Events Planning and Management Brand Manage

Question: Summarise Virgin Atlantics background and history, turnover, management structure, current corporate goals and targets, and markets. Your summary should use material from the Virgin Atlantic website, and other relevant online sources. Develop a SWOT analysis to identify Virgin Atlantics current situation in relation to its main competitors. You should identify a minimum of three strengths, weaknesses, opportunities and threats. Your model should be developed referencing core marketing texts with content developed from articles and web sites . Describe the marketing mix and its role in marketing, referencing two relevant theories and concepts. Explain how Virgin Atlantic use the different elements of the marketing mix to promote their brand. You should apply at least one other theoretical model learnt during your lectures. Your explanation should be illustrated with specific examples of Virgin Atlantics events, promotional activities and target audiences . Create a diagram explaining how special events are defined and classified. Your diagram should draw upon relevant core texts. Classify at least four Virgin Atlantic events using the model you have provided. Explain the impact of Virgin Atlantics marketing and events strategy. Answer: Background/ Introduction The Virgin Atlantic (VA) Airways was founded in 1984 by the Richard Branson's Group and has been into operations since then. Virgin has grown to become the second largest carrier in Britain, and it operates in the world's major cities. The Airline enjoys consumer loyalty and recognition globally because of its innovativeness, world-class customer services and on time deliveries (Virgin Atlantic, 2015, p. 2). The management focusses on customer driven services which emphasize on innovation, fun, quality and giving customers services worth their money. From the beginning, Richard Branson's aim was. "To provide the highest quality innovative service at excellent value for money for all classes of air travellers (Virgin Atlantic, 2015, p. 4)." Virgin Atlantic operates thirty routes globally which have been classified into the following market destinations: Ten routes to the United States Six Routes to Asia Four routes to Africa One Route around the Indian Ocean One Middle East route Eight routes to Caribbean destinations. 51% of the Virgin Atlantic's shares is owned by the Virgin Group while 49% is owned by the Singapore Airlines sold by Richard Branson in 1999 at a cost of 600.25 million (Virgin Atlantic, 2015, p. 35). The company is governed by a 19 member official board under the leadership of Craig Kreeger as the Chief Executive Officer and Richard Branson as the Chairman. Through this management, the company's corporate goal is simply to build its foundation by focussing on leisure and business markets and offering effectiveness and efficiency to the customers (Virgin Atlentic, 2015, p. 23). The company's success is shown in its recent reports. As at December 31st, 2015, Virgin Atlantic was valued at 289.4 million compared to 122. 5million during the 1999 fiscal year. Likewise, its turnover and pre-tax profit were 2,781.9m and 22.5m respectively in 2015. The before-tax profit was a 10.1m improvement from the profit posted during the 2014 financial year (Virgin Atlantic, 2015, p. 36). SWOT ANALYSIS This section considers the Virgin Atlantic's Strengthens, Weaknesses, Opportunities, and Threats in 2015. Strengths The company' brand are recognized globally Virgin Atlantic enjoys a strong brand image and a positive perception among its customers. The brand is associated with quality, individuality, fun and the value for money. The company has won numerous awards from its brands and effective advertisement campaigns (Virgin Atlantic, 2015, p. 23). Enjoys an active network in North Atlantic The North Atlantic remains core to the Virgin Atlantic since its foundation. The North Atlantic, which comprises of Caribbean, contributed to two-third of the company's earnings in 2013. Virgin Atlantic is a major competitor between the U.S. and the U.K markets after British Airways (Virgin Atlantic, 2015, p. 57). The graph below shows the airway's performance in its North Atlantic network in 2013. The joint venture between Virgin and Delta has boosted its revenue The joint venture formed in January 2014 between the two airlines came with the ability to coordinate the operations between the two partners. The JV has been used as a competitive pricing strategy bringing a positive impact on the company's revenue (Virgin Atlentic, 2015, p. 43). Weaknesses Poor profitability record Before the 2015 fiscal year, Virgin Atlantic had recorded losses for three consecutive years. During the 2013 financial year, the company recorded a pre-tax loss of 74m as compared to 105m in 2012. Although the company is