JetStar Digital Marketing Report Essay Example

caused a surge in aircraft fuel prices. The increased demand from financially capable consumers intensifies price competition among low-cost airlines while reducing prices and making flying more accessible.

If average disposable income increases due to business and industry growth, it will benefit both business and leisure consumers in the airline industry. Additionally, there is a socio-cultural and demographic aspect to consider as Australians increasingly seek and purchase the most affordable airfares.

The market in Australia has experienced aggressive growth from low-cost airlines like Starters, Tiger, Air Asia, and Virgin Blue. This saturation necessitates differentiation for survival. Consumers have also become more demanding regarding service and standards.

The transition to exclusively digital airline ticket purchasing is almost complete with online check-ins improving airport efficiency.Starters, a low-cost company, recognizes the importance of adapting to technological developments in order to operate efficiently, save fuel, and minimize costs. In today's digital age, being technologically innovative is crucial for their success. Additionally, Starters acknowledges the serious issue of climate change and has taken steps to address it. In 2007, they introduced a passenger Carbon Offset scheme as part of the government's "Greenhouse Friendly" initiative. They have also implemented strategies such as fuel efficiency and reducing aircraft weight to minimize their environmental impact.

In terms of marketing, Starters understands that it plays a vital role in their success due to industry price competitiveness. They value their brand image and last year introduced the "Punctuality Promise" campaign to demonstrate their commitment to on-time performance for domestic flights. As part of this campaign, customers would receive a $25 voucher if their flight arrived more than 10 minutes late, regardless of external factors like weather conditions (Kerr, 2014).

Furthermore,

Starters has partnered with the Tasmania Government and invested approximately $600k in a cooperative marketing strategy with Tourism Tasmania. The aim of this collaboration is to attract more visitors to Lancets and Hobart outside of peak travel periods. By boosting the economy and creating jobs through repeat visitation, they hope to benefit both themselves and the local community (Cradle Coast 2015).Tourism Tasmania's marketing messages are delivered to Starters passengers through various channels, including in-flight entertainment, magazine features, TV, print media, digital media, radio, and social media platforms such as Twitter, Instagram, and Facebook (Cradle Coast 2015). In recognition of the significance of social media in effectively reaching their target audience at lower costs compared to other advertising options available today, Starters decided in 2010 to allocate 40% of their total marketing budget specifically towards social media platforms (Toaster 2010). Consequently, Starters effectively utilizes various platforms such as Twitter, Instagram, and Facebook along with a designated Youth Channel to connect with their target audience (Toaster 2010).

Starters also uses various channels like social media platforms to share special offers, company updates, announcements while promptly responding to customer queries. Additionally they have developed a user-friendly app that simplifies the browsing and purchasing process for customers. A successful example of their social media campaign occurred in May 2009 when they offered a Twitter-only sale with 1k seats for just $0.02 which quickly sold out (Toaster 2010).Such campaigns encourage consumers to regularly engage with the page and check it frequently in order to avoid missing out on future opportunities. The impact of digital marketing technology on Starters and the industry primarily revolves around social media, which has become an addiction

for millions worldwide. Its cost-effective nature allows firms like Starters to save a significant amount of their marketing budget while achieving better results (Toaster, 2010). Targeting a younger audience sets Starters apart from other airlines in the industry and makes social media marketing even more suitable for them. In today's competitive airline industry in Australia and worldwide, companies are constantly seeking ways to differentiate themselves by offering unique customer service experiences, superior facilities or entertainment options. One strategy employed is catering specifically to tech-savvy consumers. As digitalization becomes more prevalent, airlines must innovate to maintain their brand identity and avoid falling behind. Offering on-board Wi-Fi service during flights has been a major trend in the past five years, either provided for free or at a specific fee (Mackenzie, 2005).In the airline industry, there are generally two types of customers: business travelers and leisure travelers. According to Mongo (2012), having on-board Wi-Fi is a competitive advantage for airlines, particularly for business travelers who can use it for work-related tasks like emailing and making Wi-Fi-enabled phone calls during their flight. Despite potential flaws in the technology, offering this service sets airlines apart from others and attracts more customers. Another recent digital trend adopted by many airlines is the installation of at least one USB port per passenger, usually found in the armrests or front console of seats. This feature is convenient for both business and leisure travelers as it allows them to freely use their phones or digital devices throughout the flight while ensuring that their devices stay charged mid-flight.

