WK 1 MKT 571
University of Phoenix
Classic Airlines is the fifth largest airline carrier in the world with 375 airplanes that service 240 cities with more than2,300 flights each day. Since its inception 25 years ago, Classic Airlines has more than32,000 employees. Last year the company had a net income of 10 million dollars (Classic Airlines, 2010). Current challenges
Although the company is making a good profit, it has also encountered some major challenges. The downturn in the economy has caused net income to decrease. This year the company had a net income of $10 million, however; the previous year had a net incomeof $71 million. The company has experienceda 10% decrease in share prices. Classic Airlines has the highest labor cost in the industry (Classic Airlines, 2010). These challenges has caused employee morale to hit an all time low. Classic Airlines is in the process of solving their current challenges and evaluating their current position in the marketplace. Product and services marketed and marketing concepts
Classic Airlines needs to have the netprofit increase each year. This can be accomplished by developing an effective marking plan. The marketing plan should be centered on increasing passenger activity by rewarding its current customers and enticing new customers. The marketing plan should select potential markets and getting, keeping, and growing new customers by delivering superior customer value (Kotler & Keller, 2006). Classic Airlines should continue performing customer surveys. Through these surveys the company can obtain valuableinformation on how to keep existing customers and obtain new ones. These surveys can be a tool that can assist Classic Airlines implement their new marketing plan. Through these surveys the company and determine what services should be offered. Current corporate culture
Classic Airlines has a mixed culture. They pay their employees top salaries,while...