Marketing in the different sectors of tourism

Virgin Atlantic is the second largest long haul airline in the UK and it is a popular and well known airline all around the world. It is also the third largest European carrier over the North Atlantic and over the years has rapidly grown and includes destinations in the US, Caribbean, Far East, India and Africa.

Virgin Atlantic flew its first flight in 1984 after Richard Branson who is the owner announced to the world that a high quality, value for money airline would begin operating within three months. After 10 years from its launch the airline had flown over 1 million passengers and started bringing up services onboard. It became the first airline to offer individual TVs to their business class passengers. Then In 1992 Richard Branson made a huge investment. He sold his Virgin music store and invested the profits into Virgin Atlantic, improving on an already great service. Within the same year the first super economy service was launched and it then went on to become an award winning Premium Economy.

In 2003 the Virgin Atlantic’s revolutionary Upper Class Suite was launched; it was the longest and most comfortable flat bed and seat in business class. Then in 2007 Virgin Atlantic went on to launch brand new check in facilities at Heathrow Terminal Three. For the Economy and Premium Economy passengers Zone A became wider and more spacious, enabling passengers to check-in at kiosks in a faster and more stress-free way. For the Upper Class passengers, an Upper Class Wing which offers private security corridor so passengers can speed through the terminal to the Clubhouse quicker than before.http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/history.jspaccessed 01/08/2011 at 17:17

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In 2008 virgin Atlantic went on to operate a pioneering bio fuel demonstration with Boeing and engine manufacturer GE Aviation on a 747 between London and Amsterdam. This became the world’s first flight using bio fuel by a commercial airline. Then In June 2009, Virgin Atlantic celebrated its 25th anniversary with a series of special fares, campaigns and events in the run-up to its birthday, as well as promoting red hot fares to red hot destinations.

I chose virgin Atlantic because I personally have travelled with them on many occasions and I receive the best service any other airline could offer. Due to its good reputation it appeals to a much wider market as it is a reliable and trusted airline and has a lot to offer its customers.

Market it faces today

Virgin Atlantic uses a wide range of marketing techniques. It promotes its products and services through a wide range of sources which include direct mail, Television, press, magazines, outdoor posters and taxi sides, all featuring their distinctive logo.

Virgin Atlantic targets specific customers by advertising the comfort and quality of the airline. Their tickets are sold through various sources such as the Internet, travel agents, and direct communication with customers to suit different customer needs.

To attract more customers 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.

On the aircraft passengers experience spacious setting arrangements, state of the art in-flight entertainment system, and most importantly a high level of customer service. In addition, Virgin Atlantic offers a distinctive upper class service at business class prices.

The Virgin Atlantic market is segmented into classes. There is the economy class where passengers are a much broader group, travelling mainly for leisure and are evenly spread across most socio-economic groups, and age ranges. Then there is the

Premium economy class where there passengers are split evenly between travelling for business or leisure and most are male, average age 41. Those travelling for business purpose in this class are often doing so because their company operates an economy travel policy. Lastly there is the upper and business class which is the virgin atlantics major target market as they bring in more money. They are predominately travelling on business and are usually male, 35 to 45 years old and earning 50K plus per annum.

A virgin Atlantic s criterion for segmenting is:

• Who buys their product
• Who does not buy their product
• What need or function does their product serve
• What problem does their product solve
• What are customers currently buying to satisfy the need or solve the problem for which their product is targeting
• What price are they paying for the product they are currently buying
• When is their product purchased
• Where is their product purchased
• Why is their product purchased

With virgin Atlantic there is something for everyone .Examples of how virgin Atlantic markets its segments is by offering value for money products and services to bring in the customers. For upper class passenger, In-flight beauty therapy – massages and manicures, Onboard stand-up bar, Personal 10.4 inch video screen, A dedicated sleeping area ,Fast track-priority service through immigration, Sleep service – pyjamas, full size pillows, feather duvets and fleece blanket and a Drive Thru check in from the limo etc are al offered within the price.

For the premium economy class a Dedicated check-in desk, Priority baggage handling, Flexible ticket – no penalty for last minute changes, Comfortable wider seats with up to 6 inches of extra leg room, Seatback video screen, Fast track-priority service through immigration etc is all offered to them.

For the premium economy class a Seatback video screen with up to 43 channels of movies, music, and video games, Free amenity kit, Children’s services including K-iD backpacks, TV channels and special meals, Choice of three entrees, including a vegetarian option, Ice cream during movies etc is available to them whilst onboard.

References

1. http://www.virgin-atlantic.com accessed 01/08/2011 at 17:30
2. http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/history.jspaccessed 01/08/2011 at 17:17
3. http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/history.jspaccessed 01/08/2011 at 17:17
4. http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/forstudents.jspaccessed 01/08/2011 at 17:10
5. http://www.nyama.org/mhf98.htm accessed 01/08/2011 at 17:10
6. http://www.safarigraphics.com/salterquest/portfolioPDFs/ws_Virgin_Atlantic_Marketing_Case_Study.pdf accessed 01/08/2011 at 17:10
7. http://www.safarigraphics.com/salterquest/portfolioPDFs/ws_Virgin_Atlantic_Marketing_Case_Study.pdf accessed 01/08/2011 at 17:10
8. Keegan, Warren J & Green, Mark S., Global Marketing, 2nd Edition, New Jersey: Prentice Hall, Page 40,2001.
9. PR News Wire, London, Virgin Atlantic Implements Galileo International, 5 September, 2001.
10. Virgin Atlantic Customer Service Representative, Quick Reference Guide, 2001.

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