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Market Segmentation, Targeting and Positioning

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Air New Zealand flies to, from and within New Zealand, directly serving 53 cities in 16 countries, including 27 destinations within New Zealand. They mainly focus on New Zealand, Australia and United Kingdom Market, who travel from or to New Zealand.

Air New Zealand is mostly preferred by international passengers from English countries travelling to New Zealand. They offer in-flight Kiwi experience targeted to international passengers, who want to experience kiwi culture and food, traveling to or from New Zealand. Most of the passengers who fly with Air New Zealand are young and budget conscious travellers who want value for their money as Air New Zealand offers many services at affordable fares. This type of passengers usually uses social networking sites and YouTube, which are Air New Zealand's primary advertising medium. Air New Zealand's global presence is very limited which makes them less popular among travellers in other countries. They have large domestic network which makes them the most preferred airline by travellers in New Zealand. According to a 2009 Brand Preference Survey conducted by TNS Conversa, 79% of Kiwi travellers favoured Air New Zealand over other airlines. They own three regional airlines, which makes them the biggest and most preferred airline for domestic passengers.

By the help of Cogent Analytics Air New Zealand segments their passengers according to the cabins they book and long their journey is. The main objective of this segmentation is to encourage the passengers to fly more frequently into their Airlines and to build value and trust with the customers.

If we look at the official site of Air New Zealand, we can easily assess that they target Asian travellers specifically Chinese and Japanese travellers in New Zealand. As Rugby is considered a part of kiwi culture, Air New Zealand also tries to target rugby fans during rugby matches around the world. They also target leisure tourists traveling to Australia, Pacific Islands, Bali, United States and Canada by offering them special deals all year along. They also offer good deals to tourists travelling for adventures sports, there are many package deals on air New Zealand's sites for adventure sports lovers.

Air New Zealand positions itself as an airline which offers kiwi experience to international passengers travelling to or from New Zealand. They are the only airline that offers on flight kiwi experience so if a traveller wants to experience kiwi culture before he or she arrives in New Zealand, would prefer Air New Zealand over other airlines. In comparison to other airline like Qantas and British Airways that fly to New Zealand, Air New Zealand is the only one that offers innovative service and low cost air tickets.



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