Competitors

Jetstar is Qantas’ low fare airline offering services across Australia, New Zealand and the Asia Pacific region. Jetstar's Australian operation is wholly-owned by Qantas and is managed separately and operates independently. Jetstar consists of Jetstar Asia which is a Singapore-based partnership between Qantas (49%) and Singapore company Westbrook Investments (51%) with the hub based in Singapore.

AirAsia operate a fleet of 90 aircrafts serving more than 142 routes covering over 70 destinations across Malaysia, Thailand, Singapore, India and China. The company primarily operates in Malaysia, where it is headquartered in Petaling Jaya.

A branch of the company, AirAsia X, was established to provide high-frequency point-to-point networks to the long-haul business. The company also operates two hubs, Chiang Mai for AirAsia Thailand and Medan for AirAsia Indonesia.

Points of Parity

Points of Difference

Points of parity are elements that are considered mandatory for a brand to be considered a legitimate competitor in its designated category, and are what makes consumers consider a brand alongside its competitors.

By hailing itself as a budget long-haul airline, Scoot ensures that its prices are on par with those of its competitors, such as Jetstar and AirAsia. This is especially significant since affordability of tickets is the central focal point unique to low-cost no-frills carriers. A basic marketing strategy must therefore not stray away from the low-price feature of their offerings.

While it is important to keep prices in check, being considerably new to the established segment of the industry, with well-established brands controlling majority of the market share, Scoot cannot rely solely on price strategies alone to attain a competitive advantage.

By working on points of differentiation, namely in terms of products, services, channels, stakeholders and brand image, Scoot ensures that it is capable of providing superior value on top of being unique. Products and services are marketed differently by Scoot, being the first budget carrier to use the Boeing 777-200 instead of the more common Airbus A330. In addition, the carrier interior includes premium designer economy seats which aim to provide optimal comfort for passengers.

However, compared to the low prices and wide ranging destinations offered by competitors, the above points of differences may be relatively inadequate to contrast the service Scoot provides. That could be one of the reasons why Scoot chooses to channel most of its effort towards building a unique brand image and personality. With a contentious slogan that goes “Get outta here!”, Scoot seeks to promote itself as a daring and yet vibrant brand, negating the deeply seated stereotypes of budget carriers being dull, nasty and plain boring.

Perceptual Map

Back

With low-fare and no frills being the common denomination amongst Scoot, Jetstar and AirAsia, the differentiating factor lies in the emphasis of the experience and its communication strategies.

Destination vs Flight

While Jetstar and AirAsia play a strong emphasis on having a pleasant journey as travellers board the plane, Scoot differentiates itself by focusing on getting you to your destination fast. Through their digital marketing collaterals, Scoot chooses to focus on the different destinations it takes you to while AirAsia and Jetstar attempts to sell forth the comfortable experience you get from their flights.

Functional Individual vs Emotional Community

Instead of trying to compete in the same space as AirAsia and Jetstar focusing on the benefits individual could reap, Scoot chooses to engage its travellers by creating a community spirit towards traveling. This can be seen from their digital marketing efforts as they focuses on getting individuals to come together to unlock new promotions.

Yes, SIA

Medium to long-haul flights

Yes

No

Yes

Yes, Qantas

Medium to long-haul flights

Yes

No

Yes

Scoot has the most frugal business class seats and most spacious economy class seats

Yes, AirAsia X

Medium to long-haul flights

Yes

No

Yes

No

Yes

General

Product offerings subject to a fee

Communication differences

Seat selection

Priority boarding

Basic baggage

Oversized baggage

Food & beverage

In-flight entertainment

Yes

Support of parent company

Flights

Fleet seat arrangement

Low cost

Single aircraft fleet

Exclusive routes

Minimal complexity

(Connecting flights or association with parent company)

Dependent on ancillary income

Yes

No

No charge

Yes

Strong emphasis on portraying its attitude and in keeping costs low.

Communications

Functional, clear focus on being a low cost carrier.

Lacks real connection with consumers.

Has a strong emphasis on providing a premium or business class experience.