Virgin Atlantic

Marketing Case Study

Brand Management Assignment

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History
Richard Branson the 48 year old is the chairman of virgin group a London
based firm. It is a 3.5 billion dollar international conglomerate. Mr Richard
Branson has ventured into an array of businesses such as condoms,
wedding gowns, airlines, financial services etc. In 1970 Virgin kicked off as
a mail order record business in London and soon after that they began
producing and establishing themselves as a leading British recording
studio. In the 1980s Virgin began to expand andcreated Virgin Vision in
1983, Virgin Atlantic Airways and Virgin Cargo in 1984, and Virgin Holidays
in 1985. In 1986 the Virgin Group was listed on the London stock
exchange. In 1988, Richard Branson, decided to buy back all outstanding
shares. In 1992, Richard Branson sold Virgin Music to Thorn EMI which
allowed him to invest more money into Virgin Atlantic and other Virgin
enterprises.
Randolph Fields approached Richard Branson about operating a
transatlantic business class only airline service to New York, Branson
going against the advice of his partners, decided to invest in the Virgin
Atlantic project. The company hired two Laker Airways employees to
provide airline specific experience to Virgin Atlantic. The goal of Virgin
Atlantic was to provide all classes of travellers with the highest quality of
travel at the lowest cost. Later on a teaser advertisement entitled wait
for the English virgin, on June 22 1984 virgin Atlantic launched their flight
from London to New York.
Further it quickly expanded its operations to Miami (1986), Boston (1987),
Orlando (1988), Tokyo (1989), and Los Angles (1990) in 1994, Virgin
Atlantic also started flights to Hong Kong and San Francisco. In 2000-2001
it expanded itself more by featuring adding flights to Las Vegas and Delhi.
Virgin Atlantic offers three core products, Upper Class, Premium Economy,
and Economy. The Virgin Atlantic fleet consists of more than 30 Boeing
747s and Airbuses .Start Design created a liver, Featuring the Union Jack,
prominently on the aircraft wing, based on the three colours- red, purple
and silver metallic while the aircraft tailfins sport the Virgin logo. All Virgin
Atlantic aircraft are decorated with a Vargas painting of a red-headed,
scantily dressed woman holding a scarf.
In December 1999, Virgin Atlantic announced a worldwide partnership
With Singapore Airlines.As per the agreement, Singapore Airlines acquired
a minority 49% stake in Virgin Atlantic for a cost of 600.25 million British
pounds. Also Included in the deal was the provision that Singapore Airlines
would put in 49 million Billion pounds of
Capital, while Virgin Atlantic invests 51 million Billion pounds in Virgin
Atlantic to bring the equity investment value of Virgin Atlantic to 1.225
billion pounds.Singapore Airlines controls 93 aircraft reaching a total of 97
worldwide destinations.

STRATEGIC PLANNING
MISSION
To grow a profitable airline, that people love to fly and where people love
to
work.
SWOT ANALYSIS

STRENGTHS

Virgin Brand recognized by 98% of British Public.

Clients expect good customer service in each separate class
Business/Economy.
Virgin Atlantic introduced innovative technology: including in flight
music, ice cream, games, and movies.
New in flight innovation is offered to gold club holders or J-class with
lounges offering quality food and comfort.
Quality trained employees recruited from other airlines.
Virgin Atlantic is spawned from as a private company allowing for
other Virgin brands and more control.
Richard Bransons innovative entrepreneurial management.
Competitive pricing for business class offers more services.

Partnership with Singapore airlines because they are the minority

shareholder at 49%. The reason why this partnership is beneficial is
because their routes are non-overlapping and the partnership allows
the transfer of core competencies.
Load factor is better than competition; therefore, returns are higher
and value is greater.
Positive publicity, in regards to winning every quality award known
to man.

Weaknesses

Flight delays: need to improve flight efficiency.

The travel routes are limited.
Hot Air magazine separate from traditional airline advertising
magazines including articles and marketing advertising.
Cut routes to Chicago, Toronto, and Cape in relation to the
September 11 tragedy.
Late getting on the Internet Missed the Boat for web site, web
page, and ecommerce.
Richard Branson is a one man manager being the owner and
director of multiple companies.
Costs associated in the overhead of keeping two five star chefs,
lounge, and limoservice.
Virgins reliance on Trans Atlantic traffic makes them more
vulnerable to the drop in demand for travel to and from the U.S.

