What was the segmentation plan for Virgin America? Who did it benefit?
Virgin America has a segmentation approach based on psychographics. Customers are targeted using the segmentation variable based on lifestyle, socioeconomic class, and unique consumer characteristics. Virgin America uses the target market’s special features to meet the needs of the niche. Attitudes, interests, and opinions are typical psychographic traits (Johansson, 2017). The company caters to those with refined tastes, lives, and ideals. Such individuals partake in exclusive activities, and Virgin America creates items specifically for this market. The business aims to meet the personality traits of people who base their judgments on the facts that Virgin America gives its customers. The market segment has a highly technological mindset and is keen to try new things, regardless of the cost.
What did Virgin America provide its clients in terms of its primary market?
The business caters to a sophisticated market of customers who can afford upscale products and services. Virgin American offers space travel for customers who can afford futuristic consumer goods, and passengers can access all amenities. The strategy establishes the business as a top service provider in the industry. Without competition from the nation’s leading airlines, Virgin America focuses on a select set of devoted customers (Bailey, 2020). The business sets realistic goals, achieves them, and goes above and beyond for its clients.
Virgin American has developed a reputation for offering enjoyable, amusing, and customer-focused flight products that include extras that improve the traveling experience and exhibit great productivity.
According to the Porter model, which general business-level strategy was Virgin America pursuing?
Virgin America uses differentiation to keep its distinctiveness and the best technology features that draw its niche market. The business is aware that its customers desire specialized services during flights. Therefore, it tailors everything to achieve maximum effectiveness (Islami, Mustafa, & Topuzovska Latkovikj, 2020). Virgin America has positioned itself as a specific airline; clients must pay a premium to use its offerings. The company’s ability to accommodate the expectations of upper-class passengers, who demand access to facilities while traveling, is made possible by its competitive advantage. Because the brand has concentrated on addressing customers’ expectations, customers can be sure they will receive dependable services when they fly with the airline. There is consistency in the booking process, situational awareness, and in-flight entertainment.
What practical steps were taken to allow Virgin America to carry out its strategy?
Virgin America used cutting-edge technological solutions that gave it a significant competitive advantage to implement its plan. The business invested in advanced engines, efficient construction methods, and information technology support systems. The company has also invested in customer service to give passengers seamless and customized service. The cabin crew has received recognition for their superior services. Customers like Virgin America’s dependable services and express comfort when using them.
The management pays close attention to the fundamental requirements of the passengers that improve comfort while traveling, such as entertainment, full-service meals, and roomy legroom.
Bailey, J. (2020, Sept. 21). How Virgin America was ahead of its time. Simple Flying. Retrieved from https://simpleflying.com/virgin-america-ahead-of-times/
Islami, X., Mustafa, N. & Topuzovska Latkovikj, M. (2020). Linking Porter’s generic strategies to firm performance. Futur Bus J, 6(3). https://doi.org/10.1186/s43093-020-0009-1
Johansson, R. (2017). Which market segmentation variables are most effective in determining new business potential? Arcada. Retrieved from https://www.theseus.fi/bitstream/handle/10024/139967/THESIS%20FINAL%20VERSION.pdf?sequence=1&isAllowed=y
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Week 4 Discussion Forum (MKT6250 Healthcare Marketing)
1. Discuss how marketing changes based on the stages of a product life cycle. Can a product/service overcome the product life cycle? How?
Unit 4 DB: Virgin America (BUS411 Business Policy Seminar)
Review the Virgin America short case study at the end of Chapter 5 for this question. Before 2016, Virgin America was consistently rated as one of the top U.S. airlines. It served 20 destinations out of its central hub in San Francisco. Known for its leather seats, cocktail-lounge-style lighting, onboard Wi-Fi, in-seat power outlets for electronics devices, full-service meals, and spacious legroom, the critical competitive issue the company has been facing is that it is a niche player in a much larger industry where low-cost carriers such as Southwest Airlines and Jet Blue are putting constant pressure on prices and crowding out routes with multiple flights a day. After reviewing the entire case, please answer the following questions.
1. What was Virgin America’s segmentation strategy? Whom did it serve?
2. Regarding its core segment, what did Virgin America offer its customers?
3. Using the Porter model, which generic business-level strategy was Virgin America pursuing?
4. What actions, taken at the functional level, enabled Virgin America to implement its strategy?
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