Preliminary Literature Review
Marketing strategy has great importance in any organization, as it offers a great competitive edge, and assists in establishing goods and services along with optimal profit making prospective. Further it helps a firm to make optimum use of available resources in order to offers a great sales message to the captured audience. Thus, an effective marketing strategy can deliver as a critical roadmap for the business, and aids in identifying the areas impacted by growth while facilitating in creating a plan to deal with customer needs. Along with thus, it can be said that Market expense directly linked to financial indicators such as sales profits on the basis of their connectivity business performance can be analyzed therefore present study aims to evaluate the impact of marketing expense on sales revenue of Quantas Group Australia.
Meaning of marketing strategy
Marketing expenses are the cost which is incurred in delivering the goods and services of the company to its customers. Advertising, agency fees, development of advertising and promotion activities, online advertising and many more are the example of the marketing expenses. Further for achieving the sustainable competitive advantages company does the strategic planning which is the long-term forward-looking approach (Armstrong & ey.al 2015).
Overview of company
Qantas is the one of largest long distance airline of the world, which was established in the 1920s and gradually become the largest domestic and international airline of Australia. The primary business of the Qantas group is the transportation of the customer by means of two airline brands such as- Qantas and jet star. This group is mainly known for providing safety to the customers, operational consistency, engineering and maintenance and best customer services. The financial performance of the Qantas Group is the last finance year was excellent due to its marketing strategy and promotional techniques which gives the strongest possible foundation for the future moreover the company always focus on delivering the quality services to the customer and placing the customers before profit. Further for meeting the competitive advantages the company spends on various promotional activities by which the revenue of the group has been increased.
Marketing strategies of Quanta’s Group
Quanta’s Group is highly focused on its executed marketing strategies, as it helps in differentiating itself from its competitors. The Quanta’s Group successfully executes its marketing strategy and delivers air travelling services throughout the possible regions, since it has managed its marketing and sales functions accordingly (Lovelock & Patterson, 2015). The offered services are promoted to customers in an effective manner, so as the customer would be aware of the packages, time and new routes offered by the airline. Quantas Group has implemented aggressive marketing strategies such as safety maintenance, right routes and aircraft, customer service excellence and operational effectiveness which have to drive and promoted its long destination travel services.
Further, they accomplish affirmative sales by putting extra efforts upon sales management while developing appealing travelling packages throughout newer routes (de Boer, 2018). The Qantas marketing team covers a broad-ranging remit; the department is inclusive of the experienced marketing team, which effectively manages media relationships and company-wide marketing strategies.
Overview of Company
Previous researches
A range of studies was held on the impact of marketing on the performance of the company previous to 1970s. For instance, it has been concluded by Lambin (1970) and Peles (1971) that marketing has an enduring influence over the sales, indicating that it makes an increment in the overall business effectiveness. In the study carried out by Sherman and Tollison (1974) held that industry marketing creates no influence directly on the derived profit, elaborating that the marketing cannot be treated as an actual independent and single variable, although it can have an indirect dependable variable impact that is based on technical aspects and price ranges.
With the application of VAR model method, it has been analyzed by Srinivasan (2006) data on a weekly basis from the automotive industry gathered in the course of six total years in order to examine the promotional investment make a contribution in forming further revenue from the brand. On the basis of the results, it has been concluded by the author that promotion has an affirmative cumulative impact on the revenues from the brand on a long-term basis.
Impact of marketing expenses on the sales revenue
The Qantas group offering many services to its customers by which the revenue of the company significantly rises. This group provides fast and free Wi-Fi services in the flight by dealing with the Stan, Netflix and many more. The company also for representing the new era changed in the iconic logo and livery design. Moreover, the marketing media of the Qantas group spends more than 70% in digital Channels by which the sales of the company increase. Company also facilitate the booking by the mobile app which helps the customer in the booking of tickets very easily along with this provide facility to the customer with respect to the mobile check-in, live flight updates, and book the flight ticket along with the hotel and many more, along with this company also through the social media channel enhanced the sales revenue which results in increment of the booking by 50% in the year 2018 as compare to the previous year by using the Qantas app (WORKING TOWARDS OUR VISION AN OVERVIEW OF QANTAS GROUP BUSINESS PRACTICES, n.d.). Qantas also provide the services on social media by which any customer can place an enquiry, the result of 2018 shows that there is an increase in 20% queries through the social media as compared to the prior year.
Marketing Strategies of Qantas Group
Data and digital transformation engaged the more customers and uplifted the revenue of the company. The company also makes various strategies for the product and services to drive the customer motivation. Since the trust is the key element of any company, therefore, the company continue to invest in the customer, people and community partnership for ensuring the strong position in the brand. Investment in the brand leads to maximise sales revenue.
