Quantas Airlines Marketing Analysis

The report examines about marketing objectives in hospitality in Qantas airlines. Qantas is Australians largest airlines and one of the oldest airlines in the world. It is the Australian main airlines. Our main hubs airport is Sydney airport, Melbourne airport in Australia. We focus on some cities London Heathrow airport and Cairns international airport. Total employees working with Qantas 33,584(2012).Qantas have own website www.qantas.co.au.In our organisation we always fulfil customer requirements and needs.

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TASK ONE

2 Situation analysis.

2.1. Brief description about Qantas:

Qantas was founded in Winton, Queensland on 16 November 1920 as Queensland and northern services limited by Paul McGinnis, Hudson fish, Fergus McMaster and Arthur Baird. Qantas Empire Airlines (QEA) limited was formed in 1934 by Qantas. They flying internationally from May 1935, when the service from Darwin was extended to Singapore in 1947. In 1958, Qantas operated the second flight by super service from Australia to London through Asia and the Middle East. Qantas operated a significant number of international flights out of Singapore, Auckland airport, Brisbane airport, Los Angeles and London Heathrow airports Qantas one of the most profitable airlines in the world. In 2008 the first Qantas airbus A380 was handed over by airbus at a ceremony on 19 September. Melbourne to los angles was the first route of A380.

• Where fitted with Qantas organisation:

Qantas fitted their organisation on travel sector. Qantas linked with the development of Australian industry. Qantas is widely regarded ones leading long distance airline and one of the strong brands in Australia. Qantas provide outstanding service to their customer and do the great contribution of worlds aviation industry. As a travel organisation we built excellence in safety, operational reliability and customer service. The Qantas main business is transportation customer to one place to another place using two brand airlines Qantas and jester. Qantas operate regional, domestic and international service. We provide the best services in order to gain customer loyalty. As travel sector Qantas go the following mile stone which one is the good for the travel sector. Where Qantas fitted their main element is transportation. In operating is significant large to bring travel and tourist industry. In terms total group operations, total passengers carried increased 3.5% in 2011/2012.The more increasing passenger kilometre by 3.15 in the financial year 2011/2012.In our organisation is hospitality sector.

2.2. Identification of Qantas main stake holder and their interest:

a. Internal stake holder:

• Qantas Stuff:

Stuff do the great contribution in any organization. our Stuff perform specific duties in most modern economics. They defined relationship between individual and corporation if any customers unhappy with our service than stuff motivated them. Stuff always look after their customer.

• Qantas Manager:

Manager is good element of any organisation. They contribute their skill, knowledge, experience, expertise &return salary, status, payment and bonus. If Customer not happy with stuffs or their have any problem then manager directly talks with customer.

• Qantas workforce:

Organization hiring the skills and receiving bonus, wages and promotions. Qantas always recruit qualified employees. Those people get the different type of bonus, promotion. We want offer you a skilled, experienced person if they do good job properly then we keep you for this job if you happy.

• Qantas shareholder:

Shareholder who invest money and they expected profit. That’s why they spend a lot of money. So as organization shareholders contribute lots of thing. Whose are invest money for our Qantas they our entire internal stake holder. Shareholder always invest when they think that is the profitable for them. Shareholder always linked with sustainability and risk management.

b. External stake holder:

• Customer

The core of product or services is to provide the best services to customers. Customer who buy our product or service and give us money. Qantas always want to fulfil customer needs and expectation Customer is the external stakeholder in Qantas airlines. Our Qantas always follows customer needs their requirements.

• Insurance company

Insurance company are the external stakeholder of our company. when our customer go one place to another place they need to life security. that’s why our life insurance provide that type of facility.

• Qantas supplier:

Qantas have different type of supplier food supplier ,fuel supplier. Some of company provide good food for our airlines customer. When our airline landed then airlines need fuel. A petroleum company provide fuel.

• Government:

Government gave some policy. When we run our Qantas organization we always follow government rules and regulation. Qantas provide government tax, vat. Government is our external stake holder.

• Agent:

When our customer wants to go one place to another place. Then they need to be ticket. Agent give them ticket and everything. Qantas travel agency they do that job. They sell our ticket and take from us percentage. So agent is the good point as organization and customer.

We have more some external stake holder include hotel, restaurant, and car rental organization.

2.3. PESTLE ANALISIS OF QANTAS AIRLINES

Pestle analysis is component of strategic management describes a framework of macro-environmental factors. The PESTLE analysis is important for the marketing development (Johnson and Scholes, 1999).PESTLE analysis using for business position, market up and down. Using PESTLE we now describe how it is work for Qantas.

