Marketing Management Analysis of Qantas Airlines

Running Head: MARKETING MANAGEMENT 1
Marketing Management

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Introduction
Marketing is the process to utilize organization’s workforce and resources to formulate and
implement the most appropriate strategies so that it can approach to its targeted customers.
Under this, the company proposes to maximize the sales of its products and services. It allows
the firm to review and analyze the marketing resources and processes (Chernev, 2018). The
major aim of this report is to conduct marketing analysis of chosen organization i.e. Qantas
Airlines. Qantas Airline is a popular airline of Australian and it is one of the biggest players in
the country. This report is focused on marketing practices which are used by the chosen
organization. It evaluates both internal and external factors which can affect the growth and
success of organization in Australian airline industry. External and internal environments are
analyzed by using 5C’s analysis. Moreover, marketing intelligence and research are described
which can be practiced to gather the data about different aspects of 5Cs framework. At the end,
there is the recommendation about the marketing tactics and marketing mix strategies which can
assist the company to attract more customers and increase its customer base.
Issue 1: Company and Industry Analysis
Qantas Airlines is one of the biggest airline organizations which were established in the year
1920 in Australia. This is very popular for the standard air fares and for its international and local
airlines. It is largest airline company in terms of international flights, fleet size and international
destinations. After KLM and Avinaca, Qantas is the third oldest company in international airline
sector. However, the company has started its operations in 1920, but it introduced its
international flights in 1935. The organization has made various hard efforts to become a leading
airline all over the world. Due to this, the company is able to increase its international presence
and establish a significant brand image among targeted customers. The flights of this group fly to
20 local destinations and 21 foreign destinations in 14 nations across America, Africa, Europe,
Asia and Oceania through its subsidiaries. Qantas group serves 31 international and 65 local
destinations (Qantas Airlines, 2018). It is offering its services through its many subsidiaries such
as Snap Fresh, Qantas Holidays, Qantas Freight, Q Catering, Ground Handling etc.
In its industry, the primary services of Qantas Airlines are to provide airline services which
consist of travelling services to passengers who want to fly from one destination to other. It runs

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its operations under two brands such as Qantas and Jetstar and offers its services all over
Australia and other nations also. The vision statement of the company is to run the best premium
airline of the world i.e. Qantas and best low fare carrier of the world i.e. Jetstar. Moreover, it is
communicating its brand message through the slogan i.e. “The Spirit of Australia”. Taking about
its orientation, it can be said that Qantas has adopted market orientation under which company is
offering its airline services and adopting strategies considering the demands and needs of
customers. At Qantas, branding plays a significant role in its marketing strategy as it helps this
company to reinforce its positioning in the market. For example, when the name of Qantas brand
is mentioned then first thing which comes in people’s mind is the service quality and
convenience (Qantas, 2018).
Issue 2: 5 Cs Analysis of Qantas Airlines
5Cs analysis is a framework of marketing management which is practiced to evaluate the
operative environments of a company. It assesses both internal and external factors of
environment which impact company’s operations. Five areas of 5Cs analysis are discussed
below:
Company
Strengths
 Qantas Airways is one of the largest airlines in Australia.
 It has strong position in both local and international markets.
 This company has been successful in cutting $2 billion of its yearly costs over last 3
years.
 One of the biggest strengths of Qantas is its Qantas Transformation program that aimed at
enhancing the quality of airline service while reducing the costs at minimum.
 It is able to exercise effective brand building through sponsorship and advertisement
(Hakala, 2015).
Key Resources
In Australian airline industry, Qantas is operating its business and processes by effective
utilization of its different resources. Intangible resources of this company are its talented and
skilled staff which ensures its operations’ efficiency that it is engaged in. Moreover, there is the

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component of alliances which the companies enter into which enable for the sharing of lounges,
frequent flier points and joint bookings (Bazargan, 2016). Qantas is the part off One World
Alliance. The capabilities of its management specifically under the direction of Allan Joyce
played a significant role in growth and success of Qantas. Additionally, tangible resources of
Qantas are the fleet of aircrafts which are utilized by airline and its financial position. The hubs
where Qantas operate are also a significant resource because the company has been able to
bargain good deals which have reduced the costs which incurred to company.
Weaknesses
 The company has generated lower profits from its international flights.
 There are various issues like price fixing and other incidents which have affected brand
image of Qantas Airlines.
 The major weakness of this airline is the rumours about its purchase by Ethiad via buying
certain stake. It has raised an issue for the company.
Opportunities
 One of the major opportunities is that it can attain a great level of development in global
markets by adopting foreign direct investment.
 It can expand its business in various international destinations specifically in Asian
market.
 It can come in strategic collaboration or tie with the international and popular airline
companies (Qantas Airlines, 2018).
Threats
 Increase in the prices of fuel has huge impact on the Qantas operations and processes.
 It is confronting immense competition from other brands in airline sector like British
Airways, Air France and American Airlines etc.
 Another threat for Qantas is from the low cost airlines and other modes of transportation
like trains, cars and buses.
Customers
This company is targeting on its customers looking at their different segmentation characteristics
like age, income, interest, usage rate and loyalty status. The company is offering different classes
in its flights like first class, economic class etc. The major targeted audiences of this company