Brand Management Report for Qantas Airways

This report discusses the use of various models to measure the brand level and standing of Qantas Airways in the market. It also includes approaches to measure brand equity performances and strategies used for growth.

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Brand Management
Report
6/7/2018
Student Name

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Contents
Introduction................................................................................................................................2
Question 1..................................................................................................................................2
Models....................................................................................................................................2
Model 1: CBBE (Customer based Brand Equity)...............................................................2
Model 2: Brand Dynamic...................................................................................................4
Model 3: Equity Engine......................................................................................................5
Model 4: Young and Rubrican's Brand Asset.....................................................................6
Approaches to measure Brand Equity performances.............................................................7
Brand Basic Comparative Approach..................................................................................8
Marketing Based Approach................................................................................................8
Conjoint Analysis...................................................................................................................8
Residual Approach.................................................................................................................8
Valuation Approach................................................................................................................8
Ansoff Matrix Growth strategy..............................................................................................9
Conclusion................................................................................................................................10
Question 2................................................................................................................................12
Recommendations................................................................................................................12
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
Qantas Airways is the Australia’s largest domestic and international line providing the variety
and range of services and products to its customers and considered to be one of the world’s
foremost long distance airlines. As Qantas is considered to be the durable brands in the
Australia, it has built a reputation for excellence in safety, operational reliability, engineering
and maintenance customer service and innovation in its service. Qantas have the good
corporate image in the minds of the customer. The customer retention and loyalty of brand is
consistent in nature since it started its operations in 1920. Company is working in tough
environment and want to achieve the impossible, supported by good leadership, trust and
respect. From the inception, people have been the priority; both the people who work for
them and the people who travel with them. Qantas employ over 30000 exceptional
individuals with roughly 93% based in Australia only and around 50 million customers are
flying over every year across Australia and around the world. To maintain this position in the
market, the company is using the various models to know about the brand level and its
standing in the market. These model includes the CBBE (Customer based Brand Equity
Model) is used which relates the company brand on the basis of the various features and
characteristics (Qantas, 2018a).
Question 1
Models
Model 1: CBBE (Customer based Brand Equity)
Brand Salience

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In the first phase of the CBBE model, Qantas is trying to identify they are for the customers.
The services and products provided by the company are identified in this concept. Salience is
basically creating the awareness in the public at large about the brand (Aueanantakorn, 2015).
Brand Imagery
Brand imagery is nothing but the identification and communication of what the brand means
and for what it is standing for in the market. Qantas is standing in the market to give the
luxury as well as well as comfortable services to its customer at low cost (Lin, 2015).
Brand Performance
At this second step, the performance of the company is measured that whether the company is
giving adequate contribution in the satisfying the customer. Performance defines how well
company’s product meets the customer needs and requirements.
(Source: Bianchi, Pike and Lings, 2014)
Brand Judgement

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Qantas working in a service industry in which the judgement is always formed by the
customer in their mind according to the quality of work supply to them in equality of the
price charged for the same (Keller, Parameswaran and Jacob, 2011).
Brand feelings
Brand feelings are the personal emotions of the individuals regarding the brand. According to
the CBBE model there are six positive brands feeling that customer feel that includes the
warmth, fun, excitement, security, social approval and self-respect. For example: Qantas,
People feel safe, comfort and secured while travelling through the Qantas Airways (Keller,
Parameswaran and Jacob, 2011).
Brand resonance
Brand resonance is the relation between the company and its customer. Reaching to this level
in the pyramid is difficult. After reaching at this level customer feels a deep, psychological
bond with the brand (Muslim and Qur’anis, 2017).
Model 2: Brand Dynamic
Presence
In brand dynamic, the first level relates to the presence of the brand in the market. In this
level, the brand presence is checked whether the customers are aware about the brand or not
(Qantas Loyalty, 2018). The presence of Qantas can be checked by doing the survey in the
market that how many people know about the brand and use it (Flyertalks, 2018).
Relevance

