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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
- Executive Summary
- Corporate Objectives
- Mission
- Objectives
- Situation Review
- Market Analysis
- Competitive Analysis
- Marketing Audit
- Perceptual Map
- Business Market Penetration
- Marketing Segmentation & Targeting
Objectives and Key Themes
The primary objective of this marketing plan is to launch Virgin Atlantic's sub-brand, Little Red, into the UK domestic short-haul market, focusing on the premium business travel segment. The plan aims to capture market share from British Airways, particularly on routes between London and Scotland.
- Market Entry Strategy for Little Red
- Competitive Analysis within the UK Domestic Airline Market
- Targeting the Business Travel Segment
- Leveraging the Virgin Atlantic Brand and Existing Infrastructure
- Market Growth Opportunities in Underserved Regions
Chapter Summaries
Executive Summary: This section provides a concise overview of Virgin Atlantic's plan to launch Little Red, a sub-brand aimed at the premium segment of the UK domestic short-haul market. The key strategy is to offer a high-quality service comparable to Virgin Atlantic's existing brand at competitive prices, targeting business travelers on routes connecting London with major cities in Scotland and the North of England. The aim is to increase market share at the expense of British Airways' near-monopoly.
Mission: The mission statement outlines Virgin's ambition to compete directly with British Airways in the premium UK domestic air travel market. Little Red aims to provide a seamless Virgin experience, exceeding the quality of service offered by British Airways while maintaining competitive pricing. This section emphasizes the integration of Little Red within the broader Virgin brand ecosystem, offering connections to international destinations via Heathrow.
Objectives: This section details the specific, measurable, achievable, relevant, and time-bound (SMART) goals for Little Red. These objectives include leveraging existing Virgin Atlantic resources to enter a new market, facilitating connections to international flights through Heathrow, achieving 1 million passengers within the first year, and securing a 5% market share of the UK domestic market within the same timeframe. These goals highlight the ambitious growth targets for the new sub-brand.
Situation Review: Market Analysis: This section analyzes the UK domestic scheduled flight market, revealing a decline in passenger numbers between 2007 and 2011. The decrease is attributed to rising airfares driven by taxation and fuel costs, pushing passengers toward alternative modes of transport. This analysis establishes the challenging market conditions faced by Little Red.
Situation Review: Competitive Analysis: This part examines the competitive landscape of the UK domestic airline market, which is dominated by budget airlines and British Airways. Data illustrates the market share held by each airline, showing British Airways' dominance, especially after its acquisition of BMI. This section underscores the key competitor for Little Red – British Airways – and highlights opportunities arising from reduced long-haul traffic for Virgin Atlantic due to the BMI acquisition. The analysis also includes alternative transportation modes (road, rail, bus) and their characteristics impacting Little Red’s competitive positioning.
Situation Review: Marketing Audit: This section provides a detailed comparison of various airlines and transportation options (train, bus), focusing on their pricing, features, limitations, and overall market positioning. The analysis emphasizes the high cost of some airlines due to small market share and highlights Little Red’s positioning as a premium brand with characteristics including in-flight refreshments, comfortable seats, generous luggage allowances, and a loyalty rewards scheme. The comparison reveals gaps in the market which Little Red can fill by offering a premium service at a potentially competitive price.
Situation Review: Perceptual Map: This section visually illustrates the positioning of airlines in the UK market across price and quality dimensions. It categorizes airlines into budget, middle market, and premium segments, explicitly placing Little Red within the premium segment alongside British Airways. This further clarifies Little Red’s strategic positioning and target market within the competitive landscape.
Business Market Penetration: This part focuses on the target market for Little Red: business travelers. It showcases the growth of this market segment and Virgin’s competitive advantage through its loyalty program ('Flying Club') and corporate booking website ('Flying Co'). The analysis highlights the characteristics of the target market, emphasizing geographic location (regions more than three hours from London), demographics (age and gender), and the potential for growth in under-served regions.
