Marketing Fundamental Report: Qantas Airline Strategies and Analysis

This report provides a comprehensive marketing analysis of Qantas Airlines, a leading international airline. It begins with an introduction to Qantas and its market position, followed by an analysis of its micro and macro environments, including Porter's Five Forces, PEST, and SWOT analyses. The report then delves into Qantas's marketing objectives, mission, and vision, and explores its marketing strategies using the Ansoff matrix, STP (Segmentation, Targeting, Positioning), and the marketing mix. Key recommendations include product development (introducing an energy drink) and diversification strategies to enhance Qantas's competitiveness in the face of increasing competition and evolving market dynamics. The analysis highlights the importance of adapting to consumer preferences, managing costs, and leveraging technological advancements to maintain a strong market presence. Finally, the report emphasizes the significance of effective marketing strategies in achieving Qantas's objectives and ensuring long-term success in the airline industry.

Running Head: MARKETING FUNDAMENTAL 0
Marketing Fundamental
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MARKETING FUNDAMENTAL 1
Qantas is one of the leading airline companies in the international market. The company is based
on Australia that has expanded its business worldwide. It has provided outstanding services to
their consumers that made them competitive in the market. In the whole process marketing
strategy play a vital role for any company. Qantas achieved its targeted goal with the help of
effective marketing strategies. However, in the recent scenario, the competition increases at
greater level that affected overall performance of the company effectively. Therefore, it is
required for the company to entre with the new product in the market. The company can
introduce energy drink to their consumers with variety of innovative flavors. While expanding
the business, the company is required to adopt effective promotional strategies to make them
successful in the competitive market in an effective and efficient manner.

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Table of Contents
Introduction......................................................................................................................................5
Background and Marketing Situation..............................................................................................5
Micro environment analysis............................................................................................................6
Porter Five Forces Analysis.........................................................................................................6
Macro environment analysis............................................................................................................7
PEST Analysis.............................................................................................................................7
SWOT Analysis...............................................................................................................................8
Marketing Objectives.......................................................................................................................9
Mission and Vision of Qantas......................................................................................................9
Objectives.....................................................................................................................................9
Marketing Strategy........................................................................................................................10
Ansoff Business Strategy...........................................................................................................10
STP................................................................................................................................................11
Segmentation..............................................................................................................................11
Targeting....................................................................................................................................11
Positioning.................................................................................................................................12
Marketing Mix...............................................................................................................................12
Conclusion.....................................................................................................................................13
Bibliography..................................................................................................................................14

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Books/Articles............................................................................................................................14
Others.........................................................................................................................................14

MARKETING FUNDAMENTAL 4
Introduction
Marketing plan play an essential role for the company to grow in the competitive market. It has
been analyzed that most of the leading companies achieved success in the market through their
innovative marketing strategies that made them differentiate from their competitors and can able
to attract maximum number of consumers in an effective and efficient manner. The marketing
strategies are required for all kind of business due to such competitive environment occur in
every sector. The marketing strategies depend on the environment of the country. One of the
company Qantas Airlines has adopted various marketing strategies to compete their competitors.
However, the company has faced various challenges that are required for them to focus on. It
created issue for the company to compete their competitor.
In the following part there will be detailed analysis of the market for Qantas Airlines according
to which new strategies will be recommended to the company to enhance their services in an
effective and efficient manner. It will also help the company to compete in the competitive
market and can able to achieve targeted objective more smoothly. The company breakthrough
into the competitive business that is elaborate further with the view of having clear mission
statement1.
Background and Marketing Situation
Qantas is one of the leading companies that was founded in Winton, Queensland in the year 1920
as Queensland as well as northern services limited by Paul McGinnis, Hudson fish, Fergus
McMaster as well as Arthur Baird. The company Qantas Empire Airlines limited as formed in
the year 1934 by Qantas. The company expanded their business in the international market. It
flies internationally from May 1935, when the services from Darwin were extended to Singapore
in the year 1947. In the year 1958, the company operated the second flight by super service from
Australia to London through Asia as well as the Middle East. The company operated a great
number of the international flights out of Singapore, Auckland airport, Brisbane airport, London
Heathrow airports as well as Los Angeles Airports. It has been analyzed that Qantas is one of the
1 Alina Alukhanyan"Instruments of Marketing and Credit Support of the Large Industrial Enterprises Development:
International Experience." (2017) 20(1) European Research Studies Journal 294-310.

