Projmanics

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Assessment Brief

Assessment 2 – Project Report (70%)

Project Scenario:

PROJMANICS has a huge history of creating entirely new products/services by focusing on innovation. As a result, PROJMANICS LTD is rapidly growing and occupying top position in the market. The Senior Management Team (SMT) of PROJMANICS LTD with its head office in Abu Dhabi (UAE) is in need of a drastic change and modernization. You have been chosen to come up with a project that will generate profit or drastically improve productivity for the organisation.  This means you have to produce a detailed Project Management plan that details your proposed idea.

Based on the recent interview on BBC Worldwide with the Programmes Director of PROJMANICS LTD, she said – “This project must be led by innovative, talented, creative individuals who have the drive to push boundaries in all areas.”

The company has decided to invest the sum of £5M in this project but willing to increase the budget for a super idea. The project duration has been limited to 18months – especially for the development of product prototype or launching of a new service. Therefore it is very important you come up with a captivating and innovative product/service.

This assessment requires you to fully engage in researching, analysing, synthesizing, critically evaluating materials/resources including appropriate, supported and justified practical recommendations. There word count of a very good report is not likely to be below 3,000 words (excluding appendices). Please note that the maximum word count must not exceed 4000 words.

 Contents of the Project Report

The Table below summarises the minimum requirements of the Project report. The report is expected to have a professional presentation and marks will be awarded for having a suitable layout and length that is written with an acceptable use of business English.

The reports should include an abstract or executive summary that briefly summarises the project and main conclusions of the report.  The main text should be divided into a logical sequence and includes correctly cited illustrations (diagrams, graphs and tables, etc.).  It is essential to include correctly cited references for all text and concepts originating from other authors.

Project Report Requirements

1.      Report Presentation, Description & Depth 2.      Project Organisational Structure 3.      Project Charter 4.      Work Breakdown structure 5.      Project Plan & Responsibility Matrix 6.      Project Budget Breakdown 7.      Project Risk & Analysis Management/ Project Health & Safety Policy

The Table below gives the description of the work required in each assessment area of the Project report:

