...Classic Airlines Marketing Solutions Ricardo R. Bonner MKT 571 November 21, 2011 Abstract The author has read the case study on Classic Airlines and will attempt to help the company by formulating a marketing plan which would help them recognize, diagnose, plan and implement which would put them in a better position for marketing and profitability reasons. The author breaks down Classic’s approach by recognizing its most valued commodity, and seizing on the opportunity to improve it by offering a 9 step process. The author uses examples to both illustrate the flaws inherit in their marketing efforts and to project successes if suggested solutions are utilized. Classic Airlines Marketing Solutions According to its stockholder’s annual report and outside business analysts’ opinions, Classic Airlines (or Classic for purposes of this paper) is poised to assume elite status among air carriers. With its vast assortment of resources and perceived positive PR (public relations) persona, Classic has enjoyed prime positioning because of it. However the economy has altered well-intentioned plans of many companies, including Classic, as the downturn has crippled economic conditions. Classic believes it can identify its weaknesses and craft an effective marketing effort which would position the company to achieve sustained profitability. Classic Airlines believes that recent economic pressures have been the main culprit in its journey from confident trendsetter to...
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...Lancôme Jill Rose Lauren Ruegemer Solution We suggest: Lancôme follow a differentiated market coverage strategy by introducing Lancôme Hyp. Lancôme change consumers’ perceptions and preferences for higher quality consultation service and a wider product line, while only changing consumers to prefer higher innovative technologies. The Problem Solving Format allowed us to analyze Lancôme's current business plan. We determined that Lancôme should switch from an undifferentiated market coverage strategy to a differentiated strategy. This differentiated approach will potentially increase consumer preferences for wider product lines, higher consultation quality and innovative technologies. Lancôme will accomplish this by focusing on advertising and promotional campaigns that address the product and brand benefits described in the core benefit proposition. In addition, our recommended MAGIC strategy will help Lancôme defend itself strongly against competitors. Market Overall Market: Cosmetics and Skin care Focus Market: Skin care We began our Lancôme analysis by defining the market which is cosmetics and skin care. This market can be further divided into the following categories: body care, makeup, hair care, and fragrances. Since Lancôme focuses on keeping women looking healthy and young, we chose skin care as the focus market, which enables us to eliminate brands that are not substitutes for skin care, such as L'Oreal and Almay. Within this skin care focus market...
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...Introduction: Integrated marketing communication is often compared to an orchestra. Just as an orchestra’s performance is guided by a musical score, an IMC campaign must have a written score, or plan. This plan details which marketing communication functions and which media are to be used at which times and to what extent. An IMC campaign plan is a written document. It can be as minimal as a set of organized notes by a person running a small retail business or as complex as a 100-page document for a multimillion-euro brand campaign. But all good plans, regardless of size, have six basic elements: • Targeting (designated customers and prospects) • SWOT analysis • Objectives • Strategies and tactics • Budget • Evaluation The planning process begins with the selection of the desired audience for the brand message. Research then determines the strengths and weaknesses of a company or brand from the perspective of customers and prospects. Planning also takes into consideration marketplace opportunities and threats—the things that companies cannot control but can leverage or address to their advantage. Different Researchers and authors define this marketing activity in different perspectives the most famous definitions are as follow: “Integrated marketing communication is a process for planning, executing & monitoring the brand messages that create customer relationships, (Duncan, 2005)” “IMC is the coordination and integration of all marketing communication tools, avenues...
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...Classic Airlines Marketing Solution Michael R. Engler MKT571 7 May 2012 Professor Alan Mandel Classic Airlines Marketing Solution Classic Airlines is currently in a state of declining demand and the marketing team has been given the mandate not only to identify the underlying problems but also to find a workable solution that meets the company’s objectives (University of Phoenix, 2005). The marketing team has decided to use an aggressive problem-solving model that includes the following nine-step process: * Describe the situation * Frame the right problem * Describe the end-state and goals * Identify alternatives * Evaluate alternatives * Identify and assess risks * Make the decision * Develop and implement the solution * Evaluate results (University of Phoenix, 2004). The following paragraphs discuss each step taken through the problem-solving process and presents the final solution. Step 1. Describe the Situation Accurately describing the situation facing Classic Airlines requires reviewing the scenario, collecting information from available sources including stakeholders, and creating a problem statement that reflects the reality of situation. It is necessary to explore the whole picture and understand the context without making assumptions to paint a true picture of the situation (University of Phoenix, 2004). As a result of reviewing the available information, the marketing team has determined that Classic Airlines...
