E Commerce & Value Chain Integration

Group Assignment

(B2C)
Group Members : asun !ana"a#ara $hashi#ala %a"asinghe Arin&a %a"a'ar&ena

(ecture !ame Course !o )erm

: $ $ri#anth : M ) *+, : -all 2,,.

Page Contents
/age !o
(1) What is E COMMERCE ?.. (2) What is Business-to-Consumer (3) What is Virgin t!anti" 1 1 1 2 3 ) 11 1# 113

(#) Com$an% Ba"&groun' an' (istor% ()) Com$an% *trateg% (+) E,Commer"e *trategies . (-) .esign o/ the 0e1 site . (2) On!ine Bran'ing ... (3) $$en'i4 ...

(15) *our"es o/ in/ormation .

1.0 What is E COMMERCE ?

s the num1er o/ 6nternet users has in"rease'7 so has the 8ariet% o/ 0e1sites. We1sites no0a'a%s in"!u'e 8arious t%$es7 su"h as those /or tra'ing $h%si"a! $ro'u"ts an' those /or on!ine net0or& games. E-"ommer"e is the most $er8asi8e an' $rominent t%$e. 6t is the 1usiness $ro"ess o/ se!!ing an' 1u%ing the $ro'u"ts7 goo's an' ser8i"es 1% on-!ine "ommuni"ations. 6t "an 1e high!% 1ene/i"ia! in re'u"ing 1usiness "osts an' in "reating o$$ortunities /or ne0 or im$ro8e' "ustomer ser8i"es7 "ustomers /ee! "on8enien"e to or'er an' are a1!e to "o!!e"t $!ent% o/ in/ormation to "om$are ana!ogous $ro'u"ts 0hi"h are manu/a"ture' /rom the 'i//erent 8en'ors. Ven'ors "an tra'e g!o1a!!% an' /in' ne0 mar&et 0ith "ut 'o0n in8estment9 ser8i"e $ro8i'ers !i&e ir!ines "an re'u"e "ost E!e"troni" "ommer"e7 "ommon!% &no0n as e-"ommer"e or e Commer"e7 "onsists o/ the 1u%ing an' se!!ing o/ $ro'u"ts or ser8i"es o8er e!e"troni" s%stems su"h as the 6nternet an' other "om$uter net0or&s. E!e"troni" "ommer"e is genera!!% "onsi'ere' to 1e the sa!es as$e"t o/ e-1usiness. 6t a!so "onsists o/ the e4"hange o/ 'ata to /a"i!itate the /inan"ing an' $a%ment as$e"ts o/ the 1usiness transa"tions. E!e"troni" "ommer"e that is most!% "on'u"te' 1et0een 1usinesses an' "onsumers7 on the other han'7 is re/erre' to as 1usiness-to-"onsumer or B2C. :his is the t%$e o/ e!e"troni" "ommer"e "on'u"te' 1% "om$anies su"h as Virgin t!anti" 1.1 What is Business-to-Consumer or B2C B2C 'es"ri1es a"ti8ities o/ 1usinesses ser8ing en' "onsumers 0ith $ro'u"ts an' or ser8i"es. Virgin t!anti" is using B2C on their E Commer"e

1.2 What is Virgin Atlantic Virgin t!anti" ir0a%s ;t'. (o$erating as Virgin t!anti") is a British air!ine o0ne' 1% Ri"har' Branson<s Virgin =rou$ ()1>) an' *inga$ore ir!ines (#3>). 6t o$erates 1et0een the ?nite' @ing'om an' Aorth meri"a7 the Cari11ean7 /ri"a7 the Mi''!e East7 sia7 an' ustra!ia /rom main 1ases at ;on'on (eathro0 an' ;on'on =at0i"&. Ba"& in the ear!% 25s Ri"har' Branson 0as $ro1a1!% 1est &no0n /or Virgin Re"or's - the !egen'ar% re"or' !a1e! that signe' maBor names !i&e the Ro!!ing *tones7 Canet Ca"&son an' :he (uman ;eague. 6n 132#7 mu"h to the horror o/ his 'ire"tors7 Ri"har' announ"e' to the 0or!' that a high Dua!it%7 8a!ue /or mone% air!ine 0ou!' 1egin o$erating 0ithin three months. :hree months7 some !i"enses7 sta// an' an air"ra/t $a"&e' 0ith "e!e1rities !ater7 Virgin t!anti" ir0a%s 0as 1orn. B% the en' o/ the 'e"a'e 0e ha' /!o0n o8er 1 mi!!ion $assengers an' starte' sha&ing u$ ser8i"es on1oar' 1% 1eing the /irst air!ine to o//er in'i8i'ua! :Vs to their 1usiness "!ass $assengers.

1.3 Com an! Bac"groun# an# $istor! *in"e it 0as /oun'e' in 132#7 Virgin t!anti" ir0a%s has 1e"ome BritainEs se"on' !argest "arrier ser8ing the 0or!'Es maBor "ities. Ao0 1ase' at ;on'onEs =at0i"& an' (eathro0 air$orts an' Man"hester air$ort7 it o$erates !ong hau! ser8i"es to thirt% 'estinations 0or!'0i'e as /ar a$art as ;as Vegas an' *hanghai. Virgin t!anti" has enBo%e' huge $o$u!arit%7 0inning to$ 1usiness7 "onsumer an' tra'e a0ar's /rom aroun' the 0or!'. :he air!ine has $ioneere' a range o/ inno8ations setting ne0 stan'ar's o/ ser8i"e7 0hi"h its "om$etitors ha8e su1seDuent!% sought to /o!!o0. .es$ite Virgin t!anti"Es gro0th the ser8i"e sti!! remains "ustomer 'ri8en 0ith an em$hasis on 8a!ue /or mone%7 Dua!it%7 /un an' inno8ation. Virgin t!anti" has "arrie' aroun' )2m $assengers sin"e it 1egan o$erations an' no0 em$!o%s o8er 3555 $eo$!e 0or!'0i'e. Virgin t!anti" is the Duintessentia! Virgin stor%. 6t has e8er% ingre'ientF the sma!! ne0"omer ta&ing on the giant an' "om$!a"ent esta1!ishment7 the $eo$!eEs "ham$ion intro'u"ing 1etter ser8i"e an' !o0er "osts /or $assengers 0ith a re$utation /or Dua!it% an' inno8ati8e $ro'u"t 'e8e!o$ment. Virgin t!anti" 0as 'e8e!o$e' as an o//shoot o/ Ri"har' BransonEs Virgin =rou$7 0hi"h 0as 1etter &no0n at the time as a !ea'ing !ight in the 0or!' o/ $o$ an' ro"& musi". On 22 Cune 132# VirginEs inaugura! /!ight to Ae0ar& too& $!a"e7 a /!ight /i!!e' 0ith /rien's7 "e!e1rities an' the me'ia. :he air!ineEs aim 0as sim$!eF G:o $ro8i'e the highest Dua!it% inno8ati8e ser8i"e at e4"e!!ent 8a!ue /or mone% /or a!! "!asses o/ air tra8e!ersH.

