Classic Airlines
Running head: Marketing Solution.
Marketing Solutions Archana Vasudevan Marketing, MKT/571 November 26, 2012 Maryanne Conlin
Classic Airlines with a fleet of 375 airplanes and more than 2,300 daily flights, has been one of the Largest airlines in the aviation market. The company had over 8.7 billion dollars in sales with nearly 10 million dollars in profit (University of Phoenix Material, 2010). However, with rising overhead costs and decrease in consumer travel, the company is facing a 10 % decrease in share prices. With the economic slowdown, Classic Airlines needs to analyze critically and identify its internal and external problems to ensure its profitability in a very competitive market.
The first step for Classic Airlines is to define the problem. Classic Airlines is facing high
overhead cost, loss of rewards customers, decline in market share and low employee morale. The
negative publicity from media outlets and Wall Street has resulted in waning consumer
confidence.
The second step is to measure the problem. There has been a 10% decrease in share
prices, 19% decrease in the Classic Reward program and 21% of customers who purchase a
ticket is not found to be boarding the flight ultimately. Classic Airlines need to focus on the loss
they need to make up and focus on going beyond and over the loss. The third step is to establish the goals that needs to be reasonable and can be objectively measured in a timely manner. This will lead Classic Airlines in the right direction and provide a benchmark that can be measured. They need
Marketing Solutions Archana Vasudevan Marketing, MKT/571 November 26, 2012 Maryanne Conlin
Classic Airlines with a fleet of 375 airplanes and more than 2,300 daily flights, has been one of the Largest airlines in the aviation market. The company had over 8.7 billion dollars in sales with nearly 10 million dollars in profit (University of Phoenix Material, 2010). However, with rising overhead costs and decrease in consumer travel, the company is facing a 10 % decrease in share prices. With the economic slowdown, Classic Airlines needs to analyze critically and identify its internal and external problems to ensure its profitability in a very competitive market.
The first step for Classic Airlines is to define the problem. Classic Airlines is facing high
overhead cost, loss of rewards customers, decline in market share and low employee morale. The
negative publicity from media outlets and Wall Street has resulted in waning consumer
confidence.
The second step is to measure the problem. There has been a 10% decrease in share
prices, 19% decrease in the Classic Reward program and 21% of customers who purchase a
ticket is not found to be boarding the flight ultimately. Classic Airlines need to focus on the loss
they need to make up and focus on going beyond and over the loss. The third step is to establish the goals that needs to be reasonable and can be objectively measured in a timely manner. This will lead Classic Airlines in the right direction and provide a benchmark that can be measured. They need
References: Wierenga, B., & van Bruggen, G. H. (1997). The Integration of Marketing Problem-Solving Modes and Marketing Management Support Systems. Journal of Marketing, 61(3), 21-37 Lings, I. N., & Brooks, R. F. (1998). Implementing and Measuring the Effectiveness of Internal Marketing. Journal of Marketing Management, 14(4/5), 325-351. Kotler & Keller. (2006).Marketing management (12 Ed.). New Jersey: Pierson-Prentice Hall University of Phoenix (2006). Classic Airlines Documents. Retrieved from University of Phoenix, MKT/571 – Marketing course website. University of Phoenix (2006). Scenario: Classic Airlines – Company Overview. Retrieved from University of Phoenix, MKT/571 – Marketing course website