ECM28EKM: Project Report Marking Scheme Report

S/No	Criteria	Not-Acceptable (0-1)	Satisfactory (2-3)	Good (4-5)	Very Good (6-7)	Excellent (8-10)	Grade
1.	Report Presentation, Description & Depth	No structure, no coherence, no real depth or attempt to analyse the project, and Project Management application non-existent. Project selected and title shown only.	Attempt at good presentation or layout, but not evident in the whole document. Some items are difficult to find. Limited analysis of the project but good attempt to provide the Project Management Application. Project selected and title shown with brief synopsis of the project provided.	Common format, but no structure or Well-structured but not in a common format. More detailed analysis of the project and good attempt to provide the Project Management Application. Brief synopsis of the project provided that sheds light on: Why the project was selected, What the project is all about, What will be done.	Well-structured and presented project report with sub-sections allowing all information to be found easily. Detailed and very accurate analysis of the project, or project management plans that would overview the project, and be acceptable in business. Detailed synopsis of the project provided that reveals: Why the project was selected, What the project is all about, What will be done, How it will be done	Very well structured and presented project report with sub-sections allowing all information to be found easily. Detailed and very accurate analysis of the project, and project management plans that would overview the project, which is acceptable in business. An in-depth discussion on the prioritisation technique used in selecting this project. Detailed and accurate synopsis of the project provided that critically analyses: Why the project was selected, What the project is all about, What will be done, How it will be done.
2.	Overall project Organisation Structure	No evidence or List of team members provided with Belbin roles mentioned.	A detailed list of project team members and their Belbin roles with no or little comments. Poorly written minutes of meetings and a generic Organisational structure included.	A comprehensive list of project team members with explanations of the effects of their Belbin roles on group performance, Leadership style mentioned with very little comments. Minutes of meetings shown and an organisational structure included.	A meticulously prepared list of project team members that shows their roles and responsibilities with explanations of the effects of their Belbin roles on group performance With some explanation on Leadership Style and on its impact. Comprehensive discussion of group rules/regulations and minutes of meetings. A structure of the organisation of the real project shown	An in-depth list of project team members including an organogram coupled with explanations of the effects of team members’ Belbin roles on group performance. Detailed explanation of Leadership style adopted throughout the project life cycle An all-inclusive discussion of group rules/regulations and minutes of meetings. A structure of the organisation of the real project with roles and responsibilities explained
3.	Project Charter	No evidence	Description of the project (Why it is required and How it helps the business strategically) Brief description of the client and the project manager 5 or less basic objectives Basic Aim statement Objectives somewhat specific to the project	Detailed description of the project (Why it is required and How it helps the business strategically). Brief description of the client’s reasonable expectations, the project manager, the critical success factors and scope produced.5 or less “SMART” objectives shown with Basic Aim statement (the Objectives must be somewhat specific to the project). A list of stakeholders and 3-4 Major milestones (dates) With some comments	Comprehensive description of the project (Why it is required and How it helps the business strategically) Meticulous description of the client’s reasonable expectations, the project manager, the critical success factors and high level scope of the project based on business and compliance requirement produced. In-depth “SMARTER” objectives reflective of MBA level work, High Level Risks, list of stakeholders specific to project, major milestones clearly outlined, project cost mentioned with detailed discussions on open Issues and project assumptions/ dependencies. Project Charter template used.	Comprehensive description of the project (Why it is required and How it helps the business strategically) Meticulous description of the client’s reasonable expectations, the project manager, the critical success factors and high level project scope (in & out) based on business and compliance requirement produced. In-depth “SMARTEST” objectives reflective of MBA level work, High Level Risks, list of stakeholders specific to project, major milestones clearly outlined, project cost mentioned with detailed discussions on open Issues and project assumptions/dependencies to identify project limitations and proposing an implementation approach. High-level communication method shown. Most importantly, a well research Project Charter template used.
S/No	Criteria	Not-Acceptable (0-1)	Satisfactory (2-3)	Good (4-5)	Very Good (6-7)	Excellent (8-10)	S/No
4.	Project Work Breakdown Structure	A list of tasks produced.	10 items or more, but fairly generic and not having “verb nouns” at lowest level.	At least 20 tasks, more detailed – may have 3/4 levels, clearly tailored to the project in the main. Task must be specific to the project and shows a combination of Verb+Noun”.	Very well-presented Over 30 key tasks, Mostly well detailed and structured with 4/5 levels and very well presented. The tasks must have been derived from the activities and show a combination of “Verb+Noun” with numbering shown.	Over 40 Very detailed, easy to understand tasks that describe the “project” perfectly – a list of everything that needs to be done. Selection of an appropriate workpackage of the WBS to go into more detail with. The tasks must have been derived from the activities and show a combination of “Verb+Noun” with numbering shown or coding used.
5.	Project Plan & Responsibility Matrix	Project timeline is shown, produced manually or electronically with huge mismatch between WBS	Project schedule is shown, produced manually or electronically based on the project timeline, scope and resource plan. Some mismatch between WBS and resource list	Well-presented Project plan produced, showing dependencies between tasks. Responsibility matrix clearly demonstrates link between WBS resource lists, and incorporates legend.	A detailed project plan showing dependencies between tasks produced.WBS and resource list match, and accountability and responsibility marked with a code (RACI) – none of personnel are overloaded (vertically and horizontally)	Professionally produced high level Gantt Chart/Network Analysis and Critical Path shown.  Task Responsibility Matrix clearly shows a strong link between WBS and resource list without any ambiguity, and accountability & responsibility marked with some code (RACI) – none of personnel are overloaded (vertically and horizontally) and comments.
6.	Project Budget Breakdown	No evidence	A project budget produced with resource list covering two of the 5Ms shown with associated cost and a very brief explanation of why these resources are required	A project budget based on the Task Responsibility Matrix is produced with resource list covering three of the 5Ms shown with associated cost and a very brief explanation of why these resources are required	The resource list contains four of the 5M – people, materials, and equipment, and starts to detail why each is needed. A project budget, that aligns with the Task Responsibility Matrix and covers the following is produced: ·   Basic cost estimating based on Responsibility Matrix ·   Labour Cost Shown ·   Equipment Cost Shown ·   Overhead cost shown ·   Material Costs shown Allowance made for contingencies	A very detailed resource list containing, people, materials, and equipment, and has full detail on why each is needed is produced. A well-presented project budget, aligns closely with the Task Responsibility Matrix and covers the following is produced: ·   Basic cost estimating based on Responsibility Matrix ·   Labour Cost Shown ·   Equipment Cost Shown ·   Overhead cost shown ·   Material Costs shown ·   Allowance made for contingencies Proposed method for monitoring and controlling cost explained
7.	Risk Management and Health & Safety	No evidence/ list of high level risk	Risks list with action plan, no assessment or Risk list with assessment but no action plan. 2-3 project Health and Safety (H & S) problems shown	Basic risks identified, assessed, and action plan produced. 2-3 project Health and Safety (H & S) problems shown and discussed	Produce a Project Risk Analysis & Management (PRAM) document which includes detailed risks identified, analysed and assessed with action plan. Accompanied with Risk Map. 3 project Health and Safety (H & S) problems discussed and solutions proposed. Production of a very comprehensive Project Health and Safety (H&S) Policy Statement.	Comprehensive Project Risk Analysis & Management (PRAM) document produced which includes detailed risks identified, analysed and assessed with action plan. Risk Map produced with supporting well-researched action plans. 5 project Health and Safety (H & S) problems discussed and solutions proposed. Production of a very comprehensive project Health and Safety (H&S) Policy Statement.

