Qantas Market Positioning

Summary

This video explains how Qantas uses positioning as a marketing strategy to target leisure and business travelers. It highlights Qantas' dual-brand approach, with Jetstar catering to cost-sensitive leisure travelers and Qantas focusing on business travelers with flexible flight options. By offering competitive fares, reward programs, and premium services, Qantas maintains a competitive advantage. The video also discusses Qantas' efforts to build a strong brand identity through its full fare ticket flexibility and frequent flyer schemes, ensuring long-term brand positioning and customer loyalty.

Takeaways

• 😀 Positioning refers to the consumer's perception of a brand or product in relation to competitors.
• 😀 Qantas targets two major customer segments: leisure travelers and business travelers.
• 😀 Jetstar is positioned as a low-fare airline targeting cost-sensitive leisure travelers.
• 😀 Qantas positions itself as a flexible, on-time airline ideal for business travelers.
• 😀 Qantas offers full-fare tickets that allow customers to change their flight date and time without extra charges.
• 😀 Jetstar's competitive advantage lies in offering low fares and high value, especially during holiday seasons.
• 😀 Qantas uses its dual brand strategy (Jetstar and Qantas) to cater to different customer needs.
• 😀 Qantas launched Jetstar in 2003 to reclaim market share from its main domestic competitor, Virgin Blue.
• 😀 Qantas offers additional value through reward programs like the frequent flyer scheme and Qantas Club services.
• 😀 Qantas’ positioning strategy emphasizes the creation of unique products that customers are willing to pay more for.
• 😀 The positioning of Qantas and Jetstar must be maintained over time by adapting marketing strategies to reinforce customer perceptions.

Q & A

What is positioning in the context of marketing?

Positioning refers to the consumer's perception of a brand or product in relation to its competitors. It focuses on how a brand is viewed in the marketplace and how it differentiates itself from others.

How does Qantas segment its customer base?

Qantas serves two major customer segments: leisure travelers and business travelers. Each segment has distinct needs, and Qantas caters to these with tailored strategies, including the use of its dual brand strategy of Qantas and Jetstar.

What is Qantas' strategy for targeting leisure travelers?

Qantas targets leisure travelers through its low-cost brand, Jetstar. Jetstar is positioned as an airline that offers low fares and high value, appealing to cost-sensitive travelers by providing competitive fares and promotions, particularly during holiday seasons.

How does Qantas position itself to appeal to business travelers?

Qantas positions itself as the airline of choice for business travelers by offering on-time flights, flexible booking schedules, and premium services. It also emphasizes the convenience of flexible flight changes through full fare tickets without additional charges.

What is the role of the frequent flyer program in Qantas' positioning strategy?

The frequent flyer program is part of Qantas' strategy to strengthen its position among business and leisure travelers by offering rewards. It incentivizes customer loyalty and creates a perception of added value in Qantas' services.

How did Qantas compete with Virgin Blue using its dual brand strategy?

In 2003, Qantas launched Jetstar as a low-cost airline to compete with Virgin Blue in the domestic market. This move allowed Qantas to increase its market share, create a competitive advantage, and cover more customer segments.

What differentiates Jetstar's positioning from Qantas' main brand?

Jetstar is positioned as a low-fare airline targeting budget-conscious travelers, offering cost-effective services with promotions. In contrast, Qantas is positioned as a more premium airline with differentiated services such as flexible flights and premium lounges, appealing to business travelers.

Why is it important for a brand to maintain its positioning over time?

Maintaining brand positioning over time is essential to reinforce the target market's perceptions. This requires continuous adjustments to marketing strategies, ensuring that customers continue to view the brand in a way that supports its competitive advantage.

What role do Qantas lounges play in its positioning strategy?

Qantas lounges contribute to its positioning as a premium airline by providing exclusive access to business travelers. With 53 lounge locations globally, including new ones built in the last five years, Qantas emphasizes the quality and exclusivity of its services to reinforce its brand image.

How does Qantas create a competitive advantage with its dual brand strategy?

Qantas creates a competitive advantage by using the dual brand strategy of Qantas and Jetstar. Jetstar positions itself as a cost leader, appealing to budget-conscious travelers, while Qantas differentiates itself with premium services, allowing it to capture a wider market share.