Syllabus Qantas Marketing Case Study
Role of marketing Marketing at Qantas must be performed in coordination with other business activities:
Strategic role of o Finance depends on marketing to generate funds and marketing strategies such as Qantas’ new facilities are expensive and need to be
marketing goods and funded.
services o Qantas’ marketing strategies are judged using financial criteria such as sales, market share and profitability analysis.
Interdependence with o Human resources is involved in marketing in the way that the right must be employed and in developing job descriptions and designing
other key business training programs. Staff can determine the fate of Qantas’ marketing efforts.
functions o Operations at Qantas may constrain marketing by establishing physical limits such as the scheduling of flights and the implementation of
Production, selling, new initiatives such as improved inflight entertainment and the introduction of on-board Wi-Fi.
marketing approaches
Types of markets The use of marketing strategies like sales promotions and advertising can help boost sales in non-peak times to help smooth operations at Qantas in
times of fluctuations in demand.
Influences on marketing Psychological influences include perception, motives and attitudes of Qantas, which are based on the personal characteristics, comfort, safety and
Factors influencing reliability of the brand.
customer choice Sociocultural influences include social class, culture and peer group, influencing people’s choice
Consumer laws Economic influences have a big impact on business and consumers ability to spend. Travel being a discretionary expense, can result in marked
Ethical downward shift in the demand for Qantas services.
Government influences include the economic policies, which have a direct impact on the level of economic activity and demand for Qantas services.
Consumer Laws
Qantas adheres to the Competition and Consumer Act where the “government law protects consumers from undesirable business practices such
as misleading advertising.”
Qantas has been fined for deceptive and misleading advertising, fined for $5 million and additional charges, levies
Due to this they now have to publish true costs of fares
Ethics
Qantas has ethical responsibility to its customers and society in the marketing of its services. Including, being responsible, accurate and true in
advertising and engaging in fair competition. Qantas aims to produce environmentally responsible products, reducing waste and introducing solar
responsible lighting and air-conditioning, reducing greenhouse gas emissions.
Marketing process
Strengths Weaknesses
Situational analysis
- Turnaround in profits - High risk nature of airlines
Market research
- Multi-brand strategy (Jetstar) - Complex fleet of aircraft
Establishing market
- Highly competitive internationally - Ongoing disputes between Qantas management and unions
objectives
- 60% domestic market share, 80% corporate market
Identifying target
markets
Opportunities Threats
Developing marketing
- Expansion of Jetstar’s international network - Weakening in domestic and international economy
strategies
- Joint venture opportunities in Asia - Competitive challenges (domestic for Virgin and Tiger) and internationally (Asian
Implementation,
- Pursue growth opportunities in associated businesses to and middle eastern carriers)
monitoring and
protect from peaks and troughs. - Increase in fuel costs
controlling
PLC
, PLC stage Example Characteristics Marketing strategies employed
Maturity Qantas Sales have been maintained. Lots of Redesigning packaging/modifying marketing strategies, lots of
domestic competition from Virgin Australia and Tiger. differentiation, upgrading lounges and rolling out of on-board WIFI.
Renewal Qantas Went from $495 m loss in 2014 to strong Ordering new Dreamliner planes, launch new routes and capacity
international profits in the last 4 years. in Asia and increase connectivity with partner.
Maturity Jetstar Sales have been maintained. Lots of Redesigning packaging/modifying marketing strategies, lots of
domestic competition from Virgin Australia and Tiger. differentiation, growth through increased utilisation.
Growth Jetstar Record earnings in 2016, 2017 and 2018. Enhance customer experiences, restructure network, launch new
international routes and capacity in Asia.
Renewal Jetstar Group Improvement in earnings in 2018 with all New fleet and destinations.
in Asia airlines profitable. Challenges remain in an
aggressive competition environment.
Market Research
Identify information needs e.g. customer needs, attitudes, brand preferences, buying intentions and characteristics.
Identify and select data source. Qantas uses primary sources of data through ongoing surveys to passengers, mail based surveys, complaint
monitoring and secondary sources including government statistics, airline magazines.
Analyse and interpret data, choice of menus for business class travellers after the results of recent customer surveys.
Establishing market objectives
Qantas’ main marketing objective is to build 2 leading complementary brands, Qantas (premium airline) and Jetstar (low fares airline)
Increase revenue and decrease expenditure
Maintain Qantas/Jetstar’s combined domestic market share of 60%
Align Qantas and Jetstar with Asia’s growth
Implementing , monitoring and controlling
Developing a financial forecast of revenue using statistical models, past sales data, executive judgement and surveys of consumer buying
intentions. This estimates costs of market research, promotion costs, product development costs and distribution costs.
Comparing actual and planned results using a number of performance criteria e.g. sales analysis, market share analysis and market profitability
analysis.
Revising marketing strategies and taking corrective action where appropriate, introducing budget domestic carrier Jetstar in May 2004 to
counter Virgin Australia’s.
Qantas revised its marketing strategies by lowering prices to stimulate demand, reducing flight frequency on some routes and delaying orders
for new planes.
Expanding Asian markets to take advantage of the aviation growth in the region - Qantas now has 50% of its capacity directed towards Asia.
