Classic Airlines and Marketing
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Running Head: Classic Airlines and Marketing
Classic Airlines and Marketing
Christy Harrell
Marketing/MKT571
June 25, 2012
Jason Schaefer
Abstract
As one of the worlds fifth largest airline, Classic Airlines, has had a very successful organization from the past 25 years of their operation the organization. The company has grown to over 30,000 employees and earned $10 million on $8.7 billion in sales (Classic Airlines, 2006). However, the company is now experiencing a road block in their success. Due to the downfall of the economy, Classic Airlines has seen a decrease in the company sales. Within the past year, the share prices have decreased by 10%. Because of the negativity generated from Wall Street and the media, it has taken a toll on the morale of the employees in addition, affected the confidence of the consumers. Classic Airlines reward program is suffered a 19 percent decrease in the number of Classic Rewards members and 21 percent decrease in flights per remaining member. In order to prevail over the financial crisis and prevent bankruptcy, the Board of Directors recently gave the authorization for Classic Airlines to work on developing a marketing strategy to help increase the contribution of the Classic Rewards program. The company has an 18-month window in which, they must implement a 15% across-the-board cost reduction plan.
Classic Airlines and Marketing
Classic Airlines must really focus on creating a plan where they can help increase the profit of the organization. A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives (Kotler and Keller, p. 60, 2006). The marketing plan is one of the most important outcomes of the marketing process. Classic Airlines can use the marketing plan by issuing surveys to get the feedback of the customers. The information provided by the customers will give the company the consumers insight on how the company can improve its service and learning the ways they can gain new customers and keep the current ones.
Company Culture
The various departments within Classic Airlines are not on one accord concerning in meeting the needs of the customers. The Classic Rewards Program is considered the key item in retaining and gaining customers, however, senior management does not view marketing as being a