Successful Marketing Strategies in its Operations is Virgin Blue - Case Study Example

Table of Contents Introduction 2 Purpose of the report 2 Virgin Blue 2 Ability to clearly identify the vision and mission statement 3 Ability to identify its short and long term objectives 3 Ability to understand the environmental factors 4 Ability to identify the correct target customer 5 Ability to understand the competitor and their strategies 6 Ability of Maintain Customer Relationship 7 Ability to handle customer complaints 8 Improved Corporate Governance 8 Ability of integrate the workforce 9 Ability to develop international relations 9 Ability to utilize knowledge management towards growth 10 Ability to train & motivate the work force 10 Ideas to incorporate in Business 10 Conclusion 11 References 12 Introduction Businesses in this competitive world look towards adopting strategies which will ensure that they are able to grow. Different business looks towards employing different business models and work on different aspect of marketing to be successful. Organization that is able to develop itself throughout by concentrating of the different factors that will ensure better result is able to visualize growth. One such organization that has witnessed successful marketing strategies in its operations is Virgin Blue. The company has been able to use different strategies and work on the different aspect of marketing, human resource, operations to ensure growth. Purpose of the Report To identify the successful marketing strategies been incorporated by Virgin Blue To identify the key elements that has contributed towards the success of Virgin Blue Ideas that can be incorporated in future business plan so that the business is able to ensure successful results Virgin Blue Virgin Blue has been operating since 2000 and has been able to successfully market itself as a low cost airline provider. The company has looked towards incorporating different marketing strategies which has enabled the airline to portray itself both as a differentiator and a cost leader. The company has also looked towards having different marketing strategy for the business class and has looked towards providing special facility for the business class. This has ensured that their marketing strategy fetches them maximum rewards. Virgin Blue thus has been able to ensure that is has identified various important marketing aspect and looked towards incorporating it in their planning process so that they are able to be successful and provide quality services to its customer. Ability to clearly identify the vision and mission statement Virgin Blue has clearly identified both the vision and mission statement for the company which has ensured that they are able to direct their efforts in the direction. Virgin Blue has stated its vision clearly where they are looking towards enhancing customer satisfaction. This is equally matched by their mission statement where they have the best in house staff and equipments so that they are able to deliver quality services that satisfy the customers. The ability of Virgin Blue to clearly demonstrate the vision and mission statement has ensured that the employees are able to understand their role and look towards directing their efforts so that the goals of the organization can be easily achieved. Ability to identify its short and long term objectives Virgin Blue has identified both its short and long term objective and is looking towards cultivating its efforts in that direction. This has ensured that the airline is able to look into different aspect of marketing and ensure that they are able to garner maximum customer satisfaction. Virgin Airline has identified the strategic objective of the business and attaining these objectives will help the airline to achieve its mission and vision statement (Cateora, Mary & Graham, 2009). The short and long term objective that Virgin Blue has identified for itself is as follows Short Term Objective: To improve the brand image of the organization by focusing services so that customer travelling through Virgin Blue have an enhance satisfaction and looks towards using the services in the future (Czinkota & Ronkainen, 2004) Long Term Objectives: Improve the brand image over a long period of time by looking towards building a base of a loyal customer within a period of 3-5 years Virgin Blue while identifying the strategy has ensured that it has a linkage with the vision and mission statement so that the efforts of the employees also help to achieve the bigger objectives. This has helped Virgin Blue to understand the risk associated with the business and take necessary precautions so that the marketing strategy helps them to achieve the desired outcome (Fletcher & Crawford, 2011). Ability to understand the environmental factors Virgin Blue has been able to identify the environmental factors that are impacting their business and take necessary steps so that the effect of the environmental factors gets reduced to a large extent. Virgin Blue has been able to understand the manner in which different environmental factors which are beyond the control of the firm is impacting and has ensured that they are able to take necessary steps to ensure that the factors have little effect on their business. This has helped Virgin Blue in applying the marketing strategy successfully and has resulted in maximum rewards for the organization through growing business and revenues which is shown in the financial data below The above data shows that Virgin Blue has been able to understand the manner in which different environmental factors are affecting their business and the ability to mould these factors towards the growth of the business has ensured that they are able to earn higher revenues. Ability to identify the correct target customer Virgin Blue has been able to identify the target customer they are looking towards attracting correctly. This has ensured that the efforts of the company is not wasted and has ensured that the airline is able to ensure maximum customer satisfaction and attraction towards the organization. Virgin Blue by adopting the different advertisement campaigns have been able to clearly communicate the customer they are looking to attract. The advertisements bring forward the fact that Virgin Blue looks towards households, youngsters, business class and lower end customers who want faster and quicker mode of transport. The target market of both the company looks towards eying customers who are loyal to the brand and people who are most likely so switch