(P)olitical:

Political factor is very important part for airlines industries. The political issues Qantas problem includes political stability, corruption and tax. Qantas stable with strong politic countries to run their business. British airways and Qantas limited are considering a potential which is considered the most ambitious initiatives process of worlds aviation’s industry. Qantas have license to run their business. Qantas keep of oil under the control of “organisation of the petroleum exporting countries” can lead to fuel price.

(T)echnological

The technological innovated development has Qantas airways. The two new aero planes do non-stop flying between two continents. Qantas have online booking system. Where ever our customer they can book tickets via the online. High technology can rising customer expectation. Qantas always use high technology product and service. They have developed the worlds most advanced aeroplanes 380A and B747.These really improved the convenience of flying.

(E)conomical:

Economic issues are other aspects of aviation industry. Inflation of currency rates can affect the Qantas where they leads to unstable of economy. At this time financial recession turned into the economic crisis, Qantas Airways Limited will inevitably be affected. Foreign change rates can affect Qantas airlines.. Customer is everything is an organization. The financial report 30 June 2009 revenue was $14.3 billion but in 2012 it reduced $13.6 billion. The profit of Qantas in the financial year was $117 million AS 30 June 2009 it reduced $112 million.

 

(S)ocio- cultural:

Qantas has lots of variety customer. The airlines industry showed a great influence on the Australian life. Brand identity is important (Campbell,1999) for an airline industries. Qantas has strong brand identity that’s why they using Australian national symbol.. Australian government recently released an article on the report of the status of the airlines industry. Qantas brand quality knows all over the world. Qantas offers different type of service using low cost prices to customer purchasing behaviour.

(E)nvironmental:

Where we situated our Qantas organization is their environment friendly or not. our Qantas wastages of fuel it is not good for environment. It could be pollute our environment. In our customer uses the cloth. After using cloth it is rubbish put on the bean. We must follow the Qantas uses the environment protection system. Qantas sometimes decrease emission of fuel.

(L)egal:

Legal aspects are important for Qantas airlines. Qantas maintaining health and safety rules for the customer and employees. They are following food and hygiene roles. Qantas industry must follow the employment rules and regulation. That law maintains all of employee customer. Anybody can not smoke in airlines.

2.4. Main marketing issues of Qantas airlines:

Qantas position in international airline market is more than in the domestic market. When All over the world have lots of airlines. They are competitor each other’s. Qantas face strong competition among other airlines. It is very difficult to Qantas increase their sales to focus on their market segments. Qantas always try to give their customer proper products and service. Qantas fulfil their expectation and needs. That’s why Qantas follow the market segments issues. Market segments can be increase their customer. Qantas airline acquire effective marketing mix strategy promote product service. Every organisation follows the marketing mix strategy. As an airlines company Qantas always want to promote their business.

TASK TWO

3. Marketing strategy:

Marketing strategy is based in macro environment and micro environment scan through of stakeholders such as stuff public, intermediaries, customers, supplier’s competitors to the target market.

Qantas segmentation:

Market segmentation divided of a market different type of customer with same needs. The purpose of market segmentation is ensure that the elements of marketing mix design to different customer specific needs. A marketing term referring to the aggregating of prospective buyers into groups that have common needs and will respond similarly to a marketing action. Qantas have limited resources that are not possible to produce all time for all people.

Qantas targeting:

Qantas must use why people target few markets and how these markets are identified. Qantas do the targeting based on our market segmentation. Qantas following demographic segmentation. They are targeting middle class people to upper class people. Lower class people cannot by the economic class tickets. Qantas has got some regular customer. They travelling always and recommended some other customers. Qantas targeting the high class customer. If we keep our customer than we know what our customer needs and wants. and we want to fulfil the our customer needs. That’s why Qantas stuffs always try to make good relation with customer.

Positioning of Qantas:

Positioning is the art of designing the company’s offering and image place in the mind of the target market. In positioning we must need to know the how we going to good position in business strategy. We must follow that customer needs and expectation. If company want to go a good position than Qantas must fulfil customer requirements. We can do the advertising campaign than our customer knows about Qantas airlines and them attractive in our airlines. We are aware of our customer how we provide our service. As type we fixing our company’s reputation.

