Uploaded by Will Tonkin

Qantas Marketing Plan

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Qantas
Marketing Plan
By Will Tonkin
Teacher: Mr Vlahov
Contents Page:
Pg 1 Cover Page
Pg 2 Contents Page
Pg 3 Market Position
Pg 4 Market Position and Swot Analysis
Pg 5 Swot Analysis and Competitor Analysis
Pg 6 Competitor Analysis and Target Market Analysis
Pg 7 Marketing Goals and Target Market Analysis
Pg 8 Marketing Mix
Pg 9 Marketing Mix and Conclusion
Pg 10 References
Pg 11 References
Market Position:
Key characteristics:
Qantas is the main airline of Australia, outshining its main competitor Virgin Australia and is
one of the oldest continuously operating airlines in the world, founded in 1920. It is one of
the most prominent players in the world aviation industry offering both domestic and
international air travel. Qantas operates a mixed fleet of aircraft, including narrow-body and
wide-body planes, catering to various routes and passenger demands.
Current Market Share:
According to the Airline Competition and Consumer Commission the combined market share
of Qantas Group in January of 2023 was 61.7%, compared to its main competitor Virgin,
which has a market share of 33.4% in January 2023. Qantas is the largest international airline
out of Australia with 27% out of Australia flights, followed by Singapore with 10% out of
Australia flights. And the Domestic Market share is as follows:
Qantas’ Unique selling propositions and competitive advantages:
Qantas firstly has one of the best reputations perceived of any airline in Australia and abroad
by Australians. Apart from the Covid Pandemic and the ensuing problem for the company,
trust for Qantas is still quite high and is known for the being the national airline of Australia.
Qantas also has one of the best safety records in the world. Being rated the safest airline in
2023 by AirlineRatings.com. This is mostly due to the combination of no crashes since the
start of the ‘jet age’ in 1959 and its revolutionary idea of using satellites to track engine
activity which allows the airline to detect problems within the airline before they become a
major issue of for safety.
Qantas is also very innovative when it comes to technologies. Being one the first airlines to
introduce online bookings and in-flight entertainment. The leads to the airline attracting
many ‘tech-savvy’ travellers.
SWOT Analysis:
Strengths:
There are many strengths to the Qantas brand. The main strength of the brand is that it is
considered by most Australians as the default airline to travel on, however this has been
tarnished by competitors like Singapore Airlines in recent years. A second strength of the
airline is that the airline is known for its safety, as like I have mentioned before it was rated
the safest airline of 2023 by AirlineRatings.com. Finally, Qantas is considered to have one of
the most successful frequent flyer programs in the world, which can’t just help in air travel
but also in everyday things like shopping, which fosters loyalty and repeat business.
Weaknesses:
The first main problem with Qantas is that it is highly dependent on international routes.
This has shown to be an issue in recent years due to two factors which are the impact covid
had on Airline, which nearly bankrupted the company and the increase in international
competition, in the form of airlines such as Singapore airlines, New Zealand Airlines and
Emirates Airlines. This has led to major impacts over the past years. A second major issue to
do with Qantas is its extreme disputes with workers, including pay, working hours and
conditions. In particularly the high court battle with the transport union, earlier this year,
over outsourcing ground staff jobs, which limited the existing ground staffing jobs.
Opportunities:
The has been many major new opportunities in recent years for Qantas. Firstly, the growth in
Asian markets due to the increase of Asian air travel, which is owed to the increased
standard of living in the region. Business travel has recently also rebounded post-pandemic
due to China finally deciding to re-open, which Qantas has aimed to utilize. Qantas also has
the unique opportunity of the rise in sustainable aviation which many companies have yet to
jump on.
Threats:
Qantas also has many major threats. One of the most recent ones of these is the class action
lawsuit that Qantas will now face for not refunding tickets during Covid due to cancelled
flights. This is due to Qantas not “immediately” providing refunds and the supposed “$400
million dollars in credit” still not issued to consumers. A second threat to Qantas is the
increased pressure to double down on climate issues in recent years and tackling with new
climate laws. And finally, a huge threat to Qantas in recent years has been the increased
competition internationally from airlines such as Singapore Airlines.
Competitor Analysis:
Current main competitors:
Currently the three main competitors to Qantas are considered to be Singapore Airlines,
Virgin Australia and finally Emirates.
Singapore Airlines:
Currently Singapore airlines competes mostly internationally with Qantas, mostly
throughout the Pacific, Oceania, and Asia. The airline is known most predominately known
for its supreme customer service and was even named the World’s best Airline at the 2023
World Airline Awards. The main weakness for Singapore Airlines is the fact that it is purely
based out of Singapore which can lead to many inconvenient connections for customers. The
airline has also gained a massive opportunity due to the traveling boom after the Covid
pandemic seeing a 135% jump in Air travel after the Covid pandemic. However, Singapore’s
main threat is that it is a purely international airline and if international was to ever be
restricted again it could see the Airline lose massively.