Marketing Segmentation & Targeting: This section delves into the specific segmentation and targeting strategy for Little Red, focusing on the geographical areas more than 3 hours away from London with low air travel penetration. It uses demographic data on business travelers, including age and gender, to refine its target audience. The analysis demonstrates a strategic approach to market penetration by targeting a specific group with particular needs and emphasizing the potential for growth in these regions.
Keywords
Virgin Atlantic, Little Red, UK domestic flights, short-haul, business travel, premium segment, British Airways, market share, competitive pricing, market analysis, competitive analysis, marketing strategy, segmentation, targeting, brand loyalty, market penetration, Heathrow.
Virgin Atlantic Little Red Marketing Plan: Frequently Asked Questions
What is the main objective of this marketing plan?
The primary objective is to successfully launch Virgin Atlantic's sub-brand, Little Red, into the UK domestic short-haul market, targeting the premium business travel segment. The plan aims to capture market share from British Airways, especially on routes between London and Scotland.
What are the key themes explored in this plan?
Key themes include a market entry strategy for Little Red, competitive analysis within the UK domestic airline market, targeting the business travel segment, leveraging the Virgin Atlantic brand and existing infrastructure, and identifying market growth opportunities in underserved regions.
What is the target market for Little Red?
Little Red targets the premium business travel segment within the UK domestic short-haul market. Specifically, it focuses on business travelers in regions more than three hours from London, with a demographic focus based on age and gender.
How does Little Red plan to compete with British Airways?
Little Red aims to offer a high-quality service comparable to Virgin Atlantic's existing brand at competitive prices. It will leverage the established Virgin Atlantic brand reputation and infrastructure, while focusing on superior customer experience to differentiate itself from British Airways. The plan also highlights opportunities created by British Airways' acquisition of BMI, which reduced some of Virgin Atlantic's long-haul traffic.
What are the key findings from the market analysis?
The market analysis reveals a decline in UK domestic passenger numbers between 2007 and 2011 due to rising airfares. The analysis highlights the dominance of British Airways and budget airlines in the market, identifying opportunities in underserved regions and the premium segment.
What is the competitive landscape like in the UK domestic airline market?
The market is dominated by budget airlines and British Airways, with the latter holding significant market share, particularly after its acquisition of BMI. Little Red's primary competitor is British Airways. The plan also considers alternative transportation modes (road, rail, bus) and their impact on competitive positioning.
What is Little Red’s positioning in the market?
Little Red is positioned as a premium brand offering a high-quality service with features such as in-flight refreshments, comfortable seating, generous luggage allowances, and a loyalty rewards scheme. This contrasts with budget airlines, aiming to compete with British Airways in the premium segment but with competitive pricing.
What specific goals (SMART objectives) has Little Red set for itself?
Specific goals include leveraging existing Virgin Atlantic resources to enter the new market, facilitating connections to international flights through Heathrow, achieving 1 million passengers within the first year, and securing a 5% market share of the UK domestic market within the same timeframe.
What is the role of Virgin Atlantic's existing infrastructure and brand?
The plan emphasizes leveraging Virgin Atlantic's existing brand recognition, loyalty program ('Flying Club'), corporate booking website ('Flying Co'), and Heathrow connections to facilitate Little Red's market entry and growth. This integration is key to building brand recognition and customer trust for the new sub-brand.
What are the key marketing strategies outlined in the plan?
Key marketing strategies include targeted segmentation and geographic targeting focused on underserved regions more than three hours from London with low air travel penetration. The plan also emphasizes the utilization of demographic data (age and gender) of business travellers to refine its target audience and improve marketing effectiveness.
What are the key words associated with this marketing plan?
Key words include: Virgin Atlantic, Little Red, UK domestic flights, short-haul, business travel, premium segment, British Airways, market share, competitive pricing, market analysis, competitive analysis, marketing strategy, segmentation, targeting, brand loyalty, market penetration, Heathrow.
- Quote paper
- Student James Carter (Author), 2013, Marketing Plan Example: Virgin Atlantic Little Red, Munich, GRIN Verlag, https://www.grin.com/document/213738
