Download Qantas Marketing

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project

Document related concepts

Brand equity wikipedia , lookup

Bayesian inference in marketing wikipedia , lookup

Brand loyalty wikipedia , lookup

Grey market wikipedia , lookup

Pricing wikipedia , lookup

Ambush marketing wikipedia , lookup

Consumer behaviour wikipedia , lookup

First-mover advantage wikipedia , lookup

Social media marketing wikipedia , lookup

Marketing research wikipedia , lookup

Multi-level marketing wikipedia , lookup

Market analysis wikipedia , lookup

Food marketing wikipedia , lookup

Perfect competition wikipedia , lookup

Price discrimination wikipedia , lookup

Marketing communications wikipedia , lookup

Dumping (pricing policy) wikipedia , lookup

Retail wikipedia , lookup

Guerrilla marketing wikipedia , lookup

Digital marketing wikipedia , lookup

Viral marketing wikipedia , lookup

Service parts pricing wikipedia , lookup

Neuromarketing wikipedia , lookup

Marketing plan wikipedia , lookup

Direct marketing wikipedia , lookup

Market segmentation wikipedia , lookup

Youth marketing wikipedia , lookup

Market penetration wikipedia , lookup

Marketing wikipedia , lookup

Marketing mix modeling wikipedia , lookup

Integrated marketing communications wikipedia , lookup

Street marketing wikipedia , lookup

Target audience wikipedia , lookup

Pricing strategies wikipedia , lookup

Marketing channel wikipedia , lookup

Segmenting-targeting-positioning wikipedia , lookup

Green marketing wikipedia , lookup

Multicultural marketing wikipedia , lookup

Product planning wikipedia , lookup

Advertising campaign wikipedia , lookup

Target market wikipedia , lookup

Sensory branding wikipedia , lookup

Global marketing wikipedia , lookup

Marketing strategy wikipedia , lookup

Transcript
MARKETING
CASE STUDY
WWW.MATTHEWKILLEEN.COM
17/03/2014
1
IMPORTANT NOTICE: This resource was created for presentation to
peers in 03/2014 and has not been edited for a wider audience. Some
elements are liable to be out of date and inaccurate.
One should seek to keep up to date with the latest developments,
consider using the following sources:
• www.ausbt.com.au
• www.asx.com.au
• www.qantasnewsroom.com.au
• IBISWorld and Factiva, which are accessible at
ezproxy.sl.nsw.gov.au/login with a State Library of NSW membership
• Other news outlets, including the SMH and ABC
Thanks for using this resource.
Spelling mistake? Want something updated? Fundamentally disagree
with me about something of no importance? Let me know here:
www.matthewkilleen.com/contact/
17/03/2014
2
PURPOSE OF THE CASE STUDY
 In the trials and the external HSC exam, at least one case
study is needed for question 26 or 27 (20 marks).
 The range of questions is wide, but generally focus on
Influences and Strategies. Examples include:
 Why are ethical behaviour and government regulation
important in marketing?
 Assess strategies that management may use to respond to
influences on marketing.
 How does an understanding of the influences on marketing
contribute to business success?
* Questions are often unpredictable and can at times be very specific
17/03/2014
3
SYLLABUS REQUIREMENTS
 Role of Marketing
 Strategic role of marketing
 Interdependence with other
functions
 Marketing Influences
 Factors influencing consumer
choice
 Consumer law
 Ethics
 Marketing Processes




Situational analysis
Market research & objectives
Identifying target markets
Developing, implementing,
monitoring & controlling
strategy
 Marketing Strategies
 Segmentation, differentiation &
positioning





