Marketing and Services Management Marketing and Services Management Qantas Airlines

MARKETING AND SERVICES MANAGEMENT 2 Marketing and Services Management Marketing and Services Management Qantas Airlines [Type the phone number] [Type the fax number] 5/2/2018 Qantas Airlines [Type the phone number] [Type the fax number] 5/2/2018 Introduction 2 Evaluation of Qantas Marketing Mix 2 Product 2 Price 2 Promotion 3 Place 3 Recommended Changes in the Qantas’s Marketing mix 3 Product 3 Price 4 Promotion 4 Place 5 Issues in Qantas Airlines 5 Low Profits in International Flights 5 Directorates 6 Strategies to Overcome

Marketing and Services Management
Qantas Airlines
[Type the phone number]
[Type the fax number]
5 / 2 / 2 0 1 8

MARKETING AND SERVICES MANAGEMENT
1
Table of Contents
Introduction................................................................................................................................2
Evaluation of Qantas Marketing Mix.....................................................................................2
Product...............................................................................................................................2
Price....................................................................................................................................2
Promotion...........................................................................................................................3
Place...................................................................................................................................3
Recommended Changes in the Qantas’s Marketing mix.......................................................3
Product...............................................................................................................................3
Price....................................................................................................................................4
Promotion...........................................................................................................................4
Place...................................................................................................................................5
Issues in Qantas Airlines........................................................................................................5
Low Profits in International Flights...................................................................................5
Directorates........................................................................................................................6
Strategies to Overcome Issues...............................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7

MARKETING AND SERVICES MANAGEMENT
2
Introduction
This report is being prepared in order to evaluate the marketing mix of Qantas airlines. It is
the largest airline company of Australia by the size of the fleet, and world's third oldest
airline after Avianca, and KLM (Travel China Guide, 2018).
Evaluation of Qantas Marketing Mix
Product
Qantas is Australian flagship airline, which possesses a strong presence in the global market
with various international destinations. The key concentration of the Airlines is the quality of
service and comfort (MBA Skool, 2018). With a growing competitiveness in the industry of
airlines, Qantas gives huge importance to the planning of the product. Products are created to
appeal or attract new or potential customers and maintain the existing ones. Profitability is
kept at a high priority. The Qantas products comprise either accommodations of passenger
traveling in the airlines or goods containers (Mackenzie, 2018).
Basically, the company provides premium arrangements for traveling. A variety of flying
arrangements is provided by Qantas. First class, business class, economy, and premium
economy is different classes offered by the airlines. Numerous types of arrangements of
seating, in-flight services, amenities, and meals are offered in every class. Local flights have
distinct classes of business economy, with distinct entertainment in-flight passenger t services
(Qantas, 2018).
Price
Majorly Qantas make use of ‘cost plus margin' technique of product pricing. Marketplaces
with additional demands stimulate higher pricing for Qantas. Method of competitive pricing
is also used in order to make it different from competitors. For the low-cost Airlines of

MARKETING AND SERVICES MANAGEMENT
3
Qantas, it maintains penetrative pricing strategy. In order to maintain a good image in the
eyes of Customer Company follow fair refunding strategy. Further, the Qantas offer discounts
on the prices without representing them as discounts. This is to uphold the customer price
view or perception. At new destinations, Airlines offer its services at low cost (Skyscanner,
2018).
Promotion
Advertisement – Internet advertising, brochures, TV, magazines, radio, etc. are the
advertisement techniques used Qantas Airlines for product and branding promotion. Direct
marketing is utilized to send the messages. The company does customization of every
message according to the type of customer, in order to win them at a personal level. This
technique of the company has so far been successful. It has been very effective as compared
to mass media to send across messages of mass communication (Olga, 2016).
Place
Qantas Airlines offer its services in international destinations and therefore has a vast
existence. In terms of ticketing, there are numerous avenues for the same (Qantas, 2011).
From the Qantas's airports counters, direct sales are conducted. Along with this to sell the
tickets it makes use of its own retail outlets. The use of the internet is increasing time to time.
The website of the company and other sites of travel are utilized to sell the tickets. Mobile
phones and telephone can be used by the customers to purchase the tickets.
Recommended Changes in the Qantas’s Marketing mix
Product
Qantas Airlines should perform a refurbished campaign of branding in order to make brand
stronger. Quality services must be engaged with branding to hold old or existing consumers
and attract new ones. In order to do this company should follow below-mentioned strategies:

