HI5004 Marketing Management: Qantas Airways Report Analysis

This report offers a comprehensive marketing analysis of Qantas Airways, the flag carrier of Australia. It begins with an introduction and a brief overview of the organization, detailing its mission, vision, and values. The report then delves into the airline industry, focusing on the Australian market and competitive dynamics. A 5C analysis (Company, Customers, Collaborators, Competitors, and Context) is conducted to assess Qantas's strengths, weaknesses, opportunities, and threats. The report explores customer behavior, competitor strategies, and the external factors influencing the business. Furthermore, it examines Qantas's information-gathering methods and outlines a proposed marketing strategy, including market segmentation, target market identification, value proposition development, and positioning. The report concludes by discussing the marketing mix (Product, Price, Place, Promotion) and offering recommendations for Qantas to improve its market position and achieve its marketing objectives.

Marketing management
5/21/2019
Qantas Airways

Marketing Management 1
Contents
Introduction......................................................................................................................................3
Brief description of this organisation..............................................................................................4
Values..........................................................................................................................................5
Industry of Qantas........................................................................................................................5
5C analysis.......................................................................................................................................5
Company......................................................................................................................................6
Customers....................................................................................................................................7
Collaborators................................................................................................................................7
Competitors..................................................................................................................................8
Context.........................................................................................................................................8
Qantas collecting information..........................................................................................................9
Marketing strategy.........................................................................................................................11
Market segment.........................................................................................................................11
Target market.............................................................................................................................12
Value proposition.......................................................................................................................12
Positioning statement.................................................................................................................13
Marketing tactics...........................................................................................................................13
Marketing mix...........................................................................................................................13
Product...................................................................................................................................13

Marketing Management 2
Price.......................................................................................................................................14
Place.......................................................................................................................................14
Promotion..............................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Marketing Management 3
Introduction
The purpose of report is to undertake process of analysing or evaluating one of organisation and
its environment in which it is operating it business from a marketing perspective. The
organisation that has been carefully chosen for the analysis is Qantas, who is flag carrier of
Australia and its largest airline by fleet size, worldwide flights, as well as destinations. The
report includes the overview of the organisation as well as the detail type of orientation of the
company towards the market. It includes the examination and investigation of context and
environment in which organisation functions its business that include the study of the industry
and macro-environmental factors that influence the industry. In the end, suggestions for the
marketing mix strategy have been presented in the market strategy for the target market that is
suggested to the company.

Marketing Management 4
Brief description of this organisation
Qantas Airways Limited was originated in Queensland outback in the year 1920 and it has
developed to be Australia’s largest domestics as well as the international airline (Qantas, 2019).
The company is broadly observed as one of the world’s leading long distance carriers as well as
one of the strongest brand present in the market of Australia. The business has a strong status for
the brilliance in safety, operational reliability, engineering, and maintenance as well as customer
service. The group of Qantas main operation is the offering the facility to the customers who are
using the complementary airline brands for moving from one place to another that include
Qantas as well as the Jetstar.
Service offering: - Qantas Airways is well-known company who offer the freight service to the
customers under the name of the Qantas Freight as well as it wholly own the logistics as well as
the airfreight. Thus, the company include wide range of routes that helps them to encounter
requirements of clients exist in market (Qantas, 2019).
Mission statement: - Qantas mission statement is that ‘We are Australia’s foremost premium
airline and we are devoted to become the best. The purpose of the company is to encounter the
customer’s expectation every time you fly due to which the business last to invest the amount in
the corporate and we endeavour to offer the brilliant level of service (Qantas, 2019).
Vision: - The vision of Qantas is to be a countless airline that winner is the soul of the Australia.
This is supported with the values of the company that include together, genuine, inventive,
experienced, and optimistic and many others (Qantas, 2019).

Marketing Management 5
Values
 Be Consistently Can Do
 Be Safe and Responsible
 Genuinely Care
 Be Energetically Efficient
 One Team
 Passionate About Enjoyment (Qantas, 2019)
Industry of Qantas
The industry in which the Qantas Company is operating its business operations includes Airline
industry of Australia. The operations in the domestic airline industry have been essential from
the favourable trading conditions in the last five years. It has been found that there is intense
competition among the Qantas and Virgin Australia as these two are the largest player in the
industry. It has been found that in Australia, the number of domestic tourist visitors has grown
steadily over the period from both the tourists as well as the corporate travellers that include the
demand growth. The annual growth of the industry has been witnessed 2.3% from the year 2014-
2019 with the revenue of $14 billion (IBIS World, 2019).
5C analysis
5C analysis is the situation examination of the business that supports the business in determining
the challenges, and opportunities existing in the market.

Marketing Management 6
(Source: Armstrong, Adam, Denize and Kotler, 2014)
Company
One of the major elements of 5C analysis is company that provide the study of the strengths and
resources of the company with the weaknesses that are faced by the business. In addition, it
includes opportunity and threats linked to the company.
Strength of the Qantas airways is superior services to the customers, which is essential to meet
the expectation of the customer. Some of the services that are provided by the company include
SMS check-in for domestic travellers, customized meals, expanded in-flight entertainment,
entertainment options, quality of services, food, beverages, and many others (Qantas, 2019). In
addition to this, the airline had tackled the rigid rivalry in the global travel with this the business
has presented the new program which is alteration program that is intended at enhancing the
quality of service in which the company need to keep the minimum cost of the product.
On the other hand, Qantas airline has also been facing different issues related to the less incomes
in the global flights. The company has been facing marvellous pressure in order to operate the
international flights. The airline has been incapable to register the advanced profit or the

