Marketing Strategies for Airline Industry

This assignment focuses on developing marketing strategies for the airline industry, utilizing resources such as Shaw's 'Airline Marketing and Management' (2016) and studies by Pi & Huang (2011) and Terpstra et al. (2012). Students are expected to analyze the product life cycle stages, packaging design, promotion mix strategies, and branding techniques specific to the airline industry. The assignment aims to evaluate students' understanding of marketing principles and their application in a complex business environment.

QANTAS MARKETING
ASSIGNMENT

EXECUTIVE SUMMARY
Qantas Airways is an international business airline that was founded in 1920 and
achieved a huge growth in aviation industry. From the initial stages the airline has made its
prime focus towards the transportation of passengers and airfreight. This assignment has been
created to provide a clear understanding about the polices and procedures which are adopted by
Airlines to expand its marketing. It provides a clear understanding that the firm is providing high
quality services to its customers at competitive prices. It is analysed that they are using
appropriate resources and methods to deliver the services. They have also applied an effective
marketing mix that has resulted in achievement of appropriate plans to expand their business.

TABLE OF CONTENTS
1. Introduction..................................................................................................................................1
2. Summary of Part B.......................................................................................................................1
3. Marketing Mix.............................................................................................................................1
3.1 Products strategy..............................................................................................................2
3.2 Strategy of pricing............................................................................................................6
3.3 Promotional mix:..............................................................................................................7
3.4 People:..............................................................................................................................7
3.5 Process:.............................................................................................................................8
3.6 Physical evidence:............................................................................................................8
4. Recommendations..............................................................................................................8
5. Appendices.........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Illustration Index
Illustration 1: Product life cycle.......................................................................................................4
Illustration 2: Packaging of products...............................................................................................5
Illustration 3: Labelling of Qantas airlines......................................................................................6
Illustration 4: Promotion mix...........................................................................................................9

1. Introduction
Marketing is considered as most significant function in management which focus on
development or expansion of business operations. It plays a significant role in expansion of
business and development of brand image of organization. In this report, analysis of Qantas
airline is taken in done in order to determine the effective strategies that has increased business
of firm. Further a new brand is also developed for the airline to identify the ways through which
a firm can create brand identity among the customers.
2. Summary of Part B
From the previous report, it is summarized that consumer behaviour is the most
significant aspect for organization to understand the needs, services and demands of selected
customers in country. Analysis has helped in identifying that there is specific process for
analysing the buying behaviour. All the stages are determined which a buyer can use for
selection of specific goods and services like recognition of problem, analysis of information,
evaluation of substitutes, taking decision and post behaviours of purchase. Study of Qantas
airline help in identifying that it is premium class airline which charge high prices on tickets and
this affects the decision of buyers towards them. Segmentation of market has determined the
strategy of firm to divide its targeted market. Student parents and pensioners are the two main
segments on which Qantas airline is focusing and formulating strategies to satisfy them and
change their behaviour towards the firm. Continuous rise in admission of students and pensioners
is reason of targeting both the segments. At last, the positioning is done for the firm which is
done by using premium price factor but to capture the market it will reduce airfares to achieve
the target customers. Hence, these strategies will help the airline to influence behaviour of
consumers and achievement of market share.
3. Marketing Mix
It is considered as planned and appropriate set of actions and elements that a firm will use
to promote its brand in market (Ottman, 2011). Considered as significant for firms to use the
elements effectively in order to increase ales of product to the people. Organizations operating at
international level should effectively utilize these elements for expansion of business and
improving network and sales across the country (Dinnie, 2015). In this scenario, marketing mix
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Qantas Airline is considered to determine the strategies that effective for firm to promote its
business at global level.
3.1 Products strategy
One of the most important strategy that describe the goods and services which are
developed and provided by firm to its customers. In this context, with the continuous rise of
competitiveness in airline industry, Qantas airline has provided a high level of attention towards
products planning and focused towards achievement of profitability in market. The products of
Qantas airline generally include air tickets, accommodations for passengers and services in
flights. Analysis has determined that Qantas airline generally focus on providing premium class
facility to its customers and charge high prices.
Products life cycle: It is a concept which reflect different stages through which product
have to pass through its entire life. t. It basically includes four stages that through which Qantas
airline will pass.
This diagram pointed out that the products of Qatas airline lies at stage of maturity as it is
facing high competition in industry from rivals. Study has determined that the firm wants to
sustain the market share and it is possible if firm will reduce its prices of products and services.
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Illustration 1: Product life cycle
(Source 1: Product life cycle stages, 2017)

