Evaluating Marketing Tools Strategy and Recommendations

Question: Discuss about the Evaluating Marketing Tools Strategy and Recommendations. Answer: Introduction The sales strategy of a company and its consistent growth entirely relies on its marketing plan since this is the detailed layout of that company determining its plans for the following year. Hence, the evaluation of the marketing plan becomes necessary to make alterations on it and set the marketing plan in motion in order to cope up with rapidly changing industry. Assessing the marketing plan for an Australian company one of the premium airlines organization Qantas is chosen. Qantas is a premium and the largest airline service provider in the continent of Australia and New Zealand as well as pioneering carrier service in Europe and North America. With several subsidiaries incorporating Qantas Link and the low-fare Jetstar the worlds second oldest airlines group serves in 44 countries encompassing 182 destinations worldwide. It also has a partnership with Australia Post in two jointly controlled entities - Australian Air Express. It caters pioneered services from Australia to North America and Europe and disburses employment to 32,500 people approx. Domestically, it is a flag carrier company of Australia operating around 5600 flights a week in the region of 59 cities. The celebrated global airlines industry like Qantas airlines is thriving at a rapid pace though consistent and fortified rate of profit is an elusive concept. This report centers on the theoretical aspects and outline of eight marketing mix concepts and as well, as how it is being applied on the chosen organization Qantas Airline(Armstrong, 2014). Further, this report indulges in the growing level of competition with the widening global market and the broader contemporary issue that has been faced by the company. Eventually, some recommendations for amelioration of the carrier-craft company are provided that might aid it to reach to the pinnacle. SWOT Analysis: An ideal marketing audit encompasses an in-depth assessment of the organizations current scenario and the products that it is capable of launching and employing in the market to acquire its long-term objectives. Through measurement of the potential competencies and available resources of the organization, we can set an overview of the strength and weaknesses of the company in question. While evaluating the trends or the external forces in the extrinsic environment, which portrays the positive and negative prospects of the company in future indicates the opportunities and the probable threats faced by the organization during its operation in the market(Ivy, 2013). Using SWOT Analysis on Qantas Airlines enables to assess all aspects of the business both externally and internally and points out its inept decisions and key features where it actually is able to possess the competitive advantage and reinvent its arena. Application of SWOT Analysis in Qantas: Strength Weakness a) Centers on Australian values. b) Globally acclaimed brand name and logo. c) Outstanding safety record d) Excellent operational facilities leading it to win the Cumber batch Trophy for Excellence in engineering, twice. e) Operation of B2B and B2C business simultaneously. f) Australian Government acting as a continuous back bone. a) Incongruous location of Australia prevents its airport to operate as a busy hub. b) 93% of the employees are Australia based which is an extravagant aspect. c) Compared to its competitors it exhibits expensive operational expenses. d) Amateurish decision making regarding purchase of cost effective and fuel- efficient aircrafts versus following the competitors. e) Selecting target audience as the middle aged Australian nationals who might fade away at a given point of time instead of targeting the high tech savvy young generation with contemporary flag-carriers. f)The Qantas Group is entirely positioned as an International Business, obstructing it from acquiring foreign investors unlike Virgin, its renowned competitor, which enjoys full pockets of investment both from the international and domestic levels. Opportunities Threats a) The competent amalgamation with Emirates Airlines. b) 6 functional subsidiaries of Qantas provide it with the scope of tailoring various products at different segment of the market. c) Delivery of more than 4000 flights weekly by Jetstar group to more than sixty destinations in 17 countries worldwide with 115 aircrafts. d) Seeking advantage from the collapse of Ansett in hiring new employees, expanding routes and leasing numerous aircrafts. e) Evolving the e-commerce phase of its business. f) Australia goes hand in hand with New Zealand in establishing a grand space for domestic carrier craft business. a) Unceasing rise of fuel cost. b) Arrival of its succubus competitor Virgin Australia demonstrating lower costs of operation and surpassing productivity after enjoying a monopoly position of above 10 years. c) Eithads proposal of buying Virgins stake to bolster its existence indicates a further financial boost up for Virgin Australia from UAE. d) Emergence of Dubai Airport as an evident nerve center, which introduces passengers moving in and out of Australia to competitors of Qantas. e) Global economic crisis has led a profound impact on the aviation industry as a whole. f) Australias negative legal regulations such as Long Service Leaves imbibe a sluggish attitude in the employees and hamper their productive capacity. Market Segmentation: The following market segmentation can be applied by Qantas to embellish its market positioning in order to achieve the apex of success: Demographics Qantas can divide the market