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The relevance level discusses about what the brand, product and services are offering to the
customers at relevant prices or not. The range or consideration set is also checked (Vallaster
and Wallpach, 2013).
Performance
Performance refers to the expected delivery of services that customer expects from the brand.
In this the perception of delivery of services of brands are judged by the customer (Danaher
et al., 2011). The performance given by Qantas is judged on the basis of quality provided to
its customer.
Advantage
The advantage refers to the extra benefit the customer is getting from the brands. The
advantage is gained by the customer from the brand which is better than others (Brand et al.,
2012). The customer will choose the brand only when the brand is providing add on service
to its customer.
Dynamics
The dynamics is the change in the brand position in which the brand gets the ability so that no
other brand can beat it. It will be the bonding of customer with brand that customer are loyal
and rely on the brand.
Model 3: Equity Engine
Authority
The authority refers to the reputation of the brand, whether as long as the brand can become
the leader in the market. The status and reputation of the brand are deal in authority
(Neufville, 2016).

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Identification
The identification of the brand by the customer is important as it reflects the closeness feel
for a brand by its customers. The customer identified whether the brand matches the personal
needs or not. Qantas tries to understand the needs and requirement of the customer and then
make the specification and changes in the products and services. These changes include
change in time and type of flight booking according to the requirement of customer (Qantas,
2018b). Company has able to maintain and retained customer for long time as it able to fulfil
the personal needs of the customer.
Approval
The way brand fits into the needs and matching of the individual customer will give the
approval and acceptance of brand in the market (Gentina, Shrum and Lowrey, 2015). In other
words, the way the brand fits into the social matrix of the individual is the approval. In
Qantas, the acceptability is given in the market to the brand. It forms appositive image in the
minds of customer.
Model 4: Young and Rubrican's Brand Asset
Differentiation
The differentiation is the ability of the brand to differentiate itself from other brands. The
differentiation in the brands is based on the providing the quality and extra services to the
customer by its brands. The service provided by the brand should be more than the service
provided by the competitors (Taneja, 2016).
Energy
The energy refers to the change made in the environment should be adaptable by the
company without decreasing the image of brand. The movement of brand from high position

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to low should not be there, this type of energy is used by the company to maintain the brand
image.
Relevance
Relevance is the actual and the perceived importance of the brand to make the brand different
from its competitors. The brand should be unique from other brands and covering the large
consumer market segment.
Esteem
Esteem is the perceived quality and the perception of the consumers about the brand whether
the popularity for the brand has been decreasing or increasing. The brand stability is checked
whether the brand is fulfilling its promises or not. The consumer checks the quality and
popularity of the brand which will vary according to the country and culture (So, King and
Sparks, 2014).
Knowledge
Knowledge is the awareness that the consumers have about the brand and its services. The
understanding of the consumer in regard to the brand is covered in the knowledge. The true
knowledge of the brand comes from the brand building done by the company (Neufville,
2016).
Approaches to measure Brand Equity performances
Brand Equity performance can be measured through the qualitative and qualitative measures
and comparative methods. There are some methods are discussed to measure the brand equity
performance of Qantas company.

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Brand Basic Comparative Approach
In this type of approach the consumer interpret the marketing activity of a product or service
with the general service category knowledge. It is very important to know the evaluation of
the new campaign or service launched in the market (Keller, Parameswaran and Jacob, 2011).
This approach helps in understanding the purchase of brand or the consumption pattern of the
new or existing products is identified.
Marketing Based Approach
The marketing based comparative approach helps to know the company, the positioning of
the brand. The changes done in the marketing program are judged by the consumer response.
It can be applied in other ways in Qantas by assessing the consumer response to different
advertising strategies, execution or media plan (Ramanchi, Mehta and Vedera, 2017).
Conjoint Analysis
The conjoint analysis is a part of the comparative method of marketing based approach. It is a
survey based multivariate technique that makes the customer to make decision about the
brand. The consumer preference is checked in the conjoint analysis (Ramanchi, Mehta and
Vedera, 2017).
Residual Approach
The residual approach can be calculated by taking out the difference between the brand value
and consumer brand preference (based on the physical attributes) from the overall brand
preferences (Ramanchi, Mehta and Vedera, 2017).
Valuation Approach
The valuation approach relates to the valuing the brand in terms of monetary value. It places
a financial value on the brand equity for the accounting purpose or for mergers and
acquisitions. In this type of approach the accounting background of Qantas is discussed based

