Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

Introduction

Classic Airlines is the world’s fifth largest airline with more than 375 jets that serve 240 cities with more than 2,300 daily flights. Classic has grown to an organization of 32,000 employees, and earned $10 million on $8.7 billion in sales. Classic Airlines has been highly profitable but the increased uncertainty about flying has affected industry stock prices. The negativity from Wall Street, the media, and the public has affected employee morale. Classic has also seen a 10% decrease in share prices in the past year. People are hesitant to fly because of the events that took place on September 11, 2001 (University of Phoenix, 2011).

Classic’s declining Classic Rewards program measured a 19% decrease in the number of Classic Rewards members, and a 21% decrease in flights per remaining member (University of Phoenix, 2011). The airline’s rewards program is not bringing in enough revenue. Customers seem to be flying less frequently with Classic Airlines. Rising costs, particularly of fuel and labor, have limited Classic‘s ability to compete for the valued frequent flier (University of Phoenix, 2011). Classic Airlines needs to analyze the current situation and find a solution to increase revenue. Classic Airlines needs to use a problem-solving technique and review the marketing technique to find a solution.

Analysis

To solve the airlines marketing problem they must identify the problem, define the problem, and apply a robust problem-solving process. The five-step problem solving approach can be used to help Classic Airlines. The five-step problem-solving process is identifying the problem, analyzing the problem, identifying decision criteria, developing multiple solutions, and choosing the optimal solution (Pedro, 2006).

Identifying the problem

The first step to the problem-solving approach is identifying the problem. To identify the problem, Classic must try to solve the right problem and identify the...