must be careful. Diversification is
more risky than ordinary business decision because it attached a huge risk.. Before entering into
new product, sound brainstorming must be done based upon accurate data and industry
experience. Brand must know the expectation of customer, product quality offer by other
company. ( we can not say them competitor yet). Separate brand name must be use for Separate
business. Brand name must communicate objective and feature of product. One brand name lead
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to confusion and distrust only. Company must focus on research and developmental as it has to
compete the current big players in industry. Periodic evaluation must be conduct to know the
performance, if company find big gap in expected and desired result, it must take corrective
action on time, if is not been solved by after so many improvement attempts, than organisation
must withdraw itself form that industry. Marketing mix of each product line must be designed as
per the customer need. Marketing research play a very important role for large size company as
it give idea to company about its opportunists and threats. For more efficient and accurate
marketing research organisation can get help of technology ,automation and third party advice
and suggestion. For instance, a retail company which has planned to diversify in auto mobile
sector, can avail all the required information(market information) form professional auto mobile
business advisor. These advisors have enough data, industry knowledge and experience.
Organisation can use its existing marketing channel for new product. Human capital should be
involve in taking diversification decision as they have different idea, it now only help in getting
pool of suggestion, but also enhance employee engagement.
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