Report: Analysis of Qantas Airways and its Marketing Strategies

This report offers a comprehensive analysis of Qantas Airways' marketing strategies, focusing on a newly launched service. The report begins with an executive summary and an introduction to the importance of marketing strategy in business. An internal analysis is conducted using a SWOT analysis to assess Qantas's strengths, weaknesses, opportunities, and threats. The external environment is examined through a PESTEL analysis, considering political, economic, social, technological, environmental, and legal factors influencing the airline. The report then delves into market segmentation and target markets, followed by a detailed marketing mix analysis, including product, price, place, and promotion strategies for the new customized services. The success of the new service is analyzed, highlighting its potential to attract customers and gain a competitive advantage. The report concludes by summarizing the key findings and implications for Qantas Airways. References are provided to support the analysis.

Analysis of Qantas and its Marketing Strategies and Success

Analysis of Qantas and its Marketing Strategies and Success 1
Executive summary
The purpose of this report is to develop a marketing strategy for a newly launched
product/service for an organisation. For this report, the selected organisation is Qantas Airways
and there will be highlight the internal and external analysis of the organisation. For the internal
analysis, there will be performed SWOT analysis of Qantas Airways as well as there will also be
offered understanding of the political, technological, economic, legal, social and environmental
factors to understand the external impact upon the organisation. The later part of the report will
throw light upon the marketing mix and the reason behind the success of the service.

Analysis of Qantas and its Marketing Strategies and Success 2
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................2
Internal Analysis..............................................................................................................................2
SWOT Analysis of Qantas...........................................................................................................2
Macro Environment Analysis..........................................................................................................3
PESTEL Analysis........................................................................................................................3
Market Segmentation and Target Market........................................................................................5
Marketing Mix Analysis..................................................................................................................5
Analysis of the new service and reason of its success.....................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Analysis of Qantas and its Marketing Strategies and Success 3
Introduction
Marketing strategy is one of the lost vital elements in the field of marketing and business
organisations. It is a fundamental objective of up surging the sales of nay organisation and
attaining the sustainable competitive benefits. The marketing strategy comprises of the long-
term, short-term and basic goals that are required to be followed by the company and formulation
of specific strategic which can help the organisations in accomplishing the set market goals by
the means of the academic strategies (Hoffman and Bateson, 2010). The airline was established
in the year 1920 which presently includes five key divisions i.e. Qantas Domestic, Qantas
Freight, Qantas International, Jetstar Group and Qantas Loyalty. The key marketing aim of
Qantas is to offer the most desirable and best returns to the investors and the shareholders by
introducing innovative and pioneering services on a regular basis. There are various new markets
which the airline has targeted with its extensive service portfolio. The markets hare of eth airline
is continuously rising with an upsurge rate. For attaining the competitive benefits, the key focus
of the airline is on its core business only and with effective marketing strategies it is trying hard
to capture more new markets (Qantas Airways Limited, 2017).
Internal Analysis
SWOT Analysis of Qantas
Strengths
 Qantas Airways possess a robust domestic as well as global presence and has a strong
brand visibility across the globe.
 There is a strong support and backing up by the Australian Government which offers
several advantages and business presence to the airlines and presently it is one of the
most renowned and largest airlines of Australia.
 There is an improved and recognized historical presence of Qantas in Australia which
offers a reliable customer base to the airlines.

Analysis of Qantas and its Marketing Strategies and Success 4
 There are almost 85 global destinations as well as domestic destinations of Qantas with a
total of more than 28,000 employees that works for the airline and its one of the biggest
strength of Qantas
 Efficient sponsorship, marketing, advertising and brand building (Oum and Yu, 2012).
 Innovative and pioneering services to the customers such as flyer program, lounge, etc. to
offer utmost satisfaction to its customers.
Weaknesses
 There are few weaknesses such as some incidents such s flight accidents, price fixing,
etc. all such thin s have deteriorated the image of the airline across the globe.
 In comparison with other airlines, Qantas possess less global recognition and this is one
of the weaknesses from competition point of view (Amankwah‐Amoah and Debrah,
2011).
Opportunities
 There are vast opportunities for Qantas to grow and develop such as it can target more
global markets and particularly the markets of Asia.
 It also has the potential to become the leader in the airline industry in the Asian and
Australian regions with its innovative services
 Another opportunity for Qantas is to have partnerships with other international airlines
for offering the customers with combined services with high potential and improved
satisfaction (Iatrou and Oretti, 2016).
Threats
 There are threats which can hamper the continuous success of Qantas such as the rapidly
rising prices of fuel and its negative impact upon the continuity of the business operations
 Another major threat is the shortage of labour as the prices of labour has been raised and
it is difficult to give such higher prices to the employees
 There is also threat of intense market competition from the other inter nation airlines
(Huang, 2010).

