Marketing Strategy - Assignment

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Marketing Strategy
Air New Zealand Limited

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Table of Contents
Competitor Analysis...................................................................................................................2
PESTLE Analysis..........................................................................................................................3
Political Trends.......................................................................................................................3
Economic Growth and stability..............................................................................................4
Legal and Regulatory Issues...................................................................................................4
Technologic Advancements...................................................................................................4
Sociocultural Trends...............................................................................................................5
Environmental factors............................................................................................................6
SWOT Analysis............................................................................................................................6
Strengths................................................................................................................................6
Weakness...............................................................................................................................7
Opportunities.........................................................................................................................7
Threats...................................................................................................................................7
Development Competitive Advantages.....................................................................................7
Develop Strategic Focus.............................................................................................................9
Develop Marketing Goals and Objectives................................................................................10
References................................................................................................................................11

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Competitor Analysis
Qantas is one of Air New Zealand's biggest competitors, with a pre-tax profit of
$1,401 million reported in 2016/17, the second highest performance in its 97-year history.
Qantas has grown to become Australia's largest domestic and international airline. As one of
the world's leading long-haul airlines and one of Australia's most powerful brands, Qantas is
very popular and has a reputation for safety, operational reliability, engineering design and
maintenance, and customer service[ CITATION Our \l 3081 ]. Other major competitors which
affect the profitability of the company include United Airlines, Singapore Airlines, and Delta
Airlines. United Airlines is the biggest competitor of Air New Zealand because United has the
most aircraft and it is the biggest airline in the United States which is the biggest market in
the airline industry.
United Airlines has more than 89,800 employees, whereas, Air New Zealand has over
10,890 employees[CITATION Owl \l 1033 ]. The annual revenue of United is $49.4 billion,
whereas, the annual revenue of Air New Zealand is $5.1 billion[CITATION Owl8b \l 1033 ].
Although in terms of numbers, United Airlines has the edge over Air New Zealand, however,
Air New Zealand has a positive brand image in the market. Recently, United Airlines faced a
scandal in which a passenger was forcefully dragged off the plane by security which
adversely affected the market image of the company. Singapore Airlines and Delta Airlines
are major competitors because they offer competitive pricing to their customers that reduce
the market share for Air New Zealand. Following are various strengths and weaknesses of
Qantas which affect Air New Zealand since it is its major competitor.
Strength
Qantas has a stable profitable platform that strongly supports growth. Qantas and
Jetstar are the two most profitable airlines operating in Australia after a successful
transition over the past three years[ CITATION Whi18 \l 1033 ].
Qantas Airlines has always been one of the oldest airlines in the world, which is
trusted by consumers as a safe, stable and reliable company.
The corporation has a positive brand image in the market because it is known for
offering effective services to its customers at affordable prices. The loyalty program

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of the company is one of the best based on which most customers are loyal to
Qantas, and they prefer its services about others.
International presence with comfortable flying experience is a major factor which
businesses class passengers needs while travelling to long distances. Qantas is their
first preference because the company has a fleet size of 131 aircraft and it welcomes
its guest in up to 550 lounges around the world[ CITATION Qan18 \l 1033 ].
Weakness
Fixed prices, security incidents and other issues have damaged the image of the past.
Qantas’ international influence is limited compared to other leading global airlines
The airline faces many challenges in operating long-haul flights by balancing
profitability and demand with the right pricing strategy since deciding to start a
direct flight from Australia to Europe.
The international destinations of Qantas are comparatively lower than some of its
competitors. For example, United Airlines offer 108 international destinations to its
customers due to which loyal customers of Qantas also have to select an alternative
option when there is not Qantas flight available[ CITATION Uni18 \l 1033 ].
PESTLE Analysis
Political Trends
The political environment has a significant impact on the aviation sector because the
government continues to make changes in the regulations which affect the
operations of airlines.
The political stability in New Zealand is beneficial for Air New Zealand; however,
political instability in some of the major markets of Air New Zealand creates various
challenges for the company such as the United States, European Countries, and the
United Kingdom[ CITATION NHa14 \l 1033 ].
The corporation has a warm relationship with major markets such as China which
assist in providing it an open aviation market.
Changes made by the governments in taxation policies in aviation industry are a
major threat to the profitability of Air New Zealand.