The benefits of using innovation and creativity at Virgin Atlantic are:
- The intent to produce high quality services or products to distinguish the organisation from competitors,
- Speeds if innovation development
- Being willing to adapt products or services to meet special customer needs(Trott, P 1998)
Virgin's share of the premium segment is 12.3 percent. Virgin is by far the most innovative player in today's market. Virgin was the first airline to introduce a business-first service in the early 1990s and is the only airline to offer a premium economy section on long-haul flights. ()
Also Virgin has a code-share agreement with on of its competitors Continental which enables both airlines to sell tickets on each others' flights. So they are working together in achieving their business targets by being innovative with this new agreement that both are satisfied with as they are working with each other than against.
Innovation and creativity together are required for Virgin Atlantic in not just marketing the business but by creating new product developments by meeting customer’s requirements that they want that other firms don’t, will bring customers to the business in order to use their service.
Virgin Atlantics customers that travel with the airline consists of 35 to 45 year olds whom are high earners travelling in the upper class for business purposes. Virgin Atlantic is very popular with the celebrities who use this service and those travelling on business are often doing so because of economy travel policy that virgin Atlantic does.
Customers that are in the Economy passengers are a much broader group, travelling mainly for leisure and evenly spread across most socio economic groups and age ranges.
One of the customers that use the service said “it’s excellent value for money; the advantages were good discounts, no ques, good hotels. Customer service, quicker going through check in, no disadvantages and yes I would to recommend to others”. ()
This shows that Virgin Atlantic is a very innovative business with new developments all the time and improving on the already existing inventions in progressing them further ,to become more bigger and efficient for customers to want to use this service than go to other airlines. Innovation and creativity has a big influence as it helps bring new creations that differentiate from other competitors that lead customers to Virgin Atlantic. The bigger and better inventions means more profitability and customers will gain more success for the business.
To show the success of innovation and creativity has at Virgin Atlantic the firm has been given a lot of awards and achievements that have been to offer and won nearly each one in the industry, including Best Airline for Groups in 2006, In September 2006 we won Airline of the Year – Business, Top business class on the transatlantic routes, Best business class airline Best Premium Economy awards. The two awards show that Virgin Atlantic's innovative products, in Upper Class and Premium Economy, are the clear favourites for long-haul traveller It's an attitude that has played an important part in the widespread global success of the Virgin brand and promoting the values that consumers can associate with.()
Innovation and creativity is used a lot in Virgin Atlantic to help with the marketing of the service as it uses a wide range of innovative marketing techniques.
To advertise Virgin Atlantics awareness to the public a lot of Advertising activity is done including TV, press, magazines, outdoor posters and taxi sides, with their distinctive logo. Advertising is used to encourage people to try the airline, to raise awareness of new product developments and a new route this is an example on how innovation and creativity is used to achieve promoting the business in different ways. . ()
Another source of promotion used by innovative marketing is by Direct mail which is also used to encourage customers to try the airline and promote its existence and what it has on offer.
Also, another innovative technique is Virgin Atlantic operates a frequent flyer programme; this is to encourage loyalty in existing flyers. This scheme includes free flights and rewards to its members and a lot of benefits, e.g., a "one call does it all" support service and Clubhouse access. ()
Innovation is used to communicate with virgin Atlantics consumers as they market their airline to travel agents In addition to communication to consumers; they market wide range of promotions, trade incentives, familiarisation trips and educational/ social events. . ()
Innovation is effective in Communications at virgin Atlantic to its customers as it helps to market the service by keeping business and leisure travellers informed through press and TV advertising, mailings and a variety of offers and promotions. They also run special promotions - like fare discounts on particular fares this increases the popularity of seats on each route all year round. Also innovation amongst employees working together on joint activity is innovative. . ()
Creativity is used in Virgins creativity services to produce everything from sales literature, trade material, newsletters and posters to photography and video production. Also the staff work together to manage the development and use of Virgin Atlantic's corporate identity. . ()
Virgin Atlantic has Events and Sponsor ship with a variety of exciting activities to promote Virgin Atlantic and its routes. This is where the employees take care of new product launches for corporate and trade clients, as well as training and social events for travel agents, exhibitions, road shows and press launches. . ()
There is Loyalty flying club, the airline's loyalty programme, allows Virgin Atlantic to reward and recognise its most important customers. The Loyalty team manages all forms of communications with the frequent flyers, including letters and other mail shots .This innovative technique helps in gaining customer loyalty and making them feel valued. . ()
Innovation and creativity plays a major part in their research to review the business and ways in improving their service and progress in the opportunities with new product developments as Virgin Atlantic commission’s quarterly customer satisfaction E.g. monitors punctuality of flights, length of check in ques and levels of customer service. . ()
Virgin Atlantic was conceived to offer the best possible service while delivering the best possible value. Virgin Atlantic is seen by the public as a distinctive, fun-loving and highly innovative brand and one that is admired for its friendliness, intelligence and integrity ()
Innovation and creativity are used at virgin Atlantic but also in helping them to have the most effective service and products there is the use of technology that is used to bring the two together.
