Nov 16, 2014
Virgin America- Redefining Elegance in Flying
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Company Background
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Company Background
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The 1978 Deregulation
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Industry Economics
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Pressures in the Airline Industry
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Airline Yield Management
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Airline Capacity Utilization
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Operating Revenue (2000-2009)
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Available Seat Mile Capacity
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Change in Total Employees
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Opportunities and Threats
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Strengths and Weaknesses
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Key Success Factors
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• "unmanaged" or "self-managed" travelers “(1)• Young frequent travelers, very urban, tech savvy• Budget conscious consumers
Target markets
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Positioning strategy• “Stylish services at discounted
prices”• Domestic travelers get more for
their money by providing higher level of comfort and making coach seats affordable
• In-flight interactive experience (entertainment system, mood lighting)
• Huge social media connectivity• ELEVATE loyalty program
(matching competitive airlines elite status)
• Virgin America Visa Signature® Card
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Recognitions and Awards
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Promotional Activities
• Social Media• Sales promotions• Brand awareness• Service– Rebooking
• Discount web sites• Groupon• Livingsocial• Gilt
• Multimedia Ad Campaigns• “Breath of Fresh Airline”
- Online, Print, Outdoor• “Virgin Skies”
- Online & Outdoor19
Perceptual Mapping
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Scenario AnalysisStrategic Uncertainties
Aggressive response (20%)
Passive response (80%)
Virgin America’s
stylish service at discounted
price
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Fly High with Virgin America
• Sustain stylish service at discounted price
• Raise capital• Intensify multimedia and
outdoor advertising
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