O%nershi On 25 .e"em1er 1333 Ri"har' Branson signe' an agreement to se!! a #3> sta&e o/ Virgin t!anti" to *inga$ore ir!ines to /orm a uniDue g!o1a! $artnershi$. :he "ost o/ the transa"tion to *inga$ore ir!ines 0as I+55.2) mi!!ion7 0hi"h in"!u'e' a "a$ita! inBe"tion o/ I#3 mi!!ion an' 8a!ue' Virgin t!anti" at a minimum o/ I1.22)1i!!ion. Routes Ao0 1ase' at ;on'onEs (eathro0 an' =at0i"& air$orts an' Man"hester7 it o$erates !ong hau! ser8i"es /rom (eathro0 to Ae0 Jor&7 ;os nge!es7 *an Kran"is"o7 Washington7 Boston7 Miami7 Chi"ago7 :o&%o7 (ong @ong7 Cohannes1urg7 Ca$e :o0n7 Aairo1i7 *hanghai7 .e!hi7 Mum1ai7 ;agos7 Mauritius7 *%'ne% an' .u1ai. Virgin a!so o$erates ser8i"es /rom =at0i"& to Or!an'o7 Bar1a'os7 *t ;u"ia7 ntigua7 ;as Vegas7 =rena'a7 :o1ago7 Cu1a7 Montego Ba% an'

@ingston. Virgin *t ;u"ia.

t!anti" a!so o$erates a ser8i"e /rom Man"hester to Or!an'o7 Bar1a'os an'

Virgin

t!anti"Es thirt% routes 0or!'0i'e are 1ro&en 'o0n as /o!!o0sF

15 routes to the ?* + sia Pa"i/i" routes # /ri"an routes 1 6n'ian O"ean route 1 route to the Mi''!e East 2 Cari11ean 'estinations

Aircra&t Or#ers an# 'leet

Virgin t!anti" "urrent!% has a /!eet o/ 32 air"ra/t7 0hi"h in"!u'es thirteen Boeing -#-s an' si4 ir1us 3#5-355s an' nineteen ir1us 3#5-+55s. :he air!ine announ"e' in Mar"h 255the or'er o/ 1) o/ the -2--3 .ream!iners , 0ith o$tions on or'ering another eight -2--3 an' $ur"hase rights on a /urther 25 air"ra/t. :he or'er 0i!! see Virgin t!anti" ta&e 'e!i8er% o/ its ne0 $!anes 1et0een 2511 an' 251#. :he air!ine a!so has si4 325 air"ra/t on or'er unti! 2513.

1.( Com an! )trateg! *o ho0 'oes Virgin t!anti" remain so su""ess/u!? One hint as to the reason /or the air!ineEs !ong-term $ro/ita1i!it% is its strategi" $!anning an' im$!ementation. :he "om$an%Es organiLationa! stru"ture the "ore o/ its strateg% is 1ase' on /our $rin"i$!esF (1) En"ouragement o/ in'e$en'en"e (2) !ong-term a$$roa"h (3) Com$etiti8e "ost !e8e!s (#) !o%a! "ustomer !! o/ managementEs e//orts in 1ui!'ing the "om$an% stem /rom some as$e"t o/ these genera! organiLationa! 8a!ues7 an' this 'ire"tion gi8es Virgin t!anti" the momentum it nee's to su""ee' as an internationa! /irm. s /ar as the 8a!ue o/ in'e$en'en"e goes7 Virgin t!anti" em$hasiLes this "on"e$t as a

Part o/ its o8era!! a$$ea! as an air!ine. 6ts mission 8a!ues o/ "aring7 honest%7 8a!ue7 /un7 an' 6nno8ati8eness re/!e"ts the in'i8i'ua! as the /o"a! $oint /or a!! its energies. 6n /a"t7

Ri"har' BransonEs "reati8it% is 0hat has /un'amenta!!% 'ri8en the Virgin i'ea. Be"ause so mu"h o/ the Com$an%Es a$$ea! stems /rom its inno8ati8e a$$roa"h to air!ine tra8e!7 its im$!emente' strateg% Mat"hes the theor% set 1% Branson. :he atmos$here in the air$orts an' in- /!ight re/!e"ts this Creati8it% an' 'i//erentiates Virgin t!anti" /rom other air!ines.

Virgin t!anti" has se8era! strengths as a "om$an% an' $otentia! o$$ortunities /or gro0th7 as sho0n in the *WO: ana!%sis 1e!o0F )trengths .i//erentiation 1ase' on 8a!ue7 ser8i"e7 an' $ri"e ?ni8ersa! a$$ea! to 0i'e 8ariet% o/ "ustomers Esta1!ishe' an' high!%-re"ogniLa1!e 1ran' image 6nno8ati8e /eatures that 'istinguish the "om$an% name :a!ente' management team (i.e. Branson) *trong7 0e!!-'esigne' organiLationa! stru"ture

