Marketing Mix of Qantas Airways and 7Ps (Updated 2024)

The Marketing mix of Qantas Airways analyses the 7Ps of Qantas Airways, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Qantas Airways. Qantas Airways is the flag carrier of its country of origin, Australia. It carries cargo and passengers and is associated with the Aviation industry. This international airline company was founded in November 1920 but could commence domestic operations in the early 19th century. Flights at international levels were started in May 1935.

Oneworld airline alliance has Qantas Airlines as one of its founding members. Qantas Airways has set outstanding engineering, safety, reliability, and customer satisfaction standards. It faces competition from several rival international airlines that include.

• Avianca
• KLM
• Air India
• Emirates
• Singapore Airlines
• Air France
• British Airways

About Qantas Airways

• Type: Airline
• Industry: Aviation
• Founded: 1920
• Founder: Hudson Fysh, Paul McGinness, and Fergus McMaster
• Headquarters: Mascot, New South Wales, Australia
• Area served: Australia, Asia, Europe, North America, and South America
• Key people: Richard Goyder (Chairman) and Alan Joyce (CEO)
• Number of employees: Over 30,000

Qantas Airways Product Strategy

Qantas Airlines is the largest airline in fleet size, international destinations, and international flights. As the oldest airline company, it is in the third position globally. At the end of the fiscal year 2014, the airline occupied 65% of the domestic share and carried 14.9% of the travelers to and from Australia. The company believes in change and, moving with time, has brought in new technology and innovation to become one of the best in the aviation industry.

The product mix of Qantas Airways, Australia’s flagship airline, is characterized by its diverse range of services catering to various customer needs in the aviation sector.

The new Product Mix of Qantas Airways in 2024 is as follows (Source).

1. Diverse Class Services: Qantas operates flights offering different classes to cater to varied customer preferences and budgets. These include First Class, International Business, Premium Economy, and Economy Class. Each class is designed to offer distinct levels of comfort and service, ensuring options for different types of travelers.
2. Freight Services: Alongside passenger services, it also operates Qantas freight service. This includes a freight and logistics company, Australian Air Express, and leased cargo aircraft from Atlas Air, showcasing its capability in handling cargo transportation efficiently.
3. Subsidiary Airlines: The airline has several subsidiary international airlines under its brand, such as JetConnect, which offers services between New Zealand and Australia, and Jetstar Airways, which functions domestically and internationally.
4. Digital Services: Embracing technological advancements, Qantas Airlines has developed applications for Windows Phone, Android, and iOS smartphones. These apps enhance customer experience by offering functionalities like managing frequent flyer points, mobile check-in, fare alerts, flight updates, and booking services.
5. Safety and Quality Focus: A significant aspect of Qantas’ product offering is its emphasis on safety and service quality. This is reflected in the high-quality services provided across all its flight classes, ensuring passengers a comfortable and safe travel experience.

Overall, Qantas’ product mix is well-rounded, focusing on passenger comfort, safety, and technological integration, which helps maintain its position as a leading airline in the aviation industry.

Qantas Airways Pricing Strategy

Qantas Airways employs a multi-faceted pricing strategy to maintain its market position as a leading international airline.

1. Market Leader Pricing: As a prominent player in the aviation industry, Qantas often commands market leader pricing, particularly for routes with a significant market share.
2. Premium Pricing for Luxury Services: Qantas justifies its premium pricing by offering luxurious and high-quality services, especially in its First Class and Business Class. This includes sophisticated in-flight entertainment, comfort, and exclusive amenities that cater to high-end customers.
3. Competitive Pricing in Economy Class: To capture a broader market segment, Qantas provides more economically priced tickets in its Economy Class. While these are more affordable, Qantas ensures that they still offer better comfort and safety compared to competitors.
4. Dynamic Pricing for Flexibility: Qantas utilizes dynamic pricing strategies, adjusting ticket prices based on demand, seasonality, and competition. This approach helps them to remain competitive and adapt to changing market conditions.
5. Loyalty Programs: The Frequent Flyers program is critical to Qantas’ pricing strategy. It offers benefits and rewards to loyal customers, encouraging repeat business and enhancing customer retention.
6. Penetration Pricing in New Markets: Qantas may offer lower ticket prices to attract customers and establish a presence when entering new markets or routes.

Overall, Qantas’ pricing strategy is designed to cater to different customer segments while maintaining its brand reputation for quality and service excellence.

Qantas Airways Place Strategy

Qantas Airways started its operations in Winton in Queensland and, with time, spread its operations internationally to include services in several countries. Its headquarters is in Sydney, with its central hub at Sydney Airport. Other main hubs are located at Melbourne and Brisbane airports, with secondary hubs at Perth and Adelaide airports. Important airports for its international carriers are Los Angeles International Airport, Darwin International Airport, and Cairns International Airport.

