Organizational success largely stems from the basic strategies put in place by the management in order to enhance the popularity of the company’s brand. Depending on the effectiveness and the intended outcome, the approaches may be directed towards enhancing the different segments within an organization which may involve the sales, accounting, production, manufacturing or the marketing departments. This report comprises the outcome of the analysis of the Virgin Australia Airlines company in Australia with a special reference to its marketing orientation, types of products, customers, the competitors as well as the dynamics of the overall business environment. The report shall also involve the development of a marketing strategy and tactics in addition a recommendation of some of the approaches the company could embrace in order to do away with its current operational challenges.
Virgin Australia Airlines is one of the largest airlines in Australia apart from Qantas. It uses the Virgin brand and has been considered one of the most outstanding airlines in terms of fleet. The company which was founded in 1999 as part of the Virgin Group projects has since grown to be become the second most successful airline in Australia especially after the downfall of Ansett (Aldrich, 2008). The airline currently has a direct service to cities such as Brisbane, Melbourne as well as Sydney. It uses various fleets which include; the airbus, embraejets, narrow body Boeing as well as the Boeing wide body.
The company which started small has grown into a word class organization by constantly using the customer feedbacks to improve its services. The company’s mission is to deliver a long lasting appreciation of capital through investment in the transport and communications industry. The communication of the company’s core values is summarized in its popular slogan “Now You Are Flying.” Despite the fact that the company’s marketing strategies largely ride along the wave of the Virgin Girl brand; the company has taken part in various sponsorship deals which actually acts as one its marketing platforms. Virgin Australia uses sports sponsorship to market its brand. For instance, it is not only the official sponsor of the National Basketball League but also the title sponsor of Brisbane Bullets which takes part in the same basketball league. The company also sponsored the Rabbittoh’s rugby team who in turn would market its brand by putting on match jerseys bearing the company’s logo. In addition, the company airs a number of advertisements on TV and using billboards with the aid of different campaigns. One of the campaigns is the “Get What You Want” project which was successful during its inception and did a lot in increasing the consumers’ awareness about the company’s brand. Virgin Australia Airlines does not only operate within Australia but has its operations spread to various other regions across the world for instance the United States and other parts of Europe (Anjos, 2005). The company therefore deals with both law cost and first class flights. While the former is meant to capture the local market, the latter is aimed at offering quality services to the international clients including tourists and international business people.
Company
One of the company’ strong holds is its widely applied incorporation of technology into most of its operations. In order to enhance the connection between the flight attendants, the pilots, controllers and other company employees, the company uses a sophisticated communication network aided by the availability of various technological tools (Baker, 2007). The company’s use of mobile computing in enhancing its brand promotion and customer relation strategies acts as another key strong point. The other strength is the company’s good understanding of the local market hence coming up with a variety of packages which easily embraces each member of the society despite their class.
Various controversies have a risen over Virgin Airlines treatment of persons with disabilities. A lawsuit was settled against the company in 2005 by a client who felt discriminated as a result of his condition. Some of these policies in addition to lack of stable prices act as the company’s weaknesses hence the need to make the necessary adjustments The company’s alliance with other international organizations provides the right opportunity for growth and expansion. The company works with various international organizations like United Air which enhances its exploration of the foreign markets. The rise of the smaller airlines and the presence of Qantas act as the company’s main threat as this means the stability of its market is not necessarily guaranteed (Bauer, 2007). However, the company’s resources especially in terms of the number of flights and a dedicated human resource serve as the main reason for its success. It currently has narrow body and wide body Boeing, Embraer jets and Airbus as its major resources.
Customers
The Virgin Australia serves a wide range of customers which may range from local travellers to international users. Local flights mainly involve internal business people and tourists moving within the country but from one city to another. The international flights are meant for international business trips as well as tourists travelling in and out of the country from various destinations across the globe.
Collaborators
The success and strength of Virgin Australia can be attributed to the presence of a good number of supportive collaborators whose input in the company’s operations has played a vital role in enhancing efficiency. The collaborators involve other airlines with which the company has made networks and links specifically with the main aim of exploring the external markets. The collaborators include; United Airlines, Singapore Airlines, Air Berlin, Air New Zealand, Alitalia, Delta Airlines, Etihad Airways and South African Airways just to mention but few (Beane, 2007).
