Classic Airlines marketing Solution

Table of Contents

STEP 1: Describe the Situation2

STEP 2: Frame the “Right” Problem3

STEP 3: Describe the “End-State” Goals4

STEP 4: Identify the Alternatives4

STEP 5: Evaluate the Alternatives:6

STEP 6: Identify and Assess Risks7

STEP 7: Make the Decision8

STEP 8: Develop and Implement the Solution8

STEP 9: Evaluate the Results9

Summary10

References11

Classic Airlines Marketing Solution

Classic Airlines, the fifth largest airline in the world, having more than 375 jets in its fleet, serves 240 cities with daily flights over 2,300. Classic Airline has grown to the extent that it houses 32,000 employees.

The airline industry after 9, 11 saw a decrease in air travel. But even this did not stop the escalating prices of fuel. This has resulted in an increase in expenses for the companies. The Classic Airlines seem to have committed mistakes in estimating the reversal of trend towards air travel after the 9, 11. The decision to expand its operation has not been proven as the wise decision, as it had increased fixed and overhead costs for the company and idol capacity for which the profitability is traded off every signal day. Investors keep keen eyes on the company and often give negative comments from the media and public, and it affects the employee morale (Scenario: Classic Airlines, 1989).

The company had profits of US dollar 10 million in 2004, as compared to $71 million in 2003. This is the start of problems, or we can say the result of problems. The underlying problems, their causes, their effects and their solutions will be the focus of this paper.

We will use the nine step model for problem solving (Kaplan, et al., 1989). It includes the following stops:

STEP 1: Describe the Situation

STEP 2: Frame the “Right” Problem

STEP 3: Describe the “End-State” Goals

STEP 4: Identify the Alternatives

STEP 5: Evaluate the Alternatives

STEP 6: Identify and Assess Risks

STEP 7: Make the Decision

STEP 8: Develop and Implement the Solution

STEP 9: Evaluate the Results

STEP 1: Describe the Situation

The Airline Company is restrained by various pressures, from legislators to media scrutiny. Adding to these difficulties in Classic Airlines, is that unlike budding airline companies it faces the burden of idle capacity resulting from overestimating the demand of air travel after 9, 11.

Today, the focus is on customer satisfaction, integrating the functions of organization and delivering greater value to customers. Today, the competition is not between products but between brands.

It takes much more resources to bring in new customer to the company as compared to retaining the existing ones. The concept of value is that the product itself does not satisfy a customer but rather the complete experience of obtaining and using the product (Kotler, Keller, 2006).

The holistic marketing helps capture the customer value. It suggests, that the processes of value exploration, value creation and its delivery should be integrated in a manner so as to provide mutual benefits and profitable long term relationship with the customers (Kotler, Keller, (2007). Never forget that, the more years of satisfaction add in customer memory, the more likely it is that he/she will become and stay loyal to ...