This situational analytical approach on Virgin Australia domestic business class product and its ambitious ‘Game Change’ strategic plan elict a comprehensive descriptive research data of the product, distribution, competition, target market and macro environmental situations which are exploited with SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. The objectives draw out three main marketing issues- cost control, improvement to competitive advantage without lowering pricing alone and strengthening its position as a full service carrier. Those factors that affect the product’s performance can then generate new insights and strategies about the product sustainability in the dynamic characteristics of demand and the proliferation of the airline market segments.
The essence of the Game Change strategic plan involves activities that are different from the incumbent airline. This differentiation is important in order to knockout its competitive advantage over rivals. Virgin must compete using its valuable tools and unique value based on a tailored mix of activities that differentiate it from rivals but not lowering its pricing alone to attract travellers.
The ethos of Virgin Australia’s vision is the ‘choice of airline’ that must match into the new business model in the marketing process. To support this view, fundamental changes are being embedded and underway according to plan which requires a different business model and interactions. Virgin has opted and entered into the growth strategies of product development and diversification through product/brand extension. The business class product is an example of brand extension which will be discussed.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- Virgin Australia- Company snapshot
- The emergent of a new low cost carrier-Virgin Blue
- The Game Change strategy and a new name- Virgin Australia
- Financial proposition and corporate vision
- Product overview
- Sydney-Perth business class product overview
- Strengths and weaknesses in the present marketing mix
- Product
- Promotion
- Price
- Distribution
- The market situation
- Identified target markets
- Size of Target Markets
- The product situation
- Product and brand recognition
- Market share
- Product Sales
- Product issues- Costs and pricing
- The distribution situation
- The Competitor Situation
- Macro environment situation
- The SWOT analysis
- Identification of main issues
- The tradeoffs between pricing and profitability
- 'Choice of airline': Something not much different
- Effect of communication technology
- First class value at the price of business class
- Loyalty as a long term relationship
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to conduct a situation analysis of Virgin Australia's domestic business class Sydney to Perth product and its 'Game Change' strategic plan. The analysis utilizes descriptive research data across various aspects of the business, culminating in a SWOT analysis. The main objective is to identify key marketing issues and potential strategies for product sustainability within a dynamic and competitive market.
- Analyzing Virgin Australia's 'Game Change' strategic plan.
- Assessing the strengths and weaknesses of Virgin Australia's marketing mix.
- Evaluating the competitive landscape and market situation.
- Identifying key marketing issues, such as cost control and competitive advantage.
- Exploring the sustainability of Virgin Australia's business class product.
Zusammenfassung der Kapitel (Chapter Summaries)
Executive Summary: This report provides a detailed situation analysis of Virgin Australia's domestic business class Sydney-Perth route and its 'Game Change' strategy. It examines the product, distribution, competition, target market, and macro environment, culminating in a SWOT analysis. The analysis identifies three main marketing issues: cost control, enhancing competitive advantage without solely relying on price reductions, and reinforcing its position as a full-service carrier. The 'Game Change' plan emphasizes differentiation from competitors to achieve a competitive edge, focusing on meeting the needs of demanding business travelers through a unique value proposition.
1. Introduction: This chapter likely introduces the scope and objectives of the report, setting the stage for the in-depth analysis of Virgin Australia's 'Game Change' strategy and its impact on the Sydney-Perth business class route. It would provide background context and define the key questions the report seeks to answer.
2. Virgin Australia- Company snapshot: This section presents an overview of Virgin Australia's history, its evolution from a low-cost carrier (Virgin Blue) to a full-service airline, and the strategic implications of its rebranding and the 'Game Change' initiative. It also covers the company's financial situation and overall vision.
3. Product overview: This chapter focuses on the specifics of Virgin Australia's Sydney-Perth business class product. It likely details the features, services, and overall customer experience offered, highlighting the aspects of the product intended to differentiate it from competitors and attract business travelers.
4. Strengths and weaknesses in the present marketing mix: This chapter provides a critical assessment of Virgin Australia's marketing strategy, analyzing its product, promotion, pricing, and distribution channels. It identifies strengths that contribute to the airline's success and weaknesses that hinder its performance or leave it vulnerable to competitors. This section is crucial in understanding the current state of the business before analyzing potential improvements or strategic changes.
5. The market situation: This chapter analyzes the market landscape in which Virgin Australia operates, focusing on target markets for its business class Sydney-Perth route. It would likely detail the characteristics of these target groups, their travel behaviors, and the size of these markets. Understanding the market is crucial to effectively positioning and marketing the product.
6. The product situation: This chapter delves into the performance of the business class product itself, examining brand recognition, market share, sales data, and any issues related to cost and pricing. This provides a detailed picture of the product’s standing within the market and identifies areas for potential improvement or concern.
7. The distribution situation: This chapter focuses on how Virgin Australia's business class product reaches its target customers. This likely encompasses sales channels, booking systems, partnerships, and other distribution strategies. Analyzing this element helps understand efficiency and effectiveness in reaching the market.
