Classic Airlines

Classic Airlines and Marketing

Airline industry has suffered a major setback due to increased labor costs and increasing fuel prices. The Classic Airlines also has to reduce cost by 15% over next eighteen months (Scenario: Classic Airlines, 2007).   The airline has to cut down costs and at the same time increase customer and employee satisfaction. For long term forecasting and marketing plans the classic airlines needs to pay close attention to customer feedback.

Issue and Opportunity Identification

      The current marketing activities of Classic Airlines are controlled by many factors. Airline industry as a whole is recovering from 9/11 tragedy. Consumers have to cut back on their travel spending because of the high ticket prices (Plunkett