Brand Strategy Integration - Qantas - Case Study Example

Name Class Unit Introduction Brand outline Qantas is the Australian national carrier airline. The airline has been the leading domestic and international carrier in Australia. Since the airline was founded in 1920, it has grown to be the world leader in long distance travels and a strong brand (Qantas, 2015). The company uses two complementary airline brands which are; Qantas-link and Jetstar (Sarina & Lansbury, 2013). The airline also operates subsidiaries business which includes catering. With increasing competition in the industry, airlines have been looking for ways to gain a competitive advantage (Wensveen, 2012). As a member of Qantas management team, I have been able to observe the brand grow and also face major challenges. This brand management plan will analyse how to manage Qantas brand and communications that supports it. The report is written based on the major steps of strategic brand management. The plan is aimed at helping the airline to engage in creativity in creating and enhancing brand equity. The plan will also outline and discuss how the brand will be grown over time. Designing and Implementing Brand Architecture Strategies Qantas expansion of the Asian market is a move that will give it a great position in the market. The Asian market is growing both in business and luxury customer segments (Schofield, 2011). Through promoting itself as a secure, affordable and reliable brand, Qantas will achieve its target on sustainable growth. Defining Brand potential Qantas vision is based on creating skilled and motivated personnel who are able to do further the group success. This will ensure that the crew are able to deliver high quality services and enhance safety in the airline. Positioning involves creating a brand offer such that it sticks to the consumer mind (Kapferer, 2012) Brand positioning for Qantas will involve selecting the target customers. It also involves coming up with goals that the consumers will attain from utilising the brand. Identifying brand extensions and opportunities This involves the new products that have been introduced under the Qantas brand Line extensions for Qantas are (Qantas, 2015): Qantas-link- wholly owned subsidiary of Qantas Airways. This is the largest Australia regional airline and operates through three regional airline entities; Air-link, Sun-state Airlines and Eastern Australia Airlines. The extension operates both regionally and international. Jetstar- This is a value based carrier that operates both domestically and internationally. It is one of the largest low cost carriers in Asia. Jetstar brand have been expanded to Jetstar Asia and Jetstar Pacific. Jetstar New-Zealand- the second largest airline in New-Zealand. Jetstar Asia- Qantas is the major shareholder for Jetstar Asia. The airline has over 20 destinations across Asia and Australia. Jetstar Pacific-the single low cost airline in Vietnam. Point of parity These are areas which are identical with competitors. Most of the airlines have started a low carrier segment and targeted the Asian market. Virgin Australia who is a major competitor in the low cost segment has been a well-established low cost segment (Green, 2013). The point of parity also occurs in the reliability where most of the competitors in the market are highly reliable. Points of difference These are areas that differentiate Qantas brand. Qantas have been in the airline industry for a long time than the competitors (Qantas, 2015). The company have been able to create a strong brand image making them distinguished among the competitors. Qantas flight record stands out among the competitors. The company have won award as the safest airline due to its accident free operations. By using their safety record as to gain consumers, the company will be able to stand out in the market. Qantas quality airline factors are a major point of difference. The airline have lounges and can be scheduled and booked easily. The flight experience, cleanliness and baggage delivery are also exceptional. In 2013, Qantas has won Australia most on time major domestic airline for five years running (Qantas, 2015). Brand hierarchies Qantas uses family brand level where low cost carrier is placed under the corporate brand. The company uses Jetstar as a low cost carrier and is highly associated with the family brand. The two main distinct categories used by Qantas are: Low cost carrier (Jetstar) Regular carriers (Qantas-Link). Qantas also engages in airline catering (Sarina & Lansbury, 2013). The low cost carrier is handled through Jetstar while the regular carriers are handled through Qantas-link. Jetstar will launch Jetstar flights to handle markets which are not covered in Asia. Jetstar is the brand extension introduced through category extension. The main aim is to serve the low cost market segment. This have helped in improving brand image, reduced risks and enhanced efficiency. Customer portfolio has been extended through the low cost carriers. Managing Brands over Time Reinforcing brand To reinforce the brand, Qantas will make it a priority to maintain and preserve the sources of brand equity that exists. Qantas brand is looked as a set of assets that are linked to the name that helps in adding value (Wood, 2000). Qantas brand is defined by brand