...Classic Airlines and Marketing MKT/571 March 28, 2013 Audrey Dorsey Classic Airlines and Marketing Currently the fifth largest airline, Classic Airlines has 375 jets serving 240 cities with 2,300 daily flights. Classic Airlines currently employs 32,000 employees and has grown considerably over 25 years. Although Classic Airlines has grown and employs 32,000 employees, the company is currently experiencing decline in stock prices, customer loyalty, and employee morale. Classic Airlines has experienced a 19% decrease with their classic reward members. These customers are currently using other airlines for travel. This paper presents challenges Classic Airlines will face relating to marketing concepts and current corporate culture. Marketing involves “identifying and meeting human and social needs” (Keller & Kotler, 2006, pg.2). Marketing Management “is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value” (Keller & Kotler, 2006, pg.3). The major area of concern is customer loyalty. Classic Airlines currently experienced a 19% decrease in classic award customers and customers who remained flew less frequently. Senior VP of Customer Relations Renee Epson stated she has been saying for the past two years “we’ve lost touch with our customers. Every day I monitor the customer service calls and hear customers tell us what they want but we don’t have the services...
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... 2011 MKT 571 Classic Airline is the world’s fifth largest airline that commands a fleet of more than 375 jets. In the 25 years of service, Classic Airline has more than 32,000 employees and earned $10 million for the last year net income (University of Phoenix, 2010).Classic Airline facing some new challenges that also affect other companies in the airline industry such as raising labor and fuel cost. In the past Classic Airline has marketing strategy that focus on the price on the services. The company decided to cut down the price to compete with competitors. Today Classic Airline facing some marketing challenges to become a leader in the airline industry. Those challenges are decreasing profits and losing customer loyalty. Classic Airline has shown decrease in the net income from the previous year. Classic has a 10% decrease in share price in the past year (University of Phoenix, 2010). To prevent further financial crisis Classic Board of Director mandate a 15% cost-across-the-board reduction. Classic needs to find the ways to increase net profits. Market for Classic Airline is consumer market, which companies selling mass consumer goods and services and spend time to establish a superior brand image (Kotler & Keller, 2006). Classic Airline has been spend 25 years to establish positive image for the company; however in the last year the negativity form Wall Street and the media has effect the company reputation and also employee morale. Classic needs to improve company...
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...Individual Assignment Classic Airlines and Marketing Shaquita V. Stewart MKT/571-Marketing Professor, Robert Barnet During the commencement of this course we have has the opportunity to acquire knowledge and insight to many different key aspects and concepts of marketing. In this brief we shall discuss the Classic Airlines scenario, consider the product (i.e. Classic Rewards Program) and service (i.e. Quality Airline Travel) that the company is marketing, while reflecting on what marketing challenges Classic is facing in addition to the corporate culture. Marketing concepts found in the week one reading assignments will also be discussed in their relation to the contents of Classic as both and institution and a brand. Upon review of Classic’s overview, overall, the airline is fairly profitable. The challenge comes in the face of waning consumer confidence; “Loyal customers [are] jumping ship and the ones still aboard seemed to be flying less frequently -- or at least less frequently with Classic Airlines.”1 Rising Costs of fuel and labor are also challenges that Classic faces; “[limiting] Classic‘s ability to compete for the valued frequent flier.” Classic, like many of its competitors overestimated the reversal of the travel downturn. that followed September 11th 2001. Having expanded too quickly, Classic now faces a restrictive cost structure that younger airlines do not. Moreover, to counter...
