Jet Star Marketing Plan

JET STAR Marketing Plan



Executive Summary

     The major reason of this paper is to talk about the marketing undertakings of Jetstar Airways. JetStar Airways enterprise is an American low-cost airline. The investment was grounded by David Neeleman in February 2009. 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.

 

Keywords: JetStar airways, low-cost airline in Australia, marketing mix of JetStar, PESTL investigation of JetStar, SWOT investigation of JetStar

 

 

JET STAR Marketing Plan

Introduction

The Australian Airlines industry has been facing a competitive scenario since its deregulation in 1990. The entry 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, 2009 45) and flight delays (Creedy, 2008 34). 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 1900 weekly flights (Jetstar Airways, 2010 45) and with its presence in almost all major routes and in 50 international markets across Asia Pacific region. The success of its marketing campaign “All day every day low fares” and “Jetstar girl” saw it emerge as the airlines of choice for Australian flyers. However, complaints of falling customer service and flight delays contributed to a sub-par financial performance in 2009. Market research has shown that it has a lower customer loyalty than its main competitors Virgin Blue and Tiger Airways (Sandilands, 2009 45). 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.

Government regulations: In 2009, the 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 for ...