TYPE OF MARKET SEGMENTATION:

• Geographic segmentation:

This market is segmented according to geographic criteria nations, states, regions, countries, cities, neighbourhood, geographic data create a more accurate profile of Qantas airlines. Qantas provide an indication of provide according to different geographic regions.. All over the world have different type of customer. When Qantas using their geographic segmentation then we targeting which countries customer most using our Qantas airlines. For example European countries people using our airlines more than Asian people. That why we are targeted European market. We always try to keep all of customer. We provide all of good flights in European countries.

• Demographic Segmentation:

Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. Demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, there is often much more data available to help with the demographic segmentation process. In our Qantas airlines see the ages people prefer our service most. On this segmentation we saw the most of the people are over forty users. Most of are educated people. Our Qantas most users Christian religions people. One more think our most of the customer are gentle man. Different customer have different income. We using the first class, economic class, business class.

• Psychographic Segmentation:

Psychographic depends on personal satisfaction. Psychographics is the science of using  demographics to better understand consumers. Psychographic segmentation is divided according to their lifestyle, personality, values and social class.. Every people have different ideas and nature. Psychographic segmentation according to their opinions surveys is one tool for measuring life style includes activities interest, opinions, attitudes, values. In this segmentation our customer has different life style. Different people have different social class. For example our middle class customer uses the economic class seat and rich people using the business class. On this segmentation we provide different people different service.

• Behavioural Segmentation:

In behavioural segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behaviour of the consumer. Some people have enough money. They are want some extra facility. Behavioural segmentation is based on customer behaviour toward products include (benefits sought, usage rates, brand loyalty, user status, readiness to buy, occasion).

3.2. Product & service which have using Qantas airline

Our company using different type of product and service. Supply chain development linked with marketing development. The value of chain development links (Shi and Makkula, 2004) to internal business development through an integrated system by using advance technology such as e-booking, e-mailing ,internal communication ,and e-marketing. Supply chain development involves external stakeholders such as suppliers ,customer ,and public interests(Christopher,1999). Collaborations very important in building the supply chain development (Todeva and Knoke, 2005).Qantas generated profits in the past three years (Yahoo Finance, 2012). The main aim of product or services to provide to gaining customer. According to Mittal ET a1 (1998), service attributes determine the level of customer satisfaction, customer loyalty and customer retaining to generate profit in an organisation. The of the Qantas provides safety and security as comfortable journey. According to Yahoo Finance (2012), Qantas operated a fleet of 308 aircrafts to comfort its customers as at 30 June 2012.E-ticketing is facility to customers which is largely used by the Qantas management in the current market.

3.3. Qantas pricing strategy:

Qantas airlines getting position to attract customer pricing strategy will support this position. Qantas offering lower pricing strategy to customers. Qantas normally change the price according number of customer. Qantas serve the customer and give them proper service. pricing strategy can attract the customer. According to Kotler (2003),a pricing strategy can increase customer attraction towards the products positioning which can generate more profit for an organisation. We using our business policy talented and professionally pricing team based in our head office make an important contribution to the effective operation in each business. Business Qualification is highly valued on this section not essential for all rules. Qantas responsible for providing support analysing and accurate maintaining pricing strategy. Qantas have low cost airlines jester airways they deal with low cost budget for customer. Qantas give them cheap price and fulfil customer requirements.

3.4. Promotional Mix:

Promotional mix has two classes; personal and non-personal. personal mix who directly talking to each other, face-to-face in a meeting, or on the telephone. Customer can ask questions about the company’s brands and products. On-personal promotional mix refers to publicity events and includes all print, broadcast and display tools. They provide important advice and a professional service in delivering a marketing communication campaign.

Qantas promotional mix divides 5 parts:

1. Advertising

2. Sales promotion

3. Public relation

4. Sponsorship

5. Direct marketing.

• Advertising:

Advertising is any paid-for mass communication activity. Advertising is the best which way people know our Qantas airlines. Advertising can be down throwing TV, Newspaper, build board, magazine, online, internet, poster, tourist brand publication, ambient media. When we advertised the newspaper customer get our Qantas volume discount. When people watching television they saw the advertise of Qantas airlines. People go one place to another place they saw the Qantas billboard. Our broadcast message gone throw the internet it is essential for the target customer

• Sales promotion:

Sales promotion is marketing communication function that is adds value to brand image. When customer buy something that time using sales promotion. When company new product launches customer utilize to trial this products. That’s why product price is gone to be cheaper. In particular sales promotion must be targeted in target markets. Qantas always give their customer discount voucher offer. Promotion includes push market and pulls market strategy.

