Marketing Strategies for Qatar Airways: A Detailed Report

This report provides a comprehensive marketing analysis of Qatar Airways, beginning with an industry analysis using Porter's Five Forces to assess the competitive landscape. It then explores market opportunities arising from the launch of new and improved services, followed by a detailed examination of Qatar Airways' marketing strategy, including market segmentation (geographic and demographic) and targetting. The report delves into the marketing mix, encompassing product, place, price, and promotion strategies. It proposes a promotional plan, including a promotional mix, and estimates the marketing budget. Furthermore, it includes a demand forecast, methods for improving customer communication, and contingency considerations. The report aims to provide insights into Qatar Airways' current marketing practices and suggest strategies for future success.

MARKETING PLANNING AND
PROMOTION

Table of Contents
INTRODUCTION...........................................................................................................................1
Industry analysis of Qatar Airways........................................................................................1
Launch of new and improves services....................................................................................3
Market opportunities for the new and improved services......................................................4
Marketing strategy of Qatar Airways.....................................................................................5
Marketing mix of Qatar Airways ..........................................................................................7
Proposing of a promotional plan and promotional mix........................................................10
Details of budget marketing budget.....................................................................................11
Demand forecast for Qatar Airways.....................................................................................12
Methods of improving customer communication ................................................................13
Contingency consideration...................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
Books and journals...............................................................................................................16

Illustration Index
Illustration 1: Porter's five forces ....................................................................................................3
Illustration 2: Segmentation of market............................................................................................6
Illustration 3: Marketing mix]..........................................................................................................9

INTRODUCTION
Marketing the core part of any organization and the revenue of the company depends
widely on marketing strategy of the company. The marketing planning is highly influential in the
sales of the product or services. The report will be focused on the Qatar Airways. This report will
include the market analysis of the company and the segmentation of market. The report will also
propose launch of new services and a promotional plan to support it. It will consider the
contingencies may arise. The report inculcates an outline of the new and modified services by the
company.
Industry analysis of Qatar Airways
The industry analysis is done to find out the current position of the industry. To find out
the status of the Airline industry of Qatar we are going to use the porter's five force analysis.
This analysis is highly effective in finding out the position of the industry and calculate the risk
according to that (E. Dobbs, 2014.). This analysis evaluates the competition within the industry,
and the competition faced by the company in the current scenario.
Porter's five forces :
 Threat of new entry : A new entrant entering the industry is very low as the airline is very
expensive. The capital needed to enter in the market is very high due to set up of airlines,
buying of aircraft, also getting the license to carry out the operations and employing of
man power. The investment can not be made that easily so the threat of new entry is
really low.
 Competitive rivalry : The rivalry in the market is found by the company by the looking at
competition in the market in the market. The competition in the airline industry of Qatar
is high as the market is packet with airline companies. The Qatar airways face a direct
competition from the British airline, Lufthansa, emirates. The competitors are highly
expanded and are giants of the industry.
 Buyer power : The buyer power is high and customers have a negotiation power. Due to
high competition in the market the buyer has the ability to negotiate prices and the prices
are low due to that. The consumers are left with a lot of options and they can choose the
best one from it.
1

 Threat of substitutes : The high competition in the market provide the consumers with a
lot of substitutes. The consumers can switch to anyone when they feel unsatisfied by the
services of the Qatar airways. The threat of substitutes is high in the industry therefore
the company should be aware in providing their services.
 Supplier power : The suppliers can effect the industry widely (Rothaerme, 2015). They
can influence the prices and supply in the market, they are capable of changing the prices
in the market. There are few suppliers in the market Boeing, Airbus etc. they have a high
supplier power and the prices of the market are managed by them as the demand is huge
on the global level for their manufactured products.
2

