This research report provides an analysis of two popular airlines in Australia; Jetstar and Virgin Blue, both whom are competing in the airline business. Jetstar and Virgin Blue can both compete and be highly profitable within the business, leisure and family market but however, it will ultimately be the service companies, and their associated marketing strategies and techniques which, will establish the difference between the market ‘leader’ and the market ‘loser’. This analysis will detail potential solutions to a number of major strategic issues confronting the companies to maintain its position and protect its profitability in its core domestic market.
There is intense competition between the airline brands and an important factor to consider is how they will target and cater to the traveler segments’, as it is the responsibility of the airline brands. Furthermore this report will discuss the findings of the marketing areas and segments to be targeted and worked on, it will provide literature to prove the success of the information found, as well as there will be recommendations made from the research established.
The airline industry at present consists of fierce competitiveness where the market leader is a company who delivers their service in a more meaningful and efficient way than its competitors. Taylor (2006) states that today’s customers will not settle for less as they continue to grow more service savvy raising their expectations ranging from convenience in purchasing airline tickets to the helpfulness of employees. If customers are not satisfied, they will simply refuse to purchase the service provided and look elsewhere.
Major Findings of the report
Virgin Blue and Jetstar both segment towards the leisure market, as they are both low-cost carriers and therefore the leisure market tend to be more price elastic compared to business travelers (Bamber, 2006). However Virgin Blue have