Opportunities

Strategic Marketing above the rest utilizing by being innovative, fun,

maintaining values, caring, and produce quality.
Technology adds improvements (Galileo) an advanced inventory
system.
In flight Internet connection.
Web site needs to be improved possible weakness for e-commerce
and regular web site navigation.
Generate additional routes.
Virgin Galactic, we are flying into outer space.
Warehouse facility Heathrow, London.
Recession may be an unexpected opportunity for investment.
On-line strategy in targeting branding and ongoing ad campaigns,
through on-line media planning and buying account

Threats

Recession, September 11th will and has affected the entire airline
industry, order cancellations, risk aversion for flying customers.
Brand Dilution by a rapid expanding brand image may be too global
and not focused towards the important products.
Competition for routes British and United.
Fuel prices are fluctuating, which accounts for 15% of total airline
expense.

OBJECTIVES
To maintain a safe customer environment through the necessary security
procedures. Also to concentrate on core competencies by consolidating
routes, directly related to downsizing workforce, to remain profitable while
targeting business class passengers.

STRATEGIES
In order to remain profitable Virgin Atlantic has focused on its core
Competencies and they are:
Sustaining great quality service
Maintaining relationships with their Upper Class customers

Situational Analysis:

The situational analysis involves analyzing and monitoring the past trends,
current
situation and predicting the future situation. This involves the analysis of
the cooperative
environment, competitive environment, economic environment, social
environment,
political environment, and the legal environment.
Air travel is living through perhaps the greatest upheaval in its history.
Liberalization,
privatization, competition, code sharing, alliances, e-commerce and
massive financial pressures
are forcing a radical reorganizing within the industry.

Air travel is one of the worlds largest industries, generating over $300
billion in revenues.
The overall economic impact is far in excess of its turnover, since it
facilitates tourism,
world trade, international investments and economic growth. Moreover,
the airline
industry is central to the globalization that is taking place in many
additional industries.
Developments in the airline industry have been traced back to 1991,
when the
combination of the Gulf War and a United States recession led to a 4%
decrease in
international passengers. Following the 1991 initial growth came from
business travel
as companies became increasingly international in their investments, their
supply and
production changes and their customers. Recently, the increasing use of
the Internet is
further promoting the globalization of trade. Consumers have engaged in
increased
levels of leisure travel targeting worldwide destinations due to increases
in disposable
incomes.
Governments in developing countries realized the benefits of tourism to
their
national economies and facilitated the development of resorts and
infrastructure to
encourage visitors from all over the world. As the economies of
developing countries
have grown, their own citizens have already become the new international
tourists of the
future. A further stimulus to air travel has been industry privatization and
deregulation.
In the early 1980s, most airlines outside of the US were state owned.
Many had poor
levels of efficiency, and they required state aid in order to support some of
their routes.

Now most major airlines have evolved towards, at least, partial private
ownership.
Furthermore, the airline industry is gradually shaking off its historical
pattern of
tight regulation on who can fly where and when. Air travel rights have
typically been
negotiated between countries on a bilateral basis. Although air travel is an
international
business, many airlines still have a national focus, flying mainly to and
from their home
country. However, some markets are moving towards a deregulated Open
Skies policy
allowing freedom of entry and exit on routes.

The US domestic market and the intra European market are examples of
this and
the US has signed Open Skies arrangements with numerous countries
around the world.
This deregulation has given many carriers freedoms to enter new markets,
though the
experience of US domestic deregulation suggests that this initial period of
expansion is
likely to be followed by industry consolidation. The resulting competitive
pressures have
contributed to a declining trend in airline yields, which have provided an
added stimulus
to air travel growth. After adjusting for inflation, airline revenues per
passenger
kilometer are about half the level of 30 years ago. This yield decline has
been matched
by falling costs, assisted by developments in aircraft technology,
increasing efficiency and
between the early 1980s and the late 1990s - falling oil prices. The trend
increasing
stage lengths has also supported the decline in yield per passengerkilometer in
revenue terms (after adjusting for inflation); airline industry growth has
been closer to

