...Classic Airlines Problem-Solving Process Barbara Terry MKT/571 – Marketing April 10, 2012 Clifford M. Lavin MSIM University of Phoenix Classic Airlines Problem-Solving Process Classic Airlines, one of the largest airline carriers in the world, servicing 240 cities, and more than 2,300 flights every day is in the service industry (UOPX Classic Airlines scenario, 2012). Classic Airlines is making a profit; however, its share prices have decreased 10% in the past year alone, and its customer base is also on the decline. This year the company had a net income of 10 million, whereas the previous year they had a net income of $71 million (UOPX Classic Airlines scenario, 2012). There are numerous internal and external factors contributing to Classic Airline’s current predicament. Decreasing stock prices, rising fuel costs, and declining consumer confidence are a few of the challenges the airline is facing. Additionally, internal disagreement among upper management is causing a direct problem to the Marketing team. Air travel around the globe is steadily increasing, and many people fly because it is necessary, however; minimal research has been conducted on how stress is related to people who fly frequently (Mawhinney, 2007). Classic Airlines management must take proactive measures, and conduct some in-depth research to determine the root cause of the current dilemmas. The purpose of this...
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...Classic Airlines Paper Clinton C. MKT/571 MARKETING 8/12/2010 Carol Introduction The purpose of this paper is to identify and describe what product or service Classic Airlines is marketing, and its current corporate culture. In this scenario, Classic Airlines is the fifth largest airline carrier in the world, commanding a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales. Marketing Needs and Services The rising cost of fuel and labor as a result of economic times is preventing Classic from competing to regain its lost customers also the negative messages conveyed by Wall Street and the media is bringing employee morale down to an all time low. In an attempt to balance out their financial loses and cut down on any further financial downslides, the board of directors is mandating a 15% cost reduction but expects innovative marketing strategies to bring in more profitable return on investments of the frequent flyer program. However, the challenges that Classic faces are to increase passenger activity by rewarding its current customers and by enticing potential new customers. To do this Classic must develop a marketing plan. The plan must incorporate “choosing the target markets and getting, keeping, and growing customers through creating, delivering, and...
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...Classic Airlines and Marketing Paper Your Name University of Phoenix MKT/571 Your Instructor Date Classic Airlines and Marketing Classic Airlines has seen decreases in its profit shares and Classic Rewards members than in the past (University of Phoenix, nd., p. 1). Such decreases have had a significant impact on customer satisfaction levels and organizational profits. Therefore, senior executives, marketing, and financial analysts must use the appropriate marketing approach to address such issues and concerns of the organization potentially filing for bankruptcy. The senior management and analysts at Classic Airlines must use the organizational data to address the organization’s dilemmas; meanwhile, implementing marketing concepts that will be in the best interest of the commercial airline. Marketing Concepts Related to Classic Airlines The marketing concepts that have been identified in this scenario are a combination of various concepts and information systems, such as those described in this week’s required text readings. However, one of the marketing concepts that can be related to the Classic Airlines scenario is the holistic marketing concept. “The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies” (Kotler & Keller, 2006, p. 17). This marketing concept has four components which are the following:...
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...Classic Airlines and Marketing In this paper the author will provide an analysis of the Classic Airlines scenario. This analysis will include marketing concepts found that relates to the scenario. “Classic Airlines was the world’s fifth largest airline, Classic Airlines, commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (Classic Airlines, 2010). Due to recent uncertainty of the economy Classic Airlines has experienced a variety of challenges. Their profit shares decrease 10%, and the decline of their reward program and membership (Classic Airlines, 2010). Other challenges that consumed the Airlines consisted of the lack of consumer’s confidence, and the organization decrease employee morale, revenue, and profit shares. The management team will come together to determines how to become successful once again. In efforts to increase the growth of Classic Airlines, the management team will have to develop and implement an effective marketing plan. “Marketing deals with identifying and meeting human and social needs” (Kotler & Keller, 2006). The marketing concepts that relate to the scenario consist of increasing the growth of this organization by determining the consumers needs, wants, and demand. Other marketing concepts involve planning, implementing, and controlling. From a managerial point of view, marketing is the process of planning and executing the concept, pricing, promotion, and distribution of ideas, goods...