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...Classic Airlines and Marketing University of Phoenix – MKT/571 Classic Airlines and Marketing Many times there are many complicated scenarios that face a business over time and the Classic Airlines is experiencing one of these now. During these times there will be numerous causes engaged and potential directs to decide between. This article will offer marketing ideas found in the Classic Airlines scenario and how they compare to the readings. These ideas could help Classic Airlines choose the greatest course of achievement moving forward. Marketing Concepts The Classic Airlines scenario offered, one of the ideas found both that Kotler declares in the text is that of varying from accentuating substantial resources to accentuating vague items. This is exposed in the e-mail communications created in the scenario where the organization is trying to comprehend the customer at a deeper level and supply them with what is mainly important to him or her. Kevin Boyle the Chief Marketing Officer discussed with Renee Epson, the Senior Vice President of Customer Service using the CRM system, which is not being used as it should be. The CRM system has statistics collected from the customers over an extensive period that has not been used yet, but it seems as if it will be assessed to see what the customers have been told about Classic Airlines. Additional ideas that bestow itself within the scenario is tremendously crucial to the success of any idea defining the problem. Throughout...
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...Classic Airlines and Marketing Shawna Caron MKT/571 May 29, 2012 Meraj Khan “Classic Airlines is currently the world’s fifth largest operating airline. There are more than 375 jets that serve 240 cities and more than 2300 daily scheduled flights. They have enjoyed tremendous success since their inception 25 years ago. The organization has grown to an impressive 32,000 employees. Their most recent accomplishment was last year when they earned $10 million on $8.7 billion in sales (University of Phoenix).” Though profitable, Classic Airlines is currently suffering financial decline because of rising costs of fuel and labor, decreases in share prices and customers jumping ship. Their rewards program has not been successful due to the decline in passengers flying. Additionally, customer feedback has not been favorable due in part to competitor airlines offering more for less or more for the same cost. Marketing the Rewards Program and its Challenges In order for Classic Airlines to improve their current rewards program, they need to focus on customer relations. Customers will pay more for something extra, but they will not pay more for something that other airlines offer for equal or lesser value. Classic Airlines needs to work on rebuilding their customer’s confidence. “The offering will be successful if it delivers value and satisfaction to the target buyer” (Kotler & Keller, 2006). Classic Airlines should distribute surveys to the public online...
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...Classic Airlines Marketing Concepts Marketing MKT/571 Classic Airlines, an airline organization who faces competition is seen in its reduction of customers’ confidence resulting in lower sales. “Classic Airlines saw a decrease in their share prices and a decrease in the number of customers enrolled in their Classic Rewards Program” (University of Phoenix, 2012). The reward program is recording reduction in the number of members and the increase of fuel and labor costs is pushing the organization to the possibility of going bankrupt. Classic Airlines has had declining profits and their stock prices have fallen which has affected the organization. This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report. The paper is meant to identify the products or services and its challenges plus discussing the marketing concepts that the organization uses to guide its marketing efforts. Current Situation Classic Airlines is a company with an extensive history of success however, the company has encountered difficulties in their advancement toward an effective customer service and marketing campaign. Over the years the cost of fuel and labor has been increasing and the top executives at Classic Airlines have a hard time figuring out how to cut costs, so that they can afford increases. There is a need for the airline to keep up with providing the best services...
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...Classic Airlines and Marketing Paper 10/02/2012 Classic Airlines and Marketing Paper Classic Airlines is the world’s fifth largest airline. Because of the recent increase in terrorism customers have been reluctant to flying causing the stock of the company to be affected. The main challenge Classic Airlines faces is how to increase the members in its frequent flier program to show a profit. If Classic cannot increase its sales from the frequent flyer program the company will not succeed and continue to be a leader. The management for Classic Airlines will also need to find a way to keep existing members and increase the new members in their reward program. Additionally, Classic’s board of directors has mandated a 15% for the whole company. This paper will take some of the concepts learned this week and apply them to the Classic Airlines scenario. The Chief Marketing Officer, Kevin Boyle has the tasks of restructuring the Classic Rewards Program. In the text Kotler and Keller (2006), identify marketing management tasks that can be implemented by Classic Airlines. The tasks are to develop a strategy or plan, get insights into marketing, build customer relations, create strong brand marketing, market offerings, convey value, and lastly to create long term growth. I believe by implementing these tasks Classic Airlines will be able to improve customer satisfaction and loyalty, employee morale that will improve sales. The text states in general customers compare...
