It deals with over three hundred and five jets. The airline serves two hundred and forty towns and cities, and does two thousand three hundred flights per day. It has grown to a great extend as it has an employee base of thirty two…
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In addition, there are high levels of uncertainty in the firm. These uncertainties range from reduced customers to a flight of a half full aero jet. As a result, there is a considerably increased charge to cater for these uncertainties. The fact that there are a number of other airlines is a challenge by itself. Competition is high in this business and leads to a reduction in the number of customers with time. Since the year 2005, there has been a problem in customer loyalty. Existing customers (even today) are trying other airlines hence switching from Classic Airlines. Due to the prominence of the first four airlines, this particular one has lost market (Kotler & Keller, 2006).
Due to the tough economic times, costs of most items go up by day. Labor and fuel go up at an alarming rate and at times fluctuates. It makes competition for Classic Airline a big challenge, therefore. In a move to try fighting these challenges, this airline had to call for a crisis meeting which cost the company a lot to finance for the transport of major stakeholders as well as cater for their sitting allowances. There was some workforce downsizing, which affected the company a great deal. When experts are sent home, this is the beginning of trouble; less work will be done by the few remaining workers. Machines are deemed to fail at times. According to University of Phoenix Material (n.d), many lives have been lost in this mode of transport. Paying salaries for the expensive expertise becomes a challenge and the burden is transferred to the customer.
As noted by University of Phoenix Material (n.d), Classic Airlines have one of the challenged corporate cultures in the world. On the contrary, there are departments that are not working to realize the requirements of their customers. For this reason, there has been a problem in bringing together some of the company processes and operations. There is the use of customer relationship management that is catered in the marketing
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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 facing problems as the firm has not been effective at retaining customers. In the last year the firm has lost 20% of the member of its customer loyalty program. The firm has lost approximately 160,000 recurrent clients.
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.
Last year it earned a profit of $10 million on sales of $8.7 billion. However, Classic Airlines has been facing some similar problems as the rest of the industry, such as rising fuel costs, while its customer retention and loyalty programs have been failing resulting in falling sales and bookings.
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.
improved management system that laid emphasis on meeting customer expectations and at the same time eliminating wasted expenditures and operating costs and put the saved resources to a more effective use.
This case is very much similar to that of Classic Airlines, wherein the
In today’s competitive market it is the duty of the marketing department of companies to ensure that they maximize growth and profits, and this is achieved by strategic marketing. The commercial airline industry changes rapidly and classic
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