CLASSIC AIRLINES MARKETING SOLUTION

Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

Classic airlines have been one of the largest airlines serving over 240 cities and have a fleet of 375 jets with over 2,300 daily flights. Last year the company has grown with 32, 0000 employees and last year the company yielded over 8.7 billion, out of the 8.7 billion in sales, and earned 10 million. Classic airlines have seemed to be very profitable but with the raising overhead cost and the decrease in consumer traveling the company was hit with a 10% decrease in share prices. As the economy is continually to go down, Classic Airlines needs to identify what problem they are having internally and externally in order to get themselves ahead. It would be in the best interest, if Classic Airlines comes up with some basic problem solving solutions. Classic Airlines has seen the decline of customer that have been frequently fling with them the Classic rewards program is down by 19%, Classic Airlines cannot compete with the competitive prices of the other airlines and fuel cost continues to rise. Loyal customer are no longer choosing them for their regular flights the customer has complained and feel the there is a big disconnect between them and the airlines. Classic shareholder has taken note of this and Classic Airlines recognize this in many ways, but the biggest impact on the company has been the drop of sales and share prices. Classic Airlines needs to reconnect with their loyal customers and meet their needs. Not only does Classic Airlines needs to reconnect with their customers they need to pay close attention to customer service and ensure the customer that they are valued. If Classic Airlines takes the step to problem solve and work on the problem then they should be successful.

The first step would be to define the problem. As already mention, Classic Airlines are face with a few problems: loss of sales, decline in market shares, loss of rewards customers and higher overhead cost. Having a general problem-solving process or framework provides leaders with a way to begin understanding and managing a wide range of problems, decisions, or concerns (Hiebert & Bruce, 2001). Using Hiebert & Bruce's model inspired by the Xerox problem-solving process, the first step is to select and define the concern or problem. Classic Airlines has seen a 10% decrease in share prices as consumer confidence has waned and rising costs such as fuel and labor have hit them hard. Employee morale is at an all-time low and coupled with Classic's financial strain the corporate culture is stressed. Classic's Board of Directors has mandated a 15% cost reduction over the next 18 months and this poses some serious challenges for all the departments including finance, human resources, customer service and marketing. From a marketing perspective, Classic is challenged with increasing customer satisfaction and loyalty, while simultaneously decreasing expenditures.

During this first step, a key question to ask is “of all the things competing for your attention, which will ...