Business Studies Qantas Case Study
2. Situational Analysis
Swot Analysis of Qantas
• Extensive network / part of the One world alliance
• Excellent airport locations and facilities
• Globally recognised brand name and logo
• Excellent safety record – probably the best in the world (not one death on a Qantas flight)
• Operational excellence: Qantas has twice won the Cumberbatch trophy for engineering excellence.
• Speculation that British airways will quit its $1.3 billion stake in Qantas.
• Higher labour and other operating costs than its competitors
• An ongoing disputes between Qantas management ...view middle of the document...
Qantas’s other marketing objectives include the following:
• Increased sales of passenger tickets
• Increased market share in the airline industry
• Growth / new routes, and corporate size as there are cost advantages in being bigger
• Decreased operating costs, especially labour costs.
4. Marketing Strategies
Market Segmentation and Selection of the Target Market
Market segmentation is the process is the process of dividing up the total range of potential or current into smaller discrete groups to facilitate analysis and planning. This enables Qantas to:
• Better meet the needs of all its customers, to compete more effectively and to attain financial goals more readily
• Better tune the marketing mix to particular groups in the market, so the product can be refined, prices set, place of sale determined and promotion better focused for each market segment. EG: Economy, Business and First Class travellers.
Qantas’s market segmentation is complex because each segment has distinctive and different needs and expectations, such as the desire for stopovers, the ability to pay fare levels and expectations in terms of in-flight service and comfort.
Qantas mainly uses behavioural segmentation to select its target markets. Buyers are distinguished according to trip purpose, for example: business and leisure / non-business travellers.
However, there are many reasons for travelling either business or leisure.
The business segment is broken down even further into routine business (normal point to point business travel), conferences / seminars and emergency business which reflects passenger needs and benefits sought.
The leisure segment is broken down into holiday (inclusive of tour segment, multi-destination touring segment and weekender segment) and visiting friends a relatives.
Formulating the Marketing Mix: The 4 P’s
As the airline industry has become much more competitive, airlines like Qantas have focussed on product planning. Qantas designs products to attract and hold customers from a particular market segment and to do so profitably.
The generic products of Qantas are the provisions of a seat (passenger) or a container (freight).
The passenger side of the product:
• Scheduling’s basic features: time of departure or arrival, number of stops or direct flights and the aircraft type. In November 2000 announced that it would spend $4.6 billion on new planes over a 10 year period including the purchase of Airbus 380
Qantas enhances its basic product by having the best connecting airline on a preferred basis with its One World alliance.
• Comfort based features include lounges, in-flight meals and drinks, in-flight entertainment and seat width.
A $300million Total Entertainment in-flight system is currently being installed on the Qantas international fleet. On 14th February 2002,...