Target Segments of Jetstar

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5/6/2011
S23220059 | Ken Koh Cong Kang|

JETSTAR AIRWAYS| MCD 2050 Marketing Major Assignment|

Table of Contents
Executive Summary3
1. Introduction4
1.1Purpose of Report4
1.2 Background of Jetstar4
1.3 Segmentation5
1.4 Plan of Report5
2. Discussion6
2.1 Product Category6
2.2 Major Competitors6
2.3 Brand Package and Label7
2.3.1 Brand7
2.3.2 Package8
2.3.1 Label9
2.4 Target Segments10
2.5 Needs and Wants11
3. Conclusion13
4. Recommendations14
5. Reference List15

Executive Summary
The purpose of the report is to critically review the appropriateness of the services in Jetstar (JS) for the target segment which is identified as leisure travelers. Through extensive research, this report evaluates ideas of several marketing theories and concepts that can be used by managers in Jetstar to strategically formulate a detailed analysis of how the product category offered in Jetstar is affiliated with the target segments. JS markets itself as a value carrier providing all day every day low fares with a wide network of air travel based in Australia and New Zealand. Jetstar is wholly owned by Qantas Group as its low fares airline and the world’s largest low-cost long haul carrier This report provides a description to the background of JS, elaborating on the analysis of the customers’ profile, their purchasing habits and features of the decision-making process. It is also essential to define the major competitors to maintain the positioning in the market. It discusses and evaluates the target segments, defining characteristics of customers. The discussion will highlight the satisfaction of the needs and wants of targeted customers in relation to the current products. 1. Airlines today are faced with fierce competitions and large profit margins, hence, it is important for JS to ensure all consumer’s needs and want are fulfilled 2. Brand awareness and name recognition is important for every business, especially in the airlines industry as customers prefer to fly with carriers they know and trust. Hence JS must ensure they fulfill this requirement 3. JS should focus on packaging their products more effectively to increase potential customer’s perceived value. 4. JS should focus on pricing issue to capture price sensitive customers. Ensuring they have competitive prices for travelers based on short flights and medium flight distances. 5. Engage consumers in surveys and questionnaire to further understand the consumer’s needs and wants and improving for the future.

1. Introduction
1.1 Purpose of Report
The purpose of the report is to critically review the appropriateness of the services in Jetstar (JS) for the target segment which is identified as leisure travelers. Through extensive research, this report evaluates ideas of several marketing theories and concepts that can be used by managers in Jetstar to strategically formulate a detailed analysis of how the product category offered in Jetstar is affiliated with the target segments. 1.2 Background of Jetstar

JS markets itself as a value carrier providing all day every day low fares with a wide network of air travel based in Australia and New Zealand. Jetstar is wholly owned by Qantas Group as its low fares airline and the world’s largest low-cost long haul carrier (Jetstar, 2011). In relevance to figure 1, the market share in terms of revenue passenger kilometer (RPKs) for Jetstar in comparison to their main competitors in Singapore. It can be seen that Jetstar is currently the leader of low costs carriers (LCCs) in the market.

Figure 1: Jetstar

1.3 Segmentation
* Geographic - JS’s customers are mainly located in Australia, New Zealand and the Asia Pacific region. Frequent additions of new flights both domestic and international are increasing. The focus is primarily on driving domestic traffic to JS’s international gateway cities such as Darwin, Perth, Gold Coast and Cairns and onwards to JS’s...
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