Executive Summary
This report entails an analysis of market communication within organizations. To provide a real life situation, the report entails an analysis of how market communication that has been integrated by Qantas Airline. The report gives the background information on the concept of market communication within organizations. The report also illustrates the various market communication strategies used by Qantas Airline.
In the report, both traditional and emerging market communication strategies are considered. The report considers a number of marketing communication strategies such as advertsising, public relations, and direct marketing. Furthermore, the report also highlights the effective sue of non traditional marketing initiatives such as the employment of web based communication tools. The paper highlights some of the tools that available for utilization by the company such as social median nd the company’s website.
In order to develop a comprehensive understanding of how Qantas Airlines uses these strategies, the report has illustrates the various mediums used by the firm. Some of the mediums considered include use of television, radio, and billboards. Additionally, the report illustrates the emerging market communication mediums used by the firm. Some of the emerging marketing tools that the paper highlights as useful to Qantas include Facebook, twitter and YouTube.
The report also evaluates the various factors contributing towards Qantas Airline success in its marketing communication, such as adoption of social media marketing, and the collaborative marketing drives with strategic business partners .Finally, a conclusion on the importance and the effectiveness of the company’s current marketing strategies, their advantages and shortcomings is offered. The paper also offers recommendations on the new strategies in marketing communications that the company needs to adopt.
Introduction
This report is aimed at conducting an analysis on marketing communication strategies that Qantas airline has incorporated in its operation. Communication entails the process of exchanging information through symbols and words. The objective of communication is to develop a common understanding. Communication is a critical component in the success of businesses.
Currently, the global airline industry is characterized by an increment in the intensity of competition. As a result, it is critical for firms to incorporate an effective marketing communication (Ferrel & Hartline, 2008, p.23). One of the ways through which an organization can achieve this is by integrating both internal and external communication network (Merrier, Logan &Williams, p.3).
In their operation, organizations should consider communication as one of the most important elements. Communication plays an important role for example in giving instructions and guidance. Through effective communication, an organization is able to develop a strong relationship with its stakeholders (Bartels & Nelissen, 2002, p.34).
Qantas has put in place effective communication strategies that are aimed at ensuring effective and timely dissemination of information to all stakeholders. In its communication policy for shareholders, the company has endeavored to publish not only information on its current operations but other relevant managemt information that is suitable for its investors in Qantas investor’s website (Qantas, 2010, p. 7).
Furthermore, the company has looked beyond traditional marketing tools such as media releases and is now engaging such modern marketing tools such as social media. Through such social media tools such as Facebook twitter and YouTube the company is able to initiate direct and timely communication with its clients.
Background to the study
Qantas Airline has been in operation for a considerable duration in Australia. The firm has managed to attain a strong market position within Australia. Currently, the airline is considered to be one of the leading long distance airlines in the country. Additionally, the firm has also developed a strong brand reputation amongst its customers. In an effort to attain its profit maximization objective, the firm has ventured into the international market.
Currently, the firm has a human resource base of more than 35,000 skilled employees which makes it one of the best Airlines in Australia. In its quest to increase its profit, Qantas changed its management team and reformulated its goals. In 2009, Qantas catered for more than 38 million passengers. As a result of increment in the number of customers, Qantas Airline purchased a new aircraft known as the A380. The decision to purchase the aircraft was motivated by the need to serve its customers more effectively.
The firm has also incorporated the internationalisation strategy by expanding into the international market. It is the firm’s objective to necome one the biggest airlines in world. To achieve this, the firm has engaged itself in a market awareness campaign. One of the strategies that the firm has incorporated entails use of advertising.
Advertising is a good communication between a company and their customers. It plays a strong impact on the society which helps a lot of companies to increase their profit and their Reputation. Qantas use TV, website, newspaper and street board as tools to advertise their news. In a way to increase the communication between the company and the customers, Qantas have to make some Questionnaire and be active with Complaints.
In its internationalization strategy, it is the firm’s objective to attain a high market share. In order to achieve its objective, the firm has also improved its operation by purchasing more effective aircrafts such as the Airbus A380s.
It is also paramount for the firm’s management team to incorporate effective marketing communication (Belliotti, 2008, p.32).
