Virgin Atlantic A Premium Brand Essay Example | Topics and Well Written Essays - 2000 words

Virgin Atlantic A Premium Brand - Essay ExamplePremium Economy figure offered by Virgin constitutes a major chunk of its business that provides larger seats, priority in baggage reclaim, a cabin-exclusive crew, dedicated check-in and more that distinguishes them from the other airliners. Over these years, the VA brand is recognised as one of the most reliable and consumer-friendly air carrier that people have been ready to pay premium on their air travel however, tin 2008 financial crisis has caused major upheavals in the aviation industry. In last couple of years, numerous mergers have taken place among the major airliners and that has posed a sound threat to the VA. It becomes utmost necessary that Virgin forms a suitable merger or a strategic partnership with some other large airlines to modify its competitive edge over its rivals. Introduction Virgin airlines (VA) began its trading operations a way back in 1984 with a single route to New York however, expanding its operation s ever since then, currently, the Virgin flies to more than 30 destinations with total 38 aircrafts at its disposal. At the home turf, Virgin competes with British Airways (BA) and holds number two situation right behind BA beating many US carriers in the process. Competing with BA at all major routes is a big feat indeed The paper aims at identifying and analysing the competitive strategy that Virgin Atlantic has deployed all these years against the formidable airlines of the world. Virgin Atlantics Mission Statement Virgin Atlantics mission rehearsal is To grow a profitable airline, that people love to fly and where people love to work (Strategy and Policy, 2012). Objectives VAs long-term objective is to grow and expand into a profitable airline creating a strong brand name in the aviation industry. In a bid to fulfill these objectives, the company moved to Heathrow in 1991. Since then the company has been able to push through many routes and several markets. Creating Competiti ve Strategy Lomax and Raman (2006) define competitive advantage as the means that atomic number 18 necessary for the company to outperform its rivals in terms of earning higher than average profits. Hooley et al. (2008) argue that a well-formulated marketing strategy should be in place ground on the competitive environment in which the company operates. Product positioning or niche marketing can derive benefits to the company when harnessed strategically (Johnson, 2011). Virgin competes with British Airways, Continental, American Airlines, United and Delta on transatlantic routes BA, Cathay Pacific, ANA, and JAL to the Far East SAA and BA to South Africa. Virgin has instituted a two class system for its passengers Economy class and Upper Class. Economy class is further segmented into Premium Economy and Economy Class. Virgin employs several marketing techniques use its distinct logo to market its products and operate that include print media, electronic media, taxi sides, outdoo r posters. The sole purpose is to increase the awareness among consumers about its products and services and inform the people about new routes. During off seasons, tactical promotional schemes are offered to increase the occupancy rates in air routes. Direct carry is another method used to inform about the new offerings and services. Frequent flyer programmes are used to increase the loyalty among existing customers.