Qantas is the second oldest airline in the world, founded in 1920 in Queensland, Australia. It was privatized in 1993 and has since operated profitably through international and domestic air services. In response to competition from low-cost carriers like Virgin Blue, Qantas adopted strategies like purchasing Impulse Airlines and launching low-cost carriers JetStar and Australian Airlines. Qantas has positioned itself based on safety and being the "Spirit of Australia" since it has a strong safety record and reputation for assisting Australians in crises. It delivers customer value through high quality services and augmenting product benefits like its loyalty program and additional offerings. However, recent safety incidents and disputes have impacted public confidence, so Qantas needs to
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Qantas is the second oldest airline in the world, founded in 1920 in Queensland, Australia. It was privatized in 1993 and has since operated profitably through international and domestic air services. In response to competition from low-cost carriers like Virgin Blue, Qantas adopted strategies like purchasing Impulse Airlines and launching low-cost carriers JetStar and Australian Airlines. Qantas has positioned itself based on safety and being the "Spirit of Australia" since it has a strong safety record and reputation for assisting Australians in crises. It delivers customer value through high quality services and augmenting product benefits like its loyalty program and additional offerings. However, recent safety incidents and disputes have impacted public confidence, so Qantas needs to
Qantas is the second oldest airline in the world, founded in 1920 in Queensland, Australia. It was privatized in 1993 and has since operated profitably through international and domestic air services. In response to competition from low-cost carriers like Virgin Blue, Qantas adopted strategies like purchasing Impulse Airlines and launching low-cost carriers JetStar and Australian Airlines. Qantas has positioned itself based on safety and being the "Spirit of Australia" since it has a strong safety record and reputation for assisting Australians in crises. It delivers customer value through high quality services and augmenting product benefits like its loyalty program and additional offerings. However, recent safety incidents and disputes have impacted public confidence, so Qantas needs to
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
Qantas is the second oldest airline in the world, founded in 1920 in Queensland, Australia. It was privatized in 1993 and has since operated profitably through international and domestic air services. In response to competition from low-cost carriers like Virgin Blue, Qantas adopted strategies like purchasing Impulse Airlines and launching low-cost carriers JetStar and Australian Airlines. Qantas has positioned itself based on safety and being the "Spirit of Australia" since it has a strong safety record and reputation for assisting Australians in crises. It delivers customer value through high quality services and augmenting product benefits like its loyalty program and additional offerings. However, recent safety incidents and disputes have impacted public confidence, so Qantas needs to
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Executive Summary Qantas was founded in Queensland in 1920 as Queensland and NorthernTerritory Aerial Services.
It is twelfth largest and second oldest airline in theworld. Since Qantas was privatised in 1993, it has operated profitably ininternational and domestic air services and a range of related businesses.This report has attempted analyse and discuss some of the marketingtheories such as strategic planning, product positioning, and customer valuethat Qantas has applied and what benefits it obtained strategically fromapplying the theory in it marketing strategy.Global trend in rapid emergence of low-cost carriers and launch of Virgin Bluein 2000 provided very steep challenges to Qantas for survival. Qantasidentified this changing environment and designed its business portfolio aspart of its strategic planning. This included purchase of Impulse airline, launchof low-cost carriers like Australian Airlines and JetStar and expansion of non-flying businesses such as catering travel and freight. Qantas also reviewedand re-designed its business portfolio regularly to ensure its business portfoliobest fit the companys strengths and weakness to opportunities in thechanging environment. This included cease operations of Impulse andAustralian airlines. Through these strategies planning Qantas successfullycompeted with low-cost carriers and also to reduce the risk of cannibalisationof the mainline carrier.Qantas offer has many competitive advantages such as safety, schedules,seat allocation, inflight services, oldest Australian airlines, spirit of Australiaand few others. However, Qantas has positioned its product only as safetyand Spirit of Australia because these are the only differentiations that areimportant, distinctive, superior, communicable, affordable, profitable, and mostimportantly pre-emptive. Product positioning cannot be built on emptypromises. Qantas very few incidents during its 88 years history has built itsbrand reputation as one of the worlds safety airline. Qantas has developedreputation as Spirit of Australia, mainly because Qantas has always assisted
Australians during times of crisis. Qantas red kangaroo logo has provided astrong brand recognition and image differentiation.Qantas has created and delivered customer value by providing best possibleexperience to customers before, during and after the flight. As customers arevalue maximisers and they see product as complex bundles of benefits thatsatisfy their needs, Qantas has augmented products benefits by having highquality inflight services, seat allocation, convenient check in, Qantas Club,holidays packages, car rental facilities and many more. Qantas brandreputation for safety and spirit of Australia has also played a big role increating and delivering customer value.In line with all above discussions, it can be concluded that Qantas has appliedstrategic planning, product positioning and customer value marketing theoriesvery well in it marketing strategy. However, few safety incidents within last fewmonths, ongoing cost cutting, outsourced maintenance agreements andongoing disputes with personnel have all served to undertake not onlyQantass reputation for safety and engineering excellence, but alsoconfidence in the airline as a whole. So, it is time for Qantas to refocus on theprocess of creating value to customers as well shareholders through strategicplanning. If shareholders value dominates, customer value is reduced andconsumers actively look for alternatives. If customer value dominates,shareholders do not receive sufficient value in terms of dividends and capitalgrowth. Hence, Qantas needs to get the optimal balance between shareholdervalue and customer value through strategic planning.