 

Abstract

For PROJMANICS LTD to become more productive and increase its profitability, the proposed project idea is to come up with a television channel whereby the products they produce and the services they deliver  will be show cased .Advertisement of products requires a lot of innovation and creativity in order to capture potential buyers of those projects .For this television channel to run, the company will need qualified managers, marketing personnel and a technical team that will be actively involved .in order for this project to be successful, the project will need a team of 15 members who are given various responsibilities. The cost that will be used has been approximated in a budget and the work break down structure has been laid out clearly. The team aims to complete this project within 18 months or less. This report also takes into account the possible risks that the team will encounter during the project activities.

1. Project description and Depth

Objectives

The main objective of this project is to increase PROJMANICS LTD profits and also its productivity through advertisement of the goods and services that it produces. A television channel will be efficient in ensuring that potential buyers get the description of the kind of service or product that they need. Therefore there will be repeated episodes of a people (marketers) who will practically show how a certain product is used and also how services in this company can be accessed by anyone in need of the same. As such there will be need for many people to be employed in this media house ranging from the Chief Executive Officer to other people: producers, writers, editors, and the technical team among other people. This television media house will have a means through which customers can get back to the marketers and order or enquire about a product. To make this television channel serve the purpose of increasing profitability for this organization, the advertisements that will be done must be of very high quality and the graphics will be up to date. Animation will also be important to depict how innovative a product or a service is. This is estimated to be completed within 18 months or less. The success of this project will be determined by how well the team does the research and analysis of the information that will guide the activities done in this project.

Methods to be used

Tom Kendrick, (2003), states that in order to achieve the goal of a project, proper collection of information from the reliable sources comes in handy. One main reliable source of information is the managers or chief executive officers of media companies. This information will be used to create an efficient budget and also break down the work so that time does not run out.

It will also provide a guide through which proper people will be employed to do various tasks in the television channel for the benefit of the organization at large. The methods of data collection that will be used include interviews, use of questionnaires and observation. The type of interviews that the team intends to have will be either personal or through the telephone if the person is not available. Where technical information is required, the team intends to gather this information through participant observation. Since in this project there will be need for enquiring, a lot questionnaires will also be used since it will give the respondents time to understand the questions and thus respond correctly based on what they think. The team intends to ask questions that the respondents easily understand so that accurate information can be gathered based on the answers they receive from them. The reason why the team will use these methods is because of how accurate they are since they involve a lot of interaction with the respondents.

Administration of the project

According to Tom Kendrick (2003),” Each of the members of a project has various roles to play for the successful completion of this project. “This team is comprised of a team leader, a financial manager, researchers, analysts and reporters or presenters of the project. All these members are expected to collaborate and make sure that the deliverables of the project are achieved on or before the scheduled date. The executive sponsor of this project is PROJMANICS LTD if they approve of its feasibility.

Evaluation of this project will be determining if the methods used to achieve it will be considered viable by the executive sponsor. Through this description of the project the sustainability of the project is guaranteed since it will lead to a more productive and profitable firm.

2. Project Organisational Structure

How well a project structure is organized determines how the project activities will be carried out and implemented. The aim of having a structure for this project is to reduce the confusion that occurs when the project activities commence. Due to the different roles that each and every member has in this project, the structure outlines the roles and responsibilities of each and every team member. For this project, the following structure has been adopted.

The team leader is the person who assigns work to other team members and ensures that they actively participate in the projects by doing what they have been assigned to do .He has the most authority and controls the budget and assignment of tasks to the team.

He is also the person who settles conflicts between the team members in case any arise. His main duty is to ensure that deliverables at after each and every activity are achieved on the scheduled time or before.

Most of the project activities require funding for their completion. Some require more funding than others depending on their involvement. For this reason, the team leader of this project has assigned a financial manager who will ensure that each and every activity is well funded for.

The field coordinator is the person who will ensure that the process of data collection is done in the right manner so that accurate data is obtained. Accurate date is important in making the correct conclusions about a certain aspect since this will be very useful in implementing the project activities.