Aim
This report is aimed at conducting an analysis on marketing communication strategies that Qantas airline has incorporated in its operation.
Scope
The report is composed of various sections. The first section entails an analysis of market communication within the airline industry. The second section outlines the integrated market communication strategies adopted by Qantas Airline. These include both traditional and emerging marketing communication. In the third section, the report illustrates the various factors contributing to Qantas Airline success in its marketing communication.Finally, a conclusion and a number of recommendations are outlined.
Analysis
Market Communication
The success of firms in different economic sector is dependent on the effectiveness with which it undertakes its marketing. Kimmel (2005, p.1), is of the opinion that marketing communication is one of the ways through which a firm can attain its profit maximisation objective.
This arises from the fact that it contributes towards creating product awareness which is one of the steps that motivates consumers to consider purchasing a particular product in their purchasing process (Carkenord, 2009, p.3). Marketing communication is also paramount since it creates a link between a firm and its competitors.
However, Rao (n.d) asserts that marketing within the services industry is challenging. As a result, marketing within the airline industry which is a service sector is a demanding task. This arises from the fact that it entails converting seats into sales revenue. Since its inception, the airline’s management team has been committed at ensuring that a large number of customers are aware of its products. In order to achieve this, the airline has incorporated the concept of integrated marketing communication.
Integrated marketing communication
Integrated Marketing Communication (IMC) entails integration of various marketing communication methods (Russel & Taylor, 2004, p. 56). IMC entails incorporation of both traditional and emerging marketing communication strategies. Jain (2008, p.3) is of the opinion that IMC contributes towards value addition in a firm’s effort to create market awareness.
In its operation, Qantas Airlines has taken into consideration the importance of incorporating an effective marketing communication which entails incorporation of both traditional and emerging marketing communication methods in an effort to succeed in the international market. This is evident in that the firm has incorporated a wide range of marketing communication methods.
Some of the marketing communication techniques which the firm uses entail use of advertising, public relations, direct marketing, and sales promotion. In its advertising strategy, Qantas Airlines has incorporated different mediums which entail emerging and conventional marketing communication mediums.
Traditional advertising mediums
In order to reach all the customer categories, firms should incorporate traditional marketing communication methods. This arises from the fact that it is not all individuals who are versed with emerging marketing communication technologies (Gitman & McDaniel, 2009).
In its operation, the traditional methods which the firm uses entail use of print media such as newspaper and magazines, radio and television. Additionally, the firm also uses different outdoor advertising mediums such as billboards, poster and branding its vehicles with promotion messages.
In effort to create market awareness, Qantas Airline has developed a press office. The core role of the press office is to deal with direct communication. Through the press office, the firm is able to pass information regarding various issues to the journalists. Some of the information which the firm communicates through the press office relates to incorporation of new routes in its flight schedule.
Considering the fact that the firm deals with both individual and institution customers, Qantas Airlines has incorporated direct mails in its market communication. The direct mails have enabled the firm to develop a strong relationship with institutional customers. This arises from the fact that the firm is able to interact effectively with the customers.
In its outdoor advertising using bill boards, Qantas Airlines has entered into a contract with outdoor advertising companies which have their bill boards strategically located. In order to create effective awareness, Qantas Airlines ensures that its logo is appropriately displayed.
In all these adverts, the airline ensures that its distinctive logo is clearly visible. In its advertising, the airline uses catchy slogans which influence both individuals and organizational customers within Australia to consider the firm in their purchasing process.
For example, one of the television commercials that the firm uses is ‘I still call Australia home’. This makes the consumers to consider Qantas Airline to be a part of the Australian society. The resultant effect is that the firm is able to stimulate brand loyalty within its domestic market.
Attaining a strong market position is an effective strategy that a firm should consider. This arises from the fact that market position acts as a competitive advantage to a firm (Knox, 2004, p. 23). In an effort to position itself in the market, the airline developed a number of advertising commercials. One of this commercial is ‘The Spirit of Tomorrow’. In this commercial, the firm depicts its commitment in improving its operation within Australia.
Qantas Airline has also undertaken marketing communication through being involved in public relations. One of the ways through which the firm has achieved this is by sponsoring various sporting events. Within Australia, the airline associates itself with different sports such as soccer, athletics, football and rugby.