Launch of new and improves services
All the airline services are making improvements in their services to get an edge over the
competitors, the market has tough rivalry and the Qatar lines must make necessary changes to
sustain in the competition of the current scenario (Magretta, 2011). Qatar airways has to make
certain improvements in the current services provided by the company. The company is need to
3
Illustration 1: Porter's five forces
(Source : Porter's Five Forces. 2017. )

make the services provided by the company better than the competitors to attain a market share.
Qatar airway must increase the present capacity of the air planes and make them more
comfortable for the customers. The increase in the current capacity of the planes will increase the
revenue created from every flight and will generate more profit for the company. Qatar Airways
must also take certain steps and make necessary research to find the route which are most used
and busy and are in need for more flights. Once the routes with more demand have been found
by the researchers. They must launch their services for the travelling. This will create good will
for the company and the market share of the organisation will increase (Wilson, 2010).
The company must also make certain amendments to increase the quality of the services
provided. Qatar airways should lay emphasis on the in flight care and services provided. The
availability of WiFi for all the flights in the house will make the consumers much more happy
than watch in flight movie. The Qatar lines should also make availability of laptops or ipads to
the customers. These services will produce a rather good feedback about the flights.
Market opportunities for the new and improved services
The market is highly competitive and there is room for continuous improvement in the
current situation. The new or modified services have an opportunity for the companies to get
ahead of the competition. The modifications made by the Qatar airlines provide them with many
opportunities in the current scenario.
If the company increases the capacity of the fleet in and buy new fleet with increased
capacity it can get generate greater revenue with every fly. The company will generate better
profit and income from the services. The standard size of the fleet of the competitor companies is
same as the Qatar Airways, so the improved capacity will provide a definite edge over the other
companies.
The launch of services on the new routes will increase the market share of Qatar Airways.
The company has less flights covering limited routes. The expansion of company's route base
will invite new customers to the Qatar Airways, the customer willing to go on the selected routes
will be facilitated and the company's customer base will enhance (Hollensen, 2010). The new
entry in the routes will also enhance the market share of the company as the new flights will
cover more market.
4

The in house service of free WiFi is the flights will make the consumers prefer the Qatar
Airways over other flights. Making the availability of laptops and ipads to the consumers of the
business class will boost customer loyalty as the consumers will find it facilitative to travel Qatar
airways. These services are not very with the competitors, only a few companies have been
providing free WiFi to all the consumers in the flights. This step will push the Qatar airways
above the other companies in the market.
The competition in the market is very and the consumers prefer the best services
available to them at the lowest price. The Qatar airways must try to keep their prices the lowest
as possible as the customers may switch to any other substitutes in the market at a better price.
Marketing strategy of Qatar Airways
Segmentation of market
The Qatar Airways is a successful airline in the gulf region and the company is looking to
expand its business further by introduction to services on the new routes and destinations. On the
basis of the company's vast reach and low prices the market can be segmented into two
segments(Deon, 2011).
 Geographic segmentation : The Qatar Airways has a wide route line and a large fleet. The
company operates in around 72 countries from its middle base in the middle east region.
The flights of Qatar Airways cover many countries and cities around the world. The
company is looking to expand its boundaries to the southern countries such as Australia
and other neighbours. The country is also making a plan to expand in the countries with
inclusion of more countries in the circuit. The Qatar airways operates in UK through the
city of London and from the hub in Doha the south Asian cities of India, Pakistan and
Myanmar, Bangladesh and other neighbouring countries are covered. The company also
enters the US lands by routes to New york and Washington DC. The route of Dubai is
ever busy and Qatar Airways build on it. The company is also operational in the cities of
other mid east countries or states through its base in Doha.
 Demographic segmentation : This kind of segmentation divide the market on the basis of
the demographic factors (Ko, E., Et Al. 2012). These factors include :
1. Income : the population earning an income of 1100 riyal or more are considered as the
suitable market population.
5

2. Age : Segmentation of the market on basis of age which can be categorised as below 12,
13 - 25, 26 – 45, 46 – 60 and above 60.
3. Sex : The Division on the basis of gender, female and male.
4. Religion : On the basis of religious beliefs the company muslim and non muslim people.
This kind of segmentation help the company to target its consumers easily on the basis of
preference by a particular segment of the population.
Targetting
Qatar Airways usually target the customers who want a slight quality and class at
reasonable prices. The company offers the prices of tickets at a lower prices then certain
competitors and also make sure of the quality being high (McKenzie, 2016). The target range for
the company are the consumers with a earning capacity of over 1100 riyal. The consumers who
are willing to go UK, US or the Asian and middle eastern countries are the target customer to the
company. The target is set on the consumers according to the business and economy class
passengers. The business class consumers willing to pay more amount for superior facilities than
6
Illustration 2: Segmentation of market
(Source : Basis of Market Segmentation ).

