The potential space tourism leader group has been established in March, 1999 in London by Richard Branson and begins regularly send civilians into space from 2011. Booking a seat on VSS Enterprise spacecraft costs approximately ? 140.
000 which has been done already by 80. 000 customers by now. In exchange – after an only 3 days training at the Mojave Spaceport (where the construction of the spacecrafts take place as well) – the passengers can get a 3. 5 hours long sub-orbital space experience 21. 000 m away from the earth, enjoy and discover the weightlessness. The marketing mix (7Ps)Product – A suborbital flight for paying customers. Place – The passengers start their journey from Mojave Spaceport, California, USA – where they spend three training days before the day of the flight on Virgin Spaceship One. Price Product price: approximately ? 140.
000 ($200. 000) / person / flight. The price includes the flight, the training and the accommodation during the training days. Virgin Galactic do not offer any discounts at the moment. The idea of price planning is set up of a “low cost” airline, which offer relatively cheap spaceflights comparing to other space travel offers.Physical Evidence: The futuristic design of the spaceship interior and spacesuit what the passengers are wearing during the space travel. (Photos are on view at http://www.
virgingalactic. com/) Processes: Virgin Galactic operates with online booking system and worldwide customer service network which result an easy and smooth booking procedure for customers and therefore customers satisfaction. Promotion: • Virgin Galactic` s “Space Reel” advertising campaign ran over the world via the electronic media within days after its coming out and attracted the attention of millions of potential passengers. The company`s customer service is available personally or through the phone in numerous countries.
The well trained assistants are prepared for answering any detail about the flight and providing help in booking. People: Employers and Employees: Richard Branson, the owner of Virgin Galactic aims to recruit American citizens for specific positions (pilots, astrophysicists, engineers, maintenance team, spaceport staff etc).Applicants should have previous experience in aviation projects of NAVY or NASA, as they will become the ones who are going to ensure the safe and pleasant journey for the customers (passengers). PEST Analysis Political: The operation of Virgin Galactic is regulated by the Federal Aviation Administration which is part of the United States Department of Transportation. The body oversees and approval the design, maintenance and operation of the aircrafts and equipments, the license of pilots, engineers and the spaceport.
• Economic: At the begins when recession has started in the United States, it has brought all of its characteristics: below-average GDP grow, lower disposable incomes, higher unemployment, decreased consumer spendings. An economical correction was needed at that point of time, which has been done by The United States Government.The markets became calm again, the people have started to spend more, the needs were increasing to a point where a particular social stratum could and wanted to have something new. Apperantly recession was effecting on Virgin Group as well, all their developments stuck but we have to say – the timing of the coming out after all the technological tests and authority approvals – was brilliant. • Socio-cultural: The needs are increasing in society which also flares. The demographic datas are showing always bigger numbers, that also means more potential customers.As it has happened, when the Wright brothers built up the first successful airplane in the begin of the XX.
century and also, in 1969 when Neil Armstrong was walking on the moon for first time in the history – The Americans became very proud for their own people and products and continued the development of these products / projects. Nowadays travelling with airplane is a popular, widely used form of travelling. With the begin of space travelling, Americans are proud again of another american company which takes everyday people to the space for first time in the world`s history.Of course the first spaceport should built up in America, because the most developed aviation technology is there but not a little because of the American market and the people as well. In the world`s biggest market – where the technological back up is given – the country`s population is proud of its country`s product, therefore they not just discover something new with travelling to the space but they also support that company with using its service. If we consider the development of aviation in the past hundred years,knowing how quickly the technology can develop, we can guess on what way the space travelling going to improve in the future.Technological: As the commercial use of internet is dynamically increasing, it is very easy to reach the product. It opens the door to broaden the range of customers.
SWOT Analysis |Strengths |Weaknesses | |Stable economic background |There is no experience in the product`s long term usage | |World novelty |Richard Branson owns, direct and controls multiple companies. |Quality trained employees recruited from NASA | | |X-Prize Winner (Space competition,The first non-governmental | | |company which could launch a spacecraft into space) | | |Virgin brand is well recognized by public | | | | | | | | |Opportunities |Threats | |Build up worldwide network |Competitors may turn up soon | |Development of recent product |Fuel prices increased because of recession | | | | Porter`s 5 Forces [pic] Source: Bowie, D. – Buttle F, (2004) Hospitality Marketing – An Introduction. Elsevier Ltd. p 94; Industry Rivalry: Commercial space travel.As Virgin Galactic is the only one company in the world which provide this kind of service, – without competitors – the competition still not evolved. At the moment the company enjoys its monopoly position on the market. Suppliers: The different types of suppliers (fuel, utilities, etc) have power on Virgin Galactic as the company`s performance depends on them.
If there is increase in prices by the suppliers, Virgin Galactic should build it into its own product`s price which does not do a good turn for its business. Suppliers are able to distress Virgin Galactic with not supplying the needed product on time or at all. Buyers: The costumers have no power on Virgin Galactic, as it is the only company which provides the wanted product.
After the competition starts, they will be able to effect on the company with the chance of choosing a competitor (collectively). Substitutes: It is very difficult to find another way to travel into the space, however it exists. Since 2001 civilians can apply for a travel with Soyuz spacecraft to the International Space Station. The training for the space travel takes approximately 1 – 1,5 years and it costs about $20-35 million / person. Comparing it with Virgin Galactic, the only benefit is that guest cosmonauts with Soyuz can spend longer time in the space (at least 7 days). References “Employee retention in recession period” – http://www.
scribd. com/doc/29043221/Organizational-behaviour-retention-of-employees-in-recessionBibliography Books: Bowie, D. Buttle F, (2004) Hospitality Marketing – An Introduction. Elsevier Ltd. Grant, R. G.
(2002) Flight – 100 years of Aviation, DK Adult Journal Articles: Batey, A. (5th June 2010) Your flight is now departing from space terminal 1: The amazing story behind Branson’s Virgin Galactic project, Mail Online http://www. dailymail. co.
uk/home/moslive/article-1283188/Your-flight-departing-space-terminal-1-The-amazing-story-Sir-Richard-Bransons-new-Virgin-Galactic-project. html Amos, J (11th October 2010) –Virgin Galactic`s spaceship makes solo flight. BBC News Science ; Environment http://www. bbc. co.
uk/news/science-environment-11511604 Websites: Overview – from http://www. virgingalactic. com/overview/