Classic Airlines Marketing ProblemIn today’s economy organizations must maximize growth and profitably margins when focusing on strategic marketing plans. Based in the United States Classic Airlines has a major presence in the airline industry. Currently facing organizational marketing issues that are external and internal the airline has yet to satisfy the demands of their stakeholders and target markets. Current issues have left the company with poor sales and reduced profits. In efforts to regain, attract and build sales profits the airline will have to make some major changes in their marketing strategies. By developing a marketing plan the airline will be able to establish key components of an effective plan that will allow them to better understand the target’s needs wants and demands (Keller & Kolter, 2006, para. 22) . By understanding these basic components the airline can better establish products that will generate a profit, while satisfying the desires of their consumer. By fitting the needs, wants and demands of the consumer the marketing department will have better positioned themselves to understand future desires for potential products (Keller & Kolter, 2006, para. 48)
By addressing the challenges and establishing long-term objectives marketers can better forecast market potential and future demands. Their strategy will need to consist of three basic components such as a Marketing analysis, Marketing objectives and Strategies and Implementation and controls. With these components in place the airlines marketing department can identify service needs that will help organize organizational goals. Conducting a SWOT analysis will help Classic Airlines evaluate the companys overall strengths, weaknesses, opportunities, and threats in the company’s external and internal marketing environment (Keller & Kolter, 2006, para. 32). To find new opportunities to reconnect with their customers Classic Airlines must offer better incentives for flying and
a more comprehensive SWOT approach’ a product strategy is a great way to build trust, learn and grow relationships. This program also strengthens the relationship between customer and airline. Classic has a history of helping with outreach and other strategic communications. An airline can build its relationship with a new customer in one of two ways:
The airline must make new changes to its internal marketing campaign at least 14 weeks in advance—at least 50% of the time—to get the customers it has been working with to trust their decision, and then offer a replacement. This is important for both companies but also for the individual customer—where a change is a matter of when and how.
The airline may use this information to target its existing, core business and build out its internal marketing campaign—but this has the advantage of being able to use that information to build better relationships. This program also helps in building customer relationship, but also in helping to recruit the best team in a new company.
It is also helpful for the airline to explain the reasons why a brand would be better off if it was targeted specifically, so that customers may have an easier time adjusting to the new brand.
The airline also has a great opportunity to gain insight into the reasons why one airline chooses a new business model such as JetBlue that allows it to target its existing customers more effectively and at lower cost. This is critical to establishing a greater understanding and success of both airline and brand marketing efforts (Keller & Kolter, 2006; Keesmaeker, 2005; Zuckermann Loe Fisher, 2004, p. 13). Although neither airline’s existing business model is well prepared for the new new business model, if both companies did this program, then a simple and easy-to-apply program would be a great approach as it would be different from the old strategy of targeting a new business model instead of targeting a single company.
In addition, as mentioned, Classic Airlines is part of the airline family, so it allows the airline in the first place to acquire the necessary technologies and products that it needs to become a truly successful airline. A simple approach, which has already been used in the United’s successful redesign of the AirAsia program, and will be applicable in other industries as well, will also help simplify and minimize the amount of time that it costs to develop a new company with AirAsia. A basic SWOT program can lead to a new company being launched early, but without any need for many more cycles ahead. This will improve the airlines experience in various areas, and will allow them to invest more time to promote their new product.
As illustrated in Figure B-1, Classic Airlines will build a more active, sustainable, and proactive internal marketing strategy, with the goal of driving up the airline’s own revenues over time. The airline will not continue to buy and sell its brands in the market—as it has done every year and will continue to do so for over 25 years. Classic Airlines will not engage in a policy of hiring and firing any employees because it has no intention of doing so over time. Instead, in a SWOT, Classic will engage in the following strategies to