A Comprehensive Report on the Marketing Analysis of Qantas Airways

This report provides a comprehensive marketing analysis of Qantas Airways, a prominent airline operating in the Asian market. It delves into various marketing tools, including SWOT analysis, Porter's 5 Forces, PESTLE analysis, and marketing mix strategies, to assess Qantas's market position, competitive landscape, and internal and external factors influencing its performance. The report examines Qantas's marketing strategies, objectives, and how it aims to achieve its business goals. It also explores the company's approach to customer service, branding, and pricing. Furthermore, the analysis considers the airline's competitive advantages, the bargaining power of suppliers and buyers, and the threat of substitutes and new entrants. The report concludes with recommendations for Qantas Airways based on the analysis and its findings.

RUNNING HEAD: A REPORT ON THE MARKETING ANALYSIS OF QANTAS
AIRWAYS
Topic- A report on the marketing analysis of Qantas airways
Name of the student-
Name of the university-
Authors Note-

1A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
EXECUTIVE SUMMARY
The paper aims to make a detailed market analysis of Qantas airways. The market analysis in
this report is done with the help of different marketing tools such as SWOT analysis,
PORTER's 5 forces, marketing mix, and many other tools that have also been used. This
paper will also say about the external and internal factors that are affecting the company. The
marketing strategies that they follow are also mentioned. This paper is also focused on the
objectives of the company and how they are achieving it with various marketing tools.

2A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
Table of Contents
Introduction................................................................................................................................3
Marketing analysis of Qantas Airways......................................................................................4
Porter's 5 forces model of Qantas Airways............................................................................4
PESTLE Analysis of Qantas Airways....................................................................................7
Marketing Mix of Qantas Airways........................................................................................8
The SWOT analysis of Qantas Airways..............................................................................10
STP analysis of Qantas Airways..........................................................................................11
The objective of Qantas Airways.........................................................................................12
Recommendations....................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15
Appendices...............................................................................................................................18
Appendix A..........................................................................................................................18
Appendix B..........................................................................................................................19
Appendix C..........................................................................................................................20
Appendix D..........................................................................................................................22
Appendix E...........................................................................................................................23

3A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
Introduction
This report is based on the analysis of the market of Qantas Airlines. It is the third
oldest airlines in the world after KLM and Avianca. This airline was founded in the year of
1920. Its headquarter is in Sydney, Australia. The CEO of of Qantas airlines is Alan Joyce.
The Asian market of Qantas airlines has a number of giants players which is making the
marketing competiton more intense. By using differnet marketing tools such as Marketing
mix and SWAT analysis, Qantas is resolving such issues to sustain in the market.

4A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
Marketing analysis of Qantas Airways
Qantas does its business in the travel sector. They are linked with the industries of
Australia. It is regarded as one of the best and one of the strongest brands in Australia. They
provide an affordable service to their customers(https://www.qantas.com/in/en.html). The
marketing strategy that Qantas follows helps them to achieve their objectives and business
goals. The marketing done by Qantas airways helped them to grow more in the competitive
market. (Prakittachakul 2020). The detailed marketing analysis of Qantas airways that is
operating in Asia will show what are the marketing strategies that they follow and how they
are using it to achieve their targeted goals(Homsombat, Lei and Fu, 2014).
Porter's 5 forces model of Qantas Airways
Porters 5 forces model analysis is the marketing tool that helps them to understand how a
company operates to earn more profit from the market.[Appendix A] Porter's 5 forces model
of Qantas airways consists of :
 The threat of new entrants
 Bargaining power of suppliers
 Bargaining power of buyers
 Threat from substitute products
 Rivalry among the existing players
Threats of new entrants- The entry of fresh players in transportation brings innovative ways
of doing business in the Asian countries which creates pressure on Qantas airlines by
lowering the price of the tickets and reducing the cost(McDonald and Millett 2001). Qantas
Airways operates its business in that industry where the scale of the economy is fairly

5A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
difficult. Thus it helps the existing companies who are already in the market( Xian 2018).
This is the reason the cost of the new company becomes more and it reduces the threat from
new entrants in the market of the Asian countries. Within the industry, the differentiation of
the product is strong as the companies in these industries sell different types of products more
than one type of products. People always look after the differentiated products. This is
another reason that reduces the threats of the new entrants. They strongly focus on customer
service and the advertisement. The capital requirement that is needed to enter the aviation
industry is very high in the Asian market. Due to this the cost of expenditure of the new
entrants become more hence it creates a problem for the new player to enter into this
market(Alexander and Merkert 2017). The capital requirement is more in this market because
it needs a high level of research and development. Qantas airlines take huge advantage of the
scale of the economy and it helped them to tackle their competitors with its cost advantages.
Qantas airways focus on advertising so that it can make their brand stronger and can reach all
the people. This helps them to bring new customers instead of leaving them to the new
entrants.
Bargaining power of suppliers- The control of the suppliers over the price is very less in the
industry of Qantas airways in Asia. So the bargaining power of the suppliers is very less. The
products that the suppliers supply to the Qantas airways are more standardized and less
differentiated. So if the company likes to switch then they can do it easily at a low cost.
Within Asian industry, the suppliers do not supply other things to Qantas airways which
means there are not substitutes for the product and this is the reason the supplier’s bargaining
power is less. Qantas airways is a very important customer to the suppliers that means their
profit and loss depend on the airlines as well(Kreutzer 2019). Therefore the suppliers provide
reasonable rates to their customers. Qantas airways are the main customer of the suppliers
therefore it helps them to develop a good relationship between them where both the sides will
get the benefits. Building up a good relationship with their suppliers helps them to buy new
products at a low cost.
Bargaining power of the buyers- In the Asian industry and Middle East Qantas airways
operate has less number of firms that are producing in the market. The product differentiation
of the product in the Asian market is high which is the reason the buyers who are buying a

