Classic Airlines Marketing Solution

Classic Airlines and Marketing

Richard A. Cutting

University of Phoenix

MKT/571

Dr. Nnamdi Osakwe

April 14, 2011

Classic Airlines and Marketing

For this weeks’ discussion we are asked to discuss the marketing concepts which are found in our reading. We are also required to tell how these concepts relate to the context of our scenario. Marketers are trained to always be thinking of new ways to promote their brands even if what they are doing is working fine. With the existing economy, marketers are looking for new and creative ways to reach their customers while increasing returns. In the assigned scenario, Classic Airlines has been in business for 25 years and they have a fleet of over 375 jets that serve 240 cities.

While they have been successful over the years, they have been experiencing the challenges of airlines today. Classic Airlines has recently seen a 10% drop in their share prices. In 2005, Classic Airlines’ experienced two issues that caused challenges to their company. First they experienced a 19% decrease in their Classic Rewards members. Second they experienced a 21% decrease in flights for the remaining members. Classic Airlines’ leadership team implemented a 15% cost reduction across the board for the next 18 months. The Chief Executive Officer, Amanda Miller called a meeting with her leadership team to address the current issues and to strategize for the future.

The leadership team identified what their primary needs are. They identified that they need to lure back their frequent fliers, rise above the competition without discounting airfare, and to restore stock prices. Senior VP of Customer Service, Renee Epson and Chief Marketing Officer, Kevin Boyle understands the value of maintaining customer relationships. After all the importance of this service, customer relationship is the mission of the company. Since this is what will make the company the strongest within their industry?

Therefore, the leadership team plans to reconnect...