The Market Analysis of Qantas Airlines - Case Study Example

Marketing Audit xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Table of Contents Table of Contents 1 1.0 Qantas airways limited 1 2.0 The market analysis of Qantas airlines 2 2.1 The services 3 2.2 Promotion 4 2.3 Price 4 2.4 The place 5 2.5People 6 2.6 Physical evidence 7 4.0 References 11 1.0 Qantas airways limited This company was established in year 1920. It has recently grown tremendously to be a leading Australia’s airline. It has also expanded its operations internationally to counter competition of other leading international airlines. It boosts itself as a preferred airline in long distance as well as Australia’s strongest selling brand. It has continuously excelled in safety, engineering and maintenance, operational reliability and customer service. The main business of Qantas airways limited is transportation of customers and goods to various destinations of the world. It has two airline brands, Jestar and Qantas. It also specializes in subsidiary operations like operating other airlines. It operates domestically, regionally and internationally as (QANTAS 2008) reports. 2.0 The market analysis of Qantas airlines Marketing is a management process that is responsible for anticipating, identifying and satisfying customer needs and requirements as (CIM 2009) defines. The Company has a mission to achieve the purpose of becoming the best airways in the world. While starting with the current issues of restoring its reputation and confronting crisis, the company has vigorous marketing strategies to operationally sustain itself and plan for the future. The company has positioned itself in five key areas to effectively serve its customers to the maximum, safety to its customers, matching with the right route in order to serve more customers, providing the best customer services, having effective and efficient operations and complement reputable brands (Jestar and Qantas). The company has used marketing mix to control and influence the brands sales as well as the market share to make it the preferred mode of transport among different range of customers (commercial, official, private and missioner customers). The persistent issue that Qantas management must keep up with is how it combines these marketing concepts and strategies to maximize sales, expand and acquire market share and overall make good returns to its shareholders. This will definitely depend on the response of the market share and sales to the past expenditures on these marketing variables. Experiences in the past will also play a significant role in how the concepts will be portrayed as (QANTAS 2011) outlines. The past data on market response and consumer as (Tellis 2006) explains, will enlighten the understanding of how to use the marketing mix and concepts to improve sales and overall performance. Marketing and especially intenational marketing, posses a greate challenge for both private and public firms. (Rainisto 2003) asserts that the suitability of marketing places should be considered carefully to attain efficiency in service delivery by the company. Designing a service to satisfy the needs and requirements of the target customers (market). Qantas will achieve this if the expectations and needs of the customers and visitors will be met edequatly. Qantas can pride itself with the strategic marketing strategies it has, long term and systematic marketing meant to develop and narture the probable atributes of the target areas. Airline companies are in competition with each other and can make them loose vitality to survive in severe marketing when situational selling is not mastered as (ERAS 2011) indicates. 2.1 The services This refers to the Qantas portfolio of services it offers for sale to its customers. The ability of a company to offer specialized and differentiated services will position itself from the others especially with the evolving technology. The newness of the services and differentiation from their competitors has helped Qantas to have superiority to its rivals in respect of the quality of their services. This is boosting the sales as many people from different parts of the world prefer to travel with it. The firm’s services provide value for the customer’s money. Qantas has a mechanism to check and regulate the value of the services and products of the firm by developing customized services. Through this the company is able to provide value for money services which customers have expressed satisfaction with. As some customers go for value and not quality, Qantas have different classes of its brands offering different prices, this is diversification and enables it to accommodate all types of customers. Qantas also have incorporated modern technology to help it reach to all potential customers. 2.2 Promotion This is the way Qantas communicates to its potential customers of what it offers and what it does. Promotion involves detailing, advertising, branding, public relations, corporate identity, managing sales, exhibitions and informative selling using displays and features. Qantas have been able to reach to potential customers in different places though advertising. It uses internet advertising starting with Qantas website (www.qantas.au). As (CIM 2009) recommends Qantas always provides a dialogue with its customers when carrying out its promotions. By promotions Qantas does not only sell itself to customers but also communicate to its internal stakeholders to inform them of the attributes and value of its services and products. In turn this aids Qantas employees to be acknowledgeable and share know-how with their customers. 