Currently, Classic Airlines, a 25 year old company is facing several issues related to lack of innovation and increased costs. The service delivered by this airline is poor and results in more dissatisfied customers. …
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Moreover the management is not able to come to a consensus to resolve the problems. In order to overcome the hazards, this company needs to figure out strategies and plans.
The first step in order to resolve issues is to identify the challenges. One of the main problems faced by this airline is reduction in airline stocks. There is lack of unity among the employees and this has lead to low morale. One of the main problems is that the Chief Financial Officer and Chief Executive Officer of this airline focuses less on marketing and at the same time wants more consumers to use this airlines. Around 20% of the members have stopped using the Classic Reward Frequent Flyer Program. This program is one such programme which recognises the efforts of frequent flyers by allowing them to redeem free tickets on miles. However one of the alarming statistics is that the average number of flights per member has declined to more than 20%. This translates to the fact that Classic Airlines is slowing losing its loyal customers. One of the major challenges which is being faced by all departments is that this company is 15% reduction in costs over the next 18 months.
Perspectives of stakeholders and ethical dilemmas
The major problems which Classic Airlines is facing are dissatisfied customers, low moral and unity among workers and competition from rival airlines. In order to get this organization back to track urgent strategic decisions need to be formulated with special attention to efficiency, innovation, efficacy and customer service. Classic Airlines expects to provide better quality services at the same airfare and this means that the marketing department needs to extensively and aggressively market the product to attract more customers. Framing the problem Classic airlines must focus on all aspects to ensure that they have better growth and profitability. To achieve this, the organization must be able to forecast market potential and future demand. This can be attained by focusing on long – term marketing goals which can help to reduce challenges. Classic airline must employ internal marketing strategies so that the internal customers are satisfied and work together as a team. Internal marketing suggests that in order to be successful an organization must also emphasise on its internal customers or employees. Service organisations must ensure that the employees have the skill, attitude and commitment needed to meet up with growing customer demands and also sustain loyal customers. In internal marketing employee development is done through training, communication, recruitment, management, coaching and leadership. The company must understand the four elements of services; namely inconsistency, intangibility, inseparability and inventory. These are also known as the four I’s of the services. When discussing the marketing mix of the services the four P’s are important. In order to pursue major marketing goals in the target market, the marketing mix which consists of product, price, promotion and place must be used. The Classic Airlines should offer its customers, competitive prices, invest more on promoting products, improve the quality of the products, enhance the CRM system, and implement new and innovating marketing plans and strategies. The above
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This shift in paradigm has been the result of an increase in the level of inflation and a rise in the cost of fuel. These two variables have made it imperative for airline carriers to achieve operational excellence and enhance customer loyalty. Unfortunately for the company, it has encountered some internal problems which are preventing it from addressing these challenges effectively.
Classic Airlines is a company in the airline industry with over 25 years of experience. The firm has an operation that includes 2300 daily flights across 240 cities. The firm has a global workforce of 30,000 employees. Due to the size of the company it is imperative for this firm to invest its marketing dollars well.
Therefore leaders and managers are must have problem solving skills that will enable them to identify the most appropriate problem solving approach that will help them to reach appropriate solutions to problems that business processes face (Morgan, 2012, p.
The paper starts by identifying as well as defining the problem and this is followed by application of the above mentioned problem solving model. The internal as well as external pressures contributing to Classic Airline’s current crisis will be discussed in detail and the essay will also seek to establish the marketing resources that are available to resolve the crisis.
The current paper focuses on the marketing needs of a well – known organization, in the context of the airline industry, Classic Airlines. It should be noted that the above firm has, traditionally, focused on the limitation of its costs, so that its potentials for high profitability are increased.
However, the approach is similar as finding a solution is applicable in both. Ideally, it will not be wise to close down a business because of the problems encountered. In order to solve a problem, it is crucial to apply the relevant problem solving skills in order to overturn the outcomes (Blais, 2012).
From there, the model will be used to define a solution and this will be applied to the situation at hand. For the purpose of this discussion, the marketing unit will involve the way of identifying and meeting human needs (Kotler & Keller, 2006). The strategies used and approaches employed will be evaluated.
Hence, it is believed that classic airlines is not reaching its targeted market effectively.
In order to devise a proper strategy for treating the above problems an internal and external analysis of the firm must be carried out which would help the organization