The product offered by Classic Airlines is a service. Though different facets make up the product offered, it boils down to a service to the consumer to move him or her from one place to another in a cost-effective and pleasant manner. Classic must find a way to provide this service in this manner and still produce a profit or the company will likely go under.…
University of Phoenix (A). (2012). Scenario: Classic Airlines. Retrieved from the University of Phoenix MKT 571 Marketing E-Resource Link.…
“The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007, with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008, Southwest reported record quarterly revenues, its 69th consecutive quarter of profitability, rising passenger traffic on its flights, and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King, along with Herb Kelleher, launched the most surprising success story in airline history. In 1966, King had an idea. “His business concept for the airline was simple: attract passengers by flying convenient schedules, get passengers to their destination on time, make sure they have a good experience, and charge fares competitive with travel by automobile.”5…
Question: Explain how and why the message and each of the four (4) promotional mix elements used by an airline would differ if the target audience were:…
There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website, but they now also have the ability to compare everything regarding the flights from plane types, durations, layovers, connecting flights, additional fees and fares on independent travel booking sites such as Travelocity and Expedia; with multiple carriers listed side by side. For this reason, United Airlines has no choice but to implement a strategy involving their marketing which creates a positive view of the United brand. The textbook defines strategy as “an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage” (Hitt, Ireland & Hoskissin, 2011).…
Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. “United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers” (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged United Airlines. It will cover all elements of a marketing plan such as the company overview, executive summary, target market, competitors, product and services, and location. It will also go into detail of the marketing budget, pricing strategy, and the summary and implementation plan for the company.…
Classic Airlines in an airline company that has been in business for over 25 years and has gained great success within the airline industry. In the 25 years since its creation the company has grown to over 32,000 employees and has generated 10 billion dollars worth of business. Although the company has seen great success, it also is subjected to the many challenges that other airlines companies face in today’s market. Classic airlines must be able to market its product so that customers will pick there product over competitors within the industry (University of Phoenix, 2012).…
The following is a case study of an airline called Pegasus founded in 1989 in Turkey, which has already been flying for over 20 years and is Turkey’s most established private airline. It experienced financial crises a couple of times since it was created but yet, it won about a total 4.4 million passengers in 2008 because it was known as a low-cost airline. The key to its success is the fact that Pegasus Airlines makes sure it is continually developing to meet customer expectations and priorities that is why it refers to itself as the “DELIGHT TRAVEL” airline.…
* Customer service oriented (i.e. leather seats with more legroom, in-flight entertainment, better refreshments than competition)…
Delta Airlines Board of Directors Presentation October 18, 2013 Consultants: General Overview of Delta Airlines Strategy DELTA’S CURRENT STRATEGY COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing, but still below cost of capital Consolidation trend has reduced rivals helping profits Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled bag to address customer satisfaction RECOMMENDATIONS • Trainer refinery: mitigate risks for success. • Customer satisfaction: domestic differentiation strategy and international best in class strategy…
Classic Airlines is up against not just one challenge but several challenges they need to deal with. Unfortunately travel has decreased as a result of uncertainty with regards to flying; this has forced the stock prices to be reduce decreasing the price of a share of Classic Airlines stock by 10% over the previous year. The negative messages being conveyed by Wall Street and the media is bringing employee morale down to an all time low. Consumer confidence in the airline has resulted in a 19% decrease in Classic flight reward members which in turn has decreased flights by loyal members by 21%.…
Through PESTEL analysis, identify the major external environmental drives influencing the airline industry. Since the end of the case (2003), to what extent have these driving force changed?…
Nowadays, companies should decide to always manifest effective customer-centricity philosophy, building a strong internal marketing culture and enhancing the market’s influence on other entities throughout their organization. This will set the stage to inform them of how and when the time is right to make the necessary changes for the survival and growth of the business. Huffman Trucking is a trucking company in the services industry, which has been experiencing diminishing growth over the past years. The organization needs to improve its overall position in the industry. Huffman’s CEO, Phil Huffman, has determined that a customer-centric strategy is what his organization needs to improve growth and achieve the top position within the trucking industry. In order to ensure Phil’s strategy is successful a proper evaluation must be done to determine the organizations’ current marketing strategy and in addition determine the sustainability of the proposed strategy and the overall benefit to the organization.…
References: Banstetter, T. (2003, Nov. 13). Spike in Delta Airlines Pilot Retirements Will Widen FourthQuarter Loss. Knight-Ridder Tribune Business News. Banstetter, T. (2003, Nov. 21). Delta to Launch Its Own Discount Airline. Knight-Ridder Tribune Business News. Corridore, Jim. (2003, Sept. 25). Standard & Poor’s Industry Surveys Airlines. New York: The McGraw-Hill Companies. Ehrhardt, Michael and Brigham, Eugene. A Focused Approach: Corporate Finance (pg. 173) Holloway, Stephen: Airlines- Managing to Make Money. Mullin, Leo. (2003, March 12). Delta Airlines 2002 Annual Report. Will, George F.: The Turbulence in the Business Rattles Airlines and Unions http://www.sunspot.net/news/opinion/oped/bal-op.witcover21sep21,0,155526.column?coll=baloped-headlines http://www.baselinemag.com/article2/0,3959,1013642,00.asp http://businessmajors.about.com/gi/dynamic/offsite.htm?site=http://biz.yahoo.com/p/d/dal.html http://www.marketwatch.com/tools/quotes/detail.asp?view=detail&symb=DAL&siteid=yhoo&di st=yhoostoryquote http://www.nytimes.com/2003/11/17/national/17ECON.html?ex=1155445200&en=e110f030f870 3c37&ei=5035&partner=MARKETWATCH http://www.newstream.com/us/story_pub.shtml?story_id=11366&user_ip=66.21.238.200 http://www.delta.com/inside/investors/forward_info/index.jsp http://www.veracast.com/ssb/2003/transportation/87202119.cfm http://shopping.capelinks.com/mall/stores/delta-airlines.shtml http://www.computerworld.com/mobiletopics/mobile/story/0,10801,82389,00.html http://news.bbc.co.uk/2/hi/business/2957013.stm http://www.airportnet.org/depts/federal/press/articles/1014wsj.htm…
Southwest Airlines prided themselves on their commitment to customer service and equality by offering a streamlined business model with an emphasis on simplicity and efficiency that has remained the same for the most part since the airlines’ inception in 1967. At the time of the case study, Southwest had been profitable for the past 28 years, an achievement many airlines are incapable of boasting due to the volatility of the airline industry. One of the unique policies that Southwest employs is their ‘single-class service,’ where seats are not assigned, and those who check in first board the plane first and have their pick of available seating. In order to improve and maintain customer retention, Southwest built up brand loyalty by consistently offering the lowest flight rates and building relationships between repeat customers and staff. This worked for the most part, however in recent years the airline industry had become more competitive, with more airlines taking low-cost strategies in an attempt to attract a wider array of customers, particularly those of the price-conscious variety. With this change, Southwest suddenly had an increase of competitors who were charging similar prices but offering tiered seating options and amenities that Southwest’s egalitarian strategy lacked. While casual customers had no problem with continuing to use Southwest’s simple and cheap services, frequent fliers began to feel as though their consistent patronage was underappreciated when compared to other airlines’ frequent flier privileges. Southwest’s main dilemma was in determining the steps that should be taken in order to maintain their egalitarian strategy that had been a staple of the brand and its core values since its beginnings, while also keeping their frequent fliers satisfied and ensuring their continued patronage (customer retention).…