Qantas Airline Performance and Customer Service

This assignment explores Qantas airline's role in the Australian economy and its efforts to improve performance and customer service. It examines the complexities of customer behavior and how Qantas aims to satisfy diverse travelers seeking the best deals. The analysis considers various factors influencing Qantas's performance, including environmental concerns and market competition.

Running head: INTRODUCTION TO MARKETING
Introduction to Marketing
Name of the Student:
Name of the University:
Author Note:

1INTRODUCTION TO MARKETING
Executive Summary
This paper has carried out an in-depth analysis of Qantas Airways with reference to the history
and current market conditions of the company. The importance and value of SWOT analysis in
general and with regards to Qantas airways is also discussed in the paper. Further, analysis of the
external as well as the internal marketing environment of Qantas airways is also highlighted in
the paper. Recommendation is also provided in relation to the introduction of new service by
Qantas airways and the customer value provided by this new service is discussed in the paper.
Moreover, the 4ps of Qantas airways is also highlighted in the paper. It can be said that Qantas
airways will run a profitable business if it opens up new services in different routes and a private
jet service and thus expand its business accordingly.

2INTRODUCTION TO MARKETING
Contents
Section1...........................................................................................................................................3
Introduction and Background of the company................................................................................3
Introduction to the task, definition, purpose and value of SWOT analysis for Qantas Airways.....3
History, current market condition and product line of Qantas........................................................4
Section 2..........................................................................................................................................5
Analysis of the internal and external marketing environment of Qantas Airlines..........................5
Section 3..........................................................................................................................................7
Target Market..............................................................................................................................7
New product recommendation and justification..........................................................................8
4Ps of Qantas Airways.................................................................................................................9
Section 4........................................................................................................................................11
Recommendation.......................................................................................................................11
Conclusion.................................................................................................................................11
References......................................................................................................................................12

3INTRODUCTION TO MARKETING
Section1
Introduction and Background of the company
Qantas Airways is considered to be the flag carrier of Australia and it is one of the largest
international flight carrying passengers to different locations. Qantas Airways is also considered
to be the third oldest international flight after KLM and Avainca. Qantas has merged with the
domestic airlines i.e. Australian Airlines. Gradually, with the passage of time, it was privatized
and there were more than 51% shareholders who purchased different shares of the company.
Qantas is certified with 4 star rating for its onboard quality of product range and services. The
company is operating its business through the following segments i.e. Qantas Loyalty, Jetstar
Group, Qantas Domestic, Qantas International, Qantas Frieght and Qantas Corporate. The
headquater of Qantas Airways is situated in Qantas Centre Bayside Council, Sydney, New South
Wales. The company has also operated a large number of passenger airline since its original
inception and this includes the Impulse Airlines, Australia Asia Airlines, Australian Airlines,
Network Aviation, Qantas Link, Jetstar Airways and Jet Connect. Moreover, the company has
also operated a freight service known as Qantas Freight and this is wholly owned by the air
freight and logistics company (Qantas.com 2018).
Introduction to the task, definition, purpose and value of SWOT analysis for Qantas
Airways
This paper will help in the identification and description of the targeted market of Qantas
based on the four main segmentation basis. It will also highlight the external and the internal
marketing environment. The history and the current product lines of Qantas are also discussed in

4INTRODUCTION TO MARKETING
the paper. Moreover, recommendations have also been given to identify the new target market of
Qantas and also explain the value that is provided by the new product line of Qantas. Further, the
strategies for relevant marketing mix variables are also described in the paper.
SWOT analysis is undertaken to identify the internal as well as external strength and
weakness, opportunities as well as threat of the company. The value of SWOT analysis for
Qantas is that it provides a straightforward and analytical framework that will help in the
evaluation of the business organization from all possible sides. It also helps to find out and
analyze where Qantas will have a competitive edge and the areas where it must improve
(Bamber 2015).
History, current market condition and product line of Qantas
Qantas was set up in Queensland and the first airline of this company was Avro 504K.. In
1934, British and Qantas Imperial Airways tried to form a new company Qantas Empire Airways
Limited. The main competitor of Qantas, Ansett Australia has collapsed in 2001 and this has
raised the market share of the company to 90% (Qantas.com 2018).
Qantas has tried to report an underlying profit and this is considered to be $1,401 million
in the year 2016-2017, which is one of the second highest performance in the history of the
airline industry. According to the annual report of 2017, the return on invested capital was 20.1%
and the return of the shareholder was upto $500 m. Qantas flies A380 between Australia and
USA. Moreover, the company has more than five Boeing Aircraft and this runs only on selected
routes. The six newly fitted airlines will operate on long routes only and more than nine new
airlines will be added in these fleet (investor.qantas.com/annual-report 2017).

