Marketing at Qantas Airlines: Target Market and Strategies
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This report sheds light on the target market and marketing strategies of Qantas Airways, the largest airline service in Australia. It discusses the company background, product description, target market, marketing strategy, and recommendations for future operations.
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Running head: MARKETING AT QANTAS AIRLINES MARKETING AT QANTAS AIRLINES Name of the Student Name of the University Author Note
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1MARKETING AT QANTAS AIRLINES EXECUTIVE SUMMARY Qantas Airways, one of the major airline operators within the Australian market, is known as the flag bearer of the Australian airline industry. Qantas Airways is the largest of the airline services within the Australian boundaries in terms of the size of the fleet maintained by the company, the international flights as well as the international destinations. The following report attempted to shed light on the target market and marketing strategies followed by the concerned organization. The report opened with a discussion on the company background and a description of the products and the services offered by the company. The report discussed the target market of the concerned company. The report further proceeded to discuss the marketing strategy followed by the company. The report neared conclusion with some recommendations that would assist the successful operations of the company in the future days.
2MARKETING AT QANTAS AIRLINES Table of Contents Introduction..........................................................................................................................3 Company Background and Product Description.............................................................3 Target Market..................................................................................................................4 Marketing Strategy..........................................................................................................5 Recommendation.................................................................................................................6 Conclusion...........................................................................................................................7 References............................................................................................................................8
3MARKETING AT QANTAS AIRLINES Introduction Qantas Airways, one of the major airline operators within the Australian market, is known as the flag bearer of the Australian airline industry. Qantas Airways is the largest of the airline services within the Australian boundaries in terms of the size of the fleet maintained by the company, the international flights covered by the concerned fleet of the company and the wide range of the international destinations that are covered by the concerned airline company. The company is the third oldest aviation company of the world (Qantas.com 2018). The concerned organization is known to be the third oldest airline organization in the world and is preceded by KLM and Avianca in the list. The following report aims to shed light on the target market as well as the marketing strategies that are followed by the concerned organization. The report opens with a discussion on the company background as well as the description of the products and the services offered by the company. The report then attempts to discuss the target market of the concerned company. The report further proceeds to discuss the marketing strategy that is followed by the company. The report nears a conclusion with some recommendations that might help in the successful operations of the company in the future days. Company Background and Product Description Qantas Airways is one of the major airline operators that has been functioning within the Australian market. The airlines company is known to be one of the flag bearers of the Australian airline industry. Qantas Airways is the largest of the airline services within the Australian boundaries in terms of the size of the fleet maintained by the company, the international flights covered by the concerned fleet of the company and the wide range of the international destinations that are covered by the concerned airline company. The concerned organization is known to be the third oldest airline organization in the world and is preceded by KLM and Avianca in the list. The famous airline company of Australia was founded in the month of November of the year 1920 (Qantas.com 2018). The airline company in discussion, Qantas Airways, had started its international flights since the month of May in the year 1935. The company in discussion, Qantas Airways, is one of the founding members of the Oneworld airline alliance. The company is based in the suburb of Mascot located in Sydney, Australia. The main hub of the airlines is located in the Sydney Airport. The company is known to have been holding
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4MARKETING AT QANTAS AIRLINES a major share in the domestic market of Australia. The client list of the company is also known to be most popular airlines that have been operating within the Australian territories. The employee count of the company is almost 26150 people as disclosed in the annual report of fiscal year of 2017. The total revenue of the concerned airlines in the fiscal year of 2017 amounted to a huge sum of approximately 16.1 billion Australian Dollars (Investor.qantas.com 2018). The airline company in discussion, Qantas Airways, Australia is observed to have been catering to the concerned clientele through a number of subsidiary airlines that have been extending proper services to the concerned clientele. The services extended towards the clientele of the company tends to include the various services like the implementations of the numerous matters that are related to the implementation of the low-cost conditions within the areas that are included within the territories of the New Zealand and Australia. The various services that