The presenter of this project is the person who will be talking to our stake holders and our executive sponsor (PROJMANICS LTD) about what this project entails. He is required to fully understand our objective so that the interested parties can be convinced that this project is viable and it can lead to improvement of this company greatly.

Researchers will be involved in the data collection activities to make sure that the project has enough information for the implementation of this project. The analyst’s main duty will be to make conclusions and suggestions based on the data collected.

The proposed structure of the media company of this television channel will be having the following sections.

Advertisement

Advertisement will be majorly for products and services that this company produces. This should be done in such a way that captures views attention and give them an urge to buy the products and services.

The assignment desk

This will have people who provide information about    time to the people in the news room. They will also be the ones to tell the news casters what to present and the order they should follow.

Audience Research department

This will be involved in ensuring that the information presented to the audience is favorable to all the people regardless of their age, gender, religion among other factors. They will ensure that the advertisement get the audience attention by ensuring that they are captivating.

The editorial team

This team’s main duty will be to decide what information will be covered and also the content of the stories. They will edit the reports in order in order to ensure that the information provided is correct

News collection

The people in this sector will make sure that they get the feedback that people have on the products and then disseminate this information to the editorial team who will ensure that the information is correct for presentation.

Production of news

After the information has been collected and reviewed by the editorial team, it can then be broadcasted to the audience. Mainly this information will dwell on advertising the products and services that this company produces.

3. Project Charter

This project’s main activity is to increase productivity and profitability of PROJMANICS LTD by making the products that it makes and the service it offers known to the interested consumers.  We have dabbed this project as PROJTV, which is the name that will be used to identify the television channel. This project came to be due to the fact that one of the ways through which a company can become popular is through advertising its products since this kind of information reaches a lot of people. Just like other projects, this one too faces a lot of limitations. To begin with, it is only limited to advertising products and services from this company. This can create monotony and boredom to the audience and they can chose not to watch the television channel. The main sponsor of this project is PROJMANICS LTD which wishes that a project is developed and it will benefit from it if it will bring about productivity and profitability to the organization. The scope of this project will require a media company through which the television channel will be aired. The roles and responsibilities of the project team members have been clearly outlined to avoid conflicts during the process. In order to track the project’s progress, a presenter will be used so as to disseminate information to the interested parties and the stake holders .In order to complete the project within 18 months or less, work has been broken down to various dates and assigned for various durations. When the whole project is done, the television channel will be maintained by a group of qualified staff.

4. Work Breakdown structure

K.K. Movassaghi, (1990), states that, because of the many activities that require to be carried out in a project, the activities are broken down into smaller ones and assigned when they will be carried out. Among the many benefits it provides is making sure that the project is organized accurately. Moreover assignment of activities depending on when they should be done is made easier. A work break down structure shows how the project is controlled in order to achieve the long term goals of a project. Some of the activities that we will be involved will include meetings that will be done throughout the project, and continuous consultation with PROJMANICS LTD.

Below is the work break down structure.

Time scheduled	Type of activity	Description
1st,2nd ,3rd and 4th months	Predecessor and successor activities	These include the activity of establishing the project and outlining the objectives. Team members are also assigned various tasks
5th , 6th and 7th months	Concurrent activities	These are activities that follow after the objectives have been outlined. The team will meet with PROJMANICS LTD to explain to them about the project.
7th,8th an d 9th months	Dummy activities	They include collection of data from reliable sources so that objectives are met
10th,11th ,12th and 13th months	Lag activities	They are activities of analyzing information to determine if it is relevant to the projects, objectives
15th,16th,17th and 18th months	Milestones	Includes presentation  of the project and its completion

 

5. Project Plan & Responsibility Matrix

The project team members plan to explain to the stakeholders and interested parties what this project is all about as we progress. If this project is understood by others especially our sponsors, then there is high possibility that it will succeed. Despite the risks we will encounter our scheduled time for this project is 18 months or less. As such there is need for the project team leader to ensure that each and every member actively participates so that it is done within the scheduled time. We do not expect conflicts to arise between us and the stakeholder since our objectives are well laid out and they are for their own benefit of increasing productivity through advertisements. We also plan to come to an agreement with the stake holders do this project to continue since they are our executive sponsors.

6. Project Budget Breakdown

Budgeting for this project will be very important for the completion of this project. Our budget is flexible and because we hope for additional funds in case it works. Through this budget, our main aim will be clearly known by our stakeholders and sponsor. Every activity of the group has been allocated a certain amount of funds. However most of the funds will be used to set the physical media house for this television channel. Through this budget, our financial manager will be able to estimate how much each and every activity will require and thus determine if the available fund will be enough to complete the project. Basically our budget has been created basing on which activities have more priorities than others. The ones that are more important have been allocated more funds than those that have not been given high priority. We are hoping that the funds allocated to us will be enough and should any the cost rise in the future our budget can be adjusted. The estimated costs of that will be incurred in carrying out the projects’ activities is as outlined below.

