Dissertation on Virgin Atlantic Airways

Since its inaugural flight took off from London on 22 June, 1984, Virgin Atlantic Airways has become the second largest long-haul airline in the smaller and confined British environment (Virgin Atlantic). It now has a reputation for service quality and innovative product development. However, Richard Branson, the airline's founder and chairman, was not satisfied with the rapid expansion; he applied his record-breaking, customer-driven, and fun-seeking philosophy in his efforts to break into the U.S. market. Although Virgin Atlantic Airways took advantage of its unique marketing mix and multi-channel strategy to succeed in the U.S., the major obstacle Virgin would face in the U.S. expansion that was the trade barriers maintained by the United States (U.S.). Virgin Atlantic remained committed to a complete liberalization of the transatlantic aviation market and the removal of all unnecessary regulations.

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However, Great Britain and the United States both wanted liberalization, but each had different needs and starting points for its own benefit. Another obstacle will be economic vulnerability. In the beginning, Virgin has to adopt a hit-or-miss strategy to see what works in the United States because it will face a more competitive environment than in Great Britain. As a result, Virgin will spend more money on marketing which will cause the high break-even point and lack of economics of scope. Thus, it will be a problem for Virgin to remain profitable and retain its competitive edge in innovations in the U.S.

market. Besides those obstacles, the Virgin group is best known as the airline which provides a good service quality, fun-seeking entertainment, and innovation for customers who seeking value-for-money travel. It succeeded in setting itself apart from every other boring airline as well as getting many younger and fun-seeking customers. In contrast, it also has some weaknesses on fun-oriented marketing strategy. For example, there are no clear customer targets because Virgin Atlantic Airways has combined its economy section with the first class section at business class prices.

In addition, it emphasized on its wild image and fun-oriented market strategy which was not good for all customers because some customers might see Virgin airways as a cheap and cheerful airline (Reed). In recent years, the Virgin group tried to implement its brand leverage strategy in the U.S. market by expanding the product mix to provide various items available through the Virgin Website (Angelo). In addition, many unrelated wealthy ventures involve Branson's name and his successful brand name in order to control interest.

As market experts foresee, many problems will occur when products or services from the same corporate brand - Virgin are differentiated on different bases. The market segmentation, brand distinction and satisfaction of customer service are definitely going to be harder and harder for the Virgin group. Thus, these will be a big challenge for them in the future. For example, on the surface, these ventures perhaps maintain their goods and service to meet Virgin's standards. However, do they really operate the same way as Virgin does? The prestige and brand names of the company are most valuable and important assets for the organization.

Unlike goods or services every company offers, prestige and brand names are difficult to copy. The way in which the companies interact with their customers defines their brand as well as any advertisement. Therefore, Virgin will have to face how to unify its brand names, customer touch points, and user experience in the future. In addition, the most risk and challenge is how to maintain their brand valve because Virgin's brand plays a major role in influencing a customer's choice. It is important to recognize the brand is created not by the message the marketing department prints on its advertisement, but by the way the companies interact with customers.

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