Classic Airlines and Marketing
The Classic Airlines Company’s commands a fleet of more than 375 jets that serves 240 destinations around the world with more than 2,300 daily flights (UOPX Materials, 2012). Over the last 25 years of operations, classic has grown to an organization of 32,000 employees and earned $10 million on its $8.7 billion in sales (UOPX Materials, 2012). After September 11, 2001, classic started facing worldwide problems, such as the rising costs of fuel and labor, aging equipment, and the complicated reward programs. These problems cause the company millions of dollars taken away in their profit. Their loyal customers and reward members were also declining. The stakeholders authorized a 15% cost reduction over the next 18 months to stabilize and reinvent the company. This paper will detail some of the marketing concepts found in the week reading and its application to the scenario in order for Classic Airlines thrives in business.
Classic Airlines is profitable organization that needs to concentrate on the marketing techniques. The company must have an effective marketing plan in place, which focused on passenger activity by rewarding frequent fliers to retain customer loyalty. Rewarding frequent fliers, such as giving them a priority boarding to the aircraft, access to airport VIP lounge, and redeem miles for flights will entice customers to travel within the airline. These programs will boost profit and stabilized the business. To implement the marketing plan, the company should administer a survey to the customer effectively. These surveys will assist the company on what customers should want and what services should the company will offer. Classic airlines should continue administering a survey to the customers to get feedback necessary it needs.
Strategic and tactical planning is vital component of a good marketing, especially when