This report eventually illustrates the impact of the different markets on the performance and the operations of a company. The company chosen in this case has been the Qantas Airlines and the target market has been Australia. The report encompasses the description of the macro as well as micro environmental factors and their impact on the development and operations of Qantas Airlines in Australia. The report also encompasses the ways by which the Qantas Airlines implements the 4Ps of Marketing and their impact on organisational development and operations. Finally, conclusions and recommendations for the improvement in the operational as well as the market environment for Qantas Airlines have been suggested.
The modern business world experiences fierce competitive rivalry. In a world where there are many companies with similar product and service offerings, it has become crucial for businesses to employ tactical marketing decisions as these decisions may act as the only most vital distinguishing element that may differentiate the industry leaders from the other players in the market. In this context, it may be said that the marketing decisions made by Qantas Airlines reflect their marketing mix or the 4P's of marketing. Through efficient management of these strategies, it becomes possible for the company to emerge victorious by conquering the various inner as well as exterior organisational marketing constraints (White, 2018). Qantas Airlines is one of the most competitive players in the Australian aviation sector and majorly dominates the local aviation market. In 2018, Qantas Airlines carried the most passengers back and forth Australia. However, after the global financial meltdown, the extremely flourishing aviation market of Australia has faced a slight decline in performance. Additionally, the competitive pressure from the presence of low-cost-carriers is one the rise. Therefore, this essay emphasises on the analysis of the marketing environment in which Qantas Airlines performs and sheds light on the various marketing mix tactics that may be used by the company to improve its overall performance.
The Macro environment of the company is governed by a set of different attributes and parameters that make up the entire process sustainable. These include the analysis of the political environment of the company, the socio-cultural environment of the company, the economic environment of the company, the technological environment of the company, the legal environment of the company and the environmental processes around the company (White, 2018). These parameters ensure that the company has a significant advantage in the market by careful analysis and the development of the strategies associated with these factors.
The socio-cultural environment has been one of the macro-environmental factors that have their desired importance on the operations of the company. It determines the adaptability of the company to the differences in the social and cultural differences brought about by the customers of the market. It is observed that Australia has several customers belonging to a wide variety of caste, culture, religion, nationality, race, creed and language (Pike, 2016). The attributes and the expressions of these individuals tend to be different from one another. Therefore, it becomes important for companies offering services to ensure that individuals are treated equally and have equal services provided to them. Qantas Airlines, in this case, has been found to have an operational strategy and a customer service strategy that are extremely diverse. In this case, the diverse customer services provide the ability to Qantas Airlines to ensure that the customers are well satisfied with the services offered by them (Baxter, Srisaeng and Wild, 2018). It also suggests that the customers can have equal support and facilities that the other section of the customers belonging to the majority of the population receive. If the customers were not appropriate for Qantas Airlines, the company would have witnessed a gradual decline in the number of customers leading to severe losses.
The technological environment has been an important area of operations that are a part of the macro-environmental factors associated with Qantas Airlines. The technology is an important factor in this case, as it determines the number of constraints. These include the use of technology in the management and operations of the company. It also includes the ease at which these are implemented by the company, the quality of control and the expertise to use. In the case of Qantas Airlines, it has been that the customers have been faced with the advancement in the use of technology (Leung, Yen and Lohmann, 2017). This has been implied by Qantas Airlines by incorporating new technology manifestations in their fields of operations. The advanced equipment for storage, billing, fooding, ticketing and placing of luggage and the amenities have been unique for the company. This has attracted a large number of customers to Qantas Airlines. If these technologies were not adopted by Qantas Airlines, the customer preferences would have shifted to the other companies that offered these. Therefore, this has been an important parameter of marketing and business for Qantas Airlines.
The Microenvironment of a company revolves around utilising many parameters. These parameters include competitors and customers. Additional parameters of their environment account to the Suppliers and the Employees. A network of formal attributes also leads to the constitution of the microenvironment. These include the media and shareholders. All these parameters combine to produce a formidable plan for the company to have the desired operation meeting all the objectives in a particular market (Pike, 2016). A formal illustration of each of these parameters and their impact on Qantas Airlines as a whole is represented under its operations and adaptability to situations.
Customers or the passengers in the case of Qantas Airlines are one of the major factors that the company focuses on. The major objective of the company has been the development of the plans that involve the happiness and the sustainability of the customers. The customers or the passenger based in Australia has been seen to have a higher standard of living in the ear of globalisation as compared to that of the previous times. The net levels of income among the Australians have been seen to be escalated by about 17% in the last 3 years (Crotty, 2018). Customers have developed their sense of intellect and are able to spend more on the service if the standard of services is comfortable and high.
The company has been laden with the increase in the number of shareholders since the onset of 2016. This accounts to the higher profit stakes of the Qantas Airlines in the stock markets and also the high customer turnover. The company provides a number of other features including the high payback on ticket cancellation and other unique USP that have allowed them to have a higher value of shareholders in the market. The Return on Investment of Qantas Airlines has been reasonably high in the 2017-2018 (White, 2018). This has accounted for a higher number of shareholders for Qantas Airlines. The company offers a healthy rate of interest on the dividends thereby making it as one of the leading airlines in Australia.
