MMK251 Services Marketing Report: Jetstar Airline Analysis

This report provides a detailed analysis of Jetstar's services marketing, focusing on its physical environment and the application of Bitner’s Servicescape Model. The report begins with an executive summary and introduction to Jetstar, a low-cost airline. It then explores the purposes of Jetstar's physical environment, including fuel efficiency, aircraft emissions, noise reduction, and recycling initiatives. The core of the report applies Bitner's Servicescape Model to evaluate how Jetstar manages its physical environment to enhance customer experience, safety, and environmental sustainability. The analysis examines various aspects such as passenger experience and environmental considerations. Finally, the report offers recommendations for better designing and managing Jetstar’s physical environment to improve customer satisfaction and operational efficiency. The report is a comprehensive overview of Jetstar's marketing strategies and their impact on the airline's performance.

RUNNING HEAD: Marketing 0
jetstar
Services marketing

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Executive summary
The services marketing is an extensive category of marketing strategies which focuses on
selling anything other than the physical product. It comprises personal services to
experiences. The growth of the service sector contributes extensively to the economic
progress of the nation. This report comprises the services marketing of Jetstar which is an
Australian low cost Airline having headquartered in Melbourne. The report defines the
purpose of physical environment which has role in maintaining current trends by
continuously reducing customer dissatisfaction level. Bitner’s service scape model is an
integrative framework has been described in the report which has a role in explaining the way
customers and service staff responds to the key environmental dimensions. Finally the
recommendations are given for better designing and managing organization’s physical
environment.
At the end, it can be concluded that physical environment has the ability to influence
behaviour to form a reputation which is specifically specious for the services business like
Jetstar airlines.

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Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Purposes of the physical environment........................................................................................3
Application of Bitner’s Servicescape Model to the physical environment................................5
Recommendations for better designing and managing an organization’s physical environment
....................................................................................................................................................6
References..................................................................................................................................8

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Introduction
Jetstar is committed to providing the best flight experience to the customers. Jetstar is a low-
cost airline based in Singapore. The company also assures that safety is its highest priority. It
strives to make every part of the experience uncomplicated, pleasant and enjoyable. The
customers are provided help twenty hours a day and 7 days a week. Jetstar is having the best
policy for the privacy of the personal information of the customers. Jetstar is dedicated to
safety, environmental sustainability and proactively handling risk. The company believes in
sustaining agility and reaping innovation. The values of the company comprise safety,
efficacy and a regular ‘can do’ attitude. This report includes purposes of the physical
environment of the Jetstar. The Bitner Servicescape model is applied to the physical
environment of the company. Finally, the recommendations are also given in order to design
and manage Jetstar’s physical environment.
Purposes of the physical environment
Jetstar has been successful in maintaining current trends by continuously reducing customer
dissatisfaction level. The marketing strategies used by Jetstar comprise service strategy,
pricing strategy, distribution strategy, and advertising strategy. The service strategy of Jetstar
includes up gradation of all the customer services and hiring of extra staff. This strategy also
includes training and retraining to have fluent and friendly English accents comprising highly
fluent trained staff in other languages as well (Messner, 2016). The training is also provided
by the company in contemporary and professional customer service skills, regulating bi-
yearly retraining courses. The company has even extra power to staff. The monitored
incentive based reward system is implemented in the company (Ali, Dey, and Filieri, 2015).
On the other side, as per the pricing strategy of Jetstar, airfare prices remain the same to
project the company’s position of being a low-cost airline. The distribution strategy of Jetstar
includes iPhone app as a means of distribution. It works on the theme ‘Always travel with a
smile’. The purposes of the physical environment are:
Fuel efficiency: Fuel is considered as the 2nd major outlay of Jetstar. It is almost 10% of the
total operating expenses. Therefore, augmented fuel efficiency has been realized as a topmost
industry precedence. The company has been successful in increasing fuel efficiency to almost
65% by initiating investment in different, environmentally efficient aircraft along with the
engines. The cruising speeds have been lowered (Shanmugam, and Robert, 2015). The

