A SWOT and marketing examination of Virgin Media

Services marketing are a kind of marketing which targets offering services. Services can be complicated to sell and the marketing strategy for them is a lot different than the methodology for products. Some companies offer both products and services and must use a mixture of styles; for example, a store which sells phone also will offer services such as assisting people select cellphone as contract and providing broadband service and telephone repair. Such a store must market both its products and the helping services it offers to charm to customers.

When people market services, the goal is never to get customers to buy a product, but to get visitors to do business with a specific company, often in a particular location. For example, virgin mass media offers broadband and internet service: It offers mobile phone, internet and Television set service for the clients, both on-site and in to-go form oftentimes. When the business trading markets itself, it must persuade people that it surpasses other broadband which its facility is worth the trip.

Virgin Media can be an innovative new marketing company that was shaped therefore of the merger between NTL and Telewest and a re-branding as Virgin Mass media. Its main power lies in the branding and the invention that the name Virgin offers. Internally, Virgin Marketing is really the only company in britain that offers all of the key mass media services, i. e. digital television set, broadband, fixed lines telephone and cellular phone packages. The ability to offer the products all together in a single bundle is the unique selling point of Virgin Press and clearly models the company aside from its competitors.

Swot analysis

Swot examination is the main and first stage of planning. It is a feedback system to make new approaches for any organisation. Advantages, Weaknesses, Opportunities and Threats are the four components of a swot analysis. Weaknesses and Talents are correlated and study the internal area of the business research whereas Opportunities and Risks offer with the external environment of business operation. Weaknesses and advantages refer to aspect of marketing, finance, processing or organisational framework. Swot analysis helps clarifies the targets of the organisation


In offering these combined services, the company has significant economies of scale as with the ability to combine many of its generic roles such as administration and funding, thus allowing the company to price more competitively for the advantage of its customers. Because of its perceived leading brand in the marketing, Virgin Media has were able to secure a continuing agreement with Sky, stretching further still its inclusive offering to its customers. Technical ability and infrastructure are also two of the key internal advantages of the business, which have been exploited to produce a market leading position.


Despite this, the business does have some internal weaknesses that need to be maintained. The merger between NTL and Telewest continues to be relatively new and there are social clashes between the two styles and the growing Virgin style. In recent years, there have been several redundancies and outsourcing of customer services, so that they can lower costs. It has led to a amount of unsettled behavior and insufficient loyalty from staff. Due to the size and complexity of the growing company, there are likely to be ongoing conflicts which will need to be supervised if this ethnical shift is never to impact on the client experience.

Opportunities and Threats

Externally, the opportunities and hazards facing Virgin Advertising are ever changing. The multimedia sector is growing an exceedingly fast pace, leading to both opportunities and hazards for companies such as Virgin Press. Opportunities are widely available for Virgin Advertising, mainly in offering value added services such as online gaming or even more reliable broadband relationships. Bundling these mass media services jointly, as Virgin Press has already done offers yet further opportunities within the advertising sector, in conditions of grasping higher market share. Consumers like simple, one-stop shopping as it pertains to the mass media options available; this is something that Virgin Multimedia can continue to exploit, particularly given that it has agreed upon an arrangement with Sky.

Threats to Virgin Advertising result from other similar advertising companies such as Orange or BT who remain as large players on the market. In particular, Virgin Marketing is rumoured to get difficulties with its infrastructure stability, which could potentially allow competition such as BT to increase market talk about. The media sector as a whole is extremely fast paced; therefore, the primary threat is that Virgin Mass media may neglect to keep tempo, thus sacrificing its customer bottom to some other more ground breaking company.

The bloom of service

Facilitating elements(services)

Information: Customers often require information about how exactly to obtain and use a product and services. They may also need remainders and records. Example,

Of virgin broadband information services are: Route to service site and using instructions, caution and insurance, terms and condition of services.

Order taking: Many goods and services must be purchased or reserved beforehand. Customer must know what available and may want to secure commitment to delivery

Billing:"Just how much will i owe you?". Customers have earned clear, correct and intelligible expenses and assertions.

Payment: Customer may pay faster and even more cheerfully if Virgin makes ventures simple and convenient to them.

2) Enhancing services

Consultation: Value can be added to goods and services by offering advice and discussion.

Safe keeping: Customers favor not to stress about caring for the personal possessions that they bring with these to something site.

