The paper “ Virgin Blue's Marketing Strategy for a Business Class - Offering On-Time Flights and Pleasure of Traveling" is an outstanding example of a case study on marketing. Virgin Blue airlines being in the low-cost sector eyes the leisure sector who are price-conscious. The company has an aggressive marketing strategy and is looking towards becoming a cost leader and differentiator. The company along with this has brought a basic change and is eyeing the business sector. For this, the company had brought about some changes which will help Virgin Blue. The company has also used technology by having tie-ups with retailers and is marketing the product aggressively.
The Ansoff matrix and BCG matrix demonstrates it. SWOT also shows the same. The company has a good workforce and has been able to define the markets properly. The company has become a low-cost provider by offering no meals in flights, using the airport facilities on an agreement basis and not issuing printed tickets. The company for the business sector has brought about changes in the flight by having more leg space, removing the middle seats and allowing more baggage.
Thus, the company by following an aggressive marketing policy can become a cost leader and a differentiator. Virgin Blue since operation from 2000 has become one of the largest low-cost providers. Virgin Blue being in the leisure sector has transformed itself and is eyeing the business sector as this sector is growing. The company has brought about changes that have helped it to become a cost leader and differentiator. Virgin Blue to market in the business sector is looking towards aggressive marketing. To do this the company has come up with different features such as more baggage allowance and more leg space.
The company to retain them is also developing reward programs so that it can retain both the segment and grow to become a leader. Market SegmentationVirgin Blue being “ a low-cost airline is eyeing the leisure segment where people are price elastic” . (Bamber, 2006) Virgin Blue has been successful as price-conscious people prefer low-cost service. With the recent change in a business model, Virgin Blue has started to eye the business sector. They have at the same time ensured that the basic model of low cost doesn’ t vanish.
Virgin Blue has ensured that it eyes both the leisure and the business segment so that it can expand its reach in different markets. SWOT AnalysisThis tool highlights the factors which act as an advantage to Virgin Blue. It also helps to identify areas where the company can work on. This is shown below Strengths It has a large fleet of flights with efficient technology It is an innovator in in-flight service by making improvements It ensures effective communication along with all levels thereby ensuring a smooth transformation Weakness Changing its business model by having seats in flights for the business class along with leisure Opportunities Opportunity to expand in new markets Opportunity to develop new technology and integrate it with the existing one Develop a new strategy to attract a different group of customers Threats Threat from rising fuel prices Threat from new entrants Virgin Blue has worked on the opportunity and has as a result been able to come with a new business model that falls in line with the growth pattern.