Classic Airlines and Marketing Paper
Running head: CLASSIC AIRLINES AND MARKETING PAPER
Classic Airlines Marketing Plan
MKT 571/Marketing
Classic Airlines is up against not just one challenge but several challenges they need to deal with. Unfortunately travel has decreased as a result of uncertainty with regards to flying; this has forced the stock prices to be reduce decreasing the price of a share of Classic Airlines stock by 10% over the previous year. The negative messages being conveyed by Wall Street and the media is bringing employee morale down to an all time low. Consumer confidence in the airline has resulted in a 19% decrease in Classic flight reward members which in turn has decreased flights by loyal members by 21%. The rising cost of fuel and labor as a result of economic times is preventing Classic from competing to regain its lost customers. In an attempt to balance out their financial loses and cut down on any further financial crunches, the board of directors is mandating a 15% cost reduction but expects the marketing strategies to be beefed up to bring in more profitable return on investments of the frequent flyer program. This plan is being put into action to prevent bankruptcies of the airlines. Classic Airlines needs a begin with their business mission then move on to a strategic plan. The strategic plan will layout, based on analysis, what areas of the airline market has the most promising opportunities. The next step is a tactical marketing plan that will help to point out promotions that could be featured and services they could offer to bring lost customers back as well as to draw new customers in. Classic is in a position where they can’t decrease the price of flights because their flights are set within the standard pricing of the airline industry. However this is an area that is in need of revamping, that is the customer service area. There are many complaints about the treatment of Classic’s customers. There is room for
Classic Airlines Marketing Plan
MKT 571/Marketing
Classic Airlines is up against not just one challenge but several challenges they need to deal with. Unfortunately travel has decreased as a result of uncertainty with regards to flying; this has forced the stock prices to be reduce decreasing the price of a share of Classic Airlines stock by 10% over the previous year. The negative messages being conveyed by Wall Street and the media is bringing employee morale down to an all time low. Consumer confidence in the airline has resulted in a 19% decrease in Classic flight reward members which in turn has decreased flights by loyal members by 21%. The rising cost of fuel and labor as a result of economic times is preventing Classic from competing to regain its lost customers. In an attempt to balance out their financial loses and cut down on any further financial crunches, the board of directors is mandating a 15% cost reduction but expects the marketing strategies to be beefed up to bring in more profitable return on investments of the frequent flyer program. This plan is being put into action to prevent bankruptcies of the airlines. Classic Airlines needs a begin with their business mission then move on to a strategic plan. The strategic plan will layout, based on analysis, what areas of the airline market has the most promising opportunities. The next step is a tactical marketing plan that will help to point out promotions that could be featured and services they could offer to bring lost customers back as well as to draw new customers in. Classic is in a position where they can’t decrease the price of flights because their flights are set within the standard pricing of the airline industry. However this is an area that is in need of revamping, that is the customer service area. There are many complaints about the treatment of Classic’s customers. There is room for