CIn order to make such sales, marketing should be done properly. Some of the issues have been faced by the companies in order to deal with the market (Brown, Varley and Pal, 2009). These issues need to be handled timely for the company's success. That report discusses all the factors of Qantas airlines.
Qantas airline is the company that is based at Australia. The headquarters of the company are at Sydney. It is one of the Airline Companies that acquires around 65% of the whole domestic airline market. The full form of Qantas is Queensland and Northern territory Aerial Services. The government was first under the control of government but in 1992, it has turned into private company (Doganis, 2009). The company was later merged with British Airways. The company provides the customers with all the travelling services through airways.
Environmental analysis of the company helps in determining the factors and their impacts on the functioning of the firm. Below discussion is regarding the environmental factors that affect Telstra and its functioning. PESTLE and SWOT analysis is done in order to conduct the environmental analysis.
Political factors: The political factors involve all those factors that are related to interference of government in the industry (Fisk, Grove and John, 2008). In case of Airline industry, the government of Australia has passed many subsidies that can help the airlines like Qantas to grow and sustain in the industry. Some of the subsidies are related to mergers of the organization in this industry this is because mergers of the airlines with lose can help them to grow again and decrease their operational cost (Fisk, Grove and John, 2013). As far as the political conditions of the company are concerned, it has been analyzed that the political situation of the company is very much stable in nature thus provide support for the companies to grow.
Economic factors: The airline industry is very much affected by the economy of the country. The financial crisis in Australia leads to rise in prices of oil and crude. This definitely affects the industry if airlines in the country for obvious reasons such as high cost of operations and maintenance. The government is playing their role very well in supporting these companies by providing them subsidies.
Social factors: Australian public these days is finding it easy and convenient to travel with airline ways. This tendency of the Australian people is supporting the airline industry to grow. Along with this, there are any places in Australia such as some of the island where the people, are totally dependent on airways to travel as there is no other way to travel (Gilmore and mcmullan, 2009). In addition to these islands, there are some industries in Australia which as dependent on airline ways transports their material or predicts. This ultimately raises the demands of airline travels and this leads to growth of the industry.
Technological factors: The airline industry is very much affected by the technological change as this industry needs to be updated with the latest technology (Goi, 2009). The merger of mcdonnell Douglas and Boeing results in huge amount of investment by the companies in the field of technology. Boeing and Airbus has come up with new models of airlines and this forces other companies like Qantas to be updated with the latest technological innovations.
Legal factors: The legal factors that come into picture affecting the airline industry or Qantas airlines are in consideration with the carbon tax. This requires a legal formality that needs to be performed by the airline firm in order to run their operations smoothly.
Environmental factors: The airline industry is affected by many environmental factors. This is because the emission from the flights affects the environment of the country. The airline authorities of Australia regulate the activities of the airline industry and the companies such as Qantas airlines (Gummesson, 2007). In consideration to the environmental policies Qantas airlines, it has ben identified that the company focuses on reducing the pollution emission by 50% by 2050. As the preempt scenario is concerned, 95% of the carbon footprint is released by the flying operations of the company.
Strength: As far as the strength of the company is considered, the first point is about the brand image of the company and the brand. Qantas is the airline company that is highly reputable and is called as flagship airline in Australia (Halpern and Graham, 2013). The company has around 65% of the market share and thus acts as the leader of the industry in Australia. The past record of the company suggests that was minimal accidents cases for the company thus is the most trustworthy brand amongst all. The flight of the brand has great connectivity all over the world and thus is preferred by many people who are regular travellers.
Weakness: The major weakness that has been analyzed is about the decking performance of the company (Ivy, 2008). In spite of being the market leaders the company fails to maintain the performance level with regards to the expectations.
Opportunities: In terms of opportunities, the main concern for the company is to exploit the growth opportunities available in the industry by expanding the business in more countries. Increase in the customer’s base is also the opportunity for the company by performing online promotion that can help the company to enhance the customer’s loyalty.
Threats: Competitors are the most obvious and the major threat for the company. The high level of competition by local players like Virgin airlines is the biggest threat for the firm (Jones and Taylor, 2007). Other factors that can also pay a major role in developing threat for the company are volatile market and increasing fuel prices.
