John Dutch 1006090 Professor Goodwin March 14, 2014
Qantas Airlines: witter !osedi"e
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Executive Summary
Qantas Airlines is e#$eriencin% unfa"ora&le $u&licit' as the result of an ineffecti"e and $oorl' ti(ed social (edia ca($ai%n) he' are facin% the ris* of increased da(a%e to what is re%arded as one of Australia+s stron%est &rands) o re&uild their i(a%e and a"ert an' additional har(, it is reco((ended that Qantas Airlines continue the contest as $lanned in order to deter(ine the (ost $ressin% custo(er issues) ith this, Qantas needs to i($le(ent a $u&licl' ad"ertised custo(er i($ro"e(ent $ro%ra( that see*s to enhance the -ualit' of ser"ice &' resol"in% these issues) As well, Qantas is ad"ised to in"est in social (edia trainin% $ro%ra(s in order to (iti%ate the ris* of a future $u&lic relations failure) he intended outco(e will hel$ $reser"e Qantas+ custo(er lo'alt', re$air their $u&lic i(a%e and ensure continued lon%.ter( $rofita&ilit') Situation
Qantas Airlines is in the (idst of a co((unications issue that is ne%ati"el' affectin% their $u&lic i(a%e) /"er the last 'ear, the co($an' &eca(e inundated with $ro&le(s in"ol"in% a nu(&er of en%ine trou&les, contro"ersial $hoto%ra$hs, union dis$utes and the strandin% of (ore than 6,000 $assen%ers after %roundin% their entire fleet) Pu&lic discontent o"er these issues was &rou%ht to li%ht after Qantas launched a $u&lic contest throu%h witter) housands of u$set custo(ers -uic*l' turned the co($etition into a tirade of harsh co((ents towards the airline ser"ice) ather than (onitor these tweets, Qantas &e%an than*in% users encoura%in% the( to continue to *ee$ contest entries co(in%) As $u&lic acri(on' %rew, a $arod' ouu&e "ideo was released casti%atin% Qantas and their e#ecuti"e counter$arts for their $oor co((unication with the
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$u&lic) 3"identl', Qantas is e#$eriencin% a situation that could ruin their re$utation as the world+s leadin% airline) hus, the co($an' (ust de"elo$ a $lan of action in order to a"oid further &rand "alue erosion and unfa"ora&le $u&lic senti(ent) Analysis: Immediate problem and underlying issues
he i((ediate $ro&le( of this incident is the ne% ati"e (edia $u&licit' that is continuin% to de"elo$) he $u&lic has ta*en to witter to "oice frustration and discontent o"er the airline+s recent set&ac*s) Qantas now faces the $otential alienation of lo'al custo(ers and the continued e#$osure of $ast $ro&le(s with the airline ser"ice) More i($ortantl' howe"er, conse-uences of this P disaster could e"ol"e into a $rolon%ed erosion of sales and $rofita&ilit', and ulti(atel' a tarnished re$utation for one of Australia+s stron%est &rands) he entire incident has e#$osed se"eral underl'in% or%aniational issues at Qantas Airlines) 5trate%icall', /li"ia irth and her tea( are ineffecti"e in e#ecutin% "alua&le social (edia ca($ai%ns) Prior to the ca($ai%n, irth and her tea( could ha"e e#a(ined the "olu(e and %eneral o$inion of tweets a&out Qantas in order to (easure the o"erall senti(ent a&out the airline) ro( an ad(inistration $ers$ecti"e, irth and her tea( ha"e de(onstrated $oor (ana%e(ent of Qantas+ social (edia outlets as e"ident &' the fact that no one was left to (onitor the witter contest)
Objectives
7urrentl', the $redo(inant o&8ecti"e for Qantas is to a"oid an' further a&rasion to their &rand i(a%e) !e#t, the' should see* to re&uild the trust lost fro( the contest and the 3
$re"ious incidents o"er the last 'ear) n doin% so, the' will &e a&le to sal"a%e their declinin% &rand "alue and reesta&lish the(sel"es as a relia&le, full.ser"ice airline) Alternatives
o -uell the i((ediate $ro&le( and a"oid an' additional de"aluation to the Qantas &rand there e#ist two distinct alternati"es) he first is to end the ca($ai%n and -uietl' select a winner a(on%st the %enuine entries) his will a"oid an' additional da(a%e to the co($an'+s i(a%e) Qantas will then need to follow u$ with a (edia address followin% the contest to de(onstrate that the' are in control of the situation) his address needs to outline that Qantas is learnin% how to &est co((unicate with the $u&lic and will use this e#$erience as a learnin% lesson) Althou%h "er' $ractical, a (a8or draw&ac* to this alternati"e is that it fails to directl' address the ne%ati"e feed&ac* and $u&lic concerns) he second alternati"e course of action is to continue the ca($ai%n des$ite the surroundin% ne%ati"it') here will alwa's &e critics with e"er' successful co($an' and thus Qantas should not let this detract the( fro( $ro"idin% "alue to their custo(ers) he (ost si%nificant downside $resent in this o$tion is that the continued contest criticis(s (a' inflict additional da(a%e to Qantas+ &rand i(a%e) o fi# this, Qantas could choose to refocus the ca($ai%n awa' fro( their &rand and (ore towards the actual contest) A si($le hashta% chan%e fro( Qantas;u#ur' to inour;u#ur'ra"el