3% a year, only just ahead of the average world GDP growth rate.
A number of well-established markets are at or near market maturity. This
is
particularly the case for markets in developed countries that have already
been
deregulated such as the US domestic market. Furthermore, capacity
constraints in terms
of congested airports and air traffic control systems are limiting the ability
of some of the
most popular air travel destinations to expand.
With regard to transatlantic services, Virgin Atlantic has attacked the
British
airways/American Airlines merger as anti-competitive. BA/AA has applied
for antitrust
immunity, which Virgin believes, will 1) destroy competition, 2) raise
prices, and 3)
reduce service. Virgin has sought to make customers aware of their
position through
advertisements stating, No Way BA/AA.

Following the September 11, disaster Virgin Atlantic Airways operated a

full
transatlantic flight schedule, in order to clear the accumulation of
bereaved and stranded
passengers. As of October 2001, the airline grounded five of its 747-200s
and reduced
its activities by around 20% as a result of the long-term effects of
Septembers tragic
events. It is clear to everyone that there will be significantly less traffic
across the North
Atlantic for some time, said privately held Virgin groups chairman,
Richard Branson.
Virgin reduced its capacity across the North Atlantic by cutting its routes
to
Toronto and Chicago. Virgin Atlantic has also trimmed the number of
flights leaving San
Francisco from two to one per day. The company will take all measures to

minimize compulsory redundancies by asking staff to come forward to

take unpaid leave
and redundancy. Virgin Atlantic is attempting to keep all members of the
Virgin family
employed in the Virgin group. For example, staff will be offered the chance
to be
interviewed for employment with Virgin Active, Virgins leisure and health
club
business. Virgin Atlantic is currently engaged in a 30 million expansion
program in the
UK, which will create up to 700 new jobs over the next 12 months.

Virgin Regional Director for the West Coast, Eric Starks, believes that there
will
be a resurgence in the airline industry next year and Virgin will rehire exemployees
before other applicants. Virgin chairman, Richard Branson also anticipates
an industry
revival, saying, By taking this action now, we will put ourselves in a
position from

which to expand again in the future.

Virgin Atlantic has incorporated a strict environmental policy into its

business.
Virgin Atlantic has introduced a number of recycling initiatives both on
board aircraft
and throughout the companys offices. These measures are
environmentally conscious
and cost effective, enabling the airline to assist a number of charities and
institutions.
Recycling is carried out in compliance with Ministry of Agriculture
directives to ensure
the highest health and safety procedures are adhered to. The current
environmental
policy identifies Virgins position with regards to recycling and re-using
paper, printer
toner cartridges, plastic glasses, vending cups, aluminium cans, duty free
bags, duty free
bags, amenity kits, menus, linens, and brochures.

Portfolio Analysis:
Portfolio analysis is the strategic analysis of a particular strategic business
unit (SBU) to determine its profitability and future cash contributions. It
evaluates the SBU based on two parameters, the relative market share
and the market growth rate. These two dimensions reveal likely
profitability of the business portfolio in terms of cash needed to support
that unit and cash generated by it. The general purpose of the analysis is
to help understand, which brands the firm should invest in and which ones
should be divested. This tool is also known as the Boston Consulting Group
Matrix (BCG Matrix in short).
The figure below is shows the interdependency of the relative market
share and market growth in the BCG matrix. This dependency divides the
matrix into four quadrants as shown in the matrix below.

Dogs: Dogs hold low market share compared to competitors and operate
in a slowly growing market. In general and in most cases Dogs are the
weak links of an organization but its always important to fully analyse the
sector before making any strategic decisions.
Strategic choices: Retrenchment, divestiture, liquidation
Cash cows: Cash cows are the most profitable brands and should be
milked to provide as much cash as possible. The cash gained from
cows should be invested into stars to support their further growth.
These are assets that need to be taken care of and the profitability must
be monitored continuously to make sure there is maximum utilization of
the profits. Again, this is not always the truth. Cash cows are usually large
corporations or SBUs that are capable of innovating new products or
processes, which may become new stars. If there would be no support for
cash cows, they would not be capable of such innovations.
Strategic choices: Product development, diversification, divestiture,
retrenchment
Stars: Stars operate in high growth industries and maintain high market
share. Stars are both cash generators and cash users. They are the main
units in which the company should invest its money, because stars are
expected to become cash cows and generate positive cash flows. Yet, not
all stars become cash flows.
Strategic choices: Vertical integration, horizontal integration, market
penetration, market development, product development