Marketing Management 7
international business (Qantas, 2019). With the weakness, Qantas Company has the opportunity
in commercial travel that is a flow in corporate travel nowadays particularly and numbers of
travellers in both the corporate class have enlarged. It has been found that this has led to the lot
of the scope for the high revenue from both the classes. This opportunity will help the company
to overcome its issue of the high profit from the international flights.
Customers
The clients of Qantas comprise of the people to whom they are serving its services in the market.
The major customers of the brand mainly comprise of the travellers who travel at the distant
locations both in Australian domestic as well as worldwide. It contains the business who serves
as the frequent flyer for their work purposes.
Qantas serve their services to all the customers present in the market that include people with
different age group (Qantas, 2019). The major customers of the company include the travellers
and businesspersons who need to travel to different places that majorly include persons with age
group of 18-25 years and 25-45 years. The customer behaviour shows that they want to travel
with the flight that can meet their expectations in the market that include the professional
services and many others. However, this has been found that in the market the needs and
demands of clients are fluctuating because they might take any other flight instead of Qantas.
Collaborators
The collaborators of the company include the different suppliers, distributors and other partners
that provide the help to company to deliver the facilities to the clients in the market. The major
partnership of Qantas is with Emirates as they came together to offer the premium travel
experience to the clients available on the planet. The two airline companies have the identity as

Marketing Management 8
well as the distinct style that will match the style of the customer’s benefits. This partner of the
company helps the wide as well as amazing network that leads to rise in the wonderful reputation
(Qantas, 2019). In addition to this, Qantas has the tie-up with diverse distributors that include
travel agents and other people who make the products available to the customers.
Competitors
The competition in the market of Australia is intense, Qantas business deals with high force of
competition from Virgin Australia, Pel-Air, Fly Corporate and Eastern Australia Airlines. The
company find the high threat from the competitors present in the market. However, Qantas
airline has more than 65% of the Australian domestic market share and approximately 15% of
the global travel that is possible because of the customers of diverse country. It has been found
that company has no threat of new entrants in the marketplace as there is need of huge capital to
the company if they form their business in market of Australia (Armstrong, Adam, Denize and
Kotler, 2014).
Context
The context includes the different influences that affect working of business in the environment.
The discussions of factors that affect Qantas Company are discussed below –
Factors Description
Political factors Political factors are essential element of the airline industries and the
problem with the Qantas includes political stability, corruption, as well as tax
(Baker, 2014). Qantas meet their obligations related to the political
interference and the company keep the oil under the control of organisation
of petroleum exporting countries that can lead to influence in the prices of

Marketing Management 9
fuel.
Economic
factors
The major issue that is present in the airline industry for Qantas company is
inflation of the currency rates. The change in the currency rates of the
company leads to the influence of the revenue of the company. For instance;
in 2009, revenue of the company was $14.3 billion but it reduced and in
2012, it was $13.6 billion.
Social factors The customers have the greatest influence of the airline industry as it has
been found that Qantas has the strong brand identity as they are known for its
quality services (Chernev, 2018). However, the change in the trends might
bring the change in customer perception for the products.
Technological
factors
The change in technology or up-gradation in the technology leads to change
in working of company. Qantas company have online booking service,
mobile app and many others that influences the customers (David, 2011).
The company make use of the technology in their business operations.
Qantas collecting information
Qantas Company has collected the information by conducting the market research about the
different elements of the 5C that include the customers, company, collaborators, competitors, and
context.
Customers want

Marketing Management 10
The market research is done in which the information about the customer wants which is done
through the observation. Qantas has observed the purchasing pattern of the clients present in
market as this helps them in understanding the way buyer make the purchase of the product. The
pattern of the purchasing product will help the Qantas Company to bring the changes in their
services (Dawson, 2014). It has been found that customers of Australia demand for the premium
services from the airline as well as they demand for that airline who can provide them services at
the low cost.
Competitors pose a threat
In the market research, this has been found by the company that the competitors pose a threat for
the business as they carry the attractive services in the market so that they can grab the attention
of the clients available in market. This has been found that Virgin Australia is bringing new ways
to attract the clients in market that leads to increase in customer satisfaction.
Context of business
The external market research has been done for analysing the external factors that influence the
working of business in market. The factors of the external environment are considered
considering the market trend and patterns, as this will lead to opportunities as well threats for the
company in the market (Frynas and Mellahi, 2015).
Role collaborators play in the process
Qantas company conduct the market intelligence technique in order to collect the information
related to the business’s market, gathered, analysed for the purpose of the accurate as well as the
confident decision-making in identifying the strategy areas that include market opportunity,

Marketing Management 11
market penetration and many other. The partner of the company is emirates who contribute
effectively in improving the operations of the Qantas. The company has done the partnership in
order to provide the proper services to the customers (Frynas and Mellahi, 2015). In the research,
it has been found that people who do visit at the long distance need the connecting file that is
possible with the partnership of the Emirates and Qantas. Thus, it has been found from the
customer review that collaborators of the company contribute in improving the services.
Marketing strategy
Based on the market analyses, the potential target market of the Qantas Company has been
available to the Qantas Company (Grant, 2016).
Market segment
The market segment is the group of people that will be available to Qantas in the market so that
they can offer the services to them. The potential segments of company include-
Demographic segmentation: - In this market segment, the customers are segmented based on
age, income, gender and many other factors. The potential consumers of the Qantas will include
the people are in between the age of 18-25 years and 25-40 years with the middle and high
income group people. The individuals that are majorly segmented include traveller,
businesspersons, and family person (Bhasin, 2018).
Geographic segmentation: - The market segment is done according to the region or place where
the company finds it customers. It is recommended to business to consider people of Australian
local market as well as the people present at the different areas across the world (Hollensen,