Wea"nesses O *ome un'er'e8e!o$e' "hanne!s (i.e. Premium E"onom%) ?n'er'e8e!o$e' 'istri1ution s%stem Mar&eting $rimari!% /o"use' on ;on'on mar&et 6ne//e"ti8e uti!iLation o/ a!!ian"es an' $artnershi$s

ortunities 6n"rease' tourism 0ith the im$ro8ement o/ the e"onom% !!ian"es an' mergers (the /uture o/ the in'ustr%) ir!ine gro0th $ost-re"o8er% 1e"ause o/ the trimming o/ the air!ines sin"e 2555 ;atin meri"a as a !o0-terror7 high gro0th $otentia! mar&et 225 air$orts 0ithin Euro$e (gro0th o$$ortunit%) Ao maBor "arriers 'ominating 6ntra-E? a8iation mar&et =erman%7 *$ain7 an' Kran"e (ne4t !argest mar&ets a/ter ?@) sian mar&et e4$e"tation (/astest gro0ing o8er the ne4t ten %ears)

*hreats :errorism !ea'ing to 'e"rease' tourism an' "on/i'en"e in the air!ines (ea!th $ro1!ems (su"h as * R*) Regu!ation $ro1!em /or air!ines aiming to merge or gro0 (ie. antitrust !egis!ation) On-going su$$!% sur$!us resu!ting in maintaine' !o0 re8enues 6nternet 1oo&ing a!!o0ing greater $ri"e trans$aren"% 6m$ro8e' te!e"ommuni"ations (i.e. 8i'eo "on/eren"ing) 'e"reasing 1usiness tra8e!

2.0

E+Commerce )trategies

Virgin t!anti" air!ines ha8e o8er the %ears e4$an'e' its mar&et rea"h an' "hanne!s using on !ine strategies. :hese ha8e ena1!e' them to re'u"e their o$erationa! "ost 1% e!iminating "ost!% "hanne! "ommissions7 et". !so it has ena1!e' them to e4$!oit "on8enien"e an' $ro8i'e more in/ormation /or "onsumers. :he% ha8e 'one this 1% main!% /o"using on their on !ine ti"&eting s%stems an' other re!ate' s%stems 8ia 000.8irgin-at!anti"."om 0e1 site. Ko!!o0ing are the e-"ommer"e strategies use' 1% 8irgin t!anti" air!ines9 2.1 )teering on line tra&&ic to Virgin Atlantic We, )ite + n% e-"ommer"e 0e1 site shou!' /irst /o"us on getting "ustomers to 8isit their 0e1 site. n' a!so $romote their 0e1 site 0hen "ustomers sear"h on!ine 1% 'i//erentiating /rom "om$etition. Ko!!o0ing strategies has 1een use' to steer on !ine tra//i" /rom the target mar&et to 000.8irgin-at!anti"."om.
lacement + Virgin t!anti" ha8e su""ess/u!!% $!a"e' its 0e1 site on main sear"h engines su"h as =oog!e7 %ahoo an' M*A. Most!% the 8irgin t!anti" 0e1 site a$$ears on the /irst /e0 sear"h resu!ts 0hen sear"hing /or /!ights /rom Euro$e to ?* . 2.1.1 )earch Engine 2.1.2 -egotiation lin"s %ith other sites , Virgin

t!anti" ha8e a!so negotiate' !in&s 0ith other 0e1 sites re!ate' to the tra8e! an' tourism in'ustr%. :hese sites ha8e man% air!ines or tra8e! so!ution $ro8i'ers an' "ustomers "an sear"h an' "om$are air /are 0ith other air!ines. (o0e8er Virgin t!anti" ha8e $!a"e' its 0e1 on se8era! $o$u!ar tra8e! sites a!!o0ing it to "om$ete 0ith maBor air!ines in the trans t!anti" route su"h as meri"an ir!ines7 British ir0a%s7 ?nite' air!ines7 .e!ta an' Continenta! air!ines. :he% ha8e $!a"e' the !in&s an' in/ormation on $o$u!ar tra8e! sites su"h as 000."hea$/!ights."o.u&7 000.si'este$."om7 an' 000.%ahootra8e!."om 0hi"h are use' 1% the target mar&et in :rans t!anti" route. Re/er a$$en'i4 , 2.1.2
romotions , Virgin t!anti" ha8e a!so use' on!ine 1ran'ing on se8era! sites an' a!so ha8e ena1!e' $romotions in their 0e1 site to en"ourage "ustomers to $ur"hase their ti"&et on !ine. :his is a strateg% use' 1% them to get "ustomers 0ho Bust 8isit their site to sear"h in/ormation to go ahea' an' ma&e the 1oo&ing an' $a%. 2.1.3 on line ,ran#ing an#

Re/er a$$en'i4 , 2.1.3 2.2 Acting as an on-line catalogue , Virgin t!anti" 0e1 site is 8er% in/ormati8e an' 8er% "om$rehensi8e , there is un!i&e!% to 1e a Duestion that isnEt ans0ere' here. :here are $ages e4$!aining in-/!ight entertainment7 s$e"ia! $ro8isions /or "hi!'ren7 air$ort $ar&ing7 1aggage a!!o0an"es7 an' s$e"ia! assistan"e /or the 'isa1!e' an' e8en ta4-/ree sho$$ing. Re/er a$$en'i4 , 2.2

2.3 Com rehensi.e on-line tools/s!stems to esta,lish the e-commerce %e, site +

Virgin t!anti" 0e1 site has ena1!e' 8arious t%$es o/ e-"ommer"e too!s an' s%stems to o//er greater "ustomer "on8enien"e an' in/ormation to "ustomers. Aot on!% /or the "ustomers to 1oo& ti"&ets7 8a"ations7 manage /!ights an' "he"& in on!ine 1ut a!so s$earhea'ing the inno8ation in e-"ommer"e a"ti8ities 1% ta&ing it u$ to /!ight !e8e! 3)5 (3)555 /t a!titu'e) 0here "ustomers $ur"hase on !ine 0hi!e in the air "ra/t. Ko!!o0ing are the e-"ommer"e too!sMs%stems use' 1% Virgin t!anti".
2.3.1 Chec"ing 'light )che#ules an# 'light )tatus , Virgin

t!anti" 0e1 site ha8e ena1!e' a sim$!e metho' /or "ustomers to sear"h /or /!ights 1% Bust entering the route the% are tra8e!ing an' the 'ate o/ 'e$arture or return. :his has ena1!e' "ustomer to "on8enient!% "he"& 0hether there are an% /!ights 0hi"h the% "an use /or their tri$ /or a $arti"u!ar 'a%. n' then a""or'ing!% $!an their tri$ an' ma&e the 1oo&ing !ater. nother s%stem 0hi"h the% ha8e ena1!e' is the /!ight status "he"&ing too!. :his a!!o0s the user to "he"& 0hether there an% "an"e!!ations an' 'e!a%s in /!ights an' a!so a /rien' or a !o8e' one 0ho 0i!! $i"& a "ustomer /rom the air$ort "an 8ie0 the /!ight status on !ine an' 1e their on time.

