Business Studies Qantas Case Study
2. Situational Analysis
Swot Analysis of Qantas
Extensive network / part of the One world alliance
Excellent airport locations and facilities
Globally recognised brand name and logo
Excellent safety record – probably the best in the world (not one death on a Qantas flight) Operational excellence: Qantas has twice won the Cumberbatch trophy for engineering excellence.
Speculation that British airways will quit its $1.3 billion stake in Qantas. Higher labour and other operating costs than its competitors An ongoing disputes between Qantas management and militant unions
For its new international budget brand, Australian Airlines
Taking advantage from the Ansett collapse by hiring new staff, expanding routes and purchasing / leasing more aircraft Developing further E-commerce operations
Strategies of its main competitors especially Singapore Airlines and Air New Zealand (international) and Virgin Blue (domestic) Increase in government regulations to protect its smaller rivals Rising fuel costs
Further fall in Australian dollar
Further weakening in the international market / economy
As a result of Ansett’s collapse, Qantas is currently in the growth stage domestically (with increased sales, revenue and market share) but in the decline stage internationally. In response Qantas has planned to hire more staff and increase the Qantas fleet by 15% by long-term leases and purchasing new aircraft. Also by establishing a discount airline called Australian Airlines.
3. Marketing Objectives
Being a public company listed on the ASX, Qantas’s main marketing objective is profit, both in the current and long-term periods. Its goal is to provide a satisfactory return to shareholders and to generate enough profit in reserve to fund growth and the gaining of new aircraft.
Qantas’s other marketing objectives include the following:
Increased sales of passenger tickets
Increased market share in the airline industry
Growth / new routes, and corporate size as there are cost advantages in being bigger
Decreased operating costs, especially labour costs.
4. Marketing Strategies
Market Segmentation and Selection of the Target Market
Market segmentation is the process is the process of dividing up the total range of potential or current into smaller discrete groups to facilitate analysis and planning. This enables Qantas to:
Better meet the needs of all its customers, to compete more effectively and to attain financial goals more readily Better tune the marketing mix to particular groups in the market, so the product can be refined, prices set, place of sale determined and promotion better focused for each market segment. EG: Economy, Business and First Class travellers.
Qantas’s market segmentation is complex because each segment has distinctive and different needs and expectations, such as the desire for stopovers, the ability to pay fare levels and expectations in terms of in-flight service and comfort.
Qantas mainly uses behavioural segmentation to select its target markets. Buyers are distinguished according to trip purpose, for example: business and leisure / non-business travellers.
However, there are many reasons for travelling either business or leisure.
The business segment is broken down even further into routine business (normal point to point business travel), conferences / seminars and emergency business which reflects passenger needs and benefits sought.
The leisure segment is broken down into holiday (inclusive of tour segment, multi-destination touring segment and weekender segment) and visiting friends a relatives.
Formulating the Marketing Mix: The 4 P’s
As the airline industry has become much more competitive, airlines like Qantas have focussed on product planning. Qantas designs products to attract and hold customers from a...
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