he reco((ended course of action re-uires Qantas to continue the contest as $lanned awardin% the $rie to the &est entr') his is the ideal course of action &ecause it
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$ro"ides the co($an' with a "ia&le o$$ortunit' to i($ro"e their ser"ice) o do so, Qantas will need to assess the ne%ati"e feed&ac* and confront the criticis( head on) his cannot &e achie"ed &' si($l' chan%in% the hashta%) ather, Qantas (ust co($ile and ran* a list of the (ost $ressin% concerns recei"ed durin% the ca($ai%n) !e#t, Qantas needs to i($le(ent an i($ro"e(ent $ro%ra( focused on addressin% these concerns in order to enhance the -ualit' of their ser"ice) As this de"elo$s, the $ro%ra( should continue in the for( of discount cou$ons cou$led with sur"e's to &e filled out on an incre(ental &asis) his will hel$ re&uild custo(er lo'alt' and create lon%.ter( $rofita&le relationshi$s) Qantas should then see* to (a*e the necessar' chan%es addressin% the feed&ac* as it is recei"ed) hese i($ro"e(ents should &e $u&licl' ad"ertised "ia all $ossi&le (edia channels and should outline that custo(er concerns ha"e &een heard and ha"e &een effecti"el' dealt with) nternall', Qantas needs to in"est in social (edia trainin% $ro%ra(s for P e($lo'ees in order to (iti%ate the ris* of a future P disaster) he $u&lic will res$ond $ositi"el' to this $lan a s it shows Qantas ta*in% res$onsi&ilit' and directl' en%a%in% co($laints in such a wa' that shows the co($an' is %enuinel' tr'in% to sol"e custo(er concerns) Action Plan
o &e effecti"e, the afore(entioned $lan (ust &e e#ecuted i((ediatel' followin% the witter ca($ai%n) A -uic* res$onse e"o*es a sense of credi&ilit' with custo(ers and the (edia) hus, Qantas+ P tea( (ust construct a state(ent "ia all (edia channels $u&licl' ac*nowled%in% custo(ers that their feed&ac* has &een heard and that the' are de"elo$in% a $ro%ra( dedicated to i($ro"in% the -ualit' of their ser"ice) he i($ro"e(ent $ro%ra( should &e i($le(ented within 2 wee*s to allow a($le ti(e for
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Qantas to co($ile feed&ac* and $re$are necessar' resources) t should &e noted that -ualit' control i($ro"e(ents should &e i($le(ented o"er the ne#t (onth and $u&licl' ad"ertised "ia all (edia channels) he final ste$ is to institute an .wee* trainin% $ro%ra( educatin% P e($lo'ees on the funda(entals of $ro$er social (edia (ana%e(ent) he o"erarchin% ris* associated with this $lan is need for si%nificant (onetar' resources) o (iti%ate this, Qantas should consider le"era%in% their &rand stren%th to secure the necessar' ca$ital) he antici$ated outco(e is a restored &rand i(a%e and continued lon%.ter( $rofita&ilit') Anal'in% financial state(ents fro( 2010 throu%h to 2012 as well as custo(er sur"e' feed&ac* will &e used as (etrics to (easure success) deall', financial success will &e achie"ed if &oth re"enue and inco(e re(ain at or a&o"e le"els &efore the crisis) ro( a &rand "alue stand$oint, sur"e' feed&ac* will need to con"e' an o"erall $ositi"e the(e to "erif' that the desire outco(e was attained) Conclusion
ith the reco((endations set in (otion, Qantas Airlines will &e a&le to i($ro"e the -ualit' of their ser"ice &' assessin% ne%ati"e feed&ac* and custo(er concerns) As well, the $lan will hel$ the airline &etter (ana%e their social (edia channels to a"oid a si(ilar P failure) n turn, this will re&uild lo'alt' while also attractin% $otential consu(ers) he net result is lon%.ter( $rofita&ilit' and an increased &otto( line &ut (ore i($ortantl', the reha&ilitated $u&lic i(a%e and restored &rand "alue of the worlds leadin% lon%.distance airline ser"ice)
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