Case Study: Quantas Airlines Essay Sample

Supply a definition of market demand.

The market demand for a merchandise is the entire volume that would be bought by a defined client group in a defined geographical country in a defined clip period in a defined selling environment under a defined selling plan ( Kotler 145 ) . It is non a fixed figure. but instead a map of the declared conditions.

How are market demand. market potency. and gross revenues calculating related to each other?

When companies want to gauge the current market demand. they attempt to find entire market potency. country market potency. industry gross revenues. and market portion. Once sellers have estimated the demand. they will take the degree of marketing attempt based on the expected degree of gross revenues. The company gross revenues prognosis is the expected degree of company gross revenues based on a chosen selling program and an false selling environment.

Might the information given influence the gross and net incomes that Quantas could accomplish in the hereafter?

The birthrate rate of Australia could be a factor in future net incomes for Quantas. but non so much as the competition of Virgin Airlines and lifting oil monetary values. Qantas. confronting increasing competition on some of its busiest paths from Virgin Atlantic Airways. Singapore Airlines Ltd. and Dubai-based Emirates. is besides losing domestic clients to Virgin Blue Holdings Ltd. “People are concerned that oil monetary values will hold a larger impact on Qantas’ fuel costs than ab initio thought. ” said Michael Birch. who owns Qantas portions among $ 72 million of assets he helps pull off at Wallace Funds Management in Sydney. “When fuel monetary value goes up the manner it has. there will come a clip when the cost of the hedge outweighs the hereafter benefit” ( Bloomberg. com ) .

How might Quantas employ such a tool as the Ansoff product/market enlargement grid in developing its growing schemes?

Ansoff’s matrix offers strategic picks to accomplish the aims. There are four chief classs for choice.

Market Penetration

Here. Quantas markets their existing merchandises to their bing clients. This means increasing their gross by. for illustration. advancing the merchandise. shifting the trade name. and so on. However. the merchandise is non altered and they do non seek any new clients.

Market Development

Here. Quantas markets their existing merchandise scope in a new market. This means that the merchandise remains the same. but it is marketed to a new audience. Exporting the merchandise. or marketing it in a new part. are illustrations of market development.

Merchandise Development

This is a new merchandise to be marketed to Quantas’ bing clients. Here. they develop and innovate new merchandise offerings to replace bing 1s. Such merchandises are so marketed to their bing clients. This frequently happens with the car markets where bing theoretical accounts are updated or replaced and so marketed to bing clients.


This is where the Airline markets wholly new merchandises to new clients. There are two types of variegation. viz. related and unrelated variegation. Related variegation means that they remain in a market or industry with which they are familiar. For illustration. a soup maker diversifies into cake industry ( i. e. the nutrient industry ) . Unrelated
variegation is where they have no old industry nor market experience. For illustration a soup maker invests in the rail concern.


“Quantas Cuts Profits” ( 2004 ) . Bloomberg L. P. Retrieved on March 22. 2005 from: hypertext transfer protocol: //quote. bloomberg. com/apps/news? pid=10001065 & A ; sid=a5yXBGYfk5x0 & A ; refer=movers_by_index

“Ansoff Matrix” ( 1957 ) . Monash University Business and Economics. Retrieved on March 23. 2005 from: hypertext transfer protocol: //www. buseco. monash. edu. au/depts/mkt/mtp_online/portfolio. php

Kotler. Philip ( 2005 ) . Marketing Management 11 e/d. Prentice Hall Publishing. Pearson Education. Upper Saddle River. NJ.

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