Quantas Airlines

Essay by grandmadiUniversity, Bachelor'sA+, July 2007

download word file, 2 pages 0.0

"Seeking Financial Altitude in a Cloudy Sky" (Dateline, 2002)Qantas Airlines is looking to expand globally but remain a strong integrated airline with various business units. (Dateline, 2002)To do so, Qantas must ensure a clear understanding of their market opportunities. Market demand is the "… total volume … bought by a defined customer group in a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program." (Kotler/Keller, 2006, p. 127) Market demand is the aggregate of what consumers want, against the corresponding marketing expenditures for that demand. (Investopedia, 2007).

Qantas must determine current market demand, market potential and sales forecasts. To do so, they must quantify total market potential, geographic market potential, what their market share could/should be based on their expected sales. Based on their identified market demand, Qantas will determine what their marketing efforts should be to reach their targeted sales levels.

Sales forecasting is the targeted sales Qantas expects from the marketing plan and identified marketing environment. (Kotler/Keller, 2006)The projected low population growth could indeed affect Qantas Airlines' future projected revenues, from domestic (within Australia) consumers, but domestic and global competition, as well as the economic impacts of higher fuel prices would have a larger impact. However, on July 6, 2007 Qantas announced they would purchase an additional twenty B787's. These planes are more fuel-efficient and result in a "…lower seat mile cost…" (Qantas, 2007). Lower costs allow Qantas to "…expand more rapidly, particularly in the Asia-Pacific, the world's fastest growing aviation region … and to new international destinations in Europe, India and the Americas" (Qantas, 2007). This supports Qantas growth strategy to improve market share. (Qantas, 2007) (Kotler/Keller, 2006)To develop growth strategies there are a number of marketing tools available. One model...