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Marketing Strategy Analysis - Virgin Atlantic Airways


Virgin Atlantic Airways is a leading player in Airline industry. Company operates globally in all continents. It entered into alliances and joint ventures with many international airlines to enhance its growth rate and penetration in Asia Pacific, and North Atlantic region. Company has adopted an assortment of pricing strategies that include value pricing, penetration pricing, and marginal pricing to position its image with respect to competitors.

Marketing Strategy Analysis - Virgin Atlantic Airways


Virgin Atlantic Airways is a subsidiary of Virgin Group and is the second largest British international airline. Currently, Virgin Atlantic Airways is providing airline services for more than 30 international destinations. Virgin Atlantic Airways was established in 1984 by Virgin Group that has a remarkable name in the music industry. Virgin Atlantic Airways adopted a sequential business development strategy to compete with the challenging environment of the airline industry. Virgin Atlantic Airways is a high quality, value for money airline. Virgin Atlantic Airways bases its strategy on cost leadership position to offer very low selling prices compare to traditional airlines.

Virgin Atlantic is a privately owned airline; Virgin Group has 51% ownership in total equity and Singapore Airlines hold 49% ownership in the business. It provides a series of services to provide value to airline travelers for their price. Premium economy class has packed fare economy cabin, whereas economy class include differential economy fares price system with systematic product offering and in-flight entertainment (Data Monitor, 2011). This paper briefly discusses the marketing strategies of the company.

Operational Countries

Virgin Atlantic Airways is providing air travelling services to the commuters in UK, USA, Caribbean region, Africa, Asia, and Australia (VAA, 2011a). All the destinations in these regions have been valued by the Virgin Holidays offering that serves as a leisure marketing wing. Main countries, where company operates include England, USA, China, Singapore, and Australia (VAA, 2011a).

Products/Services Strategy

Virgin Atlantic Airways is the second largest long-distance private airline carrier in the UK and is considered among the top five airline companies of UK. In order to maintain its competitive edge in the industry, Virgin Atlantic Airways has a diversified portfolio airline services. These include:

Passenger flight services

Leisure travel services

Aircraft maintenance services

Cargo handling services

Secondary airline activities (VAA, 2011b)

Virgin Atlantic has gone into 'conglomerate diversification' by introducing additional services that add value to the current operations of the company. This include introduction of cargo handling services, Virgin Holidays tour ...
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