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Product Development and Pricing Strategies - Assignment Example

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Product Development and Pricing Strategies

Marketing strategy provides the best opinion to the organization regarding how it can use its resources and skills in the market place so that it can run the business profitably (McDonald, 2007). The marketing strategy is mainly concerned regarding the four P’s and the objective of the organization. Flexibility in the marketing strategy creates a positive influence on the performance of the organization (Pride and Ferrell, 2010). In a competitive economy successful marketing is all about customer focus, positioning and attaining competitive success (Lancaster and Massingham, 2010). Classic Airlines is the fifth largest airline in the world. It has a fleet of over 375 jets that flies over 240 cities. Classic Airlines has about more than 2300 flights flying daily. It has been operating in the airline industry for more than 25 years. It has employee strength of more than 32,000. In the year 2004 the company has recorded earnings of $10 million and sales figure reached $8.7 billion. But being in a profitable business, Classic Airline has started facing some problem that has reduced its profit by significant numbers. A large number of factors has played major role in creating this crisis situation. This study focuses on understanding the current situation of the airline, identifying the objective and finally designing a marketing plan that would help the company to come out of this crisis. The Nine-Step Model Classic Airline is facing certain problems that have resulted into reduction of sales and profit of the company. The company wants to plan marketing strategy that would boost not only sales but also profit of the company. The current situation of the company is analysed using Nine-Step Model that has been shown below Identify the problem Issues The increasing uncertainty in the airline industry has affected Classic Airlines whose stock prices are showing a downwards trend. The stock prices in the year 2003 have shown a continuous downfall after the month of June. In the year 2004 though the stock price was seen to increase but most of the time it was hovering around $31.00. Moreover the employee morale was also affected by the negativity from media, public and Wall Street. Figure 1: Stock Price movement for year 2003 and 2004 (Source: Classic Airline-Excel) The confidence of the customers were also seen to be wanning, which is evident from the decine in the membership of the Classic Reward Program by 19%. There has been a reduction in the ‘flights per remaining member’ by 21% (Classic Airline: Case Study). Loyal customers have been also seen to fly less frequently. This situation has been further worsen by the increase in the cost of labour and fuel. Moreover the overestimated expansion of the company due to the reversal after the downturn of 9/11 terrorist attack, has lead to a restrictive cost structures. All these factors are responsible for such a crisis situation of the company. Opportunity To fight against such crisis the board of Classic Airlines has mandated the 15% cost reduction across the board for the next 18 months. It is also finding ways that would ...Show more


Marketing Name of the Student University Table of Contents Table of Contents 2 Introduction 3 The Nine-Step Model 4 Identify the problem 5 Issues 5 Opportunity 6 Stakeholders Perspective 6 Framing the correct problem 7 The vision of the company 7 Identification of the alternatives 8 Evaluation of the alternatives 9 Identification and assessment of risk 10 Internal and External Factors 10 Decision making 11 Framing and implementing the solution 12 Alliance 12 Internal Marketing 12 Evaluation of results 13 Conclusion 13 Introduction Increasing competition in today’s globalised economy has put the organization under the pressure of designing effective marketing strategy…
Author : grohan
Product Development and Pricing Strategies essay example
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