Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

University of Phoenix

MKT/571

Introduction

Serving 240 cities with 375 airplanes, having more than 32,000 employees since inception 25 years ago has made Classic Airline (CA) the fifth largest airline carrier in the world. Although the company is making a profit, in the last year it has encountered several challenges; economic downturn, declining memberships, employee morale, stock prices, rewards program, fuel costs, customer loyalty, and cost reductions. Plunkett states, the commercial airline industry always have been susceptible to economic and political changes, mostly in times of economic crisis (Plunkett, 2009); therefore Classic Airlines challenges are not unexpected. Last year, the company had a net income of $10 million dollars on $8.7 billion in operating revenue (Classic Airline Scenario, 2010). That is over a $60 million dollar net income decrease in one year, CA shares decreased by 10% in 2009 alone.

CA must implement a nine-step problem-solving model to achieve recommended marketing solution, evaluate all alternatives, identify risks, and select the best solution that achieves the desired end result. The problem-solving model includes the following steps:

1) Describe the situation: the reality of the situation.

2) Frame the “right” problem: a problem statement that you are in fact solving the correct problem enabling several different probable solutions.

3) Describe the End-state goals: a picture of what the end goal will look like.

4) Identify Alternatives: one or more solutions that may work.

5) Evaluate Alternatives (solution): pros and cons of each solution with the achievement of reaching the end goal.

6) Identify and assess risks: identify possible risks of each solution.

7) Make the decision: making a decision after evaluating solutions and assessing the risks of each solution.

8) Develop and implement the solution: a plan to implement the solution decided on....