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on the market value and the historic value of the brand. Other accounting is also done to
know the assets and liabilities of the company to know the brand value of the company
(Mills, 2017).
Ansoff Matrix Growth strategy
(Source: Yin, 2016)
Market penetration
In market penetration, Qantas Airways wants to grow it services and business by using the
existing services offered by the business in the existing market. In other words it tries to
increase the market share in the existing market by giving the more discounts, decrease in the
price and increase in the promotion and distribution support.
Market development

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In market development, Qantas tries to expand the business in the new market. In this the
company is targeting the new market segment like company can focus on the middle class
people also. New regions or areas of the country are also covered by Qantas which includes a
flight from Berth to London daily with a short span of time (Traveller, 2018). This expansion
is done by the company when it wants to achieve the economies in scale in its operations
(Cho, Yoon, Coh and Lee, 2016).
Product Development
Product development in Qantas can be development of new services by the company to
influence more customers to have bookings. This new development is targeting on the
existing market and existing targeted group to achieve the growth and good image in the
market. These new development are made by the company by analysing the need and demand
of the market.
Diversification
Diversification can be defined as the expanding the business area. The expansion can be done
to create the new product, lines or range of product for the new markets. In Qantas Airways
the diversification is done is two folds. The company is offering the variety of services a
products and giving the special discounts and deals in the market. But diversification is the
high risk strategy because both market and service are growth is essential (Yin, 2016).
Conclusion
From the above discussion, it can be concluded that Qantas is referred to a premium airlines
brand connecting more than 1000 destination all over the globe. The image of the company
plays an important role in developing the brand. previously Qantas is not giving much
importance to maintain the brand standard but according to the changes made in the

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environment, company can able to learn that maintain the brand id must for the company. For
marinating and having the good brand image in the public, the company uses the theories and
models to know in detail the positioning of the company and its brand in the market. These
models and theories helps the company to know its brand salience, brand equity, brand
imagery, brand performance brand feelings in detail. The brands are further measured by
using the various methods of comparative analysis.

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Question 2
Recommendations
The development of Qantas Airline Company will reveal in the decisions made by them. For
persisting in the market for the long period of time the sustainability and changing
requirements of the market should be scanned and analyzed to assume the worries about the
dropping economy and the situation. The company is not only providing the travelling
services but also provide work and income to many peoples. The company will have to learn
about the green technology, efficient maintenance practices and more safety measures.
Diversification
Qantas Airways should focus on the diversification of the services. Qantas has recently added
its business into the field of providing the health insurance services to its frequent flyer
members. The company should also focus on the other members too so that they also become
the frequent flyer in Qantas only and become brand loyal. As loyal customer is the demand of
all the company. It will enhance the brand image and loyalty of Qantas (Debreceny, and
Farewell, 2010).
CSR
Corporate Social Responsibility performed by Qantas Airways should be improved so that
the image of the brand and company in the eyes of the public will improve. The company can
focus on providing the improvements in the environmental management systems, health and
safety standards. The company can also support the local communities (Homsombat, Lei and
Fu, 2014). The contribution to the environment can also be done by the company like
reducing the emission of carbon dioxide, recycling the waste which is produces in the flight

