PROJECT ON SERVICE QUALITY OF

Type Founded Headquarters Key people

Private (Limited liability) 1970 (Incorporation: 1989) London, England, UK Richard Branson, Chairman Stephen Murphy, CEO Susannah Parden, CFO Airlines, Trains, Games, Financial services, Internet ,Cable TV, Music, Radio, Cosmetics, Jewellery ,House ware ,Retail Mobile phones US $20 billion Approximately 50,000 people, in 29 countries.

Products

Revenue Employees

PRODUCTS

The story unfolds……
• Branson was born at Stone field Nursing Home in South London. • • His mother used to set challenges for him and his sisters, in order to make them independent. • • Virgin brand took off in the year 1970. • • Branson started with a student magazine at the age of 17 which focused on the issues of students in school.

“ Richard Branson is Britain's top boss says Learning & Skills Council ” “ Think small to score b .

Virgin brand so far: Transport & Travel .

Virgin brand so far: Leisure & Entertainment .

Virgin brand so far: Retail .

. Money.Virgin brand so far: Communications.

Virgin Mobile India Entry…. .

Virgin brand so far: Health. Renewables. . Charity.

employing 48 500 people. one of the most exciting brands in the world 200 companies worldwide.4bn .8bn/US$20. an annual Virgin Group turnover of £10.….

KEY ASPECTS qCustomer Service q qSystematic Role q qRole of Technology q qComments q qConsistent Service q qCommunication Channels .

Dimensions of Service Quality qEfficiency qAssurance q q qTangible qTrust q q qEmpathy qReliability q qResponsiveness .

Relative Importance of Service qReliability 32 % qTangibles 11 % qResponsiveness 22 % qEmpathy 16 % qAssurance 19 % 16 .

Tangibles 10 . Understanding / Knowing the Customer Word of Mouth Personal Needs Past Experience Expected Service External Communication to Customers Service Quality Gap Perceived Service Quality Perceive d Service 17 . Reliability 7. Courtesy 5. Communication 3. Security 9. Access 2.Determinants Dimensions of Service Quality 1. Responsiveness 8. Credibility 6. Competence 4.

Nature of Service Expectations Desired Service Level Customers Believe Can and Should Be Delivered Zone of Tolerance Adequate Service Minimum Level Customers Are Willing to Accept 18 .

The Two Levels of Expectations Imply Two Corresponding Measures of GAP 5 : Measure of Service Adequacy ( MSA ) = Perceived Service Adequate Service Measure of Service Superiority ( MSS ) = Perceived Service - Desired Service 19 .

Technology ’ s Role Serving Customers Company Internal Marketing Te ch no lo gy ` External Marketing Employees Customers Interactive Marketing 20 .

PROCESS MODEL FOR CONTINUOUS MEASUREMENT AND IMPROVEMENT OF SERVICE QUALITY DO YOUR CUSTOMERS PERCEIVE YOUR OFFERINGS AS MEETING OR EXCEEDING THEIR EXPECTATIONS? NO DO YOU HAVE AN ACCURATE UNDERSTANDING OF CUSTOMERS ’ EXPECTATIONS? YES ARE THERE SPECIFIC STANDARDS IN PLACE TO MEET CUSTOMERS ’ EXPECTATIONS? YES DO YOUR OFFERINGS MEET OR EXCEED THE STANDARDS? YES IS THE INFORMATION COMMUNICATED TO CUSTOMERS ABOUT YOUR OFFERINGS ACCURATE? YES 21 NO TAKE CORRECTIVE ACTION NO TAKE CORRECTIVE ACTION NO TAKE CORRECTIVE ACTION NO TAKE CORRECTIVE ACTION YES CONTINUE TO MONITOR CUSTOMERS ’ EXPECTATIONS AND PERCEPTIONS .

Conceptual Model for Understandin g .

