Jetstar marketing report

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§  2015: Solar Plane about to embark on the world's first ever attempt at an around the world flight powered only by solar

Problem: § When we look at future technologies, how do we align them to real world applications?

§ When do we push “play” on emerging communication channels?

§ For incumbent providers, how do we advise on technological change, even when that change looks set to put an existing entity out of business?

The following is a case study only – we looked at how to advise an airline on how to utilize cryptocurrencies, new social channels (Snapchat) and how to address advances in solar to future proof brands moving deep into the 21st Century.

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JETSTAR Building Blocks for Future Strategy

§  Image: Fish eyed lensed view of the Boeing 787 Cockpit

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“A strong, sustainable future.” Qantas, Group Objec2ve, Annual Report, 2015

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Internet Marketing Strategy

The following Internet Marke2ng Strategy adds emerging

technology and social media channels to the group’s current

strategy in order to generate approximately $6 million in fares

over an 18 month engagement period.

This analysis has been intended as a case study only. The

objec2ve was to align a well-known business model to

emerging technology, social innova2on and find objec2ve

goals and values to align with in the future.

Its not for real real – its for play play.

§  World's earliest surviving camera photograph, 1826 or 1827: View from the Window at Le Gras.

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EXECUTIVE SUMMARY Three incidents in 2016 prompted the recommended strategy:

F I N T E C H Fintech became recognized by a no2ceable number of credible sources as a likely disruptor to

the banking and financial sectors globally (Hancock & Vaizey, 2015), (Coindesk,

2016).

S N A P C H AT Snapchat daily video check-ins exceeded those of Facebook (Frier, 2016) and the top 4

messaging apps usage exceeded those of the top four social sites (McKi\erick, 2016).

S O L A R F L I G H T The world’s first zero-fuel plane

completed two thirds of an around the world flight (Solar

Impulse Updates, 2016).

6 Amplifying this; mobile device use continued to rise after eclipsing desktop use in 2014, with desktop usage indicating a progressive dip in usage since 2014 (Chaffey, 2016).

LinkedIn released a global employment advertising platform (iTunes Store LinkedIn Jobs, 2016).

§  An image of one of the earliest computer keyboards made: Uniscope 300 from 1964

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That Jetstar adds the provision of digital

currency payments in their exis2ng app and

allow for exis2ng digital wallets to

allocate payments for flights to Jetstar as a

payee.

1 2 3

That Jetstar u2lizes Snapchat and LinkedIn as an addi2on to their social media strategy.

That Jetstar adds research and

development of solar powered flights to their community

outreach campaign and ac2vely broadcast

this.

The following is recommended (The Recommended Strategy):

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Breakdown of costs can be found in Tables 1, 3 and 4. Table 2 provides Phases and Deliverables.

OVERALL OBJECTIVE The overall objec2ve is to expose the company to new markets in order to accommodate the requirements of the companies’ commitments, strategy, values, and mission statement. The cost to undertake this will be approximately 1.3 million NZD ne\. These recommenda2ons should be seen as addi2onal reinforcement to successful strategies already in place, and to ensure the ability of the group to maintain profit and reduce the impact from losses in the past.

Please see Appendix B (Problem), Appendix C (Recommended), Appendix D (Summary of Recommenda2ons) and Appendix E (Costs).

§  A replica of Sputnik 1 at the U.S. National Air and Space Museum. Despite Russia’s valuable contribution to the space race the Americans still claimed the win, and gained the Internet in the process

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CONTENTS 1.Cover – Problem Statement

2.Cover - Jetstar

3.Strategy Parent Group

4.Context

5 - 7.Execu22ve Summary

8.Overall Objec2ve

9. Contents

10. Company Descrip2on

11. Strategic Focus and Plan

12. Mission

13. Goals

14. Core Competencies and

Compe22ve Advantage

15. Situa2onal Analysis, Industry

Analysis, 3 C’s

16 – 17. Market Product Focus

Market Objec2ves

18. Target Market

19. Acquisi2on and Reten2on

20. Differen2a2on

21 - 22. Posi2oning

23 - 24. Marke2ng Program

25. Implementa2on Plan

26. Recommenda2ons

27. Evalua2on

28. References

29.Table 1 to

37. Table 9.

38 – 41. Glossary A

42. Glossary B

51. Situa2onal Analysis

64. Glossary J

80. Authors Alerthought

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S A F E T Y E F F I C I E N C Y C A N D O

COMPANY DESCRIPTION Jetstar, a member of The Qantas Group is commi\ed to safety, environmental sustainability, and proac2vely managing risk. They

maintain the responsibility to con2nually reduce their environmental footprint. The group’s beliefs include maintaining agility and

harves2ng innova2on. Jetstar’s values include safety, efficiency and a consistently ‘can do’ aotude (Qantas Group, 2015). Further

details are provided in Appendix F.

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Strategic Focus and Plan

R E V I E W E X I S T I N G O P T I M I Z I N G I N N O V A T I N G I N T E R N E T S T R A T E G I C P L A N

2013 appointed CIO Grianne Kearns established that the strategic focus from an Informa2on Systems (IS) perspec2ve would be to review exis2ng IS “with

a view to op2mizing and innova2ng around our service delivery” (Merre\, 2015). The strategic focus of this report is intended to align with this view.

To this end, it seeks growth by offering addi2onal u2lity through ease of payment, u2lizing Snapchat communica2on channels, establishing a narra2ve

framed by the LinkedIn plarorm, and by deliberately exposing the company to the social responsibility and disrup2on posed by advances in solar energy.

Further details are provided in Appendix G.

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MISSION Jetstar is “part of the Qantas Group’s dual brand growth strategy, in which Qantas competes at the premium and business market and Jetstar focuses on leisure markets.” Jetstar’s mission is to “offer low fares to enable more people to fly to more places, more olen” (Qantas Group, 2015).

“The recommended strategy aims to align with and accentuate Jetstar’s exis8ng mission by enabling more people to fly to more places more o<en by u8lizing cryptocurrencies and digital wallets at point of sale. It enables more people to fly to more places by maintaining contact with exis8ng markets, and establishing rela8onships with new markets, by u8lizing Snapchat and LinkedIn as channels for exposure to des8na8ons and to support the message of increased ease of payment. It aims to offer low fares in the future by suppor8ng new technology to enable solar flights, and u8lizes this support to connect with more people more o<en”.

S u g g e s t e d Q u a l i t a t i v e V i s i o n S t a t e m e n t f o r t h e R e c o m m e n d e d S t r a t e g y

§  Image: Concept illustration of passenger modules for increased numbers of passengers on international flights. “Within this enclosed environment the passenger is able to control their own personal space without disturbing other passengers or, for that matter, being disturbed by other passengers. Strategically placed lighting is used to set the mood, while an over-head projector provides the entertainment, and ergonomically designed lay-flat seat provides the comfort.”

13 GOALS Goals of Jetstar The following is assumed and has been extracted from Qantas Groups KPI’s.

Deliver on 2me performance consistency.

PERFORMANCE CONSISTENCY

Raise market awareness of group’s commitment to social responsibility and decrease carbon footprint (Qantas Group, 2015).

MARKET AWARENESS SOCIAL RESPONSIBILITY

Increase sales and/while maintaining an op2mal capital structure.

INCREASE SALES

Increase percep2on of commitment and adherence to safety.

COMMITMENT TO SAFETY

§  Image: History of travel and trade: Sadly much of the success of trade is due to its roots in slavery. Slavery was a practise of victors, the conquering armies or nation states tended to utilize human resources in any way they could, often in trade. Modern trade owes allegiance to something less sinister however, and a rather unlikely combination. Salt, and North American codfish enabled travel and the extended life of many goods. Pictured here is Himalayan Rock Salt, renowned for its high salinity and often traded out of Pakistan.

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Core Competencies and Sustainable Competitive Advantage Jetstar operate as a tool of The Qantas Group to capture and appeal to a lower end travel segment, with Qantas seeking to capture a premium segment. The airlines work with each other to capture a broad segment of the market, while compe22ve in some areas of crossover. An overall profit reported by the group for Y/E 2015 strengthened public percep2on and provided shareholders with a 25.4 cent statutory earn on each shareholding (Qantas Group, 2015). Further informa2on is provided in Appendix H.

§  Image: History of Flight: First flight of the Wright Flyer I, December 17, 1903, Orville piloting, Wilbur running at wingtip. Near Kitty Hawk, North Carolina, Orville and Wilbur Wright make the first successful flight in history of a self-propelled, heavier-than-air aircraft. Orville piloted the gasoline-powered, propeller-driven biplane, which stayed aloft for 12 seconds and covered 120 feet.

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Situa8onal Analysis:

SWOT and PEST may be found in Appendix I.

Industry:

Airlines compete in a commodi2zed market (Peterson, 2010). In such markets compe2tors match what each other is doing, unable to

afford the slightest advantage to compe2tors. A shared compe22ve a\ribute considered in travel industries is route. While it is

possible to match all of Jetstar’s compe2tors by route or des2na2on it would prove fruitless to do so; the company would engage in

extensive market analysis in the process of determining growth strategies.

As the recommended strategy is one which builds upon exis2ng strategy it is more worthwhile to segment compe2tors on the

a\ributes of the recommended strategy. Analysis of such can be found in Table 7 (Industry Analysis) and Appendix O (Channel

Migra2on Matrix).

Compe8tor, Company and Customer:

Analysis has been provided in respect to the recommended strategy across mul2ple Tables and Appendices provided. Please see

Table 6 (Current State) and Appendix M, Appendix O (Channel Migra2on Matrix), Appendix P and in specific detail to the

recommended strategy in Appendix Q (Marke2ng Programme).

SITUATIONAL, INDUSTRY, THREE C’s

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Jetstar's target market is the leisure segment. This comprises of individuals focused on recrea2on, entertainment, sports, and

tourism. 87% of their market is made up of this segment, 38% of which earn between 50 and 100k NZD per annum. 56% of their

market is female (Jetstar, 2016).

The vast majority of the leisure segment is made up of Millennials and GenXers (Exponen2al Adver2sing Intelligence, 2014).

Further analysis of Qantas segmenta2on can be found in Appendix J.

MARKET PRODUCT FOCUS

MARKETING OBJECTIVES The overall marke2ng objec2ve is to build on exis2ng applica2ons and communica2on channels u2lized by Jetstar, assess if the

impact has been successful, and to establish informa2on from data gathered that can be used to inform strategy for Jetstar and The

Qantas Group moving forward.

Detailed analysis follows for each aspect of the recommended strategy, KPI’s are listed in Table 8 (Engagements KPIs), Appendix J,

Appendix K and Appendix L.