5INTRODUCTION TO MARKETING
Section 2
Analysis of the internal and external marketing environment of Qantas Airlines
The external environment of Qantas is complex, turbulent and it becomes difficult to deal
with these situation in an effective way. PEST analysis must be undertaken to analyze the
external marketing environment and this has direct impact on the performance of Qantas
airways. The political factor is considered to be the most vital factor that affects theperformance
of the industry. The political issues that are faced by Qantas includes corruption, political
stability and tax. Qantas must also have proper license in the operation of their business and thus
it must try to keep control of the different petroleum exporting countries that will lead to increase
in the fuel price (forbes.com 2018). It can be said that the economic issues such as inflation in
the currency rate also affects Qantas and there will be instability in the economy. The change in
the foreign exchange rate also affected Qantas and it has led to fall in the profitability rate of the
country. Moreover, technological innovation has also helped in the development of Qantas
airways. The airlines has the system of online booking and the expectation of the customers are
very high regarding the use of technological services and products. Qantas also has many
customers and this airline industry has played a major role among the Australian people. It has
also a better brand identity and this is considered as a national symbol for the Australian people
(Liet al. 2016). It also offers different types of services and uses low cost price to attract the
purchasing behavior of the people. It can be said that there are certain legal aspects of this airline
industry and it helps in maintaining safety and health rules among the employees and the
customers. Moreover, this airline also follows the employment rules and regulations and thus try
to maintain hygiene inside the airline. This law is also applicable to the employees of Qantas
Airways and thus this has helped in the development of the company (abc.net.au 2018).

6INTRODUCTION TO MARKETING
The SWOT analysis of Qantas airways is mentioned in the table below:
Strength
 Has strong dominance in the domestic
market of Australia.
 Offers transportation services in
diversified geographic locations
 Access to profitable domestic routes
that contributes towards higher rate of
profitability
 Forming alliance with other airline
groups and therefore trying to do
monopoly.
Weakness
 Industrial action dispute
 The rumors that has spread in different
countries regarding the acquisition of
Qantas by Ethiad group
Opportunity
 Achieving higher level of growth in the
international market by seeking
permission for foreign direct
investment in the country.
 The growth in the Australian domestic
market will also boost up the market
and help in the growth opportunity of
Qantas Airways.
 Global aviation partnership in Emirates.
 Further expansion of the operation of
Threat
 Competition from other low cost
airlines.
 Rise in the fuel price.
 The different regulatory conditions
subjected to the operation of domestic
as well as international laws,
restrictions and regulations.
 Steep competition from other airline
industry in the international market.

7INTRODUCTION TO MARKETING
Jet star carrier
Figure: SWOT analysis of Qantas airways
Section 3
Target Market
It can be said that the market segmentation of Qantas Airways is considered to be
complex in certain cases and this is because of the different needs, requirements, expectations
and segmentation. The position of Qantas airways is that it provides topmost quality services as
well as best comfort among the other airlines running on the same route. The targeted audience
of Qantas airways are the business class travelers who travel across different countries in
Australia or abroad. This can also be further classified into conference travelers, routine travelers
and emergency business class travelers. Moreover, the leisure travelers are also the targeted
customer of Qantas airways. This airline also gets multiple destination travelers as well as
weekend tourists and thus earns a major portion of the revenue through them. It can be said that
the targeted audience of the company are mainly the affluent and the middle income-earning
customers who prefers to travel to different destinations with ease, comfort and luxury. The
airlines also operates customer loyalty program that is known as Qantas frequent flier. It is also
effective towards drawing the customers and thus categorized them frequent business travelers
(Cui 2017). There is variation in the flight booking system, allocation of seat, in-flight services,
additional guidance services as well as a better safety record. It is also the responsibility of
Qantas to know why they must target only a few customers and how to develop these targeted
market. Although, it can be said that Qantas carries out targeting with the help of segmentation

8INTRODUCTION TO MARKETING
and this is necessary to fulfill the needs and wants of the customers. Moreover, it will also help
in making better relation with the customers (Qantas.com 2018).
The customers who travel for the purpose of leisure can be divided into two broad
segments i.e. tour segment, weekend segment and multi destination tour segment. These
categories can also be divided demographically into two types of categories i.e. based on age,
family life cycle, income and sex. It can be said that Qantas can be considered as a full premium
carrier segment and it also adjusts according to the changing demands of the customers. It is also
trying to establish a number of new airlines with its own target market. Moreover, these brands
can be categorized as differentiated brands and thus they have different appeals to the customers.
The airlines also provides two classes of services including Star Class and thus it will help in
delivering better service to the customers (Lucarelli 2014).
New product recommendation and justification
Qantas Airways must start private jet services and this will the premium customers to
enjoy the services that is provided by this airways. It will offer several opportunities to
experience and thus travel with luxury in comfortable cabin classes. The leather seats and the flat
bed experiences will make their comfortable and thus they will be willing to travel in this private
jets and experience a comfortable journey. These private jets will be preferred by the premium
segment and the business class because these jets will not have hundreds of seats and they will
have individual board tables. This will make transportation super efficient and thus the customers
will be more attracted in their services. The frequent flyers and the home market are considered
to be the jewels of Qantas Airways and it can be said that these customer segments will be
willing to purchase these services if Qantas will start up private jet services. The Government of
Australia must also take initiative to start up these services and thus these will increase the

