In current years, Jet star has expected to enlarge or enhance the number of destinations accessible to the customers. Jet star is enclosed with an enormous diversity of consumers who have been creating a center of attention to this aviation company for different reasons Holden,
JetStar Airways enterprise is an American low-cost airline. The investment was grounded by David Neeleman in February It augments more than 60 destinations in 21 affirms and eleven countries in the Caribbean and Latin America. The Headquarter of the investment is positioned in Forest Hills.
The Jetstar marketing mix of low cost airlines such as Virgin Blue and Jetstar Airways has intensified the battle for market shares and occupancy rates. Improving customer loyalty by having an innovative marketing mix is the key to survival for players in the airline industry.
Jetstar Airways has delivered sub-par financial performance in recent times due to complaints of falling customer service levels Easdown, 45 and flight delays Creedy, It indicates a need for change in the current marketing mix. The purpose of this report is to analyse a company's internal and external environments in detail so as to find gaps and to suggest a new marketing plan for the company.
Organisation's background The entry of Virgin Blue airlines resulted in a dynamic shift in the Australian aviation sector. As Virgin Blue enticed customers with its no-frills airlines, the then predominant market leader, Qantas Airways, was forced to adopt a two-brand strategy.
This paved the way for the formation of JetStar, a wholly owned subsidiary of Qantas Group. It is the largest player in the low-cost segment in Australia with a fleet size of 44 aircrafts and weekly flights Jetstar Airways, 45 and with its presence in almost all major routes and in 50 international markets across Asia Pacific region.
However, complaints of falling customer service and flight delays contributed to a sub-par financial performance in Market research has shown that it has a lower customer loyalty than its main competitors Virgin Blue and Tiger Airways Sandilands, Aggressive marketing tactics by competitors have resulted in an eating up on the market share of Jetstar.
This has resulted in a need for a fresh and innovative marketing mix for the company. Situation Analysis Political Forces Political factors requiring consideration include political stability, government policy, trade agreements, taxation arrangements etc.
Inthe Federal Government announced a draft to stand in the gap for airline customers who have been affected by frequent flight cancellations by low cost carriers.
At present, the airlines are not responsible for providing accommodation or alternative travel arrangements if a flight is cancelled due to any reason. The proposed Federal bill will include stricter penalties for flight delays and provision for65 APPENDIX K Marketing Objectives The provision of digital currency payments in Jetstar’s exis2ng app will allow for exis2ng digital wallets to allocate Jetstar as a payee.
In this way, Jetstar can build upon technology pragma2cally, and at a reduced cost. price penetration (pricing strategy), Jetstar aims to price its fares lower than other competitor in the aim of achieving a large market share during the early stages of its product life cycle.
Additionally, the promotion aspect of the marketing mix is the main element in order for businesses to develop more effective marketing strategies. It is evident that Jetstar’s marketing strategies have improved since / due to its increase in market share. Therefore the company has been growing successfully in most areas of its marketing mix.
This case appears in the May edition of the Airline Marketing Benchmark, a monthly report by initiativeblog.com and Simpliflying that identifies the latest innovative marketing campaigns recently launched by airlines around the world.
Formulation of innovative marketing plans to win over new customers and retain old ones are carried out through proper implementation of the marketing mix (Klein, ).
Qantas Airlines is the largest airline company in Australia enjoying a major dominance in the domestic market. Marketing mix consists of the 7P’s which are Product, Price, Place, Promotion, People, Process and the Physical Evidence.
By identifying these 7P’s it will be much easier for .