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Recommendations Solution for Marketing Issues - Case Study Example

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The Classic Airlines has sustained over the years and has had some glorious days in the recent past. With a fleet of over 375 highly advanced passenger carriers, it needs to be highlighted that the airline company Classic Airlines, is significantly one of the largest airlines that has been dominating the skies of around 240 cities. …
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Recommendations Solution for Marketing Issues
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Recommendations Solution for Marketing Issues

Download file to see previous pages... However, in the recent times, it can be said the airline carrier is plagued with various issues ranging from decreasing stock prices to fall of consumer loyalty as well as rising operating costs. This particular memo is in response to the marketing tactics that can be used to consolidate the airline’s position in the global market, while dealing with the issues related to fall in customer loyalty. It also needs to be mentioned that while designing the approach, focus was given on minimizing the operating cost of the airlines. Recommendation The recommended solution for the issues faced by the airline company on the lines of depreciating customer loyalty for the airlines is multi tiered in nature. Firstly, Classic Airlines, needs to focus more on listening to its customers, since they are the key revenue generator for the airlines Secondly, the airline needs to enter into a code sharing practice with another airline so that the company can get a strong and high flow of steady customers. Analysis and Support of the Recommendations It is of considerable importance to highlight that the airline company has been facing tremendous issue in regards to depreciating consumer loyalty. The issue has been further complicated since the existing customers of the airlines, who fall in the frequent flyers category has demonstrated a dip in the frequency of usage of Classic Airlines. It has been assumed that the dip in the case of existing customers may be emerging either because of the issue related to choosing alternative airline or the factor of related to challenging scenario for the overall economy. It also needs to be highlighted that the airline is also facing multiple other issues. Talking specifically about the various other issues, the first thing that needs to be highlighted is the issue of price cut taken by Classic Airlines. It needs to be mentioned that the airline in the recent past has initiated a price cut for its airline services for the passengers. Needless to say, that though this was a complimentary move done while trying to tackle the past airline issues as well as the price cut drive from the competitors, this further resulted in the limiting of the revenue generating abilities of the airline company. The second issue is that the airline has been facing an issue of increase in operating costs for quite some time. As a necessary counter measure, the top management of Classic Airlines has initiated the mandate to significantly attain a 15 % reduction in costs. It needs to be highlighted that the presence of these additional issues has significantly resulted in the process of limiting the options that can be utilized for providing significant recommendations to the airline’s current problems related to fall in consumer loyalty. While talking in regards to the process of providing recommendation, it can be said that the very first step will be to opt for listening to the customers. Talking in more details, it can be said that the Classic Airlines already has in place, a very high end customer relationship management (CRM) system, which have the potential to provide more operational functions as compared to the ones that are being currently used. As of the recent customer feedbacks received, it has been realized that the current CRM system is too much automated in nature and lacks a human powered interaction. The current CRM system has the ability to integrate phone channels with the currently existing web channels. Though adding a human interaction interface in the current CRM system might prove costly, yet it will help in listening to the ...Download file to see next pagesRead More
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