moving towards the right direction, the previous losses have affected its operations. The company's performance between 2005 and 2013 can be summarized as below: Under-capitalised balance sheet Virgin Atlantic under-capitalised its balance sheet considering its huge debt position which comprised of annual rental leases. The brand "Little Red" has not succeeded in the market forcing the VA to pull out of the domestic UK market. Opportunities The VA's relationship with Delta is likely to improve cost synergies VA should build its capital base from the Joint Venture to drive its cost synergies. The strategy would be beneficial to the two companies over time. A 1 ppt reduction on the operating cost would result in 0.5 ppt gain on the operating margin. Joining and alliance VA is not a member of any global alliances. However, the management has been considering to join a branded alliance to enhance its future growth opportunities. Using its Boeing 787,788, and 789 to assist in reducing its operating costs and invent new route networks. The Boeing deliveries are known for their efficient engine and lighter fuselage which would help in the cutting of costs. Threats Over-concentration on the North, Atlantic network makes VA less diversified in its operations. This leads to overcapacity which has resulted in demand and supply imbalance in other routes. The ongoing investigation by the European Commission on the Delta's non-EU investments is likely to affect VA's operations negatively if confirmed and restrictions applied. Fierce competition from the Gulf airline especially on the Europe-Asia route is likely to lower VA's revenue in future. Marketing Mix and its Role The marketing theory states that a marketer should present the right products at the right time, in the right place and at the right place. A marketing mix comprises of elements such as product, Price, Place and Promotion (Alreck Settle, 1999, p. 49). The 4P's of marketing can be presented diagrammatically as shown below: An effective marketing mix should meet the conditions stated below: The product should have the right features working well and good packaging that meets the customer needs. Customers have become price sensitive. Therefore, the right pricing strategy ought to be used. The products should be well positioned and available when required by the customers. Marketers should ensure that goods arrive in the market at the right time and are positioned correctly to capture the attention of the potential consumers (Desmond Stone, 2007, p. 113). The availability and existence of the products should be communicated to the target market using promotion techniques. Effective promotion helps the company to increase its sales revenue (Hollensen, 2015, p. 88). By using a balanced and effective marketing mix, any organization is in the position of creating a competitive advantage in any market. Marketing mix addresses the needs felt in a particular market segment. The mechanisms are used to ensure that the message contained in the brand had been communicated to the targeted people, in the right way, and at the right time (Ferrell Hartline , 2010, p. 75). Application of Marketing mixes by the Virgin Atlantic First, the VA's marketing team thoroughly checks its products to ensure that they meet the needs and the demands of the customers before they are released in the market. The company knows the importance of making a long-term impression with its customers using TV advertisement campaigns. The VA's brand is easily recognized using the colour red which symbolizes beauty, passion, and firey (Donnelly, 2015, p. 42). The products undergo several tests to ensure that they are fit for the customers. Second, the company has heavily invested in the promotion of its products. The marketing team involves an aggressive campaigning strategies to win more customers. Some of the marketing methods used are TV and online adverts, as well as promotional materials like flyers and banners (Davis, 2010, p. 111). Third, the VA's marketing team has to effectively decide on the prices of its respective products. Pricing is used to attract customers to the company by creating a positive impression about the company. The company uses a lower pricing strategy to gain competitive advantage. Likewise, the products are priced based on specific events, popularity of the destinations, and seasons are occurring in the particular markets (Hawkins, 2001, p. 53). Lastly, the positioning of the products is also important. The company uses easy to use and up to date websites and online sites to interact with its customers. For example, by simply typing "flights from the UK" under the Google search engine, the first advert to appear belongs to the VA (Donnelly, 2015, p. 42). A picture of the VA's marketing team Definition and classification of special events Diagrammatical