For example, Qantas Airline has entered into a sponsoring relationship with the Australian Rugby Union by sponsoring various rugby events. The airline is considered to be the official airline with regard to Qantas Wallabies. Qantas Airline also associates itself with the Australian Olympic Committee by supporting the Australian Olympic team for a considerable duration.
The firm also participates in Olympic festivals which presents the firm with an opportunity to communicate to a large number of sports enthusiasts. Through public relation, the firm is able to make a strong bond with its target clients. This increases the probability of the sports enthusiasts considering the airline in the process of making travel decisions.
In addition, Qantas Airline has also incorporated the concept of using celebrities to be its ambassadors. These celebrities have played an important role in popularising Qantas Airlines both in the domestic and the international market. Some of the ambassadors that the firm has used include Mark Webber who was a renowned motorsport champion especially with regard to open wheel racing such as Formula 1.
A second ambassador is Mark Schwarzer who is a renowned Australian goalkeeper. John Eales a famous rugby player and Catherine Freeman a renowned runner have also been effective ambassadors of Qantas Airlines. Within the golfing sports, Greg Norman was the firms’ ambassador since 1976 to 2001 when he was inducted in the Hall of Fame. By using celebrities, the firm has been effective in developing awareness amongst the customers.
Emerging marketing communication tools
Over the past decade, there has been a rise in the degree of rivalry within the airline industry. One of the factors which have stimulated this is the high rate of globalization and economic integration. These two factors are making it possible for airlines companies to expand their market. The resultant effect is that the intensity of competition has increased.
In an effort to enhance their competitive advantage through creating market awareness, most airline firms have integrated the internet in their marketing strategies. Qantas Airline’s management team has appreciated the fact that it can enhance its product awareness through integration of emerging Information Communication Technology (ICT) (Ferreri, 2008, p.33). One of the strategies which the firm has integrated is electronic commerce in communicating to the market.
One of the ways through which the airline has attained this is by developing a website (www.qantas.com) through which consumers can access information regarding the firm’s products. Through its internet marketing the firm has been able to communicate with a wide range of customers more efficiently. For example, the internet has enabled the firm’s customers to be more efficient in booking for their flight online. Additionally, customers can also be able to access information regarding flight routes.
Through the internet, the airline has been able to develop a strong relationship with its customers. This arises from the fact that the firm has been able to customer database that has enabled the firm to customize its services. In an effort to provide its customers which more information, the firm has also expanded its internet services to its aircrafts. The firm has achieved this by ensuring that the customers can be able to access its website during their flight.
In its internet marketing, the airline has also entered into a contract with major search engines which include Yahoo and Google. The contract entails posting the firm’s adverts on the home page of sites hosted by these companies. The resultant effect is that the firm has been able to create sufficient market awareness. This arises from the fact that a large number of customers access these search engines on a daily bases.
Qantas Airlines also appreciates emerging social networking tools. As a result, the firm has incorporated social networking tools in its marketing communication. Some of the social networking tools that the firm has integrated include the Face book, You Tube, Blogs and Wikis. These tools have presented the firm with an opportunity to interact with the customers.
For example, the You Tube has enabled the firm to be effective in creating market awareness regarding its services. For example, the firm posts commercials it hosts on the television on You Tube. The resultant effect is that the firm will be able to communicate to a large number of customers. According to Longenecker (2010, p.56), You Tube has become prominent amongst individuals. Additionally, using You Tube is also a cost effective method of market ensuring sufficient market awareness.
Verma (2008, p.50) is of the opinion that social networking tools have undergone significant transformation over the past few years. As a result, it is paramount for firms to consider integrating these tools in their marketing efforts. In its operation, Qantas Airline has taken this into consideration.
One of the ways through which the firm is implementing this entails use of Face book, Wikis and Blogs has enabled Qantas Airlines to create an interactive environment between potential customers and the firm. Additionally, these social networking tools enable customers to create awareness regarding the firm’s products to their colleagues. Additionally, the social networking tools provide a platform through which customers interact with the customers.
