Classic Airlines Marketing Solution
Classic Airlines Marketing Solution
Introduction
The world economy is increasingly been fuel by Service businesses, with stiff competitions, most companies are finding it difficult to differentiate their physical products. To have that competitive edge over competitors, it is critical for service businesses to understand the special nature of services (Kotler, & Keller). One such company that is finding it difficult to understand the nature of services is Classic Airlines. The company is the world’s fifth largest airlines, they operates in 240 cities with an impressive 2,300 daily flights (University of Phoenix, 2012). The company’s financial report shows it earned $10 million on $8.7 billion in sales last year. Regardless of the profits, Classic has been on a downward trend, factors influencing this trend are; the rising cost of fuel and labor, negative media reports, and a constant decline of its stock prices. The Board of Directors are requiring a 15% cost reduction over the next 18 months, employees morale is low, and there is a lot of negative feedback from its customers in regards to the service provided by the company. I will implement a nine-step problem solving method that I will use to identify the problems at Classic Airlines, what opportunities the market has and create effective marketing solutions with a desirable end results to restore customer loyalty, employee morale, and entice investors’ to increase the company’s market value.
Step 1: Define/identify the Problem
The company is faced with so many problems; some of these problems need immediate attention so that Classic Airlines will start generating much needed revenue from sales. Classic’s biggest problem is losing its customer base and a decrease in activity from their most frequent flyers; this is why they are losing sales. Because of the global financial crisis, there is a steady increase in the cost of fuel and employee wages are also high, these two factors are the major cause for the
Introduction
The world economy is increasingly been fuel by Service businesses, with stiff competitions, most companies are finding it difficult to differentiate their physical products. To have that competitive edge over competitors, it is critical for service businesses to understand the special nature of services (Kotler, & Keller). One such company that is finding it difficult to understand the nature of services is Classic Airlines. The company is the world’s fifth largest airlines, they operates in 240 cities with an impressive 2,300 daily flights (University of Phoenix, 2012). The company’s financial report shows it earned $10 million on $8.7 billion in sales last year. Regardless of the profits, Classic has been on a downward trend, factors influencing this trend are; the rising cost of fuel and labor, negative media reports, and a constant decline of its stock prices. The Board of Directors are requiring a 15% cost reduction over the next 18 months, employees morale is low, and there is a lot of negative feedback from its customers in regards to the service provided by the company. I will implement a nine-step problem solving method that I will use to identify the problems at Classic Airlines, what opportunities the market has and create effective marketing solutions with a desirable end results to restore customer loyalty, employee morale, and entice investors’ to increase the company’s market value.
Step 1: Define/identify the Problem
The company is faced with so many problems; some of these problems need immediate attention so that Classic Airlines will start generating much needed revenue from sales. Classic’s biggest problem is losing its customer base and a decrease in activity from their most frequent flyers; this is why they are losing sales. Because of the global financial crisis, there is a steady increase in the cost of fuel and employee wages are also high, these two factors are the major cause for the
References: Kotler, P., & Keller, K. L. (2006). Marketing Management, (12th Ed.). Upper Saddle River: Prentice-Hall, Inc. A Pearson Education Company. MKT/571 Marketing Classic Airlines Exhibit B. University of Phoenix. (2012). MKT/571 Marketing - Scenario: Classic Airlines. University of Phoenix. (2012). http://finance.yahoo.com/news/Airline-shares-fall-oil-apf-3410095125.html