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International Marketing Virgin Blue (A Piece Of Empire)

3417 words - 14 pages

Executive SummaryCurrent Situation* Virgin Blue currently operates as one of two major domestic Australian airlines, the other being Qantas.* The company currently holds an approximate market share of 33%, which it has developed in the five years in which it has operated.* Virgin Blue's strategy is simple; it offers an easy-to-understand, low priced carrier, using a low-cost business model ensuring high profit margins.Key Issues* The Virgin brand stands in a situation where it has numerous opportunities ahead of it.* The chance for the company to move into a global market place.* Upon moving into a global market, the organisation must have consistent values, a constant brand image as well as common positioning.Key Recommendations* Increase capacity and capability with regards to the fleet - larger, multi class planes* Attempt to create meaningful customer relationships, perhaps by introducing a loyalty program similar to that of the Qantas Club* With regards to the entire Virgin group, employ a brand image which will emphasise the innovative, risk-taking attitude of Richard Branson when moving the company into a global market.Table of Contents* Company Background 3Industry Analysis 3Analysis of Case 5Alternative Solutions 10Recommendations 11Implementation Issues 13Reference List 14Log 15Company backgroundVirgin Blue, provides lost cost, low fare domestic flights, offering frequent passenger services on routes between all of the Australia's major cities, is one of the subsidiaries of the Virgin Group that was established on 3 August 2000 with two aircraft initially offering seven return flights a day between Brisbane and Sydney. This has since been expanded to cover the major cities in Australia.According to Virgin Blue, the objective of launching the company is to develop a Virgin branded, low cost, low fare carrier operating in the Australian domestic aviation market. In fact, Virgin Blue has been become one of the fastest growing airline companies in the world.The business model adopted was similar to that of successful low cost carriers in Europe and North America, such as Southwest Airlines and Ryanair. Similarly, Virgin blue operates only one type of aircraft, the Boeing 737 series, of which it currently has 49. The airline does not provide in-flight meals and printed tickets in favour of selling food on board and using telephone and internet booking systems to eliminate the costs ( September 2003, Virgin Blue announced its wholly-owned subsidiary, Pacific Blue to offer a similar low-fare service between New Zealand and Australia. The aim of Pacific Blue is to compete with Air New Zealand and Qantas on trans-tasman routes via positioning itself as a low-cost competitor.Industry AnalysisThe commercial aviation market in Australia consists of two principal groups of travelers: leisure and business. Leisure passengers typically place a higher emphasis on low fares. Business passengers typically place a higher...

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