The paper "Marketing Strategies of Virgin Blue " is a great example of a Management Case Study. I would like to state that I have gone through the SWOT analysis and Porter 5 analysis of Virgin Blue, after which I came up with some marketing strategies to improve its position. I realize that the mission statement is extremely important to the company, so I have made sure that all the strategies portrayed exactly that. I have given special attention to the fact that the growth of the company and customer care both are considered in the strategies.
The strategies may be a bit costly but since the threat of suppliers and the threats of entrants are less it is extremely affordable for the company. By the past and future analysis of the airline industry, it may be said that air travel will increase in the next 10 years. To keep our position in this fast-growing market it is essential to implement the marketing strategies I have recommended in the report below. Best regards, Expert Management Consultant, Management Report. Every company requires an asset to marketing strategies so that its product may be sold.
The airline industry is so fast-moving that it requires a perfect marketing agenda. This report gives an overview of the marketing strategies of virgin blue. It even considers the past and future trends of the airline industry. Since Virgin Blue is a well-known airline, the report highlights all the important strategies required for it to hold it’ s position in the market. Company Background Virgin Blue, one of the airline companies in Australia, which provides lost cost, low fare domestic airline, offering frequent passenger services on routes between all of the Australia's major cities, is one of the subsidiaries of the Virgin Group that established on 3 August 2000 with two aircraft initially offering seven return flights a day between Brisbane and Sydney.
And this has been expanded to cover the major cities in Australia (Virgin Blue Press Release, 2000). By now, Virgin Group's holding in Virgin Blue has been reduced via a sale of half interest to Patrick Corporation, and later by a public float. By the closure of the offer, Patrick Corporation has held 62% of the company, Current situation Virgin Blue performed extremely well in Dec-2009 (1HFY2010), it regained its high profit in a challenging operating environment.
The stringent cost control effort along with improved domestic yields is what helped them regain their position. The carrier earned them a healthy net profit after tax of AUD62.5 million by the end of Dec-2009 (1HFY2010), it ended up getting a net margin of 4.1% (Centre for Asia Pacific Aviation, 2010) The airline industry has seen tremendous growth in the past years. It is predicted in the next 10 years its growth will be extremely rapid.
It may be able to generate approximately 2.9% GDP of the economy. (Current Market Outlook, 2005) Mission statement The mission statement of Virgin blue is growing a profitable airline Where people love to fly And where people love to work (Virgin Blue Press Release, 2000) Considering such a simple yet strong mission statement helps in designing strategies for virgin blue. The marketing strategies they use are base on their statement. Even future strategies should be based on the same criteria.
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Centre For Asia Pacific Aviation (2010). Virgin Blue's better-than-expected profitability in 1HFY2010; Expects tougher second half retrieved from http://www.centreforaviation.com/news/2010/02/24/virgin-blues-better-than-expected-profitability-in-1hfy2010-expects-tougher-second-half/page1 on 15 December 2010
Current Market Outlook (2005). From http://www.boeing.com/commercial/cmo/pdf/cmo2005_OutlookReport.pdf on 15 December 2010
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News And Press Releases (2006). Virgin Blue Holdings Limited Results For The 9 Months Ended 30 June 2006 Up 12% To $84 Million Net Profit After Tax. retrieved from http://www.virginblue.com.au/AboutUs/Media/NewsandPressReleases/U_001173.htm on 15 December 2010
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Virgin Blue Press Release (2000) Virgin Blue Press Release, Virgin Blue Airways, Sydney