5/6/2011 S23220059 | Ken Koh Cong Kang |
JETSTAR AIRWAYS | MCD 2050 Marketing Major Assignment |
Table of Contents
Executive Summary3
1. Introduction4 1.1Purpose of Report4
1.2 Background of Jetstar4
1.3 Segmentation5
1.4 Plan of Report5
2. Discussion6
2.1 Product Category6
2.2 Major Competitors6
2.3 Brand Package and Label7 2.3.1 Brand7 2.3.2 Package8 2.3.1 Label9
2.4 Target Segments10
2.5 Needs and Wants11
3. Conclusion13
4. Recommendations14
5. Reference List15
Executive Summary
The purpose of the report is to critically review the appropriateness of the services in Jetstar (JS) for the target segment which is identified as leisure travelers. Through extensive research, this report evaluates ideas of
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* Demographics – As JS reveals its customers as leisure travelers, many factors of demographics do not relate to them as in the market of airline industry, consumers can be of any gender, age families size etc. One aspect in demographics however, is income. The income of the consumers in JS ranges from low income to even the highest income based of the preference of consumer’s choices. * Psychographic - JS provides two variations of cabin classes (Star Class and Economy) to meet the different needs and wants of consumers. The strategies of JS have attracted a market that have a simple need to reach their destination at the cheapest rates. * Behavioral – refers to the consumer behavior when consuming the products. Characteristics include frequency of consumption, buyer readiness and loyalty. Frequent flyer programs and the cheap and flexible ticket prices can result in consumer’s loyalty to the airline. 1.4 Plan of Report
This report will consider the appropriateness of the services offered in Jetstar for leisure travelers in its discussion, and will draw a conclusion on how certain concepts of these strategies can be utilized by managers at JS. Also, the interpretation of the different product strategies JS can implement. Lastly, the report will provide recommendations that could be implemented by JS for improvement to better understand the buyer’s characteristics.
1. Discussion 2.5 Product Category
A product is defined
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.
Customer service is a valuable influence on quality. Qantas delivers the expectations of customers by representing civil and accommodating staff members. Qantas has implemented a series of operational strategies to enhance the speed of their service. These vary from booking flights online, online check in, check in kiosks and Q Bag Tags. Dependability at Qantas is based on the consistency of on-time departures and arrivals. Flexibility is relevant to Qantas’ responses to the changes in market demand. Flexibility is demonstrated through Jetstar’s variable fare. Qantas offers customisation through its participation in the Oneworld Alliance, where it can provide its services to over 680 destinations in 134 countries. Qantas has worked on developing less costly and more efficient opportunities for its consumers by launching new discount airlines: Jetstar and Jetstar
Flight Centre Limited (FLT) started in the early 1980s and is an Australian-based company listed on Australian stock exchange (ASX). It is now ranked as the third largest Australian consumer service company with market capitalisation of approximately AU$4,117 million as at early May, 2013 and is employing over 7,000 employees in Australia. FLT is engaged in three main segments of travel retailing, corporate travel management to wholesaling business with a global presence but mainly focused in 5 geographical regimes in Australia, United States, United Kingdom, Asia and the rest of the world. FLT owned more than 30 brands including FCM Travel Solutions, Corporate Traveler, Escape Travel, Student Flights to Campus Travel and many more with a global networking spanned over 75 countries to develop and promote attractive and responsible holiday options. Some of the key competitors in Australia are Jetset Travelworld Limited, STA Travel LTD, and Webjet Limited.
The article by Creedy looks at the newly announced expansion of Jetstar Airline services from its current domestic Australian flight service to its penetration of the trans-Tasman market. Jetstar’s original purpose was to provide Qantas (Same Ownership) a cost-effective alternative for the provision of domestic flights around Australia while also giving customers a cheaper and somewhat “no frills” option when flying locally. The article outlines the considerations and specifications that Qantas and thus Jetstar have undertaken in order to accomplish its “first foray overseas” as part of its “segmentation strategy”. Jetstar’s expansive venture is
In order to get the full benefits of the low-cost leisure travel boom in Asia the rapid presence of Jetstar (one of the popular subsidiaries of Qantas Group Airways) should be strengthened.
Jetstar shares its parent's strong competition with Australia's biggest low-cost carrier Virgin Australia. Domestic travel accounts for 75% of the airline industry revenue in Australia (Taylor Woodings, 2011)
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,
Behavioural can be analysed by the usage rate and the perception and that people may have towards the product. If the product is perceived by its customers as a high quality product with a reasonably good price it may result into the company gaining a higher market share. Meaning that the company could then predict quantity of stock and cash flow more accurately.
1.1 Product: At the point when Delta carrier changing their value, offering low airfares it pulls in clients toward them and afterward individuals initially favored that airline. Also, when aircraft give markdown on distinctive seasons it likewise draws in individuals. As indicated by the contextual investigation, aircraft known the moderateness of individuals and organization has numerous techniques; organization give most reduced conceivable charges to business explorers or relaxation voyagers in a basic straightforward manner. From the beginning, organization has altered expense on airfares regardless of the possibility that the traveler in plane is few or the high cost of flying a void plane
Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.
Of the total travel market only 1% was generated from the online travel market, and consumers still depended on customer call centers to confirm payment status. To counteract the risks it is important that Lucky Air create an effective business-consumer-business model that will do the obvious and draw consumers to their site and make an online purchase of airfare. To draw in consumers Lucky Air will need to focus on Web 2.0, which is the unique feature or features of e-commerce and the Internet coming together as applications and social media technologies. Web 2.0 will allow for a better online experience with inter-human connections, consumer interacted blogs and the staff to constantly monitor the site to provide consumer feedback. Web 2.0 is crucial to providing customer relationship management. Promoting reviews from consumers in regards to destinations and airline experience are important so the consumer can feel they are important enough to expose the truth from other consumers even negative remarks. But the single most important part of focusing on e-commerce is the ability to provide a online experience and advanced technology that enables customer self-service without the need for multiple customer call centers. Customers should be able to pay for fares, cancel fares, use a safe payment method that can verify a credit card, check on the status of flights and use rewards programs
In 1933, Turkish Airlines began operations in Istanbul, Turkey. Throughout the eighty-four years Turkish Airlines has been in business, they have acquired two-hundred and ninety-eight aircraft including three-hundred and thirty-two passenger aircraft and fifteen cargo fleets, all servicing three-hundred and two destinations worldwide. Their mission statement, “Opening doors of the world to our passengers to give them pleasant surprises, bringing them a diverse and memorable travel experience”, exemplifies how proud Turkish Airlines is of their global approach which is clearly conveyed through their advertising campaign “Widen Your World”. Turkish Airline’s target market is made of all adventurous discoverers, those that are between the ages of twenty-five and thirty-five, and sixty plus (retirement age), and those with disposable income.
The emergence of low cost airlines and their business models have fostered several changes within the tourism and travel industry as well as are having a tremendous impact on travellers’ behaviour. This increase in the travelling has a positive impact on the growth of various airlines. The development in the tourism industry especially in Europe over the past few years reflects this fact. Cultural changes towards travelling will benefit
Consumer behavior is defined as the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individual make decisions to spend their available resources on consumption related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they use it, how they use evaluate it after the purchase and the impact of such evaluations on future purchases and how they dispose of it. As individuals all differ in many ways in likes, dislikes, attitudes, cultural background, income level, etc. Despite such differences, there is a common factor among all of
Is the price for the ticket and service abroad to the standard of the service obtained by the customer?