Presently, there are many innovation and new products and services are born with new brands. Furthermore, there are many brands that used for more than one products and services, such as Virgin. Virgin which originates from England has many different types of business such as telecommunication, trains, banks (Virgin 2016).
Virgin as a Product
Before discuss Virgin in more detail, we need a basic understanding about a product. Product can be defined as all things that advertised to the market which can be distinguished into two different types; goods and services (Armstrong et.al 2012, p.218). Furthermore, in these days the product can be developed into two different levels (Armstrong et.al 2012, p.219). The first level is actual value which can be gained by understanding what consumers really need (Armstrong et.al 2012, p.219). Moreover, augmented product is an extension of actual product that offered to customers (Armstrong et.al 2012, p.219).
(Armstrong et.al 2012, p.219)
Virgin is classified as a product since Virgin can be offered to customers. Additionally, from the picture in above, it is clear that Virgin is already fulfill what customers want by provide different types of business such as telecommunication, airlines and banks (Virgin 2016). Furthermore, in some Virgin’s products, augmented level of product is already offered to customers such as reward system in Virgin Atlantic with Bank of America (Virgin Atlantic 2016). Furthermore, this reward system is used to keep customers for using Virgin as a product.
Product life-cycle is a study that focused on products’ sales that impact on company’s income (Armstrong 2012, p.269). Product life-cycle is important for understanding when the brand will be decreased. Armstrong et.al (2012, p.269) describe that there are 5 different steps on product life-cycle; development, introductory, growing, maturity and declining.
How Product Life-cycle will effect in Virgin Company?
(Source: Sharp 2013, p.261)
This graph in above shows when each brand starts to reach popularity and used for marketers to understand when each brand needs improvement. Introduction is the earliest stage that must be passed by any brand. Moreover, this stage also allows marketers to consider two ways of strategies such as skimming; using an expensive price to boot the profit and penetration; setting the price to introduce new product (Drummond & Ensor 2005, p.111). When Virgin Company released for the first time publicly, Virgin Company received low profit as customers did not aware about Virgin (Virgin 2016).
When introduction stage is accomplished, every brand starts to grow time by time. In this stage, competitors of every brand will appear and become followers of these brands (Armstrong et.al 2012, p. 271). This stage becomes a big opportunity for companies to gain much money through the development of quality and reputation for every brand and products (Armstrong et.al 2012, p.272). When Virgin starts to grow, there are similar brands that can be found, for example Qantas as one of competitor of Virgin Atlantic. Furthermore, the competition allows Virgin Atlantic to set a right price to reach more customers. Virgin also concerns to increase the reputation service development over one year (Virgin 2016).
Maturity is happened when sales of every brand starts to decline because there are many competitors to produce similar products (Armstrong et.al 2012, p.272). Because of declining sales, advertisement becomes an important part for every brand to boost the profit (Armstrong et.al 2012, p.272). Furthermore, there is an alternative that marketers can modify the brand to meet new demand (Armstrong et.al 2012, p.272). To keep the brand popular, Virgin Company through Virgin Atlantic adapts a new facility such as reward system for loyal passenger (Virgin Atlantic 2016). Additionally, this reward is created that partnered with Bank of America that allow bank’s clients can receive up to 40,000 bonus reward from Virgin Atlantic (Virgin Atlantic 2016).
Declining is the continuation of maturity stage which causes every products and brands to decrease in markets. There are many reasons of declining products and brands such as high technology and moving of consumers’ tastes (Armstrong et.al 2012, p.273). Moreover, a unique advertisement plays the main role to return popularity of products and brands (Armstrong et.al 2012, p.273). In this stage, majority big companies do accumulation of the products which effect on decreasing expenses (Armstrong et.al 2012, p.273). When Virgin Company faces a declining stage, advertisement plays a main role fro Virgin to boost profit (Virgin 2016).
What are recommendation for Virgin Company?
Like another brand, Virgin’s popularity will decrease in the future. Being innovative is an important thing for Virgin to consider because customers’ demands and wants always changing at different time. Learn customer feedback is the way to understand what customers want and help Virgin Company to improve the offered products.
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Armstrong, G, Adam, S, Denize, S & Kotler, P 2012, Principles of marketing, 5th edn, Pearson Australia, Frenchs Forest, NSW
Drummond, G & Ensor J 2005, Introduction to marketing concepts, Elsevier Butterworth-Heinemann, Oxford
Sharp, B 2013, Marketing: theory, evidence and practice, Oxford, Victoria
Virgin 2016, Find a Virgin company, Virgin, retrieved 26 August 2016, https://www.virgin.com/company
Virgin Atlantic 2016, Virgin Atlantic, Virgin Atlantic, retrieved 28 August 2016, http://www.virgin-atlantic.com/us/en.html