Marketing Mix and Strategies of Qantas Airlines: A Detailed Report

This report examines the marketing strategies employed by Qantas Airlines, a leading multinational airline. It begins with an introduction to the concept of marketing and its core components, including product, price, place, and promotion (the marketing mix). The report then provides an overview of Qantas Airlines' market position, its target market, and its approach to product design, pricing, promotion, and distribution. The analysis covers Qantas' product offerings, including different flight classes and services, its pricing strategies, which involve cost-plus and competitive pricing, and its promotional activities, such as advertising and direct marketing. Furthermore, the report delves into Qantas' distribution channels, including direct sales and travel agents. The report also discusses the airline's efforts to enhance its product and customer experience, including frequent flyer programs and in-flight entertainment. Finally, the report highlights the importance of adapting to changing market demands and customer preferences to maintain a competitive edge in the airline industry.

Running Header: Marketing
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Contents
Introduction......................................................................................................................................3
Marketing strategy...........................................................................................................................3
Marketing mix.................................................................................................................................7
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The management practices executed for transferring the final goods and services from the
concept to the end customer is the process of marketing. In simple terms the process of
marketing involves researching, promoting, selling and distribution of the products and services.
In general terms marketing have been considered as the activities or the business practices
executed by a business corporation for making the products presentable in-front of the end
customers (Ahmed, Vu, Muttaqi & Agalgaonkar, 2018). Marketing is a wide concept and
comprises of various approaches and strategies that are required to be implemented by the
enterprise for successful delivery of products to the consumers. There are four major components
of this concept and that are the product, price, place, and promotion and if used in a combined
manner can be termed as the marketing mix strategy. The below-presented report has been
summarized on the marketing activities conducted by Qantas Airlines.
Marketing strategy
Qantas Airways is a multinational airline and stands at a third number in the world's oldest
airlines. It is capturing a huge market by its ultimate services which are for a long time. Being
the largest airlines with maximum numbers of fleets it operates from Australia, Sydney by its
classified headquarters (Abam, 2018). The company is very well performing in terms of
operations with services of international flights to its customers. Qantas airways cover largest
destinations around the world when it comes to serving the people. It has the maximum number
of destinations where to the people can travel through it. Hence, in airlines business, it is very
much certain and obvious to have operations which are international as there is a lot of money in
such kind of operations. the airways are covering a huge share of the market even after having
huge competition present in its industry just because of its non-copied services which are rare
and very much diversified. Although a section of the market is being covered by the company
eventually it can grow and develop in new markets where it is not present so as to increase its
market share. It is important for a business to increase its share so that there are sustainability
and growth which keeps on rising in business.

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Further, the target market of the company must be new destinations as well as it should work
upon revamping and developing the already existing points and hubs for its passengers (Ahmed,
Vu, Muttaqi & Agalgaonkar, 2018). The food and beverages of the airlines must be enriched
which is the major concern of customers nowadays. In order to improve the sales, company can
get associated with various web portals which are really popular in terms of booking while it is
launching in new as well as this could be implemented in the existing market as well. Renewal of
all the retail centers with a proper design of their ambiance and up to date refurbishment. It owns
20%share of the industry which can be increased. It is preferably working on its old customers
which are already associated with it by providing them valuable services so that they remain
connected with the business for a long period of time. The company is yielding profits and also
concentrating on its long-term legacy which is the quality of services it provides to its customers
(Anderson, 2014). Hospitality industry works upon the way it treats people so Qantas can
improvise this by regularly training its employees on various sections which are coming up in
this changing environment. Through this, the existing and the new customers will be retained for
a long term because "The spirit of Australia" has to be taken on another level around the world
(Qantas 2018).
Qantas was previously working in the places so as to develop a channel for its deliverables. Now
that it has positioned itself around the world covering most of the destinations with its
headquarters in Sydney, Australia it is aiming to rebuild and launch the airline by reconstructing
its strategy and aim of the business. It was previously more positioned and focused on spreading
the business. But as for now, it is launching its new segment as "you are the reason that we fly"
to dedicate its services to the customers who are continuously supporting it from a long period of
time. This is a way of positioning the brand simultaneously coping u with the need for the
scenario. A brand always has to make changes in the strategies sometimes in the way it works
(Armstrong, Kotler, Harker & Brennan, 2015). So, by adopting such changes Qantas is
regenerating its section of business it is doing. The level of services and quality it provides is
unforgettable and non-beatable by any other airlines. But the presence of rivalries with more new
ideas is also obvious which cannot be ignored.
There are demands of people and they vary from segments to segments. In order to position a
product under such circumstances, it is very significant to choose appropriate positioning