Analysis of Qantas and its Marketing Strategies and Success 5
Macro Environment Analysis
PESTEL Analysis
Political
The airlines industry possesses a great threat of terrorist attacks. In the last few decades, there
has been marked a number of incidents of blown ups as well as plane hijacks. This is one of the
key political factors that poses negative implications as there is involvement of political
association and because of such attacks and incidents, the flights are restricted as well as less
number of passengers travelled (O'Connell and Williams, 2011).
Economic
There are also economic factors such as the prices of oil that impacts the airline industry. There
has been seen number of developments in the various oil industries and thus, the airlines are
trying to enhance their purchasing power for buying the fuel. The factors such as economic
recessions also impacts the airline sector as the airways are pressurized to lower down the prices
which ultimately poses a negative impact on the revenue (Moore, 2009).
Social
Due to rapid economic development, there has been realized a sudden change in the practices of
travelling into flights of many individuals. Because of the in caressed tourism business, the use
of airlines has also increased in past few decades. With the increasing purchasing power of the
individuals, there is also increase in the number of travellers travelling from airlines (Arjomandi
and Seufert, 2014).
Technological
There are both negative as well as positive results of the continuous technological advancements
taking place in the aviation sector. With pioneering and innovative technology, individuals can
make online payments, can book or cancel tickets and with complete information in one click
they can select the airlines from which they want to travel. Thus, reliance on a single airline does
not exist anymore (Tapper, n.d.).

Analysis of Qantas and its Marketing Strategies and Success 6
Environmental
There are also negative consequences of the airline business on the environment as it poses a
severe and hazardous impact on the sustainability of the environment as there are emissions of
harmful gases which can damage the environment. As well as the noise pollution is another
environmental impact which is caused because of the continuously growing aviation sector. And
because of which there are several environmental concerns taking place (Lacar, 2009).
Legal
Ted a new tax called as the carbon tax which is imposed on the various airlines in the aviation
industry. Because of the increased prices of fuel as well as the tax imposed, the overall prices of
the tickets become higher (Schmidt, et al., 2015). Thus, the airlines are required to develop a
good balance so that it does not impact the rate of customers traveling. As well as there are also
some of the airways that also get unnecessary advantages from the Government and thus offers
additional benefits to those airways and thus it results in price war in the aviation sector
(Schmidt, et al., 2015).
Market Segmentation and Target Market
According to market segmentation of Qantas Airways, there are various segments from which
there are number of customers of Qantas. The first is the demographic segment according to
which the key set of customers of Qantas includes the more number of male members md people
who are in an age group of 20 to 50. From the psychographic point, the people who have upper
class life style are they key set of customers of Qantas. From the behavioral segmentation, the
key customers are the one who want to save their time and live a more luxurious life. Thus for
saving lot of time, there are customers who travel with Qantas (Shaw, 2016).
From all the various market segments, the key are the primary segment is the demographic
segment which is the target market of the company as the airlines have its primary emphasis
upon the youngsters the ;people from business class who want to travel to arioso destination for
business purpose as well as families who want to visit from tourist purpose.

Analysis of Qantas and its Marketing Strategies and Success 7
Marketing Mix Analysis
Product
(NIIT Technologies, 2016)
The new product/service that will be offered by Qantas Airways is the customized services to the
travellers. There will be developed a customer profile of every customer which will take care of
number of things that comprises of the meal preferences, the seat preferences, price preferences,
buying pattern, service history, trip purpose, connection time, disruption preference, social
behaviour, and customer value. Offering customized services is the newly launched service by
the Qantas Airways for attracting more number of travellers who want a more personalized touch
in their services (Pi and Huang, 2011).
Price
The new services will be charged around ten percent high on the original prices of the flight
tickets. The prices are not quoted much high so that more number of travellers can once
experience these customized services.
Place

Analysis of Qantas and its Marketing Strategies and Success 8
The newly launched service will be available in most of the flights of Qantas basically the one
that are of long hours so that the customers can have maximum benefit of these services. First, to
see the response towards the service, it will be launch in 10 flights of Qantas. And after
analyzing the response, the process will be continued (Liou, Yen and Tzeng, 2010).
Promotion
For the effective promotion of the newly launched service of offering customized services to the
travellers, the airline will take use of some of the most efficient promotional tools and techniques
(Wu and Cheng, 2013). The first and the key promotional marketing strategy will be social
media marketing. In this, the potential customers can get aware about the new service by the
means of advertisements on the various social media platforms such as Twitter, Facebook, You
Tube, Instagram, etc. All these are the key social media channels which can help Qantas to
attract most of the travellers. The other promotional strategy will be having tie ups with the trip
advisors which can guide and offer these plans to the travellers. The other promotional marketing
techniques also include discounts offers on initial buys and also free of cost meal offers. There
will also be sue if hoardings and advertisements on television for attracting more number of
customers (Wirtz, 2012).
Analysis of the new service and reason of its success
The new services are very potential and attractive in nature which will help in fetching the
attention of most of the potential buyers. For example, there are handicapped people, pregnant
women or old age travellers who needed more customized and comfortable travelling
experience. Thus, the customized services offer by Qantas can help in meeting the needs of those
travellers. The new service has also various other advantages as it will offer numerous
competitive benefits to Qantas such as there are number of airlines which do not offer such
customized services, therefore, Qantas can gain the first mover advantage with launch of its new
service (Yang, et al., 2012). There are various reasons behind the success of the new services
such as the strong marketing channels i.e. the social media marketing. In present scenario, to
fetch the attention of the customers, the best way is to have promotions on social media
platforms. Thus, by having increased individual engagement on the social media platforms there