6A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
particular product have no alternatives(PAN 2019). So it makes the buyers difficult to switch
to another company. The quality of the product and services is important for the customers
and Qantas airways has no complaints about its products which reduces the bargaining power
of the customers. Qantas airways focus on innovation which helps it to attract more
customers. It takes advantage of the economy of scale to lower down the price of the ticket
which will attract the customers to use their service. It makes the company affordable for all
people.
Threat from substitute products- Qantas airways has very few substitutes. All the few
substitutes that are working in this market have less chance to maximize their profit. This
makes the threats of the substitutes low. The substitutes of the products are very few and
expensive. In the Asian industry where Qantas airways are operating, the price is very low
with an adequate high quality which makes the threat of the substitute very less(Baxter 2019).
This happens due to the getting of good quality service at the low price which satisfies the
customers.
Rivalry among the existing players- The competitors in the Qantas Airways industry is very
low hence the competition is also very less and the competitors are very much large.
Therefore if a firm makes a move then it can be easily noticed and which makes the rivalry
among the existing players strong. The sector of the Qantas airways in Asia is growing
rapidly every year and it is expected to be like this afterward. Every competitors who are
there in this industry is getting benefitted from this which is reducing the competition among
them. Many few buyers have a large market share which will lead to an increase in the
competition among themselves to become the market leader(Bolton 2020). In the industry of
Qantas airways, the fixed price is very high. This will lead to cut off the price when the
demand falls. The marketing strategies of the companies are very much diversified and they
are different from others. This will give customers many different services to avail of. Hence
it will make the competition among the rival firms high. Qantas airways can also do market
research about the demand and supply of the market so that they can take necessary decisions
according to it.

7A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
PESTLE Analysis of Qantas Airways
PESTLE analysis is the marketing framework of the management that shows the
macro-environmental factors.[Appendix B] The PESTLE analysis of the Qantas airways is:
Political- In the Asian belt the political factors are very important for the airline sector. The
problems that Qantas airways is facing are tax and political stability. Qantas airways stable
themselves by doing their business with strong Asian and Middle East political countries. The
political initiative took by Qantas airways is said to be an ambitious initiative process in the
aviation industry. The company has a legal license to run their business(Baxter 2019). The oil
that the company use is under their control which is helping them to control the fuel price.
Economical- Economic issues are the other main aspect of the aviation sector. In Asia the
inflation rates might create problems for the company because due to inflation the currency
rates also get change which leads to unstable of the economy(Raynes and Tsui 2019). During
economic Qantas airways were affected very badly because the inflation made the whole
market down.
Social- Qantas has a lot of Asian customers. This airline company has a great influence on
Australian life. The brand identity that they have is very much important for the company.
The company has a very strong identity therefore they can use the Australian national
symbol(Bughin et al 2018). The brand quality of airlines is known by everyone. The airways
provide a low-cost service to the customers.
Technological- There is a vast improvement in the innovation of Qantas airways in the Asian
market. There are two new airplanes that they have launched which flies across the two
continents. The company has its booking system where the customers can book their tickets
online whenever the flights are available(Adams 2019). The expectations of the customers
gradually rise with the innovation of the products and services. The world's most developed
airplanes are introduced by them which is benefitted the customers from flying.
Environmental- In the Asian market of Qantas the wastage of fuel done by them is not
environmentally friendly. It could pollute the environment(Gao and Choy 2019). The clothes
use by the airways are taken as a pile of rubbish and put in the bean which creates
environmental pollution. The practice of emission of fuel is also done by the Qantas airways.

