Classic Airlines and Marketing

Classic Airlines is currently the world’s fifth largest operating airline. There are more than 375 jets that serve 240 cities and more than 2300 daily scheduled flights. They have enjoyed tremendous success since their inception 25 years ago. The organization has grown to an impressive 32,000 employees. Their most recent accomplishment was last year when they earned $10 million on $8.7 billion in sales. Throughout all their success they are currently facing hard times due to declining revenue and attracting customers. Their rewards program has not been successful due to the decline in passengers flying. The decline in passenger activity can be attributed to increasing fuel and labor cost, which has caused prices to increase. The purpose of this paper is to identify marketing concepts from our reading, and how those concepts are key to helping with the Classic Airline scenario.

Rewards Program

In order for Classic Airlines to improve their current rewards program, they need to focus on customer relations. Value and satisfaction are two vital components in repairing customer relations. “The offering will be successful if it delivers value and satisfaction to the target buyer” (Kotler, Keller, 2006). They need to mass distribute surveys to new, old, potential, and current customers to see what the consumer values in an airline rewards program.

Marketing Research Program

A marketing research program will provide a plan to design, collect, analyze, and report data. “A market research program is beneficial for any company big or small because it measures the market potential and forecasts future demands for the product or service that is promoted” (Kotler, & Keller, 2006). This information will help recoup some of the loyal customers they have lost. In addition, using the information from the customer relationship management system will be helpful if it is used correctly. This will allow their marketing efforts to be focused on the core issues consumers have...