MARK3081 Distribution Strategy And Retail Channels

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MARK3081 Distribution Strategy And Retail Channels

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MARK3081 Distribution Strategy And Retail Channels

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Course Code: MARK3081
University: University Of New South Wales

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Country: Australia

Question:
Analyze the distribution strategy for Qatar airlines tickets in the local market. What level of distribution density the company is using for this product ? why? Is the company using more than one channel (direct and non direct, electronic)?Why?
 
Draw a digram depicting distribution channels used by the company and identify companies at each stage/level. Describe the location of outlets currently used to sell the product to end customers. Why you think the company is using these locations?
Answer:
Introduction:

The airline industry is one of the fast evolving industries due to the enhanced needs of transportation facility in the context of globalization. Qatar Airlines thereby devised the strategy of enhancing the distribution channels through maximization of market penetration and high competition among subscribed airlines in order to maintain a competitive edge to the operations that are undertaken by the same. Maximization of market penetration will be helping the organization in undertaking the smooth functioning of the same in a highly competitive market scenario. On the other hand, heightening the competition among the subscribed airline companies will be ensured through the maintenance of quality of the service offerings of the business.
 In order to maximize the market penetration, Qatar Airlines undertook steps to develop suitable computer reservation systems through which tickets can be booked online. On the other hand, the organization also devised direct and non- direct channels of distribution like call centers and online travel agents respectively in order to facilitate the mass distribution. Majority of the tickets that are issued by the airline company are made through the online portal and registered reservation sites of the organization (Guo et al. 2013).  The organization focused on maximizing the density of distribution through their online portals in order to avoid situations of fraudulent activities like fabricated tickets that might harass the customers in the last minute (Borenstein  and Rose  2014). On the other hand, the organization also aimed at undertaking moderately dense distribution the tickets as prize in different contests with the view of promoting their service offerings for a wider market penetration. It has helped the organization in enhancing the market penetration activities through encouraging and persuading the people to make a try of the services offered by the business.
the organization undertakes the distribution of the tickets are  through different direct, indirect and online mediums. The organization undertakes the indirect distribution of the tickets through collaborations with other organizations featuring in the contests that are held by the same (Bilotkach  and Pejcinovska  2012).  This strategy has helped Qatar Airlines in undertaking the promotional activities of the same while distributing the tickets. On the other hand, the organization created the online portal for the online registration purposes in order to facilitate deeper market penetration around the world. The different locations that are utilized by the organization are aimed at sustaining the competitive edge of the same while operating in the diverse international markets (David Mc A  2013). The organization has also established healthy relations with the travel agents and other stakeholders in order to facilitate the proper distribution of their flight tickets as per the needs and convenience of the customers. The mass distribution strategy that is adhered by the organization is aimed at making the target customers aware of the different services that are provided by the organization and thereby to reach out to the customers more viably.
References
Bilotkach, V. and Pejcinovska, M., 2012. Chapter 5 Distribution of Airline Tickets: A Tale of Two Market Structures. In Pricing behavior and non-price characteristics in the airline industry (pp. 107-138). Emerald Group Publishing Limited.
Borenstein, S. and Rose, N.L., 2014. How airline markets work… or do they? Regulatory reform in the airline industry. In Economic Regulation and Its Reform: What Have We Learned? (pp. 63-135). University of Chicago Press.
David Mc A, B., 2013. Service quality and customer satisfaction in the airline industry: A comparison between legacy airlines and low-cost airlines. American Journal of Tourism Research, 2(1),pp.67-77.Guo, X., Ling, L., Dong, Y. and Liang, L., 2013. Cooperation contract in tourism supply chains: The optimal pricing strategy of hotels for cooperative third party strategic websites. Annals of Tourism Research, 41, pp.20-41.

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