virgin atlantic - final

8/12/2019 Virgin Atlantic - Final

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Introduction

By Arinda Jayawardena


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What is E-Commerce

Electronic commerce, commonly known as e-commerce, consists ofthe buying and selling of products or services over electronicsystems such as the Internet and other computer networks.

Electronic commerce that is mostly conducted betweenbusinesses and consumers, on the other hand, is referred to asbusiness-to-consumer or B2C. This is the type of electroniccommerce conducted by companies such as Virgin Atlantic

Electronic commerce is generally considered to be the salesaspect of e-business. It also consists of the exchange of data tofacilitate the financing and payment aspects of the businesstransactions.


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What is Business-to-Consumer or B2C

B2C describes activities of businesses serving end consumers with productsand / or services.


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Company


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Virgin Group

Virgin, a leading branded venture capital organisation, is one ofthe world's most recognised and respected brands.

Conceived in 1970 by Sir Richard Branson

Virgin has created more than 200 branded companies worldwide

Employing approximately 50,000 people, in 29 countries

Revenues around the world in 2006 exceeded US$20 billion


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Virgin Group


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Virgin Atlantic

Virgin Atlantic Airways Ltd. (operating as Virgin Atlantic) isa British airline

Virgin Atlantic Airways has become Britains second largest carrier servingthe worlds major cities. Now based at Londons Gatwick and Heathrowairports and Manchester airport, it operates long haul services to thirtydestinations world-wide as far apart as Las Vegas and Shanghai.

Virgin Atlantic is a biggest subsidiary of Virgin Group


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Company Profile

Founded 1984

Commenced operations 22 June 1984

HubsLondon Heathrow Airport

London Gatwick Airport

Focus cities Manchester AirportFrequent flyer program Flying Club

Member lounge Virgin Atlantic Clubhouse

Fleet size 38

Destinations 30

Parent company Virgin Group

Headquarters Crawley, England, UK

Key peopleRichard Branson (President)Stephen Murphy (Chairman)Steve Ridgway (CEO )


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Company Profile

Owned by Richard Branson's Virgin Group (51%) andSingapore Airlines (49%)

Virgin Atlantic is 51% owned by the Virgin Group and 49% owned bySingapore Airlines. On 20 December 1999 Richard Branson signed anagreement to sell a 49% stake of Virgin Atlantic to Singapore Airlines toform a unique global partnership. The cost of the transaction to SingaporeAirlines was 600.25 million, which included a capital injection of 49million and valued Virgin Atlantic at a minimum of 1.225billion. The dealwas finalised in early 2000.


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Company Profile

Operates long-haul routes between the United Kingdom andNorth America, the Caribbean, Africa, the Middle East, Asia,

and Australia

10 routes to the US6 Asia Pacific routes4 African routes1 Indian Ocean route1 route to the Middle East8 Caribbean destinations

Virgin Atlantics thirty routes worldwide are broken down as follows:


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Company Profile

Virgin Atlantic currently has a fleet of 38 aircraft :

Aircraft Orders and Fleet

Current Firm Orders

Airbus A 340 A 300 6

Airbus A 340 600 19 6

Airbus A 380 6

Boeing 747 400 13

Boeing 787 9 15


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Company Profile

Year 2004 2005 2006 2007 2008

PAX NO (cal year) 4.3m 4.4m 4.6m 5.1m 5.7m

TURNOVER 1272m 1630m 1912m 2140m 2336m

PROFIT 20.9m 20.1m 41.6m 46.8m 60.9m

Recent Financial


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Richard Branson

Sir Richard Charles Nicholas Branson (born 18 July 1950) is an English business magnate

He is the 245th richest person according to Forbes' 2008 list of billionaires as he has anestimated net worth of approximately $2.8 billion


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Richard Branson


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Mission Statement

To grow a profitable airline...

Where people love to fly...

And where people love to work .

Virgin Atlantic, mission statement is simple...