MARKETING FUNDAMENTAL 5
profitable airlines in the international market. The company is widely regarded as one of the
leading long distance airlines as well as one of the strong brands in the country Australia. The
company outstanding services to their consumers as well as do the great contribution worldwide
aviation industry. As a travel, the company built excellence in safety, operational reliability as
well as consumer service. The main business of Qantas is transportation of consumers to one
place to another place using two brand airlines Qantas as well as Jester. The company has
adopted various marketing strategies to target their consumers. However, due to the great
competition in the market, the company faces various struggles to target their consumers2.
Micro environment analysis
Porter Five Forces Analysis
Bargaining Power of Consumers: the bargaining power of the consumers in such airline
industry is high due to the main reason that they have various options to select from such as
premium class air traveling services; los cost air travelling services as well as many more. In the
market most of the airlines provided other services as well that increases the purchasing power of
the consumer in an effective and efficient manner. Therefore, it represents that the bargaining
power of the consumers in such industry is high.
Bargaining power of Suppliers: the bargaining power of the suppliers is low in such industry
due to the major reason that there are large numbers of suppliers that are available in such
industry. They offer similar kind of services. Therefore, in respect to the power of Qantas, it is
lower due to the reason of other major airlines industry such as Virgin Airlines and so on.
Threat of Substitute: the threat of substitute in such industry is low due to the reason the mode
of air travelling is faster way of availing the travelling services at longer distance that could not
have been possible from the road or water transport3.
2 Berger Von, Clarence W., et al. "Cueing the customer using nudges and negative option marketing." (2016) 5(2)
Atlantic Marketing Journal 12.
3 Kim Lehman, Mark Wickham, and Dirk Reiser. "Modelling the government/cultural tourism marketing
interface." (2017) 14(4) Tourism Planning & Development 467-482.

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Threat of new Entrants: in respect to the threat of new entrants, it represent that the industry has
low new entrants due to the reason new players require huge investment in such in infrastructure
in setting up an airline company that would be tough to perform.
Rivalry among Existing Company: it has been vital in respect to the airline industry in Australia,
while analyzing the current situation it represent that Qantas is competing directly with the
Virgin Airlines in the domestic market as well as competition is at that level that such companies
are suffering losses in its operations. The company also faces huge competition in the
international market4.
Macro environment analysis
PEST Analysis
Political: Such factor majorly indicates the influences of the government over the performance
of the company and in respect of the company it indicates that the airline has faced with various
governmental actions across different regions. For the instance, the airline is majorly affected by
the political instability in the Middle East as well as the political unrest in the country Bangkok
was also affected its operation in generating sufficient revenue from it.
Economic: the declining economic condition and performance of Australia has also affected the
performance level of the company. The economy of the Australia faced with the issue of
recession that is a negative manner as the per capita income of the individual has declined
4 Rendy Ridwan Hidayat, and Andar Bagus Sriwarno. "Brand Development Strategy Of Micro Scale Shoe Industries
Based On Augmented Reality For Smartphone Application." (2015) 14(1) Jurnal Sosioteknologi 89-97.

MARKETING FUNDAMENTAL 7
severely that has resulted into lower the demand for the air services. Therefore, under such
condition, the company has faced huge loss due to lower in the demand as well as it is one of the
evident in its declining the revenue over the years.
Social: the social conditions as well as trends as a prevalent in respect to the airlines industry
have also affected the overall performance of the company at greater level. Qantas group
operates in more than 46 countries in which more than million passengers fly annually.
Therefore, it is one of the major challenges for the company in term of the varied social as well
as cultural preferences of the consumer. Most of the consumers are relying in the low fare
services that create challenge for the company to maintain overall cost of their services to deliver
their services at low cost to the consumers.
Technological: the technological factors also affected the airline industry in the sense that the
entire process of the booking of the airlines tickets is majorly based on online reservation system.
Further, the analysis of the company indicates that technological factor is highly applied in
respect to the company. Therefore, it is evident from the fact that the company became the first
company that has performed the landing trough applying the satellite technology that is majorly
based on the global landing system.
Legal: The legal factor also affected the performance of the company in the sagacity that there is
carbon tax that require to be stood by the business from it activities and operations. Such carbon
tax indicates the legal regulations that require to be satisfied by the airlines in effectively acting
its operations.
Environmental: While analyzing the environmental factors, most of the countries has imposed
and introduced regulation for dealing with the environmental ineffectiveness on the part of the
airline operators. Therefore, it represent that the airline has the aim is to achieve reduction in its
emissions of the pollution by 50% by the year 20205.
5 Kevin F Simboh., Johny RE Tampi, and Lucky F. Tamengkel. "Pengaruh Pricing Strategy, Promotion Strategy
Dan Brand Equity Differences Terhadap Marketing Position Pt. Garuda Indonesia (Persero), Tbk Branch Office
Manado (Rute Penerbangan Manado-Denpasar)." (2018) 7(1) Jurnal Administrasi Bisnis 50-57.