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...Classic airlines is one of the largest airlines and commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (University of Phoenix Material, 2009).They continue to be a very profitable company, but with rising overhead costs and the current state of the economy, classic airlines has experience some set back. There are many internal and external pressures that contribute to Classic Airlines current crisis. In order to address this crisis, Classic Airlines must use the basic problem solving method. They must also utilize their internal marketing resources and explore external marketing options to find a profitable solution. Below is a diagram of the problem solving method (BPI Consulting, 2004): The first step is to define the problem. “Step 1 is a critical step in the problem solving process; it determines the overall focus of the project (BPI Consulting, 2004)”. Classic Airlines is a profitable company, however, they have experienced a decline in their market shares. This decrease in shares has resulted in negative press from the media and heavy criticism from market shareholders. These results have greatly affected employee morale, which can influence productivity. Another problem is the rising overhead costs which includes fuel and labor cost. Classic Airlines has implemented a cross-company budget cut for all departments. Classic Airlines has also seen a decrease in the enrollment of their classic rewards program. This means that...
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...RUNNING HEAD: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Shelley R. Brothers MKT/571 Marketing University of Phoenix This paper will break down the problems that Classic Airlines are facing with so many pitfalls in their airline. With using the proper product launch plan, Classic Airlines should be operating up to stands if all goes well. Classic Airlines, a 25 year old airline, is ranked the world’s fifth largest airline consisting of more than 375 jets that makes over 2,300 flights daily to 240 cities. The airline has grown into a 32,000 employee airline and has earned $10 million on $8.7 billion in sales last year (Classic Airline Scenario, 2010). Although Classic Airlines have been profitable, like other airlines, they have struggled through several marketing problems in the past year which has caused them to fall short of hitting rock bottom lowering employee morale and customer loyalty. As the economy continues to struggle Classic’s Board of Director have insisted on a 15% across-the-board cost reduction over the next 18...
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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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...any further decline, and review the implemented plans to determine how CA will thrive in the future. In essence, the appropriate parties must comprehend how the company ended up in this situation in efforts to formulate a good plan to rise above it. CA must address these problems swiftly by using the basic problem-solving method. The company must use their marketing resources, as well as some external marketing options, to determine a profitable solution. This paper will demonstrate how the nine-step process can be used as a means to return Classic Airlines back to its place as a major contender in the airline industry now and in the future. The Situation According to the University of Phoenix scenario (2010), some of the challenges are increased hesitation about flying among consumers, strong competition, unpredictable fuel costs, unsteady customer confidence, decreased employee morale, and the 10% decrease in share prices as compared to the prior year. Each of these factors may prove to have tremendous, negative impact if not appropriately mitigated by CA’s marketing team. It is the responsibility of CA’s marketing professionals to improve the company’s...
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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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...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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...Running Head: Classic Airlines Marketing Solution Classic Airlines Marketing Solution Gabrielle Plooy Marketing/ 571 January 10, 2011 Alan Mandel Introduction Classic Airlines one of the world’s largest airlines is experiencing setbacks that will either reside with proper application of marketing techniques and skills to stabilize current profits while opening the way to future profit gains. In addition to staying profitable the company must rebuild customer confidence and secure the loyalty of the client base while building new ways to improve customer retention as well as attraction of new clients. Building a better way for the company to operate and grow will take the efforts of all employees and department and dedicated efforts of thoroughly reviewing and changing programs that have become stale and unproductive. Monitoring and tracking of the results of the changes will also need to be a focus and priority for the company to turn around the client’s loyalty and rebuild company image in the industry. Introduction of new programs that can grow with the company, development of the cut backs the company must impose to stay liquid, and the monitoring of activity to give vision to where more changes are needed and when needed is imperative for Classic to rebound. Identifying the Issue Classic Airlines is facing a steady decline in loyal frequent flyer customers who have consistently stayed with the airline in the past but have begun to stray to the competition. Through...