Question marks: Question marks are the brands that require much
closer consideration. They hold low market share in fast growing markets
consuming large amount of cash and incurring losses. It has potential to
gain market share and become a star, which would later become cash
cow. Question marks do not always succeed and even after large amount
of investments they struggle to gain market share and eventually become
dogs. Therefore, they require very close consideration to decide if they are
worth investing in or not.
Strategic choices: Market penetration, market development, product
development, divestiture

Virgin Atlantic Portfolio Analysis:

When it comes to Virgin Atlantic, there is no Star. The cash cow is the high
end section. As explained this area has high share of a low growth market
and generate higher cash revenues. This high end product focuses on well
off customers and business passengers. The costliest ticket available,
costs around $9,000, and there are about 50 seats available in this class,
therefore the upper class generates much higher revenues compared to
premium economy and economy. Dogs are the SBUs that have low market
share in low growth market. Virgin Atlantics economy class can be
considered as a Dog. Question marks are SBUs that have high potential
but will require great resources to build market share. The Premium
Economy is a question mark as it has potential to be a cash generator.
Premium economy targets cheaper flying business class passengers and
high-end couples. There are 38 seats in this class and tickets generally sell
for around $3,000.Economy class focuses on families and groups flying
together. Tickets for economy class are priced around $500 and there are
271 seats.
COMPETETIVE ANALYSIS
Segmentation

By analyzing the general and industry environment of Virgin Travel, one

can identify Virgin Travels opportunities and threats. The conditions in
our environment that Virgin Travel needs to take advantage of to become
more profitable include the business travel sector, the international
environment, and retaining current customers. The conditions in our
environment that endanger the integrity and profitability of the companys
business are our competitors and fluctuations in the prices of the
economic environment. The general environment factors to be considered
are demographic, sociocultural, technological, economic, global, and
legal/political.
Virgin Atlantic caters to different demographics. Most travellers are
business travellers and leisure travellers. They allow children above 5
years of age to travel and those who are below 5 years of age need to
have a guardian along with them while they are travelling ( guardians age

should be 16 and above) . They have identified a set of rules for the
children who are not accompanied by their parents. They also allow
trained pets who accompany disabled people. Demographically, the travel
industry contains many population sizes, ages, and ethnic mixes. Virgin
Travel deals highly with people that travel for business. Consumer
consumption for travel includes such facets as hot air balloon travel,
space travel, flight travel, car travel, and boat travel. Virgin has targeted
that most of its consumers want a travel industry that can provide
technology, low fares, and good customer service. Virgin airlines offer
unrivalled value with low fares and innovative features like touch-screen
seatback entertainment, power outlets, mood-lighting and customdesigned leather seating with a deeper, more comfortable pitch.
Targeting

The airline decided early on that its target market would be business men
and leisure travellers. 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 identifying
market segments; it allowed the airline to focus completely on their target
audience. It is easier to please a small select group of customers, than a
large diverse on. Thus the airline has two classes, a business class and
economy class. The business class passengers are primarily aged 35 to 45
and earn about 50 and are usually on a business trip. Economy class is
split evenly between business trip and leisure trips, average age is 41.
(Virgin Atlantic Student information pack)
Hence Virgin Atlantic does not only target business customers but also
looks out for leisure travellers offering the customer experience to be
more flexible with respect to their requirements.
The main important function that Virgin Atlantic did is that it realised the
market opportunity which was at hand i.e. the opportunity to gain a
considerable market share through their effective marketing strategies
that revealed all the fun experiences that they had for the customers to
explore.
Quality, Fun, Innovative, Honest and Caring are some of the features
that the airline is known for.
As a result, the airline has enjoyed a constant increase in its customer
base.

