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Classic Air

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Classic Airlines Paper

Clinton C.

MKT/571 MARKETING

8/12/2010

Carol

Introduction

The purpose of this paper is to identify and describe what product or service Classic Airlines is marketing, and its current corporate culture. In this scenario, Classic Airlines is the fifth largest airline carrier in the world, commanding a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales.

Marketing Needs and Services

The rising cost of fuel and labor as a result of economic times is preventing Classic from competing to regain its lost customers also the negative messages conveyed by Wall Street and the media is bringing employee morale down to an all time low. In an attempt to balance out their financial loses and cut down on any further financial downslides, the board of directors is mandating a 15% cost reduction but expects innovative marketing strategies to bring in more profitable return on investments of the frequent flyer program. However, the challenges that Classic faces are to increase passenger activity by rewarding its current customers and by enticing potential new customers. To do this Classic must develop a marketing plan.

The plan must incorporate “choosing the target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.” (Kotler & Keller, 2006) The key to Classic success is reconnecting with its customers.

Recently the company has faced some bad breaks, there have been both internal and external crisis leading to Classic Airlines over-all decline in dominance in the market. In addition, too increased uncertainty about flying it has been acknowledge that consumer

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