8A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
Legal- Following the aviation law is very much important for the Qantas airways to operate
in the Asian market . For their customers and the employees, Qantas is concerned about their
health and safety. The company is also very hygienic(Leppäjärvi 2018). Qantas airways
follow the rules and regulations for the employees because it maintains all the customers.
Employees are not allowed to smoke on the flight.
Marketing Mix of Qantas Airways
The marketing mix of Qantas analyses and explains the marketing strategy. There are
several marketing strategies like the innovation of product market, investment, and the
experience of the customers which helps the company to grow up the brand. [Appendix C]
The Qantas marketing mix strategies are as follows :
Products- Qantas is the biggest airline in Australia and has lots of international destinations
in Asia. The main aim of this company is to give comfort to its passengers with its excellent
service. The second aspect that the company follows is the safety of its passengers. With the
collaboration with other companies, they are giving importance to its safety and excellent
service.
Price Strategy- Qantas airlines claim to be a market leader based on the pricing in the Asian
region. Qantas operates a very much luxury service for those travelers who avail their
airplanes frequently. Qantas also focuses on the status and satisfaction of their customers.
The hi-tech facilities that are there in the airplanes make the Qantas work at a premium price.
The pricing strategy that the company follows covers all the insurance and benefits of their
customers. They develop loyalty and trust with their customers by facilitating the refunds. To
capture the market the tickets are also available for the economy class. These tickets are
generally of low price. In the same pricing, Qantas provides more comforts and safety than its
competitors. With this low-cost Qantas airways also follow the penetrating strategy by using
this low-cost strategy. The loyalty of the customers depends on the pricing and high margin
of benefits. This pricing strategy made Qantas airways different from other companies.

9A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
Place & Distribution strategy- Qantas is an airway with a strong presence in Asia and
outside the contienent. For the same, there are various avenues from where the ticketing is
concerned. The tickets of the Qantas is available in various outlets of the company. The
agents help the customers to offer the best flights. Now the outlets are not used much because
the customers avail the tickets online. The customers can book tickets online on the internet.
This will help the company to reduce the maintenance cost of the stores and can reach out to
more customers. The website of the company and the third party websites are also there to
buy flight tickets. The applications of Qantas airways can also be used for booking tickets.
The SMS service of the company helps the company to give the latest updates to its
customers and employees. Attractive offers and tour packages are offered by the flight
company in both online and offline mode. They also arrange suitable packages for their
customers.
Promotion and advertising strategy- In Asia Qantas use media services and online
advertisements for their promotion(Crotty 2018). It also helps them to acquire new customers
and maintain the balance between holding new customers and old customers. With their
promotion, they made themselves a premium brand among the customers(Bauer, Bloch and
Merkert 2020). The name of the brand attracts millions of passengers(French 2020). The
company is the main sponsor of the Australian national rugby team which helps them for the
promotion.
Physical evidence- The physical evidence of the airways includes its aircraft, tickets, and
websites and they are all part of the brand(Fernando 2018). The services of the physical
evidence offered to those customers who use their world-class services. The tickets that are
sold to the new customers are also physical evidence.
People- Qantas airways are proud of themselves to be the most chosen flight for the people of
Asia. They committed themselves to be the best in their services and comfort the people who
are using them(White 2018). The flight attendants are trained in a way so that they can
maintain the culture and values of the contienent. The staffs are also trained in that way so
that they can take action during any kind of safety.
Process- The users and travelers of them can book the flight tickets at any time both online as
well as in offline mode( Srisook and Panjakajornsak 2018). The generation of the tickets and
the cancellation of them is also updated to the customers through SMS.

10A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
One can board the flight based on their tickets. The luxury flights provide all comforts
starting from food to entertainment. The customer database is well maintained and they give
a discount to loyal customers.
The SWOT analysis of Qantas Airways
SWOT analysis is the situation analysis that is done by a particular company.
[Appendix D] The SWOT analysis of Qantas airways is given below:
Strength
 Integrated number technologies through merger & acquisition
 High skilled workforce with technical skills
 String free cash flow to expand the business
 The suppliers are reliable
 The distribution network is strong
 The dealer community is strong
 Good customer satisfaction
Weakness
 Desired marketing is not done properly
 Inefficient financial planning
 Not that successful with the different work culture
 Limitation of the product segments
 Need for investment in new technologies
 Weak product demand forecasting
Opportunities
 Economic up sticks
 Stability of the cash flow is free

11A REPORT ON THE MARKETING ANALYSIS OF QANTAS AIRWAYS
 New trends in consumer behavior
 Opening the new market because of new government agreement
 Lower inflation rate
 New technological practices
 The success of the organization's core competence
Threats
 Rising of the pay scale
 Increase in the demand for highly profitable products
 Increase of strength of the new distributors
 Adaptations of new regulations
 Intense competitions
 Global currency value fluctuations
STP analysis of Qantas Airways
The STP of Qantas airways consists of segmentation, positioning, and targeting.
[Appendix E] The STP analysis of the Qantas airways is shown below:
Segmentation of Qantas- It is the segmentation of the Asian market by differentiating
various customers with the same needs(Alshubaily 2017). The Qantas buyers that are into
groups also have a common need and will respond with the same for marketing action.
Qantas has a limited amount of resources that cannot be used at all-time for all the people(Bin
et al 2020).
Targeting of Qantas- Qantas use targeting which is based on the Asian segmentation of the
market. Demographic segmentation follows by the Qantas airways. They prefer all classes of
people. Qantas target the middle-class segments with the economic class tickets and higher
class segments with the premium class tickets(Baxter, Srisaeng and Wild 2019). The Qantas
stuffs always try to maintain a good relationship with their customers.
Positioning of Qantas- Qantas does the positioning of products in Asian market by seeing
their customer expectations and needs. Good positioning is fulfilled by knowing the customer