Qatar airways began their company in 1994 with the
vision from Sheikh Hamad to create an international airline that will provide
the highest standards regarding service and excellence, since that vision it
has developed into the fastest growing airline in history of flight.
In 1997 Mr. Akbar was delegated in the leadership of group Executive and wanted
to direct the airline to be an award-winning carrier also being the best on
Beneath the management of Mr. Al Baker to achieve this
mission, Qatar Airways attained the goal of 100 destinations over their global
routes, this gave them the award of “Airline of the year 2011” (Qatar Airways, 2017a), this award had
over 18 million votes worldwide.
Qatar Airways have continued to receive serval awards
since and towards 2017, this embraced them to expand to Doha, the capital also
where their headquarters are located (Qatar
Airways, 2017b), which advanced to over 150 destinations globally. Thus,
the airline continues to grow and expand annually (Qatar Airways 2017a).
Analysis of the
The marketing mix is characterized into a sequence of
4 variables, with the function of the company to accomplish expectations of
selling services (Ameri, et al. 2012).
Each variable should have the result to reach the best version of accomplishing
the organisation objectives, furthermore the 4 variables are product, place,
price and promotion (Sabou, F. 2014).
Product is known to be everything that the company
produces that is tangible and a service, these are for ensuring to satisfy all
the needs and desires of the customers that purchase (Smith, 1994).
Qatar airways offer many products for consumers, most
of the products that are sold are speciality as what is offered might be bought
once or twice annually by customers as they’re booking holidays which are
intangible (Doyle, P. et al, (2006),
other forms are the different cabins offered; First, Business and Economy class
(Qatar Airways, 2017c).
Many companies follow the theory of levels of products
created by Kotler which addresses different questions for the result of
understanding customer value to sell products successfully (Kotler, P. et al. 2016).
The three levels are the Core product, actual product and augmented
product; the core product for Qatar Airways is the services that thy provide to
motivate customers to continue their decision to fly with their airline, the
actual product is the different cabins that they offer as this will connect to
the customers because of the features, different packages and the quality level
that is provided to satisfy different types of customers, and finally the
augmented product where the airline offers additional services to gain
fulfilment (Kotler, P. et al, 2016), one
augmented product they offer is privilege club memberships; they have different
membership tiers which starts with burgundy, silver, gold and platinum, the
higher the tier the more benefits the consumer can appreciate (Qatar Airways, 2017d). The airline
also offers refunds if the customers wish to cancel their flight (Qatar Airways, 2017e).
Place is not only the physical location of where the
products are sold, however it is the different ways that the company scatters
their products so that its easily presented to all customers that decide to
purchase (Hakansson, 2005).
Qatar Airways is known for its location online as they
do not have their own branches. They also provide travel agents worldwide to
give further support to customers (Qatar
Airways, 2017f), as well as their CRS for customers to get into contact (Qatar Airways, 2017b). Additionally,
the airline acquires the ATO channel to give the accessibility for customers to
buy tickets at the airport they want to travel from (Qatar Airways, 2017g).
Qatar Airways have two different
distribution channels which are direct; the action where the company sell their
products straight to customers through their online channel, along with
one-tier distribution that represents one intermedia that’s located between the
company and the customer for expansion reach (Dent, 2011).
The airline operate online and through their travel agents. The first one is
selling directly to the customers, they do this by their website as customers
have access to book flights and more. The second type of distribution is
selling through retailers; as they have travel agents, their products go
through those retailers and again to the customer (Dent, 2011).
(the Qatar airways group)
Price is the strategy of exchanging the products for a
specific amount to have ownership of what was sold to the customer, as well as
providing discounts and offers (Ellickson,
There are many different pricing strategies that
companies use, however they do not use all of them. One strategy that guides
companies to make the decision of which pricing strategy to use is elasticity
of demand; inelastic is described as consumers will allow themselves to pay any
amount for the product, whereas elastic are consumers who will lower their
price range (Lancaster, G. et al 2010). Qatar
Airways use inelastic pricing, due to their products being high in luxury and
richness, consumers understand that the high prices, therefore not discouraged
by paying the full amount.
Premium pricing translates to keeping the price of the
products elevated as this benefits the appearance of great quality. This
strategy is used within Qatar Airways as it is valuable for them to be a high
quality luxurious airline, thus seen through their pricing (Hill, E. et al 2004).
Price bundling is also another strategy the airline use, which they offer many
different products/services that are put together resulting into a single price,
the airline use this by offering holidays with hotels, car rentals etc (Qatar Airways, 2017h).
Penetration pricing is usually used for large companies as it can be risky as
they lower their prices from their competitors to entice customers. However, this
is not an issue for Qatar Airways as they are a successful airline, they normally
use this as a seasonality strategy where during different seasons they lower the
price of products to draw customers from other competitors (Hill, E. et al 2004).
Promotion is the form of being able to communicate
with customers and give them the idea of being able to connect with one another
about the products that’s being communicated to them (Matei, 2014).
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