Intangible Resources Of Competitive Advantage - Jetstar And Tigerair Essay.

Jetstar's Key Features

Discuss about the Intangible Resources of Competitive Advantage.

In this report, the discussion will be made on the two airlines which are Jetstar and Tigerair. Jetstar is an Australian company with headquarter in Melbourne. It is the subsidiary of Qantas and also it has created a response to the threat posed by the low-cost airline. Tigerair is a Singapore airline which is the budget airline and the activities of the company are located in Southeast Asia, China, Bangladesh and Also in India.  In this paper, the first phase will discuss how customers and potential customers perceive the key features of the two budget airline brands which are Jetstar and Tigerair. Next phase will discuss the how JetStar and Tigerair will possibly come with two distinctive and competitive new products or service idea in the Australian market and in the last phase, the strategies related to brand management the company should consider will be discussed.

Jetstar is known for its high-quality services at lowest of cost. This can be understood by the fact that it is highly ranked in terms of customer satisfaction in the Airline Industry. Jetstar is one of the best airlines companies that are operational in the world (Wen & Chen, 2017). With their services like fare prices for all its products and the service quality which it offers to its clients, they have been able to make a good image in the minds of their potential consumers (Jetstar, 2018).

They have made changes in their internal operational methodology of the company. This was benefitted by the help of implementing technology in their operational procedures. With the help of technology, they have also increased the quality of customer relationship management which has helped them in reaching the top (Pearson, Pitfield & Ryley, 2015).

Their products have been designed as per the requirements of their potential target market. This is the reason why they have been able to capture the larger part of the market. Their plans like a price reduction, services, and products they have been able to attract their potential consumers (Kurt, Ben, Kevin & Weiyang, 2015). They do their marketing revolving around the fact that their customer understands them to be one of the best low fare airlines. One of the best qualities about Jetstar that enhances the customer perception is the fact that has a unique way of providing services. This includes the way in which they treat their consumers at the time of journey. They are also known for their connecting flights which helps the company in traveling from anywhere to anywhere.

Tigerair's Key Features

Same like Jetstar, Tigerair is also known for its low fare high-quality services. They have trained their employees in such manner that they will be able to provide their services in a customer friendly environment. Their feature of taking a suggestion from their customers and acting upon it has helped the Tigerair to make a better image in the minds of customers (Lohmann & Vianna, 2016). Their image in the market is of the company that is capable of fulfilling the demands of the customers at one of the cheapest rates in the market. They have also implemented the best of technology especially the technology related to combining all the media activity with a real-time reservation have gained high popularity and is attracting a lot of potential consumers. They are known for their timely services (Srisaeng, Baxter & Wild, 2014).

They also attract the consumers in terms of the fact that their cancellation rates are very low. This has attracted the consumers who want to book tickets at lowest prices. Their cancellation rates are even half the cancellation price charged by their nearest of competitors. Their creativity in their services has also made a good image of the company in the minds of consumers. Their commitment towards understanding the customer's demand has helped the company in reaching the top of the industry in terms of customer satisfaction (Tigerair, 2018). But in the last few years, they have been also been criticized for many service time failures.

It has been seen that to achieve large market share and also to maintain goodwill in the market, it is important for the company to focus on introducing the new market idea. The company can introduce new services in the market which is related to offering attractive packages to their customer or in the Australian market. The customer avails the services related with the booking of tickets. Therefore, the best option that can be chosen by the company is introducing new service in the Australian market. The services that can help to achieve large market share and can also help to achieve success is related with the offering international as well as domestic package with inclusive flight booking so that customers can feel satisfied and happy with all the bookings. The attractive booking package should be offered by the company so that customers can feel happy at the time of availing the services offered by the company (Snyder & Pham, 2014).

Jetstar's New Service Idea in Australian Market

It is seen that the customers can get more attracted towards the services of the company if it is availed in an easy manner and also at low cost. The packages should be offered and linked with the services that are given to the customers so that customers can easily avail the services in an effective manner (Pearson, O'Connell, Pitfield  & Ryley, 2015). Also, the packages which are selected by the customers should be modified so that customer can feel satisfied at the time of availing the services. For instance: the new package should be introduced in which the services that should be offered by the company are related to bookings of flights, hotels and also the places to visit in the country where the customers want. To promote it the company should focus on low prices packages so that growth can be achieved in the market. With the flight services, it can be easy for the company to introduce the new packages in the market so that activities can be conducted in effectively (Snyder & Pham, 2014).