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The ini2al objec2ve is to build upon current

success in the group's commitment to

customer service, and to align new

development penetra2on with the group’s

benchmark digital service and culture

s t r a teg ies a round ins i gh t , d i g i t a l

transforma2on and a focus on mobile. This

recommenda2on is also intended to

int roduce the group to emerg ing

opportuni2es in the digital cryptocurrency

market, and align a value proposi2on of

convenience to Asian users of Alipay Digital

Wallet, Google Wallet and Na2onal

Australia Bank’s offering.

U2lizing Snapchat will add another

channel of communica2on to achieve

reach and acquisi2on into emerging

markets (Sta2sta, 2016). LinkedIn can be

used to enable Jetstar to stay in the

evoked set of millennials and GenXers

(LinkedIn, 2015). Engagement churn can

be monitored by analysing opens and

views, direct user engagement can be

recorded by direc2ng an ongoing

campaign to Snapchat users for addi2on

to the Jetstar Story contacts sec2on.

The group has commi\ed to eco-

efficiency and supports various causes in

its community outreach strategy (Jetstar,

2016). Qantas was one of the first

airlines in the world to introduce a

carbon offset program voluntarily. The

annual contribu2on to this fund by the

group averages $1.2 million (Qantas

Group, 2015).

RECOMMENDED STRATEGY 1 : A c c e p t i n g d i g i t a l c u r r e n c i e s a s a f o r m o f p a y m e n t , a d d i n g J e t s t a r a s a p a y e e t o e x i s t i n g d i g i t a l w a l l e t s

2: Utilize Snapchat and LinkedIn as an addition to Jetstar’s social media strategy

3 : A d d i t i o n o f r e s e a r c h a n d d e v e l o p m e n t o f s o l a r p o w e r e d f l i g h t s t o t h e i r c o m m u n i t y o u t r e a c h s p o n s o r s h i p s t r a t e g y

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TARGET MARKET The recommended strategy has been designed to capture four market segments spanning 14 years from 2016 to 2030. These

markets have been defined as Millennials, Snapchat users and Interna2onal Tourists. Market evolu2on has been indicated in

specula2on.

Appendix M illustrates these markets and which aspects of the internet marke2ng strategy is designed to drive engagement

into future phases.

M I L L E N I A L S I N T E R N AT I O N A L T O U R I S T S S N A P C H AT U S E R S

§  Image: The history of trade. Shipping containers represent current day building blocks of international trade. International trade has been the biggest driver of world peace to date. The continual elimination of borders by advances in technology may accelerate a more peaceful future.

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Acquisition and Retention The process of acquisi2on has been designed to integrate within the groups exis2ng

internet marke2ng channels, reten2on is designed to be achieved through use of

LinkedIn.

Appendix O explores analysis and illustrates pragma2c integra2on in a Channel Migra2on matrix.

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The recommended digital wallet strategy does not place the

group first in adop2ng this technology (Noonan, 2013), however,

it allows for early adop2on ahead of the adop2on and hype

curve (Gartner, 2015). Adop2on of cryptocurrencies as a direct

means of payment, and adding Jetstar as a direct payee on other

digital wallet plarorms would differen2ate the company against

immediate compe22on in the Oceania and Asia Pacific arenas

(Table 7, Industry Analysis).

Jetstar compe2tor Air New Zealand is already u2lizing Snapchat

(Drescher, 2015). A brief look at the LinkedIn App indicates that

almost all commercial airline carriers have a presence on LinkedIn

in posi2ons adver2sed and company profiles. The opportunity

for differen2a2on on social plarorms exists in the narra2ve of

Jetstar’s journey into cryptocurrencies and digital wallets on

LinkedIn, and by carefully craling a marke2ng strategy that

u2lizes the subtle nuances of the Snapchat plarorm to engage in

depth. Explana2on of such is covered in Table 7 (Industry

Analysis), Appendix P (Posi2oning) and Appendix Q (Marke2ng

Programme).

DIFFERENTIATION

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DIFFERENTIATION

The defining differen2ator is in covering solar flight. The technology is not new, but the opportunity to support solar flight and development is. Support of the technology would differen2ate the company from compe2tors, it is hoped that ac2vely establishing rela2onships into this technology may enable Jetstar to provide the first solar passenger flight.

§  Image: Solar Innovation. The ABS 3A satellite (top) and the Eutelsat 115 West B satellite (bottom) are stacked inside Boeing’s factory in El Segundo, California. The company is moving towards technology to create and enable solar satellites. Credit: Boeing

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The recommended internet market

strategy promotes more people to fly to

more places more often through

communication and convenience. This

is illustrated in Table 6 as a Maturity

Model, and in Appendix P (Positioning).

POSITIONING

§  Trade Innovation Brexit in time: “Bitcoin has been trading like one of its oldest antecedents as investors speculate on the odds of Britain voting to leave the European Union in Thursday’s referendum. The digital currency slid to an almost three-week low on Thursday, while gold retreated for a fourth day, after bookmakers’ odds on Wednesday favoured a win for “Remain." If the vote goes the other way, traders expect a slump in risky securities such as stocks.” Source: Bloomberg

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The strategy provides an assessment period with the ability to

build on success if sa2sfactory KPIs are met. Mul2ple

dimensions have been described as a means to move from

current state to a desired “to be” state. The proposed strategy

requires significant resource alloca2on, involves mul2ple layers

of risk, and will require careful planning. Therefore, an extensive

roadmap is recommended in order to install checkpoints and is

listed in Appendix Q (Product).

The main driver in support of Jetstar’s price strategy is to reduce

fric2on between point of decision and place of purchase by

allowing more op2ons for payment, and ease of doing so, via

APIs within the Jetstar App, and crea2ng Jetstar as a payee in

exis2ng digital wallets such as Alipay, Google Wallet and Apple

Pay. The second driver is to deliver this message through new

social media channels, con2nue the conversa2on with exis2ng

markets, while developing a rela2onship with emerging markets.

It is hoped that the support of solar technology will amplify the

main and secondary drivers of the recommended strategy. See

Appendix Q (Price).

MARKETING PROGRAM

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Advances in technology, combined with a consumer shil in

focus to smart and mobile devices, have created opportuni2es

for businesses and marketers to understand and interact with

markets at points of the customer decision journey and demand

spaces. Furthermore, the speed at which complex messages can

be broadcast is enabling a cadence similar to that of a face to

face interac2on (Johnston, 2015). The recommended strategy

focuses on mobile in alignment with consumer growth in this

area and is expanded upon in Appendix Q (Place and Promo2on

Strategy).

The group’s promo2on strategy supports resilience to external

vola2lity by serving the widest range of customers and enabling

opportuni2es for growth. They achieve this through a

disciplined financial framework, tailoring services based on

customers’ needs and uni2ng people behind shared goals for the

future (Qantas Group, 2015).

The recommended internet marke2ng plan will support the

promo2on strategy by increasing customer payment viability

through advances in fin-tech, exposing the brand to more

customers by increasing the use of social media channels, and by

uni2ng people behind shared goals through support of solar.

This is explored across channels in Appendix Q (Place and

Promo2on Strategy).

MARKETING PROGRAM

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IMPLEMENTATION PLAN The proposed implementa2on plan is carried out over 18 months with addi2onal 2me to se\le on details prior to a green light status, and an assessment period following to discuss findings and next steps. Flag points have been provided for assessment and repor2ng throughout the implementa2on. An ini2al Maturity Model has been provided, please see Table 6.

Total development has been priced at $500,000 and staffing (including Professional Services) at $826,000 Total development costs are 1.326 million NZD and are net/ne\. Costs have been considered for calcula2on against EBIT, the group’s preferred repor2ng format. Usual Airline units of produc2on such as ASK/ASM (Available Seat Kilometres/Miles) and CASM/CASK (cents to operate ASK and ASM respec2vely) have been avoided for simplicity. Detailed breakdowns may be found in Tables 1, 2, 3, 4 and 5, and Appendix R.

F i n a n c i a l D a t a a n d P r o j e c t i o n s : B U D G E T

§  Image: Innovation in Flight, The future of Airbus. While energy costs may be falling as a result of the drop in the oil price, Airbus has also come up with a way to use the seating to help power the plane. By 2050, it envisages the introduction of morphing seats which can harvest passenger’s body heat to power aircraft systems.

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These recommenda2ons are gateways however. The aim is that through this process Jetstar is exposed to iden2fy changes in the marketplace that threaten their core strategy and mission. It is recommended that “offer low fares” be addressed. It is recommended that Jetstar diversify into electric driverless cars, and pilotless flying drones, and begin to offer these services in areas that have weather condi2ons that suit either op2on. Strategies, goals and mission statements have to change over 2me, it is recommended that in light of technology Jetstar change their mission to “create affordable and sustainable op2ons to enable more people to connect, in more places, more olen.”

RECOMENDATIONS

The recommenda2on is that Fintech is explored across 2 APIs, to adapt one to the

Jetstar App and website, and another wrapped API that can be adapted to exis2ng digital

wallets such as Google Wallet and Alipay. That a campaign covering Snapchat and

LinkedIn is ins2gated, and finally, that Jetstar begins a campaign illustra2ng coverage and

support of green and solar energy technological developments, with a par2cular

emphasis on solar flight.

F u r t h e r t h o u g h t s a r e l i s t e d i n A p p e n d i x T.

I t i s r e c o m m e n d e d t h a t t h i s p r o j e c t i s c a r r i e d o u t a s s o o n a s p o s s i b l e .

§  The first photo from space was taken from a V-2 launched by US scientists on 24 October 1946.

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Recommended strategy u2lizes the following evalua2ve control

mechanisms:

K P I

1.Overall KPI approx. $6.6 million in fares generated over 18 months (Table 5).

M AT U R I T Y

2.Maturity Assessment. This includes Marketplace Assessment and Customer Insights. Qualita2ve and quan2ta2ve metrics have been provided (Table 6).

E N G A G E M E N T 3.Engagement KPIs covering User Engagement, Conversions in Revenue, Content and Click Through, App Performance and new sec2ons based on Snapchat and LinkedIn (Table 8).

S E A R C H 4. Automated Search KPIs related to Search Engine assessment are also provided (Table 9).

Details are provided in Appendix S.

Dunedin, first refrigerated clipper ship to complete a successful shipment of refrigerated meat

In 1935, Jones designed the first prac8cal and automa8c refrigera8on unit for trucks and railcars, allowing the transport of food and other perishables.

Harves8ng Ice in Indiana Preceding refrigera8on: The ice trade, also known as the frozen water trade, was a 19th-century industry, centering on the east coast of the United States and Norway

SALT-PYRAMIDS-BONAIRE The solar salt facility, one of the largest in the Caribbean, is today owned by Cargill, the Minneapolis, Minnesota based private company.

The Soninke empire of Ghana, named the "Land of Gold" by Islamic scholars, is linked with the rise of the trans-Saharan gold trade that began around the fi<h century.

Aquaculture and Salt Produc8on Bohai Bay. Seen from space 1979. In earliest 8mes, coastal and island salterns used earthen and then iron boiling pans to reduce sea water to salt.