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strategy for the business. Hence, Qantas has chosen a very appropriate strategy to do so it has
divided its services into two sections that are Qantas and Jetstar. To target each segment
successfully in terms of their needs and wants as everyone may vary. In order to position itself at
varying market, it has provided flexible flight bookings by taking care of the needs that
customers have so that they feel very much free while choosing Qantas (Qantas 2018). The
customers are provided with facilities to reschedule their flights if they want to which is a
strategy of Qantas to position itself in the market where there are no such facilities. Further, the
company has tied up with various portals to sell its tickets which are also a way to position its
products (Baines, Fill, Rosengren & Antonetti, 2017).
Positioning relates to launching the product in the market by various strategies so that it is
accepted by the customers in the targeted market. Qantas has already been working on it by
various means and channels. Further, it can adopt strategies which are very much suitable for the
market. It can reconstruct its strategy according to needs of the new market in which it is trying
to do business. Although, it has already been working upon attracting most of the customers by
flexible and relying services which can further be developed through tie-ups, personal selling,
advertisement etc. (Baker & Saren, 2016). This will help in safely launching the product which
can be placed in the niche market. Needs and demand also the preferences of the customers play
an important role in the hospitality industry. So, according to this, a company has to make its
strategy so as to make the customers attracted towards its product.
Marketing Mix
Product
1. With associate degree increasing aggressiveness within the airline business Qantas pays huge
priority to product designing. A product is crafted to draw in new customers and stick to these.
Gain is controlled at an awfully high priority (Beer et al., 2016). The product of Qantas embodies
either traveler motion lodgings in their flights or carriage containers.
2. Basically, The business organization is offering premium motion arrangements. A blowout of
soaring preparations is obtainable by Qantas. Top quality, global business category, global
economy, exceptional economy (Bishop & Plumb, 2016). The business entity also offers variety
of sitting categories and arrangements, in-flight administrations, meals, and other basic amenities

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are provided in every category. Moreover, domestic flights also have different categories in
terms of different aspects such as business and economy classes, with separate in-flight traveler
entertainment administrations. .
3. Whereas, Jet-star is another brand that offers low price flying services.
4. The business organization continually attempts to enhance its product with higher services.
Flight data is accessible through internet and online means or received from the corporate via
messaging services. The corporate tries to feature up subtle and a lot of advanced aircraft to fly
periodically.
5. In-flight amusement has been given a lift with a lot of investments in them. The business
entity also offers the best services in terms of the best connecting flights and other services all
over the globe (Brand & Rolland, 2018). It conducts one in all the foremost standard frequent
flyer programs within the world
6. One in all the uppermost business complete names, used for attracting several passengers. The
corporate history, brand, and locution distinguish it from its business rivals.
7. Higher flight, safer containers, one in all the fastest routes through the globe area unit offered.
Price
1. Qantas majorly uses 'cost and margin' technique of product evaluation. Markets with
additional demands prompt higher evaluation for Qantas. Competitive evaluation strategies also
are uses (Davis, 2017)
2. Penetrative evaluation is employed for its low price airlines
3. Honest refunding provides client flexibility
4. Qantas provides worth discounts while not depicting them as discounts. This can be to keep up
the client worth perception.
5. Qantas do provide the low evaluation at new destinations
6.Frequent flyer programs offer fantastic client edges.

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Promotion
1. Advertisement - TV, radio, net advertising, billboards, brochures, magazines etc. are used for
the needs of stigmatization and merchandise promotion (Edwards & Wilson, 2017). Marketing is
employed to send across messages. Messages are custom-built as per every client, to hit them at
a private level. This strategy has to this point been terribly productive. It’s been much more
effective than victimization mass media to send across mass communication messages.
2. Classified ads are used throughout low seasons
3. Direct mercantilism is employed for company customers (Frumkin, 2015)
4. Social networking, blogs, email promoting are won't meet up with to customers
5. Personal relationship practices, sponsoring sports and other various events; amusement
connected programs, involvement and support of assorted charitable programs etc.
Place
1. Qantas airlines is directly selling the tickets from the ticketing counters and thus direct
sales is conducted
2. Qantas' own shops are utilized for price ticket sales
3. Mobile phones will be wont to purchase tickets (Grant, 2016)
4. Travel agents (intermediaries) are used.
Levels of product for Qantas
1. Core Product
This is the essential product and also the focus is on the aim that the merchandise is meant. For
instance, a heated coat can defend you from the cold and also the rain. A lot of necessary edges
the merchandise provides, the lot of those customers would like the merchandise. A key part is
that the individuality of the core product (Haight, 2017). This may profit the merchandise
positioning at intervals a market and result from the potential competition. Qantas' core product
is the transportation of the passengers. The improvement within the individuality is needed to be
mended.

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2. Generic Product
This represents all the attributes of the merchandise (Haque & Anastase, 2017). For a heated
coat, this is often concerning work, material, rain repellent ability, high-quality fasteners, etc.
But for Qantas, their generic product is going to be the comfort of the passengers whereas on all
the days of the years the physical comfort or mental comfort a journey would possibly offer can
be.
3. Expected Product
This is concerning all the aspects of the buyer that he or she expects after they purchase a
product. That coat ought to be very heat and defend from the weather and also the wind and can
be snug once riding a bicycle (Haselip & Rivoal, 2018). An airline should recognize these
expectations of the client with dynamic time as customers change their demands per their
market.
4. Increased Product
The increased product refers to any extra factors that set the merchandise aside from that of the
competition. And this notably involves complete identity and image (Holcomb, 2016). Is that
heat coat stylish, its color fashionable and created by a widely known fashion label? However
additional factors like service, pledge and smart worth of cash play a serious role during this. The
goal is to deliver one thing that's on the far side associate expected product. It's the interpretation
of the need that's regenerate into reality. The client won't say no for comfort and luxury,
provided on the airline. Complimentary services to the good client service to back up.
5. Potential Product
This is regarding augmentations and transformations that the merchandise might bear within the
future (Kleinaltenkamp, Plinke, Wilkinson & Geiger, 2015). For instance, a heated coat that's
made from a cloth that's as skinny as paper and thus light-weight as a feather that permits rain to
mechanically give. The longer term is here, airlines for the approaching times. Medical care of
boarding passes. The digital shot reduces lost baggage problems and faulty routing. Several
alternative contemporary concepts area unit coming back, together with programmable bags with
integral identification.

