CLASSIC AIRLINES

Proposed Solution for Classic Airlines

Abstract

Classic Airlines has been offered a marking alliance opportunity that would integrate all customer-facing elements to improve the customer experience. This restructuring could help Classic Airlines be successful under extreme global competition. Members of airline alliances can advertise their partnerships and generate loyalty. This alliance could set them apart from other airlines and draw customers into their rewards program. In this paper, we try to focus on the classic Airline. The Guidelines & Specifications for the paper analyzes the current situation at Classic Airlines (CA). Focus on challenges, opportunities, external and internal pressures on marketing. The paper develops at three SMART end-state goals. The paper also highlights the objectives and obstacles of the marketing department, and discusses the marketing resources available to resolve the issues presented. The paper also analyzes current situation at Classic Airline (CA). The paper also includes benchmark and what two other companies are doing to address similar marketing situations. The paper write few recommendations by applying benchmark into to Classic.

Proposed Solution for Classic Airlines

Analyzes

Challenges

There are several financial challenges facing Classic Airlines. The first challenge is time limit and budgetary constraint. The CEO and CFO will need the preliminary strategy in 3 months, and must see results during the next 18 months. If this is not achieved, internal gossip indicates the threat of bankruptcy. Additionally, due to the current price war between competitive airlines, the ticket fares cannot be lowered any further and the labor union contracts cannot be altered.

Classic Airlines' customer loyalty program membership is down 20% from last year, which is equivalent to 160,000 customers. Of the retained frequent flier members, many of them are still choosing other airlines. Based on the call center's feedback, there is strong indication that the customers are disconnected. Classic Airlines needs to reconnect to the needs and wants, but above all, they need to recognize what they value (Coyles, 2005).

External Internal Pressure

There are two major issues in the internal company environment: (1) internal communication and (2) the insufficient use of the CRM system. Communication between the Executives and Management is not an “open door”. There is a difference of opinion regarding the direction the company should take - a passive versus an aggressive approach to marketing. The CEO and CFO are not sold on taking an aggressive approach to marketing and customer service, when it is clear from the feedback from management and staff that something needs to be done to serve the needs of the customers. The CRM system in place is currently being under-utilized. The CEO and CFO do not want to dedicate more resources to this, but the tools and potential for excellence in customer service possible when using CRM are worth the effort.

Problem Statement

In an unstable industry, Classic Airlines has an opportunity to become a leader in its industry. There is a growing need for an effective marketing campaign that can cater the needs of the modern day and an efficient CRM system, that creates a ...