Based on the case study presented, Qantas Airlines could make use of different marketing strategies so that it can accomplish the market share and sales goals set by the people managing the organization. The best place to start when it comes to selecting the most appropriate and efficient set of marketing strategies is on the situational and SWOT analysis. As a general rule, it would be less costly for an organization to capitalize on the improvement of its strengths and opportunities and more costly to capitalize on making significant improvements on its weaknesses and threats. In the case of Qantas Airlines, however, some of the identified weaknesses and threats could be potentially serious (e.g. ongoing disputes between Qantas and militant unions, postponed delivery of Boeing dream liners; and increase in government regulation to protect smaller rivals, among others). From a cost-benefit standpoint, the company should not risk not taking the idea of making improvements in these departments into consideration despite the significant price disparity between making improvements on the less costly departments (strengths and opportunities). The company, should however, not forget to continuously invest in its strengths as there will eventually come a time wherein its competitors will be able to catch up.
Market segmentation can be an effective marketing strategy for Qantas Airlines. Considering that most organizations’ objective is to increase their overall share of the market by as high a margin as possible—as a way of increasing their sales and profits, engaging in marketing strategies that aims to tackle the different segments of a market can be a good starting point. For Qantas Airlines, they can create different service packages for different market groups or segments. Most airline companies, for example, offer different types of services for different market segments. An example of a market segmentation marketing strategy is the act of offering economy, business, and executive class airline tickets and services to customers.
This way, Qantas Airlines can target all the market segments. Certainly, airline customers from well-off families would opt for the service packages of an airline company that offers business and executive class tickets and services. In the same manner, mainstream travellers would opt for the service packages of an airline company that offers economy class tickets and services. Qantas Airlines can make their market and product segmentation a little bit more unique than their competitors. The company can, for example, increase the number of product segments or use a different type of segment qualification for its international economy class service (e.g. family airline package, solo airline package, business airline package, among others).
Companies operating in the airline industry are not exempted from the disadvantages of cut throat competition. In this form of competition, the one that offers their service packages for the lowest prices often emerges as the winner. Setting the prices for each airline service package right can also be an effective marketing strategy. However, Qantas Airlines should never let the quality and reliability of its services be compromised just because of the competitive price they offer. While there are indeed customers who fish for the lowest airline services prices, there are a lot more customers who look for the overall value of the services they get (considering price, quality, and reliability) instead of just the price. In this case, the recommendation for Qantas Airlines is to offer more value for the price ranges that they offer to their customers. Airline customers would most likely be willing to pay for a high price if they know that the quality and reliability of the service they will receive meets or even exceeds their expectations. Qantas Airlines should nonetheless set the prices competitive but not necessarily low.
Making investments in information technology may also be a good marketing strategy. Qantas Airlines’ financial reports for the past few years suggest the company can afford to make significant investments when it comes to marketing strategies. Social media marketing, among other marketing strategies that may be made possible through information technology, can be an effective strategy. It can increase the company’s exposure to both domestic and international markets. Considering the stiff level of competition brought about by newly-established low-cost airline companies especially from a price standpoint , Qantas Airlines should not hesitate to use the size of its resources to have a large competitive edge over its competitors.
In this case, making significant investments in the information technology department may be one of their best options. After all, the number of people who surf the World Wide Web for discount tickets and other airline services has been on a continuous increase. Through their information technology efforts, the company can more effectively broadcast their marketing promotions and advertisements. Qantas Airlines has a frequent flyer program which they planned to revamp for a long time now . This frequent flyer program can, for example, be more recognized by patrons and customers, driving in more sales and profits along the process, if they would introduce it using various information technology and social media strategies. Qantas may also consider offering inflight internet services and other technology-related services to its customers—something which requires them to invest more heavily on information technology . Offering these perks and value added services to the customers of its international economic class airline services should give Qantas airlines a solid advantage over its competitors.
All in all, the general marketing strategy recommendations for Qantas should focus on these three things: making continuous improvements both on its strengths and weaknesses, offering great price to value ratio to its customers—this means that the price of its products and services should not necessarily be low but should nonetheless remain to be competitive; that the company should focus more on the overall value of their products and services than just on the price alone; and lastly, making investments in the information technology department.
References
Alberici, E. (2007). Qantas Frequent Flyer Program to be Revamped. ABC, http://www.abc.net.au/worldtoday/content/2007/s1933292.htm.
Jizhen. (2011). Qantas Case Study. http://www.docstoc.com/docs/85214511/QANTAS-CASE-STUDY.
Tokyo, F. (2007). Qantas Airlines: A Case Study Analysis - Why Has Qantas been so Successful. Business Research Papers Write Work, http://www.writework.com/essay/qantas-airlines-case-study-analysis-why-has-qantas-been-so.
Warne, D. (2007). Inflight Internet Lives Again: Qantas Introduces Wireless Broadband, laptop power in all classes. APC, http://apcmag.com/inflight_internet_lives_again_qantas_introduces_wireless_broadband_laptop_power_in_all_classes.htm.