into various sectors based on certain demographic variable such as age, gender, income level and the like. This in a way segregates the business class customers from the economic class and distinguishes their tastes and preferences. Psychographics - After the demographic segmentation is conducted, they need to identify the demands of each demographical layer and fulfill them in the process of business priority consideration. Qantas should in a way maintain an equilibrium while placating the demands of both the business class and economy class customers. Buyer Graphics This calibrates on the evaluation of the attitude and perception of the customers towards the offered service. Where else they invest their money for Qantas to develop partnerships in future in-varied industries. Geographics This segmentation focuses on the apartheid of the market on the basis of the thorough knowledge about the geography of the current market and satisfying the demands of the intended group of customers originating from the diverse geographies. Like Qantas initiated a program with a tag line Our people, Our land in 2012 to concentrate its business tactics on domestic flights. Marketing Mix: Marketing mix is a bed- rock concept in the field of marketing. It can be defined as a cluster of marketing instruments that an organization adopts to pursue its goals in the target market scenario. However, the marketing mix broadly categorizes mainly 4 Ps of marketing decisions, in case of services marketing a much more elaborate and extensive version is applied comprising of 8 Ps which sequentially goes as follows: Product Price Promotion People Processes Physical evidence Partnership Distribution Product: It deals with the commodity or services that the firm is willing to offer for sale in the market, its substitute products as well as the competition prevailing in the market. Product considerations influences each and every other decisions related to a product marketing. The tangible and intangible advantages should be considered minutely so that any products of tangential importance can be co-marketed(Hamzah Sutanto, 2016). Qantas has focused on enhancing its output by implementing various strategies of positioning not only with the customers but also with the rival groups. Qantas has launched Jetstar, its low fare brand to captivate back its market share from the rival firms. Qantas positions itself as dual branded claiming it as a high quality premium carrier craft brand on one hand and a budget airline with low cost on the other. This exquisite feature has provided Qantas with a competitive advantage and thereby expanding its market share and broader coverage of market segmentation. It initiates various reward programs like Frequent Flyer Schemes and Qantas Club Services to secure both the individual and corporate business. In addition it also offers a bounty of features of superior quality to its loyal customers. Price: Price is not only the indicator of the profit margin of the service provided but it is also held responsible for a number of marketing decisions. It sets a standard value of the service, which has to be met by the companys employee, physical evidence and performance to reach the pinnacle. For a company like Qantas the pricing pattern of the product changes frequently. Recently the pricing strategy of Qantas incorporates: Price Penetration Implemented for Jetstar- cheapest possible price. Full Fares targeted for business customers since full fares are feasible for refund which is very much essential for business customers. They require the flexibility from the management in spite of being expected to pay a premium charge. Promotion: A company markets and advertises its products and services through the device. It strives to convey its intended message to the media with the best possible means. Promotion strategy involves brand development, slogans and logos which transmits the intangible benefits of the service in question. Qantas ratifies advertising agencies to create advertisements for both audio and visual media including brochures, posters and billboards(Astuti Silalahi, 2015). It is mainly dependent on the following techniques of promotion. They are either based on representatives who are directly responsible for sale to travel agents and government departments. Or the image of Qantas is highlighted through news releases, press conferences and interviews. It has used various opinion leaders such as John Travolta and sponsored variety of events such as rugby and NRL to popularize its reputation and sustain its brand image. People: One of the principal key features of any company assisting it to grow further is its people who are entrusted with supporting the companys customer service or product section. Maintaining high level of customer satisfaction relies on lesser time taken in response and operation hours. This is only possible when the aims and expectations of the company are clearly stated to the employees and they are trained properly(Armstrong, 2014). A competent group of people of any organization only multiplies the quality of service offered to its consumers. Qantas has identified the value of maintaining proficient employees in order to provide premium service to its customer. The trainee second officers of Qantas are trained by one of the worlds most renowned flight training institute famous for its thorough professional curriculum. They gain practical knowledge in proximity with the experienced pilots and are further trained to become dedicated staffs. Qantas also concentrates on retaining the jo b satisfaction level of its employees largely offering them with some attractive perks and benefit. Processes: