Qantas Airlines Marketing Strategy

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Qantas Airlines Marketing Strategy: Since its inception in 1920 Qantas Airlines has become the airline that is the flag carrier of Australia and has the largest size fleet of international routes and locations. As the third-oldest airline in the world following KLM as well as Avianca it started flights to destinations around the world in May 1935. Its name QANTAS is an abbreviation of Queensland as well as Northern Territory Air Services and is known as “The Flying Kangaroo”. 

Qantas Airlines Marketing Strategy

Did You Know About Qantas Airlines?

Company : Qantas Airlines

CEO: Alan Joyce

Founder:  Fergus McMaster | Hudson Fysh | Paul McGinness

Year founded: November 16, 1920

Headquarters: Mascot, Australia

Annual Revenue:  A$17.96 billion

Products & Services: regional, domestic and international Airline services

Competitors: Cathay Pacific Airways, Air India, Air China, British Airways, Southwest Airlines and Singapore Airlines.

Website: www.qantas.com

Qantas Airlines Fun Fact: Registered originally as the Queensland and Northern Territory Aerial Services Limited (QANTAS), Qantas is widely regarded as the world’s leading long distance airline and one of the strongest brands in Australia.

Qantas Airlines Marketing Strategy – Segmentation, Targeting, Positioning

To provide its customers with the best service, QANTAS airlines use a combination of geographic, Demographic, and Psychographic variables. Segmentation assists to aid the company in understanding different categories of customers, based on distinct variables of the population. 

The undifferentiated targeted approach is the strategy that the brand employs to meet the increasing requirements of its customers. 

QANTAS is positioning its brand in a manner that its image is related to competitors. To promote the trademark QANTAS uses various position strategies. To make sure it is positioned against its rivals, the company has introduced Jetstar, its low-cost airline. 

Qantas Airlines Mission Statement

“We are Australia’s leading premium airline and we are dedicated to being the best. We aim to meet your expectations every time you fly and so we continue to invest in our business and will always strive to provide you with an exceptional level of service”

Qantas Airlines Vision Statement

“Qantas’s long-term vision is to operate the world’s best premium airline”

Qantas Airlines Tagline

“Spirit of Australia”

Qantas Airlines Marketing Strategy

Qantas Airlines Marketing Strategy – Competitive Advantage

Strong Domestic Presence :  

QANTAS Airlines has more than 70% of Australian local market shares and approximately 15% of the international travel undertaken by travelers in the country. 

Some of its competitions in Australia include: 

  • Virgin Australia 
  • Pel-Air 
  • Eastern Australia Airlines 
  • Fly Corporate 

The focus is on passenger business :  

A little over $64 million of $1.53bn profits for the company comes from its freight division i.e. QANTAS Freight QANTAS domestic and Jetstar group, which generates another billion dollars of revenue for the company’s brand. 

Qantas Airlines Marketing Strategy – BCG Matrix

QANTAS Airlines is a part of three Strategic business units ( SBU) i.e. Domestic Passenger and International Passenger as well as the Freight segment. 

Because both the domestic as well as International the passenger segment of business account for approximately 35-37 percent of the operating revenues for the brand, it is a Star on the BCG matrix for the company, and consequently, the freight segment appears to be a problem within the BCG matrix. 

Qantas Airlines Marketing Strategy – Distribution Strategy

With more than 2000 flights operating every week the regional airline part of the QANTAS Group is present in 56 regional and metropolitan locations across Australia. 

The QANTAS includes 20 domestic destinations and 21 International destinations spread across 14 countries across the globe. 

Qantas Airlines Marketing Strategy – Brand equity

QANTAS Airlines is named the best Domestic Class airline. Qantas also received the prize for the best Catering Services and the Best Lounges, which is a standard for other brands all over the world. 

Qantas Airlines Marketing Strategy – Competitive Analysis

For domestic flights, it competes with at times several airlines like United Airlines, Singapore Airlines, Delta Airlines, American Airlines, Southwest Airlines, and Malaysia Airlines. 

In the freight segment, the main competitor is Virgin which also has Toll Holdings’ Toll Air Express as the primary freight service provider for its domestic mainline service as well as Virgin Atlantic which assists with its international long-haul freight. 

Qantas Airlines Marketing Strategies – Market Analysis

It is awash with competitors from Regional, National, and International Players operating within the country. The market also faces many other challenges like low fares, laws, and regulations of the government, un-sold inventory customers’ loyalty, price battles between rivals, large barriers to entry and exit for businesses as well as the rising price of fuel worldwide. 

Qantas Airlines Marketing Strategy – Customer Analysis

The customers of the brand are those who travel to far-off locations, both Australian international and domestically. This includes mainly corporate clients who are frequent travelers for work or business. 

The freight segment is comprised of mainly industrial and commercial enterprises that require transportation services to transport their products. 

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