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...Running head: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Marketing MKT/571 August 15, 2011 Classic Airlines Marketing Solution Classic Airline the world’s fifth largest airlines, has a fleet of more than 375 jets which serve 240 cities with over 2,300. Flights daily (University of Phoenix 2011). The company is profitable however, there has been a decline in the loyalty rewards program as well as a decrease in share prices. The management team is working to identify a marketing solution and strategy that will provide a win back solution. This paper will perform the nine step problem solving method as it relates to Classic Airlines scenario. Framing the problem: The primary problem for Classic Airlines is a decline in return customers especially the loyalty programs customer base. This problem is due to the cost it takes to lose a customer is greater than the cost to maintain customers in that the cost of marketing to new customers is extensive. According to the text, it can cost a company approximately 5 times more to acquire new customers than to retain the existing customers. (Kotler & Keller 2006). Describe end state and goals: The end state would be for Classic Airlines to win back those loyal customers who currently make up 19% of the decline in the company. Acquiring and gaining new loyal customers at a rate of no less than 15% of the current state. The goals that are attainable and measurable for this second stage will be those...
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...Classic Airlines is the world’s fifth largest airline with a fleet of more than 375 jets serving 240 cities with 2,300 daily flights. The company currently employs more than 32,000 employees, still maintaining profits of over $10 million in the current year. Although profits are not as viable, there is a lack of customer use in the airline industry since 911. Stock prices have declined 10% because customers are not as secure with flying as they were before the 911 tragedy causing shareholders to keep Classic under scrutiny to make changes. Classics’ Classic Rewards membership has declined 19 % and a 21 % decrease in flights per remaining customer which has caused concern for Classic Airlines. (University of Phoenix, 2012) Another problem for Classic is rising costs of labor and fuel has placed limitations on how Classic competes for frequent flyers. The board of directors has mandated a 15 % across-the-board cost reduction over the next 18 months. The information in this paper will discuss a nine-step problem solving strategy to help Classic Airlines regain customer confidence and satisfaction. The main problem addressed in this paper is maintaining a viable rewards program to lure frequent flyers back to Classic Airlines. Framing the Problem Classic Airlines must first understand that most of the problems the company faces are uncontrollable. Classic needs to determine why the company has been losing rewards members. One of the first steps would be to establish a survey...
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...Classic Airlines Marketing Solution October 14, 2012 MKT/571 Introduction Classic Airlines is facing both and internal and external marketing crisis. The CEO, Amanda Miller and CFO, Catherine Simpson are basically asking the team led by CMO, Kevin Boyle to revitalize the frequent flyer program without making further discounts to fares while also cutting the marketing budget by an 15% over the next 18 months. Utilizing the nine step problem solving model we will analyze possible solutions and choose the one that will best meet the needs of Classic Airlines and its customers. Defining the problem One of the basic and core concepts of marketing is identifying and meeting the needs, wants and demands of the customer. Needs are basic human requirements like air, food and shelter. Needs can also extend to education, recreation and entertainment and become wants when directed to specific objects that satisfy the need and demands are simply wants backed up by the ability to pay (Kotler & Keller, 2006). When needs, wants and demands are met, customers are more likely to be loyal to the airline. This in turn creates the potential for free word of mouth advertising as the loyal customer shares his or her experience with everyone around them (Anuwichanont, 2010). Classic Airlines seems to be lacking in meeting the needs, wants and demands of their loyalty customers and their loyalty program has seen a decline of 19 percent by January 2006 (University of Phoenix, n.d.)....
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...Presently Classic Airlines is one of the largest airline carriers in the world. Last year the company had a net income of $10 million dollars on operating revenues of $8.7 billion. The year before the company had a net income of $71 million on 8.5 billion of operating revenues (Classic Airline Scenario, 2010). The net income has decreased $61 million in one year. One of the reasons for the huge decrease in net profit is because of marketing strategies. The company needs to take three stepsto turn the company around. First it needs to analyze the internal and external pressures that has created the present crisis. Second it needs to formulate a problem-solving method, and third it needs to apply the problem-solving method to the current crisis. Analyze current situation Rising costs, particularly of fuel and labor, have limited Classic Airlines to compete for the valued frequent fliers (Classic Airline Scenario, 2010). To protect the company from possible bankruptcy, a 15% cost reduction has been implementedover the next 18 months. Each department will have cuts, with marketing hardest hit at 21.5% reduction versus sales and operations at 11.5% (Classic Airline Scenario, 2010). The following shows the cost reduction goals by department (Classic Airline Scenario, 2010). To make sure Classic Airlines does not go into bankruptcy, the marking department needs to focus on three issues. First, the internal and external pressures causing the decrease in net income needs to be identified...
