Marketing Case Study Brand Management Assignment

2013B16 Dwijraj Jodha 2013B17 Gaurav Taparia 2013B18 Harsh Tandon 2013B22 Kartik Pahuja 2013B23 Kumar Kanav 2013B29 Adrian Goveia 2013B30 Gulam Dhallah 2013B33 Naman Gupta 2013B36 Paridhi Khaitan 2013B38 Prahlad Ekambaram History the 48 year old is the chairman of virgin group a London based firm. It is a 3.5 billion dollar international conglomerate. Mr Richard Branson has ventured into an array of businesses such as condoms, wedding gowns, airlines, financial services etc. In 1970 Virgin kicked off as a mail order record business in London and soon after that they began producing and establishing themselves as a leading British recording studio. In the 1980’s Virgin began to expand andcreated Virgin Vision in 1983, Virgin Atlantic Airways and Virgin Cargo in 1984, and Virgin Holidays in 1985. In 1986 the Virgin Group was listed on the London stock exchange. In 1988, Richard Branson, decided to buy back all outstanding shares. In 1992, Richard Branson sold Virgin Music to Thorn EMI which allowed him to invest more money into Virgin Atlantic and other Virgin enterprises. Randolph Field’s approached Richard Branson about operating a transatlantic only airline service to New York, Branson going against the advice of his partners, decided to invest in the Virgin Atlantic project. The company hired two employees to provide airline specific experience to Virgin Atlantic. The goal of Virgin Atlantic was to provide all classes of travellers with the highest quality of travel at the lowest cost. Later on a teaser advertisement entitled “wait for the English virgin”, on June 22 1984 virgin Atlantic launched their flight from London to New York. Further it quickly expanded its operations to Miami (1986), Boston (1987), Orlando (1988), Tokyo (1989), and Los Angles (1990) in 1994, Virgin Atlantic also started flights to Hong Kong and San Francisco. In 2000-2001 it expanded itself more by featuring adding flights to Las Vegas and Delhi. Virgin Atlantic offers three core products, Upper Class, Premium Economy, and Economy. The Virgin Atlantic fleet consists of more than 30 ’s and Airbuses .Start Design created a liver, Featuring the , prominently on the aircraft wing, based on the three colours- red, purple and silver metallic while the aircraft tailfins sport the Virgin logo. All Virgin Atlantic aircraft are decorated with a Vargas painting of a red-headed, scantily dressed woman holding a scarf. In December 1999, Virgin Atlantic announced a worldwide partnership With Singapore Airlines.As per the agreement, Singapore Airlines acquired a minority 49% stake in Virgin Atlantic for a cost of 600.25 million British pounds. Also Included in the deal was the provision that Singapore Airlines would put in 49 million Billion pounds of Capital, while Virgin Atlantic invests 51 million Billion pounds in Virgin Atlantic to bring the equity investment value of Virgin Atlantic to 1.225 billion pounds.Singapore Airlines controls 93 aircraft reaching a total of 97 worldwide destinations. STRATEGIC PLANNING

MISSION

To grow a profitable airline, that people love to fly and where people love to work. SWOT ANALYSIS

STRENGTHS  Virgin Brand recognized by 98% of British Public.  Clients expect good customer service in each separate class Business/Economy.  Virgin Atlantic introduced innovative technology: including in flight music, ice cream, games, and movies.  New in flight innovation is offered to gold club holders or J-class with lounges offering quality food and comfort.  Quality trained employees recruited from other airlines.  Virgin Atlantic is spawned from as a private company allowing for other Virgin brands and more control.  Richard Branson’s innovative entrepreneurial management.  Competitive pricing for business class offers more services.  Partnership with Singapore airlines because they are the minority shareholder at 49%. The reason why this partnership is beneficial is because their routes are non-overlapping and the partnership allows the transfer of core competencies.  Load factor is better than competition; therefore, returns are higher and value is greater.  Positive publicity, in regards to winning every quality award known to man.

