Marketing Report: Qantas's Segmentation, Targeting, and Positioning

This report examines the marketing strategies of Qantas, focusing on segmentation, targeting, and positioning (STP). It begins by defining key marketing terms, including segmentation, target markets, and positioning, and then applies these concepts to Qantas. The report analyzes Qantas's current segmentation practices, targeting customers aged 20-55, and those seeking luxurious and reliable services. It also proposes segmentation strategies, such as targeting middle-income customers, those seeking no-frills services, and premium short-route customers. The report recommends positioning Qantas as a premium yet cost-effective option, emphasizing reliability and safety. A perceptual map is used to visualize Qantas's positioning relative to competitors like Lufthansa, Emirates, and JetBlue. The conclusion highlights the importance of STP for Qantas and suggests broader segmentation and more flexible positioning. References to relevant academic literature are also included.

Marketing management

Introduction
• Determination of the target customer segments is important
to design the marketing strategies accordingly (Floh et al.,
2014)
• Targeting strategies should also be effective in catering to the
segmented customers
• Positioning strategy will be effective in creating unique market
position for the brand
• However, it should be noted that all the elements in STP
process should be well integrated

Segmentation definition
• Segmentation refers to the grouping of the entire market on
the basis of different common traits
• Catering to the diverse customer requirements is difficult with
a single value proposition (Hjort et al.,2013)
• Thus, the customers groups are segmented according to the
value propositions

Target market definition
• Target market refers to the certain groups being targeted for sales
• Target market is the sets of customers accordance to which, the
value proposition is designed (Cross, Belich & Rudelius, 2015)
• Target market is selected from the markets segmented and is
majorly related to the value propositions
• Change in the value proposition should be done in accordance to
the change in the trend of the target market

Positioning definition
• Positioning refers to the positioning of the particular product
or service in the market
• Effective positioning in the market is beneficial for standing
distinctive in the market
• It will create the unique mind sets of the customers
• Positioning in the market will also ensure the long term
viability

Consumer profile
• Consumer profile refers to the characteristics of the target
customers
• The preferences and risks of them are identified
• Differences among the individual customers can also
identified through consumer profile
• It gets changed with the change in the market trends and
expectations

Current segmentation
• Current segmentation of Qantas includes different variables
• Customers between the age group of 20 and 55 are targeted
• Customers seeking for luxurious and reliable services are
targeted
• Customers with repeated purchases are also targeted

Proposed segmentation
• It is recommended that Qantas should be target the middle
income segment customers as well
• Customers seeking no frill services should also be targeted
• Customers seeking for short route premium service can also
be targeted
• Age groups above the 55 years can be considered as primary
segment

Recommended positioning
• It is recommended that Qantas should be positioned as
premium yet cost effective option
• Reliability and safety should be given the major focus
• Can have different positioning in different regions
• The positioning statement of Qantas will be “make the most
out of the flight”

Perceptual map
High price
Low price
Low service
quality
High service
quality
Emirates
Lufthansa
JetBlue
Qantas

Conclusion
• It is concluded that segmentation, targeting and positioning is
important for Qantas in making the maximum from the
customers
• A few proposed recommendations discussed, which can be
beneficial for them
• Segmentation can be broader and wide
• Positioning can be made more flexible

Reference
• Floh, A., Zauner, A., Koller, M., & Rusch, T. (2014). Customer
segmentation using unobserved heterogeneity in the perceived-
value–loyalty–intentions link. Journal of Business
Research, 67(5), 974-982.
• Hjort, K., Lantz, B., Ericsson, D., & Gattorna, J. (2013). Customer
segmentation based on buying and returning
behaviour. International Journal of Physical Distribution &
Logistics Management, 43(10), 852-865.
• Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing
managers use market segmentation: An exploratory study.
In Proceedings of the 1990 Academy of Marketing Science (AMS)
Annual Conference (pp. 531-536). Springer, Cham.