HI5004 Marketing Management: Qantas Airways Report & Analysis

This report provides a comprehensive marketing analysis of Qantas Airways, focusing on its competitive position in the global market and its expansion potential. The analysis begins with an executive summary and table of contents, followed by an examination of the airline's competitors, includi...Read More

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
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Executive Summary
The focus point of discussion in this report will be to analyse the competitive information
about Qantas Airways in the global context, along with its parent country, which is Australia.
The environmental scanning will be done on the products and services provided by the
organization, which will help them to expand their business in untapped market places. The
demand of the products and services of Qantas towards the market will also be discussed,
along with the market segmentation, target and positioning on the untapped areas where they
have the ability to expand their business in future context. It will help to strategize their
marketing plans which will be required to expand their market.

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Table of Contents
Introduction................................................................................................................................3
Information about Competition..................................................................................................3
Environmental Scanning............................................................................................................4
Political Factors......................................................................................................................4
Economic Factors...................................................................................................................4
Social Factors.........................................................................................................................4
Technological Factors............................................................................................................5
Legal Factors..........................................................................................................................5
Environmental Factors...........................................................................................................5
Demand Forecast........................................................................................................................6
Segmentation, Target and Positioning.......................................................................................6
Geographic.............................................................................................................................6
Demographic..........................................................................................................................6
Behavioral..............................................................................................................................6
Psychographic........................................................................................................................7
Target Market.........................................................................................................................7
Positioning..............................................................................................................................7
References..................................................................................................................................8

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Introduction
The focus point of discussion in this report will be to analyse the competitive
information about Qantas Airways in the global context, along with its parent country, which
is Australia. The environmental scanning will be done on the products and services provided
by the organization, which will help them to expand their business in untapped market places.
The demand of the products and services of Qantas towards the market will also be discussed,
along with the market segmentation, target and positioning on the untapped areas where they
have the ability to expand their business in future context. It will help to strategize their
marketing plans which will be required to expand their market.
Information about Competition
Qantas Airways Limited is the flag carrier from the region of Australia, and is the
largest airline there in terms of the number of fleet size, international destinations and
international flights (Homsombat, Lei and Fu 2014). It is also the third oldest airlines
company around the world, and the organization started their operation in the year of 1921,
and based in Queensland. The full name of the organization is Queensland and Northern
Territory Aerial Services. As the organization is moving towards its centenary year, they
have decided to expand their business in those areas where they have not touched the runway
yet. The main competitors of the organization of Qantas are Etihad Airways, Qatar Airways,
Lufthansa, Emirates, British Airways, Air India and Singapore Airlines among others
(Ashwini Nand, Singh and Power 2013).
Competitor Areas Served
Etihad Airways Globally
Qatar Airways Globally
Lufthansa Globally

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Emirates Globally
British Airways Globally
Air India Globally
Singapore Airlines Globally
Environmental Scanning
Political Factors
Political stability and the importance of transportation sector in the economy of the
country possess a huge impact on the aviation sector as a whole. Lots of obligations are to be
maintained by the organization of Qantas if they want to expand their market into some
untapped areas, as the security of the passengers along with the employees in the aviation
sector are related with it. The payment of taxes is also an area where they need to focus on.
The other major thing which the organization need to focus on is terrorism, for which the
security from the local as well as national government (Wittmer and Hinnen 2016).
Economic Factors
Another important aspect in aviation industry is the financial or economic issues.
There is fluctuation in the currency rates of the organization. The recession in the regions
where Qantas are running their business along with the new market where they want to
expand plays huge impact on the business operations of the organization. The foreign
exchange rates also affect the business of Qantas, and they have to strategically ready to face
the consequences and overcome all these barriers to maintain the profitability of the
organization.

