Classic Airlines Marketing Solution 1
Classic Airlines Marketing Solution University of Phoenix MKT/571 June 15, 2010
7 billion and out of the 8. Classic can not compete with the competitive prices of the other airlines and fuel cost continues to rise. Employees feel that their job is in jeopardy and this is reflecting the
. Loyal customer are no longer choosing them for their regular flights the customer have complained and feel the there is a big disconnect between them and the airlines. Classic airlines have seemed to be very profitable but with the raising overhead cost and the decrease in consumer traveling the company was hit with a 10% decrease in share prices. loss of rewards customers and higher overhead cost. It would be in the best interest if Classic Airlines comes up with some basic problem solving solutions. Last year the company has grown with 32.Classic Airlines Marketing Solution 2 Classic airlines have been one of the largest airlines serving over 240 cities and have a fleet of 375 jets with over 2.300 daily flights.0000 employee’s and last year the company yielded over 8. As the economy is continually to go down Classic Airlines needs to identify what problem they are having internally and externally in order to get themselves ahead. Another issue that Classic Airlines is face with would be the low employee morale. Not only does Classic Airlines needs to reconnect with their customers they need to pay close attention to customer service and ensure the customer that they are valued. 2010). Classic Airlines has seen the decline of customer that have been frequently fling with them the Classic rewards program is down by 19%. Classic shareholder have taken note of this and Classic Airlines recognize this in many ways but the biggest impact on the company has been the drop of sales and share prices. decline in market shares. As already mention Classic airlines is face with a few problems: loss of sales. If Classic Airlines takes the step to problem solve and work at the problem then they should be successful.7 billion in sales and earned 10 million (University of Phoenix Material. Classic Airlines needs to reconnect with their loyal customers
and meet their needs. The first step would be to define the problem.
quarterly or semi-annually. The Board of directors has issued a mandatory across the board 15% pay cut for all departments. Classic Airlines needs to put the Classic Rewards full speed make necessary changes to the program to get existing customers back and gain new customers to the program. The goals will lead Classic in the right direction give them a benchmark to reach that can be measure.Classic Airlines Marketing Solution 3 productivity of the work. Once classic airlines have all of the data
then they can measure the problem and they can focus on what they need to work on. In order for Classic Airlines to
. Classic Airline knows that there is a 10% decrease in the share prices. The third step would be to establish the goals. The Classic Reward program had a 19% decrease many of the loyal customers are not longer flying or going to with competitors. They need to get the 10% back and try to go over the 10% as much as they can. It would be in the best interest of Classic Airlines to focus on the loss they need to make up first then focus on going beyond and over the loss. They need to get customer satisfaction up have the customer feel that they are the reason Classic Airlines is in business make the customer feel like they are the only person flying the airlines. Set goals in profits and compare these goals to last years profits the goals should be set higher this year and the goals can be stretched out throughout the year in order for them to have higher profits. Classic Airlines needs to make sure that customers that buy a ticket go fourth and get on the flight 21% of the customers that purchase tickets were not on the descending flights. Classic Airlines needs to set goals in the Classic Rewards program get the percentage back that they loss and get the “refer” a friend program up. In order for Classic airlines to be competitive in the market they need to measure the profits they have made with the profits of the other airlines. The goals set need to be reasonable goals and can be measure monthly. The second step would be to measure the problem.
The negative reports from wall streets cause employee’s to be worried about their job which reflected on how they worked. The fifth step would be to select the best strategy. The fourth step would be to determine the root of the cause.Classic Airlines Marketing Solution 4 know if these goals are met they can check the monthly Classic Rewards reports and compare the reports to last year and analyze where they stand. The 15% across the board pay cut caused the marketing and other departments to spend less which made it difficult to market the reward program. Offer rewards to the employee’s who go over and beyond with the customers. One of the problems Classic Airlines is facing is low employee morale this corporate culture is having a big impact on the company. How did Classic Airlines get in this position in the first place? After September 11th many customers felt unsafe to fly which hurt the airline industry. The Classic Rewards program must show some type of profit in order for this goal to be met. The locked in fuel prices for the year save the company 12% but if they want to revamp the rewards program the need to do this without the department needs to figure out a way to do it without spending more money and keep production up. Customer satisfaction dropped and customers were no longer happy with the way Classic Airlines were handling their concerns and issues. High labor cost and high fuel cost were the cause of Classic Airlines to be unable to compete with other airlines and with the customer that were frequent fliers. Now that Classic Airlines have listed the root causes of the problem they can figure out the best solution plan accordingly to solve the problem. Acknowledge each
. The company needs to work in boosting the employee’s morale ensure them that they are working on getting the share prices up. Make it a point to let them know that in order for this to happen it needs to start with each employee. Many of the airlines felt that the downfall would take a quick turn which was not the case (University of Phoenix Material 2010).