Virgin Australia:
Virgin is currently the main competitor of Qantas domestically, occupying 30.7% of the
market share. The main strength of virgin is that it has a renewed customer service
department as well as a well-constructed human resource management department.
However, one of the weaknesses of Virgin is the recent financial challenges faced by the
company and internal leadership issues. The recent challenges faced by Qantas has
presented a unique opportunity to Virgin which may allow itself to grow its market share.
However, the increased competition of low-cost carriers in the form of mostly Jetstar has
posed a massive problem for the company as they don’t provide low-cost options
themselves.
Emirates:
Emirates is considered to be the main international competitor to Qantas on long-haul
flights, especially ones to Europe. The main strength Emirates is known for is its luxury’s. The
company is known to have the best 1st class seats in the world, which attracts many wealthy
travellers. Similar to Singapore the main hub of Emirates is located in the UAE which leads to
customers having to have a connecting flight, which again similar to Singapore Airlines leads
to many inconveniences. Emirates has also been presented with many new opportunities
recently due to its strategic partnerships with many Airlines, even including Qantas itself.
Finally, Emirates main threat is actually the recent geopolitical shifts that the UAE has
experienced due to the fact that it is located right in the middle east.
How can Qantas differentiate itself and gain a competitive advantage:
Qantas can differentiate itself and gain a competitive advantage in many ways. Firstly,
Qantas has the advantage of being internationally based in Australia, this would allow for
quick access to Asia and even to pacific countries like the US without the need for layovers,
which is one of the many issues associated with Emirates and Singapore Airlines. And
another way Qantas is already differentiating itself today is improving technology and
customer experience, Alan Joyce even said it himself that “We’re investing in new and more
efficient aircraft, new lounges and new technology to making flying even easier and more
enjoyable for our customers”.
Target Market Analysis:
What is Qantas’s target market:
Qantas’s target market is considered to be for consumers from business sectors, the middle
class of society and the upper middle class of society. This is due to its varied pricing policies
and well-designed class system.
Demographic Targets:
- Targeted towards middle to high income earners
- Targets white collar corporations and workers
- Usually targets western ethnicities with inflight western centered food and
entertainment
Geographic Targets:
- The main target of Qantas is mostly Australians
- Targeting mostly people living in the CBD with high income statuses
- However, it does target foreigners (mostly Asian) who aim to come and travel in
Australia
Psychographic Targets:
- Qantas aims to target people with business orientated lifestyles and goals
- The company also aims to target families and has many family values instilled in its
workers and services
Behavioural Targets:
- Qantas is known for its very loyal customer base; however, this has been tarnished in
recent years with the increase in competition
- According to Flight-Report.com 178 recent frequent flyers have rated customer
experience on average a 7.8/10
Marketing Goals:
Qantas’s marketing goals have changed drastically this past year due to the movement away
from Covid policies and Covid recovery, this is due to the lessening of government
regulations in Australia and abroad (especially China). Currently Qantas’s main marketing
goals are as follows:
-
Increasing international flights with the use of Qantas international values, which are
“Network optimism, New fleet technology, transformed cost base and increase in
freighting”
-
Enhance customer service base
-
Increasing loyalty growth in current and future members
-
Creating a new brand image of inclusivity
-
Maintain the current growth post-covid
Marketing Mix (7ps):
Product:
- The main aim of the Airline’s product is comfort and service quality
- Its product is very Australian centered with the use of Australian entertainment and
food
- Qantas’s main products are as follows, QantasLink which is the main domestic
product provided in the country (usually to regional towns), JetStar which is the lowcost option to international and sometimes domestic air travel and Qantas itself
which usually operates inter-state and international
- Qantas has unique branding that closely links itself with Australia as it utilizes a
kangaroo as its main symbol
- Qanats has utilized many slogans in recent years however the current slogan it
utilizes is “Spirit of Australia” which further reinforces the idea of being Australian
centered
Price:
- Qantas is known for its premium services however it also accompanies for low-cost
air travel in the form of economy
- Currently a Qantas flight to Singapore is around $950 for economy, $3,300 for
premium economy, around $4300 for business class and $7300 for First Class
- These prices allow for market penetration into all sectors of life, with the
combination of frequent flyer programs which provides a high margin of benefits, it