Pre8ie0 o/ the K!ight status an' K!ight *"he'u!e inter/a"e ,

2.3.2 Boo"ing a &light on line , :his ena1!es the "ustomers to sim$!% 1oo& a /!ight 0hi!e

sta%ing at home or o//i"e. Virgin

t!anti" on !ine /!ight 1oo&ing s%stem is a user /rien'!% an'

"on8enient an' it $ro8i'es great 'ea! o/ in/ormation 0ith regar' to the /!ight. :his $ro"ess has near!% e!iminate' the tra8e! agent /rom the su$$!% "hain7 an' has there1% re'u"e' "osts. On !ine 1oo&ing s%stem is a sim$!e - ste$ $ro"ess 0hi"h "o8ers9
)earch 'lights )elect 'light )elect )eat Enter *ra.elers in&ormation 0a!ment Re.ie% Boo"ing Manage 1tinerar!.

Re/er a$$en'i4 2.3.2 /or /!ight 1oo&ing $ro"ess

Pre8ie0 o/ the on-!ine 1oo&ing s%stem inter/a"e ,

2.3.3 Online Boo"ing o& $otels an# Vacations + Virgin

t!anti" 'oesnEt on!% se!! air ti"&ets. 6t has teame' u$ 0ith Virgin (o!i'a%s 0hi"h is a *B? o/ the Virgin =rou$ an' !in&e' u$ the on !ine hote! an' 8a"ation 1oo&ing s%stem to Virgin t!anti" On !ine /!ight 1oo&ing s%stem. :his

has ena1!e' Virgin t!anti" to o//er a 1un'!e' o//er to its "ustomers an' to a"hie8e a "om$etitor a'8antage in $ro8i'ing the tota! tra8e! so!ution to "ustomers. When a "ustomer sear"h an' se!e"t a /!ight itE!! gi8e the hote!s 0hi"h are a8ai!a1!e in the tra8e!erEs 'estination "ountr%M"it%. :hen the "ustomer "an 1ro0se through the hote!s an' se!e"t a hote! an' then se!e"t the room t%$e a""or'ing to his $re/eren"e. n' them itE!! gi8e %ou a!! $ossi1!e o$tions to 'o i/ %ou are in a 8a"ation. :hese in"!u'es se!e"ting sightseeing tours7 8isits to entertainment $ar&s7 .isne%!an' 1oo&ings7 museums an' a!so se!e"ting an' 1oo&ing o/ tra8e! o$tions su"h as train7 ta4i7 hire' "ars on"e %ou get to the 'estination. 6n 'oing this Virgin t!anti" ha8e su""ess/u!!% integrate' the tota! 8a!ue "hain o/ su$$!iers or the in1oun' !ogisti"s "om$onent o/ a tra8e! agent. :here/ore no0 the 8irgin t!anti" air!ines o$erate not on!% in the air!ine 1usiness 1ut the% are $ro8i'ing /u!!% /!e'ge' tra8e! so!utions. B% integrating these a"ti8ities on!ine7 ha8e ena1!e' Virgin t!anti" to ease out the o$erations $ro"ess o/ the 8a!ue "hain in the tra8e! agen"% 1usiness 1% o$erating in automate' a!erts en8ironment to ea"h su$$!ier (hote!7 trains7 !eisure). !so this automate' on!ine tra8e! agen"% stru"ture has ena1!e' them to re'u"e "ost signi/i"ant!% 0hen "om$aring 0ith a $h%si"a! tra8e! agen"% 1usiness.

2.3.3 Managing the &light on-line + :his e-"ommer"e a"ti8it% $ro8i'es "ustomers to se!e"t

an' manage 0hat the% nee' an' 0hat the% 0ant to 'o in the /!ight. :his sim$!e inter/a"e is

$ro8i'e' to "ustomer on !ine 0here the% "an 8ie0 the a"ti8ities a8ai!a1!e /or them 0hi!e at /!ight. Customers nee' to sim$!% !ogin to this inter/a"e using Nmanage %our /!ightE !in& o/ the 0e1 site an' enter the 1oo&ing re/eren"e num1er an' the /!ight num1er. :his he!$s "ustomers to9

Meals - =o through the menu an' se!e"t 0hat mea!s the% nee' to ha8e on /!ight. Mo.ies / Entertainment - Bro0se through the mo8ie 'ata 1ase an' se!e"t 0hi"h

mo8ies the% 0ant 0at"h.

2ames - *e!e"t the on 1oar' games an' ha8e it a8ai!a1!e on %our $ersona! s"reen

(main!% /or &i's 0here $arents "an se!e"t on!ine)

Maga3ines , What magaLine 0hi"h the% $re/er /or rea'ing. (eg , Kortune7 1usiness

0ee&7 Kashion et")

're4uent &l!er #etails , Customers "an enter their G8irgin /!ight "!u1H /reDuent /!%er

'etai!s an' earn an' re'eem mi!es 0hi!e managing the /!ight.
Enter a#.ance# assenger re4uirements , Customer a!so "an enter their s$e"ia!

nee's su"h as una""om$anie' minors7 'isa1!e' $eo$!e7 $eo$!e 0ith s$e"ia! hea!th reDuirements7 grou$s o/ 15O an' e8en $ets 0hi!e at /!ight 0here the 8irgin "re0 is $rior in/orme' an' ta&en "are o/ a!! reDuirements.