In 1987, the airline had a 1,123,371 passenger count, by 2003; this had
considerably increased to a 38,571267 passenger count

Positioning

Having Happy customers ultimately, is their desired objective and thus

they have inculcated this desired objective in every activity of theirs to

achieve this goal. As stated earlier, Virgin Atlantic is a very popular airline.
Due to its successful efforts at satisfying its target market, these
customers view the airline in high regard. They will be quoted as saying
that it is dependable, comfortable and the best airline around. Such
statements lift the airline higher over its competitors. Virgin America truly
has a great product having taken its lead and brand essence from the
mother ship at Virgin Atlantic. Great product, consistently delivered by
attentive staff, backed up by smart edgy marketing will win every time;
they have extended their unique brand personality to the airline business.
Their product offering also reflects this - from the superior entertainment
system to the uniforms. Virgin is a modern brand that understands the
needs of today's consumer.
Virgin Airline is a brand that is known for attracting their customers by
being innovative and having fun experiences for their customers. There
are spacious arrangements in the flight for the customers comfort, a lot of
inbuilt entertainment systems and most importantly is what they believe
in; high customer service
This is what sets them apart beside the fact that they truly care (which is
so rare these days), is that they seem to truly live up to their slogan; this
is How to Fly. This is known as positioning.

Marketing Tactics
Differentiation
A marketing process that showcases the differences between products.
Differentiation looks to make a product more attractive by contrasting its
unique qualities with other competing products. Successful product
differentiation creates a competitive advantage for the seller, as
customers view these products as unique or superior.
Virgin Atlantic has differentiated their product by taking the customers
expectations one
step further through communication with the customer. A prime example
can be seen in
providing in flight ice cream, something other airlines do not offer.

Marketing Mix
Usually referring to E. Jerome McCarthy's 4 P classification for developing
an effective marketing strategy, which encompasses: product, price,
placement (distribution) and promotion. Virgin Atlantic has sought to offer
a fun and innovative product with high quality service and convenient
locations for the customer. Virgin Atlantic offers flights worldwide in three
distinct classes: upper class, premium economy, and economy highlighted
below.

Upper class
A first class ticket on Heathrow or Gatwick express, provides limo services
from Paddington Station and Victoria Station to the customers final
destination, and a two-day car rental for each sector flown. Virgin Atlantic
offers the exclusive use of clubhouses (for upper class passengers),
including Virgin touch beauty salon-massages, facials, and barber services
at Heathrow and Gatwick. Also included are business facilities, restaurantstyle dinning
and a full-service bar.
Latest offerings

Virgin Atlantic passengers will be the first air travellers to

experience the benefits of pioneering Google Glass technology as
they arrive at London Heathrow airport from 11 February 2014
onwards
private security channel for Upper Class passengers
"Limobike" motorcycles; Heathrow Express train from London
Paddington;

Premium Economy

Dedicated check-in desk

Priority baggage handling
Flexible ticket - no penalty for last minute changes
Separate cabin
Comfortable, wider seats with up to 6 inches of extra leg room
Seatback video screen
Pre-flight champagne
Fruit throughout flight and ice cream during movies
Free amenity kit
Fast track-priority service through immigration

Economy

Seatback video screen with up to 43 channels of movies, music, and

video games
Choice of three entrees, including a vegetarian option
Complimentary beverages, including cocktails
Free amenity kit
Childrens services including K-iD backpacks, TV channels and
special meals
Ice cream during movies

Promotion is the publicized announcement designed to attract customers.

Virgin
Atlantic is continuously promoting through various media. It employs all
elements of Integrated Media Campaign for this purpose.
Selling
These are efforts to induce the consumer to buy what the company has to
offer
set in line with the marketing strategy. Virgin Atlantic targets specific
customers by
communicating the overall comfort and quality of the airline by providing
identifiable
customer service. Virgin Atlantic sells tickets primarily through the
Internet, travel
agents, and direct communication with customers.

