Qantas: Evaluation of Services Marketing Mix and Recommended Changes

This article evaluates the services marketing mix of Qantas Airways and recommends changes to improve its marketing strategy. It discusses the evaluation of product, place, price, promotion, people, process, physical evidence, and productivity. It also highlights areas where customer expectations exceed the company's performance.

Qantas
Services marketing

Services marketing 1
Contents
Introduction................................................................................................................................2
Evaluation of the services marketing mix..................................................................................2
Recommended changes..............................................................................................................4
Areas where customer expectations exceed the company’s performance.................................6
References..................................................................................................................................7

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Introduction
Qantas is the largest airline of Australia when it comes to the fleet size, international flights,
and destinations. Qantas is also identified as the third largest airline in the world. The main
business of Qantas is regarded as the transportation of customers by making use of two
airline brands, Qantas and Jetstar.
Evaluation of the services marketing mix
Qantas Airways are associated with the aviation industry. The company has set outstanding
standards when it comes to safety, reliability, engineering and customer satisfaction
(Lovelock & Patterson, 2015). The marketing mix of Qantas can be evaluated by the points
given below:
Product: Qantas has been always unique and one of the oldest airlines in the world. The
company is having various airlines such as Jetconnect which offers services between
Australia and New Zealand. Jetstar is also one of the alliances of Qantas which conducts
operations at domestic and international level. It conducts operations under the name Qantas
freight (Pomering & Johnson, 2018). The company believes in offering flawless services to
its customers. The company has even launched an application program which works for
windows phone, Android and iOS smartphones. Qantas points are provided for the Qantas
frequent flyer program members for dealing their points and Qantas. There is also another
program which is enabled by the company which offers boarding passes, fare alerts, mobile
check-in, live updates concerning flights and booking of the hotels and flights.
Place: Qantas Airways started its operations from Winton in Queensland and after a time
extended its operations at the international level to comprise services to the global level.
Qantas is headquartered at Sydney along with its major hub at Sydney airport. There are also
several other hubs which are located at Brisbane and Melbourne airport. The secondary hubs
of Qantas are situated at Perth and Adelaide airport. The significant airports for the
international carriers are Darwin International airport, Los Angeles International airport, and
Cairns International airport.
Price: Qantas accommodate to the various sections of the society by targeting people from
the corporate sector, middle class, and upper class. The company has a varied pricing policy
which relies on the requirements and needs of the passengers. Qantas has always embraced a

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premium pricing policy for the high-end passengers who are always interested in traveling
first class with all the honors. The company offers luxurious and comfortable services with
high tech entertainment features to refined guests. The premium pricing policy comprises
benefits, cost ensued and value addition in agreement with the quality service (White, 2018).
Promotion: The company is having an international presence and has embraced a forceful
marketing strategy to generate and uphold brand visibility. The ad campaigns are used by the
company to display through the print and digital media in TV, radio, magazine, and
billboards. The company is aware of the significance of social media and uses such tools on
the official website, Twitter, Facebook and YouTube (Raynes & Tsui, 2019). The
sponsorships are also a significant part of the company for being in the limelight and
maintain its rand recall.
People: Qantas is having people working under its sales team that has a critical role in its
marketing struggles. Such people are trained by the company in the persuasive techniques
and to show respect towards customers by undertaking the preferences of the customers. The
people working in the customer service department are contacted by the customers in case of
any issues faced by them in the products. The people of Qantas working with the suppliers
play a significant role in enhancing the quality of the final products. Finally, the people
working at the retail stores assist the customers on the sites and help them in finalizing the
products as per their needs.
Process: Qantas has installed systems for making products available. This system notifies
retailers whenever there is low inventory. The company provides them more products to
replenish the stock. Qantas has also an online delivery process where orders can be attained
in the systems. The appropriate products are shipped on the basis of the orders to the delivery
service provider. The company is vigorously engaged in the researching market opportunities
to better understand the needs of the customers. It creates understanding for the company
regarding the customer needs through the feedback collected.
Physical evidence: The company has attained popularity in selling its products in the unique
color packaging which is easily identifiable on the shelves. It also makes easier for the
customers to discover these shelves in the full retail stores. Qantas has even online website
which is user-friendly too. It enables customers to sight the products in the good quality
images from the various angles.

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Productivity: Qantas has attained productivity which has the capability to deliver to the
customers. The productivity is combined by the company with the quality provided in the
products. The company believes in the best quality every time. The comprehensive
engineering services are offered by the company twenty-four hours per day by the highly
experienced and qualified engineers. The efficiency has been attained by highly motivated
engineers.
Recommended changes
The recommended strategy for the product is to introduce produce strategy involving
innovative products which are in line with the latest trends in the market. Qantas should pay
enormous significance to the product planning. The company is suggested to have different
business and economy class along with the separate in-flight passenger entertainment
services. The company is required to identify opportunities within the market and introduce
innovative products. Qantas should even test newly introduced products before going for the
commercialization. The company should also extend its benefits for the customers like
warranties, after sales service, delivery, credit, helpline services and more. The company
should widen its product portfolio in order to meet the requirements of the customers (Wirtz
& Lovelock, 2016). The company is even recommended to offer low cost flying activities.
The recommended change for Qantas in the place perspective is to open shop on social media
where products can be sold along with the social media posts. It enables the company to
generate more sales. The company is also recommended to focus on enhancing its online
website the way that it enhances to be more users friendly. The company should make sure
that the products of the company are sold to large retailers by personal selling. It is because
large retailers attract a large number of customers. It can ensure an increase in the sales of the
company. Qantas should open its own retail stores where it can provide all of the products. It
can help the company to save costs as the retailer and wholesaler margins can be saved.
The recommended changes by the company in its pricing are the introduction of discounts
and allowances. The lower prices for a short period of time can appeal to the customers and
the company can attain market share. The company can even reduce a percentage off on the
price of its products. Qantas is recommended to use psychological prices where the price of
the products seem to be lower, for instance, the product worth of $100 can be priced at $99 as
it is deliberated to be lower. The company is also recommended to bring changes by

