Analyzing Jetstar Airways' Marketing Strategies and Market Response

The assignment provides a comprehensive analysis of Jetstar Airways' marketing strategies, exploring the airline's efforts to position itself within the competitive landscape of low-cost carriers. By examining market responses, consumer satisfaction levels, and strategic brand migration approaches, this study aims to understand how Jetstar sustains its operations amidst industry challenges. The discussion includes insights from various scholarly articles and reports, highlighting key factors like operational performance, customer service quality, and innovative marketing practices that influence Jetstar's success.

Marketing Foundationswin

Marketing Foundations 1
Executive Summary
In the modern and technologically advanced world, the demand for airflights is increasing with a
rapid rate and so the competition in the airlines industry. This demonstrates the need of a
marketing plan for the organisation, Jet Star airways in order to regain the market share and have
reliable customer base. The marketing plan will help in suggesting the way by which the airlines
could enhance its visibility in the market.
Summary of Marketplace Environment
Jet Star airways is benefitted with its brand name i.e. Qantas as it is the market leader of
Australia. Jet Star holds a good position but there are competitors who are offering better flight
experiences to the travellers. This has been resulting in decrease sales of Jet Star. However there
are some travellers who are satisfied with eth services of the airlines but still there is a vast
majority of the people who are changing their purchasing pattern. Thus, to influence those
travellers and to retain the market share, there is a need to bring improvements in the services by
Jet Star airways.
Target Market and positioning
The selected target market for Jet Star airways is the business travellers and the leisure travellers.
The airlines as positioned itself as the low cost airlines which offers valuable services at the
lowest process possible in comparison with other airlines.
Marketing Mix Factors
In respect with product, airlines would increase the number of services and will also upgrade
then. In respect with the prices, the airlines will keep the process low to attract the customers. In
respect with promotion there will be sued both traditional as well as online media channels.
Lastly in respect with place or distribution, the airlines will have both direct and indirect selling
of tickets.
Timeline
In order to be successful and winning, the strategy will take 12 months will be divided into
various phases comprising planning, launching and evaluation. In all these phases there will be

Marketing Foundations 2
including the marketing mix strategies of Jet star and then adequate check and control of the
desired outcomes.
Evaluation
For the evaluation of the competitor response, customer satisfaction and the campaign, sales,
there will be used methods such as return on investment, customer feedbacks and competitor
response so that the airlines could evaluate that whether the customers are satisfied or not; the
competitors are copying the strategies or not and is the campaign effective to bring sales.
Benefit to the company
The airlines will be benefitted as the customers who will be switching to other brand or airlines,
will remain reliable to Jet Star airways only. Secondly the airlines will also enhance its brand
visibility which will help the airlines to have more international flights.

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Contents
Target Market & Positioning...........................................................................................................3
Selection of Target Market..........................................................................................................3
Positioning Strategy.....................................................................................................................3
Marketing Mix Strategies................................................................................................................5
Product/Service............................................................................................................................5
Price.............................................................................................................................................8
Promotion....................................................................................................................................9
Place...........................................................................................................................................11
Evaluation and Control..................................................................................................................12
Evaluation of objective attainment........................................................................................13
Implementation & Schedule..........................................................................................................14
Gantt chart.................................................................................................................................14
Conclusions and Recommendations..............................................................................................15
Reference List................................................................................................................................16

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Target Market & Positioning
Selection of Target Market
Jet Star airways was established in the year 2003 by its parent company Qantas Airways. The
most favoured destinations of the airlines include Asia Pacific, New Zealand and Australia with
approximately a total run of around 4000 flights in seventy five different destinations (Jetstar
Airways, n.d.). It means the domestic individuals of Australia and the mentioned destinations are
the key individuals who are the regular customers of the airlines and are also contended with the
services of the organisation. The results and the analysis suggested that in past few years there
has been found a change in the preferences of the customers and so the percentage of travellers
has reduced. There has also been analysed that there is a shift in the customers to other
competitive airlines have forces the airlines to work upon the strategies and improve the
marketing mix. The services of ten airlines are affordable in nature and this offers a competitive
benefit to the customers. The target market for the airlines are the business travellers and the
leisure travellers as they are the ones which takes use of the airlines at the major segment
(Kollmorgen, 2017).
The target market will reorganize the leisure customers and the business travellers as both the
categories hold the maximum percentage of the customer base and also possess higher disposal
le income in comparison with eth female individuals or the youngsters. It has been analysed that
the target customers are more likely to use the modern technology and this means that they are
more likely to have a communication through emails and the modern communication channels
rather than the traditional methods. Furthermore, the leisure travellers and the business travellers
are comparatively more active and are more likely to respond back or can be fascinated through
these channels (Jetstar Airways, 2017).
Positioning Strategy
Jet Star airways benefitted itself through the leadership position of Qantas in the airlines industry
as Qantas holds a strong market share and launching under such powerful brand offer high
benefits for fetching the attention of the masses. In earlier stage the airlines was costly but it
didn’t worked for Jet star. And thus the airways established it as low cost airlines targeting eth

