JB Hi-Fi Limited is an Australian company that was established in 1974 by John Babuto, based in Melbourne and is currently headquartered in Chadstone, Victoria. The ownership changed in 1983 when was sold to David Rodd and Richard Bouris who finally sold majority of the holding to private equity that eventually made it be floated in the Australian Stock Exchange in October 2003. The company deals in the retail of JB equipment that includes electronic products and home entertainment devices like music CDs, DVD movies, Plasma and LCD televisions, portable audio, car stereos, digital camera photography, computer and video games and information technology. JB Hi-Fi. Company operates in Australia and New Zealand and is presently the leading retailer of Apple Computer hardware, even more than Apple retail stores in Australia. It is also the sole retail store that trades Dell Computer hardware in Australia. This is the company that the marketing audit will focus on.
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External and Internal Environment
JB Hi-Fi has employed over 1,500 staff that operates both in New Zealand and Australia in their 153 outlet stores. JB Hi-Fi initially faced considerable competition from several music stores in Australia, but has managed to rise above the competition to report an increase in profit by 26% from the 2008/2009 performance (Investsmart.com). JB has strength is product diversification from predominantly music CDs only, to a variety of items like plasma and LCD television, car stereos, compute and video games, DVD movies and presently the leading Apple computer hardware and the only store selling Dell computer hardware in Australia. This diversification makes JB a one stop shop for customers, and enjoys the monopoly of selling Dell computers. JB also focuses in high quality imported CDs, mostly from the United States and the United Kingdom. However, CDs from other regions like South America, Africa and Asia are only provided on special order. The company operates under the JB Hi-Fi and Clive Anthonys names. Auditing process needs to fully understand the business industry, to be able to comprehensively audit the company. This should include understanding the products offered by JB Hi-Fi and can be developed through physical visitation of the stores, to get a clear picture of what happens on the ground before actual auditing (McDonald, 1993). This will also help in evaluation of the marketing approaches used by the firm to ensure right recommendations are given.
Target Market Analysis and Channel Relations
JB Hi-Fi targets a wide market both in Australia and New Zealand. Competition from other music stores who also target the retail customers for the CDs offer threat to the company
JB Hi-Fi Company has segmented its market to home retail consumers and wholesale customers. Retail customers purchase home consumer products and equipment both in Australia and New Zealand. It also has the Commercial division segment which focuses on large commercial projects, bulk purchasing by organizations and complete business fit-outs. Commercial division usually sells the products to corporate customers at wholesale prices. There is also segmentation based on demographic, depicted by the differentiation of the products that provide a wide range of products for customers in different age groups. Music CDs and DVDs for computer games and movies are mostly preferred by the younger generation from the children to the teens, while home equipment like the plasma TVs, computers hardware are products that majorly target adults and a few teen students. This segmentation ensures that all customers’ needs are met.
JB Company offer personalized attention as a channel of relation, to the customers during their physical visits to the stores, either to enquire about a product or to purchase. Advertisements run on mass broadcasts programs also give customers insight concerning the availability of the products. There are also online stores through the company website containing all the information about the products and provide an opportunity for customers to read any relevant information. Understanding the target market is essential to the auditor in assessing whether the marketing and advertisement methods used, and the financial cost quoted in the returns match the intended market and also helps in evaluating the level of competition in the market posed by the competitors. Currently, JB Hi-Fi operates stores in Australian Capital Territory, Tasmanian, New South Wales, Queensland, South Australian, Northern Territory Victorian and Western Australian.
JB Hi-Fi Company while using the Clive Anthonys’ name uses discount strategy in electrical superstores in the Capital of Australian, New South Wales, Victoria and Queensland. Goods sold in these stores include; consumer electronics, cooking appliances, white goods, and air-conditioning gadgets. The company also offers products at a relatively lower price than the competitors, making its stores the most preferred. These two strategies work well for the company as it succeeds to attract more customers to realize 26% profit growth in as compared to 2008/2009 financial year, the same period when other music stores complained for losses. The use of company website for advertisement also provides an opportunity for the online shoppers.
