Mtk/571 Classic Airlines Marketing Solution

Classic Airlines marketing Solution

Student Name

MTK/571 Marketing

University Name

April 2011

Instructor Name

Classic Airlines Marketing Solution

Classic Airlines is the fifth largest airlines in the world. The company services 240 cities worldwide commanding 2,300 flights daily and has over 375 jets. Classic Airlines has increased the number of its employees to 32,000 over the past 25 years. Classic Airlines earned $10 million on $8.7 billion in sales last year. Competition and the need to gain customer satisfaction necessitated the creation of innovative products and marketing techniques such as frequent flyers and reward programs. Classis Airlines faces increasing challenges similar to all other airlines. Like all other airlines, the challenges range from rising fuel costs, economic turndown, customers’ increased ambiguity about flying, and scrutiny from all sectors including Wall Street, the public, and media. Despite the company’s efforts to reduce cost by employing price cuts, these challenges continue to affect the corporation’s profitability (University of Phoenix, 2011).

Furthermore, Classic Airlines’ corporate culture has become dysfunctional. The company stood stagnant while looking for ways to implement new strategies particularly when faced with challenges. To be successful and to meet the challenges, Classic Airlines will need to use the problem solving approach, which will entail employing the nine-step model. The company will need to use its internal resources and survey external marketing options to locate profitable solutions. This paper will utilize the nine-step approach to address Classic Airlines’ issues and defined the best ways to reach to desirable end state.

Step One: Describe the Situation

The first step in problem solving is to describe the issue. “Defining the right problem the right way is both the most difficult and the most critical step in problem solving” (University of Phoenix, 2010). The first step...