MMK 101
SHEGD1603
Sheptun Gleb
05/02/2017
Saturday 9:30am
John Boyd-Gerny
INTRODUCTION……………………………………………………………………………3
Summary assignment part B………………………………………………………………...3
Marketing mix………………………………………………………………………………..3
Product strategy……………………………………………………………………………...3
PLC……………………………………………………………………………………………3
Branding……………………………………………………………………………………….4
Packaging……………………………………………………………………………………...4
Labelling……………………………………………………………………………………….4
Quality…………………………………………………………………………………………5
Product Mix/Depth and Width………………………………………………………………...5
Augmented Services…………………………………………………………………………...5
Pricing strategy……………………………………………………………………………….5
Place…………………………………………………………………………………………...6
Channels……………………………………………………………………………………….6
Preferred Intensity of Distribution…………………………………………………………….6
Place of Retailers………………………………………………………………………………6
Promotional mix……………………………………………………………………………...6
People………………………………………………………………………………………….7
Process and Physical evidence ………………………………………………………………7
Recommendation……………………………………………………………………………..8
REFERENCES……………………………………………………………………………….8
Introduction
In this report I am going to show main information from assignment B also I will talk about marketing mix, product and pricing strategy, place of distribution, promotional mix and of course I will talk about people, process and physical evidence because Qantas domestic airlines offers service.
1. Summary assignment part B
In my previous assignment I said that Qantas better to target domestic and international students which age is 18-22, education-university, purchase occasion is special, usage rate will be medium because most amount of time they will study, region is Victoria, Melbourne because the most amount of student is here, density is urban and suburban because there are universities in city and outside the city, attitudes of current segment is young optimists because people who are optimists always go somewhere to find some good emotions and they must be young because young people always look for adventures. I recommended students segment because every year more and more students appear in all parts of Australia and I assume that Qantas has enough resources to enter that segment. Students are affected by a lot of external and internal factors like felling of independence or friends affect on them. Their parents are ready to pay and of course there are will be students who will buy the best service and spend the money irrational so it is easy to have high income on holiday time. Compare to old people student’s segment has more potential because amount of students much higher than old people.
2. Marketing mix
The set of controllable tactical marketing tools – product, price, place, promotion, people, process and physical evidence – that the firm blends to produce the response it wants in the target market (Kotler and Armstrong, 2015).
3. Product strategy
A) PLC
I assume that students travelling is absolutely new segment in all industry and not a lot of firms are targeting students as traveler right now but I think this industry has a great potential because now more and more travelling companies trying to get inside this new segment.
B) Branding
The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers (Business Dictionary, 2017). The creation of brand is very important because this is first thing that customers or people think when we talk about different companies. Picture, name are the most important because it means the attitude of the firm to customer for example when people think about Apple they assume that it is something simple but in the same time something important because in Christian and other religions it means something really important. I would offer to call new brand STStar which means Student Travelling Star and I assume this brand name have some advantages because in the mind of people it will associate with Jetstar so because Jetstar is good company they will think STStar is good company to travel too and second plus is that students will understand that this company for them and they will check what this firm offers for them. However, the most important thing in the name of Student Travelling Star is that in the mind of people star is the highest point or like super star on TV so rich students will prefer to choose this company because they will think that it is like super star in student travelling service.
C) Packaging
Packaging in airline industry is things like food in airplane or tickets and how the entertainment facilities are presented in airplane. I would say that students are young people and they need cool cars, clubs, tasty food and good music in airplane so I assume that STStar will realize it and when a student will buy a ticket they will ask him what music, meals, films would you prefer in plane also they can offer to rent a car and student will choose his car for trip in another city but the most important thing is offer best places to spend time like clubs theaters excursions and at last to ask a student does he or she prefer to buy all this stuff right now or after arriving on place. And of course a good idea to do is to send a member card by mail because this will cause loyalty to brand. At last it must be that all kind of packaging are labelled and be in modern style.
D) Labelling
Labelling is very hard part to do because your label must be everywhere but in the same time if people see your brand everywhere they can start hate it so I would offer to put labels very careful on the airplanes, on some university magazines, on the package of food in airplane on the cloth of staff and of course creation of some things useful for students like pens or notebooks, travell bags but it will be bad idea to put your label on cloth or bags because we target rich students and as I can assume they don’t like to use something cheap or free because they can’t show off with this.
E) Quality
Performance – Qantas has new fast airplanes and 80% of flights were departure and arrived exactly on time (Bitre Navigation, 2017).
Features – Qantas group has QCatering which firm that provide food and drinks for airplanes so it means fresh food and high quality drinks for passengers will be provided but the most important thing that Qantas has a lot of entertainment facilities like Wi-Fi and a library of thousands of movies.
Reliability - Qantas is the best in the rank of safety flights (Smith, 2017). It means customers do not need to afraid of something unpredictable and they can rely on this company
Conformance – Qantas has very comfortable sits, very polite service and quite good timetable so it means people who value their time more than money will chose Qantas.
Durability – For airline company I would say it is the same as reliability.
Serviceability – Qantas offers many services but not all of them are realised good so Qantas need to work harder to satisfy their clients (Airlinequality, 2017)
Aesthetics – A lot of customers agree that they like taste of food smell and how plane look inside and outside but the most pleasure for them is like staff look.
