Virgin Group

VIRGIN
GROUP
 >> VIRGIN GROUP
• Virgin roared onto the British stage in the 1970s
with the innovative Virgin Records, the brainchild of
entrepreneur Richard Branson, a high school
dropout who signed unknown artists and began a
marathon of publicity that continues to this day.
 The flamboyant Briton sold Virgin Records in
1992 and has gone on to launch more than 400
companies worldwide whose combined revenues
exceeded $24 billion in 2012.
 The Virgin name—the third most respected brand in
Britain—and the Branson personality help sell the
company’s diverse portfolio of branded air travel,
railroads, financial services, music, mobile phones,
cars, wine, publishing, and medical devices.
 The Virgin Group looks for new opportunities
in markets with underserved, overcharged
customers and complacent competition.
 Branson explained, “Wherever we find them,

there is a clear opportunity area for Virgin to
do a much better job than the competition. We
introduce trust, innovation, and customer
friendliness where they don’t exist.”
 Some marketing and financial critics have
pointed out that Branson dilutes the brand and
covers too many businesses.
 There have been some fumbles:
 Virgin Cola, Virgin Cosmetics,

 Virgin Vodka, and Virgin Brides have all but
disappeared. But despite the diversity, all Virgin
Group’s brands stand for quality, innovation,
and fun.
 Branson is a master of the strategic publicity
stunt and knows photographers will turn up if
he gives them a good reason.
 When he took on stodgy British Airways in

1984, he wore World War I–era flying gear to
announce the formation of Virgin Atlantic.
 The first Virgin flight took off laden with
celebrities, media, a brass band in full swing,
waiters from Maxim’s dressed in white tie and
tails, and free-flowing champagne.
 The airborne party enjoyed international press
coverage and millions of dollars’ worth of free
publicity.
 When Branson launched Virgin Cola in the United
States in 1998, he steered an army tank down New
York’s Fifth Avenue and blew up a Coca-Cola sign,
garnering interviews on network TV news shows the
next morning.
 In 2002, he plunged into Times Square from a
crane to announce his new mobile phone
business.
 In 2004, he appeared at a New York City
 nightclub wearing flesh-colored tights and a
strategically placed portable CD player to
 introduced a line of hip techie gadgets called Virgin
Pulse.
 Branson has attended press conferences dressed
in an astronaut’s suit and angel’s wings, driven
across the English
 Channel in an amphibious car, and even bared
his bottom to the press when Virgin Atlantic
landed in Canada for the first time.
 His good-natured humor and flamboyant
personality attract media attention and
customer admiration around the globe.
 Reports say Virgin’s press coverage equates to
$1.6 billion in media value per year.
 Although Branson avoids traditional market research,
he stays in touch through constant
 customer contact.
 When he first set up Virgin Atlantic, he called 50
customers every month to chat and get their feedback.
 He appeared in airports to rub elbows with
customers, and if a plane was delayed, he
handed out gift certificates to a Virgin
Megastore or discounts on future travel.
 Virgin Unite is a nonprofit foundation that
tackles global, social, and environmental
 problems with an entrepreneurial approach.
 A team of scientists, entrepreneurs, and
 environmental enthusiasts work with Virgin to
reinvent the way “we live and work to help
make people’s lives better.”
 Virgin Green Fund is a private equity firm investing in
renewable energy and resource efficiency sectors.
 Virgin established the Earth Challenge in

 2007 to award $25 million to any person or group who
develops a safe, long-term,
 commercially viable way to remove greenhouse gases
from the atmosphere. Submissions are being reviewed
by a team of scientists, professors, and environmental
professionals.
 Now knighted by the Queen of England, Sir Richard
never does anything small and quiet.
 He once said, “Lavish praise on people and people will
flourish; criticize and they shrivel
 up.”
 This philosophy has led him to many successes both in
business and in life.
 Whether looking for a new business, generating
publicity in his characteristic style, or
encouraging research to help the planet,
Branson does it with a bang.
 Questions
 1. How is Virgin unique in its quest to be a
socially responsible and sustainable company?
 2. Discuss the contradiction between Virgin’s
negative environmental impact (via air and rail)
and the green message
 and communication efforts behind endeavors
such as the Earth Challenge.

Virgin Group

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VIRGIN

 Branson explained, “Wherever we find them,

 There have been some fumbles:

 Virgin Cola, Virgin Cosmetics,

 When he took on stodgy British Airways in

 Virgin established the Earth Challenge in

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