2.( Con.enient chec"-in

rocess5s su

orte# ,! e-commerce +

Virgin t!anti" ha8e a!so re8o!utioniLe' the "he"&-in $ro"ess o/ the air !ine 1% using its e"ommer"e strateg% 0hi"h has a'' s%nergies to 1oth $ro"essEs (e-"ommer"e P "he"& in). 6t has ena1!e' "he"&-in metho's 8ia e-"ommer"e an' on !ine too!s in 'i//erent 0a%s to enhan"e "ustomer "on8enien"e an' sa8e time /or the "onsumers.
2.(.1 On-line chec" in , ?sing this too! "ustomers ha8e the "on8enien"e o/ a8oi'ing

2.(.2

"he"&-in DueEs at he air$ort. "ustomer "an !og in to the on !ine "he"& in inter/a"e an' enter their ti"&et "on/irmation num1er an' /!ight an' /i!! a!! ne"essar% 'etai!s. :hen the "ustomers "an 'ire"t!% go to the 1ag 'ro$ se"tion o/ the air$ort7 'ro$ the 1ags7 "o!!e"t the 1oar'ing $ass an' 1oar' the air "ra/t. 6ios" chec" in , ?sing &ios&s at the air$orts "ustomers "an "he"& in using their ti"&et re/eren"e num1er or the G/!ight "!u1H "ar'. :hen hea' to the 1ag 'ro$ se"tion.
7isne! chec"-in , Customers a!so "an "he"&-in /rom &ios&s !o"ate' at .isne%

2.(.3

theme $ar&s an' ha8e more time to enBo% the 8a"ation.

2.(.(

7o%n to%n chec"-in , 6n (ong @ong Virgin

t!anti" intro'u"e' the "he"& in $ro"ess in si'e air$ort e4$ress trains 0hi"h the "ustomers 0i!! 1e tra8e!ing to air $ort. On !ine &ios&s !o"ate' in the trains are use' so that the "ustomers "an 'ire"t!% hea' to 1ag 'ro$ /rom the train.

2.8 E-commerce at 'light le.el 380 938000 &t altitu#e: , Virgin

t!anti" ha8e s$ear hea'e' inno8ation in the air !ine in'ustr%. :his has 1een su$$orte' 1% the attitu'e o/ the 8irgin grou$ 0hi"h a!0a%s inno8ates in or'er to o//er greater "ustomer satis/a"tion an' the e4$ertise o/ *inga$ore air!ines 0hi"h ho!'s #3> sta&e o/ the air!ine. Virgin t!anti" is one o/ the 8er% /irst air!ines to intro'u"e the e-"ommer"e a"ti8it% on 1oar' air "ra/ts 0hi"h the "ustomers are a!!o0e' to $ur"hase $ro'u"ts an' ser8i"es on 1oar'.
2.8.1 urchasing o& meals , Customers "an 1ro0se through their $ersona! seat s"reenMs%stem /or the menu an' se!e"t the a''itiona! 'rin&s7 'esserts7 mea!s the% nee' an' or'er on!ine using a "re'it "ar'. :hen the a!erts 0i!! 1e sent to the "re0 an' the or'er 0i!! 1e 'e!i8ere' to the seat. ;RE7< in &light entertainment , Virgin t!anti"s ne0 in /!ight entertainment s%stem a!!o0 %ou to 1ro0se an' se!e"t $remium "ontent that is not a8ai!a1!e /or /ree 8ie0 on the /!ight entertainment s%stem. *o that the "ustomers "an se!e"t /rom the $a%-$er 8ie0 mo8ies an' "hanne!s an' $a% /or it on !ine using "re'it "ar'. On ,oar# on line

2.8.2

2.8.3

t!anti" ha8e a!so ena1!e' its seat s"reenMs%stem to se!! its mer"han'ise an' other items. :his on !ine $ur"hasing $ro'u"ts in"!u'e mer"han'ise su"h as 8irgin t!anti" 1ran'e' air"ra/t s"a!e mo'e!s7 t-shirts7 "a$s7 so/t to%s an' a!so other $ro'u"ts su"h as Ba"&ets7 "ameraEs.
On ,oar# + On line urchasing o& merchan#ise an#

ro#ucts , Virgin

:he /uture strateg% /or this inno8ation shou!' 1e to !in& u$ su$er mar&et an' 'e$artment stores to this s%stem 0hi"h the "ustomers "an 1ro0se an' $ur"hase items su"h as essentia!s an' "!othing 0hi!e in the air "ra/t an' 0hi"h 0i!! 1e 'e!i8ere' to their homeMhote! a''ress or to "o!!e"t at the air $ort on"e the% !an'. :his 0i!! reDuire a great 'egree o/ su$$!% "hain management an' integration.
Management .ia e-commerce + Virgin t!anti" has a!so $ioneere' the "ustomer re!ationshi$ management 8ia e-"ommer"e /un"tion. !ong 0ith the e"ommer"e /un"tion the% ha8e use' an' integrate' the 'ata an' in/ormation a8ai!a1!e on ea"h "ustomer through their !o%a!t% $rogram G/!ight C!u1H using the /o!!o0ing metho's. 2.= Customer Relationshi 2.=.1 *argete# 0romotions , ?sing

2.=.2

the 'ata a8ai!a1!e on /!ight "!u17 targete' $romotions "an 1e "arrie' out on a "ustomerEs /reDuent route. :his has 1een 'one using the on !ine /!ight management an' 1oo&ing s%stems. When a "ustomer !ogin to 1oo& a /!ight a/ter entering the /!ight "!u1 num1er it 0i!! gi8e a!! the 'is"ounts an' $romotions a8ai!a1!e on the route se!e"te' an' hote!s7 8a"ations et". 0riorit! ,oo"ing/,oar#ing , ?sing the 'ata on /!ight "!u1 the% "an $ro8i'e !o%a! "ustomers 0ith $riorit% 1oar'ing an' 1oo&ing.

2.=.3

)uggestion s!stems + :his 'ata ha8e ena1!e' 8irgin

t!anti" to suggest $ro'u"ts an' ser8i"es to "ustomer. 'o$ting /rom maLon an' e-1a% the 8irgin t!anti" 0e1 site 0i!! suggest the hote!s o/ a $arti"u!ar 'estination or a $re/erre' /!ight time7 seat7 mea! a""or'ing to "ustomerEs $re8ious 1oo&ings.

