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Qantas And Its Marketing Strategies Success -Myassignmenthelp.Com
Question: Discuss About The Qantas And Its Marketing Strategies Success? Answer: 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 po rtfolio. 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). SWOT Analysis of Qantas 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. 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). Macro Environment Analysis 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). 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.). 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). 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. Marketing Mix Analysis 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). 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. 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 me dia platforms there 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. 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. 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