This report will be demonstrating the impact of innovation and creativity has in Virgin Atlantic. This will show the role innovation and creativity plays in the marketing and technology of the organisation. What is Innovation? “The intentional introduction and application within a job, work team or organisation of ideas, processes, products or procedures which are new to that job, the work team or the organisation. “(West. M, 1997 Developing Creativity In Organisations, chapter 1, pg. 3) Creativity is “the bringing together of knowledge from different areas of experience to produce new and improved ideas.
“(West. M, Developing Creativity In Organisations, chapter1, pg. 1) Virgin Atlantic started in 1984, by entrepreneur Richard Branson. Virgin Atlantic is the second largest long haul airline in the UK and the third largest European carrier over the North Atlantic. Their route network has grown rapidly to include destinations in the US, Caribbean, Far East, India and Africa. Virgin Atlantics main brands and services operate a two class system: Upper Class and Economy class. (www. VirginAtlantic. com)
The benefits for Virgin Atlantic to use innovation and creativity within their organisation is to create new inventions, new changes, produce more efficient and improved productivity levels, as well as economics that measures and also innovation involvement in the technological changes on new products or inventions that the business already has. (West, M. 1997) Innovation and creativity has an influence on the Marketing sector of Virgin Atlantic as “in the 1970s according to studies of innovations showed that the role of marketplace was influential in the innovation process”.
It is important as the role of marketing as an initiator of new ideas resulting from close interactions with customers. (Trott, P. 1998. chaper 1, pg 18) Innovation helps firms like Virgin Atlantic with new product developments as it is vital that customers are satisfied by the product and service. For Virgin Atlantic it is to help with products chances of success in its competitive environment, has to differentiate its products in order to gain competitive advantage, also to attract customers to its business and keep them satisfied from using other services.
Marketing is very necessary in bringing business awareness and promoting to the public, for it to have success and maintain its dominant position in the travel industry. The use of innovation and creativity is required to get attention and bring customers to the airline, the need of new ides and putting them to action is needed with the right marketing methods. . It is important for Virgin Atlantic to be innovative as there are many factors that influence their position in the market environment.
One of these factors is for the organisation to be aware of who its competitors are and in order for them to stay at same level or ahead of them there is the need “to develop new and improved processes, services, products or organisational structures. “(West, A 1997, chapter5, pg 74) The use of innovation and creativity in organisation is important for them to obtain their market share at the same of their competitors but should be more than the rivals that is why innovation is used in developing new products and service for survival and to strengthen the organisation to the best it can be.
Virgin Atlantic competitors in its industry include British Airways, bmi British midland, American Airlines, Continental, Delta and United. 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. (www. VirginAtlantic. com) 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”. (www. VirginAtlantic. com) 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. (www. VirginAtlantic. com) 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. . (www. VirginAtlantic. com) 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. (www. VirginAtlantic. com) 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.
. (www. VirginAtlantic. com) 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. . (www. VirginAtlantic. com)
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. . (www. VirginAtlantic. com) 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. . (www. VirginAtlantic.com)
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. . (www. VirginAtlantic. com) 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. . (www. VirginAtlantic. com)
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 (www. VirginAtlantic. com) 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.