MARKETING AND SERVICES MANAGEMENT
4
The airlines should add at least 25 Airbus and Boeing extensive bodies aircraft
required to provide services to customers with superiority and with additional
frequent services. Through this, consumers will enjoy more privacy.
The airlines should reduce the number of seats in the aircraft in order to increase leg-
space and pushback and along with this, they should increase the size of washrooms.
Meals in the aircraft should be customized as per the request of the customers.
There should be the consistency of the service standards in each class.
The airlines should make its efforts in order to reduce the number of luggage lost.
Price
The Airline needs to adopt a strategy of penetration pricing in order to win back the lost
consumers and attain new ones. The emerging countries can be effortlessly entered with
Quanta’s famous brand, pricing strategy, and quality service. For this, it should design Multi-
unit pricing, particularly for corporations. Market skimming must be cut down and should be
limited to the markets with high demand.
Promotion
The Qantas Airlines should make strong, and well-thought exercise of branding through
particular TV ads and internet sites concentrated towards specific target segments. In order to
do this company need to follow below-mentioned strategies:
The airlines should increase its focus on the internal ads on business and travel sites
and other famous sites visited by the target market. Rich content ads, flash ads, pop-
up/down ads must be positioned in the market as much as possible. Along with this,
ads and posters on the strategic partner’s sites must be focused.
There is need of revamping of Social networking sites. The web page should be
customer-friendly, informal, and attractive, and encouraging participation of the

MARKETING AND SERVICES MANAGEMENT
5
customers. The online community must be constructed by sites such as Twitter and
Facebook. These sites should encourage exchange of views, lesser known facts of the
company, company fun. Current events must be announced by these sites. Blogs must
be informal and related to the subjects of airline and perform as a technique to attract
more customers.
Place
The ticket offering locations must be representative, attractive. Along with this, it should
provide rewards to the partners.
There should be counters for direct sales and customers services should be provided
faster.
The retail outlets of the Airlines must have better colors, design, and ambiance.
The internet sales should be focused by the airline company it should provide
discounts memberships for internet sales and bonuses.
Famous sites of travel must be linked with the Qantas for increased sales.
The award should be presented to the travel agent and rewards for helping in
increasing the sales of Qantas
The importance should also be given to telephonic sales.
Issues in Qantas Airlines
Low Profits in International Flights
Since Qantas turn out to be the authorized Australian flag carrier, the airline has been
incapable to earn break even or high profits in its global business till date (Grin, 2014). This
is because of its low price strategy to make everyone afford it. Due to this, the high-class
customers who can pay more for the quality and comfort does not go for Qantas Airlines to
travel because they feel the airline offer low-quality services at low cost.

MARKETING AND SERVICES MANAGEMENT
6
Directorates
The airline planned to introduce direct flights to Europe from Australia. However, the airline
is dealing with various challenges in working on long-distance flights in terms of profitability
and demand by the right pricing strategy (Bhasin, 2018).
Strategies to Overcome Issues
In order to increase the profit on international flights, the company needs to adopt
various advertisement strategies such as using famous celebrities for promoting its
services. Besides this company need to add more services and comfort for the high-
class customer's satisfaction such as a bed, and bar facility for the business class
passengers.
In order to increase the profitability in the long-distance flight's company should
promote its safety facilities for the customers and try to reflect that customer's safety
is their manor concern this will help in gaining the trust of customers. Besides this,
the company should work on its pricing strategy to attract both all type of customers.
On the other side, for the business class customer, there should be a facility of the spa
at a various stop in the long-distance flights.
Conclusion
In the conclusion, it can be said that Qantas is one the well-known airlines and offer various
effective services to the customers. However, it has to deal with some issues that are
discussed above it the report such as low profits in international flights and directorates. In
order to overcome these issues, some strategies have been suggested for the company to
attract customers and increase satisfaction.

MARKETING AND SERVICES MANAGEMENT
7
References
Bhasin, H. (2018). SWOT analysis of Qantas Airlines. Retrieved from
https://www.marketing91.com/swot-analysis-of-qantas-airlines/
Grin. (2014). The corporate strategy of Qantas Airways. A case study. Retrieved from
https://www.grin.com/document/307979
Mackenzie, E. (2018). Qantas’ ‘Best Of Australia’ Ranked Ninth Best Airline Ad In The US.
Retrieved from http://www.bandt.com.au/advertising/top-10-international-airline-ads
MBA Skool. (2018). Qantas Marketing Mix. Retrieved from
https://www.mbaskool.com/marketing-mix/services/17372-qantas.html
Olga. (2016). Advantages and Disadvantages of Direct Marketing. Retrieved from
https://www.bakergoodchild.co.uk/advantages-and-disadvantages-of-direct-
marketing/
Qantas. (2011). Building a Stronger Qantas - New International Strategy. Retrieved from
https://www.qantas.com/travel/airlines/media-releases/aug-2011/5157/global/en
Qantas. (2018). The Qantas Story. Retrieved from
https://www.qantas.com/travel/airlines/history/global/en
Skyscanner. (2018). QantasLink Flights. Retrieved from
https://www.skyscanner.co.in/airline/airline-qantaslink-qf.html
Travel China Guide. (2018). Qantas Airways. Retrieved from
https://www.travelchinaguide.com/china-flights/airlines/qantas.htm