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Classic Airline

In: Business and Management

Submitted By jaysonjohn216
Words 2590
Pages 11
Classic Airlines and Marketing
MKT/571

Every company recognizes that it costs far less to hold on to a customer than to attain a new one. As the commercial airline industry is shifting at a fast pace, Classic Airlines is faced with the obstacle of bringing improved value within thinner consumer budget. Since the travel industry expenses are decreasing and new technology is steadily replacing many jobs, Classic Airline is set to use this as an opportunity to influence proven techniques while improving the existing Customer Relationship Management system. Classic Airlines strives to introduce a transparent planning process to increase customer loyalty.
Rising costs and over expansion has been a hindrance for Classic Airlines. With a 20% decrease in flights, 19% decrease in rewards members and 32,000 employees on the payroll; the company is need for a significant change. The Board of directors have also added a 15% cost reduction mandate for 18 months increasing the need for a transformation within the company. Amanda Miller was hired in 2000 to prepare for her promotion in 2002, following the retirement of Jack Broadway. This switch happened at a critical time, and has inopportunely set the airline back. Amanda Miller believes in operational excellence as the number one priority for the company, which has left the firm vulnerable in a time when consumers need to be valued and competitors are learning more of continuous improvement.
Problem Solution Classic Airlines earned 8.7 billion in sales last year; however they have clashed with an unproductive Customer Relationship Management system which reduced earnings from consumers. Classic Airlines hurts from the absence of an effective CRM integration, unclear customer relationships and minimal creative vision within the company. Renewed priorities need to be established such as establishing realistic standards...

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