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computers have been used to determine optimal fuel loads along with selecting routes which
minimise fuel burn. The flight emulators have been also used than actual aircraft for pilot
training (Lower, Magott, and Skorupski, 2018). At the incidents when weather or several
difficulties delay take-off thenaircraft are held at gates with the engines shut down. The
aircraft exteriors are also kept clean by the company in order to minimize the aerodynamic
drag. Jetstar has been continuously making efforts to invest in innovative airplane and
engines which are more competent then the models replaced. Add on, gas concerns like
global warming and environmental issues are also undertaken by the Jetstar. It also
participates in several working groups on flying environmental defence. Such groups are
observing for several options to reduce aviation releases comprising operational actions and
market appliances (Kuosuwan, 2015).
Aircraft emissions: Jetstar makes efforts to reduce emissions. It focuses on dropping highly
perceptible smoke released from the jet engines. The engines used by the company obligatory
to upsurge fuel efficiency along with reducing other releases (Kim, Kim, and Hyun, 2016).
The aircraft of the company produce a smaller amount than one-quarter of the total amount of
the contaminants per landing and take off cycle (Wu, Cheng, and Ai, 2018). Hydrocarbon and
carbon monoxide emissions consequence from partial ignition at the lower power settings
used for descent or at the time of taxing at the ground. Nox is produced at the time engine are
at their warmest like during take-offs, to a slighter degree, during the cruise when jet engines
also do yield carbon dioxide and water vapor. The aircraft emit a small amount of NOx with
the concern of the rise in nitrogen oxide. The company is viewing for substantial conducts to
decrease releases in the coming time. It is an active challenge but enough ideas appear to be
promising to comprise new combustion chamber designs. This design lowers peak
temperatures at settings like high power (Ali, Kim and Ryu, 2016). The aircraft emissions
seem to because of global warming. These are even minute in the comparison of other man-
made sources. The emissions made by the company account for less than 3% of the total CO2
releases causing from burning fossil fuels like gas, wood, and oil.
Aircraft noise: The noise made by Jetstar has been one of the greatest environmental trials.
The initiatives are taken by the companyto reduce noise by the initiation of the new
technology. The changes in the design have helped in reducing the noise produced by the
shift of air as jets move through the sky at the great speeds. Great strides have been also made
in plummeting noise by dropping the speed of the drained engine. The airports can even

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peacefully co-exist with the communities due to controlling the noise of the aircraft (Kim, et
al. 2016).
Recycling: An extensive range of the recycling programs have been also implemented by the
Jetstar for plummeting the amounts of the solid waste sent to the landfills. The program also
converses trees and relevant natural resources. The recycling activities initiated by the
company include recycling of the aluminum can by flight attendants and caterers. Great usage
of the metal instruments and ceramic dishes are used aboard aircraft. The paper recycling is
used at the airplane offices. The old newspapers and periodicals left aboard are recycled. The
maintenance bases like batteries, scrap metals, and recycled parts are recycled at the upkeep
bases (Bogicevic, et al. 2016).
Application of Bitner’s Servicescape Model to the physical environment
Bitner’s service scape model is an integrative framework which has a role in explaining the
way customers and service staff responds to the key environmental dimensions. The
perceptions of this model affect the internal responses of the company. The internal responses
affect social interaction between customers and employees. This model develops
environments which appeal to the customer pleasure and avoids the atmosphere which creates
compliance (Han and Hwang, 2015). It even facilitates the operational ease and efficiency of
the organization.
Safety: It is considered that flying now days is tremendously safe. Initially, the company has
to face several safety issues. But the consideration among the government and industry
proved protection as not a competitive issue. There was also great cooperation among all the
stakeholders of the industry with the effort of making flying easier. The company has even
associated with some partners in order to track aircraft better (Durand, et al. 2016). It is
helpful in knowing the safety concerns at the earlier stage only. The interim actions are also
considered by the board of governors. The company also develops a worldwide protocol in
order to accomplish design, production, and distribution of weapons with the anti-craft
competence (Jiang and Zhang, 2016).
Passenger experience: Jetstar has a hassle-free and opportune experience for the customers.
Bitner’s service scape model has improved travel understanding over the years. The airline