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...Classic Airlines and Marketing Concepts MKT/571 April 5, 2012 Professor Jerry Shipley Classic Airlines and Marketing Concepts The significance of marketing one’s business in the global market of today has become important to the success of an organization. Prosperous corporations, such as Wal-Mart, General Electric and Nike have learned that effective marketing entails the identification and fulfillment of consumer needs. According to Kotler and Keller (2006), “good marketing is a result of careful planning and execution” (p. 4). As one of the world’s major airline corporations, Classic Airlines has escalated to a corporation obtaining 32,000 employees, over 375 jets, 2,300 daily flights, and sales growth of $ 8.7 billion (UOP, 2011, Week One Course Materials). Inspite of Classic Airlines successful tenure of over 25 years in the airlines business, they face present financial challenges because of reduction in stock prices, employee morale, customer insecurity, escalating fuel, and labor prices, and internal managerial differences. The object of this paper is to describe some of the marketing concepts that are discovered in week one’s reading and confer how these concepts relate to Classic Airlines’ marketing challenges and existing corporate culture. The various challenges posed for Classic Airlines offers an opportunity for the business to begin with a SWOTT analysis to Classic Airlines’ strength, weaknesses, opportunities, threats, and trends, within the airline business...
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...Classic Airlines and Marketing MKT/571 March 28, 2013 Audrey Dorsey Classic Airlines and Marketing Currently the fifth largest airline, Classic Airlines has 375 jets serving 240 cities with 2,300 daily flights. Classic Airlines currently employs 32,000 employees and has grown considerably over 25 years. Although Classic Airlines has grown and employs 32,000 employees, the company is currently experiencing decline in stock prices, customer loyalty, and employee morale. Classic Airlines has experienced a 19% decrease with their classic reward members. These customers are currently using other airlines for travel. This paper presents challenges Classic Airlines will face relating to marketing concepts and current corporate culture. Marketing involves “identifying and meeting human and social needs” (Keller & Kotler, 2006, pg.2). Marketing Management “is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value” (Keller & Kotler, 2006, pg.3). The major area of concern is customer loyalty. Classic Airlines currently experienced a 19% decrease in classic award customers and customers who remained flew less frequently. Senior VP of Customer Relations Renee Epson stated she has been saying for the past two years “we’ve lost touch with our customers. Every day I monitor the customer service calls and hear customers tell us what they want but we don’t have the services...
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...Classic Airlines Marketing Solution Because of the tragic events following 9/11, airline industry’s profits significantly decreased which resulted in an economic downturn. Classic Airlines was not immune to the recession. Classic Airlines Classic’s Rewards Program is currently suffering. Classics Customer Rewards Program has seen a 19% decrease in the number of members and a 21% decrease in flights among its current reward members. Classic Airlines marketing department needs to make an effort to increase customer volume and sales. So what can Classic Airlines do to increase these numbers? Identifying and addressing the internal and external factors contributing to Classic Airlines current crisis will help alleviate pressure associated with this current economic downturn. Employing market data to help develop goals while recognizing and focusing on the challenges and opportunities facing Classic Airlines, will give the airline the ability to take their future to new heights. Classic Airlines is the fifth largest airline and commands a fleet in excess of 375 jets that serve 240 cities with more than 2,300 daily flights. The airline also manages a staff of nearly 32,000 employees. Classic has managed to remain profitable over the past year. The airline earned $10 million on $8.7 billion in sales; however with rising overhead costs Classic Airlines is experiencing setbacks. The airlines share prices have decreased by 10% in the past year. Furthermore, with the negative publicity...
