Marketing Mix of Virgin Atlantic and 7Ps (Updated 2024)

The Marketing mix of Virgin Atlantic analyses the 7Ps of Virgin Atlantic, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Virgin Atlantic. 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 company has expanded from the intended flights between Falkland Island and London to become a global airline.

Today, the airline boasts many new routes and 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

• The British Airways
• American Airways
• British Midland
• Jet Airways
• Emirates

Virgin Atlantic Product Strategy

The product mix of Virgin Atlantic, a prominent British airline, encompasses more customers with various offerings tailored to different customer needs and preferences.

The new Product Mix of Virgin Atlantic in 2024 is as follows (Source).

1. 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.
2. 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.
3. 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.
4. 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.
5. Special Services: Accessibility Services: Accommodations for passengers with special needs; Travel Insurance: Offering insurance options for travel.
6. Corporate and Group Travel: Tailored business and group travel services, including corporate accounts and group booking options.
7. 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 to business-class travelers seeking luxury experiences. They are known for their innovative approach to air travel and focus on customer service and expertise for premium customers.

Virgin Atlantic Pricing Strategy

Virgin Atlantic’s pricing strategy is multifaceted and dynamic, designed to keep customer loyalty and maximize revenue while catering to the unique characteristics of a diverse customer base. Here’s an in-depth look at the critical aspects of their pricing strategy:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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 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, the Virgin Group of Atlantic is a premier airline that serves everyone everywhere.

Here’s Virgin Atlantic’s place strategy.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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 Promotion Strategy

It is widespread for marketing mix to get someone to buy something if a female marketer promotes it or if people prefer the product to be 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 business strategies and brand loyalty among 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:

Virgin Atlantic People Strategy

The “People” element of the Service Marketing Mix for Virgin Atlantic is such a message and critical aspect that encompasses the staff, employees, and the culture of customer service within the company. Here are some key points about the “People” aspect of developing customer loyalty for Virgin Atlantic:

1. Customer-Centric Staff: Virgin Atlantic strongly emphasizes hiring, training, and retaining staff passionate about providing an exceptional customer experience. The airline’s personnel, from pilots to cabin crew and ground staff, are known for their friendliness, professionalism, and willingness to go the extra mile for passengers.
2. Training and Development: The company invests heavily in the training and development of its employees. This includes comprehensive induction programs for new staff, ongoing training to ensure excellence in customer service, and leadership development programs to nurture future leaders within the organization.
3. Employee Empowerment: Virgin Atlantic empowers its employees to make decisions that enhance the customer experience. This empowerment enables staff to resolve issues quickly and efficiently, increasing customer satisfaction.
4. Innovative Uniforms: The airline’s staff uniforms are designed to be stylish, comfortable, and functional, reflecting the brand’s innovative and modern image. This attention to detail in staff appearance further enhances the customer’s perception of the airline.
5. Team Spirit and Company Culture: Virgin Atlantic fosters a strong team spirit and a unique company culture that is open, inclusive, and fun. This culture attracts talent and ensures employees are engaged and motivated to provide the best service possible.
6. Recognition and Rewards: The company has recognition and rewards programs in place to acknowledge and celebrate the achievements of its staff. This includes awards for exceptional customer service and encouraging employees to strive for excellence.
7. Diversity and Inclusion: Virgin Atlantic is committed to diversity and inclusion, ensuring that its workforce represents the diverse communities it serves. The airline undertakes various initiatives to promote equality and diversity within its team.
8. Customer Feedback Loop: Employees are encouraged to listen to customer feedback and share insights with management. This feedback loop helps Virgin Atlantic improve its service and address areas where it can enhance the passenger experience.
9. Safety and Security: The safety and security of passengers and staff are paramount at Virgin Atlantic. The airline’s personnel are extensively trained in safety procedures and emergency response to ensure the well-being of everyone on board.
10. Sustainability Champions: Virgin Atlantic’s employees also champion the airline’s sustainability initiatives. They play a crucial role in implementing eco-friendly practices and promoting sustainability among passengers and the community.

