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Live From DMA06: Richard Branson and The 37-Year-Old Virgin
Oct 17, 2006 9:31 AM
, By Richard H. Levey
Whether trains, planes or cola, Richard Branson is bent on putting his brand on any industry he deems as needing a well-run enterprise. And after 37 years of diverse endeavors his brand, Virgin (or, formally, the Virgin Group of Companies) has been stretched without breaking. Not too shabby, considering the brand almost wasn't. The name--chosen during a late-night bull session among friends for its edginess--was denied registration by England's patent office as being "too rude." "I had to write long letters explaining that 'virgin' was the opposite of rude," Branson said during an opening keynote address at the Direct Marketing Association's annual conference. But it was edgy. Since 1970, when it was founded as a record distributor, it has attracted a number of artists to its roster, including The Sex Pistols, Culture Club and Genesis. Not bad for a small startup with its roots in direct marketing--Branson's first sales channel was a direct response flyer that listed the records he sold. Branson has subsequently expanded the Virgin umbrella over a variety of businesses, including financial service products (including personal loans, credit cards, insurance); telecommunications (mobile phone service, accessories, ringtones); entertainment (racing packages, Internet gaming, books); and many, many more. And of course, Virgin Atlantic, the airline he started after chartering a plane to take himself, his wife, and a passel of stranded tourists whose flight to Puerto Rico had been canceled. (He based the ticket on the charter price of the plane divided by the number of passengers he knew he could sell seats so--without, of course, including the two seats occupied by himself and his wife.) That flight started another Branson/Virgin tradition--that of naysayers
telling him he couldn't make an endeavor work, and him proving his
critics wrong. On board, he confided in a fellow traveler that he was
considering starting an airline. His seatmate informed him that he
couldn't possibly make any money running an airline. Branson, who was
turning a profit on that flight, didn't bother to correct him. |
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