A Marketing Plan for Classic Airlines

This paper aims to analyze the problems that Classic Airlines is facing and to discuss alternative courses of action in providing a solution for Classic Airlines marketing dilemmas. Classic Airlines have been suffering with increase fuel prices, declining stock prices, labor prices, current corporate culture, and intense competition to gain and maintain a loyal customer base. By taking a holistic approach to problem-solving and solution development Classic Airlines is hoping to uncover numerous opportunities to rectify these issues.

Describe the situation

Classic Airlines is one of the largest airlines and commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 daily flights (University of Phoenix, Materials, 2010). Even though Classic Airlines is still profitable the increased of uncertainty about flying has affected the airline in different ways. The company’s board of directors recently mandated a 15% cost reduction over the next 18 months (University of Phoenix, Materials, 2010). Classic Airlines lack luster marketing, economic instability and consumer confidence are some of the reason for the cut backs.

Frame the right problem

Classic Airlines have several problems that need to be addressed.

After conducting a customer satisfaction survey it, was determined that 56% of customers are unhappy with the current rewards program redemption option (University of Phoenix, Materials, 2010). The company’s rewards program has suffered with a decreased around 19% among its members. The remaining members have been flying less frequently, which caused a 21% decline in flights from competitive pricing. Improving customer service and focusing on an improved marketing strategy will contribute to boosting consumers and employees satisfaction with Classic Airlines.

Describe end state and goals

The Customer Loyalty Report shows a 20% drop in Classic Rewards memberships. Classic Airlines has the potential to win back part of the...