Classic Airlines Marketing Solution
Classic Airline, the world’s fifth largest airline is experiencing marketing problems which are causing the company to lose profit in various facets of the company (University of Phoenix, 2013). Having an understanding of the problems at hand, the company’s Senior Marketing Leadership team has been tasked to come up with a high resolve marketing plan that will help the company come out on top by maintaining satisfied Classic Rewards members, meet the board of directors cost reduction plan, and most importantly increase public trust to invest in company’s stock. Based on the team’s consensus the team has agreed to pursue an aggressive problem solving model that includes a nine-step process: 1) Describe the situation, 2) Frame the right problem, 3) Describe the end-state and goals, 4) Identify alternatives, 5) Evaluate alternatives, 6) Identify and assess risks, 7) Make the decision, 8) Develop and implement the solution, 9) Evaluate the results ( University of Phoenix, 2006). Step 1- Describe the Situation
The first step in the nine-step process model is to describe the situation, and to provide an initial description of the issue opportunity. By describing the situation, it sets the tone to be able to define the “right” problem (University of Phoenix, 206, p. 3). With this said, the problem identified by the Marketing Leadership team is that Classic Airlines has seen a decline in its Rewards program measured at a “19 percent decrease in the number of Classic Reward membership, and 21 percent decrease in flights per remaining member” (University of Phoenix, 2013, para., 3). As a result, there are numbers of frequent flyers that are “jumping ship” to competitor programs offering greater value to the relationship. To add, the Classic Airlines has seen a “10% decrease in share price in the past year.” This has caused both consumer confidence, and employee morale to be on a downward trend (University of Phoenix, 2013, para. 3). Furthermore, with a poor economy, and recipient of negative press concerning the airline industry, “62% of loyal customers surveyed were satisfied with the company, while 68% of the customers confirmed that they recommend the company’s Reward program to a friend of colleague” (University of Phoenix, 2013). With the “problem” identified, there are three members that will need to work closely to make sure that the nine-step process model functions the way it should. CEO, Amanda Miller, and CFO, have biased opinions towards not budgeting for any more marketing solutions. They are in the opinion, that there should be more efforts to a fuel reduction, and other cost reduction programs. Their premise is derived from the board of director’s 15% cost reduction mandate to be achieved within the next 18 months. Both believe that the only way to reach this goal is to place cost reduction programs into effect immediately (University of Phoenix, 2013). On the other hand, CMO, Kevin Boyle’s hypothesis is that the company’s efforts should always be to put the customer first (University of Phoenix, 2013). Kevin is convinced that the solution to Classics Airline’s marketing issues is to bring both Internet, and telephonic customers together through the improvement its CRM platform. By improving the customer service platform, upper management will be convinced with the reorientation that responds to, serves, and satisfies the customer will restore the company’s customer base, and meet the goals of for cost reduction (Kotler, & Keller, 2006). Step 2- Frame the right problem
The second step in the nine-step model process can be interpreted as once the situation is understood, then a preliminary issue is identified, and then with a problem confirmation the opportunity is defined (University of Phoenix, 2006, page 5). This protocol is followed as there is a high probability during this step that there may be an opportunities or challenges that may not be worth it to solve. As a result...
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