Qantas Airways Limited Flagship Australia Case Study 2022

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Consumer Behaviour and Management Consulting
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Background of Qantas............................................................................................................3
Marketing Analysis of Qantas....................................................................................................4
Issues and Problems faced by Qantas....................................................................................4
Theories and its implementation............................................................................................5
Steps to be taken by Qantas to improve marketing................................................................6
Conclusion..................................................................................................................................6
References and Bibliography.....................................................................................................7
Appendices.................................................................................................................................8
Appendix 1.............................................................................................................................8
Questionnaire and Responses.................................................................................................8
Appendix 2.............................................................................................................................8
Transcript of Interview...........................................................................................................9

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Introduction
Consumers are the most important assets for a company and thus the management of
the organizations needs to do their best in order to fulfil all the expectations and needs of the
consumers. However, the proper segmentation and understanding of the behaviour of the
consumers is a complex process. The proper understanding and maintenance the needs and
demands of the customers however, will help to understand the behaviour of the consumers
and increase the number of loyal ones. Consumer Behaviour can be best described as the
study of the consumers and the different kinds of the processes that are there to choose, use
and consume the different kinds of the responses accordingly. The behaviour presented by the
consumers incorporates different kinds of sciences which are an important part of the total
process.
Background of Qantas
Qantas Airways Limited is the flagship carrier of Australia and the largest airlines
company of the country in regards to the size of the fleet and the presence in both domestic as
well as international destinations (qantas.com, 2020). The company holds the record of being
the third oldest airline of the world and thus have a huge passenger base not only in Australia
but also across the globe (qantas.com, 2020). The company currently operates a huge fleet of
wide bodied airlines as well as medium sized airlines that helps them to access different
destinations and carry a large number of passengers. The company currently operates around
132 flights across 85 different destinations (qantas.com, 2020). With more than 30,000
employees and a revenue of close to Australian$18 billion, the company surely has a large
share of market. Apart from the regular flights and the brand Qantas, the organization like
many other different airline companies of the globe has its own subsidiaries namely,
QantasLink, Jetstar Airways, Qantas ground services and many more as such that helps to
diversify its range of operations.

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Marketing Analysis of Qantas
The operations of Qantas Airlines which started way back in 1920, is undoubtedly the
largest carrier fleet of Australia and the flag carrier of the island country. The company which
has been nicknamed the “Flying Kangaroo” and also carries the same logo represents the
spirit of Australia as well as the company which has been able to overcome all limits and
barriers to reach the centenary year (qantas.com, 2020). The marketing strategy of the
company has been designed in such a manner that it has been able to mix and implement the
geographic, psychographic and demographic segmentation that has helped the brand to get a
clear understanding of the brand and the different customers who avail their services
(qantas.com, 2020). Qantas uses an undifferentiated branding strategy to address the different
demands and needs of the customers. Apart from servicing in the full time carrier service, the
introduction of the Jetstar Airways has helped the organization to meet the challenges of the
low cost carrier market. The company which owns at least 65% of the domestic market of
Australia has its plans also focused in freight as a large amount of revenue comes from
freight transport (Baxter, Srisaeng & Wild, 2018). Apart from this around 35%-37% of the
operating revenues for the brand is based on domestic and international flights (qantas.com,
2020). The customer analysis of the company can mark out the different loyalty based
programs that are important for the company. Such programs includes the likes of frequent
server program, Australian domestic and international flyers program and some more similar
to these programs.
Issues and Problems faced by Qantas
The theory of neoliberals on the idea of private ownership is quite important for
business success. They believe that private ownership is much more competent and much
more efficient than any other forms of ownership. The board of management of Qantas have
performed quite poorly in comparison to the other international airlines many of which are