Product
Price
Promotion
Places
People, Processes & Physical
Evidence
 E-Marketing
 Global Marketing
17/03/2014
4
SYLLABUS REQUIREMENTS
 The syllabus for marketing reads the following:
Students learn to investigate aspects of business using hypothetical situations and
actual business case studies to:
• evaluate the marketing strategies for a good or service
• analyse a marketing plan for a business
• explain how globalisation has affected marketing management
 The marking notes for the 2012 HSC question read:
In the best responses, candidates demonstrated comprehensive knowledge and
understanding relevant to the question, using relevant business case studies and
contemporary issues, terminology and concepts. These responses were sustained,
logical, cohesive and, although not required, often presented in the form of a
business report.
17/03/2014
5
ESSAY MARKING CRITERIA
Criteria
Marks
• Applies relevant case study/studies and contemporary
business issues
• Presents a sustained, logical and cohesive response
and communicates clearly using relevant business
terminology and concepts
17 – 20
• Uses relevant case study/studies and contemporary
business issues
• Presents a logical and cohesive response using
relevant terminology and concepts
13 – 16
• May make reference to case study/studies and
contemporary business issues
• Communicates using business terminology and
concepts
9 – 12
17/03/2014
6
A BRIEF INTRODUCTION TO QANTAS
 1920 : Qantas founded, making it the longest continually operating
airline in the world
 1947 : Federal Government purchases Qantas, it becomes
Australia’s national overseas carrier
 1992 : Qantas is privatised
 1999 : Qantas joins OneWorld
 2001 : September 11 and Ansett Collapse, Virgin Blue market
share catapults
 2004 : Qantas launches Jetstar
 2009 : GFC, swine flu, and falls in profit
17/03/2014
7
HISTORICAL PROFITS/SHARE PRICE
700
600
$mil / $cents
500
400
300
200
100
0
-100
-200
-300
Profit
Share Price
17/03/2014
8
QANTAS TODAY: BRANDS
17/03/2014
9
QANTAS TODAY: FLEET
 Qantas Domestic
 Airbus A330-200
 Boeing 767
 Boeing 737-800
 Qantas International
 Airbus A380
 Boeing 747
 Airbus A330-300
 Jetstar




