Marketing Fundamentals

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Marketing Fundamentals
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Table of Contents
Executive summary.................................................................................................... 3
Introduction................................................................................................................ 5
Background of the market situation...........................................................................5
Microenvironment analysis......................................................................................... 6
Macro-environmental analysis.................................................................................... 8
SWOT analysis.......................................................................................................... 10
Marketing objectives................................................................................................ 11
Marketing strategy................................................................................................... 11
Segmentation, targeting, differentiation, and positioning........................................12
Marketing mix........................................................................................................... 13
Conclusion................................................................................................................ 15
Bibliography............................................................................................................. 17

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Executive summary
Established in 1920, Qantas airline is the third oldest airline in the world. It operates both
domestic and international flights. Qantas airline has the largest market share of 65 percent in the
domestic flight environment in Australia. The airline operates the domestic market using the
Qantas link and Jetstar brands.
The microenvironment of Qantas airline investigates the factors affecting the industrial
operation of the airline. The report has used porter’s five forces for micro-environment analysis.
From the report, Qantas faces fierce competition from other airlines include Emirate and British
Airways. Additionally, there is a high threat of substitute products in the domestic market and
high bargaining power of the suppliers. The airline industry is supplied by Boeing and Airbus ad
this gives the suppliers high power. The macro-environment has been investigated using the
PESTLE analysis. Some of the factors affecting the airline include the looming economic
recession in Australia that has decreased per capita income, subsequently the purchasing power
of the consumers. Technology has however helped the airline to streamline its services and adopt
online flight booking that reduces the long queues during check-in.
Some of the marketing objectives of the airline include increasing sales by reducing
expenditures while increasing the profit margin. The airline also wants to expand its operation
globally. Qantas uses market segmentation, product differentiation, targeting and market
positioning in its strategy. In segmentation, the airline categorizes the passengers according to
spending capabilities. The airline has low fare Jetstar and premium priced Qantas brand. This
double branding has also enabled Qantas airline to target different market audiences. The high
brand reputation and good customer service have enabled the airline to strategically position
itself in the market.

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In the marketing mix, Qantas has an assortment of products ranging from spacious
aircraft, airport lounges, frequent flyer programs, and inflight meals and entertainment. The
airline uses a cost margin pricing strategy. Additionally, Qantas uses advertising, publicity and
sales promotions to market the airline. In the distribution, Qantas applies both direct and indirect
sales.