Topic > Swot Analysis Virgin Airlines - 976

For example, if segmentation were to be based on demographics, the market would be segmented based on the income, location and age of the airline's potential customers. Age would be further differentiated into distinct classes consisting of age limits. It is advisable for this company to target customers between 30 and 60 years old as the main target group, as they are the dominant customers in the airline industry. This group has a higher income than other categories, as it falls within the working class. Furthermore, statistics indicate that more than 70% of international travelers fall into this age group. Those aged over 60 should constitute the secondary target group as they are mostly retired and have adequate time and resources to travel around the world, mainly for recreational purposes. Virgin Airlines Company has a competitive market positioning plan that uses the economics of scaling business concept to devise customer-friendly pricing strategies to outperform its competitors. However, the company's tendency to avoid new investment initiatives in certain areas highlights its weak side. This weakness risks shifting the loyalty of its customers towards its competitors. This is one of the main reasons why the company is gradually losing ground to its competitors, who are performing well in terms of market share (Pinson, 2008). The company should also aim to extend the quality of its services beyond customers' expectations to win their trust. This should start with thorough staff training. In a favorable environment with favorable working conditions, a more professional workforce is able to provide higher quality services. To command a larger market segment, the company should also r...... middle of paper ....... (2011). The right-brain business plan: a visual and creative map to success. Novato, CA: New World Library.McDonald, M., & Dunbar, I. (2012). Market segmentation: how to do it and how to profit from it. Chichester: John Wiley & Sons.Nieuwenhuizen, C., & Erasmus, B. (2007). Business management for entrepreneurs. Cape Town: Juta.Ottman, J. A. (2011). The new rules of green marketing: strategies, tools and inspiration for sustainable branding. Sheffield: Greenleaf Pub. Pinson, L. (2008). Anatomy of a Business Plan: A Step-by-Step Guide to Building Your Business and Securing Your Company's Future. Tustin, CA: Off and on the market. Shankar, V., & Carpenter, G. S. (2012). Marketing strategy manual. Cheltenham: Edward Elgar Pub.Weingand, D.E. (2009). Marketing/planning of library and information services. Englewood, CO: Libraries Unlimited.