Marketing Plan for Qantas - Case Study Example

Marketing and Survey Research Name: Tutor: Course: Date: Table of Contents Table of Contents 2 1.0 Research Strategy for Qantas Case: Part A 3 1.1 Management Decision Problem (MDP) 3 1.2 Marketing Research Problem (MRP) 3 1.3 Research Objectives 3 1.4 Rationale 4 1.5 Research design 4 1.5.1 Survey 5 1.5.2 Case study of Qantas 5 1.6 Data collection Instrument 6 1.6.1 Questionnaire 6 1.6.2 Focus group moderation guide 7 1.7 Sampling plans, procedures and data analysis techniques 7 1.8 Limitations 8 2.0 Qantas case: Part B 8 2.1 Independent sample t-test 8 2.2 Analysis of variance (ANOVA): One way ANOVA 9 2.3 Bivariate correlation coefficient matrix 10 Reference list 12 1.0 Research Strategy for Qantas Case: Part A 1.1 Management Decision Problem (MDP) Qantas market share in international travel has been on a decline. The airline commands about 65% of the market share in Australia. The problems are viability of routes, effectiveness of task planning and performance of aircrafts. The decisions made were consolidation of maintenance tasks, retiring old aircrafts and closing down routes known to make losses. The other problem involved diversification into the international market. This move faces challenges of gaining a market share in a competitive environment with well performing airlines. The strategic decision is diversifying into a new market by making entry strategies (Bentley, 2009). The idea was to end the joint partnership with British Airways and begin a new partnership with Emirates. The decision is likely to affect employees of both companies and the perception of customers, suppliers and competitors. 1.2 Marketing Research Problem (MRP) Qantas has a well performing domestic market. However, there is need to understand the profitability of its international target market through an effective entry strategy. This will involve establishing the most viable strategy to gain most of the international customers hence increasing its profitability. This also entails evaluating the long haul travel as a strategy to provide customer convenience and reduced time of reaching destinations. The attempt is to obtain information from Qantas international passengers on the quality of services and re-purchase intentions or referrals. Positive results obtained will be essential in product development that will increase Qantas international flight bookings and profitability. Information required is on customer perceptions on the brand (Hayes, 2008); re-purchase decisions and quality of services which are necessary for customer retention and referrals. 1.3 Research Objectives 1. To establish the effect of change in partnership between British Airways to Emirates on Profitability of Qantas international in the next one year. 2. To evaluate the quality of services and new offerings by Qantas international in gaining and maintaining a market share in the international flight market 3. To determine the impact of joint partnership between Qantas international and Emirates on customer retention and re-purchase decisions 1.4 Rationale Marketing Research Problem (MRP) has provided the necessary information on Qantas international which will be important in solving the management decision making (MDP). The management problem has been low profitability in international travel which has been attributed to conditions of aircraft, quality of services and process inefficiencies. The impact of engaging in joint venture or partnership is likely to affect on employee relationships and cross-cultures (Bruner, 2009). 1.5 Research design The study of Qantas international airlines will use mixed approach which is both qualitative and quantitative. The quantitative aspect is descriptive and based on a deductive approach. This will help in establishing the number of bookings, profitability and the level of market share. On the other hand, qualitative approach which is essentially inductive will obtain information about the perception of customers to the new joint partnerships; new offerings and whether the quality of services will lead into re-purchase decisions or referrals. In the mixed approach (Miles &Huberman, 2002), the independent variables will be; joint partnership, new offerings, introduction of new aircrafts and re-organization of maintenance tasks. This will be evaluated in terms of how its influences on profitability and market share of Qantas international. The conceptual framework will be as shown below. The above variables are guided by customer purchase decisions which are important in creating further purchases (bookings), testimonials and referrals (Roe, 2004). 