StudentShare solutions
Triangle menu

Classic Airline's Marketing - Essay Example

Nobody downloaded yet
Those who maintain the rewards program are largely dissatisfied with the program concept and redemption opportunities (68 percent of those surveyed), which contributes to diminishing brand loyalty and word-of-mouth advertising potential. Further, the operating expenses associated with carrying out the services are very high compared to revenues. The highest is fuel, unfortunately the management team has already developed a hedging program and these cannot be reduced. Operations-based expenditures for Classic Airlines require reduction which may mean streamlining operations to adopt either a lean philosophy or change methodology of key operational characteristics at the firm. Based on the knowledge that the CEO does not appreciate or value strategic alliances and thus the marketing division will get no support with this option as a means of improving resources, the business must work with its fundamental strengths to improve operational systems for cost reduction. Having identified the problems, they must be framed effectively. The brand operates in an oligopoly where there are few competitors who dominate the market due to the high costs of entry into the market by competitors. In this market, competitive branding and promotion are some of the most fundamental methods to achieve competitive edge. However, in the conversations between management players, there is a generic recognition that the business has been unable to come up with satisfactory competitive strategies that differentiate the business from other airlines. The business requires differentiation through promotion and also a redevelopment of the current positioning strategy. 2. Solutions In terms of operating costs, the business should look at other models of operations by successful domestic and international airline companies to determine how best to reduce costs in key operational areas. According to the income statement, aircraft rent and aircraft maintenance have some of the highest costs, other than fuel, that contribute to the lower profit margin. This must be adjusted, which involves less reliance on marketing and more on technical and systems-based expertise to develop a new operational system. According to Aruan (2005), making the strategic decision to utilize only one particular type of aircraft gives the airline competitive advantage. In the oligopoly, switching costs for the aircraft manufacturer are significantly low as the manufacturer is able to provide its expert and unique services as they operate in markets with much less competition. Therefore, there are not opportunities for Classic Airlines to negotiate or bargain in the supply chain since the manufacturer is in a dominant position. By changing the procurement model, Classic Airlines can gain much more opportunities to bargain pricing and also take away the supplier advantage by providing more effective training to maintenance crews. Air Asia, a low cost, no frills airline, adopted this same procurement strategy and experienced considerable cost savings and buying power in the supply chain. Rather than being forced to rely on manufacturer expertise in maintenance, Air Asia was able to train its own staff to perform these functions. Having framed the problem, it is now time to decide on strategic action and plan for ensuring this is successful. Further, as it relates to the diminishing brand loyalty, Classic Airlines needs to change its positioning on the competitive market from quality to ...Show more
Cite this document
  • APA
  • MLA
(“Classic Airline's Marketing Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from
(Classic Airline'S Marketing Essay Example | Topics and Well Written Essays - 2000 Words)
“Classic Airline'S Marketing Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times


RUNNING HEADER: Classic Airlines Classic Airlines BY YOU YOUR SCHOOL INFO HERE DATE HERE Classic Airlines 1. The Problem In order to fully justify any changes to the current business model or to its branding strategies, it is necessary to utilize a nine-step problem solving model to improve Classic Airline’s competitive position…
Classic Airlines Marketing
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Classic Airline's Marketing"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Classic Airlines Marketing Solution
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.
10 pages (2500 words) Essay
Classic airlines and marketing
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.
2 pages (500 words) Essay
Classic airline and marketing
The day has witnessed a boom in airline industry and there are several players in the industry that provide cheap to royal services. The introduction of novel and innovative services has caused a decline in the progress of Classic Airlines, which is a reputed airline service with over 300 jets and flying to more than 200 metros.
2 pages (500 words) Essay
Classic Airline's Marketing Solution
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.
9 pages (2250 words) Essay
Classic Airlines Marketing Solution
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.
8 pages (2000 words) Essay
Classic Airlines Marketing Solution
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).
6 pages (1500 words) Essay
Classic Airlines marketing Solution
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.
8 pages (2000 words) Essay
Classic Airlines and Marketing
Marketing, thus, is a never-ending and ever-evolving process. There should be no time to relax. Considering especially that the
2 pages (500 words) Essay
Classic airline and marketing
Classic Airlines have confronted difficulty in the year 2005 in their operations. They have registered a decrease in their customer
2 pages (500 words) Essay
Classic Airlines and Marketing
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
Comments (0)
Click to create a comment
Let us find you another Essay on topic Classic Airline's Marketing for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us