Processing of the marketing plan is an extremely important strategy since excellence in a companys service resorts to the concrete policies and procedures made in the marketing plan. Now-a-days, customers do not just remain satisfied availing the service but they also show interest in the business structure and try to figure out whether it is appealing. Qantas ensures a smooth processing of reservation to its passengers and even concentrates on providing quality ground service to the flyers. They consistently attempt to perfect their on-flight meal service with proper packaging and their flight entertainment arrangement is of premium class. Physical Evidence: Talking about the physical evidence part, it is perhaps the most important among all the marketing mix as only this component comes to the exposure first. The physical evidence constituent includes the visual layout of service offerings, company policies, liabilities on the part of the organization and customer friendly insurance policies if in case the company is accountable for any harm or damage to its customers and their belongings. Physical evidence part also cites the proper dress code and decorum of the organizations employees. Qantas precisely maintains a high standard of policies and its customer liabilities are clearly stated in the website so that the customer can easily get access to any of his queries(Jin, Kim, Kim, 2015, June). Besides, Qantas seems very much promising in taking the right and prompt steps to solve the problems. In their website, it has been clearly stated that in case of any loss or damage of the flyers properties they need to lodge PIR (Property Regul atory Report) to Airport Baggage Services counter. Besides, Qantas annual report and business structure is handily available in their websites that involves the passengers to the core of the organization so that they can be ascertained about the service quality promised. Setting up of Marc Newson First Lounges in LA, Singapore and Hong Kong is sure to turn Qantas to one of the elite international flyers(Belobaba, Odoni, Barnhart, 2015). In addition to this, many of the biggest aircrafts are being remodeled in terms of both style and comfort providing completely flat sky-beds. Partnership: An investigation of present marketing landscape has identified partnership marketing as one of the key strategy to grow and expand business in the highly competitive market. Qantas, as no exception to this has collaborated with Malaysia Airlines and LAN in Latin America(Balmer, 2013). They are also hoping to expand their business teaming up with British Airways in order to reduce loss making. In Asia Qantas is focusing to grow with its low-cost airline Jetstar and looking forward to the major coalition with Emirates(Balmer, 2013). It has also confirmed to establish a low-cost carrier in Japan named as Jetstar Japan, collaborating with Japan Airlines and Mitsubishi. Distribution: The distribution mix ensures that right service is offered to its target consumer(Bellin, 2016). This consists of five principal components such as communication, unitization, warehousing, inventory and transport. Qantas assures that the right service is offered to the right consumers. It deftly handles all the distribution channels: Direct Distribution: Direct distribution mix allows the customers to reserve their tickets on their own and therefore, the company easily reaches out to its end customers. Third-Party Distribution: Schemes affiliating third party, Global Distribution Systems (GDS), Interline sales associating other airlines helps to expand the company worldwide. Qantas has a flexible reservation system that connects it to these traditional systems using IATA standard interfaces. Impacts of contemporary issues: Marketing strategy of a company is the process or business model followed by the company to utilize limited resources in the best possible way to achieve a rise in sales and hence, a rise in the profit, growth and attain a sustainable competitive advantage. A good marketing strategy can drive a company way forward than its rivals. Every company follows their own marketing strategy. There are some contemporary issues which affect the marketing strategy for organizations. Corporate Social Responsibility (CSR), Social Media Interaction, technological advances, globalization, ethical concerns and so on are among the few to be discussed. Corporate Social Responsibility (CSR): Corporate Social Responsibility, abbreviated as CSR, refers to the business activities of organizations, which are beneficial for the society. Its the initiatives taken by the companies to assess their impacts on the environmental and social welfare. It can be said that CSR often represent policies and activities that companies use to govern themselves with honesty, transparency and have a positive effect on social wellbeing. These initiatives can include a variety of actions like donations to charity, efforts to make a greener world and so on. Qantas Group has played an active role in the benefits of the communities since it was established in 1920 in Queensland, Australia. It has contributed during natural disasters, flying patients and medical supplies, donation to charities like UNICEF, Make-A-Wish, e-motion21, Mardi Gras. Its Change for Good program has raised over $30 million compared to $4 million of Jetstars StarKids initiative. It has supported Australian talent through part nerships with Australian Ballet, MONA and National Gallery of Australia. Qantas has CSR rating 63(Qantas, 2017). Environmental Impacts: Every organization has impacts on the environment and, those effects have become a global challenge now. Due to