Assignment Task

1. Background Research

Qantas Airways Limited is a major airline that specialises in transportation and freight services. Qantas was founded in 1920, formerly known as Queensland and Northern Territory Aerial Services (QANTAS). Qantas has become a well-known airline that has expanded its operations to numerous subsidiaries. Qantas Link provides airline transportation to regional destinations Australia-wide. Whereas, Qantas Domestic and International provide an international service that targets business and premium consumers, establishing itself as Australia`s premier airline, and joint ventures have been formed with numerous global airlines. Domestic services provide premium and business services which provide full-flight entertainment aiming to enhance consumer experience through innovative domestic transportation.

Qantas Freight is `Australia`s largest independent air freight services business, shipping more than 4,000 air freight items to over 500 destinations globally every day` (Qantas Airways Limited, n/a). Jetstar Group has expanded business operations into Asia and Japan who are partnered with Qantas Group. Jetstar`s airline promotes itself as a `value based, low fares network of airlines operating in the leisure and value based markets offering all day, everyday low fares` Offering air services to (Qantas Airways Limited, n/a). Overall, Qantas Airways Limited should review business functions in order to address concerns regarding service quality.

The background and the nature of the problem/opportunity

Jetstar Group, a subsidiary of Qantas, was investigated for providing false and misleading consumer rights guarantees in the event of flight cancellations. The ACCC investigated Qantas` untrustworthiness due to issues with the airline and its subsidiary Jetstar. Flight cancellations or delays, as well as luggage handling issues, called into question Qantas Airways Limited`s operational efficiency. Untrustworthiness has harmed Qantas` corporate image and left customers dissatisfied, eroding its brand credibility. Uncertainty about Qantas` credibility presents an opportunity to focus on operational concerns in order to reestablish consumer trust and brand credibility.

The insights gathered from desk research (secondary research) about similar issues

In July 2022, Qantas Airways was investigated for time efficiencies. According to the findings, 52.3% of all Qantas designated services departed on time. In comparison, 53.0% of flight arrivals were on time (Australian Government & Department of Infrastructure, Transport, Regional Development, Communications and the Arts, 2022). In December 2017, the ACCC Airline Report stated that Qantas` received complaints about airlines, including `no refund` statements and issues relating to consumer guarantees` (ACCC Undertaking, n/a). Despite previous problems with compliance with Australian Consumer Law, Qantas committed a similar offence with its subsidiary, Jetstar. `The Federal Court has fined Jetstar Airways Pty Ltd $1.95 million for false or misleading representations about consumer guarantee rights under the Australian Consumer Law (ACL)` (Australian Competition and Consumer Commission, 2019). As a result, demonstrating the trustworthy concerns about Jetstar`s failure to reimburse consumers` entitlements under consumer law. Furthermore, Qantas subsidiary Jetstar had the "highest percentage of cancellations (at 8.8 percent)" (Australian Government & Department of Infrastructure, Transport, Regional Development, Communications, and the Arts, 2022), indicating unreliability issues with Jetstar`s business operations. Our marketing research team discovered through secondary research that service quality has been a major source of concern for Qantas Airways.

Who is your client?

The client for whom we will conduct market research is Qantas Airways Limited. We were tasked as marketing researchers with gathering information about the company`s service quality. Our research team has been tasked with investigating Qantas` service processes in order to identify potential issues with the airline`s business function. By conducting this research, we will gain a better understanding of consumers` perceptions of the company`s service quality. This report will outline the key themes identified by consumers in our research, as well as identify problem areas that Qantas should consider when reviewing current operations. This problem definition is critical to Qantas airways` operational success because it indicates the nature in which the company is perceived by consumers and identifies key themes in which the company excels as well as areas for improvement.

Should Qantas Airways Limited view use business functions in order to improve its service quality?

This issue relates to a wide range consumer concerns. Qantas hasntly received a number of complaints about their busirs processes in terms of trustworthiness, brand. hility, consumer satisfaction, and their ability to meet a wide range of consumer demands. As a resu. we as a group of market re earchers created a clear management decision problem to clearly understand how Qantas n create higher brand engagement and satisfaction, supported by the integration of primary d secondary research. The MDP will primarily focus on qualitative research to better und stand consumers, allowing Qantas to achieve operational excellence.