Different marketing strategies used by Qantas Airways.

PROMOTIONAL MEASURES

• In order to serve its customers, QANTAS airlines use a mix of Geographic, Demographic and Psychographic variables. Segmentation helps the brand in understanding various groups of customers based on distinctive population variable.

• Undifferentiated targeting strategy is what the brand uses to cater to the growing needs of the customers.

QANTAS positions itself in a way how their image relates to its competitors. To market its brand name the company uses a variety of positioning strategies.

Qantas Airways has the distinction of being the largest airline in terms of its fleet size, international destinations, and even international flights. At being the oldest airline it comes at the third position in the global arena. At the end of the fiscal year 2014, the airline occupied 65% of the domestic share and was carrying 14.9% of the travelers to and from Australia. The company believes in change and moving with times has brought in new technology and innovation to become one of the best in the aviation industry.

PRICE

• Revenues and operating income at 15.8 billion dollars and 975 million dollars respectively. The airlines cater to several sections of society targeting people from middle class, corporate sector and upper middle class as its target customers. It has a varied pricing policy that depends on the needs and wants of a passenger.

• Qantas Airways has adopted a premium pricing policy for its high-end passengers who are interested in traveling first class with all its privileges.

• It provides luxurious and comfortable services with hi-tech entertainment amenities to its sophisticated guests. The premium pricing policy includes benefits; costs occurred and value addition in accordance with quality service.

• For capturing the mass market section of society Qantas has adopted a reasonable pricing policy. It charges minimum rates for its economy class tickets and provides basic amenities to its passengers. Qantas operates in a cut-throat industry where completion is very high.

• For new horizons, it has followed a penetration pricing policy and offered low-cost tickets to create a place for itself. It also offers Frequent Fliers program to its regular passengers so that they continue to use these airlines repeatedly.

PROMOTION STRATEGY

Qantas Airways has an international presence and has adopted an aggressive marketing strategy to create and maintain its brand visibility. Its ad campaigns are displayed through print and digital media in newspapers, radio, magazines, television, hoardings, and billboards. It is aware of the importance of social media platform and uses these tools to its advantage via its official website, Facebook, Twitter and YouTube.

1. Qantas offers incentives like Frequent Flier program to lure in new and maintain previous passengers. Its tagline is The Spirit of Australia and to prove that it does what it says, the company is associated with the welfare of the Aboriginal community. It also promotes original culture and art of Australia. Qantas supports LGBTIQ community and equality in marriage theme as part of its community services via campaigns.

2. Sponsorship deals are very important for a company in order to remain in limelight and maintain brand recall. Qantas Wallabies, an Australian Rugby Team, is sponsored by the airlines.

Competitive advantage in the Marketing strategy of QANTAS Airlines –

1) Strong Domestic Presence :

QANTAS Airlines has more than 65% of Australian domestic market share and about 15% of international travel made by the passengers in the country.

2) Focus on Passenger business :

About $64mn of the $1.53bn profit of the firm comes from freight division i.e. QANTAS Freight QANTAS domestic and Jet star group constitutes another billion dollars of profit for the brand.

3) BCG Matrix in the Marketing strategy Qantas Airlines –

QANTAS Airlines operates in three Strategic business units (SBU) i.e. Domestic Passenger, International Passenger, and Freight segments.

Since both Domestic and International passenger business segments contribute around 35-37% of the operating revenue for the brand and therefore Stars in the BCG matrix for the company and thus the freight segment appears to be a question mark in the BCG matrix.

Market analysis in the Marketing strategy of QANTAS Airlines –

The aviation industry is full of competition with Regional, National and International Players operating in the country. Not only this market faces several other constraints as well such as low fares, government regulations, unsold inventories, customer loyalty, price wars among competitors, high entry and exit barriers for the companies and the rising cost of fuel globally.

Customer analysis in the Marketing strategy of QANTAS Airlines –

Customers for the brand include the passengers who travel in distant places both in Australian domestic and internationally. It majorly includes corporate who serves as a frequent flyer for their work purposes.

Its freight segment includes mainly corporate and industries which use transportation services for their goods.

• Strengths in the SWOT analysis of Qantas Airlines

Steady and Consistent growth

Superior services

Qantas Transformation Program

Successful cost-cutting

• WEAKNESS

Union Problems

Low Profits in International flights

• Opportunities

Business Travel

Low fuel prices

• Threats

Competition

Management of costs