1.5.1 Survey The survey on Qantas International will help to understand the fact that the company has 65 percent of domestic market and declining sales in the international portfolio. This is positivist approach as respondents are objects to be measured (Malhotra et al. 2006). Surveys utilize questionnaires as the data collection instrument. A survey on 50 international passengers aged between 25 and 55 years travelling from Australian cities to other cities around the world is required to obtain the views regarding this travel. The pre-tax profit of the domestic flight is $218 million which is awesome compared to the loss-making international segment. The condition of aircrafts (servicescapes) and attention from staff is likely impact on the number of bookings and repeat flight bookings. This will also affect the profitability of the airline. For a questionnaire seeking to know the age, sex, income, occupation and nature of visit, it will be interesting to establish the figures. This will also establish the profitability and the size of market share. Descriptive statistical analysis will be important in this case to bring out the demographics of the survey (Bernard, 2012). Considering the seven variables in the Qantas case, it will be possible to bring out the statistics on travelers and the subsequent profitability to the company. These are exact figures describing the phenomena. Questionnaires will be administered to the respondents (passengers) online through surveymonkey.com where they will be requested through e-mail to respond to the questions. Surveymonkey.com has an advantage of automatically analyzing the data. 1.5.2 Case study of Qantas This qualitative measure is meant to obtain views on the state of customer service offered by Qantas airlines. This will be in the form of focus groups and on-line interviews. This uses the interpretivist approach where human participants require interaction and rapport. Since customers are busy and may not have time to respond to interviews and focus groups, students on campus will respond to the two data collection tools. Three focus groups of six members each will be used while 10 people will contribute to the on-line interview of about 30 minutes each. The problem discussed is the declining sales of Qantas international by seeking to understand passenger experience on the airline. The techniques are interviews and focus groups. The results are low brand quality, low quality of in-flight meals and responsive staff (Beardon & Netemeyer, 1993). The recommendations are more on improving the physical environment of the airline, training staff to advance superior service, developing an economy segment with lower prices. A moderator conducting the interviews or focus groups leads an interactive exercise. The techniques especially focus groups will bring out unexpected findings such as re-purchase intentions, experience with crew, and testimonials. The group is homogenous in a relaxed and informal atmosphere. The total duration will be 2 hours with recordings done on video and audio. Focus groups are essential because they enhance probing and in-depth exploration of the subject (Vriens & Ter Hofstede, 2000). Re-purchase and referrals are discussed in detail. 1.6 Data collection Instrument The structured questionnaires and focus group moderator guide will be used in the Qantas study. The sample questions in the questionnaire will cover five questions for passengers. 1.6.1 Questionnaire 1. What is your age? Below 18 years 19-35 years 36-55 years Over 56 years 2. Nature of travel? Student Business Tourist Others 3. Income level? less than $1000 pm $1001-5000pm Over $5001 4. Why do you like Qantas international airlines? Hospitable staff Quality in-flight meals Safe aircrafts Reliable schedules 5. Do you agree on the recent joint partnership between Qantas and Emirates? Strongly Disagree Agree Neutral Agree Strongly Agree 1.6.2 Focus group moderation guide 1. Do you like Qantas international airline services? If yes why? if no explain 2. Please provide your individual experience on your interaction with staff 3. Would you consider flying Qantas international in your next flight? 4. Will you recommend Qantas international to your friends, colleagues and family members? 5. Are you satisfied with the quality of services and the physical environment provided by the airline? 1.7 Sampling plans, procedures and data analysis techniques The respondents and participants to the survey and focus groups will be obtained through various appropriate methods. The study will approach the airlines that may be willing to provide details of its recent passengers. This will form our sampling frame. The target will be a population of 100 travelers to various destinations from Australia. The respondents are then sent e-mails to respond to questions on surveymonkey.com within two weeks (Wilson et al. 2010). They will be required to state if they are willing to respond or not. Systematic sampling will be used to obtain a sample of 50 from the 100 passengers. Those respondents appearing on even numbers will be chosen to form the representative sample. Regular checks will be done to ensure as many