2.3 Price This is the worth that potential customers are prepared to pay for the service. It is the consideration for the services offered. The company has an internal management committee to regulate and update the prices charged by the company according to the economic and market analysis. According to (Rainisto 2003) to keep afloat with the market and at the same time ensure that the company is operating profitably it is very important to charge prices that reflect the real economic and market conditions on hand. This component of marketing is very important as customers judge the price before making a decision on which airline to travel with. Offering discounts, temporally price cuts and entering in to deals with customers will boost the business as Qantas have done. Customers prefer Qantas because of its competitive prices, value for money services and extra services/details. This is not found in other airline companies. As (Borden 2008) recommends, Qantas have used price to position itself in the market by offering the best quality. As way of retaining existing customers Qantas offers several ranges of discounts and commissions to frequent customers. On the other hand Customers bank on Qantas to fulfill their travel aspirations as well. The prices also reflect the economic conditions experienced. International customers are more satisfied according to the feedback the company receives and analysis. Being the place where customers buy the product/service Qantas have uniquely put appropriateness as well as convenience for customers to its fleets. Customers feel valued and appreciated. 2.4 The place This is the delivery of the services to the customers. Qantas have in the recent years started traveling to new routes to deliver and get new customers. This is distribution which is helping it to explore new strength as far as opportunities are concerned. It makes sure that their fleets of brands are always available to the destinations destined and have enough space for cargos as (Thenmozhi 2011) requires. The availability of services at customers request adds to its rich culture of customer service. Service employees and customers are involved in an interactive conversations meant to improve customer – employee relations, this explains why Qantas is the leading Australia’s local airways and a preferred travel agent worlwide. Qantas customer service culture has been lauded as the best in Australia. The display of products and services to customers at the highest degree of integrity and competence in a respectful way is one of the uniqueness of Qantas airways. 2.5People In (Continuum 2011) people are all persons directly or indirectly involved in the service encounter/ delivery like the companys employees, customers and other personnel. The insepalability of service consumer and the service production means that the service has to be produced and consumed simulteneously. This therefore will depend on the employees ability to deliver the services. They must create a good image of the company and as well provide better services than the competitors. The qantas employees and more specifically the air hostess and carbin crew are in real time service production and to make the service special they are part of the service and live through the service delivery untill destination. Qantas airways have a well employees management human resouce that manage service employees, this ensurs that their behaviour and attitude are beneficial to delivery of quality service to their customers. This in result makes the employees to be variable in service delivery performance leading to quality variables (the service performance is heterogenic). To avoid difficulties in the service delivery qantas have cteated homogeneity in service. This is becouse the delivery of the service occurs during interaction between customers and employees and the attitude and behaviour can considerably affect the customers perception of the service. This has not only improved customer satisfaction but also purchase intentions. This has improved the customers perception as evidenced by the feedback from the customers. 2.6 Physical evidence This is the enviroment in which the service is being assembled and offered, customer and service provider interact in this enviroment together with the physical commodities that facilitate the service performance and communacation as (Hoek 2003) describes. To improve the service scape of its fleets, Qantas have scented them accordingly, the layout is one of the best and decorated them in a manner that is very appealing to customers. The company has provided internet access to its fleets to enable their customers to access internet and process information. This is a unique service especially to the commercial customers. This servicescape have enabled communacation about the service thereby making the customers to have positive experience. As the customers look for any material cues to aid them comprehend the scenery of service experience, Qantas have provided serene, well spaced and atractive interior to boost the customers experience. This have proved in service dominate making it tangible. This as well has facilitated the fuctions of the employees and customers clearly bringing out what the company stands for as (Continuum 2011) recommends. 2.7 Process These are the mechanisms, flow of activities and procedures in which the service is provided like the operating systems and service delivery as defined by (Akroush 2011). It involves a sequence of activities and steps, combination of which constitute service process. To reduce the length of waiting time of its customers Qantas have extensively informed their customers the process of getting a service with the respective delivery times of those services. This prevents boredom to the customers and getting actious. The company have created and managed efective service processes which are fundamental to service delivery. Qantas has also introduced tickets and discounts specifically to be accupied by the seats not purchased, this prevents perishability of services as they cannot be stored. It has on demand approach which are more appealing to customers. Qantas has customised approach to customers expectations and needs, the contact employess are able to exercise flexibility in attending to the needs of the customers. The people, process and pysical evidence part of service marketing are in the control of the firm and contact employees. This means that qantas have a