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Virgin Atlantic Airways

Virgin Atlantic Airways


Final Case Report














Passengers

Maria Fink, Walter Harrich








The purpose of this paper is to give recommendations to Steve Ridgeways, Virgin Atlantic Airways‘ Marketing Director, on how he could face the main challenges of the airline today and in the future. ... He crossed the atlantic and tried to circumnavigate the world in a hot air balloon. ...

Introduction:

Richard Branson, the airlines’s chairman and founder, had established in sixteen years Virgin Atlantic as Britain’s second largest long-haul airline, with a reputation for quality and innovative product development. ... Fortunately, British Airways had recently lowered the optional retirement age for its crew, creating a pool of experienced pilots from which Virgin could draw; this gave it the most experienced crew of any British airline. Virgin Atlantic’s inaugural flight took off from London on 22 June 1984, packed with friends, celebrities, reporters and Richard Branson. Virgin Atlantic’s early years were slightly chaotic, but Richard Branson’s determination and enthusiasm, as well as the experienced management team that he assembled, made up for the initial amateurism. Virgin Atlantic extended its operations progressively. Until 1991, all Virgin flights left from London’s Gatwick airport, which is much smaller than Heathrow.
The professionalization of Virgin Atlantic’s management began in 1989. Until then Virgin Atlantic had had a flat structure, with 27 people reporting to Richard Branson directly. ... After years of campaigning, Virgin Atlantic was granted the right to fly out of Heathrow in 1991. ... A new era began for Virgin. ... On 20 december 1999 Richard Branson signed an agreement to sell a 49% stake of Virgin Atlantic to Singapore Airlines to form a unique global partnership. ...

Recommendations to Steve Ridgeways – Detailed Information

As seen in the case and content matrix for Virgin Atlantic, the core strategy (segmentation, positioning, building customer satisfaction, services and competitive advantage) is a major issue, while promotion, price, buyer behaviour and the marketing process are only secondary issues. ...


SWOT analysis (in headwords):

Strengths – Richard Branson’s determination, enthusiasm, energy and charisma; the experienced management team; an advanced in-flight entertainment system; a brand new fleet; highest quality travel to all classes of passengers at the lowest cost and to be flexible enough to respond rapidly to their changing needs; Virgin Atlantic’s Three Classes (Upper, Mid (for cost-conscious business travellers who required enough space to work and relax) and Economy Class (best value for money for leisure travellers who nevertheless sought comfort)); Virgin is often distinguished for the quality and consitency of its service (getting it right the first time); an award-winning airline; innovation; virgin attracts a broader range of customers than its competitors because it managed this coexistence between passenger groups (3 classes!


Approximate Word count = 1980
Approximate Pages = 7.9
(250 words per page double spaced)
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