Perceived quality – Qantas has been named as best airline company in Australia and the symbol of it is kangaroo so in the mind of a people Qantas represents all Australia and this makes value for customer to use Qantas (Escape, 2014)
F) Product Mix/Depth and Width
Width
Qantas offers 4 classes Business class, first class and economy and premium economy classes (Qantas, 2017)
Depth
Qantas offers places for fat people, for small children or babies, and special places for legs even for invalids, different animals (Qantas, 2017)
G) Augmented Services
Augmented services will be delivery to airport and delivery to your hotel also can be service like helping you to find best places to visit, best hotel for you and of course offer you to help rent a car or buy tickets for all-important events if you would like to visit. These services will create a feeling of importance of our customer and will cause loyalty to brand.
4. Pricing strategy
I can say that Qantas would choose marketing skimming pricing because they will target rich students so we can assume that these student will not look at price of different services because their parents pay for them but they will look for entertaining and luxurious life spending so Qantas can high up the prices and offer more services to buy for expensive prices.
5. Place
A) Channels
We target students so it is new generations so of course we need to use internet and social networks like Facebook, snapchat, Instagram to attract customers because research shows that young people check social networks 8 hours per day (Tsukayama, 2015). And we will use university magazines to encourage students travel with us because we assume that the most information about university students get from university advertising in university magazines.
B) Preferred Intensity of Distribution
Qantas uses selective distribution for their services because customers can buy their tickets in resellers store and other internet resources like sky scanner and aviasales also they can buy in different Qantas branches.
C) Place of Retailers
Place is another very important aspect but I assume that it will be great idea to use website to sell tickets and other augmented services because students do not have time to go somewhere they just want to plan their journey in their houses or apartments but of course we will have offices in which students that do not prefer to buy tickets online will have help from our agent because for example people from Indonesia always buy tickets from agent not online and we cannot remove them because they are a big part of our segment (Quora, 2017).
6. Promotional mix
Advertising
We are going to create new brand so we will advertise a lot to encourage first customers to use our airline. So we choose strategy
Sales promotion
We target rich students so it means they want high quality service for high price because they hate something cheap because if it is cheap you can’t show off. That is a reason why sales promotion is only 5%.
Personal selling
Like I said before not all of modern students can or like to use internet for buying tickets and I assume there are a lot of students like that so we need to use our people to help them buy our product.
Public relations
I think we will not help society a lot but we can afford to create some work places for students to practise for their future job. So in the mind of students they will think that this company take care about my future.
Direct and digital marketing
The most important for us will be second consumption because students need to trust our company and if they understand that company take care about them they will come back again and again.
7. People
People who will realize our service will be our staff with knowledge of English because it is international language they will be always ready to help our customers. First it will be people who sit in the office to help our customer with planning their trip, next are going people in the airport this people will be women because research shows that people prefer more women as a staff in airplane than men.
8. Process and Physical Evidence
At first customer will find about this program on the internet or in university magazines than he will call our staff in the office or he can go to our branch and he will speak about his trip when all trip is planned, staff will say price and customer will pay after that our staff will start to work and realize customer preferences if it is new customer he will have a membership card which offers better service and next the driver will deliver customer to airport than customer will go to airplane and staff must ask him would he like to drink something. At the time of flight customer will eat food that he ordered when he planned his trip and listen to music or watch films that he planned. At the end in the airport customer will be delivered to hotel and in hotel will be envelope with tickets and timetables of different events. Outside the hotel a car that customer rent will wait him, the keys for car will be in the envelope. And also customer can call to his agent in our office and ask any information that he likes to know.
9. Recommendation
I would like to say that it is wonderful idea to realize this segment because Qantas has all resources to realize it and of course students have money for expensive services and students are young and every holidays they would like to travel in different interesting places around the world so every holiday Qantas can make enormous amount of profit.
References
Kotler, P. and Armstrong, G. (2015) Principles of marketing. Harlow, United Kingdom: Pearson Education.
Business dictionary (2017) What comes after those ellipses? http://www.businessdictionary.com/definition/branding.html
Smith, O. (2017) The world’s safest - and least safe - airlines revealed. http://www.telegraph.co.uk/travel/news/The-worlds-safest-airlines-revealed/
Bitre Navigation (2017) Airline on time performance statistics —Monthly. https://bitre.gov.au/statistics/aviation/otp_month.aspx
Airlinequality (2017), Qantas.
http://www.airlinequality.com/airline-reviews/qantas-airways/
Escape (2014) How Australia’s best airline compares. http://www.escape.com.au/travel-advice/which-is-australias-best-airline-qantas-jetstar-and-virgin-australia-all-claim-victories-in-skytrax-world-airline-awards/news-story/094f976c98ad21a38255131b6c1b9952
Quora (2017), What is the best way to buy a plane ticket for a local flight in Indonesia? https://www.quora.com/What-is-the-best-way-to-buy-a-plane-ticket-for-a-local-flight-in-Indonesia
Tsukayama, H.T.H. (2015) Teens spend nearly nine hours every day consuming media. https://www.washingtonpost.com/news/the-switch/wp/2015/11/03/teens-spend-nearly-nine-hours-every-day-consuming-media/?utm_term=.4d3df2f98952
Qantas (2017) Travel classes.
http://www.qantas.com/travel/airlines/travel-classes/global/en
Qantas (2017) Specific needs.
http://www.qantas.com/travel/airlines/special-travel-needs/global/en