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After insignificant loss in this sector, many of the airline companies utilized this chance and have emerged as the top players in the airline business. The financial crisis also contributed to aggravate the situation and paved the way for the decline of this airline company. However, they have recorded earnings of over eight billion dollars and this has given scope for revival. These profits are not insignificant if one considers the crunch in travel sector due to global financial crisis. But, problems including the failure in the marketing have again caused this airline to show poor performance. They found a decrease of 10% relating to the shareholders. Again, due to the global economic crisis, the board of directors of Classic Airlines has been forced to decrease the rates by 15%. They has also been a little hesitant to improve their marketing technologies. These made them to pay badly and struggled to withstand in the current competition. The company has also failed to provide suitable offers to attract customers to their services. Most of the other companies came up with numerous offers on hands to attract new customers and retain the old ones. Thus, the previous loyal customers and some of the frequent flyers started to migrate to other airlines that offered them higher value in their services and are also ready to travel for low prices. When Classic Airlines has sensed this idea, they were not able to implement a marketing plan to retain their loyal customers because of the rate problems. They were not able to run their operation on a cost that the other companies offer. Thus, the marketing tactics to retain the reputation of the company among the passengers did not bear any fruits.
Currently, Classic Airlines are not able to find an alternative to escape from their dilemma. They are not ready to reduce the cost from what they have decided in their budget. They are now trying to
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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.
One of the fifth largest airlines, Classic Airlines is experiencing challenges due to larger service costs and fuel costs and issues related to service and marketing. Due to this there has been a steep decline in the consumer traffic.
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.
The first step is to identify the problem. In this case, there are two distinct problems. The airline is facing diminished customer positive sentiment about the brand, which is reflected in sales revenues and losses of brand loyalty in its rewards program.
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.
As such it is the lynchpin of any industry. It is all – pervasive. It is important to recognize that everyone in the airline can contribute to the marketing process. The essence of marketing is to identify and satisfy customer needs; to be consumer-or- market oriented rather than production – or supply oriented.
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
2 Pages(500 words)Essay
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