Weaknesses  Flight delays: need to improve flight efficiency.  The travel routes are limited.  Hot Air magazine separate from traditional airline advertising magazines including articles and marketing advertising.  Cut routes to Chicago, Toronto, and Cape in relation to the September 11 tragedy.  Late getting on the Internet “Missed the Boat” for web site, web page, and ecommerce.  Richard Branson is a one man manager being the owner and director of multiple companies.  Costs associated in the overhead of keeping two five star chefs, lounge, and limoservice.  Virgin’s reliance on Trans Atlantic traffic makes them more vulnerable to the drop in demand for travel to and from the U.S.

Opportunities  Strategic Marketing above the rest utilizing by being innovative, fun, maintaining values, caring, and produce quality.  Technology adds improvements (Galileo) an advanced inventory system.  In flight Internet connection.  Web site needs to be improved possible weakness for e-commerce and regular web site navigation.  Generate additional routes.  Virgin Galactic, we are flying into outer space.  Warehouse facility –Heathrow, London.  Recession may be an unexpected opportunity for investment.  On-line strategy in targeting branding and ongoing ad campaigns, through on-line media planning and buying account

Threats  Recession, September 11th will and has affected the entire airline industry, order cancellations, risk aversion for flying customers.  Brand Dilution by a rapid expanding brand image may be too global and not focused towards the important products.  Competition for routes British and United.  Fuel prices are fluctuating, which accounts for 15% of total airline expense.

OBJECTIVES

To maintain a safe customer environment through the necessary security procedures. Also to concentrate on core competencies by consolidating routes, directly related to downsizing workforce, to remain profitable while targeting business class passengers.

STRATEGIES In order to remain profitable Virgin Atlantic has focused on its core Competencies and they are: Sustaining great quality service Maintaining relationships with their Upper Class customers

Situational Analysis:

The situational analysis involves analyzing and monitoring the past trends, current situation and predicting the future situation. This involves the analysis of the cooperative environment, competitive environment, economic environment, social environment, political environment, and the legal environment. Air travel is living through perhaps the greatest upheaval in its history. Liberalization, privatization, competition, code sharing, alliances, e-commerce and massive financial pressures are forcing a radical reorganizing within the industry. Air travel is one of the world’s largest industries, generating over $300 billion in revenues. The overall economic impact is far in excess of its turnover, since it facilitates tourism, world trade, international investments and economic growth. Moreover, the airline industry is central to the globalization that is taking place in many additional industries. Developments in the airline industry have been traced back to 1991, when the combination of the Gulf War and a United States recession led to a 4% decrease in international passengers. Following the 1991 initial growth came from business travel as companies became increasingly international in their investments, their supply and production changes and their customers. Recently, the increasing use of the Internet is further promoting the globalization of trade. Consumers have engaged in increased levels of leisure travel targeting worldwide destinations due to increases in disposable incomes. Governments in developing countries realized the benefits of tourism to their national economies and facilitated the development of resorts and infrastructure to encourage visitors from all over the world. As the economies of developing countries have grown, their own citizens have already become the new international tourists of the future. A further stimulus to air travel has been industry privatization and deregulation. In the early 1980s, most airlines outside of the US were state owned. Many had poor levels of efficiency, and they required state aid in order to support some of their routes. Now most major airlines have evolved towards, at least, partial private ownership. Furthermore, the airline industry is gradually shaking off its historical pattern of tight regulation on who can fly where and when. Air travel rights have typically been negotiated between countries on a bilateral basis. Although air travel is an international business, many airlines still have a national focus, flying mainly to and from their home country. However, some markets are moving towards a deregulated ‘Open Skies’ policy allowing freedom of entry and exit on routes.

