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Date Submitted: 10/01/2012 11:05 PM
Classic Airlines and Marketing
Monique McCoy
University of Phoenix
MKT/571 Marketing
Group: ON10BSB04B
Instructor: Dean Tripodes
September 14, 2012
Workshop 1
Classic Airlines and Marketing
Classic Airlines is the world’s fifth largest airline. Since the opening of Class Airlines 25 years ago, the company has grown substantially by employing 32,000 employees, and last year earning $10 million on $8.7 billion in sales. Although the company has been profitable it is also confronted with issues that the overall airline industry faces. Its stock share prices have decreased by 10% percent over the last year. Another main area that has shown the declining consumer confidence is their Rewards program. The program has had a 19 percent decrease in the number of members and a 21 percent decrease in flights per remaining member. Customer loyalty has also declined. The decline in sales has been worsened by the increasing cost of fuel and labor due to the downturn that followed the September 11th attack. To try to avoid bankruptcy and decrease the financial loss Classic Airlines mandated a 15% cost reduction company-wide over an 18 month period. In order for the company to move forward and be profitable an excellent marketing plan is very essential.
When it comes to marketing, an important first step in determining the reasons behind a company’s hard times involves knowledge of the internal and external contributing factors to its success. Therefore it is critical that Classic Airlines gains a clear understanding of its microenvironment and macro-environment. A company’s microenvironment includes that competition, the suppliers and the clientele. The macro-environment, on the other hand, is defined as “the collection of uncontrollable forces and conditions facing a person or a company, including demographic, economic, natural, technological, political, and cultural forces”.
Since the macro environmental factors cannot be manipulated,...