awareness, brand loyalty, perceived quality and the brand associations. The company will be able to transfer its brand identity to these markets from established Asian markets (Schofield, 2011). Brand awareness Brand awareness is an asset of Qantas airline. It’s the strength of the brand in the mind of the consumers (Keller, Apéria & Georgson, 2008). Consumers are able to recall Qantas airline being world safest airline named in 2014. Most of the consumers traveling to and from Australia have been exposed to the brand. Qantas have been able to attain high level of awareness through their excellent services and safety record (Gollan, 2014). This has created a mental map for the customers. Brand image Brand image is a great contributor to brand knowledge. To reinforce the brand image, it is vital to enhance brand associations and the perceived quality. Perceived quality for Qantas will be built through positioning the airline as the safest and affordable airline. This will act to represent the brand goodness as perceived by the customers. It’s expected that with improved perceived quality, the perception of the customers will improve. It is hard to create perception without validating the claim (Park, 2007). Qantas airline will work in identifying how quality means to different market segments. This will improve the airline perception among the customers. Qantas core brand associations are safety, reliability, affordable and quality services (Byrnes, 2000). The airline have won award due to their safety records and their low cost segment have been one of the most affordable in the industry (Qantas, 2015). With the recent crisis in the company, Qantas have lost some of their reputation (Neilson, 2013). Qantas will enhance their brand association. Revitalising brands To expand brand awareness, Qantas will focus on the new market where they have no presence. This will be followed by introduction of the low cost carriers. These are segments where there is no presence of low cost carriers. Improving brand image Target market Qantas target market has been local and international flyers. With the domestic market becoming saturated, Qantas will target the growing Asian market with low cost carriers. The target market is looking for an airline which can be trusted with affordable costs, reliability and safety (Park, 2007). The three market segments that Qantas will be targeting in new Asian market are leisure and business customers. Qantas through the Jetstar have the capability to meet the needs for this market segment. Apart from the low cost carriers, the company will also target the affluent customers who can afford the Qantas premium services. Repositioning the brand Qantas have been positioned as reliable, safe and also low cost through its Jetstar. To reposition the brand, it will involve making it more attractive to the customers (Sengupta, 2005). This will involve making the airline most luxurious while at the same time charging customer friendly prices. The brand will have to improve on its uniqueness and associations. The new associations as luxurious and customer friendly will recapture the lost customers. It will also involve identifying new customer segments in Asia and attract new customers. Market communication options Qantas will utilise integrated marketing to focus on areas that will help the brand enhance its offers to customers (Wheeler, 2003). The main aspects of the brand that the company will focus on are; quality, affordable and efficient airline services. To ensure that the brand awareness is enhanced and all negative perceptions eliminated, Qantas will utilise elements of integrated marketing communication. This will be through a creation of all in one marketing platform. Advertising Through advertising, it is possible to communicate a message that will identify the brand. Qantas will use television, internet, magazines, newspapers and direct mail (Yoo, Donthu & Lee, 2000). The company will put more emphasis on social media platforms which includes the company Facebook profile, blogs and twitter. Social media have the capability to make marketing to go viral (Burton & Soboleva, 2011). This is through sharing based on electronic word of mouth. Aviation magazines provide a great avenue which the company will utilise. The magazines offer the aviation enthusiasts on latest news on the industry. Personal selling Qantas will utilise personal selling through interactive website and telephone calls to their loyal customers. Personal selling is a great way in which the company will be able to enhance their relationship with the customers (Simoes & Dibb, 2001). The company wants the consumers to feel as part of Qantas which will be enhanced through personal selling. Public relations This is a method that will help Qantas to promote their brand image. The method involves use of press release, sponsorships and publicity (Rust, Zeithaml & Lemon, 2004). The method will supplement Qantas sales efforts. Qantas internal PR department will be equipped as part of a promotional strategy (Keller, Parameswaran & Jacob, 2011). Hiring of external PR will also be done. Sales promotions Qantas will use mail in offers and strengthen the frequent flyer program. This is aimed at enhancing the customer loyalty. Direct response advertising This involves call for action during