Virgin America: Flight Service for the tech

savvy
By: Kotra Subhadra
Rucha
Dept: Management
Studies
Roll: 20211226
Q1) Using the full spectrum of segmentation variables, describe how
Virgin America segments and targets the market for airline service?
A: Virgin America airlines tend work on their core value of providing high
quality travel at quite affordable prices. This airline targets people based
on demographic segmentation like what is the purchasing capacity and
age of target customers, also geographic, psychographic, and behavioural
segmentation since Virgin America is a West Coast airline in the Silicon
Valley that targets to the "creative class" of frequent flyers, who are
young, urban, tech-savvy, and influential individuals using their
smartphones to access social media sites. As mentioned in the case, this
airline opts for consumers who are willing to pay just a little more for an
airline that would take care of them
 They target to tech-savvy professionals who frequently travel from
one place to another for business or personal reasons. Virgin America
provides great comfort and high-quality services at a low cost.
 This airline provides on-board internet, charging plugs, gaming, and
other amenities to attract the target group. Virgin America also offers
friendly service, creative strategies, and comfortable seating in
addition to these services...
Q2) Which market targeting strategy is Virgin America following?
Justify your answer.

choose to focus on a specific

group of young, tech-savvy
people rather than the entire
market.
Virgin America focuses on
equipping its planes with the
most up-to-date electronics
and
software, giving the term
"low-cost" a whole new
meaning. Their main goal is to
build
themselves based on the
principle of "Customer First,"
which means that customer
service is
priority. In this concentrated
marketing strategy, the
company recognizes that
narrowing the
segment and concentrating will
result in more profitability
than attracting the different
sethey
choose to focus on a specific
group of young, tech-savvy
people rather than the entire
market.
Virgin America focuses on
equipping its planes with the
most up-to-date electronics
and
software, giving the term
"low-cost" a whole new
meaning. Their main goal is to
build
themselves based on the
principle of "Customer First,"
which means that customer
service is
priority. In this concentrated
marketing strategy, the
company recognizes that
narrowing the
segment and concentrating will
result in more profitability
than attracting the different
segments
in the market.
7-21 Write a positioning
statement for Virgin America.
Personally, I believe that this
statement should emphasize
high-quality, low-cost travel
with
excellent amenities aimed at
young, tech-savvy persons
who travel regularly on
airlines for
 business purposes. When
compared to other flights, low-
cost airlines provide better
comfort and
high-quality services at a littile
bit higher pricing.
Ans: Virgin America is using a concentrated marketing (or niche
marketing) strategy. Instead of going after a large share of a small
market, they focus on a small share of a larger market. Virgin America
focuses on equipping its planes with the latest hardware and software,
making it a well-known for its low-price airfares.
 Their main target is to establish themselves based on a philosophy,
"Customer First, or Service to the customers is the priority.
 In this strategy (Concentrated marketing) the company understands
that by narrowing the segment and concentrating this specified
segment the profitability will be more, instead of attracting the
different segments in the market.
 Positioning statement for Virgin America - This would focus on
quality travel at low cost, with extremely good amenities whose
target is young and tech-savvy individuals who travel frequently on
airlines for their business needs. At low cost, airlines of will provide
a better comfort and high-quality services at affordable prices when
compared to other airlines. Virgin America offers consumers style,
relaxation and entertainment without emptying their pockets. A
 thorough and accurate creative work plan will allow Virgin America
to produce an effective marketing campaign that will yield a high
ROI. Virgin America aims to give domestic travellers more for their
money by providing a higher level of comfort.
 Seattle-based Alaska bought Virgin last year in an et fort to bust into
the California market in a major way and expand well beyond its
roots in the Pacific Northwest. The $2.6 billion merger resulted in a
combined airline with nearly 1,200 daily tights and 286 aircraft,
making it the United States' fifth largest airline. Alaska and Virgin 1
are among the most loyal in U.S. air travel.
Some of the potential issues could be-
 Virgin Airlines may not provide customers at the cost it previously
provided.
 There could be identity crisis.
 The customer base that choose Virgin America are different to the
customer base that choose Alaska airlines. So, there will not be
success unless both operate differently or rather separately.
 Virgin America brand is not only beneficial to Alaska but critical to
customer retention.
Hence, Alaska should keep Virgin the way it is, otherwise, it might lose
the loyal customer base for the Virgin America airlines.
Q3) Write a positioning statement for Virgin America.
Ans: A positioning statement is a description of your product and
target audience and explains how it fills a market need.
Positioning statement for Virgin America:
Innovator’s perspective:
For innovators, Game-Changers and Risk Takers, through superior
customer service and constant innovation, Virgin America is a luxury
airline that provides immediate access to technology, comfortable
cabin space and an inflight personalized entertainment experience.

Customer’s Perspective:
To customers who need a quick, easy, no trouble travel experience
Virgin America is a top-notch airline that offers high-end service and
customizable experiences.

Q4) What are the potential issues for Virgin America following the
Alaska Airlines acquisition? Will Virgin America continue to appeal to
the same types of customers? Why or why not?
Ans: The potential issue due to which the airline had to agree for
acquisition by the Alaska airline was the cost for potential consumers.
Because the airline industry is very competitive, Virgin America could
not survive with the same cost and quality without affiliating with
other small or big airlines. The company was independent before the
acquisition by Alaska airlines, but this acquisition will cause a change
in the airline structure of Virgin America. The potential customers will
be affected by the acquisition as the name of the airline; website and
mobile app will also be acquired by the Alaska airlines. It is expected
that the Alaska airline will benefit from the latest technology and Wi-
Fi system Virgin America offered; to meet the needs of the target
audience.
There is high competition in the airline business in America. This is not
easy to thrive in the airline business, although virgin America gained
huge success since its foundation in 2007 because of the unique style
of traveling it offered. Still, the company strived hard to keep the cost
low by purchasing other small airlines as it happens in America. But it
could not do so. So, the company was acquired by Alaska Airlines,
which is a small airline like Virgin America and offers award-winning
services to the customers. Because of acquisition of Virgin America by
the Alaska airlines potential customers will be slightly affected like
they have to use the website and mobile apps by the Alaska airline
after the acquisition, but the in-flight high-tech system and
entertainment will be the same as the planes used by both airlines
will be the same.
Despite its huge success, it is difficult to flourish in the airline
business. For instance, eighty percent of America is ruled over by four
leading airlines. To survive in the competitive environment, Virgin
America agreed to be acquired by the Alaska airlines. The potential
issues for Virgin America are that its name no longer recognizes the
airline. The customers can access to Virgin America through a
combined system of reservation, mobile app, website, and so on.
Although both airlines provide quality services, the style and mode of
operation are different. However, the target audience will not be
affected as the high tech entertainment, and Wi-Fi system can be
used even after the acquisition by Alaska airlines.