Marketing Mix Strategy of Qantas Airline

The marketing mix of Qantas Airline is a unique combination of product features, pricing strategy, and promotional methods. The airline provides safe and good quality food to customers, offers virtual reality glasses for a unique experience, and discounts for regular customers. It also uses augmented services such as iPhone apps and smartphone apps for frequent fliers. Qantas' pricing strategy includes cost plus margin and competitive pricing with refund options. Their promotional mix involves integrated marketing communication strategies, including inside-out and outside-in approaches. The airline targets business and leisure travelers between 18-60 years old. Its processes include market penetration, discount, and customer value. Finally, Qantas uses its logo as physical evidence to increase brand awareness.

Running head: MARKETING FUNDAMENTALS
Marketing Fundamentals
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The current report focuses on the application of the marketing mix model in the context
of Qantas Airline. However, business travelers and the leisure travelers are the main target
customers of such organization. Therefore, it has been received that the marketing mix model is
beneficial for an organization to understand the demand of their target customers and the position
of the brand in the current market. Moreover, it can be said that the unique packaging method
and service facilities enable such organization to gain competitive advantages in the market.
However, the product of Qantas Airline gets the position at the growth phase of PLC that
highlights on the rising growth of such organization.

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Table of Contents
1. Introduction..................................................................................................................................4
2. Summary of the previous assignment based on the target market analysis and segmentation....4
3. Marketing Mix.............................................................................................................................5
3.1 Product Strategy.....................................................................................................................5
3.2 Pricing Strategy......................................................................................................................7
3.3 Promotional Mix....................................................................................................................7
3.4 People.....................................................................................................................................8
3.5 Process...................................................................................................................................8
3.6 Physical evidence...................................................................................................................9
4. Conclusion...................................................................................................................................9
References......................................................................................................................................10
Appendix........................................................................................................................................11

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1. Introduction
The marketing mix is considered as the foundation model to understand the current
market demand in the context of any organization (Festa et al., 2016). Product, price, promotion,
and place are the four components of the marketing mix. In the recent years, marketing mix
becomes a dominant framework that allows the business organization to take the decision
regarding their business (Srijumpa, 2017). This assignment deals with the marketing mix
analysis in the context of Qantas Airline based on its target market. It is important for the
organization to give value to their customers and offer product according to their demand.
2. Summary of the previous assignment based on the target market analysis and
segmentation
The target market of the Qantas Airline includes both business travelers and the leisure.
However, traveling is a common need of the individuals who are associated with the business.
Hence, the business travelers and the leisure travelers are the good target for Qantas Airline to
enhance their profit in the business. The target customers of Qantas Airline aged 18 to 60 years.
However, people of this age are able to show their choice regarding the traveling. People who are
associated with the fashion trends will be the good target customers of Qantas Airline as such
individuals like to gain new experience through the traveling. By achieving the leverage relation
regarding its target customers Qantas Airline has obtained its position. Apart from this adoption
segmentation is applied by Qantas Airline as it allows such organization to meet the demand of
the customers.

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Intro
Maturity
Decline
S
A
L
E
S
TIME
3. Marketing Mix
3.1 Product Strategy
Figure 1: PLC in context of Qantas Airline
(Source: Author)
According to the above PLC or product life cycle, it has been identified that the service
or product of Qantas Airline is in the growth phase of the PLC. However, product in the growth
phase means this service or product is going toward the maturity that ensures the profitability of
a business (Adams, 2016).

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Branding is an important part of the product in the marketing mix (Dadzie et al., 2016).
In the context of Qantas Airline, their branding logo is vital for their business. However, such
organization uses different logos for their different brands. Kangaroo Icon is one of latest brands
of Qantas Airline that gets significant profit in their business.
Packaging
The packaging is another part of the product strategy in the marketing mix. In the
context of Qantas Airline, they use unique packaging method for their products within the flight
and they follow unique design in their packaging. However, Qantas focuses on the
environmental sustainability thus their packages can be recycled, which is a vital aspect of their
packaging method. On the other hand, their attractive packaging method is effective to attract the
customers.
Labeling
Labeling and the product quality of Qantas airline are very well this includes creativity
to attract their customers. However, the labeling and the quality of the product should be unique
in nature as this makes a business unique from other (Srijumpa, 2017). They provide safe service
as it is vital for the customers to get a safe service within a flight. Therefore, the food quality of
the Qantas Airline is also good that is provided to the customers. The labeling method of Qantas
product follows unique design to gain the customer attention towards their product.
Product mix
Type of product Product Feature
Enhancement of the economy service Offering new menu in economy classes of

