Virgin on a loss of brand-loyalty

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Posted on Monday, September 24th, 2007 at 8:04pm. #

I feel I’ve not really travelled from Euston before. I must have done it before, but the place, the 1970s hateful nastiness that it is, confuses me every time. It also has dreadful traffic flow - it’s continually full of lots of people walking one way, and lots of other people walking another way, in a way that other stations appear to be fairly free from. Anyway, I was there this morning to travel to Birmingham, which is - shock - actually quite a nice place.

My journey there was interesting, since I ended up on a Virgin train for the first time. On jumping on, I recognised it instantly - not because I’ve ever been on a Pendolino, but mainly because it was the internal carriage that I saw, ad nauseam, on the Cumbria rail crash coverage. Which kind of made me a little anxious. I needn’t have been, mind - it was very comfortable indeed.

Delighted to see that on the in-seat audio, I could listen to various BBC Radio presenters - indeed, the live output from Radios 1 to 4 (run, I’m told, by a set of RDS FM receivers). Every type of radio was available to me; except anything from Virgin Radio.

Now, you might excuse this. Virgin Trains (49% owned by Stagecoach) and Virgin Atlantic (49% owned by Singapore Airlines) might sell Virgin Cola (I think wholly-owned by the same company that makes Panda Pops), but it’s under no obligation to do so; similarly, it’s under no obligation to place, in its in-seat audio service, any Virgin Radio (wholly-owned, this hour, by SMG plc).

Similarly, the soon-to-be-axed Virgin Digital music download service (at the time 100% owned by Branson) was free to promote Blueyonder Broadband (at the time 0% owned by Branson) at launch, rather than Virgin.net (at the time, 0% owned too, I think).

Virgin Media (100% owned by Branson) could, and did, promote CD purchases from HMV, rather than Virgin Megastores (then 100% owned by Branson) when it launched. Virgin Atlantic have been free to launch their own (Amex) credit card, rather than go with Virgin Money’s own credit card range. And I’ll lay a bet that corporate mobiles for most Virgin companies aren’t with Virgin Mobile.

Of course, it makes sense for any company to get the best deal possible. And if you’re advertising-funded, of course, take the money wherever you can. But you have to ask yourself whether this lack of brand loyalty - from its own brands - has been the brightest move on Virgin’s part.

The last month or so have seen Virgin Megastores in the USA being bought; and similarly for the loss-making Virgin Megastores in the UK, who’ll lose their name shortly (as well as shutter Virgin Digital) after selling, five years ago, most of their national stores. Virgin Media is apparently up for sale. Virgin Cars, Virgin Brides, Virgin Energy, the Virgin One Account, and many other UK Virgin businesses have long since closed.

However, in spite of shrinking in the UK, Virgin continues to grow outside of it, with Virgin Megastores France (long owned by Lagardere) rebranding Lagardere’s ‘Europe 2′ national French radio station as Virgin Radio France. A similar deal has happened in Italy, where Virgin Radio Italia is on the air imminently if not already. Virgin stations also exist in Thailand - seemingly part-owned by Branson - and Malaysia. Virgin is launching a cross-US airline, to go with its Nigerian operation. Virgin Mobile is in Canada, France, Australia, and many other places.

Virgin prides itself on its Britishness - Union Flags flying high on its planes and its US stores. Curious, then, that soon the most high-profile Virgin brand in the UK will be… its trains.

Mine was delayed 15 minutes, by the way.

Disclosure: I work for the BBC, and used to work for Virgin Radio. I still have £50 to spend at Virgin Megastores on a gift card. I never blog on behalf of my employer. Or past employers.

Tags: brand, brand-loyalty, radio, virgin, virgin-trains | Permalink | Comments RSS | Leave a response, or trackback.

11 comments

Martin said at September 24th, 2007 at 10:20pm

Virgin One (the bank account) has merely been rebranded The One Account - but their website’s still there. I stumbled upon it the other day when trying to find out about Virgin 1, the TV station soon to take the place of FTN.

William T said at September 25th, 2007 at 10:30am

I wonder if they can/ever will swap out the FM receivers and replace them with DAB (Five Live, for example, is a notable absentee in this list.) Of course, the locations and cuttings the train travels through may have lousy DAB reception…

Do you have to bring your own headphones? Many passengers listening?

Frankie Roberto said at September 25th, 2007 at 3:03pm

I never see anyone listening to the in-built radio on Virgin trains. Mostly I think this is because if you happen to have headphones with you, then you also have something else to plug your headphones into (your iPod, laptop, radio, whatever) - and the thing you own and are familiar with easily out-competes the in-built radio that you’re not familar with.

Of course, the exception might be if the batteries run out on your own device - but then the Pendolinos have power sockets, and iPod batteries last a while nowadays anyway.

Perhaps if all trains had a similar feature, people would be more likely to bring their own headphones specially - as it is, the feature isn’t something you’d expect, and is easily forgotten about.

The one good thing is that the on-train shop does sell cheapo headphones - but they never really seem to advertise this much.

Frankie Roberto said at September 25th, 2007 at 3:04pm

Oh - another interesting fact. New Eurostar trains have no payphones (as everyone has mobiles now), and instead have power sockets for chargers and laptops.

Helen Blaby said at September 26th, 2007 at 11:22am

You can buy a set of headphones in the buffet, I do believe. At least you could the last time I was on one (some time ago, cos I now drive to work - early shift perils)

I don’t mind Euston, James…it’s better than Kings Cross, imho.

Ben Perreau said at September 28th, 2007 at 4:06pm

What about Sky sponsoring the Virgin Radio breakfast show? Arf.

David Wright said at September 28th, 2007 at 6:24pm

Good article but….why is it a shock that Birmingham is a nice place?

Jack said at September 30th, 2007 at 3:53pm

Have just got back from a two week trip to Italy, and Virgin Radio Italia made the driving we did a pleasure. Found only after a desperate search of the dial after getting sick of all other Italian stations which, with the exception of Radio Maria (hymns) they all have Toto on heavy repeat, Virgin Radio was a gem. How the Italians will take to it however, what with its British continuity announcer, I don’t know.

John Parker said at October 5th, 2007 at 10:23am

On a recent visit (actually about 2 years ago) to Virgin radio I was also surprised to see fridges full of Coke and not a sign of Virgin Cola.

I’m not sure what you have to do to brand something as a Virgin product. Perhaps it’s a good policy, that it doesn’t necessarily bring benefits/obligations to other Virgin stuff.

Take a Darwinist view - each line has to survive in it’s niche or die. If Virgin radio had to promote Virgin Cola and it was rubbish, both products are tarnished to some degree.

James Clayton said at October 15th, 2007 at 6:15pm

I don’t think Virgin Media is 100% owned by Branson. He sold Virgin mobile to them for around and 18% share of newly merged NTL Telewest. The company behind Virgin Media is called NTL Incorporated, and they have a 20 year licence to use the Virgin name under certain conditions. Richard Branson is on the board of directors, but Bill Huff (sp?) is the guy who seems to be giving the orders and running things.

Farewell, then, Virgin Radio - blog - James Cridland said at June 1st, 2008 at 12:03pm

[...] in September last year, I wrote a piece about how Virgin companies didn’t care much for their own brands. I cited the example of Virgin Trains promoting BBC [...]

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Virgin on a loss of brand-loyalty

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