Competitors
The leading competitor to Virgin Australia is Qantas which is actually the largest airline in the country. A good portion of the local market is majorly shared between the two companies. However, there has been the emergence of other smaller airlines which offer local flights especially for the economy class. The company has however put in place the right strategies to ensure that it maintains a competitive edge despite the dynamic nature of the market.
Context
The company has made a lot of strides in enhancing its contextual environment especially through the incorporation of technology in most of its operations. At the same time, the use of sports sponsorship and advertisement campaigns to market its brand has proved effective so far. However, the company’s exploration of the foreign market has been influenced by a number of factors which include government policies, variations in political systems, changes in consumer preferences, diversity as well as differences in the level of development as one moves from one international environment to another. The international market being the company’s largest ought to be addressed with the best approaches hence the need for the company to have an effective strategic plan (Bernhard, 2008).
Market Research and Intelligence
The company’s use of effective marketing strategies has enabled the creation of an effective link between the company and its clients. For instance, by sponsoring the National Basketball League, the company has access to a wide base of both loyal and prospective customers (Nelson, 2007). During the matches and other promotional occasions, the company’s sales and marketing representatives interacts with the public with the aim of informing them of the available packages and related costs. This is the very platform where the clients’ feedbacks are established and the necessary adjustments implemented. At the same time, the company uses its website which is not only user friendly but also quite interactive to gain knowledge about the customers’ feelings with regard to the services and products offered.
The company also makes a periodical analysis of its performance both in the local and international business environments (Bettman, 2007). During this process, the company establishes the variation in the number of clients over a period of time. If a decline is noted, the clients are followed up through the database so the company can establish the company to which they could have shifted their allegiance. Through this, Virgin Australia is able to have information about the existence of new competitors who actually act as threats to the company’s market stability.
In order to monitor the dynamic nature of the business context, the company uses both technological approaches in addition to information obtained from the company representatives. The representatives are located in various locations both at the local and international levels. Through the online media which includes the use of internet, company website as well as the social media Virgin Australia is able to monitor the trends in the various contextual elements which have a direct impact on the business operations (Binggeli and Pompeo, 2002). For instance, through online networking, the company can have access to information about a new government policy on foreign investors as relayed to them by individuals located in these regions. With this Intel, the company is able to come up with the most appropriate counter strategies aimed at countering these changes and hence ensuring a good grip on both its local and international markets.
The collaborators play a vital role in assisting the company to achieve market intelligence. First of all, the fact that the collaborators are situated in various regions across the continent and beyond gives Virgin Australia an automatic access to information about the market situations in these areas. The collaborators and sponsors also offer the necessary support to the company both in terms of materials, resources and vital information. The company’s collaborators also support the company through knowledge management and sharing of information which may involve management strategies (Currie, 2009). When these strategies are effectively implemented, they go a long way in enhancing marketing intelligence. The figure below summarizes the market intelligence plans.
Marketing Strategy
One of the key objectives of a business organization involves putting in place the most effective management methods which ensures that it remains competitive in the relatively dynamic corporate world. Keeping a competitive edge over the others would therefore mean an organization is consistently assured of the stability of the market for its products and services. The management of Virgin Australia has remained focused on achieving this particular objective especially through arbitration which involves networking with other firms (Daft and Armstrong, 2009). However, a more objective model ought to be used in order to enhance the availability of better market opportunities. For the marketing strategy, the STP model which involves segmentation, targeting and position is recommended.