Marketing Value
Brand Values
The Virgin brand has been built on Bransons shrewd ability to exploit
weaknesses in competitors customer service skills, as well as a flair for
self-promotion.
The Virgin brand revolves around delivering value pricing, high quality,
fun, great customer service, and innovation, and being authentic, peopleoriented, hip, and associated with Virgin founder Sir Richard Branson and
his personal reputation.
Virgin group is known for the following values:

Fun = enjoyment and humor, not offensive and incompetent

Value for Money = Simple, not cheap
Quality = Attention to detail, not expensive for the sake of it
Innovation = challenging convention, not different for the sake of
being different
Competitive Challenge = responding to consumer needs, not being
irrelevant
Brilliant Customer Service = empowered, not unprofessional people

Atlantics web page describes their brand image encompassing the

following words:
caring, value, fun, innovative, quality, and honesty.

Virgin Atlantic was originally conceived by Richard Branson to offer the

best
possible service while delivering the best possible value at all times.
Internationally
recognized as a fun-loving and highly innovative brand and one that is
admired for its
Friendliness, intelligence, and integrity.
Service (The Branson Factor)
This is the companys principle for increasing the quality of service
delivered to
its customers. Virgin Atlantic strives to offers service to satisfy total
customer needs.
Mr. Bransons entrepreneurial attitude towards innovative publicity is seen
in his
fearless reputation for antics such as ballooning across the Atlantic Ocean
Process
Process is the companys principle for involving every employee in the
customer
satisfaction process, both directly and indirectly. Virgin Atlantics process
relates to
both internal communications through employees and external
communication through
strategic alliances to further capabilities. The Virgin Atlantic management
structure
allows all head officers to report directly to Richard Branson. Sir Richard
Branson is
himself active in communicating with employees.
A brand is not just a type of product manufactured by a particular company
under a particular name but it includes a complex bundle of images and
experiences in the customers mind. It represents a set of promises made by a
company about a particular product.
Several companies have used various mediums and means to market their
brands and themselves but Virgin has created a niche of itslef in this regard. It
has been able to explot its competitors weaknesses and juxtaposed them against
their strengths. It is one the most recognized brands worldwide according to
Interbrand.
Virgin Airways hs always been unconventional when it comes to marketing itself.
Its founder, Richard Branson has been known for being adventurous, innovative

and fun. He has made the brand Virgin popular via various audacious activities
which are elicited below.

Richard Branson on one of his many adventures.

Richard Branson dressed up as an airhostess as part of a bet with Air Asia boss
Tony Fernandes.

The website of Virgin Atlantis (Virgin airways) clearly looks the way the brand is
positioned, standing for care, value, fun, innovation and quality. Compared to
websites of competitors like British Airways, US Airways and Lufthansa, the
website of Virgin Atlantic is a lot more vibrant and colourful.

Service (The Branson Factor)

The companys fundamental principle emphasizes on increasing the quality of service
delivered to its customers. Mr. Bransons entrepreneurial attitude towards innovative
publicity is seen in hisfearless reputation for antics such as ballooning across the Atlantic
Ocean. Virgin
Atlantics Managing Director, Steve Ridgeway is an equally passionate advocate of brand
values and shares Richards irrepressible spirit of adventure, having been his co-pilot in
the record-breaking speedboat crossing of the Atlantic in 1986. Virgin Atlantics
management attitude has played an important part in the widespread global success of the
Virgin brand and promoting the values with which consumers can identify. In the
following quote, Sir Richard Branson clearly represents the ingenuity within the Virgin
Empire.
Processes:
Process is the companys principle for involving every employee in the customer
satisfaction process, both directly and indirectly. Virgin Atlantics process relates to
both internal communications through employees and external communication through
strategic alliances to further capabilities. The Virgin Atlantic management structure
allows all head officers to report directly to Richard Branson. Sir Richard Branson is
himself active in communicating with employees

