Marketing Plan for Classic Airlines

Marketing Plan for Classic Airlines

Classic Airlines is feeling the ripple effect of the economic downturn

throughout the global markets. When people say that recovery does not feel like a recovery, they

are describing reality (The New York Times, 2011). Classic Airlines earned 10 million on 8.7

billion dollars in sales (Classic Airlines, 2010). The company has been dealing with some

major challenges throughout the company. The following is a list of challenges that plague

Classic Airlines.

1. Uncertainty about flying has affected stock prices

2. Classic suffered a 10% drop in share prices

3. Employee morale is low within Classic

4. The airline industry itself has come under surveillance by the media, Wall Street, and the public.

5. Classic Rewards program had a 19% decrease in members and a 21% decrease in flights by the remaining members (Classic Airlines, 2010).

Classic Airlines is dealing with high labor and fuel costs that keeps the company in operation.

The board of directors at Classic has mandated a 15% cost reduction during the next 18 months

(Classic Airlines, 2010). To keep up with the airline industry some changes have to be made to

keep Classic Airlines in business.

Classic Airlines Culture

Classic Airlines have a few issues weighing down the company

and making passengers fly with other carriers, causing lost revenue, and employee morale hit an

low point. The customer satisfaction survey report showed that 56% of the

customers are unhappy with the current rewards programs. The program has made consumers

complain about the rewards program redemption option. In order for Classic Airlines to gain

back their loyal fliers the company must install adequate apps and make sure that training is

MARKETING PLAN FOR CLASSIC AIRLINES 3

on the CRM system. The objective for Classic is to increase its members loyalty, deliver quality

customer care, increase flight frequency to rewards customers, and improve customer relations

on how Classic Airlines is viewed in the public. The company new vision will encompass

providing directions and goals that will allow Classic Airlines to remain competitive in the

airline industry. Classic Airlines will implement a new intergraded customer support system and

a new marketing campaign that will cover the revised rewards program to lure back their loyal

customers. Research has proven that consumers prefer efficient low-fare airlines with an Internet

distribution system, fresh new service concepts and friendly employees (Avitas, 2004). Classic

Airlines must realize that consumers buy from experiences, friends, markets, and

competitors information and promises (Kotler & Keller, 2007).

Customer Segmentation for Classic Airlines

Classic Airlines segmented marketed consists of business and leisure

travelers. In order for Classic Airlines to expand into new geographic markets the company must

use the information provided