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Experimental mobile applications enable passengers to stay on a virtual eye on their belongings
throughout the complete trip (Kotler, 2015). In the future, it's going to even be doable to order
your luggage delivered at a selected time to a selected destination address. Tomorrow's travelers
might don't have any got to keep their luggage forever in view.
Pricing strategy for Qantas
Techniques like Expected Marginal Seat Revenue (EMSR) explore the most effective ways that
to optimize rates in real time, not solely on a given route, however taking under consideration
revenue-creating opportunities across the total airline network (Plekhanov, 2018).
That is why, for instance, flying from London to Dubai could have priced just about constant
flying all thanks to the city, conjointly via Dubai (Qantas 2018). The airline could value more
highly to keep seats on the London-Dubai route for high-value passengers that fly longer on
onward journeys and can use valuation to demotivate those getting to fly shorter journeys.
Distribution strategy
Three international trends are reforming travel, distribution trade mediums and threaten to
deteriorate the organizations between airways and the travellers. There is a change in the
business and marketing trends and in customer’s behavior on each of the aspects associated with
retail and business, changing undercurrents among direct and indirect sales, and hence this is the
reason in the hike in the use of digital mechanisms and technologies (Powell, 2016). This aspect
of trend is concerned with the increasing utilization of online mediums for the operations and
transactions such as searching and ticket booking, the employment of multiple devices, and
therefore the growing quality of online media. Meanwhile, online travel agents, domestic travel
agents, and travel management corporations supply opportunities and drawbacks for airlines.
Airlines will have the benefit of this providing they undertake 3 major initiatives among a
holistic strategy powered by technology. They need to rework on their travel distribution model
in each direct and indirect channels. They need to pursue nearer partnerships with channel,
content, technology players. Finally, they must improve internal capabilities (operating model,
processes, skills, and technology) to gain the opportunities of the new distribution trends so as to
become focused on customers in the structure set up. Specifically, airlines have to be forced to
adeptly manage digital innovation and use these technologies to enhance spaces of the business,

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important direct channel sales, marketing, cross-selling, and changing evaluation and inventory
management.
Promotion strategy
The overall idea and style of the airline prepare the base for its promotion. Selling and promotion
can stress the distinctive attributes of the airline and therefore are the points that make it
different. Sturdy publicity along with well-placed, well-designed, unique advertising appealing
on to people that are the airline's customers can facilitate getting the word out. Special effort
should be created to develop and operate an extremely practical, quick, rock-solid, and easy
website for online information, reservations, and e-ticketing. Web selling, combined with typical
non-Web selling, can steer individuals to the website. There are a lot of customers who use the
website, the simpler and a lot of pleasant the expertise are for them, and therefore the lot of
commercial and economical, and inevitable, are the method for the airline. Special attention is
created at the start to achieve the trend-setters and market-leaders in our varied target markets,
even going thus far on prepare personal conferences between airline executives and selling
administrators and people opinion leaders, significantly either in Southeast Europe and Turkey or
who deal or otherwise have an in-depth affiliation to the target region (Roberts 2012). Whereas
generally, special promotional rates and therefore the like are restricted, the airline might think
about starting with a special promotion merely to urge glorious and to "take off the ground" with
planes that aren't largely empty, as is commonly the scenario with new airlines. Overall, the
management and therefore the sales department can coordinate together and can use outside
consultants as want be to assured of the foremost positive potential launch (Scott, 2015).
Extended marketing mix
People
The client administrations are about the general population (Plekhanov, 2018). The general
population who work for the carrier, the CRM and the encounters the staff can be extemporized
by a more point by point preparing program.
Process

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The exchange procedure of the booking administration; better web composition and operational
help for the aircraft are the principle procedures of the business association.
Physical confirmation
The change the carrier office premises; vibe and simplicity of development of the overall
population are the real segments that can be considered for the physical confirmation of the firm.
Conclusion
In the limelight of the above-executed analysis, it has been inferred that marketing is the business
approach that can be adopted by the business form making the products available to the
customers as and when required by them. The above-presented report has been segmented
mainly in two sections and the first one comprise of the marketing strategy adopted by Qantas
Airlines and the second segment is about the marketing mix that has been implemented y the
firm for marketing and promoting the products in the market.

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References
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Virtual Teams (pp. 19-21). Routledge.
Frumkin, N. (2015). Guide to economic indicators. Routledge.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
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