In June 2007, a publication in the Sydney Morning Herald reported that JB Hi-Fi is largest CD retailer in Australia and that it is second in the sales of computer games, car stereos and televisions. This strategy of winning the renowned publishing media worked to their advantage and pointed to potential customers that JB was the place to find such equipment and electronics. The company also uses personal sales strategy where employees offer personalized customer service to clients. JB Hi-Fi Company stores are also well decorated with sparkling yellow color which can be identified easily by passing customers from far. The message reads that they offer products at ‘cheapest prices’. This message is a promotional strategy that has worked well for the company.
Auditors need to understand the type of promotion used by the company to provide an evaluation whether it is effective and reaching the intended market. Cost analysis can only be done when there is full knowledge of the advertisement mode used. The diverse promotional strategy employed by JB has proved to be very effective since they reach and appeal to all the customers.
A Mind Map of the Unit Topics
This unit discusses marketing management to equip learners with skills and knowledge for effective marketing practice through a 16 chapter course. It analyses marketing strategies for both corporates and businesses, strategic decision making process as supported by a situation analysis, the formulation of a business mission, strategic and operational objectives understanding marketing opportunities through market and customer analysis, market forecasting to test business viability using models and methods like scenario analysis, impact analysis, the competitive strength grid, the matrix of competitive environments. The unit also looks at the importance of diversification and positioning strategies, pricing strategies, distribution and promotional strategies including marketing budgets.
Reflective Learning Journal
Importance of marketing Decisions
Marketing decisions are very important for the success of the business marketing activity. Marketing creates value which is a role of fundamental product features and price, and it means different things to different people. Marketing enables people and companies to get what they need to develop long term exchange relationships and influence people’s wants (Kerin, Hartley & Rudelius, 2009). Customer needs and wants may include; basic physical needs critical for survival, social and emotional desires necessary for psychological well-being among others. Wants reflect needs or favorites for precise means of satisfying a business need. JB Hi-Fi focuses on the social and emotional needs as well as wants that include music CDs for entertainment, and the computers and plasma TVs that make life and work easy and confortable.
Effective Marketing Practice
An effective marketing practice should have a good strategic marketing plan that focuses on the company, context, customers and competitors (4Cs) (Nykiel, 2003). JB Hi-Fi marketing plan considers the company’s internal resources, capabilities, and strategies that include motivated customer service team, the environmental context in which the firm operates and competes, the needs, wants, of current and potential customers and their characteristics and monitor the comparative strengths and weaknesses of competitors and trends in the competitive environment which the company has capitalized on to emerge the market leader.
Marketing plan should also include corporate strategy that reflects the company’s mission; businesses to pursue, how the resources will be allocated, and outline growth policies. It needs to stipulate business-level strategy, marketing strategy and model addresses how the business intends to compete and have clear decisions about market segments, product line, advertising appeals and media, prices, and partnerships (Ward, 2011). Market opportunity analysis done by JB Hi-Fi is equally very important as it shows whether the business is viable or not. The analysis involves examination of the external environment, including the markets and the industry to be served, customer analysis in terms of their purchasing power and their preferences, marketing research and forecasting for future business, market segmentation, targeting, and positioning decisions. JB Hi-Fi, has positioned itself as discount stores in Australia that is also involved in carrying out retail business, hence known as a discount retailer. Charging cheaper price and offering of best diversified brands is the strategy adopted to keep the competitors on check. The company is currently one of the fastest and largest growing business in New Zealand and Australia, which stocks a wide range of home entertainment products that include music CDs, games and movies and consumer electronics such as Plasma Televisions, home theaters, DVD players, digital and video cameras, car sound systems, cell phones and Apple and Dell computer hardware among others.
The image below shows the positioning tool of marketing the company as to be providing quality products at a cheap price.