to the brand by giving up some other brand (Philip & Gary, 2001) Virgin Blue has thereby been able to identify its efforts and are looking towards people in the age bracket of 5 -70 as shown below Targeted Segment Age Group Class of Customer Customer Needs Rural 5 - 70 years Premium Middle Class Providing quality service and improved connectivity between cities Semi-Urban 5 - 70 years Middle Class Quality product at a price suiting the pocket The ability of Virgin Blue to clearly identify its customers has ensured that they are able to market themselves in that direction. Virgin Blue by being able to differentiate and clearly identify the market has ensured that its marketing strategies provide the correct outlook they are looking at. This has helped Virgin Blue and has helped them to transform their business into a better functioning unit where the different aspects are also looked into. Ability to understand the competitor and their strategies Virgin Blue has been able to understand the competitors and their strategies. This has helped Virgin Blue to make strategies keeping the competitors in mind. By doing so Virgin Blue has been able to keep ahead or match with the competitors. Virgin Blue has identified that it faces competition from Qantas Airways, Pacific Airways and all airways operator in the market. The airline has also been able to understand the fact that the competitors are very similar in service and provide the same to the customers thereby leaving a lot of options for the customer to choose from as shown below Lufthansa Virgin Qantas Swiss Aims at upper segment of the population Aims at all people Aims at all people Aims at upper segment of the population Offers variety at different prices Offers variety at different prices Offers variety at different prices Offers variety at different prices Sells tickets either through agents, counter or over the internet through various sites Sells tickets either through agents, counter or over the internet through various sites Sells tickets either through agents, counter or over the internet through various sites Sells tickets either through agents, counter or over the internet through various sites Offers Similar service Offers Similar service Offers Similar service Offers Similar service The above chart shows that all airlines offer similar services and the ability of Virgin Blue to indentify those has ensured that their efforts are directed in the correct way. . A statistical comparison is as follows The above chart also shows that the ability of Virgin Blue to understand its competitor better has ensured better marketing strategies which are highlighted from the level of competition prevalent between the giants. Thus, being able to indetify the competitors and their marketing strategy has ensured that Virgin Blue is able to keep with the competitors and look towards differentiating their services by offering something else. Ability of Maintain Customer Relationship Virgin Blue has been able to maintain customer relationship by ensuring integrity, reliability, transparency, and social responsibility towards the customers. Working on this aspect will ensure that the Virgin Blue is able to develop a positive relationship with the customers’ where every aspect of the customer requirements is looked into. Virgin Blue has ensured that the relationship with the customer develops at the first instance when the customer comes in contact with the company. This necessarily doesn’t involve entering into a transaction but Virgin Blue need to ensure that they provide the correct guidance and help the customers which has thereby ensured that their marketing strategy is easily accepted by the public. Ability to handle customer complaints Handling customer complaints have become a part and parcel of every organization as they promise something and deliver something else to the customers. Virgin Blue has taken the complaints seriously as it would adversely affect their future business. Not handling the complaints efficiently would make the banks lose vital customers as the customers have a variety of option to choose from. This has an effect on their relationship with the customers and a strategy has been devised by Virgin Blue to ensure that customer is satisfied with the system and the responsibilities of the organization towards the customer are fulfilled. A situation highlighting an ethical dilemma is when a customer is not charged for certain function but others are charged highlights the differences in ethical responsibility towards different customers. This is an area that Virgin Blue need to watch out for as doing so dilutes the image of the bank and makes customer move to other bank. This is a situation which is very tricky for the company and they need to use their skills and expertise to ensure that it doesn’t fall them into an ethical trap. Improved Corporate Governance The economic crisis impacting the world has made Virgin Blue look into the concept of corporate governance with more care. This has made economies look towards taking proper decisions so that the organizations look after the customers, employees, and community and share holders (Silva, 2004). This has made organization consider this aspect seriously which is seen in Virgin Blue. Virgin Blue has looked towards incorporating both the agency theory and stewardship theory to ensure that they are able to ensure proper corporate governance. Virgin Blue has agents who will work on behalf of the principal owner i.e. the shareholders and are given certain incentive for it (Nicholson, 1998). This thus looks into the problems encountered between the management and the share holders. To ensure that they get proper governance shareholders need to incur agency cost where they hire someone from outside the organisation who audits the performances, communicates with the shareholders regarding the changes and brings forward issues which might harm the shareholders (Fama, Eugene & Jensen, 1983). Virgin Blue has also looked into this concept and tried to ensure that they look towards having the different model of corporate governance installed in their working arena which ensured that the results are closely monitored and the organization is able to ensure best result for the stakeholders. Ability of integrate the workforce The changes seen in the work force diversity due to opening up of economies has resulted in Virgin Blue looking towards having a tool which ensures that they are able to integrate the work force. Virgin Blue as a result of it has been able to create