Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

Introduction

Classic Airlines has more than 2,300 flights a day, it has a fleet of more than 375 jets, which in turn serves more than 240 cities. This is why Classic Airlines is considered one of the biggest airline companies in the industry today (University of Phoenix Scenario, 2009). Classic Airlines has developed some problems because of the problems with today's economy, and all of their overhead costs that continue to rise. Classic Airlines also has many both external and internal problems contributing to their crisis. Classic Airlines must address this problem immediately by using the basic problem-solving method. Classic Airlines must use their companies marketing resources and find some outside marketing options to come up with some kind of a profitable solution. This paper will show how the nine-step process is used to put Classic Airlines back on track to a profitable resolution to their problems.

The Situation - Step 1

Even though Classic Airlines is profitable the prices of their stock have gone down by 10% over the last year, and their moral of their employees seem to be at an all-time low because of the heightened examination of the airline industry from all of the different areas of today's economy. The reward members of Classic have reduced the number of flights taken over the past couple of years, which has caused increased concerns regarding whether the company will be able to survive today's economy. Classics has also been given a mandatory 15% cost reduction company wide by their board of directors and implemented over the next 18 month-period. To help improve Classic's situation they will need to address their decrease in customers and the employees low morale problem in order for any of this to be successful. Another problem that Classic is facing is that they do not have any kind of an alliance agreement with any other airline company. Another improvement will have to be their frequent flier program in a way that will show a measurable return on an investment and at the same time they are still meeting the goal of their cost reduction plan. Classic will also be able to use environmental to predict more accurately the change in the consumer trends and the market to help them to alter the market plan in order to meet these changes.

Frame the Right Problems - Step 2

Classic Airlines is facing a variety of problems that require attention, and some that require more attention than others that can cause Classic to go bankrupt. The decrease in frequent flyers shows that the customer loyalty is extremely low, and with a decrease in the shareholder price shows that the employee morale is also extremely