Strategic Planning, Product Positioning and Customer Value Marketing Theories Applications at Qantas Group

Topics: Qantas, Airline, Low-cost carrier Pages: 24 (6431 words) Published: March 14, 2011
Strategic Planning, Product Positioning and Customer Value Marketing Theories Applications at Qantas Group

A Report By Amit Singh ID: c3099441

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Amit Singh ID: c3099441

Executive Summary
Qantas was founded in Queensland in 1920 as Queensland and Northern Territory Aerial Services. It is twelfth largest and second oldest airline in the world. Since Qantas was privatised in 1993, it has operated profitably in international and domestic air services and a range of related businesses. This report has attempted analyse and discuss some of the marketing theories such as strategic planning, product positioning, and customer value that Qantas has applied and what benefits it obtained strategically from applying the theory in it marketing strategy.

Global trend in rapid emergence of low-cost carriers and launch of Virgin Blue in 2000 provided very steep challenges to Qantas for survival. Qantas identified this changing environment and designed its business portfolio as part of its strategic planning. This included purchase of Impulse airline, launch of low-cost carriers like Australian Airlines and JetStar and expansion of nonflying businesses such as catering travel and freight. Qantas also reviewed and re-designed its business portfolio regularly to ensure its business portfolio best fit the company’s strengths and weakness to opportunities in the changing environment. This included cease operations of Impulse and Australian airlines. Through these strategies planning Qantas successfully competed with low-cost carriers and also to reduce the risk of cannibalisation of the mainline carrier.

Qantas offer has many competitive advantages such as safety, schedules, seat allocation, inflight services, oldest Australian airlines, spirit of Australia and few others. However, Qantas has positioned its product only as ‘safety’ and ‘Spirit of Australia’ because these are the only differentiations that are

important, distinctive, superior, communicable, affordable, profitable, and most importantly pre-emptive. Product positioning cannot be built on empty promises. Qantas very few incidents during its 88 years history has built its brand reputation as one of the world’s safety airline. Qantas has developed reputation as ‘Spirit of Australia, mainly because Qantas has always assisted

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Amit Singh ID: c3099441

Australians during times of crisis. Qantas red kangaroo logo has provided a strong brand recognition and image differentiation.

Qantas has created and delivered customer value by providing best possible experience to customers before, during and after the flight. As customers are value maximisers and they see product as complex bundles of benefits that satisfy their needs, Qantas has augmented products benefits by having high quality inflight services, seat allocation, convenient check in, Qantas Club, holidays packages, car rental facilities and many more. Qantas brand reputation for safety and spirit of Australia has also played a big role in creating and delivering customer value.

In line with all above discussions, it can be concluded that Qantas has applied strategic planning, product positioning and customer value marketing theories very well in it marketing strategy. However, few safety incidents within last few months, ongoing cost cutting, outsourced maintenance agreements and ongoing disputes with personnel have all served to undertake not only Qantas’s reputation for safety and engineering excellence, but also confidence in the airline as a whole. So, it is time for Qantas to refocus on the process of creating value to customers as well shareholders through strategic planning. If shareholders value dominates, customer value is reduced and consumers actively look for alternatives. If customer value dominates, shareholders do not receive sufficient value in terms of dividends and capital growth. Hence, Qantas needs to get the optimal balance between...

References: Firth, N. (2008) Lean Sigma at Qantas, viewed 14 November 2008, vice_2008/Neal_Firth.pdf
Harcourt, T
Hogan, M (2008) Protecting your brand in a downturn, viewed 17 November 2008,
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Kotler, P., Brown, L., Adam, S., Burton, S. and Armstrong, G. (2007) Marketing, 7th Edn., Prentice Hall.
Ngo, L. (2008) Marketing lecture 6, viewed 13 November 2008,
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Wikipedia (2008) Qantas, viewed 14 November 2008,
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