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SWOT Analysis
Strengths
 Qantas take care of their employees at greater level. They provide full support to their
employees and other benefits that made them succeed in the market.
 The crew members are provided with flexible as well as good working environment by
the human resources management and cabin crew team.
 The company provides hassle free as well as confortable service to their air passengers. It
also manages to provide some of the specific requirement of the passengers.
 The company is majorly known for their quality of service such as SMS check-in for
domestic travelers, customized meals, revitalized food as well as beverages options for
economy class.
Weaknesses
 The company faces issue of unionization in their workplace.
 The company is facing pressure to operate international flight it create the issue of low
profit for the company
 The company has decided to launch direct flight from Australia to Europe however, it
face a number of challenges in operating long-distance flights.
Opportunities

MARKETING FUNDAMENTAL 9
 In the recent scenario there is surge in the business travel. The number of passengers in
business and economy class has increased. It create scope of earning high profit for the
company
 The price of the fuel is expected to decline in the near future that will affect the revenue
of the company in an effective manner.
Threats
 The company faces huge level of competition from other brands such as Air France,
American Airlines, Lufthansa
 The most critical threat for the airlines companies today is the drastic fluctuation in the
cost of fuel and maintenance with up keeping of their fleet.
Marketing Objectives
Mission and Vision of Qantas
The long term mission and mission of the company is to operate the company as the best
premium airlines of the world and to operate the Jester as the best low fare airlines in the global
market
Objectives
 Achieving simplicity by enhancing the operational efficiency and improve productivity
 Developing company as one of the best brand for premium airlines
 Enhancing share in the international market.
 Satisfying maximum number of consumers6.
6 Sven Haugland. "Total Quality Management in International Distribution Channels." (2015) 7(2) Proceedings of
the 1993 World Marketing Congress. Springer, Cham,

MARKETING FUNDAMENTAL 10
Marketing Strategy
Ansoff Business Strategy
According to the Ansoff matrix the company can either develop new product in the market or
diversify their business to earn maximum income from the international these are explained in
below points to understand in more effective manner.
Product Development: Qantas is one of the leading companies that have already maintained
great goodwill in the international market. Therefore, it would be say for the company to spread
awareness of their product among the consumers to make their company more competitive in the
market. The company can introduce energy drink with their brand name that will be provided
specifically in the flight of Qantas only. The drink should be amazing in taste that motivates the
passengers to try drink. The company has already introduced various services for the consumers.
Development of new product in the market can give new face to the brand. The company will
able to recognize with the new product as well. It will increase the existence of the company and
can attract maximum number of consumers towards their flight due to product will be available
on the Qantas counter or on flight of Qantas7.
Diversification: while introducing new product, the company will automatically diversified their
business in new sector. The food and beverage also have great growth in the recent scenario,
7 Made Darmjati, et al. "Tourist’Perception on Ground Handling Services Quality in Nusa Tenggara Barat (Case
Study: Lombok International Airport)." (2017) WCBM 2017 548.

MARKETING FUNDAMENTAL 11
most of the consumers wanted innovative product that make them satisfied in an efficient
manner. The company has already provided food services to their consumers. The entrance in the
food and beverage will give an opportunity to the company to attract new consumer’s especially
young generation that will make them competitive in the market8.
Therefore, diversification of business in new sector and introducing new product in the market
will benefited to the company. It will help the company to enhance their revenue as well as also
can able to compete their competitors in an effective as well as in an efficient manner9.
STP
Segmentation
Market segment is divided into different market according to the need and requirement of the
consumers. The market is segmented into following part:
Geographic
It has been analyzed that the European countries people using more airlines than Asian countries
people among which most of them ordered meals and other drinks in the flight only10.
Demographic
According to the research it can be analyzed that most of the age’s people prefer the services of
Qantas. Most of the people that travel in flights are in between the age of 14-50 years and most
of them are educated people. Majorly medium to high level income people travel in such
flights11.
Psychographic and Behavioral Segmentation
8 Maria Liukkonen. "From outbound to inbound marketing for a web-development company." (2016) 19(3) YMPCT
9 SYED MAJID KHALIL, OBAID ULLAH, and DR SYED HAIDER KHALIL. "The Effect of Customer Loyalty
Programs on Customer Retention in Pakistan." (2018) 17(4) The Marketing Effect
10 Marija Mandarić, and Snežana Milićević. "Role and significance of tourism destinations branding." (2016)
PAPER PROCEEDINGS
11 Aury Mugisha, Aury Franck. Strategies Adopted By Kenyan Insurance Companies. (2016) In Meeting Student
Market At The Universities In Kenya; A Case Of United States International University.