CHAPTER 10

Anggi Pramita Ester Gani Ricky W Robino I Emmanuel Priandito

PROFILE & HISTORY

PROFILE & HISTORY

MAIN ACTIVITIES

BRAND VALUES OF VIRGIN GROUP

COMPETITOR

SWOT Analysis of Virgin Group

Strength: 1.It is the master of building brand value. 2.Offers a choice for every customer. 3.The creation of partnerships. 4.Virgin reviews the industry. 5.The awareness of opportunities for restructuring a market. 6.Bransons reputation. Weakness: 1.Virgins constantly expanding empire could take it to reck. 2.Virgin could be considered as a monopolistic company. 3.They arent leaders in their markets. 4.Virgin has minimal management layers, no bureaucracy, a tiny board and no global HQ.

Opportunities: 1.Virgin can offer something better, fresher and more valuable. 2.Virgin delivers old products and services in new ways. 3.Virgin considered using in-store listening kiosks, while reducing operating costs. Threats: 1.The global copetition in the market. 2.The network of rivals in the market. 3.Its not domination of the markets may disappear with competition.

Marketing Strategy and Target Market:

Virgin Marketing Strategy is based in Bransons intuition. The company uses its strong brand name to guarantee quality of diverse products and services. The strategy of public figure marketing. Two types of objectives define their marketing strategy. These objectives are strategic thrust (future direction of the business) and strategic objectives.

Target market segments are ranging from modern, traditional working class, to upper conservative.

Advertising:
Objectives: 1. To encourage people to try our services and products. 2. To raise awareness of new product developments. 3. Capture the attention of the media and consumers. 4. To gain new consumers and brand recognition.

Media: TV, press, magazines, outdoor posters, and taxi sides.

The company uses direct mail to send ads so people can be aware of any new product, service, and our promotions. This advertises uses famous artists and singers.

Competition Between Virgin Airways vs British Airways

Airline Airline Website Airline Category Airline Type Primary Airline Alliance

General information British Airways British Airways (britishairways.com) Luxury International Oneworld Ratings 77 4 out of 5 Contact Information

Virgin Atlantic Airways Virgin Atlantic Airways (virginatlantic.com) Luxury International 74 4 out of 5 86.62 out of 100 Virgin Atlantic Airways (virginatlantic.com) (800) 862-8621 Web Form on Site $0 $60 $140 81 inches

Smart Rating Skytrax Rating

Travel and Leisure 2011 Rating

Airline Website Phone Email Type 1st Bag (Checked) 2nd Bag (Checked) 3rd Bag (Checked) Max Checked Bag Dimensions

British Airways (britishairways.com) 0 (844) 493-0747 Web Form on Site Checked Baggage $0 $51 $51 81 inches

Max Checked Bag Dimensions with Extra 130 inches Fee

Max Checked Bag Weight 51 lbs

35 inches
50 lbs 70 lb $50 Airline Leg Room 31 inches 76 inches Choose your seat Exit Row Extra Legroom None Offered Seat Upgrade

Max Checked Bag Weight with Extra Fee 70 lb Checked Bag Overage Fee (low) Checked Bag Overage Fee (high) Economy Seat Pitch Business Class Seat Pitch $51 $51 31 inches 73 inches Choose your seat Exit Row Extra Legroom None Offered Seat Upgrade

Preferred Seating Options

Preferred Seating Cost (low) Meal Price Snack Price (low) Snack Price (high) Unaccompanied Minor Type Unaccompanied Minor Fee

$75 $0 $0 $0 Per Child $75

Per Child -

Booking Fees Carry On Baggage Carry-On Weight

Carry-On Dimension: Length Carry-On Dimension: Width Carry-On Dimension: Height Carry-On Dimension: Volume Specialty Baggage Special Baggage may incur special fee? Special Baggage Pet (Cabin) Pet (Cargo) Pet (Checked) Additional Airline Information Primary Geographic Region