presentation of definition and classification of special events conducted by companies is as shown below: Type of Special Event Description Business dinners Organized to celebrate milestones as well as bringing the management, employees and customers together Sponsorships and charity functions Sponsorships are used reward employees, increase customer loyalty, and attract new ones as well as raising money for charities. Networking events Aimed at reaching new customers, vendors and business partners Product launches Used to create product awareness among the customers. Customer and Employee appreciation parties Businesses focussing on customer retention host such parties to appreciate them. Board meetings Used to review the companys progress as well as formulating future strategies and goals. Shareholder meetings Such events are held to update the shareholders on the issues facing the company as well as its financial position during the fiscal year (Mullins Walker, 2012, p. 176). Press conferences These events are used to get media coverage of the existing and new products. Trade Shows Trade shows are used to position a company and its brands as a market leader VAs definition and classification of special events Type of Special Event Description Sponsorship VA has engaged in several sponsorship events since 2009. First, the company conducted birthday celebrations to its employees and customers. Second, the company engaged in retro advertisement events to create public awareness and media coverage of its products and services (Kotler, 2001, p. 54). Corporate Social Responsibility In 2014, the company converted its run-down arts centre in Hong-Kong to embrace the local culture. Likewise, in 2008, VA painted schools in Nairobi, Kenya as well as helping 1,500 villagers to access fresh water as part of celebrating its 10-year operation in Nairobi (Donnelly, 2015, p. 43). Small events The company uses press sides and Roadshows to create public awareness. Likewise, stewardesses are sent globally to give out virgin branded diaries to shopping centres and newsrooms. The events aim at keeping Virgin brands memorable and fresh in the minds of the potential customers (Mohr, et al., 2013, p. 43). Attracting stars and celebs With the help of Richard Branson, the company has attracted renowned stars and celebrities used in launching its new products. For example, in 2007 the company contracted the Spice Girls to open its Heathrow terminal (Mullins Walker, 2012, p. 71). Marketing and events strategy Even though Virgin Atlantic is a major competitor in the global airline business, it has come up with the most effective marketing and event management strategies to gain recognition. To create marketing and events strategies, VA took the following initiatives: First, the company classified its customers into adventurous, Mavericks and pioneering. After the classification, the company developed strategies to make the experience of their customers to be ultra-cool and fun. For example, the customers can get nail clean up, food and drinks and massages once on board (Virgin Atlentic, 2015, p. 55). Using the hashtag, "#FITFOO" to replicate its tag name, "Flying in the face of ordinary", VA is effectively positioned in the market. In short, VA through effective marketing and event strategies, the company has become known by the customers irrespective of fierce competition from industry giants like the British airline and the Delta Airlines (Virgin Atlentic, 2015, p. 57) References List Alreck, P. Settle, R., 1999. Strategies for building consumer brand preference. J. Prod. Brand Manage, Volume 8 , pp. 130-144. Baker, M. Hart, S., 2007. Product Strategy and Management. London: Pearson. Chernev, A., 2014. Strategic Marketing Management. 8 ed. Syndey: Amazon. Davis, J. A., 2010. Competitive Success- How Branding Adds Value. Chichester, UK: John Wiley Sons. Desmond, J. Stone, M. A., 2007. Fundamentals of marketing. London, UK: Routledge. Donnelly, R., 2015. Virgin Atlantic: Marketing Excellence. Journal of Marketing. Ferrell, O. C. Hartline , . M. D., 2010. Marketing Strategy. 5th edition ed. Chicago: South-Western. Hawkins, D. I., 2001. Consumer behavior: Building Marketing Strategy.. 8thed ed. Boston: Irwin. Hollensen, S., 2015. Essentials of Global Marketing. 2nd edition ed. Essex, England: Harlow. Kotler, P., 2001. A Framework for Marketing Management. Upper Saddle River, NJ, USA: Prentice-Hall. Mohr, J., Sengupta, S. Slater, S., 2013. Marketing of High-Technology Products and Innovations. New International Edition ed. New Jersey: Pearson. Mullins, . J. Walker, O., 2012. Marketing Management: A Strategic Decision-Making Approach. 8 ed. New York: McGraw-Hill Education. Virgin Atlantic, 2015. Annual Report 2015. London: s.n. Virgin Atlentic, 2015. Event Championing brand experiences, London,UK: Event Magazine.