globalization of services and climate change, the actions have accelerated global warming with significant impacts on society, economy and environment. To do their part to improve environmental impacts, the Qantas Group has worked to increase fuel efficiency and reduce emissions. It has invested in new aircrafts, innovated more efficient ways of operating by collaborating with partners, regulators, manufactures. Data shows, the airlines fuel efficiency has increased by 5% since 2009. According to the financial report of Qantas, 2014-15, it has reduced the carbon emission by 2.1% during 2014-15 as part of the Qantas Transformation program(qantas_annual_review, 2015). Qantas has launched programs for separating and recycling the waste on board of Boeing 737 and Airbus A330. Economic Efficiency: According to the financial report, in 2014-15, Qantas has replaced fluorescent tube lights with energy efficient LED lights in airports, warehouses, ramp areas, hangers and flight simulators. This would reduce energy consumption by over 13 million kilowatt hours and would save more than $2 million energy cost per year (qantas_annual_review, 2015) Technological advances: Technological improvements are always beneficial for companies. It affects efficiency of goods and services and hence, the profitability and sustainability of a company improves. Qantas has invested in bringing in new aircrafts which are fuel efficient; reduce carbon emissions thus reducing the expenditure on fuel. It has taken steps to improve their efficiency and services to the customers. Their employees have worked towards new and improved designs for the new aircrafts that reduces cost and improved services. They have cut down management layers, accelerated decision-making, encouraged innovation. Hence, productivity has increased significantly (Merkert Pearson, 2015). Globalization: To hold its position in the domestic and international aviation industry, Qantas has adopted globalization policies. It has planned to ensure its enhanced presence in Asia by investing in a brand new superior Asia based airline designed by Qantas experts but with a fresh name, advanced technology, alluring look and feel. A new cost-effective carrier Jetstar Japan was launched for domestic operations and within a year it will collaborate with Japanese brand icons like Japan Airlines and Mitsubishi. Recommendations: The entire airlines industry including the Australian giant Qantas must adopt certain measures to sustain in this market of cutthroat competition. Having an in depth knowledge of individual customers preferences and consumer related activities and analyzing it minutely is a must while delivering personalized service and targeted offerings. Qantas must induce themselves beyond their credence on existing loyalty programs, which instigates generation of suggestive consumer data and feed-back by evaluating the expenditure pattern through branded credit card of the respective airlines (Srisaeng, Baxter, Wild, 2015). Investment in advanced customer analytics is a vital issue but technology can never be the sole means to acquire that. Qantas must re-modify their structure and processes to insert customer service into their organizational ethos (Tribe, 2015). Major awareness of customer behavioral pattern develops intimacy thereby improving the targeted offerings. Such an approach enables them to gain a chance of generating ancillary revenue and greater percentage of sales through direct channels. Thus, they can sustain their premium position without alienating their customers. Eliminating the fat and not the muscle - While involving themselves in the process of expense reduction, they should not only determine how far to cut but from where to cut. This critical juncture to categorize the various sets of essential capabilities distinguishes them from their rival groups in the consumers perception. This area requires renewed investment so the management should reduce the other costs efficiently that are not concerned with safety, company image or customer value. Strategic partnership - Since the legal framework of re-construction and consolidation of bankruptcy is not targeted towards all markets and government regulation will consistently restrict consolidation, it is preferable for the aviation industry to opt for partnerships strategically (Perrott, 2015). These sensible conglomerations complement each other and shrink the unconcealed gaps. These partnerships are more focused and collegial than the conventional alliances, which curbs the potential of the airlines to diminish the rift with efficacy. Conclusion Qantas is the premium viable airline in Australia. Over the years, it has formulated capital expenditure focusing on growth opportunities to assure a powerful, viable business. Acquisition of more Airbus A320 aircraft to sustain the growth of group capacity, which constitutes aircraft for Jetstar Japan and Asia airlines, reconfiguring B747S and A380 for qualitative productivity, are the few immediate undertakings by Qantas group to withstand the continuous competitive encumbrance. Hence, we can conclude that Qantas, being an experienced player in the global volatile market, has acclimatized to all the complex factors revolving around from fluctuating industry expectations to oscillating government policies. It has strived for success and reputation frequently with margins proving its flexibility and responsiveness every time. Though it has traversed through a dark phase and was entitled as a corporate tragedy once, the current growth report blended with superior technology and consumer preference grants a real opportunity. 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