Virgin America Case Guide

Guidelines:
- The questions are about STP
- S&T are all about describing the target customers. Avoid describing too much on the
products and service offered – that’s under 4P
- Q3: there’s sample of positioning statement in Chapter 7 slides. Try to sum in 1-2 sentences
– how Virgin America will introduce themselves to the public

1. Using the full spectrum of segmentation variables, describe how Virgin America segments and
targets the market for airline services.
- use all 4 segmentation bases: geographic, demographic, psychographic, behavioral
Geographic – cold climates, in US, Canada, Mexico
Demographic – young, willing to pay a little more (middle to high income level)
Psychographic – tech-savvy (order f&b for anyone on the place), influential, want
exceptional service while flying, tech, in-flight entertainment (movies and games)
Behavioral – fly for travel / relax, business travelers

2. Which market targeting strategy is Virgin America following? Justify your answer.
Differentiated or Niche is acceptable

3. Write a positioning statement for Virgin America.

- some terms: Putting customers first; “hip”
- one sample from student: to the savvy fliers who desire superior air travel, Virgin America
is a premium airline that provides exceptional service to make the trip more entertaining.
- another sample: To frequent fliers who are willing to pay more than ordinary fares, Virgin
America is an airline company which emphasizes on customers satisfaction that provides
superior airline services than other airline competitors to its fliers.