Strategic concepts and organizational applications

Virgin Airlines Marketing Strategy

Virgin Airlines has long led the way in the airline industry for its embrace of a marketing strategy that targets the middle and even low-income flyer. However, rather than position itself as an airline with an eye upon marketing itself as merely a down or middle market airline, providing peanuts to its customers rather than pheasant under glass, it instead has attempted to provide quality, almost luxurious service to its customers through the use of amenities geared to all passengers, including members of the economy class. It does so partly by with the aim of attracting younger consumers in greater numbers, as was particularly evident in its Austin Powers marketing campaign.

Virgin Blue has also stated explicitly, that regarding its research done on what flyers are looking for in an airline, Virgin Blue wants to make a genuine low fare launch offer that is available to everyone, "not just the fortunate internet-savvy few and not just a few seats at an inconvenient time." Market research has also indicated to Virgin that consumers, even more than amenities, wish to travel at convenient times with a minimum of hassle. "Even people who want to go to the Olympics or get away from the Olympics will be able to take advantage of this special launch offer," noted the airline in a recent press release. (Virgin Blue Cleared for Take Off, 2000)

Virgin stresses in its press releases that discount fares are integral to the airlines' image. Discounts and amenities are not something that simply comes and goes with fashion. "Virgin Blue is confident its marketing strategy will reveal the integrity behind the Virgin Blue product, making low fare seats available to the entire public and not just the Internet savvy fortunate few," said one of its chief marketing executives, Brett Godfrey. He added, "we will do whatever it takes to remain competitive but we also believe any airline needs to strike a balance between sparking the public's imagination and desire to travel, with long-term economic viability. We have no interest in becoming Compass 3," referring to a defunct airline that literally discounted itself out of business in Great Britain. (Virgin Blue Takes Off, 2000)

Virgin, thus, in creating its market image, stresses its brand name, rather than relying upon strong segmentation, to target one area of the market, even though its image has particular appeal to younger, price-conscious consumers. It wishes to build its brand overall in the industry as a cost-conscious airline but one with an eye on the future, that exists as a solid company that provides unique benefits to travelers. Godfrey added that while Virgin Blue "will indeed be offering promotional fares from time to time, we are confident our passengers will appreciate the large number of everyday low fares on offer and the ease of booking seats via the Internet, our reservations center or their local travel agent."