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and can reduce the energy consumption and use other substitutes for the same. Qantas should
try to reduce the fuel efficiency by 16.5% by 2020 as in year 2009; company has achieved a
baseline of 6.2% improvement in fuel efficiency. The use of electricity should be decreased
by 35% till 2020. Consumption of water in Qantas should be reduced. In 2009, company has
achieved a reduction of 10.4%. In next 2-3 years it should reach to a level of 20%. The
company can also plan for the landfilling as it is also a social responsible activity. Company
has achieved the reduction of 24.5% in year 2009. Now company should plan for more and
made a provision to make the land filling to 2020 (Qantas Annual Review, 2017)
ICT
ICT refers to the communication and technology used by Qantas Airways. The technology
used by the company should be updated enough so that easy access can be done on the
websites. The tickets can be booked on line and faster channel of bookings should be there.
The communication done between the customer and employee of Qantas should be done in
the ethical and effective manner (Homsombat, Lei and Fu, 2011). This can be maintained
when there is strong relation between the customer and company so that the resonance of
brand can be maintained.
In next 5-10 years, Qantas can plan for introducing the new technology like introduction of
open rotor engines. As this technology is used by the Rolls Royce and general electric, and
have get great progressed in the competition by demonstrating the programs to a stage where
they believe that the economic welfare will be done. New performance and reduction in the
noise in the environment will be achieved (Disruptive Aviation Technology, 2013).
Promotion
The promotion is one of the marketing tools which used in making the product information
spread in the market. For promoting the services and brand company can introduce the

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various offers, discounts, competition, deals and vouchers so that customer can book more
number of tickets. This will leads to the extension of the brand which will ultimately increase
the brand equity.
Company can introduce offers and discounts to specific clients who are taking the service
from Qantas on daily basis. Discount will vary on the daily basis according to the demands
and supply. If the demand of the flights is increasing then 10% discounts and other offers will
be given by the company and in the condition of less demand by the clients more offers,
vouchers and discount up to 40% can be given to the clients so that more bookings can be
done. As there is major competition with the American Airlines and united, these companies
provide many offers and discounts to their Australian customer. To have competitive edge
over the market, Qantas should introduce the discounts schemes to its clients to remain brand
loyalty among its clients.
Target market
The defining the particular area of customer to whom Qantas is targeting is the target market.
The Company can increase its market by increasing the target market. The target market can
be increased only by proper research in the business and analysing the need and demand of
the customer. The company should try to make the target on the clients of Malaysia as there
are more prospects in the market. The Malaysian airlines has highest portion of market
around 17.2% in the airlines companies. Company can grab their market by providing the
Quality and discounts to Malaysian clients. The more diverse the target audience, the more
diluted the marketing efforts will be. The diversification in the segment by Qantas can be
done in the countries like Singapore, Malaysia, as these markets are untapped and have more
scope of expanding and increase in cliental. The targeted market can also be increased by the

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introducing the new segment and services in the range and varieties offered by Qantas.
Increasing the market will increase the company growth and sales prospects.
Protecting the core business
Qantas should try to protect the core business which means try to protect the domestic market
position and the experience for the customers. Reviews for Qantas have found that the Qantas
has no longer matter to the Australian peoples. Company should focus on giving the best
performance to the Australian clients first. This can be done by having preferential quota in
seats at the time of booking by the clients. Special treatment can be given to the Australian
clients by giving them preference in getting the booking of their setas. Company can alos
make provision that up gradation in seats can be possible if the seats are vacant in business
class.
Conclusion
From the above discussion, it can be concluded that company can able to improve its
performance by using the other ways of business which includes diversification in the
business, protecting the core business, using the information, communication and technology
strategy in the business, increasing the target market and promoting the Qantas at large.
Protecting the core business here refers to giving more importance to the Australian
customers rather than focussing on other country cliental. The ICT strategy is used to have
new technology in the business like using the open rotor engines in Qantas. Communicating
all this new strategies and development plans in the community, to have brand image and
unique identity in the market. Company can also focus on the targeting a new segment and
focus on targeting a new market.

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