These features specifically cater to the needs of tech-savvy consumers as society becomes increasingly reliant on technology. There

is a growing number of consumers with these needs. In 2011, Starters Airlines became the first airline to provide passengers with pads for in-flight entertainment. These pads are available in both economy class and the business package and offer movies, games, and digital magazines at a small fee. Other airlines have also adopted this innovative approach by Starters Airlines."Price and price wars among airlines have a significant influence on customers. In the past ten years, more airlines have engaged in price wars, leading to increased awareness among potential customers and a demand for competitive prices for the services they receive.

The rise of websites like Webbed and Scanner has contributed to this trend. These websites allow consumers to easily compare prices for specific flights online through their website or app. As a result, consumers have become more demanding in their search for competitive prices.

This increase in price comparison options could potentially impact brand loyalty negatively, especially in the leisure sector. Consumers now prioritize price over brand when making travel decisions (Scanner, 2015). With numerous online fare comparison options available, consumers can explore all their choices and select the option that best suits their needs. Factors such as time availability, prices, stopovers, and other variables that enhance the overall travel experience can now be taken into consideration when making a booking decision (Scanner, 2014).

According to a survey conducted by Scanner in 2014 with 1,523 respondents: desktop computers accounted for 64% of flight bookings made; mobile phone bookings saw an impressive increase of 88%, reaching 18%; tablet bookings also increased by 31% to reach 18% (Scanner, 2014).An analysis of Scanner's global data in 2014 revealed a staggering surge

of 152% in flight searches conducted on handheld devices. This significant shift highlights how consumers worldwide now search for and book flights using Scanner's platform. In a report from 2012, John Gucci, the managing director of Webbed, stated that mobile devices accounted for approximately 20% of their search volumes. Over time, the percentage of online e-ticket bookings for air travel has significantly increased in line with the growth of Scanner as a flight searching and booking platform (Webbed, 2012). This reflects the rapid evolution of the industry, as more consumers opt for the convenience and popularity of online booking. However, there is a high level of consolidation among suppliers in the industry^, with only a few firms dominating the market for airlines. Starters heavily relies on Airbus and Boeing as its main suppliers for commercial aircraft, expecting them to deliver innovative and high-quality products that meet consumer safety and entertainment needs. In 2014, Starters introduced its first Boeing 787 Dreamlike aircraft known for its fuel efficiency and sleek design. To keep up with society's evolving demands for advanced technology, both Airbus and Boeing are expected to continually adapt and enhance the digital components of their aircraft (Danger et al., 2011).Santa's response to competing against Virgin Blue was to target consumers from lower socio-economic backgrounds who still have access to air travel. Starters, a low-cost airline created for this target market, primarily focuses on young adults aged 18-25 enrolled in higher education programs. These individuals are media-savvy, socially conscious, and active on platforms like Facebook, Twitter, and Instagram.

The company has set specific goals for increasing its online presence: gaining an additional 90,000 new Facebook likes, reaching

a total of 500,000 likes; increasing Twitter followers by 10,000; and growing Instagram followers by 40,000. Additionally, Starters aims to boost repeat purchases of airline tickets by 20% over the next two years.

To achieve these objectives within one year and establish a 95% awareness among the target audience,it is crucial for Starters to maintain their brand identity while providing affordable services.Email subscriptions can be utilized as a means of creating awareness and generating interest in online sales promotions. Important information such as upcoming deals,in-flight service offerings,and newly added destinations can be shared with subscribers.

However,the frequency of emails should be controlled to avoid overwhelming consumers with spam mail.In addition to email marketing,starters can increase awareness through online advertising on relevant websites,this includes their own website.To enhance its impact, Starters can offer an attractive discount to high school or university students who want to fly with them as an online sales promotion during specific times of the year when affordable vacation options are sought after, such as May/June and October/November (coinciding with exam periods for university students). Utilizing digital marketing through animated screens in train stations and bus shelters can effectively tap into the mindset of the target audience during a stressful time of year.

Starters has found Backbone, Twitter, Instating, and Blobs to be effective marketing tools. Social media marketing is proven to be an effective and financially advantageous strategy for Starters when implemented correctly. A significant portion of their marketing budget is allocated to social media. They utilize Instating, a user-friendly tool that generates brand awareness and improves brand identity. It is recommended that they aim for at least one daily post on social media platforms.

In April, Starters only posted 13 times, emphasizing the need for increased frequency. Posting more frequently attracts a larger following and ultimately enhances Starters' presence on social media.

Additionally, there is potential for improving Starters' Backbone page. One idea suggested is creating a quiz that gathers feedback on marketing campaigns or flight schedules.Participants may be motivated by the opportunity to win a $200 voucher or a return ticket to any destination.