Classic Airline Marketing Solution

Classic Airline Marketing Solution - Running head: CLASSIC...

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Running head: CLASSIC AIRLINE MARKETING SOLUTION 1 Classic Airline Marketing Solution Karen M. Gandy MKT 571 May 2, 2011 Meraj Khan
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CLASSIC AIRLINE MARKETING SOLUTION 2 Classic Airline Marketing Solution A few marketing approaches exist that Classic Airlines (CA) could use to adjust to recent struggles in the economy. Possible marketing approaches are internal, external, and a holistic marketing approach. Classic Airlines needs to approach a marketing solution by using the Nine- Step Problem Solving Model. Example provided in classroom forum week three shows the problem solving model steps are "1) Describe the situation, 2) Frame the right problem, 3) Describe end state and goals, 4) Identify alternatives, 5) Evaluate alternatives, 6) Identify and assess risks, 7) Make the decision, 8) Develop and implement the solution, and 9) Evaluate results" (Khan, 2011). Marketing Obstacles Before the problem solving can begin identification of obstacles to achieving the marketing solution needs to be identified. First obstacle is CA cannot slash flight cost any further if they want to remain a valid competitor. Second obstacle consumer satisfaction is low and the company's current Customer Relationship Management (CRM) system is not focused on customer satisfaction and last, the Board has mandated a 15% reduction in costs over the next 18 months without decreasing flight cost to avoid bankruptcy according to (University of Phoenix, 2011). Although there are obstacles CA can turn these into opportunities. As CA analyzes the three obstacles the company can create improvements. Classic Airlines first order of business is to assess the current situation. Nine-Step Problem Solving Method Current Situation Classic Airlines has been in business for the past 25 years and currently operate 375 jets and service 240 cities. The company has grown to 32,000 employees and in the last year earned
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CLASSIC AIRLINE MARKETING SOLUTION 3 $10M on $8.7B in sales (University of Phoenix, 2011). Because of current state of the economy CA along with other airlines are faced with rising overhead costs, particularly fuel and labor, along with changes in consumer spending, and consumers increased concern on travel and airline security. Classic Airline is a publically traded company. Because of recent concerns with current economy they have seen a decrease in stock prices. Along with decreasing stock prices they have also experienced decreases in share prices by 10% and a 19% decrease in number of members in the reward program. With a decrease in the number of reward members there has also been a 21% decrease with current members booking flights with CA. It may appear that CA's current position can be seen as bleak but framing the right problem will help advance them into the future. Frame the Right Problem
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Classic Airline Marketing Solution - Running head: CLASSIC...

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