Technology is “Knowledge applied to products or production processes”. (Trott, P Innovation Management And New Product Development, chapter 1.pg 14)
- The development and use of technology is a key source of competitive advantage.
- The globalisation of technology and markets requires companies to take a strategic approach to their technological investments. (“Trott, P 1997)
There is a lot of technology use in Virgin Atlantic that has a great impact on the service it delivers and the key to its day to day success. The firm has its own website () which has all information regarding making reservations, all information that customers need plus any information on Virgin Atlantic, customer enquiries etc all available on the website..
The website () offers full electronic booking capacity, allowing passengers to reserve and pay for tickets online, plus full destination information and a comprehensive guide to what's in store when flying with Virgin Atlantic.
For Virgin Atlantics flying club members they are able to use the site to check their mileage balance, rewards and earning opportunities. New members can also enrol online which they could not do without technology.
The website, allowing passengers to reserve and pay for tickets online, there s no need to check in, straight to boarding with e-tickets.
Due to technology customers can have full destination information and a comprehensive guide to what's in store when flying with Virgin Atlantic.
Technology has allowed customers to make reservation online with hotel bookings. Car hires on the website, airport parking, and flight times etc this makes it a lot easier and useful for customers to have access to all information.
There is Innovative technology on aeroplanes as there are many facilities onboard such as hotels, facilities access to customers e.g. TV and also offering customers gadgets that are duty-free.
Online booking is the most used technology on Virgin Atlantic, the Advantages of online bookings are: It’s more secure for customers, It’s quicker and doesn’t time consume, Tickets can be bought at lower cost than what they would pay for at an agency plus there are bargains and offers e.g. group discounts. If customers have access to internet then that is easier for them to research the best offers, plus if once they buy they‘ll come back which is a benefit for the firm like Virgin Atlantic, and it is Less expensive to advertise tickets on the internet, Online travel agencies allow users to sign up to watch the airfares to their choice of destinations. The sites send out e-mail to update the users on the latest fares. The customer just has supply information on where they are going and what they are in need of, and the service will take care of everything else for them. This saves them time from searching for the best prices they can get and booking everything from the same online site they will assured they have the best prices.
The only disadvantage of Virgin having an online booking system is that customers prefer face-to-face interaction for any guidance or any enquiries they want to find out. Some customers don’t believe in online booking their travel plans this could be due to security issues e.g. credit card access to other users. Customers would have a one to one to discuss their plans and ask for help if they are a first timer but also if they have lack of knowledge in how to use the site and feel uncomfortable. Whereas a travel agent will tell them whatever they want to know and discuss any issues with them.
Innovation and creativity has an impact on Virgin Atlantics profitability as the success of the business with generation of new ideas and services to offer customers. The business’s financial position has grew over the years and has made hundreds of millions of pounds in comparison to others airlines, gaining the most number of customers and its dominant position in the airline industry.
To sum up Virgin Atlantic it is “A brand name that is known internationally for innovation, quality and a sense of fun - this is what we have always aspired to with Virgin."(Branson, Richard. )
Summary
The use of innovation and creativity in Virgin Atlantic is a key factor in the firms growing success and making it a leading online booking service and airline with customers. Through the use of innovation and creativity in the marketing and technology it has a major impact of success with new ideas created and producing new products and services. Virgin Atlantic are maintaining their firms objectives by meeting their customers needs and going ahead of its competitors gaining competitor advantage and rising to the top in its environment with its innovative ways of doing things and improving its current service. Innovation and creativity is the key element in Virgin Atlantic in creating new ideas and service to customers by differentiating their service by offering customers what they want and what other firms don’t have. Innovation and creativity are important elements in all businesses including Virgin Atlantic in creating the best products and services. The more use of innovation and creativity will enable to improve business growth ,achieve Virgin Atlantics values set, Be more creative than others in the industry by Generating new products and services to beat their competitors, Improve financial performance, more Competitive advantage, keep existing customers satisfied and attract more.
Bibliography
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