International Marketing - Virgin Blue (A piece of Empire)

Essay by onglt1 August 2006

download word file, 14 pages 2.3

Executive Summary

Current 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 3

Industry Analysis 3

Analysis of Case 5

Alternative Solutions 10

Recommendations 11

Implementation Issues 13

Reference List 14

Log 15

Company background

Virgin 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...