9INTRODUCTION TO MARKETING
market share of the company. These will boost the shares of Qantas and other international
competitors will be in steep competition with the company. The profitability of the company will
also increase with the passage of time and people will enjoy the services that will be provided by
these airline industry.
The private jet services that will be started by Qantas has various social responsibility
such as focusing on the customers, diversity, integrity, diversity as well as leadership. They will
try to value their customers and thus provide them respect, honesty and trust with the services,
They will also be responsible for accountability in their thinking process and thus protecting the
environment. They will also try to protect their employees in the workplace and thus provide the
customers with the safest services. Qantas will try to provide high standards for the performance
and try to fulfill the needs as well as the demands of the customers. They will try to make their
customers happy and strive to meet towards their goal. This will inspire the airline to be
successful and both the management as well as the customers will try to work together among
the diverse workforce and thus serve a diverse population group (Cui et al. 2016).
4Ps of Qantas Airways
Product
With the growing competition in the airline industry, Qantas plays a vital role in the
process of product planning. The products are crafted in such a way so that it will help attract the
new customers and also retain the existing customer group. Moreover, the profitability of the
company also plays a vital role and the airlines has made arrangement for special type of
accommodation. There are different types of flying arrangements that is provided by Qantas such
as premium class, international class, business class as well as international business class. The

10INTRODUCTION TO MARKETING
information about the services and the products of Qantas are available both in online as well as
offline modes. The company has also taken the initiative for frequent flyer program across
different countries (Tekeret al. 2016).
Price
This airline industry uses cost plus margin and thus the products will be demanded by the
customers although the cost is comparatively high. Qantas will also use competitive pricing
method as well as penetrative pricing policy for the low cost airlines. The airline will also
provide attractive discounts to the customers and this will help in customer pricing perception. It
can be said that the airlines do not provide low cost services for different destinations.
Promotion
Direct marketing method is used by Qantas and this will be beneficial for the corporate
customers. Various types of sales promotion are also used during lean season. Moreover, PR
activities and social networking websites and bloats plays an important role in the promotion of
Qantas airways. This plays an important role to get closer to the customers and this airline also
provides sponsorship for charitable programs. It can be said that the company spends more than
$3.5 million in advertisement in order to attract the customer base (Qantas.com 2018).
Place
There are retail outlets in different locations for the sale of tickets in Qantas airways.
Moreover, the sale of tickets directly at the counters of the airports also plays an important role
and this helps in the profitability of the company. Some people also prefer to purchase the tickets
through travel agents as well as through mobile phones.

11INTRODUCTION TO MARKETING
Section 4
Recommendation
The formal market audit will also help in the development of the company and thus set
the marketing plan and the marketing objectives accordingly. The various types of corporate
marketing strategy will also help in catering to the online marketing services and therefore help
in market planning process accordingly. With the help of better positioning and targeting tools,
Qantas airways must try to spend considerable amount in advertisements and targeting people
from different sections of the economy. This will help in increasing the customer base of the
company. Qantas must also try to deliver low cost airfare services with a better and high quality
service and thus this would attract the customer base to choose Qantas airways. It is the duty and
responsibility of the management to use the correct airfare value pricing strategies that will help
in solving the needs and well as the problems of Qantas airways (Tekeret al. 2016).
Conclusion
Qantas airline plays an important role in the airline industry of the Australian economy.
The airlines is also trying to improve the performance score card in the airline industry. It will try
to provide better services to the customers and the customers also expects to getter better
services from these airlines. This will help in improving the customer service of the company.
The complex buying behavior of the customers in regards of this airline is considered to be very
costly and there are also different types of customers who are engaged in travelling through
Qantas airways. The customers after searching the best deals seeks to purchase the tickets and
this will help in increasing the satisfaction level of the customers.

12INTRODUCTION TO MARKETING

13INTRODUCTION TO MARKETING
References
abc.net.au 2018. Abc News. [online] Available at:
http://www.abc.net.au/news/2012-06-13/fullerton-flight-or-fright-for-qantas/4068968 [Accessed
1 Feb. 2018].
Bamber, G.J., 2015. Low-cost airlines’ product and labor market strategic choices: Australian
perspectives. Members-only Library.
Cui, Q., 2017. Will airlines’ pollution abatement costs be affected by CNG2020 strategy? An
analysis through a Network Environmental Production Function. Transportation Research Part
D: Transport and Environment, 57, pp.141-154.
Cui, Q., Li, Y., Yu, C.L. and Wei, Y.M., 2016. Evaluating energy efficiency for airlines: an
application of virtual frontier dynamic slacks based measure. Energy, 113, pp.1231-1240.
Cui, Q., Wei, Y.M. and Li, Y., 2016. Exploring the impacts of the EU ETS emission limits on
airline performance via the Dynamic Environmental DEA approach. Applied energy, 183,
pp.984-994.
forbes.com 2018. Forbes. [online] Available at:
https://www.forbes.com/sites/douggollan/2015/11/15/a-beginners-guide-to-choosing-your-
private-jet/#4658a63d5076 [Accessed 1 Feb. 2018].
investor.qantas.com/annual-report 2017. Qantas | Annual Report. [online] Investor.qantas.com.
Available at: http://investor.qantas.com/annual-report-2017/ [Accessed 4 Feb. 2018].