$0
51 lbs 18 inches 10 inches 22 inches 3,960 cubic inches

13 lbs 9 inches 14 inches 22 inches 2,772 cubic inches

Archery Equipment $80 $0 $0 $0 Internationally-based Airlines -

Archery Equipment

Internationally-based Airlines

Hub Airports

Charlotte/Douglas International London Heathrow Airport (LHR), London Airport(CLT), Philadelphia International Gatwick Airport (LGW). Airport(PHL), Phoenix Sky Harbor International Airport(PHX)

Frequent Flyer Program

Executive Club

Flying Club

Richard Branson as Image of Virgin Group

Structure
Virgin Group

Virgin Travel

Virgin Lifestyle

Virgin Media & Mobile

Virgin Music

Virgin Money

Virgin People & Planet

Virgin group Global Product Structure

Activities within the companies are organized around specific products or product groups Department/division is responsible for all functions in specified products Very heterogenous product lines

Virgins Strength
Intensive knowledge transfer concerning product Focus on differences between products Expertise on specific products Flexible response to changes in product requirement High market orientation of product divisions Promotion of enterprenual behaviour

Virgins Weakness
Duplication of functions Low knowledge transfer to other regions Complicated coordination and cooperation between product divisions

Virgin Travel
Virgin Atlantic Airways Virgin Holiday

Virgin Lifestyle
Virgin Active

Virgin Media & Mobile

Virgin Media

Virgin Music
Virgin Megastore

Virgin Money
Virgin Money

Virgin People & Planet

Virgin Unite

Virgin Balloon Flights

Virgin Mobile

Virgin Festivals

Virgin Earth Challenge

Virgin Trains

Virgin Racing

Virgin 1

Virgin Radio International

Virgin Green Fund

Virgin America

Virgin Experience Days

Virgin Connect

Virgin Galactic

Virgin Spa

Management Style
Integration between brand franchising operation and Japanese keiretsu system
Brand franchising: identity as purchasable asset Keiretsu: business relationship and shareholdings between a set of companies

Management Style
Decentralised structure responsibility and control in the management of each unit.
Unorthodox version centralised long-term business direction and financial control of the group in the executives of the Group

Management Style
Holfsteeds Cultural Dimension
Low power distance
No barrier between employees and superior Minimum layer in chain of command

Low uncertainty of avoidance

Innovativeness and enterpreneurship

Individualism
Self-directed team

Leadership Style
Transformational leadership
Focus on positive changes to members/employees Work = fun employees gain pleasure from their role and gain sense of fulfillment from contributing a larger goal Create sense of belonging and loyalty as well as dedication of employees to the companies Employees involvement in decision making process Lead to very few problems with the employees

Communication Style
Upward communication style
Provide feedback, ask questions, obtain assistance from higher level management Get input from employees and their concerns through employees survey Great ideas oftenly came from the employees

Virgin Atlantic vs British Airways

Difference in its size and culture British Airways
Formal structure with precise rules and procedures due to its size and global scope of activity

Virgin Atlantic
Cost conscious, lean organizarion Small, networked and dynamic structure Relies more on personal initiatives

Management Style: Head-to-head

British Airways Bureautratic and distancing Neglect of subordinates Depersonalisation and hierarchy Virgin Atlantic Flat organization with an open and flexible culture Informal organization climate Ability to move quicky, innovate and react well to threats Power culture to to central figure: Richard Branson

 Virgin put staffs first on priority Generate 99% of staff retention stability and continuity

CORPORATE CULTURE
Virgin Group Tough guy, macho culture Types of corporate culture - Tough guy, macho culture : success and failure come very quickly, higher risk - Bet-your-company culture : the result of decisions pay off in long time - Work hard/play hard cultures : small risk, rapid feedback - Process culture : little or no feedback, small risks

CORPORATE CULTURE

CORPORATE CULTURE
Virgin Group Tough guy, macho culture WHY higher risk and fast market feedback - Virgin Group is a venture capital company - Long term planning, decisions are taken from growth perspective - Companies operates independently, loosely structured under a common brand name: VIRGIN - Brand dependent on Branson - Virgin get business opportunities where customers were being treated badly

