Write an essay on Evaluation of the Jetstar marketing strategies.
Jet Star Airways is an Australian aviation company that offers the air travel service to those who have never been able to manage to pay to fly by giving “every day, all day, low fares”. Obviously, Jet star’s market goal is a low-cost transporter, as its main aim as an aviation company is to entrust to offering a high-quality flight experience with an affordable price (Paley, 2005). Even though through the domestic soul shares, Jet star is presently graded third largest airlines, it offered a service to about 16% passengers on the whole in 2009. Their low price has advanced jet star’s ranking while 2006. It is marked that Jet star needs to improve their ranking as it falls after Virgin Blue as well as Qantas (Yu, Cadeaux, & Song, 2013). The distribution channel of Jet Star allows the consumers to contact with their products in certain ways like newspaper advertisements, travel agents, online travel agents, Jet star’s online website booking service, Jet Star outlets, telephone reservations and so on. In current years, Jet star has expected to enlarge or enhance the number of destinations accessible to the customers. Jet star is enclosed with an enormous diversity of consumers who have been creating a center of attention to this aviation company for different reasons (Holden, 2006). It is very much clear that Jet Star hold their flight destinations according to inhabitants density. Though it is, of course, has resulted in the barring of many famous destinations in Australia. Unluckily, there are numerous problems regarding the fights delay and cancellations and also reported with the quality of service. Three companies are involved with it are Tiger Airways, Qantas, and Virgin. The jet star had started working its domestic services in 2004 as well as international services in 2006. Jet star’s competition is with Virgin Blue and Tiger Airways. This company offers low priced fares in comparison with other companies like Virgin Blue as well as Tiger Airways. Jet star's market sections consist of different buyers, whose needs; demands vary according to one's behavior and characteristics. This Jet Star aviation product offers a service to about 14 international companies and performs about 2400 flights in a week. Thus, Jet star is well-known for its low priced flight fares as well as Jet Star should only focus on their continuing selling of their products by a mixture of different sellers, but their actual Jet star product should not change according to their increasing in market shares.
This research offers an internal analysis of the famous airline in Australia is the Jet Star. Jet star can highly compete with the Virgin Blue company, but eventually, they both are the service company. Jet star's correlated marketing strategies and methods which will create the difference between the market ‘loser' as well as market ‘leader'. This analysis will describe a possible solution to some strategic matters tackling the companies to uphold its location and to protect its lucrative in the domestic market (The market for domestic conservatories, 2011). Earlier, Qantas started progressing emails and carrying the customers biplanes and enlarge the destinations universal such as Asia, Australia, America, Europe, and Africa. Qantas offers full service to their clients. Jet star is the additional of Qantas, which mainly focuses on the low priced fares of flights. The jet star has a strong business strategy and also concentrates on the low priced fares of flights.
Explanation of two non-financial performances
The non-financial returns are that the Jet Star company has come back to profitability after a tough performance in the domestic market against the Tiger Airways and the Virgin Blue, as well as narrowing of failures from its Asian joint ventures (Hussain & Islam, 2003). Qantas's resources outcome hung to a causal pretax profit of $81 million for six months that ruined December 31 from a $16 million thrashing in the year-earlier era. The new consequence for Jet Star comprised a pretax profit of $63 million in the domestic market because for the improvement of the yields.
Jet star's profits rose about seven percent on power growth of four cents. The company said that returning of the fare and increasing yields stopped primarily from capacity moderation in the southeast Asia and Australian markets.
Discussion of two potential risks of implementing the Jetstar marketing strategy
There are various a risk in Jet star marketing strategy is that it is in shape with the endorsement of economic expansion, tourism and replacing people into different regions. In some region, there is a downturn, and so it is quite severe in some rural areas. Jet star's network is consistently increasing at the outflow of Qantas, and flying into a new location. Jet star needs a lot of maintenance. However, the aircraft have a worrying amount of potential catastrophes they are a marketing dreadful (Al-Rodhan, 2009). Jet star's low paid pilots uphold the maximum standards of their profession and do not encompass safety.
Moreover there are more risks that can affect the organization particularly. Jetstar is providing service in the domestic areas of Australia for a long period of time. But the main problem is that the rate of the journey is same for all. It is a problem because there are various passengers with different financial condition and jetstar is providing service in different region of the country. So this can be considered as a high risk for the organization.
Justifications of the marketing strategies
Every organization, whether it is large scale or small scale, has their marketing strategy. Organization needs time to make their strategy, and when it is finished, the roadmap is set for meeting the marketing goals. Jet star Company has chosen several strategies to develop new routes. The course that has been made by Jets star offers the strongest opportunities to develop the market and real differences to local economies. Airline Jets star has the four new regional destinations (Bikker & van der Linde, 2016). It has a 17 percent share in New Zealand domestic airline market. Jets star organization operates Airbus A320 jets to Auckland, Wellington, Dunedin, and Queenstown. Organization offers jobs to the pilots and fulfills their goals (The Airline market, 2001).