Qantas Airways’ place strategy focuses on wide-reaching accessibility and efficient distribution of its services:

1. Global Network: Qantas operates flights to many international destinations, including countries across Oceania, Europe, Asia, The Americas, and Africa, ensuring a solid global presence.
2. Key Hubs and Airports: The airline has major hubs at Sydney, Melbourne, and Brisbane airports, with secondary hubs at Perth and Adelaide. This strategic placement of hubs optimizes its operational efficiency and passenger accessibility.
3. E-Commerce and Digital Platforms: Qantas leverages its website and mobile apps for ticket bookings, providing convenience and broad accessibility to customers. These digital platforms are integral to their distribution strategy.
4. Collaborations with Travel Agencies: The airline partners with online and offline travel agents, offering attractive packages and deals. This collaboration extends their reach and gives customers more options for booking and travel.
5. Physical Outlets and SMS Services: Qantas maintains physical ticketing outlets and utilizes SMS services for bookings and flight updates. This dual approach caters to both traditional customers and tech-savvy travelers.

Qantas Airways Promotion Strategy

Qantas Airways has an international presence and has adopted an aggressive marketing strategy to create and maintain its brand visibility. Its ad campaigns are displayed through print and digital media in newspapers, radio, magazines, television, hoardings, and billboards. It is aware of the importance of social media platforms and uses these tools to its advantage via its official website, Facebook, Twitter, and YouTube.

Qantas offers incentives like the Frequent Flier program to lure in new and maintain previous passengers. Its tagline is The Spirit of Australia, and to prove that it does what it says, the company is associated with the welfare of the Aboriginal community. It also promotes the original culture and art of Australia. Qantas supports the LGBTIQ community and equality in marriage theme as part of its community services via campaigns.

Sponsorship deals are significant for a company to remain in the limelight and maintain brand recall. Qantas Wallabies, an Australian Rugby Team, is sponsored by the airlines.

Some Recent Video ads and Print ads for Qantas Airways are:

Qantas Airways People Strategy

When discussing the “People” element of the Service Marketing Mix for Qantas Airways, it’s essential to consider how the airline’s staff, customer service, and overall human interaction contribute to its brand image and customer experience. Here are several points that highlight the role of people in Qantas Airways’ service marketing mix:

1. Highly Trained Staff: Qantas Airways invests significantly in training and development programs for its employees to ensure they provide high-quality service. This includes flight attendants, pilots, customer service representatives, and ground staff. Their training focuses on safety, customer service excellence, and operational efficiency.
2. Customer Service Excellence: The airline emphasizes superior customer service to create a positive passenger experience from booking to post-flight. This involves attentive onboard service, efficient problem-solving, and personalized services for passengers with special needs or in premium classes.
3. Teamwork and Collaboration: The seamless operation of flights and ground services depends on effective teamwork and collaboration among various departments. Qantas staff are known for coordinating and cooperating to ensure smooth operations and customer satisfaction.
4. Diversity and Inclusion: Qantas Airways focuses on diversity and inclusion within its workforce, aiming to reflect its diverse customer base. This includes initiatives to support gender diversity, the inclusion of indigenous Australians, and the representation of various cultural backgrounds.
5. Employee Engagement and Satisfaction: Recognizing the link between employee satisfaction and customer service, Qantas invests in employee engagement programs. Satisfied employees are more likely to provide better service, contributing positively to the customer’s experience.
6. Brand Ambassadors: All employees, regardless of their role, are considered brand ambassadors for Qantas. Their behavior, appearance, and customer interaction directly impact the airline’s image and perceptions.
7. Innovative Customer Service Solutions: Qantas has been proactive in adopting technology to enhance customer service, such as through its mobile app, self-service kiosks, and digital boarding passes. However, the human element remains crucial, with staff available to assist passengers with these technologies.
8. Feedback and Continuous Improvement: Qantas values passenger feedback to improve its services. Continuous improvement is critical in communicating customer feedback to management and adapting its service approach accordingly.
9. Safety as a Priority: Employees across all levels are trained to prioritize safety, an essential aspect of the airline industry. This commitment to safety is a crucial part of the training and operation protocols for all staff members.
10. Crisis Management and Flexibility: The ability of Qantas’ staff to manage crises and remain flexible under challenging circumstances is crucial. This includes dealing with flight delays, cancellations, and emergencies, where the staff’s response can significantly affect the customer experience.