The plan also need to specify marketing objectives and strategies, having in mind the marketing mix that include price, place, product and promotion. The company needs to take into consideration the factors that affect marketing management like globalization, differences in market and competitive conditions, increased importance of service Information technology and the availability of opportunities for additional sales growth and profits (Strategy4u.com). This will help determine if the company’s marketing strategy is in tandem with the competition.
Marketing management fully analyses the marketing plan used by JB Hi-Fi for a new product to be introduced into the market. It indicates the process of developing marketing plan that companies should follow and identify marketing goals and objectives (Kotler, 2009). The structure starts by summarizing the business idea, the essence of the proposal and the results forecasted. It then analyses and describes the product by identifying goals and objectives that are specific, measurable, attainable, relevant and timely bound (SMART) of the business (Kotler, 2009).
This is the third step is the making business plan. It indicates who constitutes the company’s market and the segment initially targeted defined by JB Hi-Fi through demographic, geographic or behavioral variables.it also outlines the anticipated growth rate.
JB Hi-Fi has opened stores in all the regions of Australia and some in New Zealand. Their superstores have a big space stores and stand individually while the rest in shopping centres where most customer can access (Investsmart.com).
JB Hi-Fi offer differentiated products that satisfy the needs of all customers depending on their age, income level, education level and occupation without any limitation. This is because customers have diverse home entertainment needs to be satisfied. This product differentiation offer competitive advantage against other competitors in market since all customers can get whatever they demand and is popular among all social groups.
The target customers are also defined by Psychographic such as buying motives, product usage level, and lifestyle. The changing in economic status changes people’s lifestyle. The value created by the company always can affect buyers&rsqo; behaviour for example; three factors that influence JB Hi-Fi customers are the low price offered; availability of the information online for product knowledge and the positive reputation of the suppliers who are big companies that can provide quality guarantee.
To effectively manage marketing, competitor Assessment needs to be done to know the number of the competitors and the product they offer. JB Hi-Fi in this case need to know the number of music stores offering the CDs, computer games and the Apple computer hardware and their competitive advantages and disadvantages as well as knowing the industry competitive forces. This analysis can be done using Porter’s Forces Model that analyses the bargaining power of the customers, threats presented by new players, bargaining influences of the suppliers and the threats presented by the substitute products.
The next process is the Marketing Strategy that involves marketing mix of product, pricing and distribution decisions including channels of distribution structure through push or pull strategy, promotional strategy that include integrated marketing communications objectives and plan, copy platform, media plan, trade and consumer promotion plan, personal selling plan and public relations plan (Kotler, 2009). Marketing Budget allocation is very important in the execution of the marketing strategy. The budget need to include cost of advertisement, direct marketing, internet marketing like website, consumer promotion including discounts strategy employed by JB Hi-Fi, trade promotion within distribution channel, sales force expenses, public relations and customer service. Implementation and Control of the marketing plan is then done and finally giving the forecasts of the strategy (Overton, 2003).
Corporate & Business Strategy
The success in marketing department means success of the whole company. This makes the marketing managers primary contributors to the planning process at the business and corporate level. The managers should be market oriented which has a significant positive effect on various scopes of performance such as new product success, return on assets and sales growth (Cravens, Hills,& Woodruff,1980).
There are three levels of strategy that were considered by JB Hi-Fi, to distinguish the scope business operations;
Corporate level strategy; where decisions about the firm’s business scope and resource deployments across its businesses are the primary focus within the mission statement.
Business-level strategy; that gives sustainable competitive advantage and produces synergy across functional departments and product markets and within the business including marketing strategy whose function is to efficiently apportion and manage marketing resources and actions to realize the company’s objectives within a definite product-market.
Corporate growth strategy can be implemented through the analysis of the entry mechanism such as price penetration strategy into current and new markets and the development of new products.
