Solution

Virgin America: Flight Service for the Tech Savvy Academic Essay

Question 1: Using the full spectrum of segmentation variables, describe how Virgin America segments and targets the market for airline service.

Virgin America uses market segmentation to enhance its service delivery, and the five variables used are demographic, psychographic, geographic, behavioral, and factors related to the product (Camilleri, 2018). Demographically, Virgin America mainly targets young business travelers, described as the X and Y generation, (Qin, 2015). These travelers are in the 25 to 40-year age bracket, young, tech-savvy, and urban professionals willing to spend a little extra for the added comforts the airline provides. Geographically, Virgin America is based in California, with one of its main hubs at the San Francisco International Airport close to the Silicon Valley, where most of its target customers are also based (Virgin Atlantic, 2019). Virgin America’s psychographic segmentation targets young professionals who are tech-savvy, have a higher income, and frequently travel for business or leisure. The airline meets these young travelers’ requirements by providing in-flight connectivity via Wi-Fi, interactive ordering of food and beverages using control panels whose screens are touch-sensitive, and a wide variety of up-to-date in-flight entertainment. Furthermore, Virgin America segments its target market based on the behavioral variable, which focuses on the target customers’ purchase behaviors (Camilleri, 2018). The airline is aware that most of its target customers are frequent internet users, and it, therefore, provides vital services such as flight bookings and payments on its website. The airline also uses product-related segmentation, where they have provided several amenities to ensure they meet the travelers’ requirements before, during, and after the flight (Bush, 2009). These amenities include internet connectivity, entertainment, charging ports for various electronics, a comfortable cabin with mood lighting, and leather seats, and they have led to some customers comparing their flight experience to flying in a nightclub or an iPod. The airline also has various special offers regarding the baggage allowance to attract more business travelers (Virgin Atlantic, 2019).

Question 2: Which market targeting is Virgin America following?

Virgin America is following the concentrated or niche marketing technique as opposed to mass marketing. This marketing technique is aimed at concentrating a firm’s limited resources on a specific and narrow group of consumers through a customized marketing strategy that seeks to fulfill the requirements of those target consumers (Larsen, 2010). This technique is ideal for Virgin America, as it is a relatively new entrant to America’s airline industry, and has limited resources compared to the established airlines. Virgin America’s niche is the youthful, urban professional with interests in business and technology, or a combination of both. The airline also seeks to improve customer satisfaction by enriching their experience during the flight, marketing itself as a commercial airline that is entertainment-based or an airline that offers reasonably priced luxury (Qin, 2015). Virgin airlines has undertaken various measures to attract consumers in its targeted niche market. One measure is creating an interesting video for the introduction to safety in the plane, which also incorporated the company’s advertisement. Another advertisement strategy is using social media sites like Facebook and Twitter since most people in the target market’s age bracket are avid social media users. Additionally, Virgin America boasts the most technologically advanced cabin to cater to the target market’s technological requirements, which include work and play. For the working business traveler, the airline provides Wi-Fi connectivity through Google Gogo, and Ethernet and USB outlets to recharge devices. For entertainment, there is an in-flight entertainment package with a wide variety of music, movies, free satellite television, and games (Virgin Atlantic, 2019). The airline also focuses on the comfort of its passengers to provide value for the ticket prices. Luxurious amenities include leather chairs and a control panel that enables passengers to order meals and beverages from the comfort of their seats.

Question 3: Write a positioning statement for Virgin America.

Are you a young, ambitious, independent, urban, tech-savvy professional or business person who travels frequently, embraces diversity, and is also on the quest for a work-life balance? Are you passionate, confident, adventurous, and a go-getter? Or are you just tired of the same old disappointing experiences while using your conventional airline and eager to experience a new comfortable and exciting experience? Well, we have great news for you! Virgin America aims to cause a disruption in America’s aviation industry and distinguish itself from all other players by providing commercial airline services focused on providing you, our customer, with unforgettable entertainment and luxurious travel at a reasonable price. With our DNA deeply embedded in our parent company, the Virgin Group’s globally-acclaimed customer-focused service, you can be assured that our staff will work tirelessly to ensure that you’ll have an unforgettable, top quality experience flying with us. We are the first airline to partner with Google Gogo to ensure you have Wi-Fi connectivity to ensure your work is uninterrupted as you fly with us. We even provide you with Ethernet and USB ports to ensure your devices remain charged throughout your flight. Furthermore, we provide you with an unlimited and exciting entertainment package with a wide variety of movies, music, games, and even free satellite television. Our cabin is the most technologically advanced in the industry, allowing you to order meals and drinks without rising from your seat or even waiting for the cabin crew to pass by through an interactive touchscreen panel on your seat. We also have leather chairs to ensure you are comfortable in all our cabins, and we even provide you with mood lighting to make your flight more relaxing and memorable. Visit our website today to explore the various exciting flight offers we have for you and experience a new and exciting way to fly!

References

Bush, M. (2009). Virgin America: An America’s Hottest Brands Case Study. AdAge (16^th November, 2009). Retrieved from https://adage.com/article/special-report-americas-hottest-brands-2009/virgin-america-america-s-hottest-brands-case-study/140490

Camilleri, M. A. (2018). Market Segmentation, Targeting, and Positioning. Travel Marketing, Tourism Economics and the Airline Product, pp 69-83.

Larsen, N. (2010). Market Segmentation: A framework for determining the right target customers. Aarhus School of Business, pp 1-43.

Qin, D. (2015). Virgin America Airline differentiation strategy in US airline industry. Medium (15^th April, 2015). Retrieved from https://medium.com/@doloresqin/virgin-america-airline-differentiation-strategy-in-us-airline-industry-aed2c738d482

Virgin Atlantic. (2019). Ruby: A blog run by Virgin Atlantic. Retrieved from https://blog.virginatlantic.com