Marketing Principal for Marketing Manifesto

Discuss about the Marketing Principal for Marketing Manifesto.


The objective of the assignment is to focus on the overall Airline Industry in Australia. The aviation industry in Australia has a long history.  Currently, the airline industry in Australia consists of some the airline, which operates within the country and across the world (Aaker 2013). This particular industry in Australia has grown very rapidly and all overall the world due to the country is an island and has a thriving economy. The study will concentrate on what are the key factors that affect the choice of the airline industry and about its target market.

Backgrounds of the companies

The study will highlight analysis of the business operations of the three airlines industry in Australia. The three top airline industries, which are reflected in the study, are Jetstar, Virgin Blue, and Tiger Air.

Jetstar Airways is one of the low cost airline industries with its headquarters in Australia. This particular airline brand is a subsidiary part of the Qantas airline. Qantas Airline developed a proper branding strategy, which includes premium service and standard service. The entire airline premium service is operated by Qantas airline and on the hand; Jetstar operates the entire economic airline service, which is a part of this airline group ( 2016).

Virgin Blue Airline is the second largest airline company, measured regarding the number of flights. Richard Branson founded this airline company, and its headquarters situated in Bowen Hills Brisbane. This particular aviation company is also a low cost economical airline company provides a little more facility as compared with different low cost airlines (Virgin Australia 2016).

Tiger Airways Australia is also a low cost Airline company commenced service in the Australia Domestic Market. This particular carrier group is fully owned by the subsidiary of the Virgin Australia Holdings. The headquarters of this particular airline company is situated in Melbourne (Tigerair, 2016).

Target Market

The idea of the target market is selecting a particular group of audience in any industry by defining the policy of the business. The overall aviation industry in Australia falls under the notion of the monopolistic marketing structure, as there are a large number of passengers as well as many reputed companies offering the same service and benefits. 

Analysis of market segmentation

The concept of market segmentation in the airline industry is done based on the class of seating. Some of the important divisions of classes are business class, economy class, first class and premium class. Majorities of the customers choose the classes based on the requirements of traveling. However some of the important, as well as some of the key variables, which conclude the analysis of the market segments, are loyal to loyalty programs, urgent travelers, business travelers and budget-conscious, are the overall segmentation of the Air travel market analysis. Majorities of the Airline Industries, including all the major Australian Airline companies follow these features of the market segmentation to develop a proper target market.

Analysis of Targeting

There are certain key strategies which different Airline industry follows to conclude about the requirements of the target market. Some of the key features include geographical strategies, which find audiences in a certain location. Demographic strategies include certain characteristics such as trends, choice and standards of customers in a certain area. The most important point is the psychological factor, which concludes about the demand of the market and the passengers wants (Rhoades, 2014).  In Australia, the majority of the people maintain good standards of livings. However, the price is one of the key factors, which affects the purchasing decisions of the majority of the customers. It is quite often that majority of the people tries to save money. Saving money does not hurt. To do people around the globe including Australia prefers economy class traveling for domestic destinations.

Analysis of Positioning

The idea of market positioning is the way which brand of the company fits into target market irrespective of its competitors. In Australia, the overall aviation industry falls under the notion of the monopolistic market structures. Sometimes it becomes very much challenging jobs for different companies to satisfy the needs of all the passengers with the help of the limited resources (Armstrong and Kotler, 2013). However, one of the main concepts towards determining the positing in the target market is the idea of perceptual mapping.

At present Virgin Airline Company consists of competitiveness where the market leader is a company who delivers their service in a more meaningful and efficient way than its competitors do. On the other hand, Jetstar is a part of the Qantas Airline, which mainly combines its overall business into two categories, which includes Premium service and regular service. Based on the requirements of the visitors the company offers the exact benefits. The business strategy adopted by the tiger airlines is to provide low fare, high air frequency transport without compromising passenger safety. This particular airline company believes in the process of the RBV model to develop a proper value positioning among the customers.

Positioning Approaches Jetstar, Virgin Blue and Tiger Air

The three different airline companies’ uses different kinds of position approaches, which include price quality approach, competitors approach and service users approach. Jetstar believes in price quality approach, Virgin blue believes in competitors approach and tiger air believes in service users approach. These are the three different kinds of value approach, which these organizations focus on.

Environment Analysis of the Airline Industry in Australia

The objective of the assignment is to recommend, what are the various areas for the Airline Company for entering the domestic budget airline industry. Budget airlines target a segment of the aviation industry in the Australian Airline Industry which some argue have been previously ignored by major airline companies. The ultimate reason behind for this is the cost. Pricing is one of the key strategies, which this organization needs to emphasize.

In order to collect the actual as well as required information about the trends as well as demands of the market the team needs to focus on both the external environment as well as the internal environment (Hood, 2013). In order, analyze both the internal environment as well as the external environment; the organization needs to focus on two important marketing tools (Hood, 2013). The two important marketing tools include the application of the SWOT Analysis and the application of the PESTEL Analysis (Pride, 2012). The application of the SWOT Analysis includes scanning the internal environment and on the other hand, the application of the PESTEL Analysis includes scanning the external environment (Pride, Hughes and Kapoor, 2012). It will provide all the required information’s about the market structure of the aviation industry.

