The purpose of the report is to develop a marketing plan for Virgin Australia based on the business analysis report prepared before by creating ideas for how the company can best conduct their marketing activities.
Virgin can undertake market penetration strategy by a combination of competitive pricing strategies, advertising, promotion and perhaps more resources dedicated to personal selling. It can also expand its destinations to tap Qantas market share and can introduce new service dedicated to business travellers.
To achieve its objective Virgin could improve in-flight services, introduce frequent flyer miles programme and tailor packages for young families, adventurers and students. Peak and off-peak pricing, student discounts, stand-by fares, early booking discounts could also be introduced as part of its pricing strategy. Advertising activity could include direct mail, TV, press, magazines, outdoor posters etc. A customer connection database can be used to information to send birthday greetings or information about the quality of customer service. Virgin has to extend its operations two fold if it wants to compete with Qantas. High quality first class private lounges with premium class private suite could be introduced for business customers. To position itself in the mind of business customers, it has to develop a two-brand strategy, targeting both the segments of leisure and business customer market. Attributes which may not be so important for leisure travellers have to given top priority to attract business customers.
In order to facilitate an integrated approach for managing marketing resources different softwares could be used organization-wide such as Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Efficient Consumer Response (ECR) systems etc. Integrated marketing communications (IMC) approach can be used to estimate the value of marketing mix executions based on the changes in customer behaviour these executions generate.
The marketing strategy has to be divided into bits and pieces so that it could be handled easily. Communication channels have to be open to discuss new ideas, issues, challenges and opportunities. Additionally, any achievement has to be rewarded while repetitive failures have to be penalized.
Table of Contents
1. Introduction
1.1 Company Background
1.2 Purpose
2. Marketing Objectives
3. Financial Objectives
4. Target Markets
4.1 Existing Market
4.2 Potential Market
5. Strategy
5.1 Market Penetration
5.2 Market Development
5.3 Product Development
6. Marketing Mix
6.1 Product
6.2 Price
6.3 Promotion
6.4 Place
6.5 Packaging
6.6 Positioning
6.7 People
7. Controls
8. Implementation
9. Conclusion
10. References
Objectives and Themes
This report aims to develop a strategic marketing plan for Virgin Australia to transition from a low-cost carrier to a broader "new world carrier" that effectively captures the lucrative business travel segment while maintaining its core leisure market.
- Development of a dual-brand strategy for business and leisure segments.
- Optimization of the marketing mix (7Ps) to improve service competitiveness.
- Identification of potential target markets including students and families.
- Strategic implementation of integrated marketing communications (IMC).
- Utilization of data-driven control mechanisms for performance evaluation.
Excerpt from the Book
6.3 Promotion
Virgin Australia can employ an integrated marketing communication approach consisted of a variety of communication methods such as general advertising, direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency, and maximum communication impact (Belch & Belch, 1997, p. 10).
Advertising activity could include direct mail, TV, press, magazines, outdoor posters and taxi sides, all featuring their distinctive logo. Advertising can be used to encourage people to fly Virgin Australia and to inform customers about its destinations. For example, in Britain, NBC primetime series “Friends” featured Richard Branson with the characters flying Virgin Atlantic to London (New York American Marketing Association, 2006, p. 1). In 2001, Virgin spent 8 to 10 million dollars (Goetzl, 2000, p. 37) on a campaign linking Virgin with the movie “Austin Powers: The Spy Who Shagged Me.” They painted an enlarged Austin Powers on the tail, and Virgin was rebranded “Virgin Shaglantic”, featuring phrases such as: “There is only one virgin on this billboard, baby!” These kinds of product placement can also be used in Australia to gain customer attention.
Virgin could keep a customer connection database, where information about every customer will be kept, including a log of any comments and concerns from each. The database could store information about customer’s date of birth, email address etc. and Virgin could use this information to send birthday greetings or inform them about the quality of customer service available for them.
Summary of Chapters
1. Introduction: Outlines the historical background of Virgin Australia as a low-cost carrier and states the report's purpose to formulate a new marketing strategy.
2. Marketing Objectives: Defines the company's SMART goals, focusing on revenue growth and the strategic shift toward business travellers.
3. Financial Objectives: Details the fiscal targets, including return on sales and projected operating cash flow.
4. Target Markets: Analyzes the existing leisure customer base and identifies potential growth opportunities in business and student segments.
5. Strategy: Proposes market penetration, development, and product diversification strategies to increase competitiveness.
6. Marketing Mix: Evaluates the seven P's (product, price, promotion, place, packaging, positioning, people) required to reach new objectives.
7. Controls: Discusses mechanisms and software tools like ERP and IMC for measuring marketing effectiveness.
8. Implementation: Emphasizes that successful strategy execution requires ongoing communication and a structured approach to tasks.
9. Conclusion: Summarizes the necessity of implementing the proposed plan to overcome competitive pressures in the Australian market.
10. References: Lists the sources and citations used throughout the document.
Keywords
Virgin Australia, Marketing Plan, Low-cost carrier, Business travellers, Market share, SMART objectives, Marketing mix, Customer service, Integrated Marketing Communications, Brand strategy, Pricing strategy, Competitive advantage, Service quality, Airline industry, Market penetration.
Frequently Asked Questions
What is the primary purpose of this report?
The report develops a comprehensive marketing plan for Virgin Australia to transition its brand image and capture a higher share of the business travel market while maintaining its low-cost roots.
What are the core thematic areas discussed in the plan?
The core themes include strategic market expansion, optimization of the service-based marketing mix, HR and recruitment strategies, and the implementation of integrated control systems.
What is the ultimate goal of Virgin Australia by 2013?
The company aims to achieve 10% sales growth and a 25% increase in its business traveller market share.
Which methodology is used to approach the marketing strategy?
The report utilizes the "Seven P" marketing mix framework and SMART objective setting to structure its recommendations.
What does the main part of the report cover?
The main body focuses on evaluating the current market position, proposing penetration and development strategies, and detailing operational improvements in service, pricing, and promotion.
What are the essential keywords associated with this document?
Key terms include Virgin Australia, Marketing Plan, Business Travellers, Marketing Mix, and Competitive Advantage.
How does the report suggest Virgin Australia should handle its pricing?
It recommends implementing dynamic pricing strategies, such as peak/off-peak fares and advance booking discounts, to cater to both leisure and business segments effectively.
Why is the recruitment of personnel highlighted in the strategy?
Because the airline operates in the service industry, the report emphasizes that human resource planning and hiring employees who align with the Virgin culture are critical for delivering superior customer service.
How does the author propose to measure the success of marketing activities?
By employing control mechanisms like CRM tools, ERP systems, and brand valuation techniques to track the return on investment for various marketing initiatives.
- Quote paper
- Yasir Farabi (Author), 2012, Marketing Plan of Virgin Australia, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/197080