This is another strategy that can be used by the corporates to ensure steady future cash flows in to the business. The growth-share matrix encourages diversification of product and business, by having four categories that show the industry’s growth rate and the business’s relative market share. These are;
Stars; are business lines that have high market share in an industry that grows very fast, which requires extra cash to sustain the unit's market leadership and may become the next cash cow.
Cash cows; are business lines that have high market share in a slow-growing business industry that produces surplus cash required to sustain the business and JB Hi-Fi has identified Apple computer hardware and home entertainment product lines to be the cash cows that drive company revenue.
Dogs; are business lines whose market share are low, operating in a mature, but slow-growing industry and are able to "break even", to produce hardly sufficient cash to sustain the market share of the business. These are maintained for market presence.
Question marks are business lines that grow rapidly, hence utilize large sums of cash, with little in return.
Understanding Marketing Opportunities
The global trend to adopt new technology has provided market opportunity for JB Hi-Fi Company to diversify and sell Apple and Dell computer hardware, mobile phones and plasma Television in large volumes. This made the company to effectively compete. Business opportunity is identified through assessing market Micro level and Macro level environments. Macro level environment analyses JB Hi-Fi business and industry attractiveness as a whole based on environmental conditions in New Zealand and Australia. It also comprises the demographic, sociocultural, economic, regulatory, technological and natural environment. Micro level environment looks at the market or the industry overall performance but narrows down to individuals performance in that market or industry for example the store in Queensland against competitors in the area.
The company needs to consider their mission, aspirations, and risk propensity the business may be exposed to in these levels, before venturing into the market, the capacity to perform on the industry’s major success factors and the activities involved (Overton, 2003).
Understanding Consumer V.S. Organizational Markets and Behaviour
Companies need to understand the expectations and needs of the consumers and the market trends. The psychological importance attached on the purchase by customers’ needs to be considered. For example, the high-involvement purchases that comprises products, which are psychologically significant to consumers, since they satisfy social needs and therefore carry social, financial and psychological risks (Han, Kim and Srivastava 1998).
Steps in the High-Involvement, Complex Decision-Making Process
Problem identification; where the customer unsatisfied need and wants is identified. This understanding has made JB Hi-Fi Company to provide the products that satisfy the customer problems (Cravens, Hills, & Woodruff, 1980).
Information search; this is the second step where customers seek additional information about alternatives brands until they perceive that the costs of obtaining more information as equal to the additional value or benefit derived, customers also consider psychological costs involved in searching for information. JB Hi-Fi has succeeded in providing online stores and information through their websites where customers can conveniently seek information about available products.
Evaluation of alternatives; where the customers evaluate each of the brands in the evoked set on a small number of product attributes while taking into account the relative importance of those attributes (Cravens, Hills,& Woodruff,1980).
Purchase stage; where the consumers usually select the source they perceive to be best on those attributes most important to them and will deliver the greatest value. Quality of the product, price, place and promotions are major determinants of the decision to be made by the consumers on what product to purchase, where to purchase and the price to pay.
Post-purchase evaluation; the person’s expectation level and evaluation of how well the product actually did perform determine whether the customer will repeat the purchase or not. The evaluation feeds back into memory where it can be recalled for a similar decision and can lead to brand loyalty. It is therefore important to seek customer feedback to be able to improve the products and services rendered in the future.
Determinants of the decisions
This includes perception and memory on the initial satisfaction on the service and the product, exposure to a piece of information, such as a new product, an advertisement, or a friend’s recommendation (Hawkins & Mothersbaugh, 2010). This leads into winning attention, then to comprehension, and finally to retention in memory then uses the perceived information to evaluate alternative brands and to decide which to purchase.
The Social Influences
This include culture, religion and behaviour pattern shared by members of a society that influence consumers purchases. The reference groups and social class like status groupings based on income, education, and occupation of consumers also shape peoples consumption.
