Submitted by: Submitted by tiline19
Views: 222
Words: 2197
Pages: 9
Category: Business and Industry
Date Submitted: 03/05/2013 09:21 PM
Problem Solving Process to Classic Airlines
MKT/571
December 3rd, 2012
Dawn Obermoeller
Travelling is a need that one cannot bypass, whether it is by car, train, bus, plane or by just walking; it is a necessary method needed through our daily lives. Classic Airlines saw the need for transportation in the market and used the value creation and delivery sequences method, which places the marketing in the beginning of planning; thus enabling Classic Airline to become the fifth largest airline company earning $10 million on $8.7 billion in sales. Classic Airlines had all the component of an effective marketing plan; it provided over 375 planes to facilitate its customers’ travel plans; a service that is in high demand because there is always a need to travel, whether it is personal or business related. Classic Airlines serve around 240 cities with over 2,300 daily flights, therefore making it available at a multitude of places. Classic Airlines also uses promotions by offering and implementing a rewards program for its members; the program provides the customers with frequent flier mileages that they can later redeem and use on future flights. Although airlines fares vary depending on the time of the year and the demand for flights, Classic Airlines made sure to offer its product at a price that is competitive.
As with any company, Classic Airlines also faced its share of challenges, over the years customers’ uncertainty about flying have increased, causing Classic Airlines to see a decline in amount of flights, and in customer reservations; thus leading to a decrease in profit. As stated Classic Airlines’ senior vice president of customer service “I hear customers tell us what they want, but we don’t have the service, elements, operations procedures, or marketing programs in place to deliver” (Classic Airline Scenario). This goes to show that another reason behind the challenges that they are currently facing is the fact that they have lost touch with their...