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This is a university graded marketing plan for Virgin Atlantic's new UK domestic flight service named Little Red (Launched March 2013)
This marketing plan includes:
-Executive Summary
-Corporate Objectives
-Situation Review
-Competitive Analysis
-Perceptual Map
-Market Segmentation & Targeting
-Key Market Trends
-Detailed SWOT Analysis
-Portfolio Summary (Includes Portfolio Matrix)
-PESTLE Analysis
-Analysis Of The Current Market
-Porters Five Forces Analysis
-Strategic Objectives
-Marketing Mix (7P's)
-Proposed Marketing Budget
Table of Contents
1. Executive Summary
2. Corporate Objectives
2.1 Mission
2.2 Objectives
3. Situation Review
3.1 Market Analysis
3.2 Competitive Analysis
4. Marketing Audit
4.1 Perceptual Map
5. Marketing Segmentation & Targeting
5.1 Key Market Trends
5.2 Business Travel Trends
6. SWOT Analysis
6.1 Internal Analysis
6.2 External Analysis
7. Portfolio Summary
8. PESTLE Analysis
9. The Current Market
9.1 Key Market Trends
9.2 Budget business travel
9.3 High speed rail and international train links
10. Five Forces Analysis
10.1 Buyer Power
10.2 Supplier Power
10.3 New Entrants
10.4 Threat of Substitutes
10.5 Degree of Rivalry
11. Strategic Objectives
11.1 Little Red Competitive Positioning
11.2 Goals for the Virgin Business Portfolio
11.3 The Virgin Competitive Advantage
11.4 The Virgin Core Competencies
12. Marketing Mix
12.1 Product
12.2 Price
12.3 Promotion
12.4 Place
12.5 Process
12.6 People
12.7 Physical Evidence
13. Campaign Timeline
14. Marketing Budget
Project Goals and Thematic Focus
The primary goal of this marketing plan is to introduce "Little Red", a new Virgin Atlantic sub-brand, into the UK domestic short-haul market. The strategy aims to challenge the British Airways monopoly on routes between London and Scotland/Northern England by leveraging the established Virgin brand identity, superior service quality, and competitive pricing to gain a 5% market share within the first year while simultaneously feeding long-haul international traffic to Virgin Atlantic.
- Competitive positioning in the premium UK domestic travel segment.
- Market development strategy focusing on business travelers and loyalty integration.
- SWOT and PESTLE environmental analysis of the current UK aviation industry.
- Strategic alignment with Virgin Atlantic's existing international long-haul operations.
- Comprehensive Marketing Mix implementation strategy (Product, Price, Promotion, Place, Process).
Excerpt from the Book
Little Red Competitive Positioning
Virgin Little Red intends to position itself as a market challenger to the monopoly of British Airways in the premium segment of domestic air travel in the UK. In the context of the Ansoff Matrix, this is considered market development as it is utilising existing knowledge and services in a new market. More specifically, the objective is to achieve a market share of 5% in the UK in first 12 months, as measured by total passengers carried.
In terms of the Boston Matrix, Little Red is categorised as a problem child as it is a new brand being launched. Since Virgin is supporting the brand, it is expected to develop into a rising star quickly and eventually a cash cow. The speed of the process is important as we wish for Little Red to be a successful extension strategy for Virgin Atlantic in its product lifecycle (shown below).
Summary of Chapters
1. Executive Summary: Provides an overview of the launch strategy for Little Red, focusing on entering the UK domestic market to target business customers.
2. Corporate Objectives: Outlines the mission to compete with British Airways and sets specific 12-month goals for market share and passenger volume.
3. Situation Review: Analyzes the decline in domestic scheduled passengers and the competitive landscape dominated by budget airlines and British Airways.
4. Marketing Audit: Examines market segments and positions Little Red within the premium sector using a perceptual map.
5. Marketing Segmentation & Targeting: Focuses on the business traveler demographic, analyzing social class, age, and growth trends.
6. SWOT Analysis: Evaluates internal strengths and weaknesses alongside external opportunities and threats facing the new sub-brand.
7. Portfolio Summary: Uses a matrix to assess the importance of different market segments, identifying connecting flights as the most lucrative.
8. PESTLE Analysis: Details the political, economic, social, technological, environmental, and legal factors impacting the business.
9. The Current Market: Discusses industry growth, environmental awareness trends, and the impact of high-speed rail on travel choices.
10. Five Forces Analysis: Provides a structural analysis of the industry regarding buyer power, supplier power, new entrants, substitutes, and competitive rivalry.
11. Strategic Objectives: Defines the competitive positioning of Little Red and the goals for the Virgin business portfolio, including load factor increases.
12. Marketing Mix: Details the operational strategy covering product features, pricing, promotional campaigns, distribution, processes, people, and physical evidence.
13. Campaign Timeline: Presents a 12-week schedule for the marketing launch, including advertising and promotional events.
14. Marketing Budget: Estimates the necessary financial investment for the campaign and plans for future effectiveness assessments.
Keywords
Virgin Atlantic, Little Red, UK domestic market, British Airways, business travel, market challenger, premium brand, Ansoff Matrix, Porter's Five Forces, PESTLE analysis, airline marketing, customer loyalty, Flying Club, competitive positioning, operational strategy.
Frequently Asked Questions
What is the core purpose of this document?
This marketing plan details the launch strategy for "Little Red", a new domestic short-haul sub-brand of Virgin Atlantic aimed at competing in the UK domestic market.
Which customer group is the primary target for Little Red?
The primary focus is on the business traveler segment, targeting those living over three hours from London who require connectivity to international destinations.
What is the primary business objective of the launch?
The goal is to capture a 5% market share of UK domestic flights within 12 months and to increase the profitability and load factor of Virgin Atlantic’s international routes by feeding them with domestic passengers.
Which scientific/business frameworks are used to analyze the situation?
The plan utilizes several strategic tools including the Ansoff Matrix, Boston Matrix, SWOT analysis, PESTLE analysis, and Porter’s Five Forces model.
What does the marketing mix cover?
The marketing mix encompasses the 7Ps: Product, Price, Promotion, Place, Process, People, and Physical Evidence, ensuring a consistent premium Virgin experience.
Which are the most significant keywords for this plan?
Key terms include Virgin Atlantic, Little Red, UK domestic market, business travel, competitive positioning, and market development.
How does Little Red intend to compete with British Airways' dominance?
Little Red plans to offer a higher quality, "boutique" service at a competitive, price-matched rate, supported by a strong loyalty program and aggressive, attention-grabbing marketing.
What role does "wet-leasing" play in the operational strategy?
Wet-leasing aircraft from Aer-Lingus is a strategic choice to reduce upfront capital expenditure and operating costs during the launch phase.
How does the plan account for environmental concerns?
The plan acknowledges the rising environmental awareness among consumers and suggests potential future investments in greener technologies and sustainable fuels.
Why are connections to London Heathrow important?
Connecting domestic passengers to Heathrow is critical because it creates a profitable synergy, allowing Virgin Atlantic to maximize the load factor on its long-haul international flights.
- Quote paper
- Student James Carter (Author), 2013, Marketing Plan Example: Virgin Atlantic Little Red, Munich, GRIN Verlag, https://www.grin.com/document/213738
