Brands the Resonate: The Newest Member to the Virgin Empire

Virgin is one of the world's most recognizable and respected brands. Created in 1970, Virgin is a leading branded venture capital organization. They have brands extending in a wide range of industries, from cellular devices, to travel, to financial services, to music, and so on. Employing an astonishing amount of 50,000 people, Virgin is dispersed throughout 29 countries. In 2006, revenues exceeded $20 billion. Having learned about branding techniques in a course I am currently taking at USC entitled New Product Development and Branding, I have concluded which tactics Virgin uses in order to create resonance with their cus

tomers. Virgin strives to have their customers desire a relationship with their brand through the company's values. The company also assesses and influences customer loyalty levels by explaining how they "facilitate and monitor customer feedback to continually improve the customer's experience through innovation." Virgin prides itself on being able to implement a new venture at the opportune time, basically being at the right place at the right time. They explain that all new expansions are done with considerable research and involvement. There are several factors that contribute to companies', developed under Virgin, success: the brand equity (an intangible benefit) of the Virgin name, the brand reputation, and the structure of their organization. Virgin targets markets of people who have been under-served which enables the brand to create a competitive advantage. Most recently, Virgin has released a new addition to the travel industry. Although the economy is on a decline, Virgin's brand equity should be enough to ensure success of the launch of their newest airline, V Australia.  

In an article summing up 2008's financial data in regards to airlines, the Bureau of Transportation Statistics stated, "the six largest network airlines, as a group, reported an operating loss margin of 5.8 percent."  Virgin is not a publicly traded company and because of this fact, I was unable to find any information on the financial performance of Virgin's airlines.  I am only able to infer that their airlines are prospering since they have decided to extend their fleet.  On February 27, 2009, V Australia launched its inaugural flight from Sydney to Los Angeles. Virgin sought to open up a trans-Pacific getaway that offers an innovative, affordable, and high quality flying option. V Australia is starting with three departures a week between Sydney and LA, but by March 20th, they plan to provide daily flight services between the two locations. The airline will also eventually offer flights from Los Angeles to Brisbane and Melbourne, and one from Australia to South Africa. On Friday, the Chief Executive Brett Godfrey described the event by saying, "We are launching a new contemporary international airline for Australia. 

Today's flight to Los Angeles marks the start of a new era for Australian's who travel long distances overseas... V Australia will raise the standards of trans-Pacific travel, by offering a level of style, comfort and of course affordability, not seen before." An attractive measure to the airline is the three classes they have available. Business Class has 33 seats that lie-flat into beds, there are 40 Premium Economy Club seats and 288 economy seats. All seats in this Boeing 777-300ER aircraft are equipped with state-of-the-art touch screen seat-back entertainment which provides games, movies, and television. Onboard there are two bars for in-flight passengers to enjoy. V Australia has a competitive advantage over the only other airlines who fly this trans-Pacific route, Qantas and United, by being the only airline to fly a Boeing 777 aircraft on this route. Previously, on this route Qantas had the advantage in the entertainment category, whereas United had the advantage by offering the cheapest flights. V Australia hopes to cash in on both better amenities and cheaper fares.

So how did a company who was best known for Virgin Records in the 1980s end up being huge in the airline industry? Owner of Virgin, Richard Branson, decided that he wanted to create an airline that was economical and of high quality. In 1984 his dream came true with the launch of Virgin Atlantic. By 1990, the airline had flown over 1 million passengers and rose the amenities bar by being the first to offer individual TVs to those seated in Business Class. By the end of the century, Branson received knighthood for his services to entrepreneurship. Based in Brisbane and Queensland, Virgin Blue was launched in August 2000 as a domestic flight for Australia. At an aim to create the best airline in Africa, Virgin Nigeria was born in September 2004. Launched in August of 2007, California based Virgin America vowed to make "flying good again". I have flown this airline and thoroughly enjoyed my flight. Virgin America offers domestic flights with mood-lit cabins, friendly service, leather seats, power-outlets and a superior entertainment system. These individual TV screens offer 25 movies, live television, video games, seat-to-seat chatting, and on-demand food ordering. Even with all of those great amenities, the friendly in-flight crew is what will lead my loyalty to Virgin branded airlines. The staff greets everyone with a genuine smile and is eager to assist passengers at all times. This aspect is so refreshing to me since flight attendants on other airlines are becoming increasingly more bitter towards passengers. Upon landing at a destination I am usually eager to get off the plane; however, I was sad when my plane from Los Angeles to San Francisco landed and wanted to stay aboard relaxing and enjoying the live TV. From that one trip on Virgin America, I have developed brand loyalty which is what Virgin seeks to achieve from consumers (as illustrated above).

Despite these admirable features, the difficult economic times the world is going through cannot be ignored.  Nevertheless, I encourage all of my readers to experience a Virgin branded flight. Virgin had created an airline brand that resonates with consumers by offering an extended list of amenities and unforgettable customer service. Virgin is justified with priding itself on implementing a new venture at the opportune time as exemplified above with the strategic launching of their specialized airlines. V Australia looks promising as an extension to the Virgin empire as it possesses complete competitive advantage in the trans-Pacific flight region. Also Virgin has already established its brand identity within both American and Australian consumers through Virgin America and Virgin Blue (both domestic flights of the U.S. and Australia). There is a bright future ahead for the Virgin brand, especially in regards to travel.