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middle income travellers. The primary customers who are targeted comprises of the one who
look for cheap fare flights (Acehsc, 2014).
Figure 1 – Perceptual Map Jet Star airways
Premium quality
Low price
Standard quality
High price
Tiger Airways
Emirates
Jet Star airways
Air Asia
Qantas
Singapore Airlines

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Marketing Mix Strategies
Product/Service
The product or the service offered by Jet Star airways is the flights destinations which is
comparatively low cost. The product is also a bundle of various attributes designed by Jet Star
airways in order to satisfy the needs of the customers. Such as the following:
Scheduling features
It comprises of the aircraft type, number of direct flights and stops, time of arrival or departure
and the route frequency. Being one of the subsidiaries of a strong brand, there is extensive
national coverage. There are also provided express services under which there are more flights in
peak season (Wang, Leou and Li, 2016). Jet Star flies from Brisbane, Sydney and
Melbourne to the various leisure destinations of Australia for example Cairns and Tasmania,
Sunshine Coast and Gold Coast. There are also international flights of Jet Star International
which flies to destinations including the Pacific and Asia (Domestic Aviation Activity, 2017).
Comfort based features
It includes components such as seat width, in-flight entertainment and in-flight drinks and meals.
The food menu of Jet Star has been inspired by recognized chefs. The flights have being
configured in new premium economy class, business class, economy class and first class. There
are LCD screen, self service bars, bed facility, USB and laptop ports, and access to webmail,
small lounge and other various services which are offered to the passengers (Krishnan and
Malick, 2015). The airline spends millions in the up-gradation and improvement of the flights.
To offer the customers a seamless experience there are also provided new generation check in
system, mobile check, electronic bag drops, automated bag drops and chip enabled rapid flyer
card (Beaumont, 2007).
Brand Name

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Qantas is one of the most renowned and leading brands of Australia and therefore for Jet Star it
is a key marketing tool. The brand name and its high visibility and recognition support the
growth of Jet Star. If anything good will get associated with the brand name then it will benefit
Jet Star in terms of increased number of travellers (Whyte and Lohmann, 2015). To make
the brand strong, it is also necessary that Jet Star must associate itself with branding campaign.
And the services of the airlines must also mesh up for fetching the attention of the new ones and
retaining the old ones (Holloway, 2017). There is a need that at least twenty five new Boeing
and Airbus aircrafts are required for serving the customer with more rapid and excellent services
so that customers can enjoy more privacy. There is also required to have lower number of seats
in the rows and as a result higher leg-space and maximum pushback. Other things which should
be included are larger washrooms, customization of the meals, no flight delays, luggage loss
(Cheaponana, 2014).
Table 1. Product attributes
Current Product Attributes New Product Attributes Resulting Consumer
Benefit
Jet Star airways
-Domestic Flights
-International Flights
Premium Jet Star airways
- Excellent on-board health
arrangements.
- Medical services
- Faster and smarter online
and mobile check ins
- in-flight entertainment
options
- Special entertainment
programs for children
- Strategic alliances
-Travellers will have the
feeling of satisfaction and as
a result of special care there
will be increased numbed of
travellers with requiring
medical assistance or have
medical history
-Tit will make the travellers
more confident about the
airlines
-Improved network and
communication channels will
improve the brand visibility
of Jet Star airways

