The paper "Bankruptcy and Product-Market Competition" Is a great example of a Marketing Case Study. According to Kotler & Armstrong (2016, p. 37), a firm’ s marketing strategy describes the customers that the company will serve and how it will create and deliver value to the identified customers. A marketing plan then defines the actual program that the business will follow to realize its objectives. The marketing plan consists of a marketing mix which describes the product to be offered by the business, the price at which the product will be sold, how the firm will make the product available to customers, and how the company will communicate with the customers (Kotler & Armstrong 2016, p.
37). This report focuses on Jetstar, an Australian airline that offers low fares to assist more individuals to travel to more destinations with greater frequency. The report begins with an overview of the company and an analysis of its target market. This is followed by the identification of the essential elements in Jetstar’ s marketing plan and how these elements relate to each other. The paper concludes by drawing key recommendations from the analysis of Jetstar’ s marketing plan. Company Background Jetstar is an Australian airline that was established in 2004 with the intention of serving budget-conscious individual and business travelers.
The company is a fully owned subsidiary of Qantas, an Australian airline that concentrates on the premium end of the aviation market. As of 2017, Jetstar had carried more than 200 million passengers through its 4,000 weekly flights to more than 75 destinations (Jetstar 2017). Jetstar’ s destinations cover Australia, New Zealand, and the Asia Pacific and it operates a fleet of over 70 aircraft.
When it comes to performance, airlines are ranked by the reliability of their departures and overall safety. Jetstar’ s on-time departures ranged between 65.9% and 80.3% in 2016, indicating that it is a reliable airline for a low-cost carrier (Jetstar 2017). Regarding market share, Jetstar is the third-largest carrier in the domestic Australian market and is ranked in the top five airlines that serve routes to and from Australia (Jetstar 2017). This substantial market share is an indication that Jetstar has developed and implemented an appropriate marketing plan. Target Market Segmentation is the process of dividing a market into unique groups of buyers who have varying needs, behaviors and characteristics.
Segmentation also defines the division of the market into consumers that require separate products or marketing programs (Kotler & Armstrong 2016, p. 75). Airlines typically segment the market according to punctuality, flexibility, schedule, comfort, and price (Teichert et al. 2008, p. 235). In the case of Jetstar, the airline has opted to target the low-cost or budget segment of the aviation market. In other words, Jetstar focuses on creating a product that suits individuals who want to fly to their destinations at the lowest cost while not giving up on punctuality and flexibility.
These individuals are typically young adults with low to middle levels of income. This targeting is evidenced by Jetstar’ s price matching strategy that guarantees the lowest fares in the market as well as its performance record that shows that up to 80% of its aircraft take off on a schedule (Jetstar 2017).
Ciliberto, F & Schenone, C 2012, ‘Bankruptcy and product-market competition: Evidence from the airline industry’, International Journal of Industrial Organization, vol. 30, no. 6, pp.564-577.
Gordon, R 2012, ‘Re-thinking and re-tooling the social marketing mix’, Australasian Marketing Journal, vol. 20, no. 2, pp.122-126.
Jetstar Group 2017, About us, Jetstar Airways Pty Ltd, viewed 19 August 2017
Kotler, P & Armstrong, G 2016, Principles of Marketing 16th Global Edition, Pearson.
Lück, M & Gross, S 2016, The low cost carrier worldwide, Routledge.
Singh, M., 2012, ‘Marketing mix of 4P’s for competitive advantage’, Journal of Business and Management, vol. 3, no. 6, pp.40-45.
Teichert, T, Shehu, E & Von Wartburg, I 2008, ‘Customer segmentation revisited: The case of the airline industry’, Transportation Research Part A: Policy and Practice, vol. 42, no. 1, pp.227-242.
Whyte, R & Lohmann, G 2015, ‘The carrier-within-a-carrier strategy: An analysis of Jetstar’, Journal of Air Transport Management, vol. 42, pp.141-148.