Current marketing mix:
Product: As far as the products in the case of airline industry is considered, the products are not actually the tangible products but are the travelling services that are offered by the companies to the customers (Lovelock, 2011). Qantas is the airline company that caters the customers with range of travelling services such as first class, international business class, premium economy, international business economy etc. Depending on the class; the facilities associated with these are also different. These associate facilities are related to meals, amenities, seats, etc. In addition to it, some of the flights also offer entertainment services to the customers.
Price: In terms of pricing, cost plus margin method is used to set the pries of the services according to the facilities involved in that. Some of the time it also uses competitive pricing methods (Kumar, Chattaraman, Neghina, Skiera, Aksoy, Buoye and Henseler, 2013). With regard to low price airlines, penetration pricing is abuse as the method to penetrate in the market. The company also comes up with strategies such as low prices for new destination etc. To attract more and more customers. So the overall conclusion is that the pricing method is dependent the situation and the demand of the service.
Place: As far as the place is considered, it has been analyzed that most of the service are provided to the customers through the airport counters of the airline. The company uses its own retail outlets to serve the customers for providing the tickets (Macintosh, 2007). Other strategies are internet media so that the online website of the company can be used to cater the services and telephone numbers are also available for bookings.
Promotion: The Company is very much active with almost all the advertising tools. The advertising is done through print media, TV, radio etc. In case of direct marketing, the company use to send customized messages to the people who can be converted into customers (Rao, K.R.M., 2011). Strategies of sales promotion are used at time of low sales so that balance can be maintained other sales of the company.
Process: As far as the process of the company is considered, it has been analyzed that the process of booking the tickets is very easy. Customers can simply go on the site and book the ticket to their destination or can take the tickets from the airport offices.
People: People involve all the humans associated with the services such as the staff and the customers as well (Shaw, 2016). The staff of the company is very well behaved and the form has high number of customers that takes the services.
Physical evidence: Physical evidence of the firm is characterized as the tangible assets associate with the services. These tangible things are tickets, the ambience of the airport that is very peaceful and creative in nature, furniture, uniforms of the staff etc.
Areas of company’s excellence:
High quality services: As far as the services of the company are considered, it has been analyzed that the company serves the customers with high quality services. The differentiation of the company in its quality that is far better than the competitors like Virgin and Qatar airways.
Brand image: In term of brand image also the company is excelling as it is using all possible ways to market its services among the customers (Small, Harris and Wilson, 2008).
Range of services: The Company offers a large range of services to the customers so that every customer can afford to travel to this airline. This helps in enhancing the customer’s base of the company.
Issues in marketing mix:
In spite of being one of the leaders in the industry, Qantas is lacking are some of the areas where it needs to work in order to maintain its position in the market. The first area that needs to be discussed in which the company is lacking is the innovation in the products and services. Qantas is lacking in the wide body aircraft as compared to its competitors (Verma, 2012). In terms of services, health arrangement is not proper for the aged people as the company is only targeting the young and the official generation of the market. Flight delays and luggage loses cases are also been registered against the company in recent times that needs to be focused upon at the top priority.
Recommended marketing mix:
It is important for the company to improve their services in terms of customer’s base. New wide bodied aircraft should be launched and healthcare service should be adopted at the flight for aged people.
Prestige pricing should be taken into consideration in order to price the products in high demand situation and penetration pricing should be adopted in order to make the customers base and acquire large market share (Wilson, Zeithaml, Bitner and Gremler, 2012).
As far as promotion is concerned, the company is doing very well in promotion no activities. Company should make use of social media channels in order to advertise their services. This is because most of the people are familiar with social media these days and this helps in making the brand image of the company.
Contacting with travel agents and supporting the customers with customers service system helps in acquiring large customer’s base. Travel agents can helps in increasing the sales of the company.
Process: The Company’s process is easy to carry out by the customers. Providing the links and developing the help desk system at the airports can help the first timers to access the process.
People: As far as the staff and the customers are considered, staff should be given with proper training so that they can deal with customers well (Wirtz and Lovelock, 2016).
Physical evidence: the ambience of the retail stores can be improved in order to attract more customers.
It has been concluded from the study that there are many factors that affect the airline industry in Australia. As far as the Qantas airline is considered, it is the airline that is facing the issues because of economic instability of the country. The company has a very strong brand image but has to look for opportunities in order to expand their business. As far as the marketing g mix of the company is considered, it is recommended that company should focus on social media marketing to market its services and improve the service quality more better top retain the customers.
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