This arises from the fact that the customers can be able to communicate their opinions to the management. Through the social networking tools, customers are able to make their opinion and complaints known to the management team. This has played a critical role in Qantas Airline’s effort to improve its market communication. This means that integration of Wikis and Blogs does not only act as an informative strategy but also as an interactive strategy.
In its communication policy for shareholders, the company has endeavored to publish not only information on its current operations but other relevant managemt information that is suitable for its investors in Qantas investor’s website (Qantas, 2010, p. 7).
In this regard, the company looks beyond traditional communication tools and is now embracing non traditional marketing such as social media. While the adoption of social media tools has been a hard lesson to learn for Qantas its benefits are clearly evident. One of the social media tools that the company uses effectively is Facebook.
The decisions to opt for Facebook has been motivated by the fact that the company needed to engage its customers directly. While the traditional media releases have served the company well in the past, Facebook is a new avenues that helps the company communicate directly with its clients and thus avoid the risk of traditional media speculations about the company’s operations which destroy the company’s reputation. Additionally, the company finds Facebook as an efficient communication strategy in management of crises.
This is because traditional media releases are bureaucratic, while Facebook is more instant and direct to its consumers. As such through, in the face of crises, Facebook the company is able to reach its clients directly and fast in efforts to control the spread of malicious information. The company is also using Facebook to communicate to its clients about new products and services (Qantas, 2011).
Factors contributing to Qantas Airline success in marketing communication
In its market communication, Qantas Airline has been effective. The success has been as a result of a number of factors. As mentioned earlier, one of the factors that has lead to the success of Qantas market communication strategies has been the company’s adoption of social media marketing.
The company operates both Facebook (facebook.com/Qantas) and twitter (@QantasMedia) accounts. Through these social media tools the company is not only able to launch new products and services but also engage its clients in other marketing initiatives such as promotions (Qantas, 2011).
Another factor that makes the company’s’ communication strategies successful is the company’s adoption of a specialised corporate marketing team, which is charged with the responsibility of handling media relations. This team is in charge of such marketing initiatives such as advertising campaigns for new and innovative products. Furthermore, the team was also given the mandate to popularise the Qantas acquisition of the world fastest aircraft (Qantas, 2007).
Additionally, Qantas engages in other types of marketing activities such as joint promotional events with strategic business partners. Some of these events include a tourist promotional event dubbed Australia G’Day, in collaboration with Australian tourism authorities. This event was aimed at popularising the company’s products and services amongst tourists. Due to the success of the campaign, Qantas launched similar initiatives in the United States of America.
The company also sees proper planning of marketing initiative as a fundamental factor that will ensure success of its marketing communication. Qantas in realization of the need to realize profitable returns plans and develops its marketing communication process so as to enable the company not only meet the needs of its consumer but also deliver new products and service.
As such the planning of the company’s marketing communication strategies in alignment with informing its consumers of the availability of new products and services such as Qantas Courier.
Other than the factors mentioned above, the segmentation of the company’s markets and the development of market specific communication strategies have made Qantas marketing strategies top be even more effective. Qantas segment its markets and develops specific marketing strategies for those particular markets, with the intentions of developing and using customer specific marketing communication strategies.
This is advantageous since it also allows the company to reach target client in specific markets segments. For instance the company has segmented its leisure market into various sub-segments such as price sensitive domestic and international. Qantas established Jetstar to serves the price sensitive leisure market segment. In efforts to reach the target audience, the company has to develop market communication strategies specific for this market segment (Qantas, 2009)
Conclusion
The analysis has illustrated that marketing communication is critical in the success of firms in the market. This arises from the fact that marketing communication enables business firms to be effective in positioning themselves in the market. Through effective market positioning, a firm is able to attain a high competitive advantage.
Additionally, marketing communication can contribute towards a firm attaining its profit maximisation objective. This arises from the fact that market communication enables a firm to increase its customer base. Additionally, market communication contributes towards a firm developing a high level of customer loyalty.
In its operation, Qantas Airlines has been effective in marketing communication. The firm has managed to achieve this through integration of integrated marketing communication. Through IMC, the firm has been able to incorporate both emerging and traditional marketing communication strategies.