Integrated Marketing Communications

Integrated marketing communication is defined by the American
Association of Advertising Agencies (AAAA) as the a concept of marketing
communication planning that recognizes the added value of a
comprehensive plan, that evaluates the strategic roles of a variety of
communication disciplines - for example general advertising, direct
response, sales promotion, and public relations - and combines these
disciplines to provide clarity, consistency, and maximum communication
impart.
Integrated marketing communications represents all the elements of an
organisations marketing mix that favourably influence an organisations
publics. Organisations communicate with their promotional tools but also
through their product, pricing, distribution and staffing strategies
Virgin Atlantic is the most successful independent airline in the world, its
marketing efforts stress the service element as a major differentiation.
The airline is very close to its market, it revolutionised the common
tripartite configuration of classes offering first class service at the price of
business class. Sub brands are the well known Upper Class, Premium
(formerly Mid Class) and Economy. It rewards loyalty through its Freeway
loyalty scheme and communicate to the market through its leader
improvisations, advertising campaigns focusing mainly on products and
direct marketing. Its Customer Relations Department (formerly Steering
Group) is key to maintain full customer satisfaction.
Because the market is the key to success it is essential airlines keep in
contact with it, continually monitoring and collecting feedback. Virgin
Atlantic do this through several channels:

sales teams, sales reps, reservation agents and in-flight supervisors;

quarterly analysis of customers expectations through its On Board

Surveys which cover such areas as check-in, lounge facilities, cabin
seating, entertainment, catering and cabin crew;
industry surveys (syndicated) which give data on the company
versus the competition;
staff in-flight survey questionnaire (150 questions) to check
standards and act as an ideas generator for improvements;
Richard Branson actively participate to research talking to
passengers on board and inviting members of Freeway scheme to
unique venues for a day.
occasional tailored research for corporate customers;
focus groups on specific issues to capture passengers who are not
members of Freeway scheme (four at a time with 6-8 members in
each group);
on board Comment Book designed to ensure every Upper Class
passenger has the chance to comment quickly and easily at any
time when it is passed around the cabin by a flight attendant;
mystery customer research often used to test the service provided;
customer relations department to receive direct complaints or
suggestions.

All this feed-back permits the company to be fully aware of the degree to
which it delivers to customers expectations and it also permits a quick
reaction to fill in perceived gaps or satisfy new needs. When supported by
a proper use of information technology it helps the airline to stay closer to
its customers speeding up operations and supporting several aspects of
the delivery: customer service, distribution activities, revenue
maximisation, communications, overall planning and so on
Virgin Atlantic looked to strengthen its recovery from recession with the
UK launch of a 10 million global marketing campaign. The new campaign
has been designed to build the airlines brand presence across the globe
and to stimulate increased demand for travel both to and from the UK.
"Your airlines either got it or it hasn't" has been created by RKCR/Y&R,
and follows the award winning success of the airline's "Still Red Hot" 25th
birthday campaign last year which was listed as one of the top ten
marketing moments of 2009 by Campaign Magazine.
The campaign will feature a series of print, outdoor and online
advertisements promoting the airline's Upper Class product. Through
iconic photography, the creative brings to life the glamour, style and
comfort that comes with flying Virgin Atlantic Upper Class. As the headline
of the campaign suggests, Virgin Atlantic is the definition of "Je ne sais
quoi" - setting it apart from its competitors.
Paul Dickinson, Director of Sales and Marketing for Virgin Atlantic: "People
always tell us that there is something special and different about

travelling with Virgin Atlantic and this campaign was designed to illustrate
that certain magic ingredient that sets us apart from the competition."
Virgin Atlantic uses a wide range of marketing techniques. Advertising
activity
includes direct mail, TV, press, magazines, outdoor posters and taxi sides,
all featuring
their distinctive logo, the flying lady. Advertising is used to encourage
people to fly
Virgin Atlantic, to raise awareness of new product developments and to
inform customers
about new routes. For example, NBC primetime series Friends featured
Richard
Branson with the characters flying Virgin Atlantic to London.57 In 2001,
Virgin Atlantic
spent 8 to 10 million dollars on a campaign linking Virgin with the movie
Austin
Powers: The SpyWho Shagged Me. They painted an enlarged Austin
Powers on the
tail, and Virgin was rebranded Virgin Shaglantic, featuring phrases such
as: There is
only one virgin on this billboard, baby!58.
Virgin Atlantic operates a frequent flyer program, the Flying Club, to
encourage
loyalty in its customers. In addition to offering miles that can be
exchanged for free
flights and other rewards, Flying Club members are offered other support
services and
clubhouse access. Virgin Atlantic has pioneered Internet marketing in the
airline industry.