The US domestic market and the intra European market are examples of this and the US has signed ‘Open Skies’ arrangements with numerous countries around the world. This deregulation has given many carriers freedoms to enter new markets, though the experience of US domestic deregulation suggests that this initial period of expansion is likely to be followed by industry consolidation. The resulting competitive pressures have contributed to a declining trend in airline yields, which have provided an added stimulus to air travel growth. After adjusting for inflation, airline revenues per passenger kilometer are about half the level of 30 years ago. This yield decline has been matched by falling costs, assisted by developments in aircraft technology, increasing efficiency and – between the early 1980s and the late 1990s - falling oil prices. The trend increasing stage lengths has also supported the decline in yield per passenger- kilometer in revenue terms (after adjusting for inflation); airline industry growth has been closer to 3% a year, only just ahead of the average world GDP growth rate. A number of well-established markets are at or near market maturity. This is particularly the case for markets in developed countries that have already been deregulated such as the US domestic market. Furthermore, capacity constraints in terms of congested airports and systems are limiting the ability of some of the most popular air travel destinations to expand. With regard to transatlantic services, Virgin Atlantic has attacked the /American Airlines merger as anti-competitive. BA/AA has applied for antitrust immunity, which Virgin believes, will 1) destroy competition, 2) raise prices, and 3) reduce service. Virgin has sought to make customers aware of their position through advertisements stating, “No Way BA/AA.”

Following the September 11, disaster Virgin Atlantic Airways operated a full schedule, in order to clear the accumulation of bereaved and stranded passengers. As of October 2001, the airline grounded five of its 747-200’s and reduced its activities by around 20% as a result of the long-term effects of September’s tragic events. “It is clear to everyone that there will be significantly less traffic across the North Atlantic for some time,” said privately held Virgin groups chairman, Richard Branson. Virgin reduced its capacity across the North Atlantic by cutting its routes to Toronto and Chicago. Virgin Atlantic has also trimmed the number of flights leaving San Francisco from two to one per day. The company will take all measures to minimize compulsory redundancies by asking staff to come forward to take unpaid leave and redundancy. Virgin Atlantic is attempting to keep all members of the Virgin family employed in the Virgin group. For example, staff will be offered the chance to be interviewed for employment with Virgin Active, Virgin’s leisure and health club business. Virgin Atlantic is currently engaged in a £30 million expansion program in the UK, which will create up to 700 new jobs over the next 12 months.

Virgin Regional Director for the West Coast, Eric Starks, believes that there will be a resurgence in the airline industry next year and Virgin will rehire ex- employees before other applicants. Virgin chairman, Richard Branson also anticipates an industry revival, saying, “By taking this action now, we will put ourselves in a position from which to expand again in the future.”

Virgin Atlantic has incorporated a strict environmental policy into its business. Virgin Atlantic has introduced a number of recycling initiatives both on board aircraft and throughout the company’s offices. These measures are environmentally conscious and cost effective, enabling the airline to assist a number of charities and institutions. Recycling is carried out in compliance with Ministry of Agriculture directives to ensure the highest health and safety procedures are adhered to. The current environmental policy identifies Virgins’ position with regards to recycling and re-using paper, printer toner cartridges, plastic glasses, vending cups, aluminium cans, duty free bags, duty free bags, amenity kits, menus, linens, and brochures.

Portfolio Analysis: Portfolio analysis is the strategic analysis of a particular strategic business unit (SBU) to determine its profitability and future cash contributions. It evaluates the SBU based on two parameters, the relative market share and the market growth rate. These two dimensions reveal likely profitability of the business portfolio in terms of cash needed to support that unit and cash generated by it. The general purpose of the analysis is to help understand, which brands the firm should invest in and which ones should be divested. This tool is also known as the Boston Consulting Group Matrix (BCG Matrix in short). The figure below is shows the interdependency of the relative market share and market growth in the BCG matrix. This dependency divides the matrix into four quadrants as shown in the matrix below. Dogs: Dogs hold low market share compared to competitors and operate in a slowly growing market. In general and in most cases Dogs are the weak links of an organization but it’s always important to fully analyse the sector before making any strategic decisions. Strategic choices: Retrenchment, divestiture, liquidation Cash cows: Cash cows are the most profitable brands and should be “milked” to provide as much cash as possible. The cash gained from “cows” should be invested into stars to support their further growth. These are assets that need to be taken care of and the profitability must be monitored continuously to make sure there is maximum utilization of the profits. Again, this is not always the truth. Cash cows are usually large corporations or SBUs that are capable of innovating new products or processes, which may become new stars. If there would be no support for cash cows, they would not be capable of such innovations. Strategic choices: Product development, diversification, divestiture, retrenchment Stars: Stars operate in high growth industries and maintain high market share. Stars are both cash generators and cash users. They are the main units in which the company should invest its money, because stars are expected to become cash cows and generate positive cash flows. Yet, not all stars become cash flows. Strategic choices: Vertical integration, horizontal integration, market penetration, market development, product development Question marks: Question marks are the brands that require much closer consideration. They hold low market share in fast growing markets consuming large amount of cash and incurring losses. It has potential to gain market share and become a star, which would later become cash cow. Question marks do not always succeed and even after large amount of investments they struggle to gain market share and eventually become dogs. Therefore, they require very close consideration to decide if they are worth investing in or not. Strategic choices: Market penetration, market development, product development, divestiture

