This website uses cookies to ensure you have the best experience. Learn more

Virgin Blue Essay

1806 words - 8 pages

Appendix C – Sample Research Case Study

Virgin Blue
‘You can’t make a business case that you should be who you are not’

Shayne Connell Student Number: 9809317

Case Study GSBS6010 – Foundations of Marketing Theory Due: 11 March 2010

Lecturers: Penny Crittall and Joel Goodsir

Page 113

Table of Contents

1. Executive Summary………………………………………………………3 2. Situation Analysis a. Identification of case issues………………………………....…. 4 b. Analysis of case issues using marketing theory…...........……5 3. Evaluation of alternative courses of action……………………………. 7 4. Recommendations………………………………………………………..7 5. References………………………………………………………………...9

Page 114

1. Executive Summary This ...view middle of the document...

194). Sixteen years later, in August 2000, Virgin Blue was launched as the first low cost airline in Australia. The airline applied the fun and adventure of the Virgin brand, synonymous across the globe with being ‘the consumer champion’; to an Australian airline industry which was perceived to have taken its customers for granted (Branson, 2009). Over the past decade the company has shifted marketing strategy from low cost carrier to ‘best cost’ carrier in response to the introduction of Jet Star in 2004. The marketing challenge facing Virgin Blue in 2010 is to capture more of the stable business market to ensure profitability within a macro environment of increasing oil prices, new entrants, global financial stress and fluctuating leisure market demand (Kotler, Brown, Burton, Deans and Armstrong, 2010). Virgin Blue needs to develop and maintain a “strategic fit between the organisation’s goals and capabilities and the changing marketing opportunities” (Kotler et al., 2010, p.65). The ‘New World Carrier’ response of low cost, user-pays frills is Virgin Blue’s attempt to address these opportunities. The key issues are interrelated; the challenge of repositioning with another strategic model to offer value to the business market while maintaining relevance to the ‘cash cow’ leisure market (Kotler et al., 2010). Virgin airlines were at the forefront of strategic thinking in responding to the needs and wants of the leisure travel market. By removing unnecessary extras from their product Virgin was able to reduce costs and bring airline travel to the people. However, understanding the needs and wants of business and government travellers in Australia is new territory for the market challenger. Formulating a marketing mix which is relevant and engaging for these travellers while adhering to the core values is a particular challenge. For example, the benefit to Premium Economy customers of ‘more space’ promoted by the ‘New World Carrier’ immediately implies ‘less space’ for regular customers, who valued Virgin Blue’s original proposition to ‘keep the air fair’.

Page 116

2b. Analysis of case issues using marketing theory Virgin Blue is not the first airline to encounter this strategic marketing challenge. Western Pacific Airlines went bankrupt in 1998 after the low cost carrier’s attempt to reposition itself for the business market (Olson and Ferguson, 1998). Laker Airways also went bankrupt when it blurred its image by “adding frills, new services and new routes to its low cost service” (Porter, 1985, p.17). However, Irish carrier Ryanair decided to pursue a single-minded corporate strategy, focusing exclusively on providing low-cost air transport for consumers and currently leads this market in Europe (Walker, Goutnas, Mavondo and Mullins, 2009). Virgin Blue is now communicating its third strategic direction to the market in ten years. The challenge can be understood through analysis of strategic market planning, portfolio planning, growth...

Other Papers Like Virgin Blue

Religion in Hispanic Countries Essay

1064 words - 5 pages blue eyes. The main symbols of Hispanic religion are: * The cross * Images of saints * The rosary * Image of the Virgin Mary. Saints and Patrons Most communities celebrate their countries patron saint by dedicating a day for this purpose with festivals, ‘Las Fiestas Patronales’ and religious services. Most Hispanic countries combine the rituals and beliefs of Roman Catholicism with African or Native American rituals and

Five Forces Model of Airline Industry

1235 words - 5 pages allowed Jetstar and Tiger Airways enter the market and reduce the market share for Virgin Blue and with the added competition, together with pricing freedom, means that there is a major constraint on profitability for the airline industry. Moreover if borrowing is cheap the likelihood of more airlines entering the industry is higher. Bargaining power of Buyers is high The bargaining power of buyers is another force that can affect the

Business Ethics Case Studies

4143 words - 17 pages ARTICLE 1 The article ‘Lawyer says Virgin Blue displayed ‘unhealthy work culture’ in city office’ by Anthony Marx was published in The Courier-Mail on 14 March 2011. The article details how Virgin Blue allegedly discriminated against two female employees by forcing them to take redundancies after confirming they were pregnant or returning from maternity leave (Marx 2011, p. 1). Subsequently, both employees have initiated legal action against

On Pale Green Walls

816 words - 4 pages On pale green walls The short story, ”On pale green walls” is written by Clare Wigfall and published in 1997. The story is about a mute girl named Violet, who lives in a religious family. One day she notices Virgin Mary, as a statue in the church, a beautiful woman in a blue dress and white shawl over her head, and she strongly catches Violet’s attention. Violet begins noticing her in many different places and immediately feels very

Pink for Girls, Blue for Boys?

