Classic Airlines Marketing Solutions
May 22, 2010
University of Phoenix
Describe the Situation
Customer confidence is decreasing as well as Classic Airlines’ Rewards Program which is causing a strain for the company. Due to rising costs in labor and fuel costs, Classic Airlines has not been able to keep up with its competitors. Classic Airlines is facing a 15% across-the-board cost reduction over the next 18 months (University of Phoenix, 2010). Classic Airlines can turn its problems into opportunities through carefully defining the situation and figuring out how solves these problems with the best solutions. Classic Airlines could examine frequent travelers who expect better service than they might receive on competing airlines and focus more directly on these customers. This would help Classic Airlines increase customer confidence and profitability. This could be done without incurring additional cost, keeping in line with cost reduction and the challenge to do more with less (Kerin, 2006). Frame the “Right” Problem
Classic Airlines should hold its current position by creating customer confidence and loyalty along with improving profitability. This will enable Classic Airlines to become financially stable through growth opportunities, changing of the marketing strategy, and meeting the needs of the customers. Describe the “End-State” Vision
Classic Airlines’ reward program should be revised to re-gain customer loyalty by partnering with another airline. Classic Airlines will address the problem by developing a Customer Relations Management program without causing too much debt. Identify the Alternatives and Benchmarking Validation
For every problem an organization faces there will be many solutions available from which to choose to solve the problem. An effective tool used by many organizations to identify potential solutions is benchmarking. Benchmarking allows an organization...