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Virgin Atlantic

- An analysis of its operations in its current market environment
by

Adam Conrad

on 23 October 2012

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Transcript of Virgin Atlantic

Why Virgin Atlantic? A case study by:
Georgios Efstratiadis, Turan Massimov,
Adam Conrad and Pradyumna Damani Introduction Mission "To grow a profitable airline, that people love to fly and where people love to work" - Sir Richard Branson, founder of Virgin Group History Formed 1984
One of 400 companies
First flight on 22 June 1984 "Richard announced that a high quality, value for money airline would begin operating in three months" Achievements 5 million passenger milestone "Best long haul airline, 2009"
- Sunday Times Leading transatlantic airline of the world, 2009 SWOT Well known parent company



Inspiring leader

Innovative


Price leader Small market share Managerial problems


Dependency on founder CEO steps down Relocation


Merging


Differentiation


Renewable Energy Bad publicity


Random shocks Future goal: Reduce fuel consumption Circle of Operations
Airline industry stands for 2% of TIGW "Our airline consumes about 3 billion litres of fuel per year"
- Sir Richard Branson, Virgin Atlantic Stakeholders Market Niche "What customers do the airline serve?" "Who are the main stakeholders?" Focus Groups Marketing Brand image Front figure 7 P:s Product
Place
Price
Promotion
People
Process
Physical evidence Consistent to Purpose? "We offer our customers a Virgin experience, and we make sure that this Virgin experience is a substantial and consistent one, across all sectors of our business."

"The Virgin brand is a guarantee that you'll be treated well, that you'll get a high-quality product which won't dent your bank balance, and you'll get more fun out of your purchase than you expected - whatever it is." - How is Virgin Atlantic presented to its customer? Market Position 2nd largest long haul airline in the UK Pretax operating profits 2011 £18,5 million Star Alliance Facts Health Environment People's welfare Sustainability and CSR "We carefully research the Achilles heels of different global industries, and only when we feel we can potentially turn an industry on its head, and fulfil our key role as the consumer's champion, do we move in on it." Rivals Fighting the "BIG THREE" AIDS HIV Malaria An inspiring promise Sponsoring reforestation
projects Command Center for Environmental Questions Biofuel investments Fundraisers "Rock the Kasbah" 2007 South Africa Schools Conclusion Public figure Price Leader Pioneer of Innovations Environment Conservation Eccentric Marketing Strategies Keys of success Recommendations Enter new markets
Lead market innovation
Increase fleet size Contents Initiatives We are happy to answer any questions you might have! Thanks for your attention! List of references:
Academic
1)Virgin atlantic price fixing Honk Kong.

http://www.telegraph.co.uk/finance/newsbysector/transport/7621250/Virgin-Atlantic-accused-of-fixing-Hong-Kong-flight-prices.html
2) Virgin atlantic Heathrow Opening.
http://www.acl-uk.org/UserFiles/File/BAA%20TDR%20consultation%20paper%20_LHR.pdf
3) Virgin Biofuel
http://www.mallenbaker.net/csr/page.php?Story_ID=2016
4) Virgin Info
http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/forstudents.jsp
5)Virgin CEO steps down
http://www.forbes.com/sites/johnclarke/2012/09/09/virgin-atlantic-ceo-steps-down/
6)virgin new market Montenegro/vancuver
http://www.virgin-atlantic.com/gb/en/footer/media-centre/press-releases/press-release220512.html
http://www.virgin-atlantic.com/gb/en/footer/media-centre/press-releases/press-release030612.html
http://www.virgin-atlantic.com/tridion/images/newpolicy_tcm5-540700.pdf
http://www.corporateregister.com/a10723/vir0203-csr-uk.pdf


7) Virgin Annual profit 2012
http://www.virgin-atlantic.com/en/gb/allaboutus/pressoffice/faq/pretaxprofits.jsp
8) Boeing Report on Aircraft Orders 2012-2029
http://www.boeing.com/commercial/cmo/pdf/Boeing_Current_Market_Outlook_2010_to_2029.pdf
9) UK Airline Statistics
http://www.caa.co.uk/default.aspx?catid=80&pagetype=88&sglid=1&fld=2011Annual
10) National Geographic "Airline emission kills..."
http://news.nationalgeographic.com/news/2010/10/101005-planes-pollution-deaths-science-environment/
11) Centre for aviation - aviation analysis
http://centreforaviation.com/analysis/oneworld-losing-market-share-to-skyteam-star-alliance-global-lcc-seats-share-now-231-49107
12) Biography Richard Branson:
"Business Stripped Bare; Adventures of a global entrepreneur"
13) "Screw Business as usual."