Advertising

Public Relation

Sales promotion

Sponsorship Direct marketing

• Public relation:

Qantas want to increase their sales that are why they using the public elation tools. Qantas did their business by listening and responding positively to customer. Qantas do the long term relation with public. Current time public relation is the best way to promote Qantas products. If company wants raising their reputation than it is very important always good relation with public. The public relations role includes managing publicity aimed at financial stakeholders and political bodies, as well as promoting company image and specific brands.

• Direct marketing:

Direct marketing means organization promote their business directly with customer. Qantas face to face conversation with their customer. What new service and products provide from Qantas they are describing that sort of part? Qantas want to give them proper motivation. If product is good than customer used it if it is not than customer don’t use it

• Sponsorship:

Sponsor can be promote business. Every year Qantas lots of customer go one place to another place. When they travelling abroad they can facing lots of problem. For example flood, tsunami can affected Qantas customer. That’s why they need to life secured position. Qantas always give them proper life insurance policy which one is good for the Qantas customer.

3.5. ORGANISATION DISTRIBUTION STRATEGY:

Qantas uses the different type of distribution or market channel to provide customer convenience. Distribution strategy Qantas uses different types of method. Distribution strategy make available information to customer. Qantas do reservation and payment system. Qantas airlines uses website to increase customer purchasing power. It is good for the customer getting range of airlines choice. Wholesalers buy goods and service from producer. The internet is the latest tool of Qantas distribution strategy for target customer. Qantas using the sales promotion to direct getting the customer. We using advertising and media to promote our service. Qantas is largely involved to the network development. Supply chain development helps to speed up the distribution to the targeted audiences (Attaran and Attaran, 2007).The management acquire both direct or indirect distribution strategy to gain customer loyalty. Distribution strategy is important in the marketing development.

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3.6. Marketing mix using Qantas Company

Marketing mix:

Marketing mix is one of the successful mixes of the right product sold at the right price in the right place using the suitable promotion. Marketing mix is the marketing condition. It is a part of marketing plan. Marketing mix is called 4Ps and 7Ps.The 4Ps are product, price, promotion, and place. Additionally added process, people and physical evidence. Marketing mix always prefer always consists of 7Ps. 7Ps include.

A. Product

B. Price

C. Promotion

D. Place

E. Process

F. People

G. Physical evidence

3Ps extended marketing mix:

A high level of quality service can gain customer satisfaction and customer retention. A good service quality can increase customer loyalty that allows the management to gain profit (Heskett et a1., 1994).Marketing mix strategy should be acquired an organisation to promote products and services to gain profits.

 

Marketing 3Ps

• People
• Process
• Physical evidence

The 3Ps extended marketing mix strategy strength its marketing positioning. These strategies are people, process and physical evidence (Chaffely 2007).Therefore, customer service is an important part in the airline industry. Qantas provide good customer service and stuff training to increase their skills. As claimed by Maslow and Lowery (1998), stuff basis needs should be fulfilled before can motivate them to improve service quality.

• People:

Stuff is the most important person for Qantas airlines. So recruiting the right stuff in a right position and properly trained them. Qantas stuff has proper knowledge, skills, capacity that they provide good service to our customer. People are referred to internal marketing which relates to stuff communication. Qantas always trained their stuff and give feedback which way they giving the proper customer service.

• Process:

Process is the service of organization delivering the professionally to our Qantas valuable customer. Qantas make their product systematically that’s why Qantas customer easily find out what ever their need. Qantas need always provide good service on right way. Qantas always getting customer feedback. If customer unhappy for our service then we want to give them proper service.

• Physical evidence:

Physical evidence is the element of service which allows the customer make judgments on the organization. People like always clean and nice environment. If customer walk into the Qantas organization than they see the Qantas airline is clean and environment friendly.

Task Three

Marketing Research:

Marketing research is the aspects of business environment determine economic market demand for existing product. It is helps to better understand how to attract or retain customer to business. Marketing research process defines marketing opportunity and problems observe marketing action and findings the solution to management. Marketing research controlled all of information about customers. It is important for business strategy. This process generate and evaluate marketing action specifies the information required for collecting information. Marketing research provide planning to the market stages.