Virgin Atlantic Portfolio Analysis: When it comes to Virgin Atlantic, there is no Star. The cash cow is the high end section. As explained this area has high share of a low growth market and generate higher cash revenues. This high end product focuses on well off customers and business passengers. The costliest ticket available, costs around $9,000, and there are about 50 seats available in this class, therefore the upper class generates much higher revenues compared to premium economy and economy. Dogs are the SBUs that have low market share in low growth market. Virgin Atlantic’s can be considered as a Dog. Question marks are SBUs that have high potential but will require great resources to build market share. The Premium Economy is a question mark as it has potential to be a cash generator. Premium economy targets cheaper flying business class passengers and high-end couples. There are 38 seats in this class and tickets generally sell for around $3,000.Economy class focuses on families and groups flying together. Tickets for economy class are priced around $500 and there are 271 seats.

COMPETETIVE ANALYSIS Segmentation By analyzing the general and industry environment of Virgin Travel, one can identify Virgin Travel’s opportunities and threats. The conditions in our environment that Virgin Travel needs to take advantage of to become more profitable include the business travel sector, the international environment, and retaining current customers. The conditions in our environment that endanger the integrity and profitability of the company’s business are our competitors and fluctuations in the prices of the economic environment. The general environment factors to be considered are demographic, sociocultural, technological, economic, global, and legal/political. Virgin Atlantic caters to different demographics. Most travellers are business travellers and leisure travellers. They allow children above 5 years of age to travel and those who are below 5 years of age need to have a guardian along with them while they are travelling ( guardians age should be 16 and above) . They have identified a set of rules for the children who are not accompanied by their parents. They also allow trained pets who accompany disabled people. Demographically, the travel industry contains many population sizes, ages, and ethnic mixes. Virgin Travel deals highly with people that travel for business. Consumer consumption for travel includes such facets as hot air balloon travel, space travel, flight travel, car travel, and boat travel. Virgin has targeted that most of its consumers want a travel industry that can provide technology, low fares, and good customer service. “Virgin airlines offer unrivalled value with low fares and innovative features like touch-screen seatback entertainment, power outlets, mood-lighting and custom- designed leather seating with a deeper, more comfortable pitch.” Targeting The airline decided early on that its target market would be business men and leisure travellers. By catering solely to this target, virgin created a niche market for itself giving it a slight advantage over its competitors, who at the time, dealt with all types of customers. This is identifying market segments; it allowed the airline to focus completely on their target audience. It is easier to please a small select group of customers, than a large diverse on. Thus the airline has two classes, a business class and economy class. The business class passengers are primarily aged 35 to 45 and earn about £ 50 and are usually on a business trip. Economy class is split evenly between business trip and leisure trips, average age is 41. (Virgin Atlantic Student information pack) Hence Virgin Atlantic does not only target business customers but also looks out for leisure travellers offering the customer experience to be more flexible with respect to their requirements. The main important function that Virgin Atlantic did is that it realised the market opportunity which was at hand i.e. the opportunity to gain a considerable market share through their effective marketing strategies that revealed all the fun experiences that they had for the customers to explore. “Quality, Fun, Innovative, Honest and Caring” are some of the features that the airline is known for. As a result, the airline has enjoyed a constant increase in its customer base.