Airbus A320
Airbus A321
Airbus A330-200
Boeing 787
 Qantas Link
 Bombardier Q400
17/03/2014
10
QANTAS TODAY: MARKET SHARE
International Market Share Others Domestic Market Share
5%
Qantas
23%
Others
51%
IBISWorld, Q4 2013 figures
Virgin
22%
Virgin
8%
SIA
7%
Air NZ
4%
REX
2%
Qantas
71%
Emirates
7%
17/03/2014
11
STRATEGIC ROLE OF MARKETING
 Prior to privatisation in 1995, Qantas marketing strategy was
vastly different from that required of a contemporary carrier.
 Today, it is through marketing that Qantas may enhance its
revenue streams and increase the market’s awareness of its
products. Through increases in market share, Qantas seeks longrun profit maximisation.
 The marketing strategy must be based upon a thorough analysis
of the ways and means of addressing target markets and
customers. The key decision upon which the entire marketing
strategy can stand or fall is the market segmentation: which
segments of the market are being targeted and how the marketing
mix and the good/service offering is to be positioned for each
segment.
17/03/2014
12
INTERDEPENDENCE OF MARKETING
 Marketing & Operations
 Both must be aware and in constant communication with regards to
product features and characteristics.
 It is the responsibility of operations to produce a product that meets the
consumer’s needs (including service, on time performance, safety.
comfort), and it is the role of marketing to inform operations of what
constitutes the needs of the customers.
 Marketing & Finance
 The finance function is responsible for providing marketing with the
information and funds needed for viable decision-making.
 Finance determines the means and capabilities of the marketing
department through the allocation of a budget.
 Marketing & Human Resources
 Marketing relies on the HR function to hire, train and develop employees
who work in the field of selling or otherwise promoting the business, in
order to successfully connect the business with its target market.
17/03/2014
13
INFLUENCES: CONSUMER CHOICE
 Psychological influences
 Motivation – when someone purchases a seat on a QF flight, they
expect more than the most basic transfer from one place to another.
QF plans its strategy to appeal to the emotional reactions of the
customer (affective engineering)
 Perceptions & attitudes – the customer perception of the Qantas
product can be influenced by the nature of promotion, pricing and in
flight experience. Qantas is traditionally perceived as a mid-range full
service airline that is distinctly Australian.
 Personality & self-image – The concept of ‘you are what you buy’ has
increased in importance in other industries, but is less prevalent in
Qantas
 Lifestyle – One’s tastes and preferences may see them always fly with
one airline over another
17/03/2014
14
INFLUENCES: CONSUMER CHOICE
 Sociocultural influences
 Qantas must be sensitive to the reigning aspects and
dimensions of culture: shared values, beliefs, religion, language,
laws, rituals, attitudes of mind, traditions, and customs.
 Qantas demonstrates adherence to these prevailing influences
through it’s willingness to provide specialist service for those
of different cultures through its in flight service (e.g. Halal
meals, different language announcements & safety warnings,
etc.)
 Economic influences
 With seat sales directly linked to discretionary income spent
on travel, encouraging target consumers to spend a greater
percentage of their discretionary income on travel is a target
of Qantas marketing.
17/03/2014
15
INFLUENCES: CONSUMER CHOICE
 Government influences
 The government influences consumer choice through their
policies, which may attract, deter, or prevent consumers from
flying with Qantas. Generally these are indirect (e.g. carbon tax,
GST)
 While not related to consumer choice, Qantas is an
exceptional case in terms of government influences due to its
unique status as Australia’s flag carrier – it is governed by the
Qantas Sale Act (1992). It’s provisions are as follows:
 Any single foreign investor is limited to a 25% stake in Qantas
 Foreign airlines can hold no more than 35% of Qantas shares in
total
 Total foreign ownership of Qantas is capped at 49%
17/03/2014
16
INFLUENCES: CONSUMER LAW
 Consumer law aims to achieve consumer protection, and prevent
unfavourable market outcomes by promoting effective competition. The