There have five stage of marketing research

1. Research design development
2. Problem definition
3. Data collection
4. Report presentation
5. Data analysis

First stage – problem define

Marketing research clearly defined objectives or find out real problem of Qantas airlines. A clear and written objective helps business owners avoid the real problem. A useful research market should declare problem that needed the research and it is importance. In this stage marketing researcher of Qantas airlines find out marketing research problem has to find out the problem that needs to be investigating. In this stage they do the environment is needed to formulate research problem that is related. So marketing research identify the problem and identification of the specific. A useful research should declare the specific problem necessities the research and its importance.

Second stage -research design development

The marketing research design what research methods for collecting data of Qantas airlines and which are most suitable for addressing problem set. The methods will depend on how suitable for addressing the problem set.

There are two types of marketing research:

1. Quantitative research
2. Qualitative research

Quantitative Research: It is interested in quantifying (number) and analysing the responses of a representative sample.

• Surveys and questionnaires
• Testing and experimentation

Qualitative Research: It is based on quality of Qantas airlines. Qualitative research find out what type of quality service provide Qantas airlines.

• Focus group (regular customer)
• Depth interviews (finding travel problem)
• Mystery shopping (third party to check your service)
• Qantas airlines marketing manager might use
• Surveys and questionnaires

Third stage – Data collection

In this stage, we need to collect data. Marketing research involves two type of data research. Primary data sources, Secondary data sources. Secondary resource should be the first line of collecting data when conducting marketing research. They are widely available and often inexpensive. If secondary data don’t have objectives the researcher must collect data. Although Primary data fits more research objectives, data collection can be costly and time consuming. Because he need data to find out the problems. There are two types of data collection source.

Primary research data

Secondary research data

Primary research data:

Primary research data specifically designed to address the problem identified. The process is collecting the original data about the market. The research carried out after getting some knowledge from the companies. This process of research can be done by the marketer or can be person which specializes in these type of surveys. Primary research is not carried out organizations generally depend of secondary sources for information.

Advantages of primary research data:

• Primary research is very good for addressing the actual problem. It is shows that Qantas airlines problems and identifies the Qantas error. Primary market research finds data regarding specific market.
• Researcher collecting data and examined their own needs. The organisation complete control the process and the research as far as its objective is connected. Research company can be asked find data regarding specific market rather than on mass market.
• Primary research finds out some relation with current situation of Qantas.
• Primary data using accurate tools which is good for the Qantas airline.
• Collector of primary data is the owner of that information and he need not share it with other companies and competitors.

Disadvantages of primary research data:

• Primary research is expensive for data collection. Collecting Qantas data using costly proposition primary research as marketer has to be involved.
• Researcher need to design everything.
• Primary research is long time process. Because of nature of Qantas the time required to do research accurately is very long as compared to secondary data.
• Primary research need to large number of human resource, data collection and surveys.

Secondary research data:

Researcher of Qantas airlines probably check existing secondary resource become familiarized basic characteristics of this market. We might invented that some of information we need has been already collected. This process involves accessing information that is originator or a distributor of primary market research. Secondary research includes collecting information from third-party such as Qantas websites, Qantas sales and accounting records, magazine articles and Qantas marketers report. Customer doesn’t directly join with us. They using third-party information and decided what they want to do. Customer also can find out any previously information used by the marketer from any internal or external source.

Advantages of secondary research data:

Easy to collecting secondary data. This includes the relative case of access to many sources of secondary data. Qantas with the availability of online access and secondary research used on that research.. Qantas offers convenience and generally usages methods for all sources of secondary research.

• Secondary research is low costly than the other research. This data has allowed researchers access to valuable information for no cost to acquire.
• Secondary research more openly assessed. Secondary research is often priority to define briefly for an organisation.
• Secondary data help to research question. It can be help the researcher clarify questions.
• It is already done and got the result.

Disadvantages of secondary research data:

• The quality of secondary research can be poor.
• Sometimes secondary research can’t find researchers needs.
• Secondary data is not same as running market.
• It is not relevant the current market situation.

Fourth stages – data analysis:

After collecting all of data we need to decide what method of analysis we used to make sense of data. We can take help from other experienced airline to observe the data whatever we collected. Data analysis stage is very important because we need to find out existing problem. Data analysis summarizing the response for each question for every participant. All summery calculate as determining the most comfortable answer can provide an overview of the survey information. Faster calculation vary to according sampling method used to obtain data. Data analysis can provide additional insight ,such as the two difference respondents.

Final stages-report presentation:

This is the final stage of marketing research process, its includes copying, coding, organizing, interpreting and verify the data collected. In this stage report