Virgin Australia Essay

Department Profiles Virgin Australia is an incredibly diverse and multidimensional company that genuinely believes that its people are its greatest asset. So that you can make a self-assessment about whether or not your knowledge, skills, abilities and interests are a good match for our company we have provided a snapshot of the various business functions and some of the typical roles that form a part of each team. Sales The Sales division is focused on generating revenues through promotion, sales, and loyalty initiatives; driving our brand and our product in the marketplace to maximise our commercial positioning.

Departments include: * Commercial Strategy * Sales (Corporate and Industry) * Guest Contact Centres * eCommerce Typical roles in the Sales team include: Account Managers, Sales Analysts, Business Development Managers, Commercial Strategists, Sales Operations and Sales Executives. Alliances, Network and Yield Management The Alliances, Network and Yield Management division is focused on planning, monitoring and implementing strategies to maximise revenue. This division enhances Virgin Australia’s market position through our own and partner networks. Departments include: Revenue and Yield Management * Network Management * Alliances * Revenue Planning Typical roles in the Alliance, Network and Yield Management team include: Revenue Management Analysts, Network Planning Analysts, Pricing Analysts, Route Managers and Alliance Specialists. Chief Customer Officer The Chief Customer Officer group is responsible for brand delivery insights and creating and delivering an exceptional service experience to our guests. The group includes Marketing, the Virgin Australia lounges, Brand Strategy and Performance and In-flight and Ground Product.

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Departments include: * Brand Strategy ;amp; Performance * Brand ;amp; Service Excellence * Brand Development Product * Marketing Communications * Premium Service Delivery * Business Planning and Effectiveness Typical roles in the Chief Customer Officer group include Marketing, Brand and Research Specialists, Corporate Sponsorship Advisors, Lounge Guest Services and Project Management Specialists. Velocity Frequent Flyer The Velocity Frequent Flyer group is committed to building and maintaining a global rewards program that is unique in its offerings and benefits to its members.

Departments include: * Commercial * Operations ;amp; Systems * Membership Services * Partners, Travel ;amp; Non Travel With an emphasis on loyalty and exceptional customer service, typical roles within this group include loyalty specialists, campaign data analysts, direct marketing coordinators, operations analysts and partnership assistants. Operations Our Operations group is responsible for ensuring that the work completed within our Commercial and brand ;amp; Customer Service groups comes alive whilst keeping our schedule operating safely and on time.

The Operations group is the largest in the business. Departments include: * Engineering * Virgin Tech * Ground Operations * Flight Operations * Operations Planning * Network Operations * Safety Systems * Cabin Crew Systems and Operations * Sustainability and Climate Change * Catering Typical roles in the Operations team include: Pilots, Pit Crew, Guest Service Agents, Cabin Crew, Engineers, Safety Systems Specialists, Operations and Load Controllers and Network Planning Advisors. Finance Our Finance team is responsible for the financial analysis, reporting and forecasting for the business.

This critical function supports the business and the board in meeting our objectives and the provision of prudent advice on business opportunities. Departments include: * Financial Accounting * Information Services * Financial Planning ;amp; Analysis * Internal Audit * Treasury ;amp; Leasing * Procurement * Group Strategy Typical roles in the finance team include: Accounts Payable, Accounts Receivable, Auditors, Business Analysts, Qualified Accountants, Business Analysts, Project Managers and IT Specialists.

People Our People team is primarily focused with providing the systems, tools and guidance to assist the business in delivering its business model. The people team provide support to ensure we have the right structure for the business, the right people in the right roles doing the right work in an environment where people can work productively to their full potential Departments include: * Leadership Advisory * People Services, including Recruitment, Payroll and HRIS * Workplace Relations Staff ;amp; Duty Travel Typical roles in the People team include HR Specialists and Advisors, Payroll Officers, Recruitment Advisors and Workers Compensation and Case Management Advisors. Corporate Communications Corporate Communications are communications professionals who deliver all elements of Corporate and Financial Communications, Public Relations, Media Relations, General Publicity, Corporate Sponsorship and Promotions and Internal Employee Communication.