Piles of Salt. Salar de Uyuni Bolivia Luca Galuzzi. 2006

Ancient method of boiling brine into pure salt in China

The North American Cod was the protein source that sustained trading prior to refrigera8on and diesel fuelled shipping. The species dwelled at depth in cold water; the large size, easy fishing and highly fady flesh made it a perfect protein source for sal8ng, the only means to keep protein free of rot on long sailing expedi8ons across the Atlan8c.

Evaluation and Control

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R E F E R E N C E S

Chaffey, D. (2016, April 27th). Mobile Marke2ng Sta2s2cs compila2on. Retrieved from SmartInsights.com: h\p://www.smar2nsights.com/mobile-marke2ng/mobile-marke2ng-analy2cs/mobile-marke2ng-sta2s2cs/ Coindesk. (2016). Blockchain Events and Conferences. Retrieved from Coindesk: h\p://www.coindesk.com/bitcoin-events/ Drescher, C. (2015, November 7). Get an Inside Look at Airlines on Snapchat. Retrieved from cntraveller.com: h\p://www.cntraveler.com/stories/2015-11-06/get-an-inside-look-at-airlines-on-snapchat Exponen2al Adver2sing Intelligence. (2014). Understanding the Millennial Mindset: A New Perspec2ve on Engaging with Gen Y . Exponen2al. Frier, S. (2016). Snapchat User Stories top 10 Billion Daily Video Views. Bloomberg. Gartner. (2015, August 18). Gartner's 2015 Hype Cycle for Emerging Technologies Iden2fies the Compu2ng Innova2ons That Organiza2ons Should Monitor. Retrieved from www.gartner.com: h\p://www.gartner.com/newsroom/id/3114217 Group, J. (2016). Jetstar Group About Us. Retrieved from jetstar.com. Group, Qantas. (2015). Qantas Group Business Prac2ses. Qantas Group. Hancock, M., & Vaizey, E. (2015). Distributed Ledger Technology: Beyond block chain. London: UK Government for Science. iTunes Store LinkedIn Jobs. (2016, May). Retrieved from iTunes. Jetstar. (2016). Jetstar Community Outreach Flying Start. Retrieved from jetstar.com: h\p://www.jetstar.com/au/en/flyingstart Jetstar. (2016, March). Jetstar Media Kit 2015/16. Retrieved from jetstar.com: h\p://www.jetstar.com/_/media/files/media-kits/jetstar-media-kit_nzen_2015_2016_v2.pdf?la=en-nz Johnston, A. (2015). Experian 2015 Digital Marketer Report . Experian. LinkedIn. (2015). Winning Affluent Millennials. LinkedIn and IPSOS. McKi\erick, W. (2016). Messaging apps are now bigger than social networks. Business Intelligence. Merre\, R. (2015, March 25). New Jetstar CIO plans IT transforma2on. Retrieved from cio.co.nz: h\p://www.cio.co.nz/ar2cle/541191/new_jetstar_cio_plans_it_transforma2on/ Na2onal Australia Bank. (2016, March). Spend Be\er. Retrieved from nab.com.au: h\p://www.nab.com.au/sites/personal/banking/spend-be\er?cid=129497078:0 Noonan, L. (2013, February). Mastercard unveils its “virtual wallet” with American Airlines already onboard. Retrieved from skil.com: h\ps://skil.com/2013/02/26/mastercard-unveils-virtual-wallet-with-american-airlines-already-signed-on/ Peteson, S. (2010). Airlines 2020: Subs2tu2on and commodi2za2on. Two developments the global airline industry can no longer afford to ignore. IBM Ins2tute for Business Value. Qantas Group . (2014, February). Strategy Update Media Release. Retrieved from ASX.com.au: h\p://www.asx.com.au/asxpdf/20140227/pdf/42n1589jxk6g8j.pdf Qantas Group. (2015). Qantas Annual Review 2015. Retrieved from qantas2015.annualreview: h\p://qantas2015.reportonline.com.au/system/files_force/downloads/qantas_annual_review_2015.pdf?download=2 Solar Impulse Updates. (2016, March). Retrieved from solarimpulse.com: h\p://www.solarimpulse.com Sta2sta. (2016). Distribu2on of Snapchat users in the United States as of February 2016, by age. United States of America.

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TABLE 1 Cost of Development: Apps and Side Chain

CostofDevelopment:AppsandSideChainNumberofHours(est.) CostperHour(NZD)Nett Total

BasicAPIDevelopment 1000 $80 80,000WrappedOpenSourceAPIs 667 $180 120,000SidechainWallet 1,200 $250 300,000

TotalDevelopment: $500,000

Note. WrappedOpenSourceAPIsandSidechainWalletdevelopmentishighlyspecialised.

Source :5ProfessionalConsultingFirms(Accenture,PwC,KPMG,NEC,EY),StatisticsNewZealandandPayscaleNZTable1.CostofDevelopment:AppsandSideChain

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Project Phases

and Deliverables

TABLE 2

ProjectPhasesandDeliverablesProjectPhase KeyTasks/Deliverables CostofPhaseAPI CostofPhaseWrappedAPI CostofPhaseDigitalWallet

ProjectManagement ProjectManagementProjectManagementPlanSecurityImplementationProtocolsChangeManagementPlanImplementationPlanning $10,000.00 $20,000.00 $80,000.00

Plan RequirementsGatheringChainRequirementsGatheringExchangeCurrentStateAPICurrentStateAPIPhPWrapRequirementsgatheringintegrationsCurrentstateintegrationsTrainingPlanningTestingPlanning $30,000.00 $40,000.00 $80,000.00

Design BlockchainIntegrationExchangeBuildIntegrationDesignMigrationDesignConsolidationDesign $7,000.00 $7,000.00 $40,000.00

Build SidechainIntegrationIndexingDirectivesExchangeBuildIntegrationBuildDashboardBuildTestingUnitTestPlatformTestMigrationTestingConsolidationTestingProcessDesign $15,000.00 $20,000.00 $20.00

Deliver UserAcceptanceTestingDeliveryofTrainingFutureProcessDocumentationDataMigrationExecutionConsolidation $13,000.00 $13,000.00 $40,000.00

Operate GoliveplanningGo/nogomeetingGolivedateEvaluationPeriodHypersupportHandover $5,000.00 $20,000.00 $40,000.00

PhaseTotals $80,000.00 $120,000.00 $300,000.00TOTAL $500,000.00

Table2.ProjectPhasesandDeliverables

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TABLE 3 Professional Service Cost Breakdown

ProfessionalServiceCostBreakdownTime/Deliverable Perhourorcapped Fee(NZD)Nett.

Recommendation FinalReport $45,000cappedfee $45,000.00

AssociateDirector 2WeeksF/T $480perhour $36,000.00

ProjectManagerProfessionalServicesFirm 1MonthF/T 60,000cappedincl.expenses $60,000.00

Analyst 6WeeksF/T $200perhour $45,000.00

ProfessionalServicesTotal $186,000.00Note. F/T=37.5hoursperweekSource :5ProfessionalConsultingFirms(Accenture,PwC,KPMG,NEC,EY),StatisticsNewZealandandPayscaleNZTable3.ProfessionalServiceCostBreakdown

32

Staffing Total including

Professional Services

TABLE 4 StaffingTotalincludingProfessionalServicesTimePeriod Position,NumberRequired,Salary Totals

20Months Managerx2 $240,000.00$80kperannumPP,18monthcontract

18Months ContentGenerator(FrontlineReporter)x2 $150,000.00$50kperannumPP,18monthcontract

18Months LocationContentGenerator(HeadOffice)x2 $150,000.00

Expenses $100,000.00

StaffingInternalPayrollandexp. $640,000.00

Contractors:ProfessionalServices $186,000.00

TotalStaffing: $826,000.00Table4.StaffingTotalincludingProfessionalServices

33

Overall KPI

TABLE 5 OverallKPI

CurrentFlightAverage $35

CurrentCostEstimate $1,326,000

FlightsneededtoreachOPC 189,428

ToachieveOPC(x5) $6,630,000

Table5.OverallKPI

34

Project Phases and

Deliverables TABLE 6

ImplementationMaturityModel

ImplementationScheduleMaturity

ModelDevelop Practise:Phase1 Integration:Phase2 Performance:Phase3 Optimization:Phase4 Assessment:Phase5

KeyAccountable ProfessionalServices ProjectManager ProjectManager ProjectManager,Managers,JetstarManager

ProjectManager,Managers,JetstarManager,JetstarApplicableC-Level

JetstarManagement,JetstarC-Level,ProfessionalServicesFirm

MaturityCurrentStateJetstar/QantasGroup 4MonthCheckpoint 8MonthCheckpoint 12MonthCheckpoint 18MonthCheckpoint 19MonthCheckpoint

MarketplaceAssessment

1.Nocurrentdigitalwalletuse,opportunitiesexisttoreducepurchasefriction.2.NomemberoftheQantasgrouputil izeSnapchatorLinkedIn.HighemergingmarketuseofSnapchat,millenialmarketmaturing,opportunityexiststoengagewithemergingmarketsandmaintainrelationshipwithmaturingincumbents.3.Alignmentwithsolarpresentsopportunitiesforbrandequitywithinexistingandemergingmarkets,andrichcontentcreationbroadcastacrosschannels.

Abasicassessmentprocesstoestablishbaselineunderstandingofperformanceandcompetitivepositioningafterinitialpenetration.PerformanceagainstKPIsconsidered.Riskassessmnetofdigitalwalletsperformed.Briefassessmentofanyadversefeedbackfrommarketassessed.Briefmarketscanoffeelingstowardssolarfl ightperformedandassessed.

Morefocusedapproachfordefiningparametersandobjectivesforassessment.Assessmentincludesananalysisofcompetiterreactions,customerfeedback,digitalengagement,relativepositioningofJetstaronnewsocialchannels,digitalwalletperformanceandmarketingchanneldynamics(positive/negative/%ofKPI).

StructuredassessmentthatresultsinagoodunderstandingofperformanceagainstKPIstodate.Seniormanagementisengagedforfeedback.

Astandardprocessforidentifyingandprioritizingcustomervaluedriversisundertaken.Companyhasaclearunderstandingofprofitdrivers,newgrowthopportunities,shiftsincustomerpreferences,competitorresponse,andwhatdesirednextstepsarel ikelytobe.ProvidesdynamicviewoftheInternetMarketingStrategyutil izingdataforassessmentagainstKPIs.

Structuredassessmentpresentedtoinformfurtherstrategicdevelopments.Requiredadjustmentsdiscussed.Channelsimplificationmaturityassessmenthighlyrecommendedinconjunctionwithindicatorsofsocialmediachannelfutureengagementmetrics.GreenorRedlightsestablished.Nextsteps:enterplanningforphase2,mitigationofcurrentstrategyand/orredlightclosureonproject.