3.0

7esign o& the %%%..irgin-atlantic.com %e, site

(ere 0e 0i!! !oo& at e8a!uating the Virgin t!anti" 0e1 site. 6n e8a!uating this 0e1 site7 s$e"ia!!% 1eing a 1usiness to "ustomer (B2C) 0e1 site the /o!!o0ing "riteria 0i!! 1e use'. 3.1 Content an# #esign 3.2 1nteracti.it! an# user &rien#liness 3.3 *ransaction )ecurit! 3.( 0er&ormance 3.8 Encouragement o& re eat urchase> cross sell an# u sell.

3.1 Content an# 7esign + :he site is 8er% "om$rehensi8e7 there is un!i&e!% to 1e a Duestion that isnEt ans0ere' here. :here are $ages e4$!aining in-/!ight entertainment7 s$e"ia! $ro8isions /or "hi!'ren7 air$ort $ar&ing7 1aggage a!!o0an"es7 s$e"ia! assistan"e /or the 'isa1!e' an' e8en ta4-/ree sho$$ing. 6n a''ition to the usua! "or$orate in/ormation the Virgin site a!!o0s users to 8ie0 routes7 /!ight s"he'u!es7 an' air"ra/t !a%out7 1e/ore $ur"hasing a ti"&et. On"e the itinerar% is in $!a"e7 %ou "an e8en "he"& in on!ine. !! o/ this is o//ere' 0ith a sim$!e !a%out. :he te4t is "on"ise7 "o!ors are strong an' /onts are "!ear. 6n /a"t7 the site is remar&a1!% eas% to na8igate. :here are /i!e-ta1 gui'es throughout7 "!ari/%ing %our $osition , a!though it "ou!' use a more o18ious 0a% GhomeH a/ter se8era! !a%ers o/ s$e"i/i" 6nDuir%. :he site manages to /ee! 8er% st%!ish o8era!!7 'es$ite the !a"& o/ st%!iLe' images an' greets the 8isitors 0ith the attitu'e o/ 8irgin t!anti" , G(e!!o =orgeousH .

3.2 1nteracti.it! an# user &rien#liness + !oo& at VirginEs site re8ea!s a great 'ea! o/ attention to /un"tiona!it%7 0hi"h he!$s 1ri'ge the "ustomer ser8i"e ga$ "reate' 1% the !a"& o/ an a"tua! tra8e! agent. :his has 1een 'one using on-!ine ta"ti"s su"h as suggestion s%stems. On"e a "ustomer "!i"&s on a 8a"ation it $ro8i'es %ou the hote!s 0hi"h are a8ai!a1!e an' then it a!so $ro8i'es the G8irgin t!anti"Es $i"&H 0hi"h suggests a hote! in the 'estination. :his suggestion is 'one 1ase' on the seat "!ass %ou 1oo& (0hi"h /ore"asts %our 'is$osa1!e in"ome) an' %our $re8ious 1oo&ing 'etai!s. ?ser /rien'!iness o/ the site is a!so high 'ue to 8arious ta"ti"s a'o$te' 1% Virgin t!anti". One su"h ta"ti" is the use o/ ta1 gui'es to in/orm %our $osition. Kor e4am$!e in the on !ine 1oo&ing $ro"ess it 'is$!a%s the - ste$s "!ear!% on the ta1 gui'es an' %our $osition. :he /ee'1a"& /orms $o$$ing out 0hi!e on the site a!so in"rease the tangi1i!it% o/ the ser8i"e an' the intera"ti8it% is sho0n to0ar's the "ustomer. 3.3 *ransaction )ecurit! :ransa"tion se"urit% o/ this 0e1 site stan's on a 8er% higher s"a!e. Es$e"ia!!% 1eing an e"ommer"e 0e1 site 0hi"h 'ea!s in transa"tions o/ high 8a!ue this !e8e! o/ se"urit% an a'8antage. Virgin t!anti" 0e1 site $a%ment gate 0a% is through "on/irms the !e8e! o/ se"urit% o/ the 0e1 site. meri"an E4$ress Ban&7 0hi"h a!so

s mentione' on the 0e1 site7 it use a *e"ure ser8er so/t0are (**;) 0hi"h is the in'ustr% stan'ar' an' among the 1est so/t0are a8ai!a1!e to'a% /or se"ure "ommer"e transa"tions. **; en"r%$ts a!! o/ %our $ersona! in/ormation7 in"!u'ing "re'it "ar' num1er7 name7 an' a''ress7 so that it "annot 1e rea' as the in/ormation tra8e!s o8er the 6nternet. Pri8a"% $o!i"% $u1!ishe' on the 0e1 site a!so "on/irms the use o/ "ustomer 'ata in a se"ure 0a%. 3.( 0er&ormance Per/orman"e o/ the 0e1 site is at higher !e8e!s in terms o/ s$ee' o/ !oa'ing 0e1 $ages7 transa"tion $ro"essing an' in/ormation $ro"essing. Es$e"ia!!% the Pages !oa' 8er% Dui"&!% , $ossi1!% 1e"ause the 'esign is re/reshing!% un"!uttere' 0ith $hotogra$hs.

E8en 0hen a""esse' /rom *ri ;an&a 0hi"h is not a mar&et 0here Virgin t!anti" o$erates7 it is e8i'ent that the s$ee' an' !oa'ing o/ the 0e1 site is 8er% /ast e8en 0hen "om$aring 0ith !o"a! air!ines as 0e!!. :here/ore it "an 1e assume' that the $er/orman"e /rom its mar&ets su"h as ?@7 ?* 0i!! 1e mu"h greater.

3.8 Encouragement o& re eat

Encouragement &or re eat

urchase/Cross )elling ? @

)elling +

urchase , On!ine $romotions 0i!! $ro8i'e $romotiona! an' 'is"ount "o'es 0hi"h "an 1e use' in the ne4t transa"tion or the 1oo&ing. :hese 'is"ounts en"ourage "ustomers to "ome 1a"& again an' $ur"hase again. n' in the /irst ta1 o/ the 1oo&ing inter/a"e there is an area to enter the $romotiona! "o'e 0hi"h 0i!! gi8e "on/i'en"e in these on !ine $romotions.

