Virgin Atlantic Airlines _ Vijay Ahlawat

8/8/2019 Virgin Atlantic Airlines _ Vijay Ahlawat

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Virgin Atlantic Airways-Ten Years After

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Created By: Vijay Ahlawat


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The Origins of the Virgin Group

1970-Branson founded a mail-order record business

called Virgin.

1971-The first Virgin record shop was opened. 1978-The Virgin nightclub opened.

1983-Virgin Vision was created.

1984-Virgin Atlantic Airways and Virgin Cargo.

1985-Virgin Holidays.

1992-Branson sold Virgin Music to Thorn EMI.

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The Creation of Virgin Atlantic Airways

Richard Branson was approached by Randolph Fields, a

31-year old man who wanted to start a transatlantic

airline.

Learn the experience of Laker Air.

Leased a second-hand 747, and has a sell-back option.

Create the airline within 3 months.

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Intro.-Richard Branson

Learning disorder.

Write pornography in the library.

Donate 3 billion dollars to helpthe recovery of global warming.

Travel around the world with a balloon.

The headmaster had told him thatBranson, I predict you will either

go to prison, or become a millionaire.

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Early Years(1984~1989)

From London (Gatwick Airport)

1984 to New York

1986 to Miami

1987 to Boston-arrive

1988 to Orlando

1989 to Tokyo

1990 to Los Angles

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Virgin Classes

Upper classes & economy classes.

Offering a first class service at less than first classfares.

Special service for children and infants.

Introduced its Mid-class in 1992 after realizing that 23of economy passengers traveled for business.

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Service the Virgin Way1

Service Concepts

-OriginalKeep up customers interest by keeping

service at the forefront of activities.-Spontaneous :Aimed to be proactive, not defensive.

-Informal.

-Turn flying into a unique experiencenot just to move

passengers from one place to another.

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Service Recovery

-It handled complaints from Upper Class passenger

within 24 hours, those from Economy Class flyers

within a week.

Service the Virgin Way2

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Innovation

Introduce video entertainment.

Controversy over if smoking should be permitted.

Automatic defibrillators to three-person special facilitiesunit.

The Virgin Clubhouse in Heathrow and Hong Kong.

Motorcycle rides -Honda PC800.

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CustomerOrientation, Virgin Style

Understand customers needs & go beyond their

expectations.

Price consciousness & rising service expectations.

Customer Feedback-questionnaire, informal interview.

Fun & entertainment airlines.

The staff are more exacting in evaluation than the

customers.

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Virgins People

The ideal employee: Informal But Caring.

Involve the management and staff.

Employees discuss Richard Branson with respect andadmiration.

Stimulate the individual.

Open to suggestions and innovations.

-Call Richard Branson if necessary.-Formal suggestion scheme.

-Encourage innovation.

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Virgins Main Competitor

Brand Equality Survey

perceivedstrongest

brand name intransatlantictravel(% ofawareness)

Spontaneousawareness

(%)

Usage (%) Rating ofbrand

names(0-100)

BritishAirways

70 96 93 85

VirginAtlanticAirways

24 74 48 80

Source: Business Marketing Service Limited(BMSL). Based on 141

interviews of executives from the U.K.s top 500 organizations.


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Marketing Activities

Virgin Freeway frequent travelers program.

Run in partnership in order to compete with BA.

Unveil a promotional campaign targeted at BA

passengers who had never tried Virgin.

The Virgin Atlantic brand is franchised.

Gain publicity for the airlines products and services

and to show how much better Virgin is than thecompetitors.

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Weakness

Marketing Strategy

-Wild image is not good for all customers.

-Low trial rate.-Small networks.

Service and Organizational Capabilities

-For how long can staff be kept motivated?

Dependence on Branson

-Value of Virgin Atlantic Airways without Branson?

-Real value of Virgin brand?

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Discussions

Crazy OR SMART ?

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Documents

Virgin Atlantic Airlines _ Vijay Ahlawat