CustomerInsight Thisphaseassumesthefollowingasabaseline.Maturityassessmentdrawsfromthefollowingassumptions:1.Companyisawareofneedtoconductmarketresearch.2.Maynotknowwheredataisorhowbesttoobtainit.3.Segmentationattributesfocusondemographicsandtransactiondataratherthanbehavioral.4.Organizationcandescribecustomersbysimple/outdatedornonusefulmetricssuchassales,profitabilityandCLV.5.Datasiloed,lacksenterprisewidevisibil ity.6.Nottrackingdynamicchangesinneedandpreferenceovertime.7.Datacollectionuncoordinated.8.Limitedornofrontl inefeedback.9.Typicallylargeamountsofdata,lowamountsofanalytics.10.Limitedframeforactionableinsight,l ittletonounderstandingofdriversofdeepmarketimpactnorreasonswhy.

Jetstarstartstoobtain,manageandturncustomertransactiondataintoactionableinsightsthroughfinancialtransactionsandsocialinteractionsvianewsocialchannels.Jetstarmaintaininventoryofdatarepresentingprofileattributesspecified.Datamaystil l besiloed.Organizationstartstodevelopstandardinsightprocessesandbasicassessmentacrossreleventanalytics.

Jetstartocreateenterprise-wideintegratedviewofcustomersenrichedwiththirdpartyexternaldatagathered.Basedoncomprehensivenessofthecustomerprofileincludingbothdemographicandbehavioralcontents,companycanreprioritizesegments.Jetstarareenabledtodesignofferings/programsleveragingbehaviorpatterns.Largergroupalerted,progressreported.Standardinsightgenerationprocessimplementationthroughagilebordersandchannelstrategysolutionsmaybediscussed.

Companyunderstandscriticalelementsofcustomerexperienceandtrackoperationalmetricsforeach.Systematicallytriggeroffering/programs/solutionsinresponsetoshiftingdynamicsatPOS.Monitoringofsegments'changingneedsandpreferenceovertime,companymayexecuteorganisationalspecificinnovationtoheightencustomerengagement.

Amoreholisticunderstandingofcustomers’needs,relativepriorityofneeds,baselineunderstandingofshiftingfocus,deviceuse,platformandpaymentpreferences,customerdecisionjourneyanddemandspacesareabletobeanalysed,assessedanddiscussed.Actionableinsighthasbeengeneratedorganisationwide.Processesarerunconcurrentlybothcentrallyandviaagilebordernetworks.Channelestablishmentenablesdecisionmakersdirectandunfilteredinformationwithwhichtomonitorshiftsincustomerengagementpatterns.Strategicdirectionmaybeassessedinl ightofinsightandanalyticsthatisricherindepthandbreadth.

AnanalysisofperformanceagainstKPIs,inconjunctionwithempoweredmarketanalysiswill enabledecisionmakerstoascertaintherealtivestrengthsandweaknessesoftheinternetmarketstrategy.Acomprehensivedisectionofcost,impactandROIwill informnextsteps.Atthe19monthjunctionasimplificationassessmentishighlyrecomended.Thisisinordertoassesstheeffectofaddedcomplexitythattheadditionofmultiplepaymentchannelshasexertedonthecompaniessupplychainandifthishashadadesirableimpactoncustomerinvestment.

Table6.ImplementationMaturityModel

35

TABLE 7 Industry Analysis

IndustryAnalysis

ClosestpriceCompetitorSegmentationonattributesofrecommendedstrategy

Competitor CryptoCurrencyPayments InclusiononexistingDigiWallets

Snapchat LinkedIn SupportsSolarFlight

TigerAirways No No No Yes No

JetBlue JetBluepartnerwithSkytoursandBPay,whoofferBitcoinpayments

Yes(throughSkytoursandBpay)

No Yes No

Virgin No No No Yes No

Westjet No No No Yes No

Qantas No No No Yes No

AirNewZealand No No Yes Yes No

Table7.IndustryAnalysis

36 TABLE 8 Engagement KPI’s

EngagementKPIs

JetstarDigitalPaymentAppAPIDigitalWalletAPIexistingWalletProvidorBothAndroidandiOSAppDevelopment

CurrentEngagement Achievedover18MonthsAcquisitionLocation,Carrier (ie,Auckland,Vodafone) (RecordCurrent) (List)AcquisitionDevice (ie,Mobile,Tablet,Desktop,Console)

UserEngagement AssessCurrent Recordover18monthsSessionLengthDailyActiveUsersVisitFrequencyNumberofclicks:assessforconfusionSocialShares"Help"SectionUsuageHappinessSurveyResultMentions

Conversions(Revenue)FlightsRewardsSchemeDigitalCurrencyUse

Conversions(content)SocialSocialShares

Conversions(clickthrough)Web(destination)App(destination)Wallet(destination)Snapchat(destination)LinkedIn(destination

PerformanceAverageAppLoadTime Consistent EqualorFaster

Snapchat(sendandreceive) Snaps 0(demographics) Stories 0

StoryCompetitionEntries 0StoryWinClicks 0SponsorGif 0SponsorLink 0

LinkedInArticle 0Share 0Comment 0Like 0Mention 0PostReach 0LocationReach 0

Note .Unlessstatedanincreaseof0.5%wouldindicateexceptionalperformancefromcurrent

Table8.EngagementKPI's

37 TABLE 9 Automated Search KPI’s

AutomatedSearchKPI's

AutomatedSearch Ind.Standard DesiredFrequency

UserAgent MJ12bot 60% 20%SearchEngine GooglebotDesk 20% 20%

GooglebotMobile 4% 30%BingbotDesk 3% 1%BingbotMobile 1% 1%SimplePie 1% 1%Yahoo!Slurp 1% 1%BingbotNonPreview 0.50% 0.50%GooglebotMobileSAMSUNG 0.50% 0.50%GooglebotMobileDoCoMo 0.50% 0.50%BingbotMobile.htm 0.50% 0.50%AdsbotGoogleMobile 0.50% 0.50%

Other SocialMedia,research,SEO,Security 4% 20%

Table9.AutomatedSearchKPI's

38

Fintec: The term means “Financial Technology” describes an array of technologies that encompass poten2al disrup2on to the financial, banking and insurance industries. This includes digital currencies, virtual currencies, crypto currencies, digital wallets, P2P, Blockchain and Sidechain.

Blockchain/Block-chain/The Blockchain/Bitcoin (BC) Blockchain/Block chain: ‘Code’ that enables a public (permission less) ledger of Bitcoin, an open source, distributed network that exists through the con2nual investment of “miners”. Miners are individual computers (CPU’s) that operate in a con2nual race to unlock “hash” blocks of the encrypted Blockchain. In order for the ledger to record current transac2ons correctly, this process is required to check back against prior transac2ons of bitcoin. Miners may be individuals, companies, organised networks or Governments These ledgers may be private, permission (par2ally permissioned). As ledgers they have a poten2al array of applica2ons.

Sidechain: A Sidechain is a smaller blockchain (some2mes simply referred to as ‘chain’) that operates off The Blockchain (BC Blockchain) enabling faster real 2me transac2ons due to their smaller size (they require less CPU power) than The Blockchain. While not required for this report, but to avoid confusion, a sidechain can also refer to a blockchain that has been created independently, but is not a\ached to The Blockchain (BC Blockchain). Terminology in regards to this technology can be fragmented, this may be due to maturity.

APPENDIX A Glossary

39

Bitcoin: Bitcoin is a crypto currency: loca2on dependent it may be referred to as ‘digital money’ or a ‘virtual’ currency. For this report it can be thought of as a digital denominator of value exchange. It is the first crypto currency to be publically listed, but not regarded as mainstream. Use, acceptance and defini2on vary: in some countries it has been banned (recently Russia) and in other countries it has been defined as ‘property’ (for example, The United States of America). In Australia it is considered a compe2ng currency. Part of Bitcoins value is in its ability to act as a portal between digital/crypto currencies and fiat (listed by governments and/or banks) currencies.

API’s: Applica2on Program Interface. Tools, rou2ne defini2ons or programmes for building solware and applica2ons. For the sake of

this report, this term can be considered as the interface that links two opera2ng solware en22es in order to facilitate digital

communica2on.

‘Wrapped’ API’s: For this report consider the term ‘wrapped’ APIs as referring to a par2cularly secured and monitored API due to

the poten2al of open source vulnerabili2es, cost of risk and the value of the transac2onal data the API is interfacing.

APPENDIX A Glossary

40

Plarorm: A framework upon which applica2ons are run. A plarorm can define the way a user interacts with solware. Digital Wallets: The mechanism (hardware and/or solware) that allows electronic commerce. P2P: Peer to peer. P2P can be considered in the same way as B2B (business to business) or B2C (business to consumer). P2P in this report refers to the prac2se of individuals u2lizing means to exchange value outside of regulatory awareness. Crypto Currencies/Cryptocurrency : A subset of digital currencies. A medium of exchange that uses cryptography to regulate genera2on of units, and/or to ensure independence from a central bank, or to control the permission levels of transparency. Fiat Currency: Regulated by supply and demand, issued by a central authority, not exchangeable for a standard (for example, a Fiat Currency is commonly known as the issued form of currency post the Gold Standard).

APPENDIX A Glossary

41

Digital Currencies and Virtual Currencies: It can be argued that in 2016 the vast majority of Fiat Currencies are digital. According to the European Central Bank's October 2012 report on emerging currencies, and as technology and adop2on changes, the line between a virtual currency and a digital currency is in the medium of interchange. If the ‘currency’ can be traded P2P and exchanged in the real world for physical goods and services they tend toward digital currencies; if used only for virtual world purchases in closed loop systems, then they are likely virtual currencies. Customer Decision Journey: Customers ac2vely search for and gather informa2on to inform purchasing decisions. This process is different from the tradi2onal sales funnel model. The funnel model is s2ll in use, but marketers now need to understand the implica2ons of the customer (consumer) decision journey. This process involves four phases; considera2on, ac2ve evalua2on (research), closure (purchase) and post purchase experience. This process is highly evident in desktop use by consumers, where the average user starts with a search engine and migrates through phases before returning back to the search engine. It should be noted that emerging research is indica2ng that smart device usage has changed this process again, as less consumers u2lize search engines on mobile devices, choosing instead to use a funnel model by app selec2on, and usually one that represents a brand they have already formed a rela2onship with. Demand Spaces: All combina2ons of quan2ty demanded and price a\ributes that are acceptable to buyers. With loca2on tracking, and meta-data, marketers are now able to track price, quan2ty demand, expenditure predictors, emo2on, 2me, circadian rhythms, events, triggers and social influence to a greater degree of accuracy.