For taking the products from maturity to growth firm will analyse the pricing policy of
competitors like JETGO. This maturity stages states that, firm has adopted a strategy of price
penetration in which it will reduce price and promote its business in Australia (Appendix A).
Branding: It is mainly considered as development of positive image among the customers
through the promotion of business and products (Terpstra, Foley and Sarathy, 2012). For the
expansion of business, it is significant for every firm to develop a positive image of products and
services among the customers (Malhotra and Malhotra, 2012). In this context, a new brand can
be introduced by Qantas airline in which firm mainly focuses on business class people. It also
has a great significance as it focus on premium level of service that will be provided to the
customers in flights. Most significant criteria which are focusing is service quality products in
their airline which is not provided by rivals. They are providing services like flat sky beds,
entertainment facilities, private aircraft for business class people, food products, Snacks, meals,
refreshments etc.
Packaging:
In order to build a strong brand image, firm has given focus towards the packaging of
products which are providing to customers (Klimchuk and Krasovec, 2013). It can be identified
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Illustration 2: Packaging of products

in picture as packaging of food items is attractive and will satisfy the customers. Packaging of
the products will be done and in box there will be four slots and quality of raw material will be
used for making it more reliable. In Aviation industry, it is significant for the firms to focus on
premium quality of service as they charging high rates. It will ensure that the products must be
suitable and as per the preference of customers. Firm must focus on appropriate hygiene while
packaging the products and ensure that it must be easily accessible to customers. Moreover, it
can be said that packaging also plays a significant role in building a brand image and marketing.
Labelling: In this, appropriate labelling must be there on the products package which will help
firm in developing positive brand image of the firm (Armstrong and et.al., 2014). Labels should
contain a specific logo of firm which can be easily identified by customers. Appropriate quality
parameters and ingredients which are used must be specified on the each products. It should
contain appropriate price and date of packing must be there so that customers can ensure that
fresh and quality products are served by company. Strong brand can be developed by firms
among the business class people to attract them and creates value of products. Thus, from the
analysis it has been recognised that a strong image must be helps the firm to increase the sales
and expand its business.
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Illustration 3: Labelling of Qantas airlines

Quality: There some are parameters of quality on which Qantas airline must focus to make their
products more reliable and appropriate for customers. These are 8 quality dimensions which are
described below:
 Performance: This quality parameters considers the overall characteristics of products
(Kugler and Verhoogen, 2011). For example: appropriate packaging of foods products
and appropriate ingredients.
 Features: This quality dimension will consider the supplement features of products such
as fresh products, additional quality and other additional items. Etc.
 Reliability: Firm will focus on the reliability of products and ensure it must be suitable
for customers (Nawaz Billoo and Lakhan, 2012). They must ensures that it must be
healthy, hygienic and builds trust among the people.
 Conformance: In this, firms will ensure that products be developed as per the
specification and should meet the precise quality of business class people.
 Durability: This quality parameters determine the time period up to which product can
be kept safe and does not get rotten. At the time of labelling firm must specify the date of
packaging and expiry date on products.
 Serviceability: To build a strong image, firm must focus on three components such as
promptness, products proficiency, courtesy etc. By focusing on these factors better
quality service can be given to customers in flight.
 Aesthetics: This aspect of products is mainly subjective and impact on the psychology of
customers. Qantas airline must focus on providing appropriate services and providing
extra benefits which creates value among the customers.
 Perceived quality: It must be ensured that products must be appropriate and satisfy the
perceptions of customers.
Product mix and width:
Foods services Facilities
Fast foods such as Chinese, Italian,
continental
Baggage facility
Refreshments – juices, drinks, mock tails Accommodation facility.
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Meals – vegetarian, non-vegetarian. Boarding pass on mobile phone.
Desserts- Chocolates etc. Premium quality seats
In this, it is considered that products mix of the firm has three significant dimensions:
 Consistency: The products and facilities which are provided by Qantas airline should be
consistent and should be same for every customer.
 Width: Firm has differentiated the services in to things products and facilities which
clearly defines this dimension.
 Depth: It has been defined in table firm is providing choices in products which describe
of products mix.
3.2 Strategy of pricing
In this parameter, Qantas airline has a prime focus on business class people who usually
prefer to travel in air crafts and prefer high quality of services (Belobaba, Odoni and Barnhart,
2015). For a strong brand image of new service among them the airline has provided more focus
on quality and they have adopted skimming strategy in which high prices will be charged for
services in order to achieve profitability and satisfy the customers through their quality.
Although, this strategy of pricing will be suitable for firm only when it creates a trust and belief
of premium customers towards the brand.
3.3 Promotional mix:
This is most significant element which describes the methods which are used by Qantas
airline to promote their new brand and providing information related services they are offering to
customers (Pi and Huang, 2011).
Inter grated marketing communications: It is most significant concept of promotion of business
in which the firm will ensure that the channels of communications and messages which are used
by firm must be link together (Wood, 2014). In present context, evaluation of firm has described
that have used various channels of communications like social media, direct mailing, e
commerce websites, direct messages, online advertisements etc. Apart from this, firm has also
various subsidiaries and provided memberships for travel agents to promote their business
(Appendix B)
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3.4 People:
These elements of marketing mix describes the employees of firm which plays a most
significant in success of every business enterprise (Shaw, 2016.). In this context, Qantas airline
has employed a qualified staff which maintains the dignity of airline among people, develop
appropriate customer relationship. Perfection of employees towards the work will provide a
support to the firm achieve its desired objectives.
3.5 Process:
Qantas airline also considered this element of marketing mix as it uses an appropriate
method of providing services to customers. The services must be appropriate and should satisfy
the perception of customers (Fiore and et.al., 2013). It is recognised that premium class people
usually focus on this aspect as they are paying high prices.
3.6 Physical evidence:
It involves the background and structure of seats and other facilities which are provided
by Qantas airline to its target customers. The will offer an appropriate and luxurious environment
to the people (Levin and Peterson., 2013). It includes all things like appropriate seats and
accommodation, sky beds etc. The company has led more emphasis on providing comfortable
feeling and silence to people in flights.
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Illustration 4: Promotion mix