are provided by the concerned airlines include the cheaper cost of travel among the clients of the organization who have been interested to flying within the territorial boundaries of Australia and New Zealand. These services help in the improvement of the popularity of the concerned brand as well as the improvement of the overall business performance of the given airline organization in discussion, Qantas Airways. Target Market The target market of the Qantas Airways, Australia, majorly comprise of the clients of the organization who have been interested in the cheaper cost of travel over the flights within the territorial boundaries of Australia and New Zealand as well as the various clientele who have been travelling to the various international destinations covered by the fleet of the company. The concerned organization is known to have targeted the clientele who demonstrate an array of different expectations, requirements as well as needs (Spencer and Adams 2017). The airline is observed to have implemented the behavioral segmentation in order to select the target market of the concerned organization (Andreasen 2018). The airline is positioned as one of those airlines that provides attractive packages to the concerned clientele of the organization in accordance to their different expectations, requirements as well as needs. The various people who have been targeted by the concerned airlines generally belong to the middle classes of the economy of the organization. The pricing strategies of the concerned organization is generally dependent on the economic condition of the concerned client (Gilaniet
5MARKETING AT QANTAS AIRLINES al. 2014). The concerned airline organization in discussion, Qantas Airways, Australia, is known to maintain a competitive pricing strategy for the clientele. The clientele that is targeted by the concerned organization in discussion, Qantas Airways, Australia range from the middle class, the corporate sector within the economy of the organization (Singh 2018). The company in discussion, Qantas Airways, Australia further attempts to target the upper-middle class who have been residing within the country. The company in discussion, Qantas Airways, Australia, further attempts to implement the various programs that are needed to attract the numerous clients towards the concerned company. The major clientele of the company further includes the concerned people who have been accessing the flight schedules that are used by the international clientele (Aghdaie and Alimardani 2015). This helps the company to segregate the clientele in accordance to their purpose of the visit. The clientele is divided into three different groups. These groups include the routine travelers, the travelers who have been using the services in order to attend the various conferences as well as the travelers who have been using the airline services to attend the various emergencies that might have taken place in the concerned business organizations. The airline further targets the various travelers who have been travelling for the purpose of leisurely activities. These travelers might also be divided into two different groups. One of these groups consist of the tourists who only travel during the weekends (White 2018). The other group of the leisurely travelers consist of those who aim to travel to the multiple destinations and are thereby the frequent users of the flight services that are provided by Qantas Airlines, Australia. Marketing Strategy The marketing strategy that is adopted by the company in discussion, Qantas Airlines, Australia is majorly based on the micro-environment as well as the macro-environment of the concerned company. The company in discussion, Qantas Airlines, Australia is known for the services that it offers to the concerned clientele. The product that is discussed in this section is the domestic flight service of QantasLink. The flight service of is known to have been providing the concerned clientele with the proper comfort during the flights (Srisaeng, Baxter and Wild 2014). The QantasLink is also known to serve the clientele with the best of the services in the matters that relate to the in-flight entertainment. The pricing strategy that has been adopted by the airlines is observed to have been comparatively low cost (Law and Breznik 2018). The company is known for charging the concerned clientele with premium pricing policies. This
6MARKETING AT QANTAS AIRLINES helps in the maintenance of the service quality as well as helps in the maintenance of the costs and the benefits that should be extended to the clients of the given airline service (Homsombat, Lei and Fu 2014). The company is known to have been following the strategies that help in the maintenance of the safety and the comfort of the people who have been availing the services of QantasLink for their frequent flying needs. The company also aims to provide the concerned clientele with the high margins in the benefits within the similar pricing brackets. The concerned airline segmentation QantasLink is known to serve within the territorial boundaries of Australia. The tickets of QantasLink are known to be available at the various outlets owned by the company. These outlets help the concerned clients to choose the proper flights that is best suited for their travelling purposes (Cui and Li 2016). The company in discussion, QantasLink, is also known to facilitate the bookings through the online channels. This might also help in the attraction of a number of clients from the millennial generation (Alberset al. 2017). The product in discussion, QantasLink, is known for extending the ticketing servicestotheconcernedclienteleof thecompanythroughtheonlineservicesandthe confirmation of the tickets is received by the concerned customer through the messaging services. The promotional strategies that are adopted by QantasLink are known to include the best options for the frequent fliers of the company (Flouris and Oswald 2016). The promotional strategies that are extended by QantasLink refers to the strategies within the company that help in the maintenance and the attraction of the clientele of the company. The various promotional and the pricing strategies that are implemented by the company are related to the positioning of the concerned company in the concerned market. Recommendation The concerned company in discussion, Qantas Airways, Australia, might be advised on certain areas in order to improve their performance within the Australian market as well as the global market at large. The concerned company might be advised to conduct a survey among the people who have been using their services for a longer duration of time. This would help the company to receive a feedback from the concerned clientele. The received feedback from the clientele might help the company to put forth an improvement of the services that are offered by the concerned company. The concerned airline company might also be advised to deal with the matters that are related to the delay in the flights that are experienced in the flights (Whyte and