In the Australian Market, the company should focus on introducing the service related to free drop services to the customers in their desired place. The company should introduce this service so that the customers who are new at the place can feel comfortable and good and also the old customers can feel relaxed. When the company offers this service then it can be an advantage for the company as more and more people can be attracted towards the services of the company. This service can be beneficial for the customers as this will help to enhance the satisfaction and also the experience of the customers. Tigerair should provide this service through cabs or travelers (Anggraeni & Hasan, 2016).

If a customer wants to visit a hotel then he or she will be dropped there by the cab or the traveler of the company and no cost should be taken from the customers who are availing the services of the flights. It has been seen that this service can be an effective strategy and just because of this it can be simple for the customers to retain the customers for a long time towards the services offered by the company. This new service idea can help to maintain their goodwill in the market and can also help to achieve large market which can give benefits to the company to survive in the competitive environment (Zhang, 2015).

Tigerair's New Service Idea in Australian Market

This strategy can also change the mindset of the people towards the services of the company. It has been seen that when customers get free services from the company then it can be easy for the customers to avail the services. The extra benefits provided by the company helps to achieve success in the competitive environment. It is important for the company to achieve success in the competitive environment so that the goodwill of the company can be maintained in a proper manner (Pearson, Pitfield & Ryley, 2015). To achieve goodwill in the market is the tough job for the company and by focusing on giving free cab services the company can attain large market share and also success in the Australian market. This will give a positive impact on the overall profits of the company and also on the growth of the company. Large customers can be gathered with the help of implementing the new services in the Australian market (Pearson & Merkert, 2014).

It is important for the company to consider brand management strategies so that growth can be achieved in the market. If proper brand management is there then it can be simple for the company to achieve goals and objectives in a proper manner. The brand management strategies that can be used by the company in the Australian market are brand positioning, brand marketing, brand performance and brand value. The company should first focus on the deciding the brand positioning which the company wants to achieve. In this, it is important for the marketers to research the positioning. The positioning should be done by focusing on enhancing the service quality so that goals and objectives of the market can be achieved. It has been seen that when the focus is given to the maintaining the service quality the company can easily attract the customers towards the company (Whyte & Lohmann, 2015).

Next focus of the company should be on brand marketing in which it has been seen that brand marketing should be done in a proper manner in which proper information should be highlighted so that customers can get knowledge so that customers can know about the services offered by the company in the market. Marketing through social media should be done by considering ATL and BTL strategies so that it can be easy for the company to reach to the end users. Proper communication strategies should be considered so that growth can be achieved (Cheng, Sugiyama & Kan, 2016).  In the Australian market, it is important for the company to build brand value and it can only be done if proper communication is made with the customers and also by giving advertisements in which entire information should be covered. Brand performance is also the aspect that should be covered to the customers so that it can be easy for the customers to choose the services among the competitors prevailing in the market. This strategy can help to achieve competitive advantage in the market (Wen & Chen, 2017).

Brand Management Strategies

There are several branding strategies used by the Tigerair. Strategies have helped them in gaining position in the market and place their brands at the highest of positions in the industry. Two branding strategy that cited firm can use are:

• Creating a new value curve: Since the competition, the market has increased hence it will be better that Tigerair uses Blue Ocean Strategy Canvas. This suggests the company compete in the market with the services that their competitors have failed to deliver (Srisaeng, Baxter & Wild, 2015). New disruptive innovation could help the company to add a new value to its brand name. The strategy of differentiation could be highly beneficial in this regards.
• Heavy investment in promotional campaigns: One of the best branding strategy on which Tigerair could be emphasised upon is communicating well. This can only be done with the help of aggressive promotional campaigns. Their communication strategy must focus on the clients whom they understand to be their future potential consumers (Keller, Parameswaran & Jacob, 2011). Communicating the features and USP of the company needs to be highlighted in a better way so that impression about the company's services can be enhanced. Branding in the form messaging their vision and mission in the minds of consumers can also be helpful.

Conclusion

By analyzing the report it can be concluded that both the companies have maintained goodwill in the market.  In the Australian market, the JetStar should focus on introducing the packages related to the new service so that growth can be achieved and Tigerair should focus on offering the free service related to drop facilities so that satisfaction level of the customers can be enhanced. The strategy that should be considered by the company is related to brand management in which brand positioning, brand marketing, brand performance and brand value, communication strategy, promotional strategies are considered. If the company focus all these aspects then it can be easy to accomplish overall goals and objectives in an effective manner.

References

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