Qantas Airlines Marketing Strategy: Segmentation and Targeting

This article discusses the marketing strategy of Qantas Airlines, including market segmentation and targeting. It also evaluates the advertisement using PESTLE analysis, SWOT analysis, and Porter's five forces.

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Introduction
Qantas which means Queensland and North Territory Aerial Services is the oldest airline
company in Australia in the world, it is the second largest. It currently operates close to 5000
weekly flights across South America, Africa, New Zealand, Asia, as well as Australia, covering
almost 50 worldwide terminuses. The mentioned airline company operates domestically
carrying 2000 flights crisscrossing the Australian content. And it employs close to 35000
personnel worldwide and has a net income of $250 million. The Qantas main market comprises
the international and domestic passengers. Roughly the passengers traveling in and out of
Australia yearly add up to 30 million and out of this huge market, 20% of the huge market is
occupied by the Qantas airline. And 67% within the Australian domestic airline market.

Marketing Theory
The marketing theory that were used in evaluating the advertisement were;
 PESTLE analysis
 SWOT analysis
 Porters five forces
How advertisement targets the market
The magazine advertisement targets the market because the magazine simply talks about the
consumer behavior whereby the factors affecting the consumers purchasing power and their
attitude and responses towards the services offered are highlighted. According to the
advertisement, the behavior of the customers is affected by the message sent by the business
which later affects their attitude towards a certain brand or product
The advertisement also talks about the need of gaining a deeper understanding of the
consumer groups by simply examining the closer particulars of the customers’ way of life and
thinking manners so as to comprehend their favorites such as financial, hobbies, interest and
lifestyle. The need of knowing the customer location is also vital since numerous customers are
located in different geographic areas thus encountering different things influencing their
purchasing decisions and this may include climates, cultures, and resources (Yeshin, 2009, p.
76).
Qantas position its airline services by providing limitless luxury and topmost quality world class
service and it has a very popular loyalty program known as the Qantas frequent flier which has

almost 9 million associates and this program is operative when it comes to drawing in recurrent
business travelers. The company also pays immense importance to product planning such that
the crafting of products is done thus assisting in enticing new customers and keep the existing
ones (Saxena, 2014). This is done by offering premium traveling arrangements which include
worldwide business class, premium economy, international economy and numerous types of
seating preparations and provision of meals and facilities (Behm, 2009, p. 125).
Visitors
The number of passengers bordering the Qantas airline amounts to 41 million passengers
worldwide. The Qantas international growth occurred quickly and without enough benefit to
the Australian based aviation industry. The airline capacity operating in Australia grew to 15
million while the inbound visitors to Australia grew by only 1.2 million thus the Australian
resident departures exceeded inbound international visitors’ arrivals
Fig 1: Inbound visitors and outbound visitors using Qantas (Mills, 2016, p. 12)

Fig 2: Qantas annual international available seat kilometers (Egan, 2011, p. 29)
Market segmentation
The division of market involves the procedure of diving up the overall variety of current or
potential into lesser separate sets to ease examination and preparation. The division allows the
Qantas to;
 Better mix the customers need, to contest more successfully and to accomplish
financial goals willingly (Yeshin, 2009, p. 78).
 Better tune the marketing mix to specific collections in the market, to enable
refining of products, setting of prices, determine selling places as well as
advertising required for numerous places.
The division of the market for Qantas is very multifaceted since every division needs and
potentials are different and distinctive as well as the desires for stopovers, the capability to pay
fare levels and outlooks in terms of flight comfort as well as service. The behavioral
segmentation is usually used by this type of airline company to assist them in selecting its target

market (Eames, 2015, p. 98). The segmentation of the business additionally divided into
monotonous business, seminars or conferences and crisis businesses reflecting the needs and
benefits of the customer (Egan, 2011, p. 67).
The Qantas airline divides their market into groups of different buyers who might require
separate products or market mixers. And the segmentation is carried out based on
 Geographical which includes regions, states, and nations
 Demographic which includes income, gender, and age
 Behavioral which include uses, attitudes, and knowledge.
 Psychographic which includes personality, social class, and lifestyle.
During segmentation, the Qantas airline takes a keen look at the following;
 The size and growth of the segment.
 The structural and attractiveness of the segment.
 The objectives and the resources of the company (Saxena, 2014, p. 129).
How Qantas uses segmentation
 The Qantas offer domestic traditional freight for a premium.
 Customer paying for faster service
 Domestic freight.
 Are the customers willing to pay for the privilege of air freight or should they market for
their cheap services more?
 International travel

 Making use of behavioral segmentation to target the social class of different customers.
 Offering first class flights.
 Tough economic climate by investigating whether people are still willing to go overseas.
 Commercial depicts successful, confident people.
Based on geographical segmentation, is not a must for Qantas to market to customers based
on geographic since most people travelling globally do not travel via Australia on-route to
alternative terminus since it is the finale of the line when compared to countries such as Dubai
and Singapore who have several travelers who must pass through them before progressing to
another leg of their journey (Kumar, 2010, p. 87). The tourism is simply being encouraged by
the Qantas by simply advertising in local and international customers with iconic of Australia
images.

Appendix
Source: www.tourism.australia.com

Bibliography
Behm, J., 2009. The AIDA Model. The Marketing Environment, 3(12), pp. 23-50.
Eames, J., 2015. The Flying Kangaroo. 2 ed. Sydney: OLMA Media Group.
Egan, J., 2011. SWOT Analysis. 3 ed. Tororo: Media Participations.
Kumar, A., 2010. Advertising Management. 2 ed. Nairobi: Scholastic.
Lamb, C., 2008. Essentials of Marketing. Experiencing the Worlds Most Excitiing In-flight Entertainment,
2(10), pp. 40-45.
Mills, G., 2016. The Airline Revolution. 4 ed. Toronto: Adventure Works Press.
Saxena, R., 2014. Marketing Management. 2 ed. Los Angels: HarperCollins.
Yeshin, T., 2009. PORTERS Five Forces. 5 ed. Hong Kong: Adventure Works Press.