The porter’s five forces is also another feature, which will conclude about scanning the overall marketing structure of the airline sector. The majority of the airline companies are Australian based. All of the carriers operate its business process in a suitable manner.  The scope of the foreign airline company in Australia is less as compared with the domestic airline companies as it provides all the major facilities and benefits to all the customers

Competitiveness of the Airline industry

Competition exists in each corner of the industry. The companies need to implement active decision-making process in order to constitute the overall demand of the passengers and market. There are several classifications of requirements of the customers. After scanning both the internal environment as well as the external environment all, the companies in the assignment decided to develop a cost-effective business models (Kaps, Hamilton and Bliss, 2012). In Australia majority of the passengers prefers economic class traveling while traveling in the domestic destinations.

Factors affect the choice of the Airline Industry in Australia

There are certain a group of passengers prevails in the aviation industry. Safety, service and time are the three factors, which constitute the overall airline industry. The majority of the customers irrespective of the requirements want these three factors to be fulfilled. All the three organizations give full support towards maintaining these factors for customer satisfaction. There are certain organizational goals and managerial objectives which majority of the companies follows in the operations of the business.

If the customers are satisfied, it will bring certain positive impact on the overall business operations of all the three companies. All the company focuses on time-to-time service and a safe journey at an affordable cost. However, in this particular market structure, there are several firms doing the same business and providing the same service to its customers (Kotler and Armstrong, 2012). Sometimes it becomes very much challenging, for the companies to maintain all the factors in a defined manner.

Future of Domestic Budget Airline industry in Australia

Domestic budget airlines in Australia target a segment of customers in the overall airline industry, which have been ignored and by major airline companies. This leads to a clear positioning strategy that based on price and another major factor. Some essential characteristics of this groups of customers include first time fliers, would like to take some alternative transport option and small business owners are travelling very frequently (Rhoades, 2014). The domestic budget airline targets these groups of customers by maintaining a proper pricing strategy, which will satisfy the demands of these particular groups of passengers (Kaps, Hamilton and Bliss, 2012).

Analysis of the budget airline industry in Australia

The idea of the budget airline industry in Australia is one of the best ideas in the aviator sector. It provides the option for the passengers to travel by air, who selects alternative options for traveling by offering affordable price. Based on certain analysis and statistical reports it is proved that majority of the Australia prefers traveling in domestic destinations at an economical cost. In Australia, there are different kinds of airline companies and it falls under the notion of the monopolistic market structure. It will bring different positive impact in the business operations and will accomplish the overall goals and objectives of the organizations.

Recommendation for target market

Meeting the requirements of the of the passengers

The primary is to meet the demands of the travelers. To do that the company need to develop a strong communication channel between the passengers, so that all the three companies will be able to develop a proper business plan and proceedings.

Providing economic traveling

Everyone wants to save money and saving money does not hurt. It is one of the basic things that different passengers prefer economic traveling in the country. All the companies need to analyze the situations of the market in a proper manner, which will conclude about the best price and economical price for the flights by providing the best facilities.


The concluding part of the analysis will summarize all the important factors, which will focus on the Domestic Budget Airline industry in Australia. The assignment is classified into several parts, which will analyze all the important variables of the airline industry in Australia. The most important part of the task is the idea of the target market which majority in the aviation sector. The recommendation part will summarize on the key areas, which will help the domestic Budget Airline industry to prosper in future.

Reference List

Aaker, D. (2013). Marketing research. Hoboken, NJ: John Wiley & Sons.

Armstrong, G. and Kotler, P. (2013). Marketing. Boston: Prentice Hall.

Homann, K., Koslowski, P. and Lütge, C. (2007). Globalisation and business ethics. Aldershot, England: Ashgate.

Hood, D. (2013). The marketing manifesto. London: Kogan Page. (2016). Jetstar Airways – Australia | Jetstar. [online] Available at: [Accessed 18 Aug. 2016].

Kaps, R., Hamilton, J. and Bliss, T. (2012). Labor relations in the aviation and aerospace industries. Carbondale: Southern Illinois University Press.

Kaps, R., Hamilton, J. and Bliss, T. (2012). Labor relations in the aviation and aerospace industries. Carbondale: Southern Illinois University Press.

Kotler, P. (2012). Principles of marketing. Singapore: Pearson/Prentice-Hall.

Kotler, P. and Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall.

Pride, W. (2012). Marketing principles. South Melbourne, Vic.: Cengage Learning.

Pride, W., Hughes, R. and Kapoor, J. (2012). Business. Mason, OH: South-Western Cengage Learning.

Rhoades, D. (2014). Evolution of international aviation. Farnham, Surrey: Ashgate.

Tigerair, (2016). Cheap Flights from Singapore | Low Cost Airlines – Tigerair. [online] Available at: [Accessed 18 Aug. 2016].

Virgin Australia. (2016). Virgin Australia | Book flights & holidays with Virgin Australia. [online] Available at: [Accessed 18 Aug. 2016].


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