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...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...
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...PROPOSAL SUBMITTED TO: WORK TO PERFORMED AT: NAME: ESTIMATING Name: South Region HS COMPANY: GENERAL CONTRACTOR Address: TEL: FAX: City: Los Angeles CA State: CA Note: Water proofing not included. NOTE: ALL THE PRICING IS SUBJECT TO MARKET PRICE AND COULD CHANGE IN MATTER OF TIME AND WILL BE CHARGED TO THE CUSTOMER NOTE: NO STRUCTURAL STEEL AND STAILESS STEEL APPLIANCES ARE INCLUDED IN THIAS CONTRACT. All material is guaranteed to be as specified, and the above work to be performed accordance with the drawings and specifications submitted for above work and completed in a substantial manner for the sum of $450,000 four hundred fifty thousand Dollars. Progress payments shall be made as follows: 10 % deposit 30 % material & 60 % negotiable Any alteration or deviation from above specifications involving extra coast will be executed only upon written order, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents, or delays beyond our control. We are not liable for businesses damages on be half of the construction and time of project. With signing this contract they agreed to pay the entire amount. SUBMITTED BY: DATE: 08-20-09 Note: This proposal may be withdrawn by us if not accepted with in 30 days. ...
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...Classic Airlines Marketing Problem MKT 571 February 06, 2012 Warren Rosendhal Table of Contents Introduction…………………………………………………………………………….………...3 Market Needs 4 Market Growth 5 SWOT Analysis & Competition……………………………………………………….……….6 Product Offering and Definition……………………………………………………….…….…7 Product Identification…………………………………………………………………….……..8 Justification for choice of product…………………………………………………………..….9 Conclusion……………………………………………………………………………….……10 Reference……………………………………………………………………………..………11 Introduction Classic Airlines is the fifth largest airline in the world which command a fleet of over 375 jets that serve 240 cities with over 2,300 daily flights. Classic Airlines has grown over the years employing 32,000 in the last year and earning $10 million on $8.7 billion in sales. In the other hand some of the challenges that Classic Airlines is facing is a decline in stock prices, 10% decrease in prices since the previous year. Classic Airlines along with other airlines have been under inspections, negative media from Walls Street has also been a factor in employees’ morale (University of Phoenix, 2011). A decline in Classic Reward program has also affected consumer, rising cost of fuel and labor has also impact Classic Airlines ability to compete with other airlines frequent flier programs. These are some factors currently affecting Classic Airlines ability to compete with new and emerging carriers. Classic Airline will need to develop...
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...Classic Airlines is facing the same issues that many organizations are faced with which is providing increased value to their customers with a tighter budget, as the fifth largest airline Classic airlines has had declining profits and their stock prices have fallen this has adversely affected the organization. To make matters worse Classic Airlines has lost 19 percent of their Classic reward members; and the members they have left are flying with Classic even less these days (UOP Portal, Classic Airlines, 2011). This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report. Chief Executive Officer Amanda Miller has tasked the leadership teams to make improvements to the frequent flier program that will promote positive returns. The board of directors recently mandated a 15 percent cost reduction across the board that will be in effect for the next 18 months. To achieve this task Classic will need to analyze feedback from customers and understand their objectives and align those with their long term goals. The issues and opportunities present in Classic airlines will be addressed as well as any ethical dilemmas or stakeholder perspectives that need to be addressed. The problem definition and the end state vision will be discussed and the optimal solution will be proposed for Classic Airlines. Issue and Opportunity Identification Classic Airlines has several issues that they need to address...
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