Marketing Mix- Virgin Atlantic

1112 WordsNov 26, 20115 Pages
Virgin Atlantic’s Marketing Approach Introduction Britain’s the second largest carrier service. Its huge popularity has ensured its success worldwide. This success is also due to a strategic plan implemented buy Virgin Atlantic. This presentation will attempt to point out some of these key strategies Isolating Its Target Market The airline decided early on that its target market would be business men and leisure travelers. By catering solely to this target, virgin created a niche market for itself giving it a slight advantage over its competitors, who at the time, dealt with all types of customers. This is market segmentation. [ (identifying-market-segments) ] It allowed the airline to focused all its efforts on ensuring its target…show more content…
[ (Virgin Atlantic Student information pack) ] Economic Elements The airline has to consider the environments economic situation as it conducts its business. It would be unwise to have the same air fares in Kenya as you would have in Switzerland or UK. This allows the company to retain customer loyalty in different countries, while still maintaining a profit margin. Also the airline now has other branch businesses i.e. investment banking which raise the company’s overall revenue. It has had a net worth of £ 1.225 billion in previous years. In fact the company has seen increasing profits since its inception, from £ 106.8 M in 31 July 1989 and 208.8 M in 31 July 1990 to £ 1500 M in 30 April 2002. [ (Virgin Atlantic Student information pack) ] Competitor Elements To maintain its lead over competitors, Virgin Atlantic is constantly forced to improve its services regularly. The airlines competitors keep Virgin Atlantic “on their toes” so as not to lose out on their target market. For as long as the services remain of high quality, than they need not fear the competition as much. They could even raise prices to increase profits and not fill the dent in customer loss. Customer Elements The airline industry is fundamentally a service industry. Thus its focus is customer satisfaction. Its standards rise and drop at the sway of customer feedback. Its

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