Marketing Essay About Qantas

The Qantas Group employs approximately 32,500 people and operates a fleet of over 250 aircraft,

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

Qantas International faces both direct and indirect competition, in a highly competitive, global marketplace. Direct competitors to Qantas International are those airlines that market full service international air travel, and the primary direct competitors identified in this market are Emirates and Singapore Airways.

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

Qantas capitalized on by increasing its domestic share of the market from 55% to approximately 80%. Qantas management had effectively filled the gap left by Ansett by moving planes from the depressed international routes to the company’s expanded domestic market and by leasing planes from overseas to expand its aircraft fleet by

Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008).

This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.

Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:

A new entrant to the airline industry does not have any trouble with their distribution channels, as the only distribution required is that of marketing their service, which is open to any company who wishes to do so.

Overall, Qantas Airway is a strongly established airline company in the world; however it will need strategic planning in order to tackle potential threats.

1. Qantas uses marketing research to gather and discover in making smart business marketing decisions. Qantas uses primary data and secondary data sources to get information to improve their service. Primary data include ongoing surveys from the commuters that use Qantas, mail based surveys, complaint monitoring, and discussion with customers through communication between customers and staff such as cabin crew and lounge staff. Secondary data includes government statistics, airline based magazines and reported interviews with competitor’s executives.

In 2011, Qantas suffered complications from inside and outside the brand. Several job cuts and structural changes, their focus on returns to stock holders and not its responsibilities to the share - holders all added to their external issues. The external issues that rose were the increase of new competitors, changes in consumer decision making, the high demand of customers for lower rates and better quality. Lastly, Australians began their international travels with other international brands. 2016 has proven to be a turnaround year for Qantas relying largely on the lowered prices of oil and the falling Australian currency. Qantas recovered from a $2.8 billion loss in 2014 to a net profit of $688 million within six months. The turnaround has been described as “one of the most remarkable in history”

Qantas is renowned as the world 's foremost long distance carrier and among the most powerful brands in Australian market, being established in Queensland in 1920. The company has been magnificently able to establish a standing for distinction in safety, operational dependability, high end technology and excellent customer services. It operates in local, national and international routes and destinations (QANTAS, 2015). Today, the airlines operates across a network of 175 destinations in 42 countries covering all over the world with approximately 30,000 employees. The Qantas group also propagates subsidiary businesses like complementary airline brand Jetstar, and other businesses in dedicated services such as Q Catering, Qantas Freight Enterprises and Qantas Frequent Flyer (QANTAS, 2015).

Market research is an organized system of collecting and analyzing information to help in marketing decisions. Qantas undertakes effective market research in order to gather sufficient information to allow them to undertake proficient analysis of their collected data to direct their marketing decisions. Encompassed within the marketing process, there are many stages:

The airline industry is one of the fastest-changing industry sectors in the world today (Kernchen, 2004), Changing market demography include empowered customers, new distribution channels constantly forcing airlines to adopt and improve their operations and business models (Shaw, 2011; Kossmann 2006). At the same time the airline sector is one of the mostly affected industry by the technological advancements, airline companies should use this opportunity to gain competitive advantages over rivals as a way of value creation to its customers. Advances in the field of Information and Communication Technologies contributed to the empowerment of customers who became more experienced, sophisticated and striving for individual and independent products (Buhalis & Law, 2008).