Through conventional marketing communication such as use of advertising, sponsoring and public relations, the firm has been able to reach a wide market both locally and internationally. This has further been enhanced through integration of different mediums in its advertising such as use of television, radio, print media such as newspapers and magazines and outdoor advertising.
Through integration of emerging marketing communication technologies such as use of social networking tools, Qantas Airline has been able to develop a strong relationship with its customers. This arises from the fact that these tools provide an opportunity to customers to communicate with Qantas Airline management team.
Recommendations
Despite the firm’s effectiveness in its marketing communication, the airline should consider ways of enhancing its marketing communication. One of the ways through which the firm should achieve this is by allowing timely use of social media in its communication strategies.
Facebook has been useful as a communication strategy. However, the company needs to compare the most effective social media tool among the ones available. In this regard, the company would engage twitter as the most effective en d real time marketing communication tool.
This is informed by the fact that twitter is more real-time and conveys information in real time as compared to other social media tools such as Facebook. By doing this the company will not only be able to communicate instant marketing information to consumer but also handle communication about crises effectively. This is an effective damage control mechanism.
Considering the fact that Qantas Airline is committed at establishing itself in the international market, the firm should take into consideration the existence of cross-border differences. Some of the cross border elements that the firm should take into consideration relate to the customers language and culture. According to Rao (n.d, p.65), firms may face a challenge in their effort to create awareness in the international market.
This arises from the fact that words have different meaning from country to country. Existence of difference in meaning of words can result into emergence of language barrier in the international market. Language barrier may limit the effectiveness with which Qantas Airline succeeds in the international market. For example, language barrier and difference in meaning with regard to words used in the advertising strategy may limit consumers from considering the airline in making their travel decisions (Varey, 2002, p.67).
Qantas Airlines marketing department should conduct a market research in order to develop an understanding on the actual meaning of the words to use in its advertising strategy. The need to understand the words arises from the fact that some words may violate some cultural norms
In its effort to penetrate the foreign market, Qantas Airlines should consider training its human resource on relating with the customers. This will contribute towards Qantas Airline being effective in its effort to create effective market awareness. Qantas Airline should also consider conducting a competitor market research. The research should enable the firm to develop a comprehensive understanding of its competitors.
Reference List
Bartels, G. & Nelissen, W., 2002. Marketing for sustainability; towards a transactional policy making. Amsterdam: IOS Press.
Belliotti, R., 2008. Common use facilities and equipment at airports. Washington: Transport Research Board.
Carkenord, B. (2009). Seven steps to mastering business analysis. Ft. Lauderdale, Fla: John Ross Publishers.
Ferrel, O.C. & Hartline, M., 2008. Marketing strategy. Mason, OH: Thomson.
Ferreri, D., 2008. Marketing and management in the high technology sector; strategies and tactics in the commercial airplane industry. New York: Greenwood Publishing.
Gitman, L. & McDaniel, C., 2009. The future of business; the essentials. Mason, OH: South Western Cengage.
Jain, S., 2008. Integrated marketing communication; trends and innovations. New Delhi: Global India Publications.
Kimmel, A., 2005. Marketing communication: new approaches, technologies and styles. Oxford: Oxford University Press.
Knox, S., 2004. Positioning and branding your organization. Journal of Product Brand & Management. Vol. 13, issue 2, pp. 105-115. New York: Emerald Publishing Limited.
Longenecker, J., 2010. Small business management: launching and growing entrepreneurial ventures. Australia: South-Western Cengage Learning.
Mouncey, P. & Wimmer, F., 2007. Best practice in market research. Hoboken, NJ: Wiley.
Qantas. 2007. Marketing. [Online] Web.
Qantas. 2009. 2008/2009. Full year result investor briefing. [Online] Web.
Qantas. 2010. Board charter. [Online] Available at https://www.qantas.com/gb/en/about-us.html
Qantas. 2011. Follow us. [Online] Available at https://www.qantas.com/gb/en.html
Rao, R., n.d. Services marketing. New Delhi: Pearson Education India.
Russel, P. & Taylor, J., 2004. Marketing communication; an integrated approach. London: Kogan Page.
Varey, R., 2002. Marketing communication; principles and practices. New York: Routledge.
Verma, H., 2008. Services marketing; text and cases. India: Dorling Kindersley.