In 1987, the airline had a 1,123,371 passenger count, by 2003; this had considerably increased to a 38,571267 passenger count

Positioning

Having “Happy customers” ultimately, is their desired objective and thus they have inculcated this desired objective in every activity of theirs to achieve this goal. As stated earlier, Virgin Atlantic is a very popular airline. Due to its successful efforts at satisfying its target market, these customers view the airline in high regard. They will be quoted as saying that it is dependable, comfortable and the best airline around. Such statements lift the airline higher over its competitors. Virgin America truly has a great product having taken its lead and brand essence from the mother ship at Virgin Atlantic. Great product, consistently delivered by attentive staff, backed up by smart edgy marketing will win every time; they have extended their unique brand personality to the airline business. Their product offering also reflects this - from the superior entertainment system to the uniforms. Virgin is a modern brand that understands the needs of today's consumer. Virgin Airline is a brand that is known for attracting their customers by being innovative and having fun experiences for their customers. There are spacious arrangements in the flight for the customers comfort, a lot of inbuilt entertainment systems and most importantly is what they believe in; “high customer service” This is what sets them apart beside the fact that they truly care (which is so rare these days), is that they seem to truly live up to their slogan; “this is How to Fly”. This is known as positioning.

Marketing Tactics Differentiation A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior. Virgin Atlantic has differentiated their product by taking the customers’ expectations one step further through communication with the customer. A prime example can be seen in providing in flight ice cream, something other airlines do not offer.

Marketing Mix Usually referring to E. Jerome McCarthy's 4 P classification for developing an effective marketing strategy, which encompasses: product, price, placement (distribution) and promotion. Virgin Atlantic has sought to offer a fun and innovative product with high quality service and convenient locations for the customer. Virgin Atlantic offers flights worldwide in three distinct classes: upper class, premium economy, and economy highlighted below. Upper class A ticket on Heathrow or Gatwick express, provides limo services from Paddington Station and Victoria Station to the customers’ final destination, and a two-day car rental for each sector flown. Virgin Atlantic offers the exclusive use of clubhouses (for upper class passengers), including Virgin touch beauty salon-massages, facials, and barber services at Heathrow and Gatwick. Also included are business facilities, restaurant- style dinning and a full-service bar.

Latest offerings  Virgin Atlantic passengers will be the first air travellers to experience the benefits of pioneering Google Glass technology as they arrive at London from 11 February 2014 onwards  private security channel for Upper Class passengers  "Limobike" motorcycles; Heathrow Express train from London Paddington;

Premium Economy  Dedicated check-in desk  Priority baggage handling  Flexible ticket - no penalty for last minute changes  Separate cabin  Comfortable, wider seats with up to 6 inches of extra leg room  Seatback video screen  Pre-flight champagne  Fruit throughout flight and ice cream during movies  Free amenity kit  Fast track-priority service through immigration Economy  Seatback video screen with up to 43 channels of movies, music, and video games  Choice of three entrees, including a vegetarian option  Complimentary beverages, including cocktails  Free amenity kit  Children’s services including K-iD backpacks, TV channels and special meals  Ice cream during movies Promotion is the publicized announcement designed to attract customers. Virgin Atlantic is continuously promoting through various media. It employs all elements of Integrated Media Campaign for this purpose.

Selling These are efforts to induce the consumer to buy what the company has to offer set in line with the marketing strategy. Virgin Atlantic targets specific customers by communicating the overall comfort and quality of the airline by providing identifiable customer service. Virgin Atlantic sells tickets primarily through the Internet, travel agents, and direct communication with customers.