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7MARKETING AT QANTAS AIRLINES Lohmann 2015). The company might benefit hugely from the punctuality in the departure as well as the arrival of the concerned flights. The other factor that might prove to be helpful for the various functionalities that are related to the improvement of the performance of the company in discussion, Qantas Airways, Australia, are related to the introduction of the various technologies. These technologies might be helpful in the reduction of the length of the queue in the ticketing areas. The introduction of the technology might help in the matters that are related to the check- ins of the concerned clientele. The company might also be advised to deal with the elderly persons and the expectant mothers in a special manner. This might help the company to earn a proper goodwill and thus increasing in the popularity of the concerned services (Lohmann and Vianna 2016). The concerned company might be advised to implement the proper services within the cabin in order to aid the disabled who have been availing the services of the company. The concerned organization might also be advised to deal with the customization of the meals as per the demands of the concerned clients. This might in turn lead to the wide spread popularity of the given organization. Conclusion In lieu of the above discussion, it might be pointed out that the concerned organization in discussion, Qantas Airways, Australia is a majorly successful organization that aims to deal with the varied needs, requirements as well as expectations of the concerned clientele. The concerned airline organization in discussion, Qantas Airways, Australia, is known to maintain a competitive pricing strategy for the clientele. The clientele that is targeted by the concerned organization in discussion, Qantas Airways, Australia range from the middle class, the corporate sector within the economy of the organization. The company in discussion, Qantas Airways, Australia further attempts to target the upper-middle class who have been residing within the country. The company in discussion, Qantas Airways, Australia, further attempts to implement the various programs that are needed to attract the numerous clients towards the concerned company. The airline is positioned as one of those airlines that provides attractive packages to the concerned clientele of the organization in accordance to their different expectations, requirements as well as needs. However, the company might be advised to follow the recommendations in order to gain a better competitive advantage within the given market.
8MARKETING AT QANTAS AIRLINES References Aghdaie, M.H. and Alimardani, M., 2015. Target market selection based on market segment evaluation: a multiple attribute decision making approach.International Journal of Operational Research,24(3), pp.262-278. Albers, S., Baum, H., Auerbach, S. and Delfmann, W., 2017.Strategic management in the aviation industry. Routledge. Andreasen, A.R., 2018. Challenges for the science and practice of social marketing. InSocial Marketing(pp. 3-19). Psychology Press. Cui, Q. and Li, Y., 2016. Airline energy efficiency measures considering carbon abatement: A new strategic framework.Transportation Research Part D: Transport and Environment,49, pp.246-258. Flouris, T.G. and Oswald, S.L., 2016.Designing and executing strategy in aviation management. Routledge. Gilani, S.R.M., Kazemi, M., Asadi, H., Samadzadeh, G.R. and Atashpanjeh, A.R., 2014. Market segmentation of sport tourism in Iran for foreign tourists regarding culture and modeling of target market.Asian Journal of Research in Marketing,3(6), pp.192-200. Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines strategy–Pricingandrouteentrypatterns.TransportationResearchPartE:Logisticsand Transportation Review,63, pp.1-16. Investor.qantas.com 2018.QANTAS ANNUAL REPORT 2017. [online] Qantas.com. Available at:http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/ file/annual-reports/2017AnnualReport.pdf [Accessed 25 Sep. 2018]. Law, K.M. and Breznik, K., 2018. What do airline mission statements reveal about value and strategy?.Journal of Air Transport Management,70, pp.36-44. Lohmann, G. and Vianna, C., 2016. Air route suspension: The role of stakeholder engagement and aviation and non-aviation factors.Journal of Air Transport Management,53, pp.199-210.
9MARKETING AT QANTAS AIRLINES Qantas.com2018.AboutQantas|Qantas.[online]Qantas.com.Availableat: https://www.qantas.com/travel/airlines/about-qantas/global/en [Accessed 25 Sep. 2018]. Singh, H., 2018. Reaching your target market: identifying and appealing to your ideal client base.Journal of Aesthetic Nursing,7(7), pp.396-397. Spencer, D.M. and Adams, A.P., 2017. Viability of Nonresident Open Water Swimming Event Competitors as a Target Market: A Case Study.Event Management,21(4), pp.391-402. Srisaeng,P.,Baxter,G.S.andWild,G.,2014.Theevolutionoflowcostcarriersin Australia.Aviation,18(4), pp.203-216. White, L., 2018. Qantas still calls Australia home: The spirit of Australia and the flying kangaroo.Tourist Studies, p.1468797618785617. Whyte,R.and Lohmann,G.,2015. Thecarrier-within-a-carrierstrategy:Ananalysisof Jetstar.Journal of Air Transport Management,42, pp.141-148.