wide range of options concerning how to design and implement these three marketing strategies. It must design them in a way that its going to influence customers first perception to purchase a service, the level of satistaction and the decisions to purchase the service in future. Inline with this Qantas must develop their service providers to enhace service provision quality in order to acquire new customers and retain them. The servicesacape and service process must go hand in hand with the service providers. To encourage and motivate the service providers is very important. Employyees are motivared by their pay cheque and job security. As (Akroush 2011) advises Qantas has adopted this as one of its inclusive remuneration to its work force. Better working conditions constitute to psychological enthusiasm to work, these as well has been provided by Qantas. Its workforce feel confident. As airline companies compete to offer quality services, Qantas believe that dinamic service employees are part of quality service. It has focused on paradigm of service dominance bn investing in its work force, technology, policies on human resource and more so compensation to sustainably improve their attitude and behaviour. However to achieve business objective the marketing manager at Qantas must allocate the firms resources in all areas of marketing (product/service, process, pricing, promotion, place, pysical evidence and people). By this the company will enjoy high volume of sales and in return big profits. 3.0 Recommendations It is good for Qantas management to understand that place marketing strategies doesn’t work well to rapidly changing markets and also in well highly competitive situations. By this the management will be able to design its distribution marketing to probable and realistic places of achieving its aims. It must therefore develop a real marketing approach with new capabilities to survive in this competition. Going for places where potential and current citizens, investors, companies and visitors have needs will be crucial to expanding its market share and increasing earnings. Knowledge of the societal needs and preferences will overcome the challenge of backlash. This needs to be adopted by Qantas Company limited. Continuous development and lead time involvement will show results in the process long before the realization by other airline companies. One major tool for place marketing is the ability to center attention on the most critical; the branding facet within the area of marketing. There is a notable scarcity of genuine case involvement, and amazingly little effort that is of straight realistic purpose to the strategy makers attempting to endorse their city, country or region for tourism, internal investment, exports or customs, while this can be a very wise marketing strategy. Qantas Company can conjure up with these tourism and culture organizations to market its brands as well and improve its share in the market. There are some places in the globe that have not yet been utilized by the airline industry, can be an economical and plausible to venture in to. This calls for innovative marketing by the company. One of today’s burning issues in marketing is the destination marketing; Qantas must have much more detailed information in this area more so when evaluating the long term accomplishment in international destinations. The success of strategic marketing practices by Qantas will definitely increase value of the firm and attractiveness. Since marketing is naturally related to financial performance and sales, Qantas have to embrace international marketing as a business tool, which will bring clearly defined offering to defined customers. To achieve this Qantas has to blend methodology, research and outcomes in marketing giving rise to knowledge generation which is equally important as (Gummesson 2003) indicates. It has almost satisfied the local market and the next step should be to explore the international market of which have other reputable airline firms as well, therefore innovative ideas will be needed. By this Qantas will be able to reach more potential customers who it hasn’t been able to reach, the marketing manager should work closely with the service provider employees to analyze the customers reactions and satisfaction, then derive the necessary action mechanisms to improve it. The ability of Qantas management to identify the market forces, factors and develop the company’s brand will position it to optimize benefits from them as the chartered institute of marketing put it. 4.0 References Akroush, M 2011 jordan journal of business administration the 7Ps classification of the services marketing mix revisite: an empirical assessement of their generalisability, applicability and effect on performance Jordan. BORDEN, N 2008 Harvard business school the concept of the marketing mix Boston. CIM 2009 Chartered instituteof marketing the 7Ps of marketing and how they work Berkshare. Continuum 2011 continuum learning pte limited 7Ps of service marketing retrieved 5 29, 2013,from: http://freepdfdb.com/pdf/customer-services-7ps-of-services-continuum-learning-pte-151653.html ERAS 2011 economic regulation of airport sevices productivity commission inquiry in the economic regulation of airport services Sydney. Gummesson, E 2003 Stockholm University Practical value in of adequate market management theory Stockholm. Hoek, D 2003 Massey University and promotus advertising limited Ambush Marketing: A Critical Review and Some Practical Advic Auckland. QANTAS 2011 Qantas airways limited Building a stronger Qanta Sydney. QANTAS 2008 Qantas group Qantas 2008 annual report Canberra. Rainisto, S 2003 Helsinki University of Technology, Institute of Strategy and International Business success factors of place marketing:a study of place marketing practices in northern europe and the united states Helsinki. TELLIS, G 2006 University of Southern California modeling marketing mix New Yolk. Thenmozhi, M 2011 Indian Institute of Technology evolution of management theory Madras Chennai. Read More