Qantas Airways Process Strategy

The “Process” element of the Service Marketing Mix for Qantas Airways encompasses the procedures, mechanisms, and flow of activities that consume services. This element is vital as it affects the customer experience, service delivery efficiency, and overall satisfaction. Here are several key points regarding the process aspect of Qantas Airways:

1. Online Booking System: Qantas offers a user-friendly online booking system that allows customers to easily search for flights, compare prices, and book tickets. This system also enables passengers to manage bookings, select seats, and make special requests.
2. Check-in Procedures: Qantas provides multiple check-in options to enhance convenience for passengers, including online check-in, mobile check-in through the Qantas app, and kiosk check-in at the airport. This flexibility aims to reduce wait times and improve the airport experience.
3. Baggage Handling System: Qantas employs an efficient baggage handling process to minimize the chances of lost or delayed luggage. This includes sophisticated tracking systems and clear guidelines for baggage allowances and restrictions.
4. Flight Operations: The airline follows strict operational procedures to ensure safety, punctuality, and efficiency. This includes everything from pre-flight checks and in-flight service protocols to landing and taxiing procedures.
5. Customer Service Channels: Qantas has established multiple customer service channels, including call centers, email support, social media platforms, and airport service desks, allowing customers to seek assistance, provide feedback, or resolve issues through various means.
6. Loyalty Program: The Qantas Frequent Flyer program is designed to reward loyal customers with points that can be redeemed for flights, upgrades, and other benefits. Earning and redeeming points are made straightforward and attractive to encourage customer loyalty.
7. Onboard Service Process: Qantas focuses on a high-quality onboard service process, which includes meal service, entertainment options, and comfort amenities. The process caters to passenger needs and preferences, enhancing the travel experience.
8. Safety and Security Processes: The airline follows stringent safety and security protocols, including regular maintenance checks, security screenings, and emergency procedures. These processes are critical for ensuring passenger and crew safety.
9. Feedback and Resolution Process: Qantas has a structured process for collecting customer feedback and addressing complaints. This includes post-flight surveys, a dedicated customer service team to handle complaints, and a follow-up mechanism to ensure satisfactory resolutions.
10. Environmental Sustainability Practices: The process also encompasses Qantas’ commitment to environmental sustainability, including fuel-efficient flights, waste reduction measures, and carbon offset programs. These practices are integrated into service delivery and operational processes.
11. Health and Safety Measures: In response to global health concerns, Qantas has implemented enhanced health and safety measures, including increased cleaning protocols, changes to boarding and deboarding processes, and in-flight services to reduce contact and ensure passenger and crew safety.

Qantas Airways Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix for Qantas Airways pertains to the tangible and intangible elements customers experience and associate with the airline. This physical evidence supports the brand’s image, assures quality, and enhances customer satisfaction. Here are key points regarding the physical evidence of Qantas Airways:

1. Aircraft Fleet: Qantas’ aircraft fleet’s modernity, cleanliness, and safety are direct physical evidence of the airline’s commitment to quality and innovation. The fleet includes state-of-the-art aircraft equipped with the latest technology for comfort and efficiency.
2. Branding and Livery: Qantas’ distinctive logo and livery, featuring the iconic kangaroo, are easily recognizable and convey the airline’s heritage and identity. This visual branding on aircraft, staff uniforms, and marketing materials creates a strong visual association with the brand.
3. Lounges: Qantas’ airport lounges offer a premium experience with comfortable seating, dining options, showers, and workstations. These spaces reflect the airline’s commitment to customer comfort and luxury.
4. In-flight Amenities: High-quality in-flight amenities such as seats, entertainment systems, meals, and complimentary kits contribute to the physical evidence of Qantas’ service quality. The differentiation between cabin classes further emphasizes this, with premium cabins offering lie-flat beds, gourmet dining, and designer amenity kits.
5. Uniforms: The professional and distinctive uniforms Qantas staff wear visually represent the brand’s values and professionalism. They contribute to the overall perception of quality and reliability.
6. Airport Terminals: The design and functionality of Qantas-operated terminals and check-in areas, including signage, cleanliness, and efficiency, affect passengers’ perceptions of the airline. These areas are designed to provide a seamless and comfortable customer journey.
7. Website and Mobile App: Qantas’ website and mobile app’s design, usability, and features represent the airline’s dedication to customer convenience and technology. These digital platforms offer functionalities like booking, check-in, and flight status updates, contributing to the overall service experience.
8. Customer Service and Interaction: The professionalism, friendliness, and efficiency of Qantas staff during interactions (in-flight, check-in, customer service calls) serve as intangible physical evidence of the airline’s service quality.
9. Marketing Materials: High-quality marketing materials, including brochures, advertisements, and promotional videos, help to build a positive brand image and set expectations for the quality of service.
10. Safety Record and Certifications: Qantas’ safety record and industry certifications are intangible physical evidence that reassure passengers of the airline’s commitment to safety and operational excellence.
11. Customer Testimonials and Reviews: Positive customer feedback and reviews serve as social proof of the airline’s service quality, further contributing to its physical evidence.

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