the economy class passengers. The business class seats are mostly bought by the people with
superior income and more expending power.
Positioning
The company must create the image for the services through marketing tools. The
company must focus on the target customers to give them a high quality of flying experience at
reasonable prices. They must advertise the image for premium and economy class quality of the
services provided to different customers, the willingness of the customer to spend in the services
must expand. They must position the flight fares being comparatively lower for the children.
This will increase the customer attention towards the services of Qatar Airways.
Marketing mix of Qatar Airways
The Qatar Airways is the one of the leading airways on the global level. The company
has large fleet to cover the routes around the world. The marketing mix of the company will be
discussed below.
 Product mix : Existing products or services offered by a company to its consumers is
considered under this mix (Luan, 2010). Qatar airways offers a wide range of service to
its customers. The company offers the first class passengers a leg room of 6.5 inches with
the most comfortable seats which can be transformed into a bed when needed by the
passenger. The business class travellers are facilitated with the seats which can turn into
horizontal beds. The economy class passengers are offered a comfortable seat with
personal touch screen TV for each seat. WiFi connection is provided to passengers. The
company also provides the business and first class passengers with beverages, alcoholic
and non alcoholic.
 Place mix : This mix evaluates the place of the business and its competency according to
the place of market. Qatar Airways operates around the world with the global routes
covering 150 destinations. The company's base of operates is Doha and it operates from
there. The mid eastern hub gives it an advantage, the routes for the southern Asia, Africa,
UK and US and other European and Asian are routed from the Doha airport. It also has
flights for the mid eastern states and countries from the hub airport. In UK Qatar airways
operates from the London Heathrow, London Gatwick and Manchester airports.
7

 Promotion mix : The promotional activities mark a basic difference the sales of the
company. Qatar Airways recognize the promotional mix as important part of the
marketing strategy of the company (Huang, 2014). The company has made launched
several advertisements on the television, online videos, clips and its own website and
corporate videos. The spreading of awareness through promotional campaign is
important. Qatar Airways has tied-up with several hotels, car services and restaurants on
a global background to provide its customers with facilitation. It also has a privilege club
for its loyal customers and provide them with several benefits. Qatar Airways is the
official sponsor of the T-shirt of FC Barcelona. It sponsored the official airline
sponsorship for the Sydney swans and also was awarded with the best airline for the
economy class in the years 2009 and 2010.
 Price mix : The price mix is includes the pricing strategy of the company and the target
customers of the company (Peter, 2011.). Qatar Airways focuses one the middle and
upper class population as their target customers. The prices of the company are fixed
according to the policy of the company to provide high quality at reasonable prices. The
price is influenced by several factors which are internal and external. Factors such as
salaries of the employees, own cost, and the oil prices. Qatar Airways is facing severe
rivalry within the industry from the competitors which make the pricing tough. The
company also takes in account the prices of the competitors and the prices are set
according to the that.
 People : people refers to the employees which are working part-time or fulltime in the
company. The people part of the marketing mix refers to taking care of the staff
members. The company has a large work force of the 40 thousand employees which
provides the services to the employees. The Qatar Airways provides its employees with
an appropriate salary and training helping them develop superior skills.
8

After analysis of marketing principles, it has been recognised that these principles are applied by
the managers in the process of marketing planning. In this context, managers of Qatar Airways
have applied four common principles for the development of marketing plan (Peter, 2011). These
four principles are described below:
Products: The company has created the services taking in account the customer needs.
Price: It determines that airlines will apply the effective price strategy in which it provides better
facilities at reasonable prices and also reduce the charges of flights to attract clients.
Promotion: For the promotion of business, marketers will use different methods such as
advertisement and website promotion, messages and hoardings etc.
9
Illustration 3: Marketing mix]
(Source : Marketing Mix ) .