Marketing Strategy: Jetstar
Last week we applied the marketing process to a given company which was Jetstar.
Firstly we sought to understand the marketplace and the customer needs and wants. We decided that Jetstar’s market was the low cost airline offering very low cost flights in Australia and abroad.
The customers in that market are really after the cheapest flight possible while realising that they are sacrificing the comforts provided by a full service airline. Their basic needs and wants ultimately come down to the lowest cost flight, secondary to that is service.
Jetstar are targeting the right customers as it’s owner Qantas caters for the full service category. They do have fierce competition in that category mainly Virgin Blue then Tiger Air. Virgin Blue probably has a better reputation for providing better service at relatively the same price. This is a potential weakness with Jetstar.
To satisfy customers and attempt to gain a greater market share Jetstar could do some minor things that could help them. A few existing problems that frustrate customers are; sloppy unfriendly service by their staff. This could be addressed by providing staff with better training and incentives. People are also frustrated by all the add-ons that push the base price of the ticket upwards when booking online. Perhaps it would leave a better flavour with the customer if they listed the higher price first which would still be competitive with the other discount carriers then if you don’t need each add-on you could take it off a receive a further discount which would leave the customer feeling better as the ticket price reduces by the end, not increases. Another issue is their scheme to not fly certain routes or make routes hard to get to without connecting flights so that they feed Qantas link and Qantas which are much more expensive. An example of that is flying from Sydney to Melbourne. Jetstar fly to Avalon which is a long way from Melbourne. This means they don’t compete with Qantas on that
Firstly we sought to understand the marketplace and the customer needs and wants. We decided that Jetstar’s market was the low cost airline offering very low cost flights in Australia and abroad.
The customers in that market are really after the cheapest flight possible while realising that they are sacrificing the comforts provided by a full service airline. Their basic needs and wants ultimately come down to the lowest cost flight, secondary to that is service.
Jetstar are targeting the right customers as it’s owner Qantas caters for the full service category. They do have fierce competition in that category mainly Virgin Blue then Tiger Air. Virgin Blue probably has a better reputation for providing better service at relatively the same price. This is a potential weakness with Jetstar.
To satisfy customers and attempt to gain a greater market share Jetstar could do some minor things that could help them. A few existing problems that frustrate customers are; sloppy unfriendly service by their staff. This could be addressed by providing staff with better training and incentives. People are also frustrated by all the add-ons that push the base price of the ticket upwards when booking online. Perhaps it would leave a better flavour with the customer if they listed the higher price first which would still be competitive with the other discount carriers then if you don’t need each add-on you could take it off a receive a further discount which would leave the customer feeling better as the ticket price reduces by the end, not increases. Another issue is their scheme to not fly certain routes or make routes hard to get to without connecting flights so that they feed Qantas link and Qantas which are much more expensive. An example of that is flying from Sydney to Melbourne. Jetstar fly to Avalon which is a long way from Melbourne. This means they don’t compete with Qantas on that