Qantas Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: November 16, 2017

Marketing Strategy of Qantas analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Qantas marketing mix, help the brand succeed.

Qantas marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Qantas Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Qantas Product Strategy:

The product strategy and mix in Qantas marketing strategy can be explained as follows:

Qantas is the flagship airline of Australia, which has a strong global presence with many international destinations. The main focus of Qantas Airlines is Comfort and service quality. It offers its customer the best in class comfort during the journey. The second aspect is of safety. Various services offerings in its marketing mix are as follows. QantasLink is inter-Australia flight service of Qantas. A domestic flight service, which offers safety and comfort. Jetsar and Qantas freight are the low-cost airlines which handle maneuvers linked to air cargo. Australia Asia Airlines is now a closed service. Though it was specifically developed to serve the Taiwanese markets. Qantas international airlines is the main service offered for passengers visiting in or out of Australia. With premium services offered by Qantas, it operates in 4 classes: 1st class, international business, international & premium economy class. Its aircrafts are one of the most sophisticated ones, with major focus on comfort of passengers. As most flights are of more than 6 hours’ journey, entertainment facilities inside flight are also given a lot of importance. For freight services, it promises the best in class tracking system.


Image: Wikimedia


Qantas Price/Pricing Strategy:

Below is the pricing strategy in Qantas marketing strategy:

Qantas is a leading international airline and hence commands a market leader pricing in the region.

Targeting mostly the frequent business travelers, Qantas operates generally in luxury service. Another association with Qantas is of status and sophistication. The comfort and hi-tech entertaining facilities inside flight, allows Qantas to charge a premium price from its customers. The premium pricing strategy in its marketing mix covers costs, benefits and the value addition in terms of quality service. Again, with facility for ‘refunds’, Qantas develops trust and loyalty amongst its targeted customers. For capturing the mass market, economy tickets are also available, which are relatively low-priced. Although there also Qantas maintains the status of comfort and safety, better than its competitors for the same pricing. Also in new markets, it follows penetration strategy, by offering low costs. Programs like, Frequent fliers, offers a very high margin in benefits, depending upon the loyalty base of customers. This is another pricing methodology that differentiates, Qantas airlines.


Qantas Place & Distribution Strategy:

Following is the distribution strategy in the Qantas marketing mix:

Qantas is an airline which serves international destinations and hence has a strong presence. As far as ticketing is concerned, there are various avenues for the same. Tickets are available at Qantas owned outlets, where the agents help the customers choose the best of flights and offers for them,. Earlier the major source of selling, these outlets are now not much looked after, with the Y generation moving towards e-services. Bookings are available to be made on internet. It means less maintenance cost of stores, more reach to audience and convenience for customers. Thus, internet services are the most sort after ones, for buying tickets. Company’s own website or third party websites are used for this outlet. Booking services are also available through SMS and apps. Even the information and updates about flights are available through SMS. Offline and online travel agents, with their reliance with Qantas offer tickets, with tour packages and attractive offers. They also offer convenience in terms of selecting and arranging the most suited plans for the travelers.

The main office of Qantas is at Sydney, though Qantas has a worldwide presence in almost all major countries and their major cities.


Qantas Promotion & Advertising Strategy:

The promotional and advertising strategy in the Qantas marketing strategy is as follows:

Qantas uses many media channels like TV, print, online ads etc to market itself. Qantas frequent flier, loyalty program is considered as one of the best loyalty options, it offers a lot of facilities to the frequent customers of Qantas, and maintains the balance between holding new customers and acquiring new ones. Aboriginal and Torres strait islander initiative, in association with Australian community of Aboriginals, Qantas promotes the original arts and culture of Australia, branding itself as the ‘spirit of Australia’. Offering sophisticated, hi-tech facilities, and high safety records, Qantas has developed itself as a premium brand recognized as a status everywhere. The brand name itself attracts millions of passengers, who trust and are loyal to the Qantas services and touring options. Qantas sponsors the Australian rugby team, Qantas Wallabies. Considering rugby, the main sports of Australia, such events help in powerful brand recognition. It openly supports, equality in marriage and LGBTIQ community, through campaigns, which again gains a lot of trust and positive image amongst the people. Considering the target customers who are well qualified and open-minded people themselves, these activities develop a brand personality which the customers can associate with.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Qantas.


Physical Evidence:

Qantas aircrafts, boarding passes, website etc are all part of the physical presence of the brand. The physical evidence for the services offered by Qantas is mainly the customers who return once and again for the world class services. Qantas offers luxuries valued a lot by its customers and hence, the people return to it again and again, thus tickets sold to old customers and people using ‘Qantas frequent Fliers’, is one physical evidence for the sustenance of customers. With its hi-tech facilities and brand image, customers prefer this flight specially while travelling to Australia. Also, its strong connection with Australian originality and spirits helps un acquiring new customers. Tickets sold to new customers and increase in market share is another physical evidence. Time and again, Qantas has explored many lands. Even now the Qantas international flights take trips to50+different countries in a week. The increasing presence in international lands, is again another evidence for success.


People:

Qantas proud itself in providing the best of services and comforts and hence, pays very much attention to the flight attendants it chooses to be the face of Qantas services. The flight attendants are trained such that they commit towards Australia’s own lifestyle and attitude. Also, a huge importance is given to safety, and thus all the staff is properly trained in terms of safety measures and actions to be taken during emergencies. All the staff are trained for giving strong commitment and importance to provide best in class comfort for the travelers. It offers one of the most rigorous training programs to its employees, where employees are checked upon physical, mental and cognitive scale of judgement, so that they can take decisions at critical times. A lot of emphasis is given on co-operation, amongst the Qantas employees. Being an international service, a diversified peer group is present to work with, hence team work and attitude of empathy are one major aspect of the people at Qantas.


Process:

The users/ travelers, can book the tickets either online or offline, through various portals available. Once after booking, the ticket is generated and other information like boarding and timings or cancellations are updated through the sms. One can board the flights as per the tickets, the inside journey depends on type of ticket purchased. For luxurious journeys, first class tickets provide all the comforts, from food and drinks to entertaining Televisions, compartments to sleep, etc. The flight attendants keep utmost care for the safety and comfort level of the travelers. The customer data bases are maintained and the loyal customers are identified to be given discounts. On the airport facilities like baggage handling and transfer from runway to the terminus are also processes carried under services. Thus the Qantas marketing mix is covered briefly.


About QANTAS:

QANTAS is short for ‘Queensland and Northern Territorial Aerial Service’. It was founded in November 1920, which makes it the 3rd oldest airlines of the world. The number of international destinations and international flights are highest for this Australia based airline, which is also labeled as ‘Flying Kangaroo’ and ‘the spirit of Australia’. Qantas airlines covers around 50+ international terminuses, with its 5000+ flights, in a week. The airline industry is highly affected by financial setbacks, and thus the recessions of 2008, affected Qantas also. Although with increasing ecommerce and globalization, services provided by Qantas are growing more attractive.

Qantas mainly operates for international passengers boarding in or out of Australia. Qantas enjoys 20% market share of this whole chunk of passengers, with Singapore Airlines and Emirates as its close competitors.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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