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Price
The pricing strategy of Jet star is low cost so that it can provide the travellers with lowest price
possible and is justified by the fact that there are individuals who primarily compare the benefits
on the basis of prices or cost charged for the services. There will be different fares such as full
fares which will benefit the business travellers in terms of refund; promotional fares; loss
leading, etc. (Whyte and Prideaux, 2007).
Table2. Fares at Jet Star airways and competitors
(Source: Cheaponana, 2014)
As shown in Table 2, Air Asia and Tiger Air are the two competitors who also offer their
services at low cost but in comparison with Jet Star airways both charge a little high. Jet Star
does not charge any kind of booking or service fee whereas both the competitors charge certain
amount of fee as booking fee (Gross and Lück, 2011). In order to have improve brand
visibility of the brand there must also be offered additional benefits to the travellers such as there
must be an option of complete refund for the business travellers as well as at the time of instant
flight booking, there should some special offers and discounts available only for those flyers. Jet
star must also remain on it its loss leading strategy by introducing more low fares for capturing

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the market share and attaining a number of competitive benefits (Tretheway and Kincaid,
2005).
Promotion
Promotion is the way by which Jet Star communicates its services and its image to the travellers.
The promotional strategies of the marketing mix of Jet Star comprises of the following:
Advertising and Media
Jet Star take use of the advertising agencies for creating media advertisements for radio,
television, brochures, newspapers, magazines, billboards and posters in travel agents. Jet Star
takes much use of television advertising starring celebrities for fetching the attention of its
customers once again, the airline took sue of campaigns and other direct advertising. In order to
reach the target customers, there will be elaborated customer profile (Ashwini Nand, Singh
and Power, 2013). The leisure travellers and the business travellers tend to have regular
visits to various different destinations, thus they are more exposed to eth media advertisements
too and are also much engaged with social media (Snyder and Pham, 2014). These people
watch video content on social media and so the campaigns of Jet Star airways will be focusing
on the video advertising on these social media sites. The budget approximately AUD300, 000
will be used for the advertisements comprising of magazines, billboards, radio, television, etc.
By having strong advertisements on the online media, there will be effective reach to the target
audience (Graham and Vowles, 2006).
The table shows the media schedule of Jet Star airways for the period of twelve months and will
initiate from the month of February 2018. There will also be used the radio advertisements for
next twelve months as it a very cheap and .low cost advertisement. For reaching teh target
audience radio is an efficient advertising tool (GRADE, n.d.). The billboards which will be
used will depict the message for the initial two months for reaching the highest set of travellers
or the target audience and then will have repeat implementation in the month of May, until the
campaign ends. In respect with the magazines, once there will launched the Jet star premium
flights, it will be published at the cover as well as the last page of the magazines (Chan,
2014). There will be double spread exposure for March month. In April, there will be double
page magazine publishing with complete information regarding the flights and also few

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interviews with the travellers (Charoensettasilp and Wu, 2014). There will also be
allocated some part of the budget for the online media and advertising as it is also one of the
major tools for fetching the attention of the audiences (Lim and Mohayidin, 2011).
Table 3. Jet Star media schedule for next 12 months
Media February March April May June July August
TV 6 slots - - - - - -
Radio
Billboards -
Magazines Cover and last
Page
Double Spread double Page - - - -
Online - - - - -
Media September October November December January
TV - 3 slots 3 slots - -
Radio
Billboards
Magazines Double Page Double Spread Double Page - -
Online - - -
Sales Promotion
The sales promotion will be executed at the beginning of February when the premium flights will
be launched for encouraging the number of travellers in first few months. There will be mainly
two types of sales promotion that will include the psychological promotion and the price deal
promotion (Wittmer and Beritelli, 2011). In the psychological promotion there will be
offered a fixed percentage of discounts on the tickets and in the price deal promotion there will
be offered two-for-one ticket sale where the person who is second traveller will be allowed to
travel on the respective cost of charges and taxes. Such sale promotion will encourage the target
audiences to travel by Jet Star airways and have additional benefits (Whyte, n.d.).
Public Relations/Publicity
For building strong association among the airlines and the travellers, there will be a vital role of
public relations. With the help of the campaigns and the social services, there will be enhanced
brand visibility of the airlines (Roberts, et al., 2012). The airline will also donate a