Mkt 571 Classic Airlines

Running head: CLASSIC AIRLINES SCENARIO 1

Classic Airlines Scenario

Kevin Jackson

MKT 571

October 26th, 2010

Instructor: Eric Kingsbury

Classic Airlines Scenario

This paper will examine the Classic Airlines Scenario from provided University of Phoenix materials. In this scenario Classic Airlines, a medium sized airline with 32,000 employees (University of Phoenix, 2010), must decide on a new marketing strategy in an effort to increase revenues. This paper will look at some of the challenges facing Classic and some fundamental market concepts found within the scenario.

Products & Services Offered

This section will look at some of the products and services offered by Classic. A through understanding of the products and services of an organization will help to develop an effective marketing strategy.

Products

As an airline, Classic is primarily a service provider but there are some products offered as well. Food and beverage items are offered for an additional charge. Blankets, pillows and other “in flight” comforts are also available for purchase.

Services

Classic’s operating activities revolve around the service of consumer transportation. Organizations of this type typically operate with volatility and tighter contribution margins. If Classic is to remain competitive it will have to refine its operations and deliver this service with value and efficiency.

Marketing Challenges

This scenario, and this assignment, revolve around the challenges that Classic is facing. This portion of the paper will take a close look at some of the challenges Classic is currently encountering.

Price Sensitivity

The environment that Classic is operating in has become one characterized by a higher degree of price sensitivity. The demand to provide transportation services at a lower price has put pressure on Classic whose margins are already strained. Classic will have to improve...