Marketing Flashcards
1
Q
Background Information
A
Qan is a large public airline with record underlying profit of $1.43 billion in the first half of FY23. These profits have assisted Qan in expanding their aircraft range and routes with the aid of Jetstar. The lack of trained workers affected publicity negatively and they had major competition with Virgin Airlines dominating the domestic market.
2
Q
Marketing Objectives
A
- Increase capacity
- Improve customer experience
- Rebuild brand reputation
- Develop new products
- Increase revenue
- Enhance complimentary businesses
- Expand international network
3
Q
Product
A
Qan’s brand is widely recognised through the logo of a ‘flying kangaroo’ symbolising Australia’s national carrier.
- The frequent flyer scheme is most profitable with underlying profit of 351 million and the only thing making profit in FY22 that services 15 million members
- This encourages relationship marketing, retaining customers and attracting new customers
- As part of Qantas Loyalty, this builds upon complementary businesses through membership benefits and point systems for spending on the airline and businesses partnered with it
- Although not all consumers want to overspend on inflight products, making it hard to redeem points quickly
- Recent partnerships with Petstock targets a market where 8 million people own pets
In doing so, Qan has achieved obj5 and obj7
4
Q
Price
A
Qan uses a mix of competition and market based pricing after influences of competition and consumer demand.
- When lockdown restrictions finished Qan offered 60% cheaper fares starting from $39 across 170 routes.
- This created a mass-market approach and used price penetration attract the largest market share of consumers
- Due to high demand from COVID, competitors also had the same approach which showed Qan’s lack of product differentiation
- Virgin also offered flights as low as $55 one way
- Rebuilds brand as the best airline in Sydney as it maintains lowest cost flights
- Despite these cheap flights Qan had a 2% higher cancellation rate due to inefficiencies surrounding lost luggage and late departures, affecting the public image of the company’s traditional high quality in-flight
- Overall, these cheaper flights positioned Qan as the leading airline despite fluctuations in demand and competition, meeting obj3 and obj5
5
Q
Promotion
A
Qan communicates products and it’s image to consumers through a variety of ways.
- As travel resumed post-COVID, Qan partnered with tourism Australia to showcase Qan as the Australian airline
- They recreated the “I still call Australia home” advertising campaign with Australian celebrities; hugh jackman and ash barty
- Mass advertising and social media advertising campaign has positive opinion leaders creating good publicity
- The video showed families reunited domestically and internationally
- there was criticism towards the truth of the advertising as call centres are not often in Australia
- This campaign does not help obj3 as customers won’t truly see Qan as the ‘Spirit of Australia’
- This is shown in feedback reviews suggesting a 9% decrease in market share
6
Q
Place
A
e-commerce is the major distribution channel for Qan with 67.7% of distribution done online, representing a high market share
- Qan’s New Distribution Capability (NDC) enhances the buying and selling experience as they distribute more niche merchandising offers for travel agencies to offer consumers.
- For example, holiday bundles are offered with Webjet.
- This is a selective distribution model with an indirect agency
-Qan makes only 1% on commission. This hurts obj5 but benefits obj2 and obj7 as it’s low profit gains market share over a range of product offerings - The low commission can force Qan to look for profit margins elsewhere
- Attracts high discretionary income consumers as holiday bundles are specific to the business, economy and first class and location
- The biggest customer complaint is the lack of a personal customised approach
- the frequent flyer scheme is also more accessible through checkouts with qantas linked credit cards
- these meet obj2, obj4 and obj6
7
Q
People
A
The high visibility of the service requires a high quality interaction between staff and customers.
- A customers first interaction occurs at check-in where they see the signature Qan uniform and the strict appearance code
- Makeup is encouraged for woman and tattoos or excessive jewellery is banned to create a professional image
- The check in crew is mostly multilingual and multicultural to break down language barriers when trading on international markets
- Qan spends $275 million on training per year which is 20% than the industry average
- As a result, customer expectations are high from the high level of quality
- this makes negative experiences more noticeable
- this results in poor reviews and a reduction in Qan market share
- to meet obj2 and obj5
8
Q
Processes
A
Qantas utilises technology for an efficient flow throughout the delivery of its service.
- They use ekiosks to check in using mobile devices and QR codes
- increases efficiency as they let customers check in themselves
- these reduce wait times, staff dependencies, expenses and communication barriers
- These machines were older than other airlines and had technical difficulties so Qan upgraded 140 ekiosks in 2022
- The old ekiosks were 40% slower than the new ones although the new ones require more technical ability, thus reversing obj2 but meeting obj4
9
Q
Physical Evidence
A
Qan’s planes shape the way consumers view the airlines and the quality of the service.
- Qan uses its A380 aircraft to seat 480 people as the largest passenger plane for international flight
- These allow flights to be less frequent while still serving the same amount of people
- This helps Qan save 8% on fuel in comparison the 747
- Although, Qan needs to fill the plane with enough passengers for this to be as efficient
- By making the flights more exclusive with less departures Qan can keep the amount of customers that make the A380 fuel efficient
- Overall this achieves obj1, obj5 and obj8
