Virgin Credit Card – Where to go from here?

Essay by ashu3400University, Bachelor'sA, August 2009

download word file, 12 pages 0.0

Q1. What types of IMC strategy and which tools should Virgin Money use to keep the business growing quickly?Virgin money entered into credit card market in year 2003 with the clear in mind to shake up the current financial service industry and to become the leading market share holder for providing financial services. As the case study virgin money was able to generated 32million dollars in fiscal year 2005-2006 with holding 6 %of market share in getting credit card customers from around Australian continent and 20% of new credit card issue market. The problem arose when the 4 major Australian banks (commonwealth bank of Australia, Anz, national Australia bank and the Westpac bank) and non-banking sector felt the pressure of competition. Then the virgin money had not only to add the new customer to their market share but also had to keep up with current competition to retain old customers.

In order to remain in business virgin money had to raise their customer service standards higher than their own as well as better than their competitors. More over virgin money can introduce new strategies such as providing benefits to existing credit card for home loan facilities, easy access to superannuation, discounts on virgin airline airfares and free comparison services for the customers. Their main power should have been their big brand name "Virgin" and their well known owner Richard Branson. Their past strategy relating to direct mailing is to send people printed advertisement which in order to be effective must be monitored by some specialist organisation like Digital alchemy. After that the most important part of advertising would have been effectively applied that is sales promotion. This can be done by sponsoring some event where there is a huge gathering of people which are in their target...