The Family influences
This is primary socialization agent, which has great and lasting influence on its younger members’ attitudes toward various brands and stores. Family members usually concentrate in the consumption of particular products occasionally as a result of their interest or initial experience, or the family role structure (Han, Kim and Srivastava 1998)
How Organizational Members Make Purchase Decisions
Extensive purchasing process applies primarily to new-task purchases. Such situations are relatively favourable to potential new suppliers who have never sold to the organization. Developing long-term buyer–supplier relationships by building trust between supplier and customer is very important in the winning of the corporate customers (Hawkins & Mothersbaugh, 2010). Corporate customers in most cases purchase in bulk for examples computer accessories, thus present a wide market for JB Hi-Fi computer hardware business line. This can be well achieved through development of a corporate level strategy. A firm is more likely to trust and develop a long-term commitment to JB Hi-Fi, when the company makes dedicated, customer-specific investments.
Measuring Market Opportunities: Forecasting and Market Knowledge
Companies should be in a position to forecast the market opportunities in the future to check whether the business is sustainable especially in today’s rapidly changing markets. This should be an evidenced based projection not assumption. JB Hi-Fi had initially forecasted that 2011 profit would rise from $134 million to $139 million. This has however been downgraded to grow from $108.5 million to $113.5 million but instead buy back shares and the decision to restructure Clive Anthonys which comprises 10 stores according to strategic review, with forecast revenue for the full year of about $140 million.
Methods of Forecasting
A Forecaster’s Toolkit
This toolkit outlines two methods for formulating a sales forecast;
Top-down approach in which a central person take the obligation for forecasting and formulate an overall business projection, and Bottom-up approach in which each department of the company projects its own sales forecast, then the parts are joined to produce a complete forecast for the whole firm.
The company can also use past historical events and several statistical techniques, like multiple regression or time series analysis, to project future performance.
Attractive method because it is based on what people actually do, surveys or focus groups, analogy, comparison with similar historical data that are available.
Used largely for new consumer products and is usually performed under monitored experimental settings in research laboratories. Can also be done in live test markets.
Differentiation Strategies & Positioning
Differentiation strategy is where products are made different in some aspects that motivate customers to purchase. Consumers or organizational customers usually choose what they buy based on whether it is better or cheaper than the competitors’ products. The difference can be among competing brands or physical or perceptual. JB Hi-Fi provides diversified products ranging from home electronics such as Televisions, DVD players, phones, car stereos, and home entertainment items like CDs, computer games, videos and computer hardware. These wide varieties of products give customers a chance to choose the brand best to them.
Physical positioning analysis can provide useful information in the early stages of identifying and designing new product offerings.
Consumers often know very little about the essential physical attributes of the brandss they buy.
The Brand Positioning Process
Identify a relevant set of competitive products; this helps since marketers who omit important substitute products or potential competitors risk being blindsided by unforeseen competition (Kerin, Hartley & Rudelius, 2009). JB Hi-Fi identified that most music stores offered one line of products at higher prices, thus positioned itself as a one stop shop where more diversified brands are found at cheaper prizes.
Identify determinant attributes; this may include features, benefits, parentage, manufacturing process, ingredients, endorsements, comparison with a competitor’s product, pro-environment positioning, price and quality (Murphy, 2005).
Collect information on clients’ perceptions; concerning brands that are among the competitive set, to only supply for the target market and the product category products under consideration and to know how different brands in the competitive set are viewed on these attributes.
Analyze the present market positions of the products in the competitive set; use of the positioning grid, also called a perceptual map provides a visual representation of the positions of various products or brands in the competitive set in terms of two determinant attributes.
Identify the consumers’ most favored combination of attributes.
Consider fit of possible positions with customer needs and segment attractiveness. JB Hi-Fi need to perform market positioning analysis to simultaneously identify distinct market segments as well as the perceived positions of different brands.
Develop value proposition to guide development of marketing strategy.