ACCC enforces laws in relation to fair competition, deceptive and
misleading conduct, price discrimination, and consumer guarantees.
 Contemporary Business Issue: Predatory Pricing (SMH, Dec 13)
 The ACCC continues to investigate the way Qantas has added extra
capacity on air routes as part of its strategy to maintain market share
 Companies are allowed to sell goods or services below cost price but
businesses with substantial market share must not "use this power for
the purpose of eliminating or substantially damaging a competitor”.
 The head of Qantas's domestic business, Lyell Strambi, had previously
warned he would add two planes for each one added by Virgin.
 Qantas is considering referring Virgin to the Anti-Dumping Commission
to highlight what is believes is predatory behaviour by its rival.
17/03/2014
17
INFLUENCES: ETHICS
 In it’s marketing, Qantas aims to present the brand in an ethical
manner, and through it’s system of checks and balances, rarely
does Qantas find itself in situations of negative publicity due to its
marketing.
 When Qantas is criticised for their ethics in marketing – it is
much less to do with truth, accuracy and good taste, so much as it
is engaging in fair competition.
 QF has been accused of misuse of market power: §46 of the ACL
prohibits corporations with a substantial degree of market power
from taking advantage of that power to damage other competitors,
prevent entry, or to deter another from engaging in competitive
conduct
 In the past (pre-2007), Qantas was fined millions by the ACCC after
colluding with other airlines to fix fuel charges
17/03/2014
18
PROCESSES: SWOT ANALYSIS
 Strengths
 Strong dominance in domestic market with 71% market share
 The multi-brand strategy has allowed the group to position Qantas as
‘best for business and premium travel’, while allowing Jetstar to offer
consistently low fares
 Additionally, QF retains 84% of the corporate travel market and was
the best major airline for OTP in 2013
 Alliances with Emirates and the OneWorld Group
 This allows Qantas to market flights that are operated by other
airlines – including MH, QR, LAN, CX
 One of the strongest customer loyalty schemes in the world, worth
up to $2.5 billion and with 9.8 million members
 Qantas points are Australia’s de facto second currency, and the QFF
scheme is effectively a closed economy over which the airline has
total control to print money and name the exchange rate.
 Iconic brand with strong global recognition and an excellent record
for safety
17/03/2014
19
PROCESSES: SWOT ANALYSIS
 Weaknesses
 Current profitability crisis due to competition and high costs
 Industrial relations disputes, strong and belligerent unions
 Highest labour cost ratio of the world top 10 airlines
 Any attempt at ‘rightsizing’ or offshoring criticised by unions,
media, government
 Complex fleet structure leads to increased costs
 Lack of parliamentary support to lift the Qantas Sale Act
 The Government largely supports the removal of limitations, but
the Greens and other parties have blocked moves in the Senate
 Neglect of Qantas’ international markets impacts net profit,
load factor & revenues have declined
17/03/2014
20
PROCESSES: SWOT ANALYSIS
 Opportunities
 ASEAN Open Skies Agreement to come into effect in 2015
 This will see increased liberalisation in Indonesia, Singapore, Malaysia,
Thailand, etc.
 Joint venture opportunities in Asia
 e.g. the proposed ultra premium Asian airline with MH ‘RedQ’
 Further expansion of the Frequent Flyer Program, with the Qantas
Cash and Acquire schemes
 Relationship with Tourism Australia
 QF is the major supporter of tourism in Australia – Qantas and Jetstar
passengers spent more than $28 billion as tourists in 2013.
 This relationship allows unique opportunities and benefits for Qantas
 New fleet – B787s, A380s and A330s are to increase fuel efficiency in
the future
17/03/2014
21
PROCESSES: SWOT ANALYSIS
 Threats
 Capacity oversupply exasperating weak underlying demand
 Virgin has increased capacity by over 40% since 2009, Qantas has
aimed to defend its position without growing at the same pace as
competitors
 Competition continues to increase with new entrants in the
international market
 Volatile fuel costs and falls in the Australian dollar
 Jetstar faces regulatory issues and competition in Asia
