Marketing Plan of Virgin Australia

Table of Contents

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

9. Conclusion

10. References

Objectives and Themes

This report aims to develop a strategic marketing plan for Virgin Australia to transition from a low-cost carrier to a broader "new world carrier" that effectively captures the lucrative business travel segment while maintaining its core leisure market.

• Development of a dual-brand strategy for business and leisure segments.
• Optimization of the marketing mix (7Ps) to improve service competitiveness.
• Identification of potential target markets including students and families.
• Strategic implementation of integrated marketing communications (IMC).
• Utilization of data-driven control mechanisms for performance evaluation.

Excerpt from the Book

Summary of Chapters

1. Introduction: Outlines the historical background of Virgin Australia as a low-cost carrier and states the report's purpose to formulate a new marketing strategy.

2. Marketing Objectives: Defines the company's SMART goals, focusing on revenue growth and the strategic shift toward business travellers.

3. Financial Objectives: Details the fiscal targets, including return on sales and projected operating cash flow.

4. Target Markets: Analyzes the existing leisure customer base and identifies potential growth opportunities in business and student segments.

5. Strategy: Proposes market penetration, development, and product diversification strategies to increase competitiveness.

6. Marketing Mix: Evaluates the seven P's (product, price, promotion, place, packaging, positioning, people) required to reach new objectives.

7. Controls: Discusses mechanisms and software tools like ERP and IMC for measuring marketing effectiveness.

8. Implementation: Emphasizes that successful strategy execution requires ongoing communication and a structured approach to tasks.

9. Conclusion: Summarizes the necessity of implementing the proposed plan to overcome competitive pressures in the Australian market.

10. References: Lists the sources and citations used throughout the document.

Keywords

Virgin Australia, Marketing Plan, Low-cost carrier, Business travellers, Market share, SMART objectives, Marketing mix, Customer service, Integrated Marketing Communications, Brand strategy, Pricing strategy, Competitive advantage, Service quality, Airline industry, Market penetration.

Frequently Asked Questions

What is the primary purpose of this report?

The report develops a comprehensive marketing plan for Virgin Australia to transition its brand image and capture a higher share of the business travel market while maintaining its low-cost roots.

What are the core thematic areas discussed in the plan?

The core themes include strategic market expansion, optimization of the service-based marketing mix, HR and recruitment strategies, and the implementation of integrated control systems.

What is the ultimate goal of Virgin Australia by 2013?

The company aims to achieve 10% sales growth and a 25% increase in its business traveller market share.

Which methodology is used to approach the marketing strategy?

The report utilizes the "Seven P" marketing mix framework and SMART objective setting to structure its recommendations.

What does the main part of the report cover?

The main body focuses on evaluating the current market position, proposing penetration and development strategies, and detailing operational improvements in service, pricing, and promotion.

What are the essential keywords associated with this document?

Key terms include Virgin Australia, Marketing Plan, Business Travellers, Marketing Mix, and Competitive Advantage.

How does the report suggest Virgin Australia should handle its pricing?

It recommends implementing dynamic pricing strategies, such as peak/off-peak fares and advance booking discounts, to cater to both leisure and business segments effectively.

Why is the recruitment of personnel highlighted in the strategy?

Because the airline operates in the service industry, the report emphasizes that human resource planning and hiring employees who align with the Virgin culture are critical for delivering superior customer service.

How does the author propose to measure the success of marketing activities?

By employing control mechanisms like CRM tools, ERP systems, and brand valuation techniques to track the return on investment for various marketing initiatives.