This is irrespective of a manager’s educational background or their intellectual abilities as problem solving is a nurtured skill. Problems are a part of a business’s routine that helps it to grow. For instance, the objective of this paper will be to solve classic airlines marketing problem using the nine-step model by identifying and defining the problem. Additionally, it will tackle the objectives and obstacles available in the solving of the marketing problem of the airlines marketing department. Issues identification within Classic Airlines Classic airline is the world fifth largest airline with three hundred and seventy five jets in its stable. It has over two hundred and forty flight destinations with at least two--thousand three hundred flights in a day. Its existence is over twenty-five years, which has seen the company grow to having a total number of thirty two thousand employees. Its average turnover per year is between ten million and nine billion. Like any other business structure, Classic Airlines has had its part of challenges. The company witnessed intense plummet of its share price in the stock market because of flying uncertainties. In addition, the negative publicity exhibited by the public, the media and the Wall Street market have gravely affected employee morale hence affecting their overall performance. Problem statement In effect, the consumer confidence on the airline dwindled as the Classic customer reward program membership decreased by an alarming number. The number of flying times that the remaining Classic loyal customers reduced significantly over a short period. Some of the customers jumped ship to access services from the airlines competitors. Moreover, Classic Airline’s inability to meet the rising fuel and labor costs have made the airline unable to compete in a well represented market. In a counter approach move, the airline’s board of directors suggested a cost reduction measure for a period range of one and half years. Under the set period, Classic airline would be able to beef up its frequent flier programs that should bring a significant return on investment. SWOT analysis for the company Strengths Weaknesses Opportunities Threats Long time existence in the market Regular flight delays Investing on the changing customer needs Fierce competition from other players within the travel industry Internationally recognized brand The number of seats that a customer has to have for them to redeem their flier miles The recovery of the travelling industry Fluctuating global currency rates Customer loyalty to frequent flier programs Carelessness of staff leading to loss of client luggage The airlines’ good reputation with the labor unions High fuel and equipment costs Effective implementation of cost reduction measures Poor inter client and staff relationship Venturing in to new destinations both internationally and locally Sanctions imposed by the European Union on carbon emissions and the environment Good relations with its employees Reliance to old forms of travelling techniques Steps in problem solving for Classic Airline’s marketing problem Short-term issues Classic Airlines’ service product Ideally, the greatest, selling point of a product or service is the service product itself. In essence, a service is the act of approaching a need or want in an intangible manner where no one claims ownership.
Classic Airlines’ Marketing problem Name Institution Classic Airlines Marketing problem Introduction Business problems are the challenges that a business encounters that serve as a set back to the business attaining profit or reaching its goals. For instance, the problems that start-up businesses face are different from those that ongoing businesses may face…
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.
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.
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.
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
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
5 pages (1250 words)Essay
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