Marketing Value Brand Values The Virgin brand has been built on Branson’s shrewd ability to exploit weaknesses in competitors’ customer service skills, as well as a flair for self-promotion. The Virgin brand revolves around delivering value pricing, high quality, fun, great customer service, and innovation, and being authentic, people- oriented, hip, and associated with Virgin founder Sir Richard Branson and his personal reputation. Virgin group is known for the following values:  Fun = enjoyment and humor, not offensive and incompetent  Value for Money = Simple, not cheap  Quality = Attention to detail, not expensive for the sake of it  Innovation = challenging convention, not different for the sake of being different  Competitive Challenge = responding to consumer needs, not being irrelevant  Brilliant Customer Service = empowered, not unprofessional people

Atlantic’s web page describes their brand image encompassing the following words: caring, value, fun, innovative, quality, and honesty. Virgin Atlantic was originally conceived by Richard Branson to offer the best possible service while delivering the best possible value at all times. Internationally recognized as a fun-loving and highly innovative brand and one that is admired for its Friendliness, intelligence, and integrity. Service (The Branson Factor) This is the company’s principle for increasing the quality of service delivered to its customers. Virgin Atlantic strives to offers service to satisfy total customer needs. Mr. Branson’s entrepreneurial attitude towards innovative publicity is seen in his fearless reputation for antics such as ballooning across the Atlantic Ocean Process Process is the company’s principle for involving every employee in the customer satisfaction process, both directly and indirectly. Virgin Atlantic’s process relates to both internal communications through employees and external communication through strategic alliances to further capabilities. The Virgin Atlantic management structure allows all head officers to report directly to Richard Branson. Sir Richard Branson is himself active in communicating with employees.

A brand is not just a type of product manufactured by a particular company under a particular name but it includes a complex bundle of images and experiences in the customers’ mind. It represents a set of promises made by a company about a particular product. Several companies have used various mediums and means to market their brands and themselves but Virgin has created a niche of itslef in this regard. It has been able to explot its competitors weaknesses and juxtaposed them against their strengths. It is one the most recognized brands worldwide according to Interbrand. Virgin Airways hs always been unconventional when it comes to marketing itself. Its founder, Richard Branson has been known for being adventurous, innovative and “fun”. He has made the brand Virgin popular via various audacious activities which are elicited below.

Richard Branson on one of his many adventures.

Richard Branson dressed up as an airhostess as part of a bet with Air Asia boss Tony Fernandes. The website of Virgin Atlantis (Virgin airways) clearly looks the way the brand is positioned, standing for care, value, fun, innovation and quality. Compared to websites of competitors like British Airways, US Airways and , the website of Virgin Atlantic is a lot more vibrant and colourful.

Service (The Branson Factor) The company’s fundamental principle emphasizes on increasing the quality of service delivered to its customers. Mr. Branson’s entrepreneurial attitude towards innovative publicity is seen in hisfearless reputation for antics such as ballooning across the Atlantic Ocean. Virgin Atlantic’s Managing Director, Steve Ridgeway is an equally passionate advocate of brand values and shares Richard’s irrepressible spirit of adventure, having been his co-pilot in the record-breaking speedboat crossing of the Atlantic in 1986. Virgin Atlantic’s management attitude has played an important part in the widespread global success of the Virgin brand and promoting the values with which consumers can identify. In the following quote, Sir Richard Branson clearly represents the ingenuity within the Virgin Empire.

Processes: Process is the company’s principle for involving every employee in the customer satisfaction process, both directly and indirectly. Virgin Atlantic’s process relates to both internal communications through employees and external communication through strategic alliances to further capabilities. The Virgin Atlantic management structure allows all head officers to report directly to Richard Branson. Sir Richard Branson is himself active in communicating with employees Integrated Marketing Communications

Integrated marketing communication is defined by the American Association of Advertising Agencies (AAAA) as the a concept of marketing communication planning that recognizes the added value of a comprehensive plan, that evaluates the strategic roles of a variety of communication disciplines - for example general advertising, direct response, sales promotion, and public relations - and combines these disciplines to provide clarity, consistency, and maximum communication impart. Integrated marketing communications represents all the elements of an organisation’s marketing mix that favourably influence an organisation’s publics. Organisations communicate with their promotional tools but also through their product, pricing, distribution and staffing strategies Virgin Atlantic is the most successful independent airline in the world, its marketing efforts stress the service element as a major differentiation. The airline is very close to its market, it revolutionised the common tripartite configuration of classes offering first class service at the price of business class. Sub brands are the well known Upper Class, Premium (formerly Mid Class) and Economy. It rewards loyalty through its Freeway loyalty scheme and communicate to the market through its leader improvisations, advertising campaigns focusing mainly on products and direct marketing. Its Customer Relations Department (formerly Steering Group) is key to maintain full customer satisfaction.