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Corporate Management


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Strengths

Differentiation based on value, service, and price

Universal appeal to wide variety of customers Established and highly - recognizable brand image

Innovative features that distinguish the company name

Talented management team (eg: Branson)

Strong, well - designed organizational structure


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Weaknesses

Some underdeveloped channels (eg: Premium Economy)

Underdeveloped distribution system

Marketing primarily focused on London market

Ineffective utilization of alliances and partnerships


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Customer Ratings


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Flight Inside


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E Commerce Strategies &Design of the Web Site

ByKasun Nanayakkara


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E Commerce Strategies

Steering On-line Traffic.

Negotiation of links with other sites. (Travel and holiday websites) Search engine placement. On-line branding web banners etc. On line promotions


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Providing On line Product Information

Flights Schedules

Flight bookings (e-ticketing) On line check in What's on board (entertainment, food, etc) Fares Hotels Vacations Loyalty credit cards


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Customer Relationship Management (CRM)

Targeted promotions. Preferred Seats, meals, entertainment. Loyalty program - Flying Club Customer feedback



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E Commerce Tools Flight Times

Flight Status

Flight Schedules


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E Commerce Tools Book flights


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E Commerce Tools Book Vacation

Flight Hotel


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E Commerce Tools Book Hotels, Cars and Extras (Rail, and Sightseeing Tours)


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E Commerce Tools Manage Flights

Seat selection

Meal selection Frequent Flyer details Advance Passenger Information


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E Commerce Tools Easy, Time saving check-in process

- Online Check In (from home via www)

- Kiosk Check In (At airports using credit card)- Twilight Check In (check in at Gatwick and save time)- Check In Chill Out (checking from Caribbean from the

hotel)- Disney Check In (spend more time at Disney world)- Hong Kong Downtown Check In (check in from air port

express trains)


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E Commerce Strategies E Commerce Tools

On board purchasing via credit card- You can order fresh food when you want it, from the

screen at your seat.- Red, our in-flight entertainment system, has over 25 pay-

per-view Hollywood movies on demand.- On board calls, merchandise.


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Design of the Web Site

Evaluation Criteria

Design, creativity and user friendliness

Information and Content up to date

Transaction Security / Data Privacy

Performance

Encourage Repeat purchase / Re - Visit


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Evaluation Criteria

Design, creativity and user friendliness



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Evaluation Criteria

Information and Content up to date

Web site is informative on flight details and bookings.

Detailed information available on entertainment options.

Insufficient information on hotels, sight seeing etc.

Fares are up to date and currency conversion tools, fare breakdown etc is available.



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Evaluation Criteria

Transaction Security / Data Privacy

Secure server software (SSL) which is the industry standard and among

the best software available today for secure commerce transactions. SSLencrypts all of your personal information, including credit card number,name, and address, so that it cannot be read as the information travelsover the Internet. SSL is used at virgin Atlantic

Customer data privacy - Privacy policy in place.

Performance Speed of transactions.

Payment gateway performance



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Evaluation Criteria

Encourage Repeat purchase / Re Visit

On line discount coupons for redemption.

E-mail alerts for registered users.

Transaction history and targeted promotions.



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Online Branding

ByShashikala Jayasinghe


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Key Dimensions of Brand Equity

Brand reputation

Value and Personalityof the brand Benefits delivered by

the brand Brand Leadership


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"At Virgin, we have a strategy of

using the credibility of our brand tochallenge the dominant players in a rangeof industries where we believe theconsumer is not getting value for money .."

In his own words.


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Strengths of the brand

Highly respected and globally recognized

Right product, quality and reliability

Superior product performance vs. Competitors

Possesses a distinctive, fun-loving and innovative brand


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Web Perspective

Leader in Online Travel agency

Providing information on every aspect to the customer

Customer needs are understood


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Virgin Atlantic was awarded the World BusinessSuperbrands Award for the brand most perceived

to keep its promises

Brand Value


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More Awards


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Strategies to build the brand

Brand strength intensified through customer loyalty

Provides the cheapest flights on the web withoutcompromising on comfort

Richard Bransons entrepreneurial attitude and his fearless reputation

Relentless fight against monopoly


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$3bn to fight global warming, including all profits fromhis travel firms including airline Virgin Atlantic

The funds pledged will be invested in renewableenergy development


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Interesting Fact

Branson offered British Premier John Major aVirgin aircraft to get out hostages during theGulf War


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Thank you

virgin atlantic - final

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