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...Classic Airlines Marketing Solution Classic Airlines is one of the largest airlines in the world. Their routes include more than 240 cities and more than 2,300 flights a day. In 2004, they had a net operating income of $10 million dollars (Classic Airlines Scenario, 2011). Despite this achievement, Classic Airlines has been experiencing many challenges in operations that are threatening their profitability. These challenges include increased competition, higher overhead costs, decreased employee morale, dwindling stock prices, shrinking consumer confidence, market uncertainty, and customer dissatisfaction. Classic Airlines could use the nine-step problem-solving model to find the true cause of these symptoms and rectify the problem. Profitability will increase once the true problem is solved effectively. According to the Critical Thinking textbook, “Problem solving is applying critical thinking to achieve the goals and personal harmony that are important in our personal and professional lives” (Kirby & Goodpaster, 1999, p. 251). There are many approaches to problem solving. We will use the nine-step model described in Problem Solving-Based Scenarios (Problem Solving-Based Scenarios, 2011). The first step is to describe the situation. Classic Airlines has experienced a 10% decline in share prices. Customer surveys show that they are becoming dissatisfied with the airline’s customer service and frequent flier program, Classic Rewards. Rewards membership has decreased...
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...to begin managing and understanding a wide range of decisions to be made, problems that needs attention, and concerns that arise from internal and external customers. According to University of Phoenix Week Three Scenario (2011), “Classical Airlines has seen a 10% decrease in share prices in the past year,” (para 2.) With this decrease in share prices the rising cost (fuel and labor) have hit the organization hard. The employees’ morale is at a low and Classic’s financial strain the corporate culture is under pressure. The board of directors for Classic Airlines has mandated a 15% cost reduction over the next 18 months. This cost reduction brings some challenges for all departments including finance, human resources, marketing, and customer service. From a marketing point of view, Classic is challenged with increasing customer loyalty and satisfaction, while decreasing expenditures. The first step of the problem-solving method is a key question to ask, “Is all the things competing for your attention, which you will deal with at this time?” There are competing issues and all involved parties have a personal vested interest. In Classic Airlines case, decreasing sales impacts the customer’s satisfaction and loyalty; lower employee morale and cutting costs are all examples of the competing issues. There are many key stakeholders who’s vested interest in...
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...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. A plan to decrease or eliminate the identified internal and external pressures needs to be formulated. Second, the challenges of the marketing department needs to be solved. The third and final step is to formulate financial strategies by examining possible available resources and other airline's marketing...
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...Marketing Solution MKT/571 Marketing April 25, 2011 Dr. Bea Bourne Marketing Solution Classic Airlines, one of the largest airlines in the country, “commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights” (University of Phoenix, Classic Airline Scenario, 2011) and has gained 32,000 employees with earnings of $8.7 billion in sales. September 11, 2001 was the start of the economic crisis for the airlines, along with the rising costs of operations. Classic Airlines has internal and external factors, which also contribute to the airline’s crisis. Addressing the crisis, Classic Airlines should consider using a ten-step basic problem-solving method as well as seek suggestions from the airlines internal and external resources. Define the Problem The first step in the method is defining Classic Airlines problem by determining the purpose of the project. Classic Airline’s shares are declining even though the airlines still earn a profit. A problem found is Classic Airline’s reward program offered to customers has declined, which could be because the customers are traveling less because of the economic times or the customers are traveling on other airlines. The decline could also be linked to the lack of customer satisfaction. Employee morale is another contributing factor to the airlines problems. The morale has decreased because of the September 11, 2001 attacks, referred to as 9/11. After 9/11 the airline was criticize...
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