Virgin Atlantic Process Strategy

The “Process” element of the Service Marketing Mix for Virgin Atlantic refers to the procedures, mechanisms, distribution channels, and activities flow by which the airline delivers its services to customers. This includes booking tickets to the actual flight experience and post-flight services. Here are key points highlighting the “Process” aspect of the marketing mix framework of Virgin Atlantic:

1. Online Booking and Check-in: Virgin Atlantic offers a streamlined online booking and check-in process, allowing passengers to purchase tickets easily, select seats, and check in for flights from the comfort of their homes or on the go through their mobile app.
2. Customer Service Channels: The airline provides multiple customer service channels, including phone support, email, and social media platforms, ensuring that passengers can reach out for assistance and information or to provide feedback through their preferred means of communication.
3. Baggage Handling: Virgin Atlantic has an efficient baggage handling process, with clear guidelines on baggage allowances, procedures for special items, and support for tracking and recovering lost baggage, ensuring a smooth experience for travelers.
4. Boarding Procedures: The airline has a systematic boarding process that prioritizes efficiency and convenience, with specific boarding groups and clear announcements to minimize delays and ensure a smooth boarding experience for all passengers.
5. In-flight Services: Virgin Atlantic is known for its exceptional in-flight services, including comfortable seating, high-quality meals and beverages, in-flight entertainment, and Wi-Fi. The process is designed to maximize passenger comfort and satisfaction during the flight.
6. Safety Procedures: The airline strongly emphasizes safety, with comprehensive pre-flight safety demonstrations and procedures. Crew members are well-trained to handle emergencies, ensuring passenger safety.
7. Special Assistance Services: Virgin Atlantic offers special assistance services for passengers with disabilities, young travelers, and those with specific medical needs. The process for requesting and receiving these services is designed to be straightforward and compassionate.
8. Loyalty Program: The Virgin Atlantic Flying Club loyalty program is designed to reward frequent flyers with points that can be redeemed for flights, upgrades, and other benefits. The process of earning and redeeming points is transparent and user-friendly to encourage participation.
9. Sustainability Initiatives: Virgin Atlantic incorporates sustainability into its operational processes, with initiatives to reduce its environmental impact. This includes fuel-efficient flying techniques, recycling programs, and efforts to offset carbon emissions.
10. Feedback and Continuous Improvement: The airline has a structured process for collecting and analyzing customer feedback, using this information to improve its services and processes continuously. This includes post-flight surveys and monitoring of social media and review sites.

Virgin Atlantic Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix for Virgin Atlantic encompasses the tangible and intangible elements that help customers form their perceptions of the airline’s service quality. This includes everything from the aircraft to the lounges’ ambiance and the brand’s visual identity. Here are key points highlighting the “Physical Evidence” aspect of Virgin Atlantic’s advertising and marketing strategy:

1. Branding and Visual Identity: Virgin Atlantic’s distinctive red and white branding, along with its modern and stylish logo, is consistently applied across all customer touchpoints, including aircraft livery, staff uniforms, and marketing materials. This strong visual identity helps to reinforce the brand’s image and values.
2. Aircraft Interiors: The design and comfort of the aircraft interiors are crucial to the physical evidence. Virgin Atlantic is known for its innovative and comfortable seating options across all classes, including lie-flat beds in Upper Class, spacious seats in Premium Economy, and ergonomically designed seats in Economy.
3. Airport Lounges: The airline’s lounges, such as the Clubhouse lounges, offer passengers a luxurious and relaxing environment before their flight. The lounges are designed with unique features and high-quality furnishings and provide a range of amenities, including gourmet dining, spa services, and business facilities.
4. In-flight Amenities: High-quality in-flight amenities, including amenity kits, in-flight entertainment systems, and meal services, serve as physical evidence of the airline’s commitment to passenger comfort and satisfaction.
5. Uniforms of the Staff: The uniforms of the cabin crew and ground staff, designed to be stylish yet functional, contribute to the professional and modern image of the airline, enhancing the overall customer experience.
6. Check-in and Boarding Areas: Virgin Atlantic’s check-in and boarding areas are designed to be welcoming and efficient, with clear signage, comfortable seating areas, and streamlined processes to reduce stress and waiting times for passengers.
7. Website and Mobile App: The design and functionality of Virgin Atlantic’s website and mobile app are part of the physical evidence, offering a user-friendly interface for booking flights, checking in, managing bookings, and accessing flight information.
8. Marketing Materials: Brochures, advertisements, and promotional videos that showcase the airline’s services, destinations, and customer testimonials serve as physical evidence, helping to build trust and set expectations for potential passengers.
9. Onboard Meals and Beverages: The quality, presentation, and variety of meals and beverages offered onboard contribute to the tangible experience of flying with Virgin Atlantic, reflecting the airline’s commitment to quality and innovation.
10. Customer Testimonials and Reviews: Positive feedback and reviews from satisfied customers serve as intangible physical evidence, providing prospective passengers with real-life insights into the quality of service they can expect from Virgin Atlantic.

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