Moreover for accepting the market Change Company also provides various financial services to its client such as books by the credit card and along with the booking, the company also offers many benefits to the customer so that customer can get attracted towards the booking which leads to increase in the sales revenue of the company. Further the main objective of the company to provide the safety to the people by developing the strategies and measurable objective for achieving the safety targets for this company also provide the insurance services to the client at the reasonable price so that customer can satisfy with the company and results in the more effective acquisition of the customer. Along with this Qantas has also established various entertainment system in the flight in the form of audio or video entertainment and provide the customers with several features like Wi-Fi and mobile phone functionality or connecting the electronics (WORKING TOWARDS OUR VISION AN OVERVIEW OF QANTAS GROUP BUSINESS PRACTICES, n.d.).
The company also started the Frequent Flyover Program with a view to improving the customer loyalty and operating performance. By this program, the company can get the value-added information such as the member profile, customer pattern from the customer by which company gives sufficient focus on the customer which leads to the positive impact to the customers.
Research aim and Objectives
The primary objective of the present study is to determine the impact of evaluating the impact of marketing expense on sales revenue of Quantas Group Australia. This is supported by the following objectives:
- To evaluate the importance of marketing expenses on business.
- To assess marketing strategies of Quanta’s group.
- To determine the impact of evaluating the impact of marketing expense on sales revenue of Quanta’s Group Australia.
Research questions
- What are the strategies employed by Quanta’s Group Australia for marketing of their products and services?
- What is the impact of strategies employed by Quanta’s Group Australia for marketing of their products and services?
Data collection
For the present investigation, data will be collected from secondary sources which will include the company’s annual report, official websites of the company, books, journals, Google scholars, newspapers and articles. The data will be collected from all trusted and viable sources while making sure that it is not too old. This will help in considering the impact of evaluating the impact of marketing expense on sales revenue of Quantas Group Australia, Secondary data sources in the concerned research, as it is totally company-based, and the study is relied on analyzing the two financial indicators for which the secondary sources are best suitable (Johnson & Sylvia, 2018). There, this method of data collection is highly beneficial to take the authentic and relevant sources into account to solve the research questions effectively, while ensuring the proper attainment of research goals and objectives.
Previous Researches
Data analysis
Data will be analyzed through quantitative analysis, because analysis of two financial indicators is to be done, along with this correlation tool will also be applied in order to indicate whether marketing expense and sales of Quanta’s group are having a positive or negative relation on their sales. Quantitative analysis is done to interpret the specific behaviour by making use of mathematical as well as statistical research, measurement and modelling (Treiman, 2014). The main rationale of using quantitative analysis is the present study is to analyze the actual figures of the company in terms of sales revenue and profit margins; on the other hand to get better insights on the overall performance of the company.
In this study, correlation tool is implied, as it is supposed to be used where there is no identification of the response variable. As connected to the study, it will help in measuring the strength and the linear relationship direction between two variables, this specified analysis type is beneficial when the researcher is required to form and analyze the possible connections amid variables (Samuel & Okey, 2015), The application of quantitative and correlation tool is made, as it matches the entire purpose and nature of the study to find out the connection of variables.
Gantt chart schedule
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Week 2 |
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Week 4 |
Week 5 |
Week 6 |
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Identification of research problem and development of objectives |
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Developing literature review by considering authentic sources |
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Compilation of Literature review |
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Data collection from secondary sources |
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Data analysis by applying appropriate quantitative tools |
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Developing finding chapter and Submission |
Data sources
Research sources are a crucial part of the study as it will provide raw data for the analysis. The cited study will be supported by the following sources:
- Annual report of the Company of the past five years
- Official website of the Company
- Research journals
- Airline industry reports
On the basis of above describes sources, the researcher will able to attain information on profit and marketing expense of last five years further marketing strategy will be analyzed by considering the annual report and official website of the company. A literature review of the company is supported by authentic journals and reference of the same has been done to provide credit to the researcher.
References
Armstrong, G., Kotler, P., Harker, M. & Brennan, R., (2015). Marketing: an introduction.
Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
de Boer, E. R. (2018). Strategy in Airline Loyalty.
Sherman, R.; Tollison, R. (1971): Advertising and profitability. The Review of Economics and Statistics, 53 (4), 397-407
Lambin, J. (1970): Optimal Allocation of Competitive Marketing Efforts: An Empirical Study. J.Bus. 43 (4), October 1970
Peles, Y. (1971): Rates of Amortization of Advertising Effects. Journal of Political Economy, 79 (5), 1032-1058
Srinivasan, S. (2006) how Do Marketing Investments Benefit Brand Revenue Premiums (online) Available through < https://www.researchgate.net/publication/228773876_How_Do_Marketing>. [Accessed on 23 August 2018].
JOHNSON, E., & SYLVIA, M. L. (2018). Secondary Data Collection. Clinical Analytics and Data Management for the DNP, 61.
Treiman, D. J. (2014). Quantitative data analysis: Doing social research to test ideas. John Wiley & Sons.
Samuel, M., & Okey, L. E. (2015). The relevance and significance of correlation in social science research. International Journal of Sociology and Anthropology Research, 1(3), 22-28.
WORKING TOWARDS OUR VISION AN OVERVIEW OF QANTAS GROUP BUSINESS PRACTICES, n.d. Available through < https://www.qantas.com.au/infodetail/about/corporateGovernance/BusinessPracticesDocument.pdf>.[Accessed on 23 August 2018]
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