APPROXIMATED BUDGET FOR THE PROJECT

7. Project risks and analysis management

Just like in other projects we expect to encounter challenges because of some of the risks that we anticipate. To begin with, PROJMANICS LTD is a very large company that already produces creative and innovative products and services. As such there could be a possibility that our project will not be such a big innovation to them. Secondly, getting to convince them about increasing our budget will be kind of challenging. What the members of this project want is such a huge deal and it will incur lots of cost especially now that our budget is flexible. The issue of time can be another risk. The company expects that the project is completed with 18 months. We cannot really ascertain that it will be complete due to the many number of activities that we require to carry out. For example, since we will need to gather information from big media companies and television personnel, interviews can be moved to further dates since the people are always busy.

Collection of information from these companies will face another challenge because many companies do not like disclosing some information and this could hinder some of the activities we want to participate in.

Analyzing our risks will help us reduce the cost of this project as we will know what to prioritize and what not to. Most of the funds should be used in the activities that have been given higher priorities in order to reduce misuse of funds on unnecessary activities. Moreover it will enable us to gain our stake holders support in form of money since we will be able to convince them that the anticipated risks have already been dealt with.

There are some tools that can be used to assess high levels of risk. According to Kendrick,(2003), some tools that can be used include the risk frame work, the risk complexity index and the risk assessment grid. The framework is mainly concerned with the technology that has been used in the project. It applies the, marketing effects and change in order to determine how high the risks are. The risk complexity index concerns itself with the technicality issues encountered in the project. The technical issues of a project normally include the technology that has been used, the architectural structure of the system or product to be established at the end of the project. In order to reduce risks associated with the scheduling of the projects activities, our project team has decided to work even after working hours and during holidays too to fasten the completion of this project. Based on the data that we will collect, the group will know how this television broadcasting system has worked over the years. According to Kendrick,(2003), some of the techniques that can be used to schedule project activities include Program Evaluation and Review Technique (PERT),Consensus estimation(one used by the Delhi Group),use of information collected and the experience that they have.

Other risks that can be anticipated in this project include dependency of the project, delay of achieving an activity’s deliverables, errors of estimation, delaying to make decisions and the resources failure. In order to avoid or minimize the occurrence of such risks, the team leader together with the team members will make sure that ever activity achieves its deliverables before we move on to the next activity. Furthermore the team will ensure that the cost estimation is done correctly so that funds will be enough to complete the project. When it comes to making decisions, the team will ensure that they are made on time so that they do not delay the commencement of other activities that require to be done. Before any activity is done, the team members must ensure that the materials they are going to use are in a good position and are not faulty.

Asadullah Khan, (2006), stated that some of the means to handle risks include avoidance, mitigation, transfer and acceptance. The ways in which we are going to avoid the anticipated risks is by actively participating in the project so that there is coordination of activities. Mitigation involves taking actions when the risks occur. For instance, if our resources fail we will take measures to ensure that the materials we use are up to standard.

References

Tom Kendrick, (2003),Identifying andManaging Project Risk

AK Munns, BF Bjeirmi, (1996),The Role Of Project Management In Achieving Project Success  In International Journal Of Project Management

K.K. Movassaghi, (1990), ProjectManagement —A Managerial Approach, In European Journal of Operational Research

Asadullah Khan, (2006),Project Scope Management, In Cost Engineering

Albert E. Motley III, Kenneth H. Rose, (2002),Visualizing Project ManagementinProject Management Journal

Bjørn Johs Kolltveit, Jan Terje Karlsen, Kjell Grønhaug, (2007), Perspectives on Project Managementin International Journal of Project Management

SAMPLE ANSWER

Executive Summary

The Virgin Atlantic Airways is a UK-based individual owned international career that launched its operations in 1984 and flies close to 35 destinations in North America, Africa, and Asia. The company is owned by the Virgin Group that owns 51% of the shares and Singapore Airlines. Virgin Atlantic has close to 37 fleets and competes with other brand airline companies such as the British Airways that is the biggest and leading airline in the UK (Virgin Atlantic Airways Limited. 2015).  According to sources, Virgin Atlantic carried approximately 5.87 million passengers, a factor that saw the company make a profits margin of 68.5 million on its turnover of £2,650 million. This information clearly indicates the firm’s bright future in the aviation industry.

