Virgin America's Downfall Despite a Successful Marketing Strategy

Founded in 2004 and beginning their operations in 2007, Virgin America is a brand that has been operated by Alaska Airlines up until now. As of April 25, 2018, the brand will officially retire. With the recent news of Virgin America's demise, it is important to look back at the things they did right in regard to their marketing strategy during their golden years.

The airline used psychological and behavioral segmentation variables. The company put an emphasis on a tech savvy younger generation, as well as celebrities and influential individuals. They targeted a specific niche segment, while also following concentrated marketing. Also, the company structured their pricing and services around the requirements demanded by the target segment. Lastly, Virgin America also designed their aircraft with advanced technology with different amenities including USB ports, power outlets, touch screen monitors, and other services that provided for an amazing consumer experience. In return, customer satisfaction was extremely high.

The company followed a concentrated marketing strategy, where the firm goes after a small share of a larger market. This kind of targeting allows the company to achieve high levels of growth. With this strategy, Virgin America achieved a strong market share because of the knowledge they have obtained from the target segment. The company had the tools to serve their customers in the best way possible.

Virgin America is very similar to the young and technologically intelligent target segment. They offered the finest amenities for consumers willing to pay for it, and they also offered minimal baggage misplacement, minimal delays, and minimal airplane breakdowns. The company was always staying innovative and improving in all areas.

Virgin America has been operating effectively up to date. But now, Virgin America will no longer exist. They were doing well in terms of profits and growth, while having a good vision on the future evolution of the company. Virgin Airways has won multiple awards within the industry across different metrics. As the company increased their scale of operations, it was obvious that they would have to combat and overcome different obstacles that were waiting for them ahead. However, their time has come to an end, and Alaska Airways will either benefit or suffer from Virgin's departure.