Qatar Airways Marketing Management: An STP Analysis Report

This report provides an analysis of Qatar Airways' segmentation, targeting, and positioning (STP) strategies within the competitive airline industry. It highlights how Qatar Airways segments its customer base using demographic and psychographic attributes, particularly cost consciousness, and targets the middle and lower-middle classes with differentiated loyalty programs. The report also examines Qatar Airways' positioning as a leading airline that offers affordable travel and excellent service, emphasizing its customer-class-based positioning strategy and efforts to maintain a competitive edge through cost efficiency and value for money. The analysis concludes that effective STP strategies are crucial for Qatar Airways in attracting, retaining, and marketing to its target customers, ultimately enhancing its brand value and market position. Desklib provides access to similar solved assignments and study tools for students.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

1MARKETING MANAGEMENT
Executive Summary
The report has thrown light on analysing the different aspects of segmentation, targeting and
positioning of Qatar Airlines in the competitive business environment. With the help of the
segmentation, the customer base is classified on the basis of demographic or psychographic
kind of behaviour. On the other hand, the targeting is helpful in marketing with a particular
group of individuals who plays a major role in the profitability of the organization. Lastly, the
positioning is the aspect which is helpful in managing the brand image and it has helped
Qatar Airlines in managing the business activities appropriately.

2MARKETING MANAGEMENT
Table of Contents
Introduction and Overview of Qatar Airlines............................................................................2
Segmentation of Customer Base of Qatar Airways...................................................................2
Targeting of Customer Base of Qatar Airways..........................................................................3
Positioning of Customer Base of Qatar Airways.......................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

3MARKETING MANAGEMENT
Introduction and Overview of Qatar Airlines
The report helps in the overall analysis of the segmentation, targeting and positioning
of the Qatar Airlines as it is the broad framework which summarizes along with simplifies the
market segmentation aspect appropriately. Qatar Airways is the state-owned flag carrier of
Qatar which is headquartered at Doha. The company commenced their operations from
January 20, 1994 and the company was founded in the year November 22, 1993. The
employees who are employed in the organization is 45633 till the year 2018. There has been
increase in the amount of the revenue which has been earned by the company which has
amounted to QR 42,229 million till the year 2018 (Qatarairways.com 2019).
Figure 1: Segmentation, Targeting and Positioning
(Source: Andaleeb 2016)
Segmentation of Customer Base of Qatar Airways
In the previous era, it has been noticed that the full-service airlines tried in dominating
the aviation industry, however after the entry of Qatar Airlines, the company has chosen to
segment the customers by the psychographic attribute of the cost consciousness. With the
growing disposable income, the lower middle class and the middle-class customers are the
major and potential customers of the airlines as the main motive of the airlines is to lower
down the costs and make it reasonable for them (Armstrong et al. 2015).
Additionally, the other aspect of segmenting the customers are those passengers who
prefer comfort and reliability at a reasonable rate. In comparison to the other competitor

4MARKETING MANAGEMENT
airlines, Qatar Airlines have been able to adopt the Benefit Segmentation Strategy as to cater
to the different changing needs and preferences of the customers in the market. In the
respective aspect, Qatar Airlines is trying to target individuals by offering them with various
benefits of low pricing aspect as Air Travel is perceived by the individuals as one of the most
expensive option of travelling.
Income- It is one of the essential variables which is being used by Qatar in
segmenting their position in the market (Kubacki, Dietrich and Rundle-Thiele 2017). For
example- The lower middle class and middle-class customers are the major group of
customers who are attracted towards the airlines as they have low disposable income and the
main requirement of these customers are to travel from one place to another. As per the
situation of user-price, it can be analyzed that low income earners who are planning for
leisure holidays, they continuously monitor the prices of the tickets as to ensure that they can
attain the cheapest prices.
Value-for-money- It is the other essential attribute which is being followed by Qatar
Airways as the level of importance of the value for money is divided into low, moderate and
high wherein the customers with low income levels tend to place high emphasis on value for
money wherein they will be receiving similar comfort in the Qatar Airways as it would have
been with other airlines (Camilleri 2018). In the present era, the customers are trying to
minimize the expenses which can be done through travelling with budget airlines (Andaleeb
2016).
Targeting of Customer Base of Qatar Airways
After the segmentation is completed, it is required for the organization to analyze,
evaluate and prioritize the segments which is required to be pursued by them. Qatar Airlines
convert the cost-conscious prospects such as targeting the middle and lower middle-class