CORPORATE CULTURE
How Virgin Group develop a strong corporate culture: Building a shared vision 3 criteria - Clarity: corporate vision needs to be simple, relevant, and important - Continuity: organizational values and strategic objectives need to be constant over time - Consistency: all people in organization must share the same vision

CORPORATE CULTURE
Virgin group has strong corporate culture as coordination mechanism Virgin slogan: Being the best, not the biggest (Clarity Criteria) Culture of Virgin Group (Continuity Criteria): High priority for the staff Capturing ideas Virgin community Be the best not the biggest Priority to the customers Create new business instead of taking over an already existing company

CORPORATE CULTURE
All the companies under Virgin Group must have typical Virgin identification represented by values (Consistency Criteria)

CORPORATE CULTURE
How Virgin Group develop a strong culture: Building a shared vision Role model - Visible behavior and public actions of senior management - Corporate cultures are shaped by company founders or long term management - Through charisma of founders that are seen as heroes which personify cultures value

CORPORATE CULTURE
Richard Branson PARTICIPATIVE LEADERSHIP style 3 styles of leadership (buku abu-abu CH 13, hlm 461): - Authoritarian leadership : one way downward flow of information and influence from authoritarian leader - Paternalistic leadership : continual interaction and exchange of information and influence between leader and subordinates - Participative leadership : continual interaction and exchange of information and influence between leader and subordinates and between subordinates

CORPORATE CULTURE
Minimal management layers, no bureaucracy Management through empowerment, companies under virgin group are all empowered to run their own affairs Virgins employees are valued as individual Involving employees in the organizational process

Little hierarchy take employees like family Our companies are part of a family, rather than a hierarchy Richard Branson

CORPORATE CULTURE
BRANSONISM - Unafraid of failure, refuse to stay within the confines of single core of business - Virgin Group failed ventures : VIRGIN COLA, VIRGIN RAIL, VIRGIN BRIDES - If you know one business, you know any businesses - Organic growth prefer to create new business rather than taking over an already existing one

VIRGIN COLA
Join venture between Virgin Group and Cott Corporation (Canadian) in the early 1994 Market : US Market and UK Market Aimed to rival Coca Cola and PepsiCo

VIRGIN COLA
Why it failed? - Too ambitious one of the culture of Virgin: COMPETITIVELY CHALLENGING - Coca Cola and Pepsi have established strong brand of carbonated drinks worldwide - Not good enough products - Did not fit with the brand image - Little on advertising
That business taught me not to underestimate the power of worlds leading soft drink makers. Ill never again make the same mistake of thinking large, dominant companies are sleepy Richard Branson

CORPORATE CULTURE
How Virgin Group develop a strong culture: Building a shared vision Role model Initial socialization - Process of socialization of individuals through communication of the way doing things - Organization has to pass elements of its culture on to new members of the organization

CORPORATE CULTURE
Virgin Groups initial socialization done through VIRGIN COMMUNITY Members of an organization must share certain values specific to the group Everyone is expected to be familiar with corporate culture Ideas, values, interest, and goals are shared in the community

RECOMMENDATION
Become less diverse - Virgin name has become diluted and its brand a purely endorsement brand Virgin Cola

Reduced dependence on Richard Branson to ensure future beyond Branson - Introduce new role model - Connection between Branson and role model

RECOMMENDATION
Less emphasize on the brand - In the competitive market, brand may not be enough - Global consumer required not only product but also elements that add position in the market (positioning) Attack less dominant companies at first market penetration - To avoid failure such as Virgin Cola

CONCLUSION
Virgin is a leading branded venture capital organization and is one of the worlds most recognised and respected brands Virgin had Minimal Management Layers, No bureaucracy, a small board of directors and no massive global headquarter Virgins flexible structure, dynamic culture and charismatic leadership and ability to understand employee needs can face up to challenges and grow to a great degree

THANK YOU