Cross )elling , *igni/i"ant !e8e! o/ "ross se!!ing is 'one through the 0e1 site in terms o/

integrating the 0ho!e 8a"ation an' se!!ing a 1un'!e' $ro'u"t. On"e a "ustomer se!e"ts on!% a /!ight7 it 'is$!a%s the suggeste' hote!s in the 'estination as 0e!!. :here/ore the "ustomers are en"ourage' to 1oo& the hote! an' e4tras 8ia the same site.

)elling + 6n terms o/ u$ se!!ing Virgin t!anti" uses its suggestion s%stem to en"ourage "ustomers to u$gra'e their seats. Kor e4am$!e it gi8es $o$ out messages 0hen an e"onom% "!ass seat is se!e"te' in/orming G%ou "an u$gra'e to /irst "!ass Bust /or Q444 more. @

(.0 O-A1-E BRA-71-2

R t Virgin7 0e ha8e a strateg% o/ using the "re'i1i!it% o/ our 1ran' to "ha!!enge the 'ominant $!a%ers in a range o/ in'ustries 0here 0e 1e!ie8e the "onsumer is not getting 8a!ue /or mone%H. -*ir Ri"har' BransonE

6rres$e"ti8e o/ $ro'u"t<s $resen"e on!ine7 1ran'ing $!a%s an integra! $art 1ehin' its su""ess. s in rea! !i/e s"enarios7 %our 1ran' is %our i'entit% on the 0e1 an' 'i//erentiates %ou /rom %our "om$etitors. *in"e its inaugura! /!ight on Cune 227 132#7 Virgin t!anti" has $ositione' itse!/ as g!o1a! 1ran' /i4ate' on gra11ing mar&et share /rom the "om$etition. Whi!e !arge "arriers !i&e British ir0a%s an' meri"an ir!ines $ai' !itt!e attention to the un&no0n Virgin7 Virgin !oo&e' at the entire "om$etiti8e !an's"a$e an' ha' great un'erstan'ing o/ 0here the o$$ortunit% e4iste'. *in"e the mi' 25Es the tren' in the air!ine 1usiness has 1een to "ut "osts. :his o18ious!% has 1een aggra8ate' 1% the =u!/ War7 3M117 an' surging /ue! "osts. Rather than Bum$ing on the Gsa8ing their 0a% to $ro/ita1i!it%H 7 Ri"har' Branson an' Virgin t!anti" "hose a 'i//erent ta"t in res$onse to a tur1u!ent an' un$re'i"ta1!e mar&et , "reate a /irst-"!ass air!ine /o"use' on $ro8i'ing $assengers 0ith /un7 "!ass7 an' "om/ort. Virgin t!anti" 0ante' to ma&e /!%ing /un an' enBo%a1!e again7 treating their "ustomers as guests rather than "att!e7 as the maBorit% o/ the in'ustr% has 'one. Virgin t!anti" has $ioneere' a range o/ inno8ations setting ne0 stan'ar's o/ ser8i"e7 0hi"h its "om$etitors ha8e su1seDuent!% sought to /o!!o0. Virgin t!anti" has intro'u"e' a string o/ /irsts in"!u'ing in'i8i'ua! seat-1a"& te!e8isions /or a!! e"onom% $assengers an' the intro'u"tion o/ automati" 'e/i1ri!!ators. .es$ite Virgin t!anti"<s gro0th the ser8i"e sti!! remains "ustomer 'ri8en 0ith an em$hasis on 8a!ue /or mone%7 Dua!it%7 /un an' inno8ation. (.1 Bran# Values Virgin t!anti" stri8es to $ro8i'e the 1est $ossi1!e ser8i"e at the 1est $ossi1!e 8a!ue. 6t is a 'istin"ti8e7 /un-!o8ing an' inno8ati8e 1ran'7 0hi"h is a'mire' /or its inte!!igen"e an' integrit%. Cu'ging /rom the resu!ts o/ a $o!!s "on'u"te' 1% resear"h agen"ies the $u1!i" a!so asso"iates it 0ith /rien'!iness an' high Dua!it%. Virgin t!anti" a!so re"ent!% 0on an AOP Wor!' Business *u$er1ran's 0ar' /or the <1ran' most $er"ei8e' to &ee$ its $romises<. (.2 )trategies to ,uil# its Bran#

6n or'er to NenterE 1usinesses these main tou"h $oints must 1e a''resse', image7 e4$erien"e or e4$e"tation , 0hi"h is 0h% 1ran'7 $ro'u"t an' re$utation are a!! a8enues o/ eDua! status 0hen it "omes to attra"ting ne0 "ustomers an' maintaining the !o%a!t% o/ e4isting users. Virgin t!anti" &no0s 0hat the 1asi" $romise o/ their on!ine 1ran' is 1% 0hi"h the% "an 1e measure' an' Bu'ge'. :he% ha8e "hosen to 'e!i8er the $romise 1etter an' more "onsistent!% than their "om$etitors an' ma&e sure it stan's out /rom the rest o/ the $a"&. :he% 'o not a!!o0 their image to /a!! 1ehin' or run ahea' o/ the 1usinessEs true "a$a1i!ities or strateg%. Virgin t!anti" has un'erstoo' that their on!ine 1ran' mar&eting "ontinues e8en a/ter the sa!e is o8er. :here/ore7 1ui!'ing 'ia!ogue 0ith their "ustomers7 o$inion ma&ers an' in8estors7 is essentia! /or the 'e8e!o$ment o/ the Virgin t!anti" 1ran'. .es$ite Virgin t!anti"<s gro0th the ser8i"e sti!! remains "ustomer 'ri8en 0ith an em$hasis on 8a!ue /or mone%7 Dua!it%7 /un an' inno8ation e8en a/ter near!% 2) %ears o/ its in"e$tion.
)ome o& the ste s ta"en to &urther strengthen their ,ran# is as &ollo%sB