5MARKETING MANAGEMENT
customers. As the different segments of the individuals has been rewarded by the company
with various kinds of loyalty related programs, the company tries to use the differentiated
targeting strategy as to identify the attractiveness of the each and every segment
appropriately (Fahy and Jobber 2015).
The respective strategy related to differentiation is working as an opportunity for
Qatar Airlines to create a large customer base in the competitive business environment as
these are the segments which form a major part of the overall population. Moreover, Qatar
Airlines have been placed on the top list in the list of the competitors as due to the much
better on time performance along with quality of the different services in comparison to the
other players as the differentiator in the airline company (Ohmae 2016).
Additionally, differentiation aspect which is adopted by Qatar Airways is helpful in
creating value as Qatar Airlines mainly focuses on cost value of the products and services
which is offered by the other competitors as well in the market however at a huge cost. Due
to the successful product differentiation aspect, Qatar Airlines have been successful in
creating brand loyalty among the customers through providing cost savings for their
customers and the company is being able to deliver the quality and similar value to the
customers in the market as well (Schlegelmilch 2016). Due to the successful brand strategy of
Qatar Airlines, it can be identified that it has been able to create brand loyalty among the
customers and it enhances the overall value of the brand in the competitive business
environment as well (Kotler et al. 2015).
As per the table which is the segment 1, it is referred to as the lower social class
customers who prefers to travel at least twice a year for leisure with the family members and
they have high importance on the value of the money as well. The rate of income of the

6MARKETING MANAGEMENT
respective individuals are low and they prefer to gain more competitive advantage in the
market.
Segment 1
Income Low Income Level Individuals
Social Class Lower Social Class
Usage Rate Low
Value for Money High
Time Leisure
On the other hand, the segment 2 belongs to the middle social class customers who
travel at a moderate rate for their leisure and they place high rate of emphasis on the value for
money as they feel that money plays a vital role in managing the different kinds of travels
which are made by them during the year.
Segment 2
Income Middle Income Level
Social Class Middle Social Class
Usage Rate Moderate or High
Value for Money High
Time Leisure or Business

7MARKETING MANAGEMENT
From the above tables, it can be identified that the product differentiation aspect is
one of the most essential aspects which will be helpful for focusing on quality of the services
and gain business competitive advantage in the market. Targeting of the customers in the
market is one of the major aspects which should be adopted by the company in order to
improve their overall status in commencing the tasks appropriately. By targeting the lower
and middle-class customers in the market, it will be beneficial for them in managing the
overall effectiveness appropriately. Qatar Airways tries to target the customers with has
allowed the company in connecting with the audiences through marketing and sales efforts.
Positioning of Customer Base of Qatar Airways
Figure 2: Positioning Map of Qatar Airways
(Source: Wirtz and Lovelock 2017)
From the positioning map, it can be identified that Qatar Airways have positioned
themselves as the leading and largest airlines which have tried to apply the philosophy that all
the individuals have the right to fly and they deserve to fly through Going Places Together.
The company believes in low fare and hassle-free concept of business and they try to analyze

8MARKETING MANAGEMENT
that the keeping of costs low requires huge efficiency in all the different parts of the business
effectively.
The efficiency in the business of airlines helps in creating savings which are passed to
the different passengers as to make the affordable travel a proper reality. Additionally, the
company tries in utilizing the customer class-based positioning strategy wherein the
customers are the major assets of the organization and they should be treated with the
different services at the lowest cost which is possible (Pyo 2015).
As Qatar Airways is performing the business in the competitive business
environment, it is necessary for them to provide such services to the customers which will be
helpful for them in staying ahead of the other competitors and improve their brand value in
the market as well. Qatar Airways tries to gain competitive advantage and it also hopes to
move forward towards providing better services in the future (Nijssen 2017). From the
positioning map, it can be identified that Qatar Airlines is mainly focusing on providing high
ease of usage among the customers along with making the travel affordable for the different
customers in the market as well.
Conclusion
Therefore, it can be concluded that segmentation, targeting and positioning plays a
vital role in the marketing of products and services of the organization in an accurate manner.
With the help of segmentation, it helps in splitting the buyers into various groups with similar
types of needs and wants which will provide them with the capability to use the finite
resources of the company through the buyer-based marketing aspect. Additionally, the STP is
helpful for attracting the right customers for the different segments of the goods and services
and it increases the overall marketing efficiency appropriately. Lastly through proper
positioning in the competitive business environment, it helps in retaining the customers and it

9MARKETING MANAGEMENT
reduces the cost of the organization by not marketing the product and it will be affordable for
the customers in the market as well.
References
Andaleeb, S.S., 2016. Market Segmentation, Targeting, and Positioning. In Strategic
Marketing Management in Asia: Case Studies and Lessons across Industries (pp. 179-207).
Emerald Group Publishing Limited.
Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Fahy, J. and Jobber, D., 2015. Foundations of marketing.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Kubacki, K., Dietrich, T. and Rundle-Thiele, S., 2017. Segmentation in social marketing:
why we should do it more often that we currently do. In Segmentation in Social
Marketing (pp. 1-6). Springer, Singapore.
Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
Ohmae, K., 2016. MARKETING STRATEGY FOR VALUE EXPLORATION. Marketing
For Competitiveness: Asia To The World-In The Age Of Digital Consumers, p.175.
Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), pp.253-281.

10MARKETING MANAGEMENT
Qatarairways.com 2019 Qatar Airways: Book Flights with a World-class Airline (online)
Retrieved from https://www.qatarairways.com/en/homepage.html [Accessed on 23 February
2019]
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets.
In Global Marketing Strategy(pp. 63-82). Springer, Cham.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World
Scientific.