Understanding Qantas Market Segmentation: A Comprehensive Analysis

Understanding Market Segmentation in Qantas Case Study

• Market segmentation is a crucial marketing strategy used by Qantas to identify its target market.

• It involves dividing the total range of potential or current customers into smaller discrete groups for analysis and planning.

• Through market segmentation, Qantas is able to better meet the diverse needs of its customers and compete more effectively in the marketplace.

• This strategy also helps Qantas to customize its marketing efforts and meet its business objectives.

Understanding Market Segmentation in Qantas Case Study

Customized Marketing Mix for Different Customer Groups

• Qantas targets various customer groups, including economy, business, and first-class travelers, and customizes the marketing mix to cater to the specific needs of each group.

• This customization allows Qantas to refine its products, set prices, determine the place of sale, and focus promotional techniques to better cater to the needs of each market segment.

• The four main types of market segmentation that Qantas uses include geographic, psychographic, demographic, and behavioral segmentation. This helps the business to effectively design and implement various marketing strategies to meet the diverse needs of its customer groups.

• Segmenting the market into groups of customers allows Qantas to tailor its marketing efforts and deliver more personalized experiences to its different customer segments.

Customized Marketing Mix for Different Customer Groups

Qantas Target Market Segmentation Strategy

• Qantas primarily uses behavioral segmentation to identify its target markets. This involves categorizing customers based on their behavior, such as travel purposes, like business or leisure.

• The business segment is further divided into routine business travel, such as conferences or seminars, and emergency business travel. These distinctions reflect the specific needs and preferences of business travelers.

• Within the leisure segment, Qantas focuses on holiday travelers, including those seeking package tours and other leisure-oriented travel experiences.

• This targeted segmentation allows Qantas to tailor its services and offerings to meet the diverse needs and interests of different customer groups, enhancing customer satisfaction and loyalty.

Qantas Target Market Segmentation Strategy

Understanding Qantas' Market Segmentation Strategy

• Qantas has segmented its market based on different types of travelers, including multi-destination touring, visiting family and relatives, and further demographic segmentation based on age, gender, family life cycle, and income.

• The airline has established different airlines to cater to specific target markets, such as Jetstar Domestic, which focuses on cost-sensitive travelers primarily on low-cost leisure routes in Australia.

• These highly differentiated brands appeal to different customer segments, allowing Qantas to meet the changing requirements and preferences of travelers.

• Qantas' strategic approach demonstrates a deep understanding of the diverse needs and preferences of travelers, enabling the airline to effectively target and serve various customer segments with specialized offerings.

• By addressing the unique preferences, budget considerations, and travel purposes of different segments, Qantas can maximize its market reach and appeal to a wide range of customers.

Understanding Qantas' Market Segmentation Strategy

Qantas Market Segmentation Strategy

• Qantas has expanded its brand with Jetstar International, targeting leisure travelers to destinations like Bangkok, Ho Chi Minh City, Bali, and Honolulu, which were previously unprofitable for Qantas.

• In recent years, Qantas has capitalized on the growing intra-Asian travel market by establishing Jetstar Asia, Jetstar Pacific, and Jetstar Japan.

• Market segmentation at Qantas is complex, as each segment caters to distinctive and different needs and expectations based on different target markets.

• Qantas has strategically segmented its market to cater to the diverse needs of various target markets, such as leisure travelers and the intra-Asian travel market.

• The expansion into Jetstar International and the establishment of subsidiaries in different Asian markets demonstrate Qantas' commitment to effectively segmenting its target audience and meeting their specific needs.

Qantas Market Segmentation Strategy

Conclusion:

Qantas' strategic approach to market segmentation showcases its deep understanding of diverse customer needs. By tailoring its services and offerings to different segments, Qantas maximizes its market reach and appeals to a wide range of customers, highlighting its successful market segmentation strategy.