 LCCs have established strong market positions and continue to
grow. AirAsia, Tiger Airways Singapore, Scoot and Lion Air are
major competitors to Jetstar in the low-cost market.
17/03/2014
22
PROCESSES: PRODUCT LIFE CYCLE
Asian offshoots
Jetstar
Qantas
PROCESSES: RESEARCH & OBJECTIVES
 Market research at Qantas involves mostly primary data –
surveys, questionnaires, focus groups and interviews
 A major advantage that Qantas has in market research is its
direct access to customers – Qantas has historically not
spent a great deal on market research as much of its market
is already relatively communicative
 There is also the possibility of data-mining through the
Frequent flyer programme, a possibility that might bring in
significant revenue, but also raises ethical issues concerning
 Current Qantas objectives are found in Annual reports, and
in half-yearly results. They focus on the transformation of
Qantas to a more competitive and adaptable business.
17/03/2014
24
SEGMENTATION
 Segmentation across the airline market has offered the
following distinct advantages:
 It makes marketers think of the customer ahead of the product
 In researching customers' needs at a granular level, it brought a
better dialogue with customers
 It opened up new segments of markets that were previously
unexplored by the mass marketers looking to serve the
producer interest (e.g. QantasLink)
 It ushered in a new era of competition that did not always
mean that the largest producer would dominate the market
(because now smaller competitors could be dominant in a
number of segments)
17/03/2014
25
SEGMENTATION
 Psychographic segmentation
 Segmentation of the market by cultural attitude, lifestyle, and
psychological type. Psychographic variables may include activities,
interests, attitudes, preferences and values.
 Psychographic variables are very qualitative and subjective – it is simpler
for Qantas to target them, but more difficult for data to be gathered.
 Behavioural segmentation
 Segmentation on the basis of the customer’s attitudes towards,
relationship with, and usage of the product. This includes the following
types of segmentation:
 Brand loyalty segmentation – based upon the loyalty that consumers have for
one brand over another
 Usage level segmentation – clusters those groups who are light, medium, or
heavy users; business/tourism, FF status
 Benefit segmentation – segmentation of customers who prefer a similar type
of benefit. e.g. some prefer the newest innovations; yet others prefer
predictability and safety
17/03/2014
26
DIFFERENTIATION
 Qantas aims to achieve differentiation from competitors (namely
Virgin) in the following ways
 Higher quality and features appealing to business/corporate
consumers
 Superior customer service, including the whole process from preflight > in-flight > post-flight
 The expertise or culture of the organisation (trading off of
“Australianness”) and the reputation and strength of the brand as an
icon
 Frequency, safety and predictability making it the conservative choice
 Jetstar differentiates itself in the following ways
 Higher perceived value than its competitors
 Lower cost, the choice for tourists and leisure
17/03/2014
27
POSITIONING
100
90
Cathay
Pacific
80
Singapore
Airlines
Qantas
Seat Price
70
60
Emirates
50
Virgin Australia
40
Jetstar
30
Air Asia
20
Tiger Airways
10
0
0
10
20
30
40
50
Product Quality
60
70
80
17/03/2014
90
100
28
STRATEGIES: THE 4 P’S
• Product features
• Product benefits
• The brand
• Advertising
• Relationship
marketing
• Public relations
• Dynamic pricing for
Qantas
• Penetration pricing
for Jetstar
• Price promotions
Product
Price
Promotion
Place
• Direct & indirect
distribution
methods
17/03/2014
29
PRODUCT
 Any product must be considered in terms of features and benefits
 Features are product characteristics that deliver satisfaction, such as
capability, utility, functionality, etc.
 Benefits describe the value to the buyer of the product that they
would not have in the absence of the product – they are typically
intangible and measured by emotion
 As an airline, Qantas’ core feature is the fundamental movement
of the passenger from one place to another. Customers choose
Qantas for the benefits much more than this simple feature.
 In considering Product features & benefits, we must look at