Using the various media, the company can identify the specific locations in which the consumer reception is high. At the same time, the client feedbacks on services offered in addition to the changing reports on customer numbers in a given region can be used to deduce the extent of customer loyalty. Virgin Atlantic can consequently focus on such areas as its strong holds hence pumping more of its marketing strategies (Dimofte, 2010). The choice of target market should also depend on the consistency of the users in a given region in addition to the changing policies, business environment and consumer preferences especially in international market environments. The other factors that the company could consider before settling on the target market include: changing lifestyles, geography, psychographics, demographics, benefits as well as individual beliefs and values. The target market ought to be such that the population of continuous users is higher, the weather conditions for landing and taking offer are conducive enough, the peoples’ lifestyles and consumer expectations are practical and hence within the company’s reach to satisfy (Doganis, 2006). The market can then be segmented as summarized below:
After identifying and segmenting the market according with reference to the factors mentioned above, the company can then assign value to each of these segments depending on the projected benefits likely to accrue from the venture. Using indicators such as past outcomes on return on investment, the company can establish the benefits. The operations and marketing strategies can therefore focus on the specific segments on which much value has been attached. For instance, Virgin Australia’s collaboration with United Airlines has made it easy for clients to fly easily from the United States into Australia and back. This strategy has also enhanced the market for the company’s services in the United States. Such arrangements have also seen the airlines capture a good portion of international markets for instance in Asia through Singapore Airlines and Africa through South African Airlines (Erdem, 2008).
Once the market segments have been identified and value attached to the most promising regions, the company can then position itself strategically in these areas. Proper position play a crucial role in enhancing customer relations since the client’s accessibility to the company’s products and services is greatly enhanced. Position can be achieved by enhancing the transport and communication networks within and around the organization’s location. Through this, the prospective clients can easily retrieve the information they require before securing the company’s services. Good positioning would therefore offer the company an appropriate platform through which it can access the market and hence promote its brand through various promotional strategies.
Market Tactics
To support the marketing strategy, it would be important for the company to come up with the relevant market mix strategies. In line with this approach, Virgin Australia ought to come up with a practical framework which would be necessary in stabilizing their already existing market. The market mix model comprises 7Ps which include; product/services, promotions, places/access, physical evidence, people, partners and prices (Hakansson, 2002).
For an operative market mix strategy, it would be recommended for the company to know and establish the various methods of developing its services. For instance, it can work on ways of improving the standards of the services offered during flights. This could include introduction of more aspects of entertainment, serving of better quality foods and beverages to the passengers in addition to revamping the general customer comfort as they fly. The image of the brand could as well be improved through maintenance and introduction of new and better management approaches (Halstead, 2009).
The second recommendation for the market mix strategy would be price alteration. In this case, the company can analyze the overall reception by the customers to the current product prices (Andersen, 2001). This evaluation can allow the management to make the necessary adjustments to prices hence ensuring the ranges are within the confines of the customers’ financial abilities. The third recommendation would involve the company considering the new distribution options that would help increase the accessibility of the services. This would include the establishment of appropriate infrastructure and various subsidiaries in different locations within the target market. The company could also achieve this by increasing the number of flights to cater for more clients depending on the rate at which the need arises (Heracles, 2009).
The fourth element is promotion. In this case, the company would be required to evaluate and establish the most appropriate strategies that can be put in place in order to add value to or substitute the various media channels used for promotion. This could include offering gifts and discounting prices for the loyal customers in a bid to have a good grip on them and also encourage the others to use the company’s services. The process of promotion should not only be cost effect but ought to be aimed at reaching a wider audience (Bitner & Booms 2008).
The other tactic is physical evidence where the company may need to install facilities that are appealing to the clients. This is not only attractive but also reassures the customers of the quality of services offered. The approach here may involve putting up impressive building, a dedicated staff and a user friendly website in case of online interactions. The other two elements in this model include the people and partners (Kilbourne, 2010). With respect to this, Virgin Australia Airlines may need to have a good knowledge and understanding of its people including both the human resource and the clientele. Knowing their skills gaps would be essential in knowing the right approaches in dealing with them for business effectiveness. Finally, the company needs to seek new partners in addition to managing the existing ones as this increase its scope and give more room for expansion.
Conclusion
The report above entailed a detailed analysis of Virgin Australia in terms of its marketing orientation and strategies. The discussion reveals that the company’s success over the past years could be attributed to the effective management approaches established to enhance brand popularity and marketing. With more input and consideration of the recommended strategies, the company is bound to hit greater levels in terms of performance and return on investment.
References
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