Virgin Atlantic also expanded its interests to include some international megastores software publishing, film and video editing facilities, music retailing, clubs and financial advice organizations, trains, within close to fifteen countries with an approximate of over one hundred companies (Virgin Atlantic Airways Limited. 2015). Virgin Atlantic has therefore been successful in its business initiatives, a factor that makes it our model of study in this paper.

Introduction

Many organizations in this contemporary society have been challenged in prospering financially to survive even in this turbulent unforgiving economic environment. However, Marketing plays a central role in mitigating these challenges. It is essential to note that the accounting, finance, and other business functions cannot hold up without sufficient demand for products and services that would enable a firm to make profits (Balmer, 2012). In other words, the financial successes of a company wholly depend on its marketing ability. These factors, therefore, point out to the need for a customer-centric and competitive marketing management plans that are essential for the prosperity of businesses.

The marketing department remains a fundamental element within an organization. The unit remains the central component within an organization that sets, implements and evaluates appropriate marketing approaches that are essential in meeting the demands and needs of the clients in a market. It also ensures that the customers are retained in order to build and sustain the functions of the organization (Balmer, 2012). The success of a marketing approach is centrally built on a thorough understanding of the market and the development of appropriate marketing synergies. In this modern times, there is need to develop and evaluate the performances of a marketing approach in order to boost the shareholders value and to achieve the marketing objectives of an organization.

This, therefore, calls for a complete understanding of the marketing management plans of a business in order to develop a framework that quantifies the marketing approach desired by a company. This paper, therefore, seeks to determine an appropriate marketing management plan for Virgin Atlantic Airways. Addressed in this paper will be the five stage consumer decision-making process and how these proponents can be related to Virgin Atlantic. An analysis of how the market in which Virgin Atlantic Airlines operates in and how it can be segmented will also be observed including the manner in which this company’s services and products are positioned in their customer’s minds. The paper will also address the factors that may impact Virgin Atlantic in the next five years through a (pest) analysis. Lastly, an outline of the marketing mix appropriate for this company will also be reviewed.

The Five Stage Consumer Decision-Making Process

Ignoring the truth that the consumers remain the master of the market, and ignoring the analysis of their demands, motives and behavior has the capacity to lead an organization into making wrong decisions which may result in the collapse of an organization. Modern marketing takes the consumers as the beginning and ending of its activities (Blackwell, Miniard, & Engle, 2005). In line with this approach, it is, therefore, essential that an organization plans, organizes, directs, and controls its activities and resources with the aim of satisfying the targeted consumer’s needs. This factor can only achieve through the provision f goods and services with the qualities and specification of the customers at the appropriate price, place, time and terms that are suitable to the consumers.

Consumer behavior, therefore, represents a set of activities that affect the buying power of consumers. This activities impact customers and determine when they are making purchases, whether or not they will purchase goods or services and in case they are, the factors that influence their final decisions on the particular product or service they intend to buy (Blackwell, Miniard, & Engle, 2005). Consumer behavior, therefore, reflects the behaviors that involve the complicated mental processes as well as activities that make a customer arrive at the decision to purchase a product. The behaviors of the consumers have can be impacted through a five stage decision-making process that involves;

Need recognition

This stage takes preeminence when consumers establish that they are in dire need for a product or service. There are several factors just to mention a few that have the capacity to prompt the needs of the customer for instance through advertisements and recommendations including promotions.

Information Search

It is imperative to note that once consumers are determined and have made the decision to purchase a service or product, they enter a process of searching for information about the product or service through various approaches such as the Internet, advertisements, print media and even personal recommendations (Blackwell, Miniard, & Engle, 2005).  At times, the organization that sells the product or service may also serve as a source of information to the customer. It is, therefore, essential that consistency in the provision of information to customers is maintained in order to increase their likelihood of conversation.

Evaluation of Alternatives

Once customers have the desired information, they take approaches aimed at evaluating the alternatives based on their personal interpretation. Sources reveal that customers are likely to a personal perception and view to the factors that they have gathered during the search of information such as the brands value, speed of service, perceived value, price and even the possible location (Blackwell, Miniard, & Engle, 2005). It is, therefore, essential that organization understand their clients in order to evaluate the alternatives by actually emphasizing the benefits and features of a product.

Purchase Decision

In this stage, the consumers decide what they want to purchase, and in a case where they have received a product or service that they are satisfied and happy with, then they are likely to repeat purchases in the future, a factor that clearly indicates they will not go through the other stages to arrive at this point.

