Segmentation Variables

Fast Gulf Assignment Solutions February 14, 2020 UAE



we need to answer 4 questions 

7.19 using the full spectrum of segmentation variables, describe how virgin America segments and targets the market for airline services.
7.20 which market targeting strategy is virgin America following ? justify your answer.
7.21 write a positioning statement for virgin America.
7.22 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?
we need to make three copies.  
Solution
Discussion Questions
Case Study
Using the full spectrum of segmentation variables, describe how virgin America segments and targets the market for airline services?
Virgin America, an independent airline company, is owned by Richard Branson. Richard Branson is also an owner of Virgin Company, comprising of four hundred companies globally. The airline business is never easy to sustain, but the Virgin airline gained success because, from day one, it focused on the target market. The basic assumption was to satisfy potential customers. The airline appeals to the tech gurus with its uniquely designed airplanes having the facility of wifi and entertainment during the flight. The tech-savvy, urban, and educated class is the target audience. The latest hardware and software system is meant to attract the creative and young generation who wants to stay connected through social media apps like Twitter, Facebook, and so on. The tech gurus are motivated to pay a little bit more for the unique services offered by the Virgin America airlines.
Which market targeting strategy is virgin America following? Justify your answer?
For Virgin America, the target audience is young, tech-savvy generation; the ideal way to reach them is social media. The company uses social media to enhance awareness and emotional bonding with the target audience. The company communicates with the audience through Twitter and Facebook. Creative videos are shared on YouTube to educate consumers. Social media campaigns aim to engage the target audience, create awareness about the airlines, and enhance emotional connectivity. Virgin America does not utilize TV ads as the target audience utilizes mobile phones and apps more often. The campaigns on social media are designed to enhance customer loyalty. The benefit of reaching out to customers through social media is that it’s less costly and attracts only the target market.
Write a positioning statement for virgin America?
Virgin America provides an innovative and comfortable experience for the customers. The leather seats, along with in-flight wifi technology, are heaven for the tech-savvy generation. At the back of the seat, a touch screen with Red system enables the user to get access to the wifi system. The passengers can order from the menu with the help of a touch screen. The Red system enables customers to watch movies, listen to songs and play games, and so on. The latest system used by the touch screen in virgin America is the latest software used by the airline industry. The airplanes have a USB port and Ethernet jacks with every seat, which enables customers to use their phones during the flight. To enhance the productivity of the system, the airline affiliated with Google to provide in-flight internet.
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?
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 wifi system Virgin America offered; to meet the needs of the target audience.
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Case study
Discussion Questions
Using the full spectrum of segmentation variables, describe how virgin America segments and targets the market for airline services?
Virgin America is a California based airline company, owned by Virgin Company. Sir Richard Branson founded this company. Virgin America got tremendous success in the airline business as it focused on the target audience and segmented the market for the airline. The airline targets the tech-savvy, educated, and urban class. Males and females between 25 to 44 years of age are viewed as potential consumers who want social media and technology to connect with other people. The potential customers of Virgin America are the young generation who is willing to pay for comfortable, stylish, and innovative flight services. The airline has the facility of wifi, gaming, and touch screen to order menu and a variety of entertainment options at the back of the seat, which appeals to the target market.
Which market targeting strategy is virgin America following? Justify your answer?
Virgin America is utilizing guerrilla marketing to reach the target audience. The typical means of campaigns are not used, but virgin America connects with potential consumers through social media. The airline focuses on tech savvy generation, so the means of reaching to them is the latest social media apps like Twitter, Facebook, YouTube, and so on. The airline company has more than 200,000 followers on Facebook and 30,000 followers on twitter. The airline company made unique and creative safety videos for the awareness of customers. As Virgin America’s target market is young “creative class,” the best way to reach them is social media. The social media campaigns engage customers; enhance awareness and emotional bonding with the customers.
Write a positioning statement for virgin America?
Virgin America offers unique and innovative features to its customers. There are comfortable leather seats, a touch screen at the back of every seat which utilizes the red system. The red system is the most advanced system of entertainment in the airline industry, which facilitates music, films, and games. For in-flight wifi, the airline company collaborated with Google. There are USB plugs, and Ethernet jacks with every seat in the airplanes as the airline wants the potential customers to use their mobile phone during the flight as well. Virgin America offers high-tech, low-cost services to customers while being stylish and trendy. The airplanes have ample legroom and friendly staff, which raises its appeal for customers. These are some of the features which make Virgin America stand apart.
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?
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.
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Case Study
Questions for Discussion
Using the full spectrum of segmentation variables, describe how virgin America segments and targets the market for airline services?
The airline Virgin America is a subsidiary of the Virgin Group, owned by Sir Richard Branson, is comprised of four hundred companies all over the world. For airline services, the company targets the young, tech savvy, and urban class.  This is known as the “creative class,” which is the focus of Virgin America airlines. This target audience belongs to the educated and urban class and loves to socialize through webs like twitter, Facebook, and so on.  The airline operates in San Francisco, to facilitate technological startups in Silicon Valley. The target market, i.e., the creative class, pays for luxury and comfortable system offered by the airline during the flight, such as electronic plugs, internet service, gaming, and so on. The airline has appeal for the type of consumers who are between the ages of twenty-five to forty-four, well educated. 
Which market targeting strategy is virgin America following? Justify your answer?
Virgin America targets the tech savvy, urban, and educated class and provides high-quality services at a low price. The company aims to satisfy potential customers. The target audience is engaged with the help of social media, such as Twitter and Facebook. The airline responds in one on one way to customers with the help of Facebook. The twitter account of the company has almost 30 000 followers. The airline company promotes itself with the help of tweets. Creative videos which show the importance of safety, and so on are present on YouTube. As the target audience usually spends most of the time on social media and technological devices, the company reaches to them through those websites rather than traditional TV campaigns.
Write a positioning statement for virgin America?
The Virgin America airline is based in California and aims to provide consumers with the best airline experience. The airline has brand new planes with high tech instruments to facilitate potential consumers.  The media campaigns by the company to appeal the potential consumers are innovative and creative. Unlike other airlines, Virgin America is comprised of mood-lit cabins having wifi service which enables customers to use social media during the flight as well, the comfortable leather seats, and the touch screen at the back of every seat helps the customers to fulfill their needs like food and entertainment on demand. These are the things that make Virgin America a unique experience.
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?
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 b 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 wifi system can be used even after the acquisition by Alaska airlines.