Exceptions: Customers appreciate some versatility in a small business when they make special need. They expect it when not everything goes relating to plan.

Hospitality: Customers who make investments commitment in visiting a company and which consists of services are worthy of to be cured as welcome friends.

User Preparation

When employing new system, it's important that workers, employees, managers and others in the organization are prepared for it. This technique is also called procedure for readying the decision makers, managers, employees, and stakeholders for a new system. In this regard, individual training becomes very essential, because without it the success of the system cannot be guaranteed. This technique of user preparation is designed and executed properly and engaged a lot of set up, and consideration (Stair & Reynolds, 2008).

Virgin Media, the UK's leading fibre-optic broadband service provider presently has almost 60, 000 SME and general population sector broadband clients, but has declared that it's looking to develop this significantly.

Virgin Press has unveiled programs to target the small and medium business customers of its rival broadband large BT.

The move comes immediately after BT's dedication to undercut Virgin Media's personal super-fast broadband prices, with its new fibre-optic broadband service which BT is moving out this year.

There is an extremely big market shared, as small and medium-sized businesses (SMEs) spend about 18bn per annum onto it and telecoms.

Virgin Media currently have revenues around 600m pa from business broadband customers which is forecast to go up to about 1bn pa in 3 to 5 years.

Virgin Media chief operating official Andrew Barron said: "This is another step forwards. We have been working in the business division for 18 months on getting the business processes to the right level. We've increased it dramatically. We are able to use the fibre-optic network to identify ourselves. "

Marketing communication Combine

The marketing mix is the group of controllable tacticle marketing tools that the organization blends to produce the

Response it desires in the mark market (Melewar. T. C. , & Saunders. J, 2000)

Marketing communications are the means by which firms try to notify, persuade, and remind

consumers directly or indirectly about the merchandise and brands that they sell. An organization s total

marketing communication combine also called promotion combine (Kotler, 2005) involves specific blending of

advertising, personal offering, sales promotion, pr, and direct marketing tools that are used

by company to go after its advertising and marketing objectives.

The marketing communication activities which donate to the

marketing of any new or existing product: by creating knowing of the brand; linking the right

associations to the product's image in the consumer's memory space, facilitating more robust consumer-product

connection etc.

Current prolonged marketing mix marketing mixture.

People - People is one of the components of service marketing combine. People define a service. . In case of service marketing, people can make or break an organization. Thus virgin press nowadays are participating into specially getting their employees trained in interpersonal skills and customer service with a target towards client satisfaction. In fact many companies have to endure accreditation showing that their staffs are better than the others. Definitely a USP in case of services.

Process - Service process is the way in which something is delivered to the finish customer. The process of something company such as virgin multimedia in delivering its product is of utmost importance. Additionally it is a critical part in the service blueprint, wherein before building the service, the company defines exactly what ought to be the procedure for the service product reaching the end customer.

Physical Data - The final aspect in the service marketing combine is an essential element. As stated before, services are intangible in nature. However, to make an improved customer experience tangible elements are also supplied with the service. Physical information is employed as a differentiator in service marketing.

This is the service marketing blend (7p) which is also called the prolonged marketing mix


Positioning in different areas is not necessarily easy (I could say it is too difficult). Virgin Group was alert to the down sides so they had to take into account the Virgin brand. They have never entered in an enterprise before doing sound researches and evaluation. They have analyzed the industry and tried out to look from customers' sight. They were aware of the trade-offs they had to think before entering a new business venture plus they haven't underestimated the potential risks behind new entry.


Virgin Press launched to much fanfare in February 2007, with a public relations event and a pricey advertising campaign which covered major UK television set channels, newspapers and billboards. In order to increase awareness of the group and its own services, Virgin Media's plan used bright red shades to portray its brand image. Recent[upgrade] television set advertising featured celebrity Uma Thurman and comedienne Ruby Wax, and presently[update] features actor Samuel L Jackson, whilst the print advertising features bold typography. Virgin Marketing also sponsored the Channel 4 reality TV show Big Brother before end of the ninth series.

Virgin Advertising Business/

On Thursday 11 February 2010, Virgin Multimedia declared that its business department would be rebranded as Virgin Press Business with immediate result. The company, which had been functioning as ntl:Telewest Business, is currently the most significant B2B brand in the Virgin Group. This marked the finish of the NTL and Telewest being utilized by the company.

