1. Using the full spectrum of segmentation variables, describe how Virgin America segments and targets the market for airline services.

2. Which market targeting strategy is Virgin America following? Justify your answer.

3. Write a positioning statement for Virgin America.

4. Will Virgin America succeed in the long run? Why or why not?

There are far more failures among airline startups than there are successes. And in the past few decades, the most notable successes have pursued a low-cost/low-fare model (think Southwest, Allegiant, Spirit, Frontier, etc.). This case shows there is room in the market for an airline that doesn't try to beat the competition by offering the lowest price, but by offering the best service and the most appealing amenities. Virgin America is succeeding by doing these things and by targeting the right customer.