Marketing strategies Market Segmentation
Market segmentation, Market segmentation enables Qantas to:
product/service o Better meet the needs of all its customers, to compete more effectively, and to attain financial goals.
differentiation and o Better tune the marketing mix to particular groups in the market so the product can be refined, prices set, place of sale determined and
Role of marketing Marketing at Qantas must be performed in coordination with other business activities:
Strategic role of o Finance depends on marketing to generate funds and marketing strategies such as Qantas’ new facilities are expensive and need to be
marketing goods and funded.
services o Qantas’ marketing strategies are judged using financial criteria such as sales, market share and profitability analysis.
Interdependence with o Human resources is involved in marketing in the way that the right must be employed and in developing job descriptions and designing
other key business training programs. Staff can determine the fate of Qantas’ marketing efforts.
functions o Operations at Qantas may constrain marketing by establishing physical limits such as the scheduling of flights and the implementation of
Production, selling, new initiatives such as improved inflight entertainment and the introduction of on-board Wi-Fi.
marketing approaches
Types of markets The use of marketing strategies like sales promotions and advertising can help boost sales in non-peak times to help smooth operations at Qantas in
times of fluctuations in demand.
Influences on marketing Psychological influences include perception, motives and attitudes of Qantas, which are based on the personal characteristics, comfort, safety and
Factors influencing reliability of the brand.
customer choice Sociocultural influences include social class, culture and peer group, influencing people’s choice
Consumer laws Economic influences have a big impact on business and consumers ability to spend. Travel being a discretionary expense, can result in marked
Ethical downward shift in the demand for Qantas services.
Government influences include the economic policies, which have a direct impact on the level of economic activity and demand for Qantas services.
Consumer Laws
Qantas adheres to the Competition and Consumer Act where the “government law protects consumers from undesirable business practices such
as misleading advertising.”
Qantas has been fined for deceptive and misleading advertising, fined for $5 million and additional charges, levies
Due to this they now have to publish true costs of fares
Ethics
Qantas has ethical responsibility to its customers and society in the marketing of its services. Including, being responsible, accurate and true in
advertising and engaging in fair competition. Qantas aims to produce environmentally responsible products, reducing waste and introducing solar
responsible lighting and air-conditioning, reducing greenhouse gas emissions.
Marketing process
Strengths Weaknesses
Situational analysis
- Turnaround in profits - High risk nature of airlines
Market research
- Multi-brand strategy (Jetstar) - Complex fleet of aircraft
Establishing market
- Highly competitive internationally - Ongoing disputes between Qantas management and unions
objectives
- 60% domestic market share, 80% corporate market
Identifying target
markets
Opportunities Threats
Developing marketing
- Expansion of Jetstar’s international network - Weakening in domestic and international economy
strategies
- Joint venture opportunities in Asia - Competitive challenges (domestic for Virgin and Tiger) and internationally (Asian
Implementation,
- Pursue growth opportunities in associated businesses to and middle eastern carriers)
monitoring and
protect from peaks and troughs. - Increase in fuel costs
controlling
PLC
, PLC stage Example Characteristics Marketing strategies employed
Maturity Qantas Sales have been maintained. Lots of Redesigning packaging/modifying marketing strategies, lots of
domestic competition from Virgin Australia and Tiger. differentiation, upgrading lounges and rolling out of on-board WIFI.
Renewal Qantas Went from $495 m loss in 2014 to strong Ordering new Dreamliner planes, launch new routes and capacity
international profits in the last 4 years. in Asia and increase connectivity with partner.
Maturity Jetstar Sales have been maintained. Lots of Redesigning packaging/modifying marketing strategies, lots of
domestic competition from Virgin Australia and Tiger. differentiation, growth through increased utilisation.
Growth Jetstar Record earnings in 2016, 2017 and 2018. Enhance customer experiences, restructure network, launch new
international routes and capacity in Asia.
Renewal Jetstar Group Improvement in earnings in 2018 with all New fleet and destinations.
in Asia airlines profitable. Challenges remain in an
aggressive competition environment.
Market Research
Identify information needs e.g. customer needs, attitudes, brand preferences, buying intentions and characteristics.
Identify and select data source. Qantas uses primary sources of data through ongoing surveys to passengers, mail based surveys, complaint
monitoring and secondary sources including government statistics, airline magazines.
Analyse and interpret data, choice of menus for business class travellers after the results of recent customer surveys.
Establishing market objectives
Qantas’ main marketing objective is to build 2 leading complementary brands, Qantas (premium airline) and Jetstar (low fares airline)
Increase revenue and decrease expenditure
Maintain Qantas/Jetstar’s combined domestic market share of 60%
Align Qantas and Jetstar with Asia’s growth
Implementing , monitoring and controlling
Developing a financial forecast of revenue using statistical models, past sales data, executive judgement and surveys of consumer buying
intentions. This estimates costs of market research, promotion costs, product development costs and distribution costs.
Comparing actual and planned results using a number of performance criteria e.g. sales analysis, market share analysis and market profitability
analysis.
Revising marketing strategies and taking corrective action where appropriate, introducing budget domestic carrier Jetstar in May 2004 to
counter Virgin Australia’s.
Qantas revised its marketing strategies by lowering prices to stimulate demand, reducing flight frequency on some routes and delaying orders
for new planes.
Expanding Asian markets to take advantage of the aviation growth in the region - Qantas now has 50% of its capacity directed towards Asia.
Marketing strategies Market Segmentation
Market segmentation, Market segmentation enables Qantas to:
product/service o Better meet the needs of all its customers, to compete more effectively, and to attain financial goals.
differentiation and o Better tune the marketing mix to particular groups in the market so the product can be refined, prices set, place of sale determined and
