The purpose of the report is to develop a marketing plan for Virgin Australia based on the business analysis report prepared before by creating ideas for how the company can best conduct their marketing activities.
Virgin can undertake market penetration strategy by a combination of competitive pricing strategies, advertising, promotion and perhaps more resources dedicated to personal selling. It can also expand its destinations to tap Qantas market share and can introduce new service dedicated to business travellers.
To achieve its objective Virgin could improve in-flight services, introduce frequent flyer miles programme and tailor packages for young families, adventurers and students. Peak and off-peak pricing, student discounts, stand-by fares, early booking discounts could also be introduced as part of its pricing strategy. Advertising activity could include direct mail, TV, press, magazines, outdoor posters etc. A customer connection database can be used to information to send birthday greetings or information about the quality of customer service. Virgin has to extend its operations two fold if it wants to compete with Qantas. High quality first class private lounges with premium class private suite could be introduced for business customers. To position itself in the mind of business customers, it has to develop a two-brand strategy, targeting both the segments of leisure and business customer market. Attributes which may not be so important for leisure travellers have to given top priority to attract business customers.
In order to facilitate an integrated approach for managing marketing resources different softwares could be used organization-wide such as Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Efficient Consumer Response (ECR) systems etc. Integrated marketing communications (IMC) approach can be used to estimate the value of marketing mix executions based on the changes in customer behaviour these executions generate.
The marketing strategy has to be divided into bits and pieces so that it could be handled easily. Communication channels have to be open to discuss new ideas, issues, challenges and opportunities. Additionally, any achievement has to be rewarded while repetitive failures have to be penalized.
Table of Contents
- Executive Summary
- 1. Introduction
- 1.1 Company Background
- 1.2 Purpose
- 2. Marketing Objectives
- 3. Financial Objectives
- 4. Target Markets
- 4.1 Existing Market
- 4.2 Potential Market
- 5. Strategy
- 5.1 Market Penetration
- 5.2 Market Development
- 5.3 Product Development
- 6. Marketing Mix
- 6.1 Product
- 6.2 Price
- 6.3 Promotion
- 6.4 Place
- 6.5 Packaging
- 6.6 Positioning
- 6.7 People
- 7. Controls
- 8. Implementation
Objectives and Key Themes
This marketing plan aims to outline strategies for Virgin Australia to achieve a 10% sales growth and a 25% increase in business traveler market share by 2013. The plan focuses on expanding beyond the existing leisure market to capture a larger share of the business travel sector.
- Market Penetration and Expansion
- Targeting Business Travelers
- Integrated Marketing Communications
- Pricing Strategies
- Service Improvements
Chapter Summaries
1. Introduction: This chapter introduces Virgin Australia, highlighting its origins as a low-cost carrier and its subsequent transformation into a "new-world carrier" with enhanced services and a rebranding. It establishes the report's purpose: to develop a comprehensive marketing plan for the airline based on prior business analysis. The historical context and current status of Virgin Australia are established as a foundation for the marketing strategies proposed later in the report.
2. Marketing Objectives: This section focuses on defining SMART (Specific, Measurable, Achievable, Realistic, and Timely) marketing objectives for Virgin Australia. The primary goal is achieving a total revenue of $1016 million in 2013, representing a 10% increase. The chapter also emphasizes a shift in target market, moving beyond the primarily leisure-focused customer base to include business travelers, thus requiring a more nuanced and comprehensive approach to marketing strategies.
4. Target Markets: This chapter details Virgin Australia's target markets. It differentiates between the existing market (primarily leisure travelers) and the potential market (business travelers). The distinction is crucial because the marketing strategies needed to attract business travelers differ significantly from those targeting leisure travelers. This section lays the groundwork for tailored marketing campaigns targeting each specific demographic.
5. Strategy: This chapter outlines the proposed marketing strategies. Market penetration, market development, and product development are discussed as key approaches. Market penetration involves strategies like competitive pricing, advertising, and personal selling to increase market share within the existing target markets. Market development targets expanding into new markets, such as broadening their destination reach to compete more directly with Qantas. Product development refers to new services, such as those aimed at business travelers. The chapter integrates these various strategies to build a holistic marketing approach.