leads to Qantas differentiating itself from other airlines
Place:
- Qantas is an internationally aimed airline based in Australia
- Tickets, however, mostly bought online these days, are provided in certified agencies,
which are mostly located throughout Australia and airports
- The main office of Qantas is located in located in Sydney Australia; however, the
company has offices in all major offices in the world
Promotion:
-
As Qantas is an innovative Airline, promotion tactics have been mostly based online
in recent years
-
The main promotion tactics that Qantas utilizes is display ads, search engine ads and
most importantly social media ads
-
Qantas also utilizes the promotion tactic of sales promotion in its innovative
Frequent Flyers program that allows for flash sales and buy more and save more
options
-
Qantas also utilizes a promotional tactic of inclusivity that aims to include all
members of Australian society from the LGBTQIA+ community to the Aboriginal and
Torre Strait Islanders community
People:
- Qantas utilizes a classy uniform based around the company colour of red, were
female employees wear suits or skirts and male employees wear suits
- The Qantas employee is aimed at being an inviting individual that always aims to put
the customer first
- The Qantas employee is also considered to be quite efficient compared to competitor
airlines
Process:
- Qantas aims to employ an efficient customer process
- In July 2023 Qantas’s Airplanes were arriving on time 71.5% of the time
- Compared to its main competitor Virgin which had an on-time arrival percentage of
59.2%
- Qantas was also one of the first Airlines to introduce the self-check in which has
shown drastic improvement in process efficiency
- According to the guardian the baggage loss rate for Qantas was 5 in 1000 passengers,
which further emphasises its process efficiency
Physical Evidence:
- The total liquidity according to the Qantas Investors Day 2023 is $10 billion
- The company’s current sales revenue is $5.98 billion
- And according to Ray Morgan Qantas has a customer satisfaction rate of 84%
Conclusion:
Overall Qantas has been high achieving company in recent years and has on most cases
improved past pre-covid levels, most importantly in sales. I found that Qantas aims to target
high-socio economic people more than other Airlines, however it accompanies very well to
low-income workers. The Airline utilizes an innovative and efficient marketing strategy that
has led to the company becoming a household name in Australia. However, two things the
company could improve is promotion to younger individuals, as competitors are significantly
ahead of the company in this sector and improving the number of routes to European and
Middle Eastern locations.
References:
Thomas, G. (2023, January 3). Qantas Named World’s Safest Airline For 2023. Airline
Ratings; Airline Ratings. https://www.airlineratings.com/news/qantas-named-worldssafest-airline-for-2023/
CAPA. (2021, December 13). Australia’s renewed domestic market competition hots up.
CAPA - Centre for Aviation; CAPA - Centre for Aviation.
https://centreforaviation.com/analysis/reports/australias-renewed-domestic-marketcompetition-hots-up-590458
Qantas faces class action lawsuit for not refunding tickets for COVID cancelled flights - ABC
News. (2023, August 21). ABC News. https://www.abc.net.au/news/2023-08-21/qantashit-with-lawsuit-for-holding-over-1b-credits/102755916
James.Plaisted@skytrax.uk. (2023, June 20). Singapore Airlines is World’s Best Airline at
2023 World Airline Awards. SKYTRAX.
https://www.worldairlineawards.com/singapore-airlines-named-worlds-best-airline-at2023-world-airline-awards/
Duffy, K. (2023, May 16). Summer Travel Airline Flight Bookings Show Strong Demand Led
by Asia. Bloomberg.com; Bloomberg. https://www.bloomberg.com/news/articles/202305-16/airlines-see-summer-boom-led-by-asia-s-post-covid-comeback
I N V E S T O R DAY 2 0 2 3. (n.d.).
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tp
gyw/file/presentations/QAN_2023_Investor_Day_Presentation.pdf
Looking ahead | Qantas AU. (2020). Qantas.com. https://www.qantas.com/au/en/qantasgroup/looking-ahead.html
All Answers Ltd. (2022, July 27). Marketing Mix Report for Qantas. Ukdiss.com; UKDiss.
https://ukdiss.com/examples/qantas-marketing-mix-report.php
Flight-Report. (2023). Qantas : 160 Photo Reviews for this airline - Flight-Report. FlightReport. https://flightreport.com/en/airline/4088/qantas/#:~:text=Passenger%20reviews%20on%20Qantas%
20(QF)&text=Qantas%20is%20a%20Australian%20carrier,slightly%20above%20the
%20general%20average%20.
Bureau. (2023). Airline On Time Performance Statistics —Monthly. Bureau of Infrastructure
and Transport Research Economics.
https://www.bitre.gov.au/statistics/aviation/otp_month
Qantas Airways (QAN.AX) - Revenue. (2022). Companiesmarketcap.com.
https://companiesmarketcap.com/qantasairways/revenue/#:~:text=According%20to%20Qantas%20Airways%20's,that%20were
%20of%20%244.29%20B.
Qantas remains number one in airline satisfaction for both domestic and domestic business
travel - Roy Morgan Research. (2022). Roymorgan.com.
https://www.roymorgan.com/findings/qantas-remains-number-one-in-airlinesatisfaction-for-both-domestic-and-domestic-business-travel
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