APPENDIX A Glossary

42

Threats to a Companies Survival Threats, such as the price of avia2on fuel, terrorism, and global currency fluctua2ons, are numerous and constant. Costs to an interna2onal carrier are large, the group posted a loss in 2014. The company competes almost exclusively on price. The company must constantly strive to gain new customers in large numbers to maintain profitability. The company has also developed a reputa2on of never running to 2me. Qantas Group. 2015. Annual Report. Australia: Qantas Group

APPENDIX B Problem

§  Aquila: a small Facebook team had been working on a secret project. Their mission: to design, build, and launch a high-altitude solar-powered plane, in the hopes that one day a fleet of the aircraft would deliver internet access around the world.

43 APPENDIX C Recommended

The addi2on of digital currency payments will put Jetstar ahead of the curve in adop2on of cryptocurrencies and allow the company to offer a value proposi2on to customers by reducing the number of steps taken between selec2on and purchase, and by increasing the number of available mediums of exchange. U2lizing Snapchat affords Jetstar the opportunity to engage with its market in ways unique to this plarorm. Snapchat adop2on is significantly increasing, Jetstar does not currently u2lize Snapchat. A further sugges2on of adding LinkedIn content as a means to engage the maturing millennial market is also explored. Suppor2ng research and development of solar flights aligns Jetstar with its target markets values and promotes the company as one that shares a vested interest in the sustainability of the des2na2ons it travels to. Advocacy of developments in this area, via Snapchat and exis2ng social media plarorms, and content generated around the development digital payment op2ons provide a narra2ve that is rich, interes2ng and engaging.

§  For Facebook, Aquila is more than a proof of concept. It’s a linchpin of the company’s plan to bring the internet to all 7 billion people on Earth, regardless of their income or where they live. Doing so will lift millions of people out of poverty, Zuckerberg says, improving education and health globally along the way. But it will also enable the next generation of Facebook’s services in artificial intelligence, virtual reality, and more. This next era of tech will require higher bandwidth and more reliable connections than we have today, and drones can help deliver both. The road to a VR version of Facebook begins where Aquila leaves the runway.

44

As these recommenda2ons are adventurous in the case of 1, not heavily documented in the case of 2, and emerging in the case of 3, it is recommended that a ‘test and evaluate’ strategy over the course of an 18 month 2me period is u2lized. The tes2ng ground will be limited to certain areas of current opera2on. Evalua2ve criteria will cover a range of key performance indicators and ini2ally set low to accommodate the poten2al lack of market adop2on due to emerging technology. This strategy will also serve to create an evalua2ve period with which to assess the strengths and weaknesses of emerging technology providers. The tes2ng areas are not recommended in this report, but if the KPI of 6.6 million in sales is to be achieved the areas chosen by Jetstar would need to be capable of such growth given recommenda2ons, and not already on a trajectory towards that level of growth with current strategy.

APPENDIX D Summary of Recommendations

§  Artist’s concept of the Eutelsat 115 West B satellite. Boeing has been developing a launch in partnership with Space-X 2016. Credit: Boeing.

45

APPENDIX E Costs Costs of the overall strategy for the evalua2on period are evaluated current to 2016 in NZD. For the strategy to be successful costs would be required to generate 5 2mes income. This metric has been generated from considerable industry experience.

Non-current es8mates of the values of various Crypto Currencies 2015

46

Since launching in Australia in 2004, Jetstar has carried more than 200 million passengers. The group consists of: Jetstar Airways in Australia and New Zealand, Jetstar Asia Airways, based in Singapore, Jetstar Pacific Airlines, based in Vietnam, and Jetstar Japan, a partnership between the Qantas Group, Japan Airlines, Mitsubishi Corpora2on and Century Tokyo Leasing Corpora2on. 18 million people travel with Jetstar every year. 67% of which travel 2 + 2mes a year. The company has received numerous awards including “Best Low-Cost Airline Worldwide” in 2007 awarded by Skytrax. Jetstar. (2016). About Us. NZ: Jetstar The Qantas 2015 annual report posted a $230m (AD) profit for the Jetstar Group for the financial year June 2014 to 2015. However, this was up from a loss of $116m the year before and is posted in EBIT (Earnings before Interest and Tax). Qantas Group. 2015. Annual Report. Australia: Qantas Group

APPENDIX F Company Description

This is something that we don’t even think about today, but cameras used to be huge and bulky, impossible to move by a single person, let alone carried on a shoulder . French and American filmmakers and technicians were working on the first handheld cameras at the same 8me, 60 years a<er their respec8ve countrymen Wright and Lumière invented mo8on pictures.

47

The strategy recommended recognizes that 2014 figures indicate posi2ve growth against prior losses. However no en2ty within the Qantas group can afford to rest in light of such fluctua2ons. The recommended strategy builds upon exis2ng success in providing addi2onal customer focused investment in the group. While the need for efficiency is recognized, a strategy of growth is assumed to be the best op2on to secure income against prior losses and to strengthen the brand moving forward. In 2013 Jetstar appointed Grianne Kearns as CIO for the group. In 2014 Kearns established that the strategic focus from an Informa2on Systems (IS) perspec2ve would be review exis2ng technology in order to make a selec2on of new technology to add “with a view to op2mizing and innova2ng around our service delivery” She established cloud and mobility as two areas of strategic focus in order to increase both customer service and customer experience, and to ensure internal produc2vity. Merre\, R. (2015, March 15). New Jetstar CIO Plans IT Transforma2on. www.cio.co.nz Overall, Qantas has adopted a partnership strategy which has yielded success with both Emirates and American Airlines. Their frequent flyer program aims to increase customer loyalty, Qantas have indicated that they are seeking to expand upon their exis2ng loyalty program through innova2on in order to increase assets and capabili2es. This strategy is in alignment with parent company Qantas aiming to reduce its own costs by $2 billion since pos2ng a $252 million loss for the half-year Feb 2014. Qantas Group. (2015). Strategy Update Media Release. Sydney: Qantas Group The main driver for growth was stated as customer service, this enabled Qantas to post an underlying profit before tax of $975 million for the 2015 financial year. Qantas Group. (2015). 2015 Annual Report. Sydney: Qantas Group.

APPENDIX G Strategic Focus and Plan

Louis Le Prince's single-lens Cine Camera-Projector MkII, the first mo8on-picture camera, built in 1887-1888. Said to be the first ever mo8on picture film camera

48

The recommended internet marke2ng strategy is adventurous: it seeks to provide areas to ac2vely explore innova2on. While

Fintech may eventuate to be a “pure play” (typically 30% of an industry) disruptor, or even a megatrend (10 – 20 year cadence of

slow growth before changing an en2re industry), the sugges2ons around Fintech in this report represent a “sol” (easy addi2ons or

improvements to exis2ng use) innova2on.

Almost all airlines researched for this report support some form of member benefits reward scheme, all of which involve partnership

programmes where reward points can be redeemed at par2cipa2ng or complimentary businesses. Many offer Credit Cards with

member benefits a\ached.

Adop2on of crypto currencies may be seen as a risky penetra2on into unknown territory. Upon cri2cal reflec2on however, they

represent a “sol” transi2on into a form of exchange that adds more value to both Jetstar and their market – they offer more u2lity

benefits than current reward and member benefit schemes. The logic becomes apparent when one looks at this currency in light of

the benefits and restric2ons that currently u2lized reward schemes represent “in market.”

While Bitcoin trades against fiat currencies publically (with Ether and Litecoin entering presently), crypto currencies have the ability

to trade anonymously online. Online exchanges/wallets allow non-publically traded (think: “off exchange” or “over the counter” in

financial trading terms) crypto currencies to buy and exchange Bitcoin. Thinking of Bitcoin in the same way as a fiat currency is

simply the wrong way to assess its u2lity, part of Bitcoins value is its ability to act as a portal between currencies, while u2lizing it

for buying and selling online.

AUTHORS THOUGHTS

49

Necessity is said to be the driver of innova2on, but innova2on is facing a perfect storm from changing millennial aotudes to authority, the

incumbent Prussian Educa2on system, and social norming in the vast majority of workplaces.

Den Heyer, CJ. (2016). internal circula2on report in support of Mid-Market Pain Points: The increasing requirement for recognising the inhibitors

of innova2on in a study of over 35,000 global SME’s; 1970 to 2015. Wellington: Deloi\e Knowledge Management.

The Qantas Group is commi\ed to innova2on however and maintains a compe22ve advantage over a number of routes, stable governance, and

reduc2on in some areas of eco-efficiency and strong rela2onships with cri2cal stakeholders.

Year end June 14/15 the company celebrated record level customer sa2sfac2on and all targets for scheduled programs were achieved.

The difficult task of consistent growth out of the 13/14 slump now faces the group as the 14/15 June YE repor2ng date rapidly approaches

(June 2016). Environmental sustainability and taxable emissions prove to be driving mo2vators for the group moving forward.

Significantly, the group enjoyed a record second half performance returning cost of capital. Shareholders return across public ownership was

listed prior to the October 2015 AGM as 23 cents which equated a direct return of company value at the 2me of the report. This indicates that

the company has regained some loss but is not yet in a healthy posi2on.

Qantas Group. (2015). Report online. Sydney: Qantas Group.

APPENDIX H Core Competencies and

Sustainable Competitive Advantage

50

APPENDIX I Situational Analysis SWOT and PEST etc. (Original Situa2onal Analysis) follows:

C O M P A N Y

The early pioneers of film, including the

Lumiere brothers (top, 2nd from

right).

In 500BC the Chinese philosopher Mo-Ti described how light from

the outside world beaming through a small hole in a wall in a

darkened room creates an inverted image of the external world on the opposite wall. A

century later, Aristotle wrote of watching an image of an eclipse

projected onto the ground through a sieve. In the 6th century,

Anthemius of Tralles, a Byzantine mathematician and architect who carried out experiments in optics,

developed a camera obscura, a device in which light is inverted through a small hole or lens, and

projected onto a surface or screen.

Louis Aimé Augustin Le Prince (28 August 1841 – vanished 16 September 1890) was a French inventor who shot the first moving pictures on paper film using a single lens camera. He has been heralded as the "Father of

Cinematography" since 1930.

51

SITUATIONAL ANALYSIS Jetstar. Context. Analysis of Current State. Analysis towards “to be” state.

Fintech/Digital Millennials Re2ring incumbent workforce

K E Y TA K E A WAY S : N E W O P P O R T U N I T I E S

52

In highly commodi2zed price compe22ve market, low price posi2oning indicates wide customer focus. In 2015, approximately 1.75 million passengers flew though Jetstar domes2c New Zealand, 70% of which were fares of $100 or less, the vast majority via promo2on online (Anthony, 2016).

CUSTOMER

Jetstar’s main compe2tor in Australasia and Asia is Virgin Airways. However, they compete across the lower and medium price spectrum with parent company Qantas and Air New Zealand through Australasia. With driverless electric cars, and current mobile internet connec2vity stable across most areas on New Zealand and Australia it is conceivable that the market may move to road travel again.

