Classic Airlines Summary

Classic Airlines and Marketing

David Venegas

University of Phoenix

MKT/571

Professor Nick Metcalfe

November 8, 2010

Classic Airlines and Marketing

The following evaluation will be discussing some of the marketing concepts that were found in this week’s reading for Marketing 571. This paper will also be discussing how these marketing concepts can be related to the concepts of the scenario provided by the University of Phoenix. To begin with, the scenario is about Classic Airlines who is the worlds’ fifth largest airline and commands fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (week one supplement, University of Phoenix). Classic Airlines is dealing with many challenges that are affecting other airlines as well. What is more, the uncertainty of customers flying has affected their stock prices as well. This scenario and the readings provided by the University of Phoenix will demonstrate the impact marketing has with business decisions and business development.

Challenges to Overcome

It is imperative for Classic Airlines to overcome the challenges they face, because they have a concerned investment community monitoring every decision or strategy that Classic Airlines makes. Currently, Classic Airlines is struggling with customer loyalty and their Classic Rewards members. They have seen a decrease from their Classic Rewards members flying with them. With the rising costs of fuel and labor it has caused Classic Airlines to struggle with competing for their valued frequent flier customer (week one supplement, University of Phoenix). As a result, Classic Airlines board of directors have mandated a 15% cost reduction to take place over the next 18 months (week one supplement, University of Phoenix). These types of decisions can impact Classic Airlines and their future business transactions.

Marketing Strategy Plan

In addition, with regard to the scenario, a marketing strategy is needed for classic airlines....