The Marketing mix of Virgin Atlantic analyses the 4Ps of Virgin Atlantic, including the Product, Price, Place, and Promotions. Virgin Atlantic is a British Airline company that was established in 1984. Its head office is in Crawley, UK. Founded by Alan Hillary and Randolph Fields and owned by Richard Branson, the airline has expanded from the intended flights between Falkland Island and London to become a global airline.
Today, the airline boasts a fleet of at least forty airplanes. In its fleet are several Airbuses and Boeing wide-body airplane models that operate to 29 destinations, including the Caribbean Islands, North America, the Middle East, Africa, and Asia. Today, it is one of the largest UK airlines per passenger volumes and employs about 9,000 people.
About Virgin Atlantic
- Type: Airline
- Industry: Aviation
- Founded: 1984
- Founder: Richard Branson
- Headquarters: Crawley, United Kingdom
- Area served: North America, the Caribbean, Africa, the Middle East, and Asia.
- Key people: David Cush (President) and Shai Weiss (CEO)
Number of employees: 9,000 Worldwide
Major competitors of Virgin Atlantic
Table of Contents
Virgin Atlantic Product Strategy
The product mix of Virgin Atlantic, a prominent British airline, encompasses a variety of offerings tailored to different customer needs and preferences.
The new Product Mix of Virgin Atlantic in 2023 is as follows (Source).
- Flight Classes: Virgin Atlantic offers multiple travel classes, each with distinct features: Economy Class: This includes basic economy with essential features and economy classic/delight, offering extra legroom or seat selection options; Premium Economy: Offering more comfort and amenities than economy, including larger seats, enhanced meal service, and priority boarding; Upper Class: This is Virgin Atlantic’s business class equivalent, providing luxury services such as lie-flat beds, exclusive lounge access, premium dining, and chauffeur service at some airports.
- In-flight Amenities: The airline is known for its high-quality in-flight services, which include: In-flight Entertainment: Offering a wide range of movies, TV shows, music, and games; Catering: Providing meals and beverages, with the quality and variety increasing in higher travel classes; Wi-Fi: Available on most flights, sometimes for an additional fee.
- Loyalty Program: Virgin Atlantic’s frequent flyer program, the Flying Club, allows passengers to earn miles and redeem them for flights, upgrades, and other services.
- Additional Services: Airport Lounges: Exclusive lounges at various airports, offering luxury services; Partner Services: Includes hotel bookings, car rentals, and holiday packages in partnership with other companies; Cargo Services: Transporting goods and cargo and passenger services.
- Special Services: Accessibility Services: Accommodations for passengers with special needs; Travel Insurance: Offering insurance options for travel.
- Corporate and Group Travel: Tailored business and group travel services, including corporate accounts and group booking options.
- Charter Services: Providing aircraft for private charter for corporate, government, or individual needs.
Virgin Atlantic’s product mix is designed to cater to a wide range of customers, from budget-conscious travelers to those seeking luxury experiences. They are known for their innovative approach to air travel and focus on customer service and expertise.
Virgin Atlantic Place Strategy
The Virgin Group is a hugely significant distribution company, hence an equally large distribution channel. The company is a global entity with a presence in almost all continents. The comfort the company assures its users makes it a target airline for businessmen & women and those on the higher end of the market share in the corporate world. On the other hand, the comparatively lower price targets the middle-income earners. In other words, Virgin Atlantic serves everyone everywhere.
Here’s Virgin Atlantic’s place strategy.
- Global Route Network: Virgin Atlantic operates a wide-ranging network that connects major cities across continents, particularly strong in routes between the UK, North America, the Caribbean, Africa, the Middle East, and Asia. This expansive network caters to both business and leisure travelers.
- Major Hub Airports: The airline’s central operational hub is London Heathrow, with significant operations at London Gatwick and Manchester Airport. These hubs are strategically chosen for their high passenger traffic and accessibility, enhancing the airline’s reach.
- Online Presence and E-Ticketing: Virgin Atlantic has a robust online presence, allowing customers worldwide to book flights, check in, and manage travel plans. This digital approach aligns with modern consumer preferences for convenience and efficiency.
- Partnerships with Other Airlines: Virgin Atlantic has codeshare agreements and partnerships with various airlines to expand their reach. These partnerships enable them to offer flights to destinations beyond their direct routes, thus increasing their market presence.
- Travel Agent and Third-party Booking Sites: Besides direct bookings, Virgin Atlantic also leverages traditional and online travel agencies. This multi-channel distribution strategy ensures accessibility to a broader range of customers who might prefer booking through travel agents or third-party websites.
Virgin Atlantic Pricing Strategy
The Virgin Atlantic’s pricing and advertising strategy is clear and precise. The company runs numerous influential promotional adverts with one of their attractive messages saying, ‘Price is no object as long as the customer service is of a high standard.’ In other words, the businessmen and women demography that prefers luxury to anything else finds no problem paying something higher. You would expect such a message to mean the airline is costly. Nay! Virgin Atlantic’s comparative pricing strategy makes its products priced less than those of other companies, such as British Airways.
Virgin Atlantic’s pricing strategy is multifaceted and dynamic, designed to keep customer loyalty and maximize revenue while catering to a diverse customer base. Here’s an in-depth look at the critical aspects of their pricing strategy:
- Value-Based Pricing: Virgin Atlantic adopts a value-based pricing strategy, where the focus is not on competing on price but on offering a superior value proposition. This approach considers the brand’s strong reputation for quality service, innovative features, and customer experience. It’s about charging what customers are willing to pay based on the perceived value of the airline’s offerings.
- Dynamic Pricing: Utilizing advanced algorithms and market demand data, Virgin Atlantic employs dynamic pricing. This means fares fluctuate based on demand, seasonality, competition, and booking patterns. Such a strategy allows the airline to optimize revenue on popular routes and during peak travel times while offering competitive pricing during off-peak periods.
- Segmented Pricing: Recognizing the diverse needs of its customer base, Virgin Atlantic has segmented pricing for different cabin classes – Economy, Premium Economy, and Upper Class. Each segment offers different levels of comfort, service, and amenities, catering to various customer segments, from budget-conscious travelers to luxury seekers.
- Promotional Pricing and Special Offers: Engaging in promotional campaigns and special offers is a crucial aspect of Virgin Atlantic’s pricing strategy. These promotions are often time-sensitive and designed to stimulate demand, fill seats during slower periods, and attract new customers. This includes partnerships with hotels and car rental services, offering package deals that provide more value to customers.
- Loyalty and Flexible Pricing Options: The airline’s Flying Club loyalty program plays a strategic role in its pricing. It encourages repeat business through miles accumulation and redemption. Moreover, Virgin Atlantic offers flexible pricing options, including refundable tickets and fare locks, catering to business travelers and those seeking more flexibility.
Virgin Atlantic Promotion Strategy
It is widespread for someone to buy something if a female marketer promotes it or the product is inclined toward women. Virgin Atlantic uses this phenomenon to tap customers’ target market by giving its airplanes female names. These include the Ladybird, the Island Lady, the Varga Girl, and Ruby Tuesday.
As mentioned above, the company does a lot of promotions, most of which are very influential, resulting in positive impacts on potential customers. Richard Branson, who happens to be the organization’s founder, has been spotted exploring different parts of the company to ensure quality service delivery to target customers. This can be proven from the YouTube videos and the many instances when the man has been spotted on numerous celebs. The company advertises its brands through the print and electronic media alike.
Some Recent Video ads and Print ads for Virgin Atlantic are:
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