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products of the company offer a enormous variety of choice from luxury to the basic seat.
The company has even a vision for future flying which is being built today. The efforts are
also being made on a regular basis to made hassle-free trips. The company is even optimistic
regarding mobile technology which helps to meet expectations of the passengers to remain
connected (Cacciolatti and Lee, 2016). The employees are even informed well about any
irregularities taking place.
Environment: The business of the company is sustainable but is equally challenging that burn
fuel to drive aircraft. The company has decided some ambitious goals. The company will cap
releases and development will be carbon-neutral. It even seeks to cut disposable emissions
back to half the levels produced before five years. The technology will enable the
environmental concern of the company by enabling effective technology (Choi, Yun, and
Ock, 2016). Modern aircraft will enter into the airline fleets by carrying them with the fuel
efficiency improvements of 20-30% over the antecedents. Another technology is also enabled
by Jetstar for the development of justifiable biofuels. The flights of the company are fuelled
by sustainable biofuels. But the challenge is encountered when the biofuels are expensive and
shirt in supply. It is identified as chicken and egg solution. The great cost is being determined
by the small measures being necessitated. The high cost leads to low demand. Jetstar is even
taking the help of the government to incentivize the usage of maintainable biofuels for
substitute power supplies like solar. Another initiative taken by the strategy is infrastructure.
The company has to decrease its speed before inflowing a busy air corridor (Han, et al. 2019).
The aircraft also burns more fuel than it should as the infrastructure cannot tackle the
demand. As per the estimations, 12% of the productivity could be expanded if air traffic
control systems operated at their optimal level. At every minute which is saved decreases fuel
burn and releases. Another concern taken by the company is to be more efficient in the
operations. The company is even working globally so that airlines can land in a constant
lineage. It is also contracted by the company for the global compulsory carbon offset scheme.
Jetstar has identified that it has to pay for at least specific of the emissions until other
objectives mature. The agreement has been made for the carbon-neutral growth commitment
(Çavdar, and Ferhatosmanoğlu, 2018).

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Recommendations for better designing and managing an organization’s physical
environment
The physical environment has the ability to influence behavior to form an image which is
specifically specious for the services business like Jetstar airlines. The service usually is
produced and consumed instantaneously as the customers experience the service within the
firm’s physical facility. Jetstar is recommended to develop several methods in order to
manage the impacts of the aircraft (Hu, and Hsiao, 2016). The physical environment should
be categorized into the ambient factors which are going to affect the sense of the humans in
the surrounding environments like temperature, light, noise, equipment, supplies, background
music, service sites, and passageways. The inflight physical environment should have
perceived quality so that there can be a positive impact on customer satisfaction (Jaworski,
2018).
The marketing strategies can be established concerning physical environment. The four
physical environmental factors like spatiality, amenity, aesthetics and entertainingness to put
optimistic impact on the apparent quality. It has been realised that the latitudinal relationship
between seats, passageways and capability constituents like storing capacity for carry-on
baggage, seat arrangement and expediency are the significant factors of the perceived quality.
More focus should be given on the perceived quality of the inflight customer as it will have
affirmative impact on the customer satisfaction. The inflight physical experience should be
segmented as it will have positive impact on the reputation and customer loyalty. The inflight
physical environment should be given more importance by assessing the contents like
satisfaction, quality and customer loyalty.
Jetstar is also recommended to differentiate on the basis of the unique competitiveness can be
increased against the recognized airlines which are well-found with new and high-class
prestige strategies. It helps in sustaining expectations of the customers and demands of the
customers so that airplanes and low fare offerings. It is also recommended to Jetstar to
maximize customer loyalty along with customer satisfaction by enhancing the quality
perceived by the customers. It is possible through creating a expansive and relaxed space
between the seats and passageways (Hubbard and Bor, 2016). It will also help the company
to increase the storage space. The constant investment in the infrastructure of the airplane is
imperative than investing in in-flight entertainment factors. It can form an important basis for
the development of the competitive edge made possible through marketing efforts.

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mature). International Journal of Contemporary Hospitality Management, 27(4), pp.585-607.

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