Classic Airlines

Classic Airlines and Marketing

MRK/571

Classic Airlines and Marketing

Classic Airlines scenario from University of Phoenix (UOPX) material is the world’s fifth largest airline that service customers with more than 2300 daily flights to 240 cities (Classic Airlines Scenario UOPX, 2011). Several challenges are occurring creating marketing challenges for Classic Airlines. Though profitable, currently there is a rising cost in fuel and labor. The Classic Rewards program has not increased in the number of participants, and those participants of the program are not flying with Classic. The company’s share price has decreased and there have been a decrease in employee morale. Amanda Miller, the Chief Executive Officer, to offset the current challenges is implementing a 15% across the board cost reduction over the next 18 months. The final challenge the company is facing is the rumor that Classic may face bankruptcy. Upper management has met and key members have different views of what they believe is right for the company. These differences may create difficulties in changing key marketing concepts.

Three marketing concepts relate to Classic Airlines current dilemma. The first is the selling concept. The selling concept holds consumers to the business (Kotler & Keller, 2006). Classic Airlines has not changed the current rewards program, new membership is nonexistent and the current members are not using the service. The company as of the present time is currently offering a chance to join Tri-Star Alliance that would offer shared promotions, seamlessly integrated frequent flier program that includes sharing for all points and rewards and an extensive network of reward options (UOPX, 2011). The current Classic reward members would have more options like flights, hotel chains, car rental companies, and shopping services to choose from.

The second concept related to Classic Airlines is the marketing concept. Classic Airlines currently has a...