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Qantas Airline including various types of food
and beverages.
Virtual reality glass Qantas Airline provides virtual reality glass to
their customers to see the world in a unique
way
Offering discount to the regular customers Discount in booking and reward are provided
Table 1: Product mix
(Source: Ahmed & Rahman, 2015)
Augmented Service
Qantas Airline provides augmented service to the frequent fliers. I-phone app and the
Smartphone app are the suitable apps of the augmented service off Qantas airline. These apps are
beneficial for the frequent fliers to take the current booking in the Qantas airline. Such
augmented services will be beneficial for such organization to increase their customer loyalty
and increase in the sales revenue generation
3.2 Pricing Strategy
Pricing strategy is one of the vital elements of the marketing mix as the success of a
business depends on the selection of the pricing strategy of an organization (Sari, 2017). Qantas
Airline follows cost plus margin strategy to set the price of their product and service. In order to
fulfill the high demand of the market competitive pricing method is also used by Qantas. They
offer refunding, which enhances their customer loyalty for such organization. They offer the

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discount as well as the low price for the existing and new customers. This will fulfill the demand
of the business and leisure travelers.
3.3 Promotional Mix
Integrated marketing communication strategy is beneficial for the business organization
to involve their stakeholders in the business promotion (Ahmed & Rahman, 2015).
Integrated marketing communications Features
Inside-out approach This allows Qantas to provide the single
unified message to their stakeholders for their
business promotion by assimilating the
elements of the communication.
Cross functional strategic approach This creates a customer centric environment
during the promotion of the product.
Outside-in approach This allows Qantas to understand the demand
of their target market during their promotion of
the product.
Table 2: IMC
(Source: Moorthy & Suresh, 2014)

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3.4 People
The target market is the business and leisure travelers in context of Qantas Airline. They
focus on the age group between 18 to 60 years as this age is able to make the decision about their
travel. However, it is important for the business organization to select their target people to give
success to their business (Moorthy & Suresh, 2014).
3.5 Process
Market penetration strategy, discount strategy and providing customer value are the main
processes of Qantas Airline to carry out their marketing mix strategy (Jin, Kim & Kim, 2015).
Such method enables this organization to build a good relationship with their stakeholders, which
give a valuable shape to their business.
3.6 Physical evidence
Physical evidence plays an important role in a marketing mix as it enables an
organization to attract their customer towards their service (Moorthy & Suresh, 2014). However,
in the context of Qantas Airline, they use the logo in their products that increase their brand
awareness among the customer domain.
4. Conclusion
This above study focuses on the application of the marketing mix model in the context of
Qantas Airline. Product, price, promotion, and place are the four major elements of the
marketing mix. It has been found that Qantas uses discounts in their service and they also use
competitive strategy to penetrate in a market. Furthermore, use of the unique logo in their
product increase their brand awareness.

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References
Adams, M. E. (2016). Beyond the Glass: Examining Wine Tasting Room Profitability Using the
4Ps of the Marketing Mix (Doctoral dissertation, Virginia Tech).
Ahmed, S., & Rahman, M. (2015). The effects of marketing mix on consumer satisfaction: A
literature review from Islamic perspective.
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., & Winston, E. M. (2017). How Firms
Implement Marketing Strategies in Emerging Markets: An Empirical Assessment of The
4A Marketing Mix Framework. Journal of Marketing Theory and Practice, 25(3), 234-
256.
Festa, G., Cuomo, M. T., Metallo, G., & Festa, A. (2016). The (r) evolution of wine marketing
mix: From the 4Ps to the 4Es. Journal of Business Research, 69(5), 1550-1555.
Jin, N., Kim, J., & Kim, K. H. (2015, June). THE SERVICE MARKETING MIX EFFECT ON
CUSTOMER EXPERIENCE AND CUSTOMER EQUITY IN THE SERVICE
INDUSTRY. In 2015 Global Fashion Management Conference at Florence (pp. 838-
844).
Moorthy, D., & Suresh, G. (2014). Consumer Perception on Private Label Products in
Coimbatore. Journal of Commerce and Management Thought, 5(2), 241.
Sari, R. P. (2017). Marketing Mix Implementation in Small Medium Enterprises: A Study of
Galeristorey Online Business. ETIKONOMI, 16(1), 115-126.

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Srijumpa, R. (2017). What beyond marketing 3.0: The 4Ss marketing mix strategy for
sustainability. Journal of Global Business Review., 15(1), 1-12.
Recommendations
 Product life cycle or PLC is a good idea, as it will enable an organization to understand
the phases of product life cycle from development to its decline. However, the Qantas
Airline should follow the PLC practice to maximize their profit.
 PLC management will be helpful for Qantas Airline to reduce the cost of market entry.
 PLC management can be considered as the profitable and efficient distribution channel.
 Qantas Airline will be able to get high return from their investment by PLC management.
Appendix

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Figure 1: PLC
(Source: Moorthy & Suresh, 2014)