Qantas Market Segmentation

Marketing strategies are an extremely important factor in determining the overall success of large global businesses (LGB). Marketing strategies are plans of action intended to promote and sell goods or services. There are a number of marketing strategies available, however, this report focuses specifically on pricing, promotion and global marketing. These determine how a business sells its goods and services, subsequently affecting market share, profitability, and cash flow. This is demonstrated when looking at the global businesses of Qantas Pty Ltd and Apple Pty Ltd. Qantas is an Australian based airline, which has grown from an airmail company to the largest airline in Australia,

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at

Organisations come to exist to fulfill many purposes and reasons. For example some pursue to provide essential services for the community benefit, whereas others for profit produce goods or services. Therefore in general terms business plays a role in overall contribution of our society. The market today is very strong and competitive. Hence marketing activities often can be a differentiating factor between industry leaders and the other market players. The purpose of this report is to examine the marketing objectives of Qantas airlines. This assignment wishes to firstly focus on giving a background of the company. Secondly defining the term segmentation and target market and describing Qantas apparent target market. Thirdly the positioning Strategy Qantas has taken, fourthly explaining the role that Integrated Marketing Communication plays in the company’s current marketing effort. Lastly marketing communication tools, messages, and media that Qantas uses to communicate with the different audiences it targets.

Virgin Australia which was formerly called Virgin Blue is the Australia’s second largest airline. The airline was started in 2000 by British business tycoon Sir Richard Branson and former Virgin Blue CEO Brett Godfrey. The airlines started as low-cost carrier, but went on to become a “new-world carrier” (Virgin Blue media release, 2011). This low cost airline went on to become a full-service airline by 2012 with the name of Virgin Australia. Since the year 2000 the airlines grew rapidly and posed threat to Qantas airline and over the years Virgin Blue looking at the marketing trends and characteristics of the aviation industry grew into a Full Service Airline and is considered a four star airline by research consultancy firm Skytrax.

In an airline industry, customers form the core of the organisation and this is achieved by the level of customer satisfaction by voting for the airline. This expresses confidence in the airline. The airline to meet its customers expectations needs to ensure the following is adhered to:

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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:

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.

business travellersaccount for 50% of passengers and therefore should be a target for marketing and should be included inthe business model. This can be seen as a weakness for not targeting this segment. easyJet’s business model also relies on people flying more often. However, there is a limit as to howoften people fly. The growth is not infinitive, it is possible that the low-cost market will be saturated. Itwill come to a point when the low-cost airlines will not be able to stimulate any more demand fromlow prices. (CPRE: The Future Development of Air Transport in the UK, July 2003

As a legacy airline, it would not be productive for United to try and gain business from those that are more concerned with lower ticket fares. Instead, the airline chose to focus on the frequent business travelers as their core market. By segmenting the customers, United chose to focus on the global executives as their target market. “These folks made up only 9 percent of United’s travelers, but they represented 46 percent of United’s revenue” (Di Frisco, 2011, para. 2). By using psychographic segmentation,

Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater certainty for the shareholders while also being able to increase its numbers in international routes to 33 one-stop destinations in Europe in addition to 31 one-stop destinations in the Middle East and North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore, from 31st of March Qantas frequent flier point users were able to book Emirates flights while the customers’ high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus Travel, 2013).

* First of all people who go to an airline are because they have the need to travel, which the main feature is. Inducing the consumer or person, as their main need.

Although most travel industry advertising is aimed at leisure travellers, airlines advertise features of their business products such as seating standards and in flight entertainment.