4. Recommendations.
Analysis of policies of Qantas Airline has provided a complete understanding that firm
has maintained its focus towards attracting the business class people by providing premium level
of services. But for developing a strong brand image the firm will also have to focus on pricing
strategy as it will not be suitable for all customers. There is also a requirement to change the
target market such as giving focus towards the common or economy class people. For achieving
profit in long run, the company can use price penetration policy and reduces the prices of their
services but quality should remain the same. The marketing techniques which are using are
appropriate and also concentrates on using other methods of promotion like E marketing,
discounting polices, extra benefits, open more subsidiaries and special offer etc. therefore, these
are some suggestion which firm has to apply for building strong brand identity and expansion of
marketing.
5. Appendices
Appendix A (Product life cycle)
Introduction stage Growth stage
In products life cycle, it is considered as
critical stage as it is considered as most
expensive for a company launching a new
product. It is also determined initial stage at
which company will start developing its new
products
It involves the situation where the products has
high demand and their also arise in sale. It is
also considered as profitability stage for
company as they will achieve the desired
profitability. It makes the firm to more invest
towards promotional activity to gain potential
of this stage.
Maturity stage Decline
This stage of products life cycle is considered
as maturity where the company has limited
demand for products. At this stage company
will focus towards development of brand
image by creating innovation in the products
and services.
It is the crucial for product as the if innovation
is not applied by the firm or failure of
strategies will result in decline of sale of
products. At this stage market of products start
to shrink. It is result due to condition of
saturation in the market.
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Appendix B
Social media: It is considered as most common
method of promotion of business through use
social websites and applications. Social media
in present scenario, is considered as most
appropriate method of promotion of business
such as Facebook, whatsapp etc.
Direct mailing: It involves providing direct
information to customers through emails. It is a
most suitable and effective form
communication which is considered by various
firms to promote their products and special
offers which they developed.
E commerce websites: the most important
method which involves promotion of business
on company's websites or other websites of
travel agencies etc.
Online advertisement: It involves giving
advertisement on commercial websites which
owned by different entrepreneurial firms. It is
also considered as important channel of
communication for the promotion of business.
CONCLUSION
In this report, it is summarized that for the expansion of business operations it is
significant for firm to provide strong and quality products to its customers. It is also important
for the to deliver more services in order to achieve the desired profits among the customers.
Analysis of Qantas airline has provided a clear understanding that they can expand their business
by developing a new brand. It is also that with an appropriate branding firm will make a strong
image among its target customers. Further, the many recommendations are provided to firm
which will help them to their goal of expansion of business at global level.
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REFERENCES
Armstrong and et.al., 2014. Principles of marketing. Pearson Australia.
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Fiore and et.al., 2013. Entrepreneurial marketing: Scale validation with small, independently-
owned businesses. Journal of Marketing Development and Competitiveness. 7(4). p.63.
Klimchuk, M.R. and Krasovec, S.A., 2013. Packaging design: Successful product branding from
concept to shelf. John Wiley & Sons.
Kugler, M. and Verhoogen, E., 2011. Prices, plant size, and product quality. The Review of
Economic Studies. 79(1). pp.307-339.
Levin, M.A. and Peterson, L.T., 2013. Use of Pecha Kucha in Marketing Students' Presentations.
Marketing Education Review. 23(1). pp.59-64.
Luan, Y.J. and Sudhir, K., 2010. Forecasting marketing-mix responsiveness for new products.
Journal of Marketing Research. 47(3). pp.444-457.
Malhotra, N.K. and Malhotra, N.K., 2012. Basic marketing research: Integration of social
media. Boston: Pearson.
Nawaz, A., Billoo, M. and Lakhan, A.A., 2012. Effect of product packaging in consumer buying
decision.
Ottman, J., 2011. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Berrett-Koehler Publishers.
Pi, W.P. and Huang, H.H., 2011. Effects of promotion on relationship quality and customer
loyalty in the airline industry: The relationship marketing approach. African Journal of
Business Management. 5(11). p.4403.
Shaw, S., 2016. Airline marketing and management. Routledge.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Wood, M.B., 2014. The marketing plan handbook. Pearson.
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Online
Product life cycle stages, 2017. [Online]. Available through: < http://productlifecyclestages.com/
> [Accessed on 13 September 2017].
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