Purchase Evaluation

This remains the final stage after the purchase of an item. In this, the customer takes a retrospective review of their purchasing decision against their assessment to determine the extent to which the service or product has met their needs, or if it has exceeded or failed to meet their demands. A positive evaluation is likely to lead a customer into repeating a purchase with the same company, and in turn will also give the customers to give word of mouth recommendations to other clients (Blackwell, Miniard, & Engle, 2005). It is, therefore, essential to note that branding remains an integral element at this stage since customers are likely to develop a high affinity for the product or service, a factor that will father influence their decisions.

Relating this Model to Virgin Atlantic Airways

Through the analysis of the consumers decision making approaches, Virgin Atlantic is therefore enlightened on the subtly influences that persuade its customers on using particular products and services of their choices. The model of the five stage consumer decision-making process is one that can be applied in various entities. It is important to note that Virgin Atlantic remains one of the leading airline carriers with an identifiable brand name, a factor that may influence the decisions of several customers into using its services and products (Gilligan, & Wilson, 2009). Customers may recognize that they have a need to travel for a holiday or to attend to business matters and in this; they may feel they want to use the services of an appropriate airline carrier that will suit their demands. Their needs may vary in terms of pricing, timing, availability, locations and so on.

An interested prospect that intends to use the services of this airline will therefore undertake a search for information to determine the various airline carriers that offer the same services. This information is therefore sources either from the Internet, friends who have used other airline carriers or even through the company itself (Gilligan, & Wilson, 2009). Virgin Atlantic has a developed social network platform that allows customers to interact with its employees in finding the right information that they need and making arrangements for the customers online.

Once the customers gather the information required, they evaluate the available alternatives. In this stage, the customers review the different variables such as the airlines prices, the times of the flights including other services that the company offers during their flights such as food, drinks, and other give always (Mitchell, Hutchinson, & Quinn, 2013). The clients then make their decision on purchasing their air tickets after carrying an evaluation that fulfills their demands. It is crucial to note that if the consumer has previously travelled with Virgin Atlantic Airlines, they are more likely to have an easier time in making their decisions.

In this last stage, the consumer then makes a post-purchase evaluation after their trip to determine if their needs were meet appropriately (Mitchell, et.al). Due to Virgins branding image, the customers are bound to develop an emotive personal connection that will influence their decisions in the future by using the services of the company. Virgin has therefore invested in creating a positive brand message that is drawn from its services image, a factor that has immensely scaled up its profits.
 Virgin Atlantics Market Segmentation and Target

It is essential to determine that market segmentation is one of the fundamental concepts of any marketing plan. The segmentation process of a market involves the precise adjustments that are made on products and the marketing efforts designed for the consumers (Quinton, 2013).  The process of segmentation therefore entails the sub-division of the market into small segments in terms of selected criteria and specificity.

Virgin Atlantic has become one of the leading brand name because of the segmentation strategy with its sales increasing immensely since its inception (Quinton, 2013). It is, therefore, vital to remark that the process of segmentation trades off customers requirements and needs against the production economics that occur among different airline companies. A Virgin Atlantic airline uses three primary variables in segmenting its markets. These variables include;

Purpose of Journey

Virgin Atlantic operates not only the usual journeys to New York to London, or from Delhi to London but have also designed some flight routes to other particular regions a factor that influences several customers who take their holidays in those locations (Quinton, 2013). The purpose of the journey, therefore, remains a fundamental element in its marketing segmentation, a factor that requires its marketing team to update regularly their promotions and deals in accordance with the marketing conditions and economic situation.

Length of Journey

Virgin also incorporates the length of a journey into its segmentation process. The company operates several flights within short distances and long haul distances (Quinton, 2013). Customers, therefore, have the capacity to choose their routes depending on these variables on the basis of competitor flight miles since distance also determines the rates of airfares.

Country or Culture of Origin

In its objective of becoming the best global brand, Virgin Atlantic is attempting to operate its flights throughout the globe. The company’s marketing team therefore develops, and design marketing plans based on the location and country they intend to venture. It is critical to mention that at some point, Virgin Atlantic sold its 40%stake to Singapore airlines in order to gain entry into the Asian market. These factors clearly depict the fact that marketing activities differ from one region to another.

Virgin Atlantic has therefore chosen more than one market segment as its target objective and considers every customer as its potential asset (Quinton, 2013). Virgins target market is therefore based on its market size, the company’s growth potential within a segmented market, competition, the company’s objectives and its feasibility of success in the market. The company, therefore, targets the upper-class customers who are typically business passengers and who travel on the transatlantic route.