Product and Pricing Decisions
Before making price decisions, the management should consider the business strategy in place and the other components of the marketing mix, the extent to which the product is perceived to differ from competitive offerings in quality or level of customer service,’ prices charged by competitors, availability and prices of substitute products (Cravens, Hills & Woodruff, 1980). This was the strategy that was employed by JB Hi-Fi to determine the cheapest prices.
The methods used by JB Hi-Fi company managers determine an appropriate price level include; cost-oriented methods considered by adding a standard markup to the cost of the product and rate-of-return, competition-oriented methods such as discount or premium price policies, sealed bidding, expected value model, internet and buyer’s auctions. There is also use of customer-oriented methods which is the pricing that matches with the value perceived by the customer (Hawkins & Mothersbaugh, 2010).
Distribution Channel and Integrated Promotion Decisions
The objectives to be accomplished when designing distribution channel include;
- Increase the availability of the good or service to potential customers.
- Satisfy customer requirements by providing high levels of service.
- Ensure promotional effort.
- Obtain timely and detailed market information.
- Increase cost-effectiveness.
- Maintain flexibility.
During the design of the channels of distribution, JB Hi-Fi should consider Institutions such as merchant wholesalers, agent middlemen, retailers, and facilitating agencies like the marketing research firms and advertising agencies among others need to be considered in the distribution channel. The design can use the pull or push strategies (Murphy, 2005).
Developing an Integrated Marketing Communications Plan
This is done by defining the audience targeted and setting the promotional SMART objectives.
- Evaluating and Controlling Sales force Performance
- Making public relations decisions which have several unique advantages;
- Lots of information can be communicate
- High credibility
- Very low or nil cost to reach customer
- Supports both pull and push strategies
Strategies for New, Growing, Mature and Declining Markets
There are six categories of new products into the market ranging to new-to-the-world, products, additions to existing product lines, new product lines, improvements in or revisions of existing products, repositioning, cost reductions (Root, 1987).
Market Entry Strategies
Entry into the market require use of pioneer strategy in case it’s the first time the product is offered into the market and involves defining the rules of operation and has the best opportunity to succeed in market-share leadership and profitability. There is also follower strategy that ventures to take advantage of the mistakes made by the pioneers. The strategic marketing programs that can be used by pioneers are (a) mass-market penetration (b) niche penetration and (c) skimming and early withdrawal (Burton, Chapman & Cross, 1999).
Strategic Choices in Mature Markets
Mature markets show the characteristics of product quality internal of performance, durability, conformity with specifications, features, reliability, serviceability, fit and finish, brand name, make and quality in service quality that include reliability, responsiveness, assurance and empathy
Strategies for Declining Markets
Three sets of factors help determine the strategic attractiveness of declining product markets are conditions of demand such as technological advances produce substitutes often with higher quality or lower cost, demographic shifts, change in needs, tastes, or lifestyles and cost of inputs or complementary products. There are exit barriers, and factors affecting the intensity of future competitive rivalry (Root, 1987).
This is the sub-division of the target market usually made up of people or organizations into groups with one or more common characteristics that make them demand similar product or services. A true market segment should be distinctive from other segments having different needs, should be homogeneous within the segment, should respond the same way to market incentive, and be access by a market intervention.
This is a comprehensive, independent and periodic exercise used to evaluate a company's marketing assets performance to review the efficiency of the marketing strategy put in place (McDonald, 1993).
Marketing audit should be performed at the start of the planning process taking into consideration the internal environment, external environment and evaluation of the present marketing strategies.
Marketing plan refers to the outline and procedures of specific actions a company proposes to carry out to attract potential customers to consume their product and service. A marketing plan is used to implement marketing strategy (Nykiel, 2003).
This refers to the benefit of leading the market in the provision of the products and services due implementation of unique marketing strategies established on unique blend of internal company resources and competencies that cannot be replicated by competitors. These unique strategies allow the company to command competitive position in the market to survive the rivalry irrespective of the level of competition.
These are strategies used in the distribution channels where manufacturers of a product distribute and persuade retailers and middle men to stock their products even without demand in a bid to gain market share hoping that customers will purchase them when they see the products on the shelves.