COMPETITIVE

53

COMPANY Upon closer analysis none of this indicates that the company is in a healthy posi2on.

These numbers do not indicate a percentage of profit, nor indicate the number that were sold for under $40. Jetstar segment on price, currently this is their last remaining value

proposi2on. This places the company in a difficult posi2on.

According to research conducted by strategists Michael Raynor and Mumtaz Ahmed successful businesses rarely competed on price (Ahmed, 2013).

HBS professor Ni2n Nohria concluded that successful organiza2ons (winners) excelled at

a combina2on of 4 core a\ributes (strategy, execu2on, culture and structure) and accelerated with a combina2on of a further 2 a\ributes from talent, leadership, M&A

(mergers and acquisi2ons) and innova2on (Ni2n Nohria, 2003).

54

S W O T

55

MAIN Competes on price Has reasonable share of market Customer Guarantee and Price Programs Is in a good position to innovate – they can't harm brand any further

01 SECONDARY Existing value chain Adequate domestic and regional presence Still in evoked set, but last in show

02

S.W.O.T Analysis STRENGTHS

Jetstar is low on strengths.

O V E R V I E W

Low fare strategy, compe2ng on price rather than value add. Exis2ng, presumably large, database, consistent promo2ons and frequent market outreach.

VA L U E P R O P O S I T I O N

56

MAIN Competing on price alone does not allow much wiggle room Negative brand equity due to cancellations or late departures

01 SECONDARY Parent company also competitor 02

S.W.O.T Analysis WEAKNESSES

The company competes purely on price.

O V E R V I E W

While the company has suffered nega2ve brand equity as a result of a run of delays and cancella2ons highly reported on social media, current run 2mes are excellent.

A C T I O N A B L E I N S I G H T

57

MAIN Digital wallets Data and analytics The Millennial market Self-depreciation as a marketing strategy to alleviate the negative brand equity around late departures

01 SECONDARY Utilization of technology to create further economies of scale Utilizing technology to create organizational efficiency

02

S.W.O.T Analysis OPPORTUNITIES

Expansion into routes covered by compe2tors does not appear to be an opportunity worth pursuing based on current compe22ve posi2oning.

O V E R V I E W

The millennial market places value on experiences over assets. Advances in digital offer companies unprecedented opportuni2es to align precisely with markets.

A F U T U R E R I P E F O R I N N O VAT I O N

58

MAIN Technology: Driverless electric cars Rising fuel costs Incumbent competitors Fluctuating currencies Political threats

01 SECONDARY Usual “Act of God” threats Terrorism Global conflicts

02

S.W.O.T Analysis THREATS

Global threats to commerce remain constant.

O V E R V I E W

Strategies to deal with threats need to be addressed for future proofing relevance.

F U T U R E P R O O F I N G S T R AT E G I E S

59

POLITICAL

ENVIRONMENTAL

SOCIAL

TECHNOLOGICAL

PEST

60

Further movements are made by NZ

and Australia toward the TPPA, a deal

that may allow low cost airline providers

access to Pacific Air Routes

2015: CONCERN Significant pressure internally and externally History of oil price losses need to be made up

CONSIDERATION Increased competition: Economies of scale, efficiency innovation from competitors Brand perception: Opportunities exist to align with lucrative emerging markets

POLITICAL Regula2on and legisla2on remain as threats from Governments in loca2ons of opera2on.

61

ECONOMIC GDP Australasia: Slow growth, nega2ve against infla2on. Consumer values

changing. Asian economy slowing.

2008 – 2016: Slow growth, global oil fluctuation, Middle Eastern instability, United Emirates removal from Oil Supply, string of airline crashes, Qantas safety breaches well publicized, global demand pressures dropping due to electric and driverless cars place oil in an unstable demand period.

ECONOMIC ANALYSIS Still paying for 2008/9 slump in travel 2016 Rising minimum wage NZ 2008

CONCERN Carrying large debts (non-disclosed) United Emirates moving 100% out of oil reliance Travel providers heavily commoditized

CONSIDERATION Change in market requirement value proposition (millennial's)) Large maturing Chinese middle class

.

62

Changes in the job market have impacts for airline marketing policies – high numbers have reached retirement in the top 20 developed economies.

VISITOR ANALYSIS Increase: Last year, New Zealand recorded nearly 3 million visitors. 2015

CONCERN Societal attitudes towards oil

consumption changing

CONSIDERATION Millennial’s spending more time

“in nest”

SOCIAL The most effec2ve social factor in New Zealand is the strong growth in

tourism demand.

63

TECHNOLOGICAL Interna2onally, Tech is advancing rapidly allowing for rapid advances in almost

all areas of e-commerce, but crea2ng complexity for investment.

ONLINE AND MOBILE

80 Billion connected devices 2020

CONCERN Internet security

Brand equity influencing buyer

behaviors at POS harder to track

CONSIDERATION

Mobile Wallets

Customer Decision Journey:

Investment in data and analytics

Large opportunities exist to simplify Supply and Value Chains. Tracking Data at POS becoming critical concern.

64

Appendix J Market Product Focus Baby Boomers are also included in the leisure segment but have been

ignored in this strategy as the Qantas Group seeks to segment Baby

Boomers into the Qantas Airways service offering.

Dr. Robert H. Goddard Robert Goddard and the first liquid-fueled rocket

A rusty V-2 engine in the original underground produc8on facili8es at the Dora-Midelbau concentra8on camp memorial site.

A German Lu<waffe Heinkel He 111 H-22. This version could carry FZG 76 (V1) flying bombs, but only a few aircra< were produced in 1944. Some were used by bomb wing KG 3.

MIDDLE IMAGE: The V-2 (German: Vergeltungswaffe 2, "Retribu8on Weapon 2"), technical name Aggregat-4 (A-4), was the world's first long-range guided ballis8c missile. The missile with a liquid-propellant rocket engine was developed during the Second World War in Germany as a "vengeance weapon," designed to adack Allied ci8es as retalia8on for the Allied bombings against German ci8es. The V-2 rocket also became the first ar8ficial object to cross the boundary of space with the ver8cal launch of MW 18014 on 20 June 1944. Beginning in September 1944, over 3,000 V-2s were launched by the German Wehrmacht against Allied targets during the war, first London and later Antwerp and Liège. According to a 2011 BBC documentary, the adacks resulted in the deaths of an es8mated 9,000 civilians and military personnel, while 12,000 forced labourers and concentra8on camp prisoners died producing the weapons. As Germany collapsed, teams from the Allied forces—the United States Of America, the United Kingdom, and the Union Of Soviet Socialist Republics—raced to capture key German manufacturing sites, guided missiles, rockets and jet powered aircra<. Wernher von Braun and over 100 key V-2 personnel surrendered to the Americans. Through a lengthy sequence of events, a significant por8on of the original V-2 team ended up working for the US Army at the Redstone Arsenal. The US also captured enough V-2 hardware to build approximately 80 of the missiles. The Soviets gained possession of the V-2 manufacturing facili8es a<er the war and proceeded to re-establish V-2 produc8on and move it to the Soviet Union. The American team later became known as NASA.

MIDDLE RIGHT IMAGE: August 15th, 1947. Westcod, Buckinghamshire. This department, operated by the Ministry Of Supply, was the central experimental establishment for all applica8ons of rocket propulsion a<er the end of the war. The staff, among whom were 12 German scien8sts, was led by Dr. J. Schmidt (later killed in an explosion). Photos above show all types of captured war equipment; the V-2 being the Science Museum example. Many of the other missiles in the photos are now seen at Cosford.

The test laboratory of the Marshall Space Flight Centre (MSFC) tested the F-1 engine, the most powerful rocket engine ever fired at MSFC.

MIDDLE BOTTOM IMAGE: 1936, Rudolph Schod, Apollo Milton Olin Smith, Frank Malina, Ed Forman and Jack Parsons: Rocket Boys, or Suicide Club? In the late 1930s, a group of Caltech graduate students were booted off campus a<er blowing up (part of!) their building during a rocket test gone awry. Unwilling to give up on the joy of semi-controlled explosions, the students and a few of their friends headed into the San Gabriel Mountains. They picked a deserted gully — Arroyo Seco — and got tes8ng. This was about when their classmates star8ng calling the gathering the Suicide Club. This group is responsible for early research on guided missiles.

Spacecra< propulsion is any method used to accelerate spacecra< and ar8ficial satellites. There are many different methods. Each method has drawbacks and advantages, and spacecra< propulsion is an ac8ve area of research.

65 APPENDIX K Marketing Objectives The provision of digital currency payments in Jetstar’s exis2ng app will allow for exis2ng digital wallets to allocate Jetstar as a payee. In this way, Jetstar can build upon technology pragma2cally, and at a reduced cost. A ‘Wrapped API’ is recommended for addi2on to exis2ng digital wallets to reduce risk. Sidechains operate off the exis2ng bitcoin public ledger block chain; as this is open source, the addi2onal expenditure on wrapping is recommended to secure against malware and other threats inherent in some open source applica2ons involving financial transac2ons. Measurement of key results can be seen in the direct transac2on history. The point of purchase data can be aligned with the selec2on data gathered by the group on their exis2ng websites and smart device apps. By establishing their own plarorms over 2me, the group will enjoy a significant reduc2on in bank and merchant fees. Data gathered directly from customers at the point of purchase will enable the group to make be\er decisions in regard to the customer decision journey, collec2on and analysis of metadata will enable a deeper understanding of demand spaces. If fully adopted, the group may look at providing its own currency as a medium of exchange, further accelera2ng group gains. It is expected that even if digital currency is not adopted by the group as a form of direct payment, it may be assessed for viability as a vehicle to aid the group’s Frequent Flier program.

Motorola was the first company to produce a handheld mobile phone. On 3 April 1973, Martin Cooper, a Motorola researcher and executive, made the first mobile telephone call from handheld subscriber equipment, placing a call to Dr. Joel S. Engel of Bell Labs.

The phone call in the 70s was made on the thing he is holding on the viewers right.

It did not send text messages.

Martin Cooper again.

Here he is showing off a brand spanking new iPhone a gizz-idit.

“How do I use this again?”

Come on Martin – you have clocked up more air time than anyone.

Get down with tech man!

66 Marketing Objectives

U2liza2on of both social media plarorms align with the group's strategy of strengthening social media customer service and expansion of digital channels. The group u2lizes Net Promoter Score (NPS) and other customer insight tools to benchmark performance and gain insight into their customer's decision-making process. Comparison of prior metrics over the proposed evalua2on period will provide credible evalua2ve criteria to indicate the rela2ve strengths and weaknesses of the recommended strategy.

Qantas Group. (2015). Report online. Sydney: Qantas Group

Utilize Snapchat and LinkedIn as an addition to Jetstar’s social media strategy

O l d n e w s

What is believed to be the world’s first selfie, Robert Cornelius,

a self-portrait he snapped one day in October 1839 while standing

in the yard behind his family’s lamp store in Philadelphia.