8. The Competitor Situation: This chapter provides a comprehensive analysis of Virgin Australia's main competitors on the Sydney-Perth business class route. It examines the competitive landscape, strategies, and market positions of rivals to highlight opportunities and threats to Virgin Australia. Competitive analysis is essential for formulating a successful strategy.
9. Macro environment situation: This chapter discusses the broader environmental factors influencing Virgin Australia, such as economic conditions, regulatory changes, and technological developments. Understanding these macro-level factors is vital for anticipating challenges and capitalizing on opportunities.
10. The SWOT analysis: This chapter presents a synthesis of the previous analyses, combining the internal strengths and weaknesses of Virgin Australia with the external opportunities and threats identified. The SWOT analysis provides a structured framework for strategic planning and decision-making.
11. Identification of main issues: This chapter focuses on the key challenges facing Virgin Australia, such as the trade-offs between pricing and profitability, competitive differentiation beyond price, the impact of communication technology, and the need to deliver first-class value at a business-class price. These issues are crucial in formulating future strategies.
Schlüsselwörter (Keywords)
Virgin Australia, Game Change strategy, business class, Sydney-Perth route, marketing mix, SWOT analysis, competitive advantage, cost control, pricing strategy, target market, brand recognition, market share, distribution channels, macro environment, business travel, full-service carrier, product sustainability.
Virgin Australia Domestic Business Class: A Comprehensive Analysis - FAQ
What is the main focus of this report?
This report conducts a comprehensive situation analysis of Virgin Australia's domestic business class Sydney to Perth product and its 'Game Change' strategic plan. It aims to identify key marketing issues and potential strategies for product sustainability within a competitive market.
What aspects of Virgin Australia are analyzed in the report?
The report analyzes various aspects of Virgin Australia's business, including its history and strategic evolution, product overview (specifically the Sydney-Perth business class offering), marketing mix (product, price, promotion, distribution), market situation (target markets and market size), competitive landscape, macro-environmental factors, and culminates in a SWOT analysis to identify key issues.
What is the 'Game Change' strategy, and how is it addressed?
The 'Game Change' strategy is a key focus, examining its implications for Virgin Australia's transition from a low-cost carrier to a full-service airline and its impact on the Sydney-Perth business class route. The report analyzes how this strategy affects the airline's positioning and competitive advantage.
What are the key marketing issues identified in the report?
The report highlights several crucial marketing issues, including: balancing pricing and profitability, enhancing competitive advantage without solely relying on price reductions, reinforcing its position as a full-service carrier, and ensuring the long-term sustainability of the business class product in a dynamic market.
What kind of analysis is used in the report?
The report utilizes descriptive research data and employs a SWOT analysis framework. This allows for a structured examination of Virgin Australia's internal strengths and weaknesses, as well as external opportunities and threats, to inform strategic decision-making.
What are the key findings of the SWOT analysis?
The specific findings of the SWOT analysis are not explicitly detailed in this preview. However, the report uses the SWOT framework to synthesize information from the various aspects analyzed (product, market, competition, etc.) to identify key strategic implications for Virgin Australia.
What is the scope of the market analysis?
The market analysis focuses on the target markets for Virgin Australia's Sydney-Perth business class route, considering their characteristics, travel behaviors, and market size. It also examines the competitive landscape, including major competitors and their strategies.
What are the main chapters covered in the report?
The report includes chapters on an Executive Summary, Introduction, Virgin Australia Company Snapshot, Product Overview, Strengths and Weaknesses of the Marketing Mix, Market Situation, Product Situation, Distribution Situation, Competitor Situation, Macro-Environment Situation, SWOT Analysis, and Identification of Main Issues. Each chapter delves into specific aspects of Virgin Australia's business and market environment.
What are the key themes explored in the report?
Key themes explored include analyzing Virgin Australia's 'Game Change' strategic plan, assessing the strengths and weaknesses of its marketing mix, evaluating the competitive landscape, identifying key marketing issues (such as cost control and competitive advantage), and exploring the sustainability of its business class product.
What are some of the specific issues discussed within the “Identification of Main Issues” chapter?
Specific issues highlighted include the trade-offs between pricing and profitability, the challenge of differentiating from competitors beyond price, the influence of communication technology on the market, and providing first-class value at a business-class price, ultimately focusing on building customer loyalty.
What keywords are associated with this report?
Keywords include Virgin Australia, Game Change strategy, business class, Sydney-Perth route, marketing mix, SWOT analysis, competitive advantage, cost control, pricing strategy, target market, brand recognition, market share, distribution channels, macro environment, business travel, full-service carrier, and product sustainability.
- Quote paper
- Kok Meng Chan (Author), 2012, Virgin Australia: Situation analysis of the ‘Game Change’ strategic plan, Munich, GRIN Verlag, https://www.grin.com/document/209340