Bibliography
International Air Transport Association
http://www.iata.org/pressroom/Documents/annual-report-2011.pdf
Star Alliance 2009 Report
http://www.staralliance.com/assets/doc/en/press/media-library/pdf/General_Presentation_APR09.pdf

Pictures
BA can't get it up
>http://www.virgin.com/richard-branson/blog/our-best-stunt-ever
Flight Destinations
http://www.virgin-atlantic.com/corporate/images/newsustainabilityreport.pdf

Virgin Atlantic Environment Policy
http://www.virgin-atlantic.com/tridion/images/newpolicy_tcm5-540700.pdf

Heathrow Alliances
http://centreforaviation.com/images/stories/2011/september/15/Heathrow_alliances.PNG
British Airways Logo
http://buildonfromthefield.org/2011/04/14/they-buildon-mark-webb-from-british-airways-inspired-by-buildons-mission/british-airways_0/

EasyJet Logo
http://bikyamasr.com/wp-content/uploads/2011/05/easyjet.jpg
American Airlines Logo
http://t0.gstatic.com/images?q=tbn:ANd9GcT29UkZxnNNNmFzW369FTtqFJHvoqUw1E4HX4QW4FL5kyxRIRG8FDUbHy5gFQ
Delta Airlines Logo
https://h30495.www3.hp.com/sips/DeltaAirlines/imgs/DeltaAirlines_Splash.png
Virgin Atlantic customer interactions
http://travelblogland.com/airline-news/virgin-atlantic-bizarre-customer-requests.html
1984 Opening Ceremony of Virgin Atlantic
http://sphotos-b.xx.fbcdn.net/hphotos-ash4/1939_42967737678_181_n.jpg
British Traveller Award
http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/awards.jsp
Richard Branson Hat
http://www.ennyman.com/richard-branson.jpg
War between good and evil
http://www.clipartof.com/portfolio/djart/illustration/tug-of-war-battle-between-good-and-evil-devil-and-angel-6008.html
Air pollution caused by Airline operations
http://12160.info/profiles/blogs/planes-are-flying-and-we-are-dying
Richard Branson Virgin
http://www.planestupid.com/blogs/2008/02/7/flight-activism-virgin-atlantic

richard-branson Jetski

http://travel.usatoday.com/flights/story/2011/04/British-adventurer-Branson-tackles-space-ocean-with-a-smile/46548852/1

Ansoff Matrix w500

http://finntrack.co.uk/mba_sub/organisational_learning.htm

http://imageobjecttext.com/tag/tourists/

http://studyabroad.universiablogs.net/tag/bank-account/

http://www.dailydealmedia.com/virgin-group-considering-daily-deals-venture190/

21st-Brithday-Images

http://www.insidevancouver.ca/2012/05/28/sir-richard-branson-launches-cheeky-

http://www.ablogtoread.com/bulova-accutron-sir-richard-branson-limited-edition-watch/

http://www.spinsouthwest.com/2010/the-lowdown/branson-space-tourism-nearly-ready/


http://www.jaunted.com/story/2008/11/1/135019/022/travel/13+Virgin+Atlantic+Employees+Who+Slammed+Airline+on+Facebook+Sacked,+Dumped+In+Ocean+by+Sir+Branson

http://business-fundas.com/2011/the-8-ps-of-services-marketing/

http://www.123people.co.uk/s/pilita+clark

http://www.bookworld.com.au/book/business-stripped-bare-adventures-of-a-global-entrepreneur/23925136/

http://www.abilitysuccessgrowth.com/tag/pestel-analysis/

http://waracle.net/news/waracle-release-virgin-atlantic-iphone-app/
vancouver-london-virgin-atlantic-service/

http://www.someecards.com/virgin-atlantic-cards/english-accent-thanksgiving-expatriates-virgin-atlantic-funny-ecard

http://www.bestourism.com/medias/dfp/1807

http://www.dailymail.co.uk/home/moslive/article-1283098/Sir-Richard-Branson-hes-willing-risks--especially-lives-new-space-passengers.html

http://blogs.independent.co.uk/2011/12/26/virgin-unite-shows-us-how-to-%E2%80%98screw-business-as-usual%E2%80%99-part-two/

http://www.virginunite.com/Templates/campaign.aspx?nid=521199a2-5847-4ec0-bca1-19052a110da8&id=f010e54f-209d-4736-8586-0a24ae2f35b2jpg

http://sphotos-h.ak.fbcdn.net/hphotos-ak-ash3/530039_10150965086466659_380581337_n.jpg

http://www.missfox.com.au/Portals/0/virgin-unite1.jpg

http://www.sparkpr.com/wp-content/uploads/2010/10/virgingreenfund-comp.jpg

http://www.zimbio.com/photos/Richard+Branson/Virgin+Unite+5th+Annual+Rock+Kasbah+Event/0-DYwiCyQ0x

http://www.virgin.com/people-and-planet/blog/branson-school-of-entrepreneurship

http://www.new-take.com/wp-content/uploads/2010/09/reduce-reuse-recycle.jpg

http://www.gbrowchallenge.com/2010/images/virgintrophy.jpg

http://www.gulf-times.com/mritems/images/2007/11/19/2_185711_1_248.jpg


http://exceedinlife.com/sir-richard-branson-founder-virgin-group/ Introduction
SWOT
Focus Groups
Marketing
Consistency
Market Position
Sustainability and CSR
Conclusion
Q&A ''Number one in the transport sector.'' $25M Virgin Earth Challenge Care for children campaigns Government General Public Ansoff Model 30% Return on Investment 26% Ranked 8th largest
UK Airline company
based on passenger number. Virgin Atlantic
fleet size = 38 planes

Boeing report:
30,900 new planes
in use by 2029. "Plane Exhaust Kills More People Than Plane Crashes"
- National Geographic - Institute of Customer Service Expansion Strategy
Full transcript