Virgin Marketing Business is the UK's only telco with a nationwide fibre optic Next Generation Network. Organisations working with Virgin Multimedia Business include London City Airport terminal, Arqiva, Hampshire and Isle of Wight Relationship and South West Water.

Consumer behaviours

"Understanding how consumer behaviour is changing will be an important requirement of Virgin Media's approaching music offering and, as long as they become regulation, the Government's legislative proposals will additionally require measurement of the amount of copyright infringement on ISPs' sites. Detica's CView technology potentially offers a non-intrusive solution which enhances our knowledge of aggregate customer behavior without identifying or storing individual customers' data. "

Consumer Segment

We face strong competition from a variety of entertainment and marketing communications service

providers, that offer similar broadband internet, television set, fixed range telephony and mobile

telephony services. In addition, technological advances and product inventions have increased, and will

likely continue steadily to increase, the number of alternatives available to our customers from other providers

and intensify the competitive environment. See ''Risk Factors-We operate in highly competitive

markets. '' However, we believe we have a competitive advantage in the U. K. home market

due to the superior specialized capabilities of the cable network within the network of the incumbent BT,

which many of our competitors rely to provide their services. We also face powerful competition in

the mobile telephony market, mostly influenced by increased costs pressure from both established and

new providers, growing customer needs and technical developments.

We offer the majority of our products over a stand-alone basis or within bundled plans designed to

encourage customers to subscribe to multiple services. You can expect broadband internet, set line

telephony and mobile telephony and data services throughout the U. K. , and currently offer television

services specifically in areas dished up by our cable connection network

Segmentation, Targeting, Placement (STP)

Before start think about marketing (4P), you must know very well what is STP. Terms of STP include : market strategy; focus on markets; placement; market segmentation and focus on marketplaces; market segmentation and demographics


Segmentation : Determining all segments for the product/service. Lots of the resources stated in module 3 will be helpful to you when you develop segments. To get useful, sections should be


Accessible (is it possible to reach them)


Distinct from one another

the target of segmentation is to find attractive marketplaces. Strategies include

Break market into components

Regroup into market segments

Select which segment to target


Virgin Media happens to be number two in the home broadband market in the united kingdom, but it certainly doesn't desire to be left behind as it pertains to broadband on the move. The business has its own-brand mobile phone service, so it's wasn't that much of a leap for this to include mobile broadband in to the mix.

Virgin is offering mobile broadband with a quantity of different bargains. For example, if you are already a Virgin customer using it's XL (20Mb) or L (10Mb) wire broadband deals or its ADSL Bundle 1 offering, you can get mobile broadband with a 1GB utilization allowance for yet another fiver per month. If you're on one of the lower-end home broadband offers you can get the same deal for a tenner a month.

However, for this review we're looking at the typical retail load up which targets people who don't curently have a Virgin service. This offer costs 15 a month with an 18-month contract for a 3GB regular monthly download allowance and a free USB modem


Positioning can be an essential aspect and skill in good marketing. Perceptual maps are being used to look for the position of a product, firm, person, service or idea. Positioning maps or perceptual maps can be simple, yet quite effective marketing tools. One classification of Setting Theory is: the knowledge of perceptual strategy. It is predicated on a theory that strategy can only be prepared in the mind of the buyer, not the software industry*.

It is important to understand the competitors because positioning applies by any means levels of competition. For example

Product Level

Corporate Level

Industry Level

The STP Process

The growing use of the STP process has happened as the result of the prevalence

of mature marketplaces, the greater variety in customer needs, and the power to

reach special or niche segments. So marketers are increasingly segmenting

markets and identifying attractive segments (i. e. who to focus on and just why?),

in order to recognize new product opportunities, develop suitable positioning and

communications strategies (i. e. what meaning to talk), and effectively

allocate resources to key marketing activities (i. e. how much should we spend

and where?). Organizations will most likely fee segmentation research when

they want to re-scope their marketing strategy, check out a declining brand,

launch a new product, or restructure their pricing plan. Organizations operating

in highly energetic conditions seek to execute segmentation research at

regular intervals, to keep in touch with changes in the marketplace.

STP identifies the three activities segmentation, targeting, and positioning


1. Virgin Marketing, fourth quarter 2007 results display, February 2008.

2. Carphone Warehouse Plc fourth one fourth trading upgrade, April 2008.

3. "Domestic Competitive Market Review", 2004, Ofgem.

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