popular TV shows. The consumer will be given a specific bonus by calling a specific number displayed on screen (Keller, Parameswaran & Jacob, 2011). Internet will also be used for direct response advertising due to its own cost and ease of access. Managing brands over geographic boundaries and market segments This will involve making Qantas brand more relevant and appealing to the customers. Jetstar will have to address its market segments in each region to make marketing to be more effective. The Asian market is still underexploited hence need for more efforts on marketing. The outcome will be reduced costs and enhanced profits. Global brand strategy Qantas have been able to create global based brand equity. This is through a good reputation on safety and reliability that have improved their brand image. Qantas low cost carriers are among the most preferred in the market due to quality services (Schofield, 2011). Qantas will still continue building their brand image globally and cultivating resonance. Global Brand Positioning When entering new markets in Asia, Qantas will have to enhance awareness and establish key points of parity. There are other low cost carriers in the market who also offer efficient services (Schofield, 2011). Standardization and Customization This will involve coming up with pricing strategy, product strategy and communication strategies. Pricing strategy Qantas have been engaging in both premium and low cost pricing mechanisms. The new market plan will focus on low cost carriers. Despite the main focus being on the low cost segment, Qantas will have to maintain quality in Jetstar services. This is due to fact that high quality services will improve the customers’ perceptions. Jetstar will improve their service quality while still maintaining low cost in the sector. The price of the airline premium segment will also be reduced. Product/service Airline customers are attracted to high quality service and well maintained aircrafts. Qantas will have to increase their number of planes in both regular flights and low cost carriers. This move will ensure that the company have adequate number of planes to serve the market. The airline will invest in quality maintenance and ensure that the services offered inflight are above the competitors. With the company access to world class maintenance services, well-furnished lounges and luxurious planes, Qantas will be able to offer customers great personal experience that will enhance brand equity. Conclusion For an established brand, managing the brand in a new market environment requires high level of creativity and brand understanding. This marketing plan have been able to use creativity and deep understanding of Qantas to come up with a plan that will enable the company develop its brand in new Asian market. Qantas brand identity, positioning, brand elements and marketing programs which are well developed have been combined to come up with a brand that will resonate with the new Asian market. This is a brand management plan that will give Qantas airline sustainable growth. References Burton, S., & Soboleva, A. (2011). Interactive or reactive? Marketing with Twitter. Journal of Consumer Marketing, 28(7), 491-499. Byrnes, P. (2000). Qantas by George!: The Remarkable Story of George Roberts. Watermark. Gollan, P. (2014). Flying kangaroo fights for life. Public Administration Today, 37(1), 20. Green, J. (2013). Virgin Australia takes aim at Qantas. Airways (Sandpoint, Idaho), 19(12). Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers. Keller, K. L., Apéria, T., & Georgson, M. (2008). Strategic brand management: A European perspective. Pearson Education. Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India. Neilson, A. (2013). Focus: Qantas: The Shutdown of a National Icon. International Union Rights, 20(1), 10-11. Park, J. W. (2007). Passenger perceptions of service quality: Korean and Australian case studies. Journal of Air Transport Management, 13(4), 238-242. Qantas, 2015, About us, Retrieved 7th May 2015, http://www.qantas.com.au/travel/airlines/home/in/en Rust, R. T., Zeithaml, V. A., & Lemon, K. N. (2004). Customer-centered brand management. Harvard business review, 82(9), 110-120. Sarina, T., & Lansbury, R. D. (2013). Flying high and low? Strategic choice and employment relations in Qantas and Jetstar. Asia Pacific Journal of Human Resources, 51(4), 437- 453. Sengupta, S. (2005). Brand positioning: Strategies for competitive advantage. Tata McGraw-Hill Education. Schofield, A. (2011). Asian ambitions: Qantas targets new markets with startup airlines and record order. Aviation Week & Space Technology, 173(30). Simoes, C., & Dibb, S. (2001). Rethinking the brand concept: new brand orientation. Corporate Communications: An International Journal, 6(4), 217-224. Wheeler, A. (2003). Designing brand identity: a complete guide to creating, building, and maintaining strong brands. John Wiley & Sons. Wood, L. (2000). Brands and brand equity: definition and management. Management decision, 38(9), 662-669. Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the academy of marketing science, 28(2), 195-211. Wensveen, J. G. (2012). Air transportation: a management perspective. Ashgate Publishing, Ltd. Appendix Fig.1, Qantas online presence Fig.3 Fig.4, Jetstar presence. Fig.4, Jetstar routes . Read More