On .e"em1er 25th 1333 Ri"har' Branson signe' an agreement to se!! a #3> sta&e o/ Virgin t!anti" to *inga$ore ir!ines to /orm a g!o1a! $artnershi$. :he "ost o/ the transa"tion to *inga$ore ir!ines 0as I+55.2) mi!!ion7 0hi"h in"!u'e' a "a$ita! inBe"tion o/ I#3 mi!!ion an' 8a!ues Virgin t!anti" at a minimum o/ I1.22) 1i!!ion. :he 'ea! 0as /ina!iLe' in ear!% 2555. Virgin t!anti" has $ioneere' a range o/ inno8ations setting ne0 stan'ar's o/ ser8i"e7 0hi"h its "om$etitors ha8e su1seDuent!% sought to /o!!o0. :he% ha8e intro'u"e' a string o/ /irsts in"!u'ing in'i8i'ua! seat-1a"& te!e8isions /or a!! e"onom% $assengers an' the intro'u"tion o/ automati" 'e/i1ri!!ators. Visitors remem1er on!ine stores 1% their sho$$ing e4$erien"e. Virgin t!anti" has 1ui!t on this uniDue sho$$ing e4$erien"e 1% using inno8ati8e 0e1 site tem$!ate 0ith s$e"ia! em$hasis on na8igation7 $ro'u"t 'is$!a% an' $ro'u"t 'es"ri$tion. *in"e images "on8e% more than 0or's7 se!/-e4$!anator% images ha8e 1e"ome the maBor 'i//erentiation /a"tor in their on!ine 1ran'ing ta"ti"s. :he% are &no0n as the !ea'ers in on!ine tra8e! agen"% 'ue to the sim$!i"it% an' straight/or0ar'ness o/ their ser8i"es on!ine. *in"e the internet is an i'ea! route to mar&et themse!8es7 es$e"ia!!% in the air!ine in'ustr%7 Virgin t!anti" has "a$ita!iLe' on the "ost 1ene/it o$$ortunities that ha8e arisen as a resu!t are a1!e to o//er some o/ the "hea$est /!ights to "ustomers through their on!ine 1oo&ing ser8i"es. B% a''ing 1ran' re!e8ant s$onsore' !in&s to sear"h engines su"h as =oog!e7 the% ha8e 1een a1!e to rea"h a !arge $ortion o/ "ustomer a"ross the g!o1e an' /urther "reate 1ran' a0areness. :he greatest an' most 0e!! &no0n a'8ertisement /or Virgin is Ri"har' Branson himse!/. Branson is o/ten $er"ei8e' as the "onsumer<s hero7 an entre$reneur o$erating in a st%!e a!! o/ his o0n7 an' Virgin<s 1ran' 8a!ues emanate /rom his $ersona!it%. t the same time as 1eing one o/ Britain<s most a'mire' 1usinessmen7 Ri"har' Branson<s 'are'e8i! anti"s7 su"h as 1a!!ooning a"ross the t!anti"7 ha8e gi8en the Virgin 1ran' a''itiona! $u1!i"it%.

Branson a!so &ee$s a shre0' e%e on $romotiona! o$$ortunities. Kor e4am$!e 0hen he hear' o/ British ir0a%s< 'e"ision to remo8e the ?nion Ca"& /rom their $!ane e4teriors7 he "a$ita!ise' on the "hange 1% intro'u"ing the ?nion Ca"& onto Virgin $!anes. Virgin t!anti" has $ro8e' an astute a'8ertiser o8er the %ears. 6ts !ogo is high!ighte' on a!! its goo's an' ser8i"es an' is a high!% $rote"te' $ro$ert%. Virgin t!anti" has im$!emente' an integrate' me'ia strateg% to $romote its 1ran's7 in"!u'ing te!e8ision7 ne0s$a$ers7 $osters7 $romotions7 'ire"t mai! an' the internet7 o/ten to 0i'e a""!aim.

(.3 Achie.ements :he 1ran'<s a"hie8ements ha8e 1een re"ogniLe' 1% a num1er o/ $restigious a0ar' s"hemes. 6n re"ent %ears the air!ine has 0on a huge num1er o/ 0e!! res$e"te' a0ar's in"!u'ingF :he Best ;ong (au! Business 6n *e$tem1er 255- Virgin :ra'e =aLette 0ar's. ir!ine at the Business :ra8e! 0ar's in 2552.

t!anti" 0on Airline o& the Cear - Business at the :ra8e!

Virgin t!anti" 0on t0o o/ the to$ "ategories at the Business :ra8e!!er 0ar's 255-F Best Business Class an' Best 0remium Econom! a0ar's. :he t0o a0ar's sho0 that Virgin t!anti"<s inno8ati8e $ro'u"ts7 in ?$$er C!ass an' Premium E"onom%7 are the "!ear /a8ourites /or !ong-hau! tra8e!!ers. :he Best British ir!ine o/ the Jear in 255+. 0ar's /or <the 1ran' that

6n 25537 Virgin t!anti" 0on the Business *u$er 1ran's most 8a!ues its em$!o%ees<.

6n 25527 the air!ine 0on an arra% o/ a0ar's in"!u'ing Best Business air!ine at Con'S Aast :ra8e!!er 0ar's9 :he =uar'ian an' O1ser8er 0ar's9 Best :ransat!anti" ir!ine at the :ra8e! Wee&!% 0ar's. 6n 2551 Virgin t!anti" 0on O = ir!ine o/ the Jear. 6n a''ition7 the 1ran' has 1een "onsistent!% 8ote' as a *u$er 1ran' an' in 2551 0as gi8en Coo! Bran' ;ea'er status 1% the *u$er 1ran's organiLation. rea! 0in7

Virgin t!anti" 1oasts o/ a strong 1ran'7 strong $ro'u"t7 an' strong re$utation. 0in7 0in situation7 an' a $rime e4am$!e o/ a true s%nergeti" 1usiness.

8.0 A

en#iD

en#iD 2.1.2

en#iD 2.1.3

en#iD 2.2

en#iD 2.3.2

)ources o& in&ormation

000.1ran're$u1!i"."om 000.ne0s/!ash.org 000.8irgin-at!anti"."om 000.1ran'"hanne!."om Virgin t!anti" e4$erien"e' 1% Char!otte Cane .%son April 1, 2002 issue

000.0i&i$e'ia.org