This is the time for the marketing department to shine show how the new customer based Classic Rewards program will get the company ahead and get them back on track to making the profits and getting the cost of the shareholders price back up. Offer the customers that have canceled flights on their competitor’s airlines to purchase full price tickets with them and offer them double rewards for making the purchase. It is in this step where Classic Airlines would create an action plan. The sixth step would be to implement the best strategy. This is the time where the board of directors can view the customer surveys and read what the customers do not like and what they want from the company. In order for the share to go back up in price the market department will need to figure out a way to get existing customers and new customer to fly.Classic Airlines Marketing Solution 5 employee who receives a customer satisfaction card back with high marks. When Classic gets to this step they will evaluate how effective the solution is and if the goal from the solution has been met. The seventh step would be to evaluate the results. This is where the board of directors will see the competitor’s similar programs and Classic Rewards programs. This action plan will show the company board members what is taking place. In
. Not only will this show the board of directors how Classic Rewards is different but also show them what the other airlines are offering their customers. This can be accomplish in many ways the first way would be to get the Classic Rewards program up. They will see how Classic Rewards programs is better then the competitors program and why Classic Reward program will succeed. It is the goal of Classic Airline to make sure the customer is satisfied when they fly Classic Airlines. how it will happen. Not only does Classic need to offer a similar program but the benefits need to be better. and the time it will take to see results. Offer special discounts different times of the year for example offer something extra during the month of the rewards customer birthday.
This step can be done on the early stages or in the late stages. If they do not catch it early on then not making the change can cause them not to meet the goals. During this step they will be able to recognize if the changes they make actually work and if the customers are satisfy.Classic Airlines Marketing Solution 6 order for this to work Classic Airlines will have to create reports along with current reports and measure the results. During this step Classic Airlines will review the previous steps figure out what is working and what needs to be changed. The shareholders price of the current year needs to be compared to last year price. This is where you can also show the employee’s what areas are working and what areas need improvement. Changes can be made in the early stages if they see that certain changes are not working or if other changes made can benefit them. New customer surveys cards will be reviewed and compared to last year surveys. It would be in the best interest of Classic to make big changes early on this way they have enough time to see if these stages work for them. During this stage Classic Airlines can determine if they are on target with meeting their goals if they are not on target then they would need to follow steps 4 through 7. The ninth stage would be continuous improvement. This is a really important stage if something that is not working for Classic Airlines is caught early enough then it can be changed and the company can benefit. An example of this could be internet access during the flights. The eighth step would be to make any changes. Monthly meeting can be held to ensure that the employees are happy and any questions or concerns are address. Compare the current customer survey with the previous customer survey. During this stage Classic will set up an ongoing system to continue the work and ensure that the company is having success. This is the step where the departments can get feedback from the customer and make small changes in order to keep the customers pleased. This feature is new so many customers may have only thought about having it but never
. Once they have the satisfaction from the customers and the surveys come back with high marks they will no longer need to have the 15% across the board pay cut. Once the revamp of the rewards goes into full effect more customers will come back to Classic Airlines. Little improvements such as this could keep the Classic Rewards customer satisfied and keep them fling with the airline.
Reference: Kotler. Now that other airlines have the technology Classic Airlines can add certain flight with internet access. K. Classic Airlines has been face with many challenges. The success of the company can not happen without the customers but the customers first impression is with the employee so behind the success of the company is their employees. If they use the 9-Step problem method they recognized all of the core problems to being where they are now.Classic Airlines Marketing Solution 7 thought it would be possible. Classic airlines now have come up with solutions to fix these problems and figure out if the solutions are working. (2006) Marketing Management 12th Edition
. I am certain if Classic follows the programs and makes all of the necessary changes they will come out on top again. They have been face with not only internal and external challenges but also with economic challenges. & Keller. This is where you can keep the employee’s in the loop of things showing them the progress and how close they are to getting their 15% back. Make sure the employee’s morale is up make sure the employee’s are happy with their job and offer them extra benefits for excellence service. P. One of the main forms of marketing is word of mouth so once a loyal customer tells another person about their experience then it will have a domino effect.
.spcforexcel. LLC (2004) Problem Solving Model http://www.Classic Airlines Marketing Solution 8 BPI Consulting.