The core product – the aircraft and seats
Supplementary product – food, drinks, connectivity, etc.
Loyalty offerings – lounges, QFF
The brand
17/03/2014
30
PRODUCT – THE AIRCRAFT
 Qantas operates 11 aircraft types across its three brands, which
reduces the potential for economies of scale and increased
efficiency. In light of this a major fleet overhaul is under way to
rationalise the fleet to far fewer aircraft types.
 Average fleet age of 7.8 years, which is relatively average (Virgin
Australia: 4.5 years; Singapore Airlines: 7.4 years; Emirates: 6.3
years)
31
PRODUCT – SEATS
PRODUCT – SEATS
SUPPLEMENTARY PRODUCTS
 The two primary supplementary products for Qantas are in-flight
entertainment and meals.
 Both of these are included in the fare on Qantas flights, but are
generators of ancillary revenue for Jetstar
 Qantas is attempting innovation in in-flight entertainment by offering
passengers in all classes on B717 and B767 flights iPads to use for the
duration of the flight, with access to films and TV programmes
PRODUCT - LOYALTY
 Qantas has the largest amount of airport lounges in Australia,
with 25 domestic lounges, and 20 international lounges
 The QFF scheme has five tiers – Bronze, Silver, Gold, Platinum,
and Platinum One. With each comes unique benefits – such as
extra baggage allowances in Silver, worldwide lounge access with
Gold, and upgrades where possible for Platinum
 The QFF scheme goes beyond merely flying, with Qantas
partnering with Woolworths, Optus, and many financial
institutions
 Qantas is continually extending its loyalty programme, with the
Qantas Cash scheme being introduced late 2013, and the Acquire
scheme forthcoming
17/03/2014
35
PRODUCT - THE BRAND
 The relationship between consumer and brand is often emotional rather
than rational. The brand is often something that lives as a perception in the
mind of the beholder. Branding facilitates memory recall, thus contributing to
preferred selection and improving customer loyalty.
 In the past, Qantas has largely traded off its unique status as a uniquely
Australian airline – with the slogan of ‘The Spirit of Australia’ and the iconic
I Still Call Australia Home campaign.
 However, recent debacles (e.g. the 2011 grounding, union conflicts) and the
increasingly competitive market have forced Qantas to realign its brand.This
included
 The ‘You’re the reason we fly” campaign
 The new uniform
 The Emirates alliance
 The brand still enjoys much public esteem and has a somewhat mythical or
legendary status, some analysts suggest that the decline and revival of Qantas
will contribute to the mythology of the brand.
17/03/2014
36
PRICE
 Pricing strategies for Qantas are best described as dynamic
pricing. This primarily involves analysing market factors,
including supply, demand, and price elasticity, in order to set
the price at the highest price which consumers will pay given
the market situation.
 In many ways, this is an extension of the market-based
pricing method, but it also involves some elements of
competition-based pricing.
 Jetstar utilises penetration pricing, but primarily as parts of
sales promotions rather than ongoing penetration
17/03/2014
37
PRICE – SYDNEY : MELBOURNE
Fare
Price
Conditions
Economy – Online fare Off peak
$29
No meals, baggage, IFE, no change
or cancel, early morning or late
night
Economy – Online fare Peak
$75 $105
No meals, baggage, IFE, no change
or cancel
Economy – Max
$299
Fully refundable, no IFE
Fare
Price
Conditions
Economy – Online fare Off Peak
$89
No change or cancel
Economy – Online fare Peak
$145
No change or cancel
Economy – Flexible
$305
Rebook free, but no cancel
Economy – Fully Flexible
$556
Fully refundable
Business – Fully Flexible Off Peak
$499
Fully refundable
Business – Fully Flexible Peak
$685
Fully refundable
17/03/2014
38
PROMOTION - ADVERTISING
 Qantas has historically spent millions on iconic advertising
campaigns – the most significant campaign being the 2004
‘I still call Australia Home’ ad.
 The latest advertisement of this nature is the You’re the
Reason We Fly campaign in 2013, which was aimed at
repositioning the brand beyond it’s Australian roots
– www.bit.ly/1fM2Ul1 (1:30)
 The proliferation of new media channels, together with the
rise of the internet, has made large scale advertising less
effective. Qantas largely focuses on other types of
promotion.
17/03/2014
39
PROMOTION - PUBLIC RELATIONS
 Qantas promotion today is much more granular and targeted at
promoting the product rather than advertising the brand.
 Public relations
 While Qantas is largely a victim of negative PR, Qantas maintains the
following systems as part of its PR strategy:
 Anticipating, analysing and interpreting public opinion, attitudes and
issues that might impact the future strategy of Qantas, and
implementing strategies to influence or change these attitudes and
behaviours
 Media relations: working with communications media in seeking
positive publicity, and responding to issues in the interest of the firm
 Community relations: facilitating active participation within a
community, including sponsorship of events such as Ellen DeGeneres’
trip to Australia
17/03/2014
40
PROMOTION – OTHER ASPECTS
 Relationship marketing with the QFF scheme
 This allows Qantas to meet customers' needs on a continuous and
repeating basis by developing a long-term, one to one relationship with
individual customers
 There is maximum emphasis on customer commitment, contact, keeping