a positive workplace environment (Kramar, Bartram, Cieri, Noe, Hollenbeck, Gerhart, and Wright, 2011). Virgin Blue for the successful marketing stratgegy looks towards having employees from different race, gender, background, sexual orientation and other factors. This has helped Virgin Blue to ensure that they are able to understand the local typologies of the place and look towards hiring talent from the local workforce (Hailey, Farndale and Truss, 2005). This has ensured that Virgin Blue is able to understand the ground conditions better and take steps which looks towards building a base of customer who believes in the well being of the organization. This has helped Virgin Blue to be able to look towards working on the different areas of business that will ensure maximum benefit from the marketing strategy used by them. Ability to develop international relations International relations is defined as a relationship between countries which are engaged in trade them through agreements, behavior or any other purpose which helps to unite the economies towards a single cause (International Relations, 2011). International relation looks to bring the best out of economies as it looks towards taking steps which are both the mutual benefit of all (Rummel, 2002). Virgin Blue has been able to develop sound international relations with its business partners and ensured that they are able to provide quality services all around the world. This has helped Virgin Blue to build a brand name and has helped them to transform their business by ensuring connectivity over different destinations so that they are able garner the best results out of it. Ability to utilize knowledge management towards growth Virgin Blue has given a lot of importance to knowledge management and used different collaborative tools which helped them to improve the performance of the organization and ensure better coordination among the employees and customers. One of the collaborative tools used by Virgin Blue is Ultimatix. This is a portal developed by Virgin Blue which is used through the intranet and allows the system to be merged with sub portals thereby increasing the quality management system, software productivity improvement, training materials and tools information which helped the employees. This led to the creation of centres were dialogues among the employees were allowed thereby helping to achieve better results. Ability to train & motivate the work force Virgin Ble also ensured that the employees were trained continuously and had different programs for new comers, learned employees and employees that were experience. They also followed a concept of job rotation which ensured that employees were able to perform on different jobs thereby keeping them active and helping them identify their skills and shaping those. This proved very collaborative as it helped the company ensure that they were able to handle the customers better and provide with solutions that they were seeking for. This has helped Virgin Blue in developing the required atmosphere that has ensured maximum customer satisfaction and has ensured growth for the business. Ideas to incorporate in Business The successful marketing strategy of Virgin Blue brings forward different marketing strategy that I can look towards incorporating in my business so that I am able to succeed in it. Firstly, I need to ensure that I set my mission and vision goals clearly. This will give the employees the required direction and will also ensure that the efforts are not wasted. While doing so I need to ensure that the long term goals are broken down into smaller strategic objectives which will ensure smooth transformation of the business and will ensure maximum productivity. I also need to ensure that the target customer is identified correctly. This will help the marketers to ensure proper marketing strategy so that the correct customer is aimed at. This will also help in incorporating clarity about the product and will ensure that the employees’ efforts are directed in the correct direction. Along with it I need to understand the impact of external environment and take necessary steps so that the effect reduces to the largest extent. I also need to look towards understanding the different aspect of human resource and operations and ensure that the workforce is continuously motivated and trained so that they can take responsible position. Overall, I need to ensure that all the minute areas that can have an effect on the business performance is looked into so that the objectives and goals of the business can be attained. Conclusion Virgin Airlines has been able to incorporate the different marketing strategy in a way that has helped them to ensure that they are able grow. The company has been able to understand the different factors and have moulded those factors towards the growth of the organization. This provides important learning that other businesses can look towards picking up which will ensure growth of the business. References Czinkota, M.R. & Ronkainen, I. A. 2004, International Marketing, 7th edn. South-WesternPublishing:Australia. Fletcher, R. and Crawford, H. 2011, International Marketing: An Asia-Pacific Perspective, PearsonAustralia. Fama, Eugene, & Jensen, M. 1983. Agency Problems & Residual Claims. Journal of Law & Economics, Volume 26, page 327-349 Hailey, V.H., E. Farndale and C. Truss 2005. The HR Department's role in organizational performance. Human Resource Management Journal 15(3): 49-66. International Relations. 2011. Discuss the meaning and scope of international relations. What is the media of international relations in modern times? Retrieved on November 12, 2011 from http://internationalrelationsbydinesh.blogspot.com/2009/12/discuss-meaning-and-scope-of.html Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck., J, Gerhart., B, and Wright, P. 2011. Human Resource Management: Strategy, People, Performance, McGraw Hill: Sydney. Phillip, K. & Gary. A. 2001. Principles of Marketing, 9th ed. Upper Saddle River, NJ: Prentice Hall, p.245 Nicholson, M. 1998. Applying Agency Theory and the concept of corporate governance. Retrieved on November 11, 2011 from http://www.lotsofessays.com/viewpaper/1706098.html Rummel, R. J. 2002. Understanding Conflicts & War. Volume 4. Retrieved on November 12, 2011 from http://www.hawaii.edu/powerkills/WPP.CHAP2.HTM Silva, M. 2004. Corporate Governance in a turbulent world. Retrieved on November 11, 2011 from http://www.allbusiness.com/business-planning/business-structures-incorporation/866368-1.html Read More