67

APPENDIX L Solar

Advances in driverless electric cars made headlines during the first quarter of 2016. At approximately the same 2me,

the world's first solar-powered airplane completed two thirds of an around the world flight. Arguably, the

opportunity to support a removal of fossil fuel usage in the transport industry has never been more cri2cal, nor has

the public percep2on of the issue been so abundant. Various studies of millennial aotudes to environmental

sustainability indicate that environmental sustainability is a defining value proposi2on that drives this genera2on

posi2ve engagement with the brands they invest in.

Sa\el. J. (2015). Future Traveller, Tribes, 2030. Future Founda2on.

Barton, C. Haywood, J. Jhunjhunwala, P. Bha2a, V. (2013, March). Travelling with Millennials. The Boston Consul2ng

Group.

68 APPENDIX M Target Markets

M i l l e n n i a l s

Millennials, in 2014, numbered 1.8 billion people globally and are the largest genera2on alive. MillennialWeek.com. (2015). MLL Fact Sheet for Millennial Week DC 14. Washington DC: Millennial Week 70% of millennials reported a desire to visit every con2nent, 75% of millennials reported having a travel app on their smartphone. Barton, C. Haywood, J. Jhunjhunwala, P. Bha2a, V. (2013, March). Travelling with Millennials. The Boston Consul2ng Group.

Generational Impact and Strategic Driver

2016 to 2020 Millennials

2020 to 2025 Emerging

2025 to 2030 Next

1. Digital: Wallets and Currencies

Digital Wallets Digital Wallets and Currencies

Multiple Currency Exchange via Digital Exchange

2. Snapchat, LinkedIn and emerging social media

Snapchat, LinkedIn

Snapchat and emerging social media

Emerging social media

3. Solar Flight and Green Energy

Solar Flight Driverless Cars and Solar Flight. Speculative: Hybrid Jet

Driverless Cars, Drone Transportation, Pilotless Flight


S n a p c h a t U s e r s

More than 60% of US 13 to 34-year-olds use Snapchat. Globally 45% of Snapchat users are aged between 18 and 24, 70% of Snapchat users are female. Omnicore. (2015, October). Snapchat by the numbers. Omnicore Digital Marke2ng. The app has reached a top three ranking in the iPhone app store of many of the world's most developed markets. Ballve, M. (2014, July). Snapchat's Explosive Growth Among Teens And Millennials Means It's Emerging As A Powerful Brand Plarorm. Australia: Business Insider.




2025 to 2030 Next





Snapchat, LinkedIn







I n t e r n a t i o n a l To u r i s t s

UNWTO has forecast 1.8 billion interna2onal tourists for 2030. They are all expected to u2lize mobile for payments and purchase background informa2on. This indicates that mobile usage is a current megatrend. UNWTO. (2015). Tourism Highlights 2015 Edi2on. Madrid, Spain: World Tourism Organisa2on.




2025 to 2030 Next





Snapchat, LinkedIn






71 CROSSOVER Authors Thoughts It should be noted that there is much crossover between Millennials, The Leisure Segment, Business Travellers,

Snapchat Users and market engagement gained through LinkedIn users. It was deemed too complex to explore

these rela2onships.

Aler significant studies into SME’s, I found that tradi2onal ideas around how to segment business size have been

disrupted by digital. Prior, segmenta2on of Small to Medium might be in a combina2on of income and employee

size. Now, an internet based opera2on may need less than 5 employees, turnover 5 – 10 million per annum, and

not require anything more than what is supplied via a website.

Digital has therefore removed the need for the tradi2onal Value Chain such as Porters (and in my opinion, made his

brilliant framework obsolete for large percentages of the market).

Without exploring in conten2ous detail it appears evident in regards to digital and market segmenta2on that digital

has also disrupted tradi2onal forms of market segmenta2on. Markets referred to by marketers are en2rely different

from markets referred to by those who specialise in digital. An example of such is the difference between digital

na2ves and Millennials, and Millennials and Gen X ers. Digital na2ves sit on either side of this, depending on what

era of marke2ng you were educated in, and what era of digital you are referring to, and which country the study of

Millennials was produced by. Furthermore, the rapid speed at which digital is advancing means that genera2onal

differences, which are now being defined by exposure to digital, is defining the a\ributes that segmenta2on relies

on. A genera2onal indicator of 20 years is becoming less helpful as a means to ensure more efficient market

segmenta2on.

72 APPENDIX N Price Strategy

The ability for Jetstar to promote at a point of sale affords advantage in the poten2al of increased sales, while accommoda2ng exposure to wider markets. Alipay dominates the Asian market with 400,000,000 registered users.

Alipay. (2016). Trust makes it simple. China: Alipay.

Addi2on to both Google Wallet, with a strategic focus on Apple Pay will increase likelihood of adop2on.

Boden, R. (2016, March). Apple Pay tops US merchant mobile wallet requests. NFCWorld.

Author of this report would like to note the following:

In March, 2016 I undertook extensive studies in mobile wallet applica2ons, on behalf of Victoria University of Wellington as a tutor, 3 large clients in Wellington, and a New York based consultancy group specializing in digital wallet payments. While checking my original March metrics, for this report, on Alipay (800,000,000 registered users, over 171,000,000 global transac2ons daily, March 2016) and Google Wallet (20 million downloads as of 2014, March 2016) I went back to the same sources referenced above. Alipay had since halved their number of registered users and removed the global transac2ons metric. Google Wallet have removed their download metric and removed a 15% 1 star ra2ng metric that was also associated with the resource.

As a researcher I witness these anomalies on a daily basis. It was simply worth no2ng, in this instance I had the feeling that these changes were made as reac2ons to changes in marketplace dynamics. I have yet to prove the reasons I suspect, and felt it too laborious to pursue for this report.

Precursor to the cell phone: The Numeric Pager.

73

A P P E N D I X O A c q u i s i t i o n a n d R e t e n t i o n

One addi2on to Jetstar's exis2ng mix of web channels is LinkedIn. LinkedIn is growing

and represents new markets. Content on LinkedIn represents an opportunity to

present a slightly altered narra2ve for the company. It will require a firmer business

and analysis focus than the website and a move away from the internally focused

advertorial voice of the Jetstar blog. Moving into LinkedIn will allow the group to

con2nue to communicate with the maturing millennial market.

It should be noted that Snapchat has recorded high levels of millennial engagement,

but the focus on LinkedIn in regards to millennials in the recommended strategy has

been in an2cipa2on of maturing social media habits over 2me. It is plausible that a

social media plarorm may emerge between 2016 and 2030 that is more appealing to

millennials and that takes aspects of both (Snapchat and LinkedIn) plarorms as a

segmenta2on value proposi2on, in which case it would be recommended that Jetstar

look into adop2on of such an emerging plarorm.

The following chart indicates what is suggested based on exis2ng usage. Facebook

has been omi\ed as the Facebook plarorm carries user func2onality across all

Exis2ng Channel Migra2on criteria and remains the market leader.

The following matrix provides a pragma2c illustra2on of how the addi2on of the

recommended strategy can be integrated into, and take exis2ng informa2on from,

current and recommended channels. It is not meant as a “playbook,” rather as a quick

view of how the recommended strategy is modular and how it seeks to enhance the

current strategy and channels.

Existing Channel Migration

Digital Wallet Snapchat Solar Sponsorship LinkedIn

Instagram Broadcast through Instagram

Use Instagram imagery

Instagram Solar progress – images, messages and hashtags

Use Instagram imagery

Twitter Broadcast th rough Twitter

Use Twitter messages Tweet solar progress Links to Twitter where appropriate

YouTube Information and use guides

Snapchat user content can be uploaded to YouTube

V i d e o s o f s o l a r engagement. News segments

It is highly likely that LinkedIn will adopt video on their platform

Flicker Broadcast th rough Flickr

I m a g e s u s e d o n Snapchat

I m a g e s o f s o l a r progress

Use Flickr imagery

Blog (tumblr) Information and use guides

Promote Snapchat on Blog

Stories and images of solar progress. Invite user stories

LinkedIn content needs to be more intellectual than existing Blog

Google + Information and use guides

C r o s s p r o m o t i o n images.

Stories and images of solar progress

LinkedIn content needs to be more intellectual than Google +

Website Information and use guides. API for click use

C r o s s p r o m o t i o n ; Snapchat and Jetstar

Stories and images of solar project

Promote LinkedIn on website. Driver for employment

Media Release Information and use guide

C r o s s p r o m o t i o n ; Snapchat and Jetstar

Stories and images of solar project

Media Releases can be utilized on LinkedIn

App API for click use C r o s s p r o m o t i o n ; Snapchat and Jetstar

Donate to solar project D i r e c t i o n a n d awareness of digital payments functionality

API Requirements API Sidechain Wrapper Note: changetip.com is operating a platform that allows users to “tip” anyone in the w o r l d i n B i t c o i n , through social media messenger functions a n d A P I s , t h e r e m i t t a n c e a n d currency can be sent via messenger, twitter and many others. This function may be added to Snapchat presently.

LinkedIn could opt to s u p p o r t d i g i t a l payments in the near future.

74

A P P E N D I X P P o s i t i o n i n g

Strategy More People More Places More Often

Digital Currencies and Wallets Reduction of payment friction, increase in currency options for customer, spend data gathered to inform future strategy, exposure to larger markets. There is a value proposition gained through ease of payment.

Adoption of digital wallets is increasing globally, more people are purchasing via mobile apps, purchase dependent on less factors (ie, internet connection, device, disposable funds only).

Reduction of time to purchase increases likelihood of buying “on a whim.” Future state likely: The technology required for widespread adoption of cryptocurrencies and digital wallets accelerates process automation. All current industries and market segments will experience disruption. It remains to be seen if process automation will offset potential reductions in consumer spending due to increased unemployment.

Snapchat and LinkedIn Global growth in Snapchat adoption, high in 18 – 23 demographic. Incumbent Millennial market maturing, opportunities to align with changing market needs through LinkedIn.

Snapchat: Experiences, stories and sponsored content platform functionality allow Jetstar to promote benefits of travel and destinations. LinkedIn: Content alignment allows for richer narrative from Jetstar exploring issues relevant to target markets values. New LinkedIn Jobs App allows travellers to search for employment far from home reducing employment down time and increasing markets means for repeat purchase.

Snapchat: Photo and video may make travel destinations more desirable, increasing motivation. Experiences of peers may increase FOMO (fear of missing out). LinkedIn: Promotion of wider issues in destinations may increase travel frequency if content promotes motivation other than leisure for travel (such as volunteer work abroad).

Support of Solar Millennials and emerging markets attach personal values to environmental sustainability. In turn, Jetstar may enjoy increased brand equity through trust and loyalty.