promises, giving rewards, and building trust
 Customer lifetime value is extremely high in the airline business,
especially amongst corporate customers
 Anecdotally, it is often said in the airline industry that 80% of the
company’s profits come from the most loyal 20% of customers
 Marketing via social media
 Qantas has a modest social media presence with 116,000 followers on
Twitter, and 465,000 likes on Facebook. By contrast, Qatar Air (a
comparably sized partner airline in the Middle East) has 3.8 million likes
on Facebook
 Qantas has suffered social media PR disasters, and their social media
team is notoriously poor in response to negative stories.
17/03/2014
41
PROMOTION – SOCIAL MEDIA FLAWS
 Contemporary Business Issue: Social media and PR Disasters:
The #QantasLuxury debacle (2011)
 Shortly after the industrial relations disaster that saw the entire airline
grounded, and with the crisis still unresolved, Qantas’ social media team
posted the following:
 Ever wanted to experience Qantas first class luxury? You could win a First Class gift
pack with our famous QF PJs. To enter tell us ‘What is your dream luxury inflight
experience’. Include #QantasLuxury
 This is an example of where the marketing department was out of touch
with the remainder of the company. Of course, the responses from the
public created a social media disaster, a sample of these include:
 #virginluxury – getting an exit row #tigerluxury – getting a biscuit #qantasluxury –
getting a pilot, engineers, and baggage handlers
 #QantasLuxury is a massive executive bonus while your workers starve and your
former customers choke
 While it may seem like a minor issue, the timing, the use of the hashtag,
and the nature of the prize gave the competition 114,000 mentions, 88%
of which were unfavourable.
17/03/2014
42
PLACE – DISTRIBUTION CHANNELS
 Qantas sells the majority of its tickets directly through it’s website
– the Qantas website is ranked 76 in Australia, the Virgin Australia
site is ranked 159
 Telephone and airport ticket sales have declined in importance,
but Qantas still retains these option primarily for premium
customers
 Travel agents remain important for international flights – for this
reason Qantas owns the Qantas Holidays wholesaler, and
maintains good relationships with Flight Centre and other
competitors
 An important part of Qantas’ distribution is its central
reservations system. It uses the Amadeus system (designed by
Lufthansa in Germany), whereas Virgin uses the cheaper Sabre
system (designed in the US).
17/03/2014
43
PROCESSES
 Qantas has pioneered next-generation
check-in, which allows a faster and
simpler process on domestic flights.
 Check in can be done at the airport, on
any computer, or on a mobile phone
 For QFF members, the process is as
simple as scanning one’s QFF card at the
check in. The card then becomes one’s
boarding pass, and that is all that is
required to board a domestic flight
 Customers still have the capability to
check in with staff free of charge
17/03/2014
44
PEOPLE & PHYSICAL EVIDENCE
 For any airline, the capabilities of
staff are integral to the customer
perception of service features and
benefits
 Qantas’ new uniform – introduced
late 2013, is an important case in
the importance of physical
evidence in a service based
business. The uniform attracted
both praise and criticism from
customers and staff
 Comments on the internet were
negative – “Where's class and
sophistication? Looks like a cross
between an AFL jersey and a
dress.”
 Female staff have complained about
the impracticality of the dresses
17/03/2014
45
E-MARKETING
17/03/2014
46
BENEFITS OF E-MARKETING
 Reach: truly global reach for the lowest possible price of all
types of marketing
 Interactivity: the internet can facilitate conversations,
especially through social media, and allow the display of
information in new means
 Immediacy: information (and possibly, a seat purchase) is only
a matter of clicks away, and can occur anywhere with the use
of a mobile phone or iPad
 Demographics and targeting: metadata and the use of search
suggestions can allow targeting of a particular demographic
segment
17/03/2014
47
GLOBAL MARKETING
 Global Branding
 Qantas uses the same brand and logo internationally, trading off its strong
image for safety and uniquely Australian service.
 This is also cost effective due to economies of scale, and It provides a
universal, worldwide image with strong recall
 Standardisation
 Qantas does not take a standardised approach to marketing, however
there are some elements of the Qantas product that have been changed
to standardise them with their alliances
 An example is the OneWorld alliance and status matching
 Customisation
 The customised approach recognises that changes in the marketing mix
are essential to best suit the needs of customers in different regions
 This is demonstrated in Qantas’ Asian offshoots, including Jetstar Japan,
Jetstar Pacific, and the proposed premium Asian airline
17/03/2014
48
ADDITIONAL INFORMATION
 To do especially well in the essay, you must remain up to date
with the most current issues facing Qantas.
 This may include:
 Trends in Qantas’ share price/revenue/profits
 New strategies employed by Qantas
 The responses by Virgin Australia
 The Qantas case study textbook was out of date as soon as it
was printed
 Useful websites:
 www.qantasnewsroom.com.au - official updates
 www.theconversation.com/topics/qantas - analysis
 www.ausbt.com.au - commentary
17/03/2014
49