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Social Factors
Being an aviation organization, Qantas has to deal with a diverse culture, which
involves the passengers as well as the employees associated with the aviation sector. Brand
identity plays an integral part in this highly competitive and sensitive industry. Qantas
possesses a strong brand identity in the market places where they operate, and this will help
them to capture the untapped market where they want to expand their business. They are
globally known due to offering of various kind of services in low cost prices and according to
the needs and wants of the passengers.
Technological Factors
Innovation is the most spoken word in any kind of industry, and aviation is not
outside that. Qantas Airways has developed themselves by offering their products and
services. As people have become more tech-savvy with the development of the technology,
the online services provided by the organizations helps to attract new customers along with
the retention of the old customers. Improvement in technology will increase the expectation
of the customers, as they already use the advanced technology through offering of their
products and services (Ho 2014).
Legal Factors
This is also another important aspect in analyzing the external environment of the
organization of Qantas. The health and safety rules need to be followed by the organization
globally, along with the food and hygiene roles. The same has to be maintained in the market
places where they are planning to expand their market (Cui et al 2016).
Environmental Factors
Aviation industry is one of those industry who have to maintain the environmental
standards, through which no harm can be done on the society and the animals in the places

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where they are operating. The wastage of fuel is not at all good for the environment and
Qantas need to pay attention in this context globally, and follow the environment protection
system (O’Connell 2016).
Demand Forecast
It can be noted that the number of tech-savvy people are increasing nowadays; Qantas
Airways need to engage more people through their official social media accounts. Through
this, they will be able to analyze the market of India and South Africa, the two places where
they can start their business operations. The past data of the demand towards the aviation
industry will help the organization to know about the exact requirements of the people around
those regions. It will help Qantas to effectively formulate their strategies to capture the
market share of those untapped places (Arjomandi and Seufert 2014).
Segmentation, Target and Positioning
The market segmentation of Qantas can be represented as follows (Díaz and Martín-
Consuegra 2016):
Geographic
The market is segmented as national and international market by Qantas, so that the
type of customers can be segregated effectively. The major cities can be targeted in India and
South Africa to start their business operations.
Demographic
Through this segment, those people can be targeted in the untapped areas whose
income is high, and details like education, age and occupation can be seen and can be
targeted to avail the services of Qantas.

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Behavioral
Qantas can segment their market according to the lifestyle of the people, as fares in
aviation industry cannot be afforded by everybody. The loyal customers of the aviation sector
can mostly be targeted.
Psychographic
Qantas need to target those people who possess a lavish lifestyle and vigorously use
the aviation sector for travel or work purposes. It will help to identify the prospects from the
new market places.
Target Market
The major targets for Qantas in the region of India and South Africa will be the
businessmen and sales and marketing professionals, along with the students who travel from
their home city to other arts for educational purposes. They will be targeted through special
discounted offer on either their first ride and combo rides, if they avail a particular number of
rides within a month (Pearson and Merkert 2014).
Positioning
The main positioning factor of Qantas is providing premium services and dedication
of doing better. The organization is always striving to offer better services to its passengers,
which will help them enjoy the competitive advantage over its rivals along with expanding
their market share in new areas like India and South Africa, and to attract new people from
those market areas (Whyte and Lohmann 2016).

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References
Arjomandi, A. and Seufert, J.H., 2014. An evaluation of the world's major airlines' technical
and environmental performance. Economic Modelling, 41, pp.133-144.
Ashwini Nand, A., Singh, P.J. and Power, D., 2013. Testing an integrated model of
operations capabilities: An empirical study of Australian airlines. International Journal of
Operations & Production Management, 33(7), pp.887-911.
Cui, Q., Wei, Y.M., Yu, C.L. and Li, Y., 2016. Measuring the energy efficiency for airlines
under the pressure of being included into the EU ETS. Journal of Advanced
Transportation, 50(8), pp.1630-1649.
Díaz, E. and Martín-Consuegra, D., 2016. A latent class segmentation analysis of airlines
based on website evaluation. Journal of Air Transport Management, 55, pp.20-40.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines
strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and
Transportation Review, 63, pp.1-16.
O’Connell, J.F., 2016. Airlines: an inherently turbulent industry. In Air Transport in the 21st
Century (pp. 109-146). Routledge.
Pearson, J. and Merkert, R., 2014. Airlines-within-airlines: A business model moving
East. Journal of Air Transport Management, 38, pp.21-26.
Whyte, R. and Lohmann, G., 2016. Airline business models. Air Transport Management: An
International Perspective; Budd, L., Ison, S., Eds, pp.107-121.

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Wittmer, A. and Hinnen, G., 2016. Airline passengers. Air Transport Management-An
International Perspective". In: Budd, L., Ison, S.(Eds.). Routledge, London, New York, p.139.