The number of competitors for Qantas Airlines has been very high. This has been a result of the number of the other Airlines Company operating within Australia. The competitors in Australia include the other airline companies including the Jetstar Airways that has provided a high level of competition to Qantas Airlines. Other competitors including the Virgin Australia Airlines have also provided the company with a very high competition due to their innovative strategies and their superior quality of services in recent years. In this case, it may be noted that if the Qantas Airlines does not have a suitable strategy that may attract the customers more, severe losses may be encountered by the company (Bellin, 2016). Therefore, the onset of developments represents that the company must be unique in their strategy development in such a way that the company stands out the most profitable in the entire Australian market.
Qantas Airlines is best known for its high grade travelling arrangements. The merchandise offered by Qantas Airlines includes freight storage containers and travelling accommodations for passengers. There is a varying range of flying preparations including high-quality economy, international business class, first-class and international economy. In addition to that, each of these classes is provided with amenities and food. There are market and independent business classes for the domestic flights which are provided with in-flight entertainment services (Baxter, Srisaeng and Wild, 2018). Qantas Airline emphasise on augmenting the current range of products with automated services. For instance, the passengers can avail details on their flights via the online website or by SMS. Currently, the organisation is attempting to acquire 2 Boeing 787s to increase its fleet size and passenger capacity. In addition to that, Qantas Airlines focuses on providing the best of entertainment services to onboard passengers (Gao and Choy, 2019). The key highlights of the services provided by Qantas Airlines include their promise of safety, comfort and great service quality to the passengers. In addition to these, Qantas Airlines and Jetstar Airways are two of the most cost-efficient low-cost carriers in Australia that handle manoeuvres linked to air cargo. For the services associated with freight, Qantas Airlines promises to have the most efficient tracking system which is a key highlight of their marketing communication message. It may be said in this context that Qantas Airlines is easily one of the most vital and most successful carriers in the Australian aviation sector and is a tough competitor to the other players in the Australian aviation industry.
The modern market has suggested that the price play an important for the companies to ensure that they maintain a competitive position in the market. It is observed that the developments in the organisational perspectives and implementation are thoroughly regulated by the significant variations in the prices. It is noted that the developments in the products or services offered by the companies are aligned with a reduction in the prices, to enjoy the advanced attraction of the customers. In the context of Qantas Airlines, it is observed that the prices of the executive class, business class and the general classes are variable (Thompson, 2016). On the other hand, the prices of the general and the executive class have been significantly lower, as compared to the competitors including Virgin Australia. This strategy has provided the ability to Qantas Airlines to allow them to attract a large number of middle-class customers. On the other hand, the Business class has a higher fare as compared to the other airways. However, this class is dominated by loyal customers who prefer their loyal companies (Chikweche, 2015). Therefore, the customers have been able to afford the business class of the airlines, due to their superior services and loyalty. However, the company has been surprisingly able to restore the customers by dropping their fares for the economy and the general classes.
The company has been found to operate in a variable place. This has been possible employing their different booking centres in different parts of Australia. Qantas Airlines has its registered booking vendors that operate both electronically and physically in their stores in different parts of the major cities of the country. This has provided the ability to the customers to easily book their tickets. Additionally, the company has been able to attract a large number of customers by this method. Moreover, the company is operational across different countries (Lehman, Wickham and Reiser, 2017). These are based on the levels of customer visits. The company has a marked presence in different world-class cities all around the globe. Additionally, the online ticketing systems have added to the development of the company to be operational at every place and at all times. Therefore, this determines that the place of operations of Qantas Airline play a vital role in their market growth and development due to its wide presence.
Qantas Airlines has diverse promotional channels for their services. These include electronic media, television, magazines, social media, billboard advertisements and cricket sponsorship. The incorporation of these diverse forms of promotional channels and activities have allowed Qantas Airlines to emerge as a flagship airline brand in Australia. Promotion as the "Heart of Australia" is portrayed through its logo and its environmental concerns in their advertisements (Raynes and Tsui, 2019). Additionally, its support activities for the society and people have also led to the company to emerge as a giant in the aviation sector of Australia. Moreover, its involvement in cricket and rugby have allowed millions of people all around the world to easily recognise the brand internationally and thereby enable the company to develop its strong brand presence and thereby attract a huge number of customers from all over the world and Australia as well. These promotional activities levy a significant cost to the company, but at the same time, it provides huge revenue of profit to the company in a very small period of time.
From the above analysis and discussions, several conclusions may be eventually made. Firstly, it may be concluded that the development of a positive market approach may allow Qantas Airlines to augment their services in the micro as well as the micro environmental levels of the market. Secondly, the implementation of the marketing mix and their eventual outcomes may impact the overall organisation in terms of the benefits and the competitive advantage offered to the customers as well as the company. Thirdly, the promotional services of the company have allowed Qantas Airlines to achieve substantial developments and customer attractiveness in recent years.