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...RUNNING HEAD: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Shelley R. Brothers MKT/571 Marketing University of Phoenix This paper will break down the problems that Classic Airlines are facing with so many pitfalls in their airline. With using the proper product launch plan, Classic Airlines should be operating up to stands if all goes well. Classic Airlines, a 25 year old airline, is ranked the world’s fifth largest airline consisting of more than 375 jets that makes over 2,300 flights daily to 240 cities. The airline has grown into a 32,000 employee airline and has earned $10 million on $8.7 billion in sales last year (Classic Airline Scenario, 2010). Although Classic Airlines have been profitable, like other airlines, they have struggled through several marketing problems in the past year which has caused them to fall short of hitting rock bottom lowering employee morale and customer loyalty. As the economy continues to struggle Classic’s Board of Director have insisted on a 15% across-the-board cost reduction over the next 18...
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...Classic Airlines and Marketing Classic Airlines is known as the world’s fifth largest airlines, commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 daily flights. In the 25 years since its inception, Classic has grown substantially with 32,000 employees. As profitable as it is, Classic like any other airlines is no stranger to the challenges as travel industry continuing to face challenging times. Consumers budgets are tight and cutting back on unnecessary expenses and in most cases finding an alternative in which they are can buy cheaper seats and better customer service. Classic Airlines is facing the challenges on how to win back the members of the classic rewards that the company offer and how to keep the frequent fliers customers that they have retained to choose Classic over the competitor. This paper will explain some of the marketing concepts to beef up Classic’s frequent flier program with methods that will demonstrate a measurable return on investment (ROI), the marketing challenges it faces, and its current corporate value. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefits the organization and its stakeholders. Marketing deals with identifying and meeting human and social needs (Kotler & Keller, 2006). Financial success often depends on marketing ability. Finance, operations, accounting,...
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...Classic Airlines is the world’s fifth largest airline with a fleet of more than 375 jets serving 240 cities with 2,300 daily flights. The company currently employs more than 32,000 employees, still maintaining profits of over $10 million in the current year. Although profits are not as viable, there is a lack of customer use in the airline industry since 911. Stock prices have declined 10% because customers are not as secure with flying as they were before the 911 tragedy causing shareholders to keep Classic under scrutiny to make changes. Classics’ Classic Rewards membership has declined 19 % and a 21 % decrease in flights per remaining customer which has caused concern for Classic Airlines. (University of Phoenix, 2012) Another problem for Classic is rising costs of labor and fuel has placed limitations on how Classic competes for frequent flyers. The board of directors has mandated a 15 % across-the-board cost reduction over the next 18 months. The information in this paper will discuss a nine-step problem solving strategy to help Classic Airlines regain customer confidence and satisfaction. The main problem addressed in this paper is maintaining a viable rewards program to lure frequent flyers back to Classic Airlines. Framing the Problem Classic Airlines must first understand that most of the problems the company faces are uncontrollable. Classic needs to determine why the company has been losing rewards members. One of the first steps would be to establish a survey...
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...Classic Airlines and Marketing The Classic Airlines Company’s commands a fleet of more than 375 jets that serves 240 destinations around the world with more than 2,300 daily flights (UOPX Materials, 2012). Over the last 25 years of operations, classic has grown to an organization of 32,000 employees and earned $10 million on its $8.7 billion in sales (UOPX Materials, 2012). After September 11, 2001, classic started facing worldwide problems, such as the rising costs of fuel and labor, aging equipment, and the complicated reward programs. These problems cause the company millions of dollars taken away in their profit. Their loyal customers and reward members were also declining. The stakeholders authorized a 15% cost reduction over the next 18 months to stabilize and reinvent the company. This paper will detail some of the marketing concepts found in the week reading and its application to the scenario in order for Classic Airlines thrives in business. Classic Airlines is profitable organization that needs to concentrate on the marketing techniques. The company must have an effective marketing plan in place, which focused on passenger activity by rewarding frequent fliers to retain customer loyalty. Rewarding frequent fliers, such as giving them a priority boarding to the aircraft, access to airport VIP lounge, and redeem miles for flights will entice customers to travel within the airline. These programs will boost profit and stabilized the business. To implement the marketing...
