Classic Airlines Marketing Solution

Classic Airlines Marketing Solution - RUNNING HEAD: Classic...

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RUNNING HEAD: Classic Airlines Marketing Solution 1 Classic Airlines Marketing Solution Kisanka Williams MKT 571 February 15, 2011 Dr. Jonny Morris Marketing Solution
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RUNNING HEAD: Classic Airlines Marketing Solution 2 Today there have been many changes within the airline industry, some of these changes started with 9/11, since 9/11 airline profits has decrease significantly; additionally, the economic downturn has cause many consumers to travel less, the cost of fuel has increase in which it cause the prices for airlines ticket to be increase. Last, in order for airlines to make-up for profit loss several airlines are now charging baggage’s fees along with several other hidden fees within the price of the ticket. The current recession has not excluded Classic Airlines. Classic Airlines reward program is suffering, the program has experience a 19% decrease in the number of members and a 21% decrease in flights among its current reward member. Classic marketing department need to make an effort to increase customer sales and volume. At this point, the question is what changes do Classic Airlines needs to make to increase these numbers? For Classic Airline to become a profitable company again there are internal and external factor that has to indentify, and they need to be address during this economic downturn. The first step to Classic resolving both the internal and external factor to Classic airline crisis, the airlines need to hire an out marketing data collecting agency to collect all data needed to help reestablish the company. Classic Airlines is the fifth largest airlines and command fleet in excess of 375 jets that serve 240 cities and more than 2,300 daily flights. Classic also manage a staff of nearly 32,000 employees. The airline has managed to remain profitable over the past years. The airlines earned $10 million on $8.7 billion in sales; however with rising overhead costs Classic Airlines is experiencing setbacks. Classic share prices have decreased by 10% in the past year. Furthermore, with the negative publicity from Wall Street, the media, and the public, the airlines have encountered a continual decrease in employee morale. Due to the downturn within the company, Classic Board of Directors have insisted on a 15% cost reduction over the next 18 months
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RUNNING HEAD: Classic Airlines Marketing Solution 3 (UOPX, 2011). The first area that needs improvement is Classic Airlines Reward program. By redeveloping the reward program will help to bring in new customers and to maintain current customer base. The primary goal for the marketing department to Classic Airlines is to increase the stock value, improve tickets sales, customer volume and satisfaction; however, the 15% cost reduction will become, and obstacle the marketing department will have to overcome. By employing resources already within the airline Classic can design a marketing campaign to improve the current reward members’ need as well as reach out to customers both old and new with a new
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This note was uploaded on 03/18/2011 for the course MKT 571 taught by Professor Jonnymoris during the Winter '11 term at University of Phoenix.

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Classic Airlines Marketing Solution - RUNNING HEAD: Classic...

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