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owned and operated by means of public management. In terms of domestic market, Qantas
shares an eternal rivalry with Virgin Airlines which has led to a number of issues for the
business organization (qantas.com, 2020). Apart from this there have been other major issues
that has led to different problems for the organization. The fight for the domestic market
share, the absence of getting a grip over the low cost sector has produced a capacity glut and
a huge down flow in ticket prices.
Apart from the above mentioned problems the trend of people shifting towards low
cost carriers for travelling to Bali or New Zealand has further intensified the competition.
This has been another major problem as because a majority fleet of the company including
wide bodied Airbus A380’s, Boeing 787-9 Dreamliner and the wide bodied Boeing 737-
400’s have all recorded below capacity bookings which have led to loss for the company
(qantas.com, 2020). The stagnant revenue for over a period of 5 years proves the view on
using the seats in an economic process. These issues have had a significant impact on the
growth and development of the organization in a proper and efficient manner (qantas.com,
2020). However, there have also been recent challenges that have led to significant problems
in the organization. This includes recent mid-flight evacuations, forced returns, death of a pet,
gender discrimination issues and many more as such. These marketing problems has had a
serious negative impact which have led to the diminishing reputation for the company.
Theories and its implementation
The modern day theories on consumer behaviour has different perspectives. One of
such perspectives is technology. Technology is considered to be one of the most crucial
elements of consumer behaviour and marketing and has the necessary presence that can help
to shape up the future of business and marketing (downloads.hindawi.com, 2020). The
changes in the technological patterns can bring in a significant change in the consumer
behaviour. The invention and use of smartphone and mini processor has changed the way

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people uses the technology. The following research thus clearly defines the proper analysis of
the creation of value through the use of technology. The use of modern fleets, modern
benefits, and digital flight bookings can entail success for Qantas.
Steps to be taken by Qantas to improve marketing
The management consulting company that have been appointed by the management
of Qantas to determine the new steps to market the airlines has to be done in a scientific and
calculated process. The scientific process will include a primary method as well as a
secondary method. The primary method will involve the conduction of an interview that will
involve one manager, two executives including one air hostess and two passengers. These
interview and the questions asked will pave the way to gather information for the current
marketing status and the best status that can be taken by the company in the future to ensure
success. The secondary process has been completed by selecting a research paper based on
technology as a part of consumer behaviour to analyse the performance of Qantas Airways.
Conclusion
The study of Consumer Behaviour is extremely important in the modern day business
world. The globalization of the business world has made the behaviour of the consumers to
be an important thing to study. The analysis of the consumer behaviour can reveal that the
feelings of the consumers, the influences of the consumers and the research they carry out
during shopping or marketing. In this particular report Consumer Behaviour has been studied
in a professional manner by selecting a particular industry and particular company. The report
here has selected the aviation industry as the particular sector for study and selected Qantas
Airways, as the particular business organization. The report here has presented all the current
issues and problems along with that of the different steps that can be taken by the marketing
consultants of the company to avoid the current situation. One of the most important features

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that makes the report presentable is the conduction and the implementation of both the
primary and secondary research methods to ensure success.

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References and Bibliography
Baxter, G., Srisaeng, P., & Wild, G. (2018). The role of freighter aircraft in a full-service
network airline air freight services: The case of Qantas Freight. MAD-Magazine of
Aviation Development, 6(4), 28-51.
Fly with Australia’s most popular airline | Qantas. Qantas.com. (2020). Retrieved 12 April
2020, from https://www.qantas.com/in/en.html.
hindawi.com./journals/complexity (2020).Retrieved 12 April 2020, from
http://downloads.hindawi.com/journals/complexity/2019/2837938.pdf.
Hurst, D. (2020). Qantas inquiry to investigate airline’s financial problems. the Guardian.
Retrieved 12 April 2020, from
https://www.theguardian.com/business/2014/mar/05/qantas-inquiry-to-investigate-
airlines-financial-problems.
Maryani, M. (2018). Regaining Company’s Reputation: What is a Brand and Who Cares
about Them? The Case of Qantas. Jurnal Ilmiah ESAI, 7(3), 164-172.
Qantas News, Research and Analysis - The Conversation. The Conversation. (2020).
Retrieved 12 April 2020, from https://theconversation.com/us/topics/qantas-562.
Raynes, C., & Tsui, K. W. H. (2019). Review of Airline-within-Airline strategy: Case studies
of the Singapore Airlines Group and Qantas Group. Case Studies on Transport
Policy, 7(1), 150-165.
Satterlee, C. (2020). Qantas's problem has a better solution: wholesale re-nationalisation.
the
Guardian.Retrieved12April2020,fromhttps://www.theguardian.com/commentisfree/
2014/mar/03/qantass-problem-has-a-better-solution-wholesale-re-nationalisation.