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...Running head: PROBLEM ANALYSIS: CLASSIC AIRLINES Problem Analysis: Classic Airlines Judith Judson University of Phoenix Problem Analysis: Classic Airlines To launch a successful marketing campaign, a company must evaluate all environmental factors must formulate proper implementation procedures. Much of the focus must be in planning to prepare the company for unexpected outcomes, mitigate identified risks, and control the timeframe and budget as much as possible. Classic Airlines is a company with an extensive history of success; however, the company has recently encountered difficulties in their progression toward an effective customer service and marketing campaign. Classic Airlines faces the possibility of failure and possibly bankruptcy if their key project is does not overcome obstacles. It is critical that Classic Airlines regain their position as an industry leader in the market, increase revenue and profits, and create positive, lasting relationships with customers. To achieve this, Classic must enter into a new realm of marketing to meet a growing demand from customers and compete effectively in value and pricing. Describe the Situation Classic Airlines is the world’s fifth largest airline. Classic Airlines commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 flights daily. In the 25 years since inception, Classic has grown to be an impressive organization with 32,000 employees, and last...
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...Running head: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Marketing MKT/571 August 15, 2011 Classic Airlines Marketing Solution Classic Airline the world’s fifth largest airlines, has a fleet of more than 375 jets which serve 240 cities with over 2,300. Flights daily (University of Phoenix 2011). The company is profitable however, there has been a decline in the loyalty rewards program as well as a decrease in share prices. The management team is working to identify a marketing solution and strategy that will provide a win back solution. This paper will perform the nine step problem solving method as it relates to Classic Airlines scenario. Framing the problem: The primary problem for Classic Airlines is a decline in return customers especially the loyalty programs customer base. This problem is due to the cost it takes to lose a customer is greater than the cost to maintain customers in that the cost of marketing to new customers is extensive. According to the text, it can cost a company approximately 5 times more to acquire new customers than to retain the existing customers. (Kotler & Keller 2006). Describe end state and goals: The end state would be for Classic Airlines to win back those loyal customers who currently make up 19% of the decline in the company. Acquiring and gaining new loyal customers at a rate of no less than 15% of the current state. The goals that are attainable and measurable for this second stage will be those...
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...Classic Airlines Marketing Solution MKT/571 June 11, 2012 Karlene Swalley Classic Airlines Marketing Solution Classic Airlines is facing numerous internal and external issues both internal and external. The external and internal marketing problems are affecting the needs and wants of the customers, stakeholders, and the profitability of the company. It is the responsibility of the Marketing department to review and come up with a sound marketing solution to assist with combating the poor sales, and reduced profits of the company and to win back and connect with its customers. The marketing department will employ a problem-solving model to solve Classic Airlines marketing problems. The model will consist of nine steps and it will assist the marketing department with identifying and defining the problem. Then, applying the problem solving process, it will help to aide with the comeback of the company to a thriving business. To be an effective marketing team it is imperative that the stakeholders are involved and that a plan of action is utilized to research the problems that are identified. The following nine step approach to problem solving by Management-Hub (2012) is an effective tool to assist the marketing department. • Develop a problem statement • Identify the potential cause of the problem • Gather data and verify the likely cause • Identify possible solutions • Evaluate alternative solutions • Determine the best solution • Revise the project plan ...
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...Classic Airlines and Marketing Paper University of Phoenix MKT/571 Classic Airlines is a company that services air travels to its customers along with good customer service throughout the entire experience from the time the customer orders a flight till the time they reach their destination. Rising costs has been one of the main challenges to Classic Airlines. Recently with a 19% decrease in Rewards members and 20% decrease in flights, the firm is losing theirs not only new customers but existing ones as well. Other than budgeting for an expected decrease in business, the firm is also due for a significant change in its marketing strategies to ensure future revenue and avoid the possibilities of bankruptcy. New priorities need to be developed such as highlighting important consumer needs, establishing realistic criteria for finding the appropriate market segments, and developing a relevant feedback system would help the company find problems where the most revenue is generated and enable Classic Airline executives to attack those areas. Based on the current scenario, the firm seems to be suffering from a lack of proper customer relationship management and self identity. CRM is a company-wide business strategy designed to optimize profitability, revenue, and custom satisfaction by focusing on highly defined and precise customer groups (Lamb, Jr., Hair, Jr., & McDaniel, 2006). For example, if Classic Airlines wanted to sustain revenues among its business customers, it...
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