Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

MKT/571 Marketing

February 21, 2010

Classic Airlines Marketing Solution

Classic Airlines, one of the largest airlines in the country, “commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights” (University of Phoenix, Classic Airline Scenario, 2010, p1) and has gained 32,000 employees with earnings of $8.7 billion in sales. September 11, 2001 was the start of the economic crisis for the airlines, along with the rising costs of operations. Classic Airlines has internal and external factors, which also contribute to the airline’s crisis. Addressing the crisis, Classic Airlines should consider using a ten-step basic problem-solving method as well as seek suggestions from the airlines internal and external resources.

Define the Problem

The first step in the method is defining Classic Airlines problem by determining the purpose of the project. Classic Airline’s shares are declining even though the airlines still earn a profit. A problem found is Classic Airline’s reward program offered to customers has declined, which could be because the customers are traveling less because of the economic times or the customers are traveling on other airlines. The decline could also be linked to the lack of customer satisfaction. Employee morale is another contributing factor to the airlines problems. The morale has decreased because of the September 11, 2001 attacks, referred to as 9/11. The airlines are criticized for the lack of attention to security, and the criticizing has been the major contributor to decrease in morale. The airlines also had to increase security to improve passenger safety, which raised the operating cost in labor. Along with security the airlines are facing the rising costs of fuel, which add to the operating costs. Because the operating costs are rising, Classic Airlines had to cut the budget in all departments.

Intensity of the Problem

The second...