respondents have contributed to meet the threshold of 80 percent return rate. Descriptive statistics like mean, median, standard deviation and variance will be used to analyze the data obtained. Questionnaires will be administered through surveymonkey.com where respondents will be required to login using the username and password provided and attempt all the questions. The questionnaires will be closed after the lapse of two weeks. For the focus groups, snow balling will be used to get the students who will form the sample. Three students will be approached who will bring in more colleagues and friends to the discussion. When number approaches 15 they will be divided into three focus groups (Patton, 2002). Each group will have a moderator. The moderator will ask questions and connect responses from the participants. During the discussion, the moderator will note the facial expression of participants and the tone of speech. These will be important in defining their satisfaction levels (McMurray, Pace & Scott, 2004). The responses will be captured in observation schedules and notes. Correlation or inferential measures such as chi-square and Pearson product moment correlations will be appropriate to analyze this kind of data set. 1.8 Limitations 1. Obtaining and getting real passengers to participate in the focus group is literally difficult hence the need to use students as alternatives 2. Respondents may not be able to respond at all or respond to all the questions within a record time of two weeks. They will be followed with reminder e-mails in case they would not have responded 3. The cost of handling a real questionnaire session at the airport is high as this requires interrupting passenger schedules. This will be substituted with surveymonkey.com 2.0 Qantas case: Part B 2.1 Independent sample t-test The test determines whether there is any significant statistical difference between domestic and international students. H0: µ1= µ2; There is no statistically significant difference between domestic and international students H1: µ1≠µ2; There is statistically significant difference between domestic and international students Given the confidence level (p=0.05) and considering the t-test results below; Parametric tests Q. How many hours do you spent on Facebook per day Levene’s Test for Equality of variances t-test for Equality Means F Sig. t df Sig. (2-tailed) Mean Difference Std. Error Difference 95% confidence interval of the difference Lower Upper Equal variances assumed 2.154 .215 1.152 446 .172 280.4231 243.85321 -221.452 78.43291 Equal variances not assumed 1.359 302.522 .142 280.4211 245.89521 -189.321 78.75031 From the statistics above it can be learned that µ1=µ2; therefore p>0.05, (significance 0.172>0.05. H0 applies. Hence, there is no statistically significant difference between domestic and international students on the hours spent on Facebook per day. 2.2 Analysis of variance (ANOVA): One way ANOVA Testing to establish the effect of Years started degree (X) on performance (Y) H0: µ1= µ2= µ3; There is no statistically significant difference on students years started degree and performance H1: µ1≠µ2≠ µ3; There is statistically significant difference on students years started degree and performance The groups are; Less than 1 year, 2-3 years and over 4 years. Performance Sum of Squares df Mean Square F Sig. Between Groups 165.302 2 49.034 14.903 .000 Within Groups 65.410 24 3.541 Total 230.712 26 In this study of Chinese students in University of Canberra, the dependent variable is performance and the independent variable is the year started degree. The null hypothesis is rejected since the significance .000 is less than .05 hence, the means are not equal. The interpretation is that the mean ‘years started degree’ are different. This indicates that at least one pair of means is statistically different. The means for all the combinations are statistically different, indicating the different ‘years started degree’ will affect performance of Chinese students in the University of Canberra. This shows that one-way ANOVA has can determine statistical significance for the YEARS STARTED DEGREE. 2.3 Bivariate correlation coefficient matrix This comparison use non metric data and measures the direction and strength of association between two or more variables. It is merely association and not a proof of causality (Burns, 2000). For example, a positive correlation is established where increased number of hours on Facebook results in increased reality friendship. A negative correlation is found when increased number of hours on Facebook reduces productivity at work. The correlation varies from -1 to +1. Coefficients like 0.1 show weak association while 0.5 shows a strong association. For example, in the case where a test of satisfaction on website usage is taken, it can be established several deductions. Given the level of significance as p Read More