Classic Airlines is the fifth largest airline company in the world. Similarly to the competitors it is suffering from high fuel costs, resulting in lower profits. Many companies dropped number of flights (with the net result of raising passenger load factors and efficiency on remaining flights), raised prices, developed very large revenue streams from checked baggage fees and other charges, and kept very tight lid on all controllable expenses (University of Phoenix Library, 2013). This way the airline companies minimized the expenses and raised the revenue.…
The purpose of this paper is to review the marketing issues identified in a fictional Airline called Classic Airlines. I was presented with a scenario in which I will attempt to identify several things about the company and its situation as presented in the scenario. I will first discuss the nature of the product that Classic is offering. Next I will analyze the types of challenges the company is facing and discuss the corporate culture within the company. Last I will attempt to apply some market concepts to the presented scenario that I believe may improve the situation for the airline.…
Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had integrity, was safe, and cared for their employees, plus had a passion to get it right (Gittel & O’Reilly, 2001).…
Classic Airlines is currently one of the top airline industries but have faced trying times and a decline in revenue and passenger activity. The company has a rewards program in place but obviously with a decrease in passengers the rewards program is not bringing in the type of profit anticipated. By using a macro-environmental change, a marketing research program, and developing a marketing plan the airline should be able to revamp the current rewards program to fit the current economic conditions and market the program to the public in such a way that the plan increases passenger activity and revenue for the airline and the rewards program.…
University of Phoenix (A). (2012). Scenario: Classic Airlines. Retrieved from the University of Phoenix MKT 571 Marketing E-Resource Link.…
This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy. The challenges are great in the airline industry, because competitors are trying to imitate the “low-cost” offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has been replaced by Gary C. Kelly, as the president when he resigned in May of 2008. Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy.…
Nowadays, companies should decide to always manifest effective customer-centricity philosophy, building a strong internal marketing culture and enhancing the market’s influence on other entities throughout their organization. This will set the stage to inform them of how and when the time is right to make the necessary changes for the survival and growth of the business. Huffman Trucking is a trucking company in the services industry, which has been experiencing diminishing growth over the past years. The organization needs to improve its overall position in the industry. Huffman’s CEO, Phil Huffman, has determined that a customer-centric strategy is what his organization needs to improve growth and achieve the top position within the trucking industry. In order to ensure Phil’s strategy is successful a proper evaluation must be done to determine the organizations’ current marketing strategy and in addition determine the sustainability of the proposed strategy and the overall benefit to the organization.…
In an industry that saw an entire industry literally destroyed by the events of 9/11, airlines were filing bankruptcies, most notably United Airlines. Southwest, on the other hand, has constantly made a profit for 30 years and added value to their business. So much so that Serafimov (2004) states that 200 shares of Southwest stock purchased at just over twenty-two dollars per share back in 1985 is now worth just over $24,000. This translates to a 17% increase per year. It is the purpose of this paper to discuss the business juggernaut that is Southwest Airlines and its leader Herb Kelleher.…
This paper will use a problem solving model to solve Classic Airline’s marketing problem. The company is suffering within the airline industry due to several factors, a couple being the massive increase of costs for fuel and labor. The resolution in conquering the airlines dilemma will be addressed in a comprehensive nine-step problem solving model. This model will include Defining the Problem, Gathering Facts, Feelings, and Opinion, Identifying the Real Problem, Generate Possible Solutions, Generate Possible Solutions, Evaluate Alternatives, Select Best Alternatives, Gain Approval and Support, Implement Decision and Evaluate Results. The factors of this difficulty in the marketing of this company will be identified, analyzed, followed by a robust decision on the strategy to resolve Classic Airlines’ crisis.…
Classic airlines are the fifth largest airline in the world. Classic is currently servicing 240 cities with its 375 airlines. Like many airlines that have seen decline in sales, Classic airlines have begun to see an increase in cost as well as a decrease in customer demand for their services. This has created a need for the company to make significant changes in the way they current operate their business. The setbacks this company faces are both internally and externally. Classic will look to their internal marketing team as a resource to find possible solutions that will allow them to fix the company.…
Classic Airlines has is ranked in the top five of the world’s largest airlines. As one of the largest, it does not come without its company concerns of daily operation and consumer insight. Classic’s consumer rewards program has seen a 19% decrease in members and among those remaining a 21% decrease in booking flights (University of Phoenix, Classic Airlines). Finding the proper balance between consumers and the company, and remaining there continuously is the challenging part of business. Classic Airlines has much to change and not just one course of action could be the proper adjustment to boost the sales figures.…
* Customer service oriented (i.e. leather seats with more legroom, in-flight entertainment, better refreshments than competition)…
American achieved its largest-in-the-industry status through a mix of pioneering initiatives and aggressive expansion. It introduced first AAdvantage frequent flyer program. AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it was the first such loyalty program in the world, and remains the largest with more than 50 million members as for 2005. Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The most active members, based on the amount and price of travel booked, are designated AAdvantage Gold, AAdvantage Platinum, and AAdvantage Executive Platinum elite members, with privileges such as separate check-in, priority upgrade and standby processing, or free upgrades. They also receive similar privileges from AA's partner airlines, particularly those in one…
Delta Airlines Board of Directors Presentation October 18, 2013 Consultants: General Overview of Delta Airlines Strategy DELTA’S CURRENT STRATEGY COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing, but still below cost of capital Consolidation trend has reduced rivals helping profits Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled bag to address customer satisfaction RECOMMENDATIONS • Trainer refinery: mitigate risks for success. • Customer satisfaction: domestic differentiation strategy and international best in class strategy…
Through PESTEL analysis, identify the major external environmental drives influencing the airline industry. Since the end of the case (2003), to what extent have these driving force changed?…