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Appendices
Appendix 1
The primary method will involve the conduction of an interview that will involve one
manager, two executives including one air hostess and two passengers. The operations
manager of the London Sydney route of Qantas, one air hostess of the New York- Sydney
flight of Qantas and one executive working for Qantas in Sydney has been chosen from the
company. Two passengers of two different flights of Qantas from Sydney has been chosen
for the interview. The base of the interview has been kept Sydney because of the ease of
conducting the interview and the presence of the necessary logistical support that can be
easily available in Sydney Airport. The Questionnaires and responses of the selected research
participants are as follows;
Questionnaire
Questions to Company Employees (Managers, Executives and Air Hostess)
1. Why do you feel Qantas has been able to hold the market share for such a long
time in Australia?
2. What do you think is the spark that makes Qantas so unique?
3. What are the major issues of Qantas currently?
4. Why do you think Qantas has to address these issues as early as possible?
Questions to Company Passengers
1. Why do you think Qantas is the best Airline of Australia?
2. What are the main reasons for you to travel with Qantas?
3. Do you think Qantas have any issues if yes what are the issues.
4. How do you think Qantas can get rid of the issues?

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Appendix 2
Transcript of Interview
Employee Transcript
Operation Manager:
The operations manager of Qantas for London Sydney route was selected for the
interview. He was very stable and answered all the questions with ease. Though he had a
feeling for the present sorry state of Qantas, he still had the belief of the bright future of the
company. The interview was taken in the VIP lounge of Sydney Airport operated by the
company. The manager took some time to reply to the questions and his answers were to the
point and never went out of the topic. On the first question on how the company was able to
hold the market share for such a long time, his answer was very simple, he replied that “the
name Qantas is enough for the answer of this question”. It is the brand name and reputation
of the company that has helped it to achieve this feat. His answer to the second question was
“the spark that was behind Qantas’s Success was dedication, hard work and change in
business”. On asking about the major issues, he was quite surprisingly direct to the point as
he never hesitated to show the limitations of the company. He said that lack of technical
innovation, absence of proper low cost strategy were the main limitations of the organization.
Lastly he replied that the company needs to answer these issues as early as possible because
of the rising competition and changes that were happening currently.
Executive:
The interview with the executive also took place at a different lounge and the attitude
of the executive was a bit too nervous as he feared about leaking any crucial information of
the company in terms of crisis. However, he gave the interview in a proper manner after
assurance of his hidden identity. On answer to the first and second question he replied that

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reputation and brand awareness were the two major themes that helped Qantas to achieve the
heights of success. On the other hand, his reply to the third question clearly brought out the
absence of proper strategic management in Qantas as he blamed the management of Qantas to
be not able to properly maintain a strategy that can help sustain the future of the company.
His answer to the last question was similar to that of the operations manager.
Air-Hostess:
The air hostess provided a short time for the interview because of her tight schedule.
Her responses to all the answers were quite same except her response to the third question
She replied that absence of proper form of marketing and presentation of proper services like
proper in flight experiences were something that have been bothering the company off late.
She explained that changes in customer experience can help to ensure business success in the
most effective manner.
Customer Transcript
1st Customer:
The 1st customer selected was traveling from Sydney to New York. She was quite
amazed and excited when she heard about the survey and actively participated in the process.
On reply the first question she said that Qantas being such an old Airlines, serving such a
large number of passengers and most importantly having a varied fleet of airlines certainly
speaks for itself. Whereas, as a passenger she believes that Qantas having the best crew
members, easy airport clearances can be said to be the best for her. The current issues with
the death of pets, problems with cancelled flights are the major issues of the company.
According to the customer professional marketing approach can be the answer to this
problem.

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2nd Customer:
The second customer was a passenger of the New Zealand bound flight of Qantas and
he also repeated the same as far his liking for Qantas was concerned. However, he added that
the absence of a proper strategic marketing for the company was more than enough for its
failure to maintain a strong low cost carrier fleet. This was the reason behind a large scale
shift of passengers to other low cost carriers for small time flights like Bali and New Zealand.
The analysis of the interview responses of the employees and the customers thus
suggests major problems in store for the company. The need of the hour for the management
of Qantas is to formulate and implement a strategic management plan that can help address
the issues and problems of the organization.