Pull strategy refers to marketing technique where manufacturers and retailers supply products due to the market demand. Retailers order for stock into the customers as a result of direct customer demand that arises as a result of product positioning through mass media advertising.
This is a path goods and services pass through from the manufacturers through wholesalers, distributors, agents retailers to the consumer, and the payments procedures in opposite direction. A company can choose to sell directly to the consumers or through the middle men
This is the process of analysis of the viability of the business industry and estimation of future prospects of a business operation in terms of financial and marketing performance. Forecasting also gives the goal projection the company intends to achieve after implementation of the marketing strategies
These are the basic elements of marketing usually referred to as 4Ps that include; product, price, promotion and place that are adjusted in a marketing strategy until a working combination that completely matches the customer’s needs while maximizing on income.
Nominated Tutorial Questions and Answers
I will do marketing audit on JB Hi-Fi Company which is deals in the retail of JB equipment such as, electronic products and home entertainment devices. These retail items currently include; music CDs, DVD movies, plasma and LCD televisions, portable audio, in-car entertainment, digital camera photography, computer and video games, gadgets and information technology. The company operates in Australia and New Zealand. The company currently runs bonus offers campaigns on assorted products to encourage customers buy several products, for example 50% off ink prices when a consumer purchase ink with a printer, buy 2 specially stickered Blu-ray titles for $30 among others and the e3 2012 competition campaign to drive sales higher.
JB Hi-Fi Company has managed to control its music stores market in Australia and New Zealand due to the product differentiation to include plasma TVs and computer hardware to supplement the initial sale of CDs. The company’s marketing strategy involve the use of discounts and bonus offer campaigns to encourage customer purchases and the successful perception created that products are sold at cheap prizes.
Conduct a Market Analysis for Qantas
Qantas airline is the largest in Australia and operate in a very competitive environment from the macro environment with more airlines developing from other parts of the world. The demographic environment supports the company with the increase in the increase in demand for Boeing services. The sociocultural environment ensures customer influences to prefer Qantas airbus making it command 65% of the micro level, but has reduced in ranking from the second in 2005 to seventh in 2010.
The economic environment; Qantas has been experiencing economic challenges and in August 2011 the company reported decline in market share leading to proposed structural changes to be made, including loss of 1,000 jobs in Australia and a plan to incorporate new Asia-based premium, alongside launching a budget airline, called Jet-star Japan, in partnership with Japan Airlines and Mitsubishi Corporation. This has led to labour disputes between the unions and Quatas management for the last 14 months that paralyzed the flights for days until the suspension was lifted October 30, 2011. The suspension left more passengers stranded in various airports and led to loss revenue. The labor disputes allowed competitors to take advantage, as it is unclear when the dispute will be completely solved.
The technological environment; the current introduction of Boeing airlines that carries more people at ago and are safer for long flights keeps Qantas competitive. The company adopted the use of outsourced solution in 2000 and adoption of the departure control module in 2008. Qantas also consider the quality and safety regulations set by the international community under the natural business environment.
Qantas controls the micro level business environment when it retained 65 percent share of the airline domestic market in Australia in 2010.
Qantas long-haul Business Class Sky Bed seats A Qantas Boeing 747-400 at Singapore Changi.
Cultivation of a strong customer relation is done by creating Customer Relation Management practice to help develop a unified and cohesive view of the customer from every touch point within the company. The database helps to identify customer needs, preferences and feedbacks against the competition.
Preparation for debate
The print media are doomed; in making integrated marketing decision, print media should be used alongside other strategies. This gives customers who cannot get online information a chance to read promotional information. In this case print media is not doomed.
Shock marketing tactics should be made illegal; Shock marketing instills fear into the minds of customers and can create negative perception of the whole product. Equally, shock images may cause undesirable heart medical condition like cardiac arrest thus should be made illegal.