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introducing new products accompanied by a price penetration strategy. This strategy initially
lowers prices compared to the competitors and later on increases the prices once it becomes
popular.
The recommended changes for the promotions are to hire influencers on social media like
bloggers or popular celebrities and comprise them in the advertisements. The bloggers can
post on the social media concerning the company which can help in the promotions; it can
enhance the acceptance of the products by the common public. An advertisement campaign
should also be initiated to deliver a consistent message on the media platforms. It can
increase brand awareness among the public (Motamarri, Akter & Yanamandram, 2017). The
company is recommended to undergo several digital marketing campaigns to enhance online
traffic on the website. It comprises a banner advertisement, creating blogs and search engine
optimization. Qantas should also start gathering data concerning customers and initiate
sending them a message by the SMS or email. It can ultimately result in the repeat purchase
through the customers. The company can even make social media posts which are relevant to
the target audience. It can encourage the customer’s action by sharing posts with friends and
feedbacks. The company can even follow the latest trend on social media like memes,
hashtags and more (Shaw, 2016).
The recommended people strategy for the Qantas is to undergo the training for the customer
service, sales force and recruiting people as they play an important role in offering value to
the customers. The incentives should also be provided to the sales forces by the means of
bonuses for meeting targets.
The recommended process strategy for Qantas is to use computers for handling processes in
order to increase efficiency and timely delivery of the products to the customers. The
company should always look to innovate on a constant basis in the process for the costa and
efficiency (Jones, et al. 2015). It can automatically lead to lower prices for the products.
Qantas should do a survey on a regular basis concerning its packaging so that improvements
can be made. The company can even set its own store where a shopper-friendly environment
can be provided to the customers in order to encourage sales.
The company is recommended to construct a reputation for the Excellency in the customer
service, security and for the operational reliability like engineering and maintenance.
Productivity can be attained by the company through innovating and delivering world-class

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customer service (Payne & Frow, 2017). Qantas can even remain competitive by ensuring
that IT systems and businesses processes are efficient and flexible. The company is intended
to enhance the return on IT investments. It is also recommended to Qantas for looking IT
experts which can increase productivity. It can also help the company to save time and
resources over its multiple business lines (White, 2018).
Areas where customer expectations exceed the company’s performance
Qantas has unique competitive advantage which has helped in attaining the greatest
performance. The customers expect more from the company. The customers interact with the
Qantas fundamentally in the several ways than the parent’s generation. The spending power
of the customers influences the growth of the company. The choices are increasingly
determined by the Qantas’s values and social impact like its products and services. The
expectations of the customers reflect value as an inclusive company, the role played in the
community and the commitment to foster innovation. The company has been focusing on the
customers as they step off the direct in order to capture the experience, suggestions and
feedback. The customers are also showing interest towards the physical wellbeing, state of
mind, personal time and space. The customers engagement with the company highlights how
passionate they are to be part of the evolution of the extra-long haul travel. The customers
offer a ‘a sense of separation’ experiences where customers can be social but then zone out
with the virtual reality relaxation zones or through the broader flight. The concerns like space
to do gentle exercising, comfort and promoting circulation is expected by the customers along
with the wireless and noise proof headsets (Shaw, 2016). The innovative cabin designs in the
whole aircraft deliberating seat and non-seat spaces to concentrate on the extensive range of
the traveller’s requirements comprising sleep, comfort, entertainment, dining and state of
mind. The inflight café is also expected by the customers where alcoholic and non-alcoholic
beverages are served like fresh juices, herbal teas, mock tails and tisanes along with the
snacks comprising sips with the vege sticks and treat foods. On the other side, Qantas is
already offering stretch classes at Perth transit lounge providing fifteen minute stretch
routines for the travellers prior to and following the long hault flight (Wirtz & Lovelock,
2016). The outdoor spaces are also offered by the company where customers can access fresh
air and natural sunlight before and after flights. The inflight menu is also designed after the
scientific research in order to determine the best ingredients.

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References
Jones, M.A., Reynolds, K.E., Arnold, M.J., Gabler, C.B., Gillison, S.T. & L&ers, V.M.,
2015. Exploring consumers’ attitude towards relationship marketing. Journal of Services
Marketing, 29(3), pp.188-199.
Lovelock, C. & Patterson, P., 2015. Services marketing. Pearson Australia.
Motamarri, S., Akter, S. & Yanam&ram, V., 2017. Does big data analytics influence frontline
employees in services marketing?. Business Process Management Journal, 23(3), pp.623-
644.
Payne, A. & Frow, P., 2017. Relationship marketing: looking backwards towards the
future. Journal of services marketing, 31(1), pp.11-15.
Pomering, A. & Johnson, L., 2018. Building sustainability into services marketing: exp&ing
decision-making from a mix to a matrix. Sustainability, 10(9), p.2992.
Raynes, C. & Tsui, K.W.H., 2019. Review of Airline-within-Airline strategy: Case studies of
the Singapore Airlines Group & Qantas Group. Case Studies on Transport Policy, 7(1),
pp.150-165.
Shaw, S., 2016. Airline marketing & management. Routledge.
White, L., 2018. Qantas still calls Australia home: The spirit of Australia & the flying
kangaroo. Tourist Studies, 18(3), pp.261-274.
Wirtz, J. & Lovelock, C., 2016. Services Marketing: People, Technology. World Scientific
Publishing Company.