Classic Airlines Marketing

Marketing is a vital part for all companies that want to achieve their goals. Businesses with

successful with marketing make use of both unique, informal, and formal marketing tools and

plans. We are looking at a business, Classic Airlines, and its recent marketing plans and issues.

"Classic Airlines has been in business for one fourth of a century and is one of the largest airlines

in the world. Classic Airlines marketing group has been assigned to find a way to increase its

Rewards Program that increase profits on the financing. In addition to their obstacles, the

corporate heads of Classic Airlines are strict and do not believe in bending the rules. The owner

is not easily convinced by marketing strategies used to receive consumer interest relating to

pricing of products. In order for the marketing group to have a effective marketing plan, they

must be able to impress the board of directors, who is only interested in bottom line numbers

provided by research groups." (Classic Airline, 2011).

The objective of this procedure is to determine the internal and external issues contributing to

Classic Airlines problems, the marketing resources available to help resolve the issues, and the

objectives and obstacles of the marketing department. The problem with Classic Airlines is the

company has lost their ability to address customers demand. As a result, the company has

experienced a 10% decrease in share prices and customers have lost confidence in the company.

The pessimistic press about this decline has also caused employee morale to be at the lowest

level at possible. The board of director's has also incorporated a small fee reduction prompting

Classic Airlines to find a way to minimize the marketing budget and avoid bankruptcy. The CEO

does not agree with ways to attract the consumers' requests when it comes to pricing.

Administration has to create a leadership group that will develop a new way to examine on

consumer contentment rather than profit to keep recent consumers and retain new ones. Keeping

consumers happy that will develop happy coworkers that will confirm increased profits.

"Customer surveys revealed that the focus of Classic Airlines needs to be on the needs and

demands of the customer. These surveys show that 15% of the customers are not satisfied with

Classic's service, 56% are not satisfied with the reward redemption options, 68% would not

recommend the Classic Rewards Program to a friend or colleague, and 46% of their customers

switched to a competitor" (Classic Airlines, 2011)." The customer surveys will ask customers

to give their opinions and suggestions to what they want and need from Classic Airlines. The

changes that will be implemented will be based on the data collected from the surveys. This

will help with the implementation of programs designed to help employees increase morale.

"Goals are defined as objectives that are specific with respect to magnitude and time (Kotler &

Keller, 2006)." Classic Airlines must set new objectives for the business in order to address the

issues they are facing. These objectives will give Classic Airlines a vision and direction on

which path needs to be taken in order to achieve their objectives. The objectives that need to be

set are enhancing the market shares and sales, increase profits, increase consumer service, and

increase worker integrity.

Classic Airlines can increase employee morale by implementing training programs for

employees. The training programs will educate employees on improving customer service as

well as informative information on services the airlines will offer their customers. Employees

will become confident in their job and it will reflect on their service to the customers.

Fuel costs could be reduced 12% by locking in fuel prices through the Fuel-hedging program.

This will allow Classic Airlines to reach the cost reduction of 15% by contributing to this

program.

Classic Airlines must also develop a new mission statement directed to the needs and demands of

the customer. The new statement must be designed for internal and external customer

satisfaction and awareness. "It is imperative that customers can see that the company is

credible. Companies must design marketing communication and informative programs for

consumers to learn more about the brand than the information they get from service encounters

alone. The programs will involve marketing and communications that help the firm to develop

the proper brand personality (Kotler & Keller, 2007)."

The main objective of the company