Customer Fulfillm ent Gap Customer Web site Requirement s Customer Web site Experiences Perceived e-SQ Perceived Value Purchase/ Repurchas e Company Informa tion Gap Marketing of the Web site Communi cation Gap Design and Operation of the Web site Design Gap Management’ s Beliefs about Customer Requirements .

because we know that tomorrow ’ s success depends on the trust we .Customer satisfaction üDirect selling of goods and services to consumers ü ü ü “ üVirgin Atlantic & Virgin Mobile Our goal üAmenities on the flight üLuxury Boat Service cannot be profit at any cost .

PRINCIPLE S .

SOCIAL RESPONSIBILITY üVirgin Unite üVirgin Green Fund üVirgin Earth Challenge. save the earth .

” .To w a rd s E m p lo y e e s   “Staff first. Then Customers and Shareholders”     “Strength through Unity.

Waste Management • üRecycling – IT equipment and mobile phones ü üSustainable Printing • “ W E H ATE W A STE” .

TECHNOLOGY & VIRGIN .

WIMAX NETWORK C O V E R IN G 2 0 C IT IE S .V IR G IN C O N N E C T .

VIRGIN LAUNCHES ONLINE MUSIC SERVICE .

VIRGIN MOBILE IN SOUTH AFRICA. INTRODUCED 'PER SECOND' BILLING .

5 Hours a Week in Each Store With stock-control solution .Virgin Retail Saves 8.

Virgin Megastores Opens Music and Video Vault to Customers With .

THINKH A T K E .

COMPANIES .

“ Wallpap er awards Virgin Atlantic with world's Fastest Airport Check In ” .

“ Virgin Blue is named 2008 Asia Pacific Low Cost Airline Of The Year ” .

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“ The Institut e of Customer Service names Virgin Trains as Best Train Operator ” .

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Virgin Atlantic Airways Case .

Case Objectives • To integrate the concepts of services marketing as a capstone to the course. • To illustrate service positioning as a competitive strategy. • To demonstrate the delivery of customer value. public relations and pricing as they relate to success in a service. . • To examine the themes of service quality. innovation.

• • • • • • • • Value for Money Innovation Non Conformist Attributes and Dimensions of  Customer Value Offered by VAA D y n a m ic Tre n d y F u n D a v id a g a in st G o lia th L ife S ty le P e rso n a l L o w P rice C o n v e n ie n ce F rie n d ly In fo rm a l Alternative to BA Entertainment Cheapest Deal Young Richard Branson’s Airline Service Quality Entertainment Fun Innovation • Service .

VAA’s Weaknesses • MARKETING STRATEGY – No clear customer targets – “Wild” image not good for all customers – Public relations efficient but less controllable than advertising – Low trial rate – Power of competing frequent flyer • SERVICE AND ORGANIZATIO NAL CAPABILITIES – Punctuality – Age of fleet – Losing momentum on innovation? – For how long can staff be kept motivated? .

VAA’s Weaknesses • ECONOMIC • DEPENDENCE VULNERABILI ON BRANSON – Value of VAA TY – High break-even point – Lack of economies of scope – Capital without Branson? – Real value of Virgin brand? .

VAA Possible Actions • PRESERVE AND IMPROVE CURRENT STRENGTHS – – – – – – – Innovation Service quality Fun Staff motivation Punctuality Fleet renewal Expand Virgin Freeway .

AA Possible Actions Action • BUILD A NEW STAGE IN THE DEVELOPMENT OF VAA – Transform core values into unambiguous positioning strategy – Design differentiated marketing strategy for specific target groups – Break the trial rate wall – Build selected .

What Happened? q VAA announced joint Heathrow-Sydney service via Hong Kong with Ansett Airlines q Announced another partnership with Malaysia Airlines for flights from London to Kuala Lumpur q Alliance with Delta approved q VAA renamed its full-fare Mid Class cabin Premium Economy because of confusion q VAA won yet another Executive Travel Airline of the Year award in January 1995 q Branson ranked in eleventh place in 1994 among Britain’s rich with 895 million net worth .VAA .

Conclusion .

THANK YOU ! THANK YOU ! THANK YOU ! THANK YOU ! TH A N K YO U ! THANK YOU ! THANK YOU ! THANK YOU ! THANK YOU ! .