6. Marketing Mix: This comprehensive chapter delves into the specifics of the marketing mix (Product, Price, Promotion, Place, Packaging, Positioning, and People). It covers product offerings, encompassing various service levels and amenities; pricing strategies such as peak/off-peak pricing and discounts; promotional plans utilizing diverse channels like direct mail, TV, and print media; distribution channels; and packaging and positioning of the brand to resonate with the target customer. It also emphasizes the importance of creating a positive customer experience, emphasizing the 'people' aspect of the marketing mix.
7. Controls: This section emphasizes the importance of implementing mechanisms to monitor the effectiveness of the marketing plan. It likely suggests a system of metrics and reporting procedures to track progress, identify areas for improvement, and adapt the strategy as needed. This section is critical for demonstrating accountability and responsiveness to changing market dynamics.
8. Implementation: This chapter details the practical implementation of the proposed marketing plan. It might include details of resource allocation, timelines, and responsibilities. It likely stresses the need for open communication channels and effective collaboration to ensure successful execution. The chapter prepares the reader for putting the plan into action.
Keywords
Virgin Australia, marketing plan, market penetration, market development, product development, business travelers, leisure travelers, pricing strategies, integrated marketing communications, SMART objectives, Qantas, competitive advantage, brand positioning, customer service.
Virgin Australia Marketing Plan: Frequently Asked Questions
What is this document?
This document is a comprehensive marketing plan for Virgin Australia. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The plan aims to achieve a 10% sales growth and a 25% increase in business traveler market share by 2013.
What are the main objectives of the marketing plan?
The primary goals are to achieve a 10% increase in total revenue (reaching $1016 million in 2013) and a 25% increase in business traveler market share by 2013. This involves expanding beyond the existing leisure market to capture a larger share of the business travel sector.
What are the key themes addressed in the plan?
Key themes include market penetration and expansion, targeting business travelers, integrated marketing communications, pricing strategies, and service improvements. The plan focuses on developing a comprehensive and nuanced approach to marketing to successfully attract both leisure and business travelers.
What target markets are addressed?
The plan addresses two main target markets: the existing market (primarily leisure travelers) and the potential market (business travelers). The strategies for attracting each market segment are differentiated, recognizing the unique needs and preferences of each group.
What marketing strategies are proposed?
The plan outlines three main marketing strategies: market penetration (increasing market share within existing markets), market development (expanding into new markets), and product development (introducing new services and offerings). These strategies are integrated to create a holistic marketing approach.
What aspects of the marketing mix are covered?
The marketing mix (the 7 Ps) is comprehensively addressed, covering product offerings, pricing strategies (including peak/off-peak pricing and discounts), promotional plans (using various media channels), distribution channels, packaging, brand positioning, and the importance of customer service (people).
How will the effectiveness of the plan be monitored?
The plan emphasizes the importance of implementing control mechanisms to monitor its effectiveness. This likely involves setting up a system of metrics, reporting procedures, and regular reviews to track progress, identify areas for improvement, and adapt the strategy as needed.
How will the plan be implemented?
The implementation chapter details the practical steps to put the plan into action. This likely includes aspects such as resource allocation, timelines, responsibilities, communication channels, and collaborative efforts to ensure successful execution.
What are the key words associated with this marketing plan?
Key words include: Virgin Australia, marketing plan, market penetration, market development, product development, business travelers, leisure travelers, pricing strategies, integrated marketing communications, SMART objectives, Qantas, competitive advantage, brand positioning, and customer service.
What is the overall purpose of this marketing plan?
The overarching purpose is to provide a detailed and actionable strategy for Virgin Australia to achieve significant revenue growth and increase its market share, particularly within the lucrative business travel sector. It builds upon prior business analysis and provides a comprehensive framework for future marketing efforts.
- Quote paper
- Yasir Farabi (Author), 2012, Marketing Plan of Virgin Australia, Munich, GRIN Verlag, https://www.grin.com/document/197080