Product/Service positioning in the Consumer’s Mind

There are several elements that pressure Virgin Atlantic to develop brand values that can communicate the need information to the company’s prospective consumers. This not only revolves around the individual personalities of the company but the characteristics and elements that help the company to distinguish it from its rivals (Quinton, 2013). In line with this, Virgin Atlantic considered a young international airline has over time developed a set of brand values that have immensely improved and positioned its products in the company’s customer’s minds. These values have provided the airline company with a unique image and personality that appeals to different clients, a factor has distinctively given the company a competitive advantage over its competitors.

Virgin has, therefore, set the standard of excellence in the provision of customer care. Through this, the company has also produced a number of innovative and unique products in its business functions that have not only become its hallmarks of service value but to the whole airline industry (Ryan, & Jones, 2009). The company has developed just two flight classes, the Economy and Upper Class thus abandoning the other three categories’ structure. This factor has pleased many of its clients and positioned its products and services positively in the minds of its customers.

Political, Economic and Social Technological Factors and their Impact

It is essential that Virgin Atlantic as an organization considers the environmental factors that may affect its operations in the next five years (Ryan, & Jones, 2009). The fact that an environmental analysis should be consistent and continuous since it feeds the developmental aspects of the organization, it is essential that it is carried out from time to time. The following PEST analysis provides the factors that may impact Virgin Atlantics operations over the term;

Political Environment

The political analysis of the environment remains a crucial element since it denotes the government’s interventions and legislations that direct the nature of business operations in different regions. These factors include the taxation policies, the merits of the services provided and the new interest’s rates (Ryan, & Jones, 2009). The government’s policies on marketing ethics and the policies of the economy may affect the company. It is also necessary to note that the changing laws on taxation in different regions that the airline company operates may also affect its functions if there are no strategies put in place in advance.

Economical Factors

There are also some economic factors that are also likely to affect the functions of Virgin Atlantic over the next five years; these factors may include the increments in fuel prices, congestion of airport terminals, recession including other environmental restrictions that may accrue such as insurance costs, security, inflation and employment levels per capita. Virgin Atlantic, therefore, considers trading economically over the long and short-term basis.

Social Technological

This element focuses on the different societal and cultural aspects that seasons and trends offer including the career attitudes. The social, technological influences, therefore, vary from place to place, a factor that forces Virgin Atlantic to focus on its customer’s attitudes and behaviors in different regions (Ryan, & Jones, 2009). The technological element is also an important component since it ensures that the airline company has put in place technological advancements that are apt such as the use of internet on its business functions, web development and IT solutions, e-marketing and social media advertisements.

 Adjustment of the Marketing Mix

To culminate the challenges that Virgin may encounter in the next five years, the company has to develop strategies geared towards preparing it for this challenges. This, therefore, requires that a marketing mix is developed that incorporates the long term effects that may impact the company. The marketing components of this airline company, therefore, include;

Product;

Virgin Atlantics products are designed to suit two classes; Economy and the Upper Class. The upper-class suit is different and out of this world since this product has been developed to provide comfort to the customers (Uggla, 2015). This product has won the prestigious company awards in the airline industry and remains an important element in ensuring that the customers are served well with technological inventions. On the other hand, the economy class serves a segmented class and is designed for the conditions of the market and depending on the new technologies.

Prices;

Virgin’s charges and fares are priced by the different routes and the class that a customer may require (Uggla, 2015). To mitigate the chances of facing economic losses over the five-year period, the airline company has decisively cut costs with the client especially during peak seasons. However, during off-peak periods, the carrier introduces cheap deals and discounts to encourage customers.

 Place;

The company is also developing more routes to enter and attract customers who are flying to different regions of the world (Uggla, 2015). The place will, therefore, play a significant role in Virgin Atlantics marketing approaches since the airline will be in a position to reach different areas.

Promotion;

The airline company will reward its customers who enter the miles program with the aim of providing better services to its clients. The company also seeks to provide the latest offers to its members.

Conclusion

The Virgin Atlantic Airways is a UK-based individual owned international career that launched its operations in 1984 and flies close to 35 destinations in North America, Africa, and Asia. The company is owned by the Virgin Group that owns 51% of the shares and Singapore Airlines (Urašević, 2015). Many organizations in this contemporary society have been challenged in prospering financially to survive even in this turbulent unforgiving economic environment. However, Marketing plays a central role in mitigating these challenges.

The success of a Virgin Atlantics marketing approach is centrally built on the thorough understanding of the market and the development of appropriate marketing synergies. In this modern times, there is need to develop and evaluate the performances of a marketing approach in order to boost the shareholders value and to achieve the marketing objectives of an organization. The airline company therefore needs to determine the behaviors and consumers-decision making processes in determining the best approaches that need to be incorporated in designing and selling their products and services to consumers.

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