Classic Airlines

Classic Airlines Marketing Solutions

Brandi Parkmond

December 2, 2010

Michael Mancini

Classic Airlines Marketing Solutions

On September 15, 2001, just four days after the tragic events on September 11th, Continental Airlines announces it will cut 12,000 jobs (Ward, 2002). Many airlines following suit, decide to use the catastrophe of September 11th as a means to accelerate the restructuring of their companies. Classic Airlines 25 years in operation, the firm employs 32,000 employees, commands a fleet of 375 jets, and earns $8.7 billion in sales. The past few years prove to be challenging because of a shrinking Rewards program, low consumer confidence and employee morale, and rising fuel costs. The company knows the importance all team members working toward reconnecting with their number one focus-the customer. The Classic Rewards Program is in need of an overhaul if the firm intends to thrive among the competition. By using the Nine-Step Model for problem-solving, I will be able to provide remedies for Classic’s Marketing Program for success.

Step One: Describe the Situation

Classic Airlines is experiencing a sharp decline in customer loyalty to their company. Renee Epson, Senior Vice President of Customer Service acknowledges that Classic fails to meet the needs of the customer. According to the Customer Relationship Management (CRM) surveys, customers are telling the company what they want, but Classic Airlines cannot provide the service elements or operational procedures to handle the requests (University of Phoenix, 2005, Week One Supplement). Since January 2005, the Classic Rewards Program measures a 19% decrease in members and a 21% decrease in flights for reward members. The marketing department struggles to find an innovative means toward regaining loyal customers while working with a smaller budget than the year before.

Step Two: Framing the Right Problem

Classic Airlines enters a crossroads as they decide how to revamp the...