Journal of Business Studies Quarterly 2009, Vol. 1, No. 1, pp. 16-25

ISSN 2152- 1034

A Case Study on Classic Airlines: Practical Marketing Solutions
Milaly Tokhi, San Jose State University

Abstract In today’s competitive arena, organizations must use all possible means to maximize growth and profitability by focusing on strategic marketing. Classic Airlines has an opportunity to alter the landscape of the airlines industry. In order to succeed, Classic Airlines must be able to correctly forecast market potential and future demand, by establishing long-term marketing objectives. Key words: Marketing, business, organizations, cross-functional teams, environmental scanning.

Classic Airlines Classic Airlines is facing an organizational issue. External and internal marketing programs have not been able to satisfy the needs and wants of the stakeholders. Target customers are looking at the services offered by other airlines to satisfy their wants and needs. This has resulted in poor sales and reduced profits for the company. The marketing plan of a firm “helps the firm connect with its customers” (Kerin et al., 2006). Therefore, Classic Airlines wants to develop an effective plan of action that will not only help attract and retain customers, but also boost sales and profits. The Situation Issue and Opportunity Identification Classic Airlines is a 25 year old company that commands a fleet of more than 375 jets that serve 240 cities with more than 2300 daily flights. The company is facing numerous challenges because of rising costs and lack of innovation. Customers are not satisfied with the service they are receiving and management cannot agree on how to correct the issues. A manager at Classic Airlines expresses, “Your challenge is going to be rising above our competition without

© Milaly Tokhi

discounting airfare” (Case Study, 2008). The company will