As such the team are guardians of Virgin Australia’s public image in news media, initiators of media and stakeholder communications and play a key role in maintaining the company’s unique culture and providing and organisation-wide understanding of the company’s commercial and strategic aims. Departments include: * Corporate Communications * Public & Media Relations * In-flight Media * Community Sponsorships * Public Affairs Typical roles in the Corporate Communications team include Public Affairs Specialists, Media Relations Advisors and Communication Specialists. Government Relations

The Government Relations group support the business to influence and understand government decision making. International air services cannot operate without meeting widespread regulatory approvals, with each country comprising their own specific requirements. Government Relations is responsible for developing relationships with domestic and international governments; influencing treaty negotiations; and researching and developing Virgin Australia’s position on key government policies and other related topics within the market. Departments include: * Government Affairs * Industry Representation

Typical roles in the Government Relations team are Government Relation Specialists. Executive Summary The purpose of the report is to develop a marketing plan for Virgin Australia based on the business analysis report prepared before by creating ideas for how the company can best conduct their marketing activities. Virgin Australia aims to achieve 10% sales growth with 25% increase in the market share of business travellers by 2013. The primary target market of Virgin Australia is the domestic leisure market with business people, young families and students as their potential customers.

Virgin can undertake market penetration strategy by a combination of competitive pricing strategies, advertising, promotion and perhaps more resources dedicated to personal selling. It can also expand its destinations to tap Qantas market share and can introduce new service dedicated to business travellers. To achieve its objective Virgin could improve in-flight services, introduce frequent flyer miles programme and tailor packages for young families, adventurers and students. Peak and off-peak pricing, student discounts, stand-by fares, early booking discounts could also be introduced as part of its pricing strategy.

Advertising activity could include direct mail, TV, press, magazines, outdoor posters etc. A customer connection database can be used to information to send birthday greetings or information about the quality of customer service. Virgin has to extend its operations two fold if it wants to compete with Qantas. High quality first class private lounges with premium class private suite could be introduced for business customers. To position itself in the mind of business customers, it has to develop a two-brand strategy, targeting both the segments of leisure and business customer market.

Attributes which may not be so important for leisure travellers have to given top priority to attract business customers. In order to facilitate an integrated approach for managing marketing resources different softwares could be used organization-wide such as Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Efficient Consumer Response (ECR) systems etc. Integrated marketing communications (IMC) approach can be used to estimate the value of marketing mix executions based on the changes in customer behaviour these executions generate.

The marketing strategy has to be divided into bits and pieces so that it could be handled easily. Communication channels have to be open to discuss new ideas, issues, challenges and i opportunities. Additionally, any achievement has to be rewarded while repetitive failures have to be penalized. ii Table of  Contents Executive Summary  i 1. Introduction  1 1. 1  Company Background  1 1. 2  Purpose  1 2. Marketing Objectives  1 3. Financial Objectives  2 4. Target Markets  2 4. 1  Existing Market  2 4. 2  Potential Market  2 5. Strategy  3 5.   Market Penetration  3 5. 2  Market Development  3 5. 3  Product Development  4 6. Marketing Mix  4 6. 1  Product  4 6. 2  Price  5 6. 3  Promotion  6 6. 4  Place  7 6. 5  Packaging  7 6. 6  Positioning  7 6. 7  People  8 7. Controls  9 8. Implementation  9 9. Conclusion  10 10. References  11 iii 1. Introduction 1. 1 Company Background Virgin Australia, formerly known as Virgin Blue, is Australia’s second largest airline cofounded in the year 2000 by renowned British business magnet Sir Richard Branson and former Virgin Blue CEO Brett Godfrey.

Initially started as a low-cost carrier, the company improved its services to become a “newworld carrier” as described by themselves (Virgin Blue media release, 2011, para. 2). In 2011 the company further stretched the strategy introducing new uniforms, new catering service on board, new wide-body aircraft and business class; together with a new livery and a renaming to Virgin Australia. It is the market leader in the low-cost carrier service market. Currently the airline is considered a four-star airline by research consultancy firm Skytrax (Skytrax, 2012, p. ). 1. 2 Purpose The purpose of the report is to develop a marketing plan for Virgin Australia based on the business analysis report prepared before by creating ideas for how the company can best conduct their marketing activities. 2. Marketing Objectives Setting SMART objectives will allow virgin Australia to better understand where its role fits and what its activities are. SMART objectives focus on outcomes rather than activities and allow to measure success. SMART stands for Specific, Measurable, Achievable, Realistic and Timely.

Virgin Australia aims to achieve total revenue of $1016 million in 2013, which represents a 10% increase from last year (CNN, 2011, p. 1). Up to this period, the main target market of Virgin Australia is the leisure market, which primarily consists of travellers who are not willing to spend much money and are not concerned much about travel time. However, if the company now wants to tap the business travellers, it needs to undertake a slightly different strategy as they are doing now because it has to accommodate their product to live up to expectations of their business customers. 1