Classic Airlines Marketing Solution-Mkt 571

Classic Airlines Marketing Solution WK 3 MKT 571 University of Phoenix Abstract Presently Classic Airlines is one of the largest airline carriers in the world. Last year the company had a net income of $10 million dollars on operating revenues of $8.7 billion. The year before the company had a net income of $71 million on 8.5 billion of operating revenues (Classic Airline Scenario, 2010). The net income has decreased $61 million in one year. One of the reasons for the huge decrease in net profit is because of marketing strategies. The company needs to take three stepsto turn the company around. First it needs to analyze the internal and external pressures that has created the present crisis. Second it needs to formulate a problem-solving method, and third it needs to apply the problem-solving method to the current crisis. Analyze current situation {draw:frame} Rising costs, particularly of fuel and labor, have limited Classic Airlines to compete for the valued frequent fliers (Classic Airline Scenario, 2010). To protect the company from possible bankruptcy, a 15% cost reduction has been implementedover the next 18 months. Each department will have cuts, with marketing hardest hit at 21.5% reduction versus sales and operations at 11.5% (Classic Airline Scenario, 2010). The following shows the cost reduction goals by department (Classic Airline Scenario, 2010). To make sure Classic Airlines does not go into bankruptcy, the marking department needs to focus on three issues. First, the internal and external pressures causing the decrease in net income needs to be identified. A plan to decrease or eliminate the identified internal and external pressures needs to be formulated. Second, the challenges of the marketing department needs to be solved. The third and final step is to formulate financial strategies by examining possible available resources and other airline 's marketing solutions. Internal and external pressures Classic Airlines is

References: Classic Airline Scenario, 2010. _University of Phoenix materials-Classic Airlines Exhibit B. _ (2010_). _ Retrieved on March 22, 2010 from University of Phoenix, Resource, MKT/571- Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Classic Airline Scenario, 2010. _University of Phoenix materials-Classic Scenario: Classic _ Airlines.(2010_). _ Retrieved on March 22, 2010 from University of Phoenix, Resource, MKT/571- Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Haughey, D. (2010). Smart Goals. Projectsmart. Retrieved March 23, 2010, from: http://www.projectsmart.co.uk/smart-goals.html Kotler, P. Keller, K. A framework for marketing management, 3rde. (2007). Prentice Hall. Retrieved on March 23,2010 from University of Phoenix, Resource, MKT/571-Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Problem-Solving Model, 2010. BPI consulting. Retrieved on March 24, 2010 from: http://www.spcforexcel.com/problem-solving-model