Because the market is the key to success it is essential airlines keep in contact with it, continually monitoring and collecting feedback. Virgin Atlantic do this through several channels:

 sales teams, sales reps, reservation agents and in-flight supervisors;  quarterly analysis of customers’ expectations through its On Board Surveys which cover such areas as check-in, lounge facilities, cabin seating, entertainment, catering and cabin crew;  industry surveys (syndicated) which give data on the company versus the competition;  staff in-flight survey questionnaire (150 questions) to check standards and act as an ideas generator for improvements;  Richard Branson actively participate to research talking to passengers on board and inviting members of Freeway scheme to unique venues for a day.  occasional tailored research for corporate customers;  focus groups on specific issues to capture passengers who are not members of Freeway scheme (four at a time with 6-8 members in each group);  on board “Comment Book” designed to ensure every Upper Class passenger has the chance to comment quickly and easily at any time when it is passed around the cabin by a flight attendant;  mystery customer research often used to test the service provided;  customer relations department to receive direct complaints or suggestions.

All this feed-back permits the company to be fully aware of the degree to which it delivers to customers expectations and it also permits a quick reaction to fill in perceived gaps or satisfy new needs. When supported by a proper use of information technology it helps the airline to stay closer to its customers speeding up operations and supporting several aspects of the delivery: customer service, distribution activities, revenue maximisation, communications, overall planning and so on Virgin Atlantic looked to strengthen its recovery from recession with the UK launch of a £10 million global marketing campaign. The new campaign has been designed to build the airline’s brand presence across the globe and to stimulate increased demand for travel both to and from the UK.

"Your airline’s either got it or it hasn't" has been created by RKCR/Y&R, and follows the award winning success of the airline's "Still Red Hot" 25th birthday campaign last year which was listed as one of the top ten marketing moments of 2009 by Campaign Magazine.

The campaign will feature a series of print, outdoor and online advertisements promoting the airline's Upper Class product. Through iconic photography, the creative brings to life the glamour, style and comfort that comes with flying Virgin Atlantic Upper Class. As the headline of the campaign suggests, Virgin Atlantic is the definition of "Je ne sais quoi" - setting it apart from its competitors.

Paul Dickinson, Director of Sales and Marketing for Virgin Atlantic: "People always tell us that there is something special and different about travelling with Virgin Atlantic and this campaign was designed to illustrate that certain magic ingredient that sets us apart from the competition." Virgin Atlantic uses a wide range of marketing techniques. Advertising activity includes direct mail, TV, press, magazines, outdoor posters and taxi sides, all featuring their distinctive logo, the flying lady. Advertising is used to encourage people to fly Virgin Atlantic, to raise awareness of new product developments and to inform customers about new routes. For example, NBC primetime series “Friends” featured Richard Branson with the characters flying Virgin Atlantic to London.57 In 2001, Virgin Atlantic spent 8 to 10 million dollars on a campaign linking Virgin with the movie “Austin Powers: The SpyWho Shagged Me.” They painted an enlarged Austin Powers on the tail, and Virgin was rebranded “Virgin Shaglantic”, featuring phrases such as: “There is only one virgin on this billboard, baby!”58. Virgin Atlantic operates a frequent flyer program, the Flying Club, to encourage loyalty in its customers. In addition to offering miles that can be exchanged for free flights and other rewards, Flying Club members are offered other support services and clubhouse access. Virgin Atlantic has pioneered Internet marketing in the airline industry.