1455 words - 6 pages , there seems to have been an effort to establish characteristic colors for girls and boys. But it took decades to develop a consensus on what those colors were. Slowly emerged two gender-specific color: pink and blue. Although at first pink was identified with boys because it’s a close relative of red which was considered a fierce and manly color. On the other hand blue seemed to be more proper for girls because of its connection to the Virgin

Art History

1168 words - 5 pages Art History Paper MENIL COLLECTION & MFA-H This paper compares and contrast Virgin and Child. Northern France, 2nd quarter of the 14th century A.D., wood, (1) and Ennatum, Prince of Lagash, 2450 B.C., Sumeria (Sourthern Iraq) , composite materials (alabaster, lapis lazuli, mother of pearl). (2) Both works are from the Menil Collection in Houston. The second set of works this paper compares and contrasts is the Head of Poseidon, 227 - 221

On Pale Green Walls

862 words - 4 pages and aware of the environment. She has a really lively imagination and when she walks in to the church her eyes catches a painting of a woman dressed in blue. The painting is surrounded by lots of candles, and is placed “higher than the rest of us”(line 28). At this time, she’s not aware that she’s looking at Virgin Mary – the holy mother of Jesus. She loves her. The relation and connection she feels talks to her in a way she does not know. This

Ordeal of My Lemon

718 words - 3 pages Ordeal of my Lemon I was a vehicle virgin, ready to buy my very first car. When I heard the encouraging words of Yusuf, a mechanic, I felt that thrill of excitement that all first-car owners experience. His words, spoken in a broken heavy Russian-English were “Found mashina, come look before gone.” That was all the encouragement I needed and I thought since he was a mechanic that I could not go wrong. After making emergency baby-sitting

Business Strategy

5595 words - 23 pages type of growth that Richard Branson has used is unrelated diversification. Richard started off in media and then moved to unrelated markets, he started off with his first chain of record stores started in the 1972 known as virgin mega stores, as his brand began to grow rapidly in the 1980’s he started up virgin atlantic, 1999 virgin mobile, and virgin blue in 2000. Through research the Virgin company takes advantage of struggling markets, by

Final Exam

1209 words - 5 pages Ingredients: 95% lean ground beef Sweet potato Shredded Parmesan Cheese Extra Virgin Olive Oil Broccoli Containers: 1 red 1 yellow 1 green 1 blue 1 tsp. Directions: Form a patty of ground beef and season with steak seasoning. Grill to desired temperature. Top with ½ of the parmesan cheese. Serve with a side of mustard. Preheat oven to 350 degrees. Slice sweet potato and place slices on a pan. Drizzle with olive oil and

Chartres Cathedral

3563 words - 15 pages the cloak of the Virgin Mary. The local citizens assisted the building of the cathedral by providing the labour, giving food to the workers and donating money to pay for its construction. The architecture of the cathedral dominated the town in the way that modern skyscrapers are the centre civic buildings today. Many of the decorations in the cathedral such as the thousands of sculptures and beautiful stained glass windows were donated by guilds

Related Essays

Virgin Mobile Market Entry Strategy Essay

2040 words - 9 pages Overall efficiency of the channel. For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart. COMPETITION Virgin Mobile has entered into a very competitive industry where Airtel, Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff competition from Reliance CDMA phones. Virgin Mobile have taken a ‘hatke’ route and launched the brand in the youth segment. The tie up with Tata Teleservices enables it

Marketing Essay

3071 words - 13 pages and the market.(Rue and Holland, 1989) Virgin blue faces intense competition in the trans-Tasman route by Quantas, Jetstar and Emirates. The CEO of Virgin blue Bret Godfrey in order to cope up with the competition created an alliance with air New Zealand on flights between Australia and New Zealand. He stated to achieve more competition by cutting rather than increasing the number of competitors would have to be a world first. Pressure groups

Finance Futures Essay

680 words - 3 pages Qantas. In a tightening domestic environment, Virgin has grabbed a bigger slice of the lucrative corporate and government market while still catering to budget flyers. But things could be about to get tougher for Virgin, with Singapore's budget carrier Tiger Airways likely to become a new competitor. More from our Business Editor Peter Ryan. PETER RYAN: When Virgin Blue filled the void left by the collapse of Ansett, the emphasis was

Chartres Stained Glass Essay

1606 words - 7 pages blue and yellow windows and red and yellow windows. The blue and yellow windows have a blue background with images of the yellow Fleur-de-lis, or “the lily flower,” which is the great symbol of France. The Virgin Mary is always seen holding a fleur-de-lis in her Annunciation scene. The red and yellow windows have a red background and show multiple yellow castles. The yellow castle on the red background is the symbol of Castille. Queen Blanche of