Covering solar, green energy and advances in electric transportation provides a more expansive narrative with which to introduce the appeal of destinations to new and existing travellers

Current: Investment in green energy may inspire increased travel as proceeds generated contribute towards a sustainable cause. Future state plausible: Advances in battery cell technology may accommodate a hybrid electric/fuel jet engine; reduced costs could influence pricing strategy. Future state speculative: Solar flights may become a commercial reality. This may reduce levels of guilt that inhibit environmentally conscious travellers

75 APPENDIX Q Marketing Programme

“Lowest Airfares guaranteed” was a las2ng catchphrase u2lized by the company and one which has arguably secured compe2tor segmenta2on. In alignment with the companies’ mission statement, this strategy has focused on genera2ng ease of payment fric2on, increased exposure to markets and reinforcement with the values of the brand, in order to fly more people to more des2na2ons more olen.

P r i c e S t r a t e g y This strategy is intended to con2nue an exis2ng rela2onship with a maturing millennial market, capture emerging Snapchat markets and to support exis2ng strategies in order to enable Jetstar to fly more people, to more places, more olen.

P r o d u c t S t r a t e g y

L e l : C o l l e c 2 o n o f p a y p h o n e s . R i g h t : T h e fi r s t m o v i e w i t h b u i l t i n s o u n d .

L e l : T h e c o l d W a r , N u c l e a r R o c k e t s . R i g h t : U n v e i l i n g t h e B o e i n g D r e a m l i n e r . F a r r i g h t : D e s i g n o f t e l e p h o n e T h i s m o d e l s t a y e d i n f o r m a n y y e a r s .

Lel and right: VCR Home Video Recorder – precursor To DVD. Australian Live Stock Trade

L e l : F i r s t 3 5 m m C a m e r a a n d fi r s t c e l l u l o i d c a m e r a t h e K o d a k 2 . R i g h t : T h e fi r s t M o t o r o l a C e l l P h o n e .

76

A P P E N D I X Q P l a c e a n d P r o m o t i o n

S t r a t e g y

PORTAL DEVICE TIME EMOTION NARRATIVE VALUE

Jetstar App Digital Payment Mobile: smart Can be adapted for console

On demand Easy payment, hassle free, satisfaction at purchase ease, reduction of post purchase dissonance

The future of payments, economies and the reduc t ion o f pover ty th rough the establishment of peer to peer, real time, cross border financial transactions. We are aware of, and a part of, the future

D a t a a n d A n a l y t i c s t h a t e n a b l e understanding of the customer decision journey, demand spaces, the future of payments and demographic decision locations. Customer gains ease of payment across currencies, reduction of friction

Other Wallet Digital Payment Mobile: smart Desktop Can be adapted for console

On demand Easy payment, hassle free, satisfaction at purchase ease, reduction of post purchase dissonance

Easy payments brought directly to you, nothing can stand in the way of you achieving what you want, when you want. We will work with vendors to aid our customers

Customer gains ease of payment, reduction of friction

Snapchat 1 “Snapchats”

Mobile: smart Real time reciprocation of experience * Whatever emotion is stimulated in the experience is the one that is meant to be shared to receiver and experienced. This does not mean that the receiver has to reply with an experience that stimulates the same emotion back. An emotional exchange can be played on the basis of a hierarchy of experiences and the emotional reactions they stimulate

This is what you are missing out on, this is what happening, look at this! How cool is this, how cool would your life be if you were experiencing this right now? How amazing is this, how much more would your life be enriched if you could feel and experience this right now?

Jetstar gain an advertising channel that is immediate and easy to execute. Customer engagement can be monitored and analysed against attributes of the snapchat sent. Customer gains a view of the world outside of the confines of their present environment

Snapchat 2 “Stories”

Mobile: smart Addition to contact lifetime, can be browsed or opened anytime. No expectations on viewing timeframe

These are moments of a person’s life that they have captured and attached to their contact information in order to present an image of themselves. The functionality in this aspect of the platform is a significant innovation that marketers, brands and HR people should pay close attention to. Potential applications are a game changer across multiple industries.

We enable more people, to fly to more places, more often. These are the experiences we create and share through the services we provide, and the prices that we charge for them

Jetstar can attach stories that illustrate any aspect of their brand that they wish to accentuate to their Snapchat market. These stories are quick, and translate by video, photos and text, enabling to company to provide a rich narrative to market. Market can choose if and when to engage in Jetstar’s brand stories and show peers reasons other than price as to why thy chose Jetstar. This functionality provides another avenue to stimulate conversations from content that is engaging and easily exposed

Snapchat 3 “Sponsor Content”

Mobile: smart Content can be transferred across channels

Analytics are provided by Snapchat on user engagement

Match brand requirements. Align with market

We may be an airline, but our people understand you, and they know what you like, we like it to, we align with you, our business is made up of people just like you who have the ability to express themselves in our company through channels such as Snapchat. Align with us, because we share the same values, humour and language that you do

Provides Jetstar the ability to instantly align with the Snapchat market. Provides content for the market that is interesting or fun to kill time with

LinkedIn 1 News Feed Articles: Fintech, Solar Flight, Green Energy, Employment, Global Sustainability

Mobile: smart Desktop

News feed is browsed by LinkedIn members.

Informational, interesting, stimulate a conversation about important issues and wider impact

Align with us, because we share the same concerns that you do

Provides Jetstar the ability to remain in connection with maturing markets, and reach new markets. Enables the company to illustrate that they are more than just low fares. Creates value to market by providing content that stimulates reflection and conversations on important subjects

LinkedIn 2 News Feed Engagement: Like, comment or share.


No engagemen t expec ta t i on , bu t engagement at time of exposure is desirable

Engagement indicates strength of impact. Engagement is desirable and should indicate contemplation and reflection

Let’s start a conversation about important things

Jetstar can evaluate who is engaging in what, and how they are engaging with it. Market can engage in conversations that may be informative and may widen their networks

LinkedIn 3 New “Jobs” Platform. Employment opportunities


When an individual is thinking of employment options

In order: Inquisitive, interested, happy Align with us because we provide opportunities to make a difference

Mutual: Exposure to employment, exposure to employees

Across Channels: Solar flight developments, green and sustainable energy

Mobile: smart Desktop Radio Podcast TV

Capture of events if and when they happen with reporting across channels as soon as possible. Speed is of the essence. Updates and reflection to stimulate exposure.

Awe, amazement, surprise, inquisitive, important, confident, perplexed, interested, motivated, appreciative

What is the future of technology, travel and sustainability?

Jetstar can attach future technology and sustainability to their brand, and gains a first hand glimpse into the future of flight. Market gain information around this technology

77

NOTES: Place and Promotion Strategy * The ‘snapchat’ area is a tool that enables an experien2al exchange of

emo2on. Real-2me photos and short videos, with accompanying text

and sound, serve as the closest approxima2on to a shared experience

as two or more people can share without being in physical proximity as

one another. When executed perfectly between sender and receiver,

the sender is able to send a combina2on of words, video, sta2c image

and/or sound that is intended by the sender to be received and

experienced within the moment that the sender is experiencing it.

If the receiver does not respond within the 2me frame expected by

the sender, or the receiver does not reciprocate in an emo2onal level

that matches that of the sender or is in kind of the sender, then the

receiver is likely to receive less correspondence from the sender.

78 APPENDIX R Budget RASK/RASM (Revenue in cents received for

available seat per kilometre/mile) has also been

avoided. It is noted that RASK is generally falling,

however, without being able to predict the parallel

price of oil over the next 15 years it is difficult to

establish if the current reduc2on in airline pricing

direct to market is one that should con2nue to be

expected.

CAPA. (2016, June). CASK: Europe's Full Service

Airlines have the world's highest costs, US airlines

the lowest. CAPA.

China led the ancient world by introducing shells as a medium of exchange and unit of account in commerce. Like many of their counterparts, the Chinese at the end of the neolithic age used shells as money. Shells were durable, easy to carry and count so they were used as a universal equivalent. The unit is peng, which has evolved to mean "friend“.

Shell Rings, Bakiha, New Georgia, Solomon Islands. Carved clam shell. A group of ancient clam shell money rings. Carved from a sec8on of giant clam shell the outer surface calcified from 8me spent in the elements. Used as a tradi8onal form of currency. Encrusted pa8na, with some minor loss to the edges evident; in fine condi8on.

On the Papua New Guinea island of East New Britain shell currency is s8ll considered legal currency and can be exchanged for Kina.

Barter: Chickens for Subscrip8ons Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is dis8nguishable from gi< economies in many ways; one of them is that the reciprocal exchange is immediate and not delayed in 8me. It is usually bilateral, but may be mul8lateral (i.e., mediated through barter organiza8ons) and, in most developed countries, usually only exists parallel to monetary systems to a very limited extent. Barter, as a replacement for money as the method of exchange, is used in 8mes of monetary crisis, such as when the currency may be either unstable (e.g., hyperinfla8on or defla8onary spiral) or simply unavailable for conduc8ng commerce.

79

APPENDIX S Evaluation and Control

Engagement KPI’s

3. It is likely that The Qantas Group has current benchmark metrics, but highly unlikely that they are publically available. Industry benchmarks can be established easily. 4. Automated Search KPIs related to Search Engine assessment are also provided. This is an emerging criteria for evalua2on and control. Findings of this report from prior client engagements have indicated excep2onal results in monitoring these metrics and adjus2ng web content to accommodate. While beyond the scope of this report, a simplicity assessment is recommended in the 19 month juncture of the recommended strategy. This is recommended in order to establish a balance between the addi2onal strategy recommended, and ensuring the ability of Jetstar to maintain core strategic impera2ves. Overall it is recommended in order to assess the impact that added channels are having on the customer decision journey.

Five Dollar 1902 Blue Seal Na8onal Bank Note. Before 1785, there was an es8mated 8000 currencies in opera8on in the US. The dollar was chosen to become the monetary unit for the USA in 1785. The Coinage Act of 1792 helped put together an organised monetary system that introduced coinage in gold, silver, and copper. Paper notes or greenbacks were introduced into the system in 1861 to help finance the Civil War. It was formalized in the Coinage Act of 1792. Dollars or units, prior to Fiat currencies the original greenback was backed by interna8onal Spanish Dollars, Gold and Silver. “Each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver… the money of account of the United States … shall be expressed in dollars, or units … and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regula8on.”

80

A P P E N D I X T A f t e r t h o u g h t

The recent acquisi2on of LinkedIn (the worlds largest B2B social network) by Microsol (the worlds largest B2B supplier) should be seen as reinforcement of the value of u2lizing the LinkedIn plarorm. LinkedIn will now enjoy an enhanced global push through Microsol channels. Since wri2ng Qantas and Jetstar have added payment op2ons to Google Wallet.

81 JULY 2016: 'The defini3on of adventure': Solar Impulse 2 completes round-

the-world flight

[email protected] nz.linkedin.com/in/clintondenheyer

clinton den heyer