The Company needs to stay competitive for the development of the marketing plan. The target market is necessary for the products to sell. A marketing plan provides complete demographics of the target market such as age, location, education and needs (Cohen, 2006). The advertising, promotion, publicity helps in marketing strategy. It allocates responsibilities and timelines for each marketing so that everyone comes to know what they are doing and when. Better position in the market is required for the success of a brand or product. Goals can b achieved only by proper planning. The progress of the Jeter organization is essential for the success and in achieving the goal. Meeting customer needs is the major role of the group. The new products, its flavor or taste are all judged by the customers (Young & Aitken, 2007). Flexibility is crucial to adjust the growth the team if any hidden events happen. Companies must spend their money wisely with a structured marketing plan; staying within budget. The marketing strategy of the organization brings many other organizations closer. The marketing strategy achieved the desired result. Planning helps the organization to reach and make a profit.
Principles of Marketing
The term Specialization is a method of production of business, area or company that focuses on the production for the limited scope of products and services to gain better degrees within an overall system. Several countries, for example, specialize in producing the goods and services that are inhabitants of their part of the world (Copley, 2010). They also do trading for other goods and services. This specialization has the source of global trade, as few countries have enough production to be self-sustaining (Helpman, 2011).
It is also an agreement inside a community, an organization or a larger group where the members are fit for activity, and they have the responsibility for its execution.
The company wanted to make sure it was offering differentiation by adding price to the product without raising the price for the buyers. The marketing strategy of business try to make their product exclusive to stand out from competitors (Krstic & Becic, 2011). For example, a person in his/her town can open a coffee shop or a restaurant, for the strategy that the products or services will be accepted by the local community. It creates more sales or more distinct market segments (CastreÌn, Osbat, & Sydow, 2006).
Firms like Maruti- Suzuki uses differentiated marketing strategy to attract all segments. Other examples are Hyundai or Microsoft.
Company resources should have the market with different sizes, brands or products. Wholesalers and retailers are right with it because it helps them to reach different consumers, allows order and promotes private labels.
Market Segmentation is the process in which the company develops marketing strategies to help them to understand the portions of markets that are different from one another. Its objectives are to design a marketing mix that matches the expectations of the purchaser in the targeted segment (McDonald & Dunbar, 2013). Few companies supply the needs of an entire market and choose those companies who are best prepared to handle.
The four factors that affect market segment are in the following ways:-
1) Identification of the segment
2) Measurability of the size
3) Accessibility for the product
4) Appropriateness of the policies and resources of the company
Market segmentation strategies are based on four basics:-
3) Psychographic differences
4) Geographical differences
The marketing Concentration means to concentrate on the needs and wants of the organization's key stakeholders (Phillips & Freeman, 2010). It shows the customer awareness and preferences, how the firm can influence them and the organization should have profit. The organization must have a full concentration in advertising, marketing sales and public relations. It gives scope to the students who are interested in marketing management career. It also takes up a concern strategy to make marketing efforts and specific market segment. For example, the manufacturer of Relish watches has chosen to concentrate on the luxury segment of the watch market. The organization is supposed to concentrate also on the market development, product development and market penetration to extend the company (Meyer & Thu Tran, 2006).
4Ps of marketing
E. Jerome McCarthy has coined the word 4PS. It is used by the marketing companies, branding agencies and web design companies all over the world.
Out of the four Ps of marketing, the product is first. A product can be tangible or intangible. When a company is producing a new product in the market, they must check the product quality. The product should attract the people with its unique features. Packaging must be eye-catching. The brand name plays a great role for the good (Albu & Griffith, 2006). The product must be of good size and variety. Warranty and guarantee of the product are crucial for the customers to buy the product. For example- like eye comic Kajal, it is a good price, smudge free and stays for 7hours.
It plays a most important role in buying decisions. Price determinations must have profit target, supply, demand, and marketing strategy. A market is a place for competitions of the product. The Same product may vary in prices in the different marketplace (Smith, 2011). The price should be based on market research so that the people are more likely to buy the products. Seasonal discounts attract the people to buy the products in cheaper. For example- 21% discount off for six bottles of Tupperware or discount in restaurants for dinner table on Sunday.
When the product is ready to go out in the market, it needs promotion. Promotion is done for the product or service. It looks at many ways in a marketing agency. Promotion attracts people to buy the product. Promotion contains elements like personal selling(door to door), publicity making news story about the product, advertising in roads or shops, direct mailing to customers from companies (example- Dominos pizza.)
The place is very vital for putting the right product in the right place and at the right time. An expensive site is required for selling the product so that the customers are attracted towards it. The place is the distribution of products and also to make a profit (Nuseir & Madanat, 2015). The ideal location is needed to draw the attention of the people. In today's place sometimes the real deal does not happen in web, it needs the primary place for the people to buy the product.
The marketing strategy of Jets star company has shown the various ways of planning. It shows how the organization has developed different ways for the achievement. Jets tar Company offers many pilots or cabin crew for jobs. The body makes a marketing plan to make a business profit. The mentioned company has chosen several strategies to determine the organization. If the organization is not able to make a good decision, then they must face higher loss. The company must concentrate on the needs and wants of the organization. Price, place, and promotion are also significant for the product to draw the attention of the customers. If an organization follows the mentioned steps or strategies the company will surely be benefited.
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