How did Virgin Blue continue its life cycle?

Every product has a life cycle; the length of time until a product becomes unfashionable, or out dated. The aim of every business is to prolong this lifecycle before it hits stages 5 and 6; Saturation and Decline respectively as seen in the diagram below. Often it is necessary to rebrand the product to extend its life cycle; stage seven of the diagram.


Figure 1: Graph to show the change in a product life cycle. (Marketing Strategy, 2015)

Virgin Blue (VB) was launched in 2000, as an Australian airline. Over the next ten years they managed to accumulate a fleet of 91 aircrafts, however they had entered the saturation phase of the life cycle (MarketingMag, 2012). In 2010, VB reported an “underlying net profit before tax of $72 million, down almost 63 per cent” (‘Australian aviation’, 2011) stressing the importance for an extension strategy – enter John Borghetti, VB’s new CEO. Borghetti was brought in to rebrand VB using the ‘game-change’ strategy.


The idea was to move away from low-cost flights towards a luxury airline through marketing and brand revitalisation. They changed their name to Virgin Australia and changed the brand identity dramatically, which included creating new uniforms and improving the interior and exterior of the planes. (‘Virgin Australia History’, n.d.). Virgin Australia saw huge beneficial results including; “climbing up the global rankings from 32nd in 2011 to 12th in 2012”, and having a “yield growth of 12.2%” (MarketingMag, 2012).

This week I have worked on my personal branding by updating my CV to try to stand out from the crowd, whilst also creating an overall image that a potential employer is looking for. It has been challenging, but today I found out I have passed the first round to work for Dyson which was based purely on my personal branding, so I am very pleased that the improvements seem to be paying off.



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