Analysis of Qantas and its Marketing Strategies and Success 9
can be gained more number of potential travellers. The other reason of the success of the new
service is that the upper class people are more conscious about the type of services there are
getting as they are more concerned with the comfort level. Thus, offering these customized
services to the travellers will help Qantas to become the market leader in the aviation sector of
Australia (Mudie and Pirrie, 2012).
Conclusion
In present time with increased technological advancements and developments, there is a much
need that the business organisations must offer new products and services to the customers for
retaining them for a longer period of time. From this report, it can be concluded that, Qantas is
one of the most renowned airlines of Australia but to sustain in the market and achieve long term
competitive advantages, the airlines must have innovative services and products for the
customers. The newly launched customized and personalized services to the customers will help
the airlines in attain higher competitive benefits. As well as by taking use of the effective
marketing channels and promotional techniques, there can be done effect tie marketing of the
services to an extended customer base. Thus, it can be stated that such services will help Qantas
to achieve market leadership as well as strong global presence.

Analysis of Qantas and its Marketing Strategies and Success 10
References
Amankwah‐Amoah, J. and Debrah, Y.A., 2011. The evolution of alliances in the global airline
industry: A review of the African experience. Thunderbird International Business Review, 53(1),
pp.37-50.
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.
Hoffman, K.D. and Bateson, J.E., 2010. Services marketing: concepts, strategies, & cases.
Cengage learning.
Huang, Y.K., 2010. The Effect of Airline Service Quality on Passengers' Behavioural Intentions
Using SERVQUAL Scores. Journal of the Eastern Asia Society for Transportation Studies, 8,
pp.2330-2343.
Iatrou, K. and Oretti, M., 2016. Airline choices for the future: from alliances to mergers.
Routledge.
Lacar, F., 2009. Singapore Airlines: Factors accounting for marketplace success. Australian
Journal of Business and Informatics.
Liou, J.J., Yen, L. and Tzeng, G.H., 2010. Using decision rules to achieve mass customization of
airline services. European journal of operational research, 205(3), pp.680-686.
Moore, A., 2009. Qantas lays off employees as financial crisis takes hold, Australian
Broadcasting Corporation. Accessed on: 3rd October, 2017, Accessed from:
http://www.abc.net.au/7.30/content/2009/s2542854.htm
Mudie, P. and Pirrie, A., 2012. Services marketing management. Routledge.
NIIT Technologies, 2016. Delivering Personalized Services to Customers. Pp.8. Accessed on:
3rd October, 2017, Accessed from: https://www.niit-tech.com/sites/default/files/Whitepaper
%20-%20T%26T%20-%20Delivering%20Personalized%20Services%20to%20Customers.pdf

Analysis of Qantas and its Marketing Strategies and Success 11
O'Connell, J.F. and Williams, G. eds., 2011. Air transport in the 21st century: key strategic
developments. Ashgate Publishing, Ltd..
Oum, T.H. and Yu, C., 2012. Winning airlines: Productivity and cost competitiveness of the
world’s major airlines. Springer Science & Business Media.
Pi, W.P. and Huang, H.H., 2011. Effects of promotion on relationship quality and customer
loyalty in the airline industry: The relationship marketing approach. African Journal of Business
Management, 5(11), p.4403.
Qantas Airways Limited, 2016. Annual Reports, Qantas, Accessed on: 3rd October, 2017,
Accessed from: http://investor.qantas.com/investors/?page=annual-reports
Schmidt, M., Ploetner, K.O., Öttl, G., Isikveren, A.T. and Hornung, M., 2015. Scenario-based
life-cycle cost assessment of future air transport concepts. International Journal of Aviation
Management, 2(3-4), pp.167-182.
Shaw, S., 2016. Airline marketing and management. Routledge.
Tapper, C., (n.d.). An Introduction to Business and Technology.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
Wu, H.C. and Cheng, C.C., 2013. A hierarchical model of service quality in the airline
industry. Journal of Hospitality and Tourism Management, 20, pp.13-22.
Yang, K.C., Hsieh, T.C., Li, H. and Yang, C., 2012. Assessing how service quality, airline image
and customer value affect the intentions of passengers regarding low cost carriers. Journal of Air
Transport Management, 20, pp.52-53.