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Jetstar segmentation

Segment 1 JetStar use multiple segmentation factors to segment the market and target a variety of different consumers and meet a variety of needs. One of the many segments that JetStar target would be young students aged between 18-25 who don’t have much dispensable income but want to travel for adventure and the thrill of experiencing the nightlife and parties of other regions. JetStar is a low-fare airline that appeals to young students by offering a cheaper service then its competitors and encourages repeated use of the service through loyalty programs which is beneficial for JetStar as the segment is statistically more likely to holiday and therefore have a high usage rate of airlines (Grigolon, Kemperman and Timmermans, 2012). Young students are more inclined to seek low-fare airlines such as JetStar because students are more likely price sensitive due to the fact that they don’t have much disposable income (Grigolon, Kemperman and Timmermans, 2012). It is also believed that since the segment is price sensitive they are more willing to deal with the substandard service provided by low-fare airlines such as lack of pillows, entertainment and food. Statistics from a study undertaken by Grigolon, Kemperman and Timmermans showed that a majority of students spend 26-40 hours a week studying and only find time to work 10 hours or less a week leaving minimal disposable income for leisure activities such as holidays (2012). Furthermore, the segments lifestyle consists of students who likely lives in urban areas as they are more likely to be exposed to the nightlife this way and will likely be more inclined to go on holidays to explore the world. Low-fare airlines such as JetStar shave made it possible for young teens who enjoy clubbing and other nightlife activities to experience adventure and fun in other regions by providing a means of travel that they can afford (Sönmez, et al., 2013). The segment typically celebrates certain life achievements that occur during the late teens and early twenties periods by going on a holiday such as 21st birthdays and arguably the busiest travel period of the year schoolies. Over 6000 young Australian students flew to Bali in 2016 to celebrate schoolies with even more going to the gold coast it is clear that there is a massive market of young students who don’t have much disposable income who are looking for cheap airfares to destinations that are renown for having a lively nightlife filled with adventurous young adults looking to party(FERREIRA, 2016). JetStar only flies to 14 countries’ internationally however all the popular schoolies locations that this segment travels to are included in their destination options (jetstar.com, 2018).

Profile of the segment -young students aged between 18-25 -are typically more willing to accept the lower quality service provided by the low-fare airline compared to other segments. -typically live in urban areas and are more exposed to the thrill of clubbing and other nightlife activities. -typically have lower income due to other responsibilities such as studying and university timetable -is price sensitive due to lower income therefore more likely to choose low-fare airlines such as JetStar -typically celebrate life events such as 21st birthday and schoolies with holidays -active travelers with a high usage rate of airlines - higher usage of loyalty programs to maximise product value

Bibliography Grigolon, A., Kemperman, A. and Timmermans, H. (2012). The influence of low-fare airlines on vacation choices of students: Results of a stated portfolio choice experiment. In Tourism Management, 33(5), pp.1174-1184. Sönmez,, S., Apostolopoulos, Y., Theocharous, A. and Massengale, K. (2013). Bar crawls, foam parties, and clubbing networks: Mapping the risk environment of a Mediterranean nightlife resort. In Tourism Management Perspectives, pp.49-59. FERREIRA, B. (2016). Whether you like it or not, schoolies has become a right. Central Western Daily. jetstar.com. (2018). Flights. [online] Available at: https://www.jetstar.com/au/en/flights [Accessed 18 May 2018].

Extra stuff I did in draft stage and before we talked to lecturer if you want anything you can use go for it JetStar creates a lower cost service in comparison to other leading airlines in Australia targeting leisure travelers who are seeking the cheapest possible flights to destinations within Australia or nations relatively close to Australia. Uni students and other young adults typically lack large amounts of money due to being new to the workforce or not being able to work due to restrictions such as university timetables. JetStar target this market by providing cheap affordable air fares to locations that are popular to students and young people such as Bali, Gold Coast and Fiji. Jetstar can target multiple roles of individuals who have a role in the buyer decision making process. Most of the time young people will spend their own money they have saved to pay for their flights however events such as schoolies and 21st birthday presents are commonly brought for children by their parents so JetStar target both the (payer,buyer iunno) when segmenting the market and offering cheap affordable flights. This market segment is clearly highly influenced by demographic factors with JetStar marketing their product towards young adults aged between 18-25. They also minimize all expenses to ensure they can provide their service at the lowest possible cost this includes charging customers for items that are normally bundled with flights on other airlines such as food and pillows. This targets young adults demographically as they may not possess the necessary income to afford nicer airlines or they may be more inclined to deal with less comfortable conditions compared to older people that provide food, entertainment and pillows to patrons flying with them. Being an airline company geographic factors are clearly an important part of targeting the market. JetStar offer flights to and from 15 country’s from Australia ranging from mostly country’s in the oceanic and Asian areas surrounding Australia although they do provide one exception in this with trips to Honolulu also being an option (JetStar website). They also fly to 19 different locations from within Australia which is very important to satisfying the market as statistics from the airlines industry profile: Australia states that in 2016 there was nearly 60 million flights domestically in Australia which makes up 72.8% of flights coming from Australia. Capitalizing on the most popular market is important so offering a big variety of domestic locations helps JetStar market to a wide variety of people.

When it comes to traveling for leisure flights likely don’t have much of a high usage rate young adult will likely have to save up for multiple years to afford big holidays. However, if their income is high enough young adults may plan smaller holidays which would increase the usage rate and if they are provided with a service that is satisfactory for the price paid brand loyalty may occur meaning throughout their entire life even when they come into more income the individual may fly with jetstar because of brand

loyalty. People who travel because of business are much more likely to fly regularly meaning their usage rates would be high. By providing a good service to business men its likely brand loyalty will occur resulting in benefits for jetstar.

Personality traits of someone who flies with JetStar. Probably low-middle class and is looking for the cheapest means possible to go on a holiday. Young,Adventurous and eager to explore the world. Looking for a brief means of relaxation after a busy schedule. Likely to be price sensitive and looking for maximum benefits sought for price. Is likely to be employed as their it is still expensive to travel regardless of the airline you fly with. Most possess an open attitude willing to accept and explore foreign places and accept their culture.

ProfileYoung and employed likely has money but not a lot and is looking for a fun holiday either with friends of similar description or by themselves as they wish to explore the world. Likely to be in low-middle class can be either male or female gender plays no role in the profile jet star market to. Likely to have a positive attitude and values that mean they feel comfortable and want to explore other

Jetstar 2016 commercial Jetstar convey their signature message in all advertising including the 2016 television commercial which is all day every day , low fares which reinforces their company image of being the cheapest most effective means of attaining a flight to go on a holiday. The advertisement also conveys a message of excitement and adventure showing several of the popular tourist destinations that JetStar fly to and imagery of young adults celebrating and having fun in a fiji bar.

Students’ choices seem primarily driven by transport mode, followed by duration of the trip, travel party, destination and last, accommodation. As transport mode is the most important choice, we may conclude that students’ travel choices are primarily driven by costs paid for transportation. Low-fare airlines and costs considerations in general played a major role influencing their portfolio decisions. It seems that the advent of low-fare airlines is changing students’ vacation planning, and this process is likely to start with the search for low-priced tickets. Because they are mostly adventurous and quite flexible tourists, even if they look for variety when seeking for new places they have never visited before, costs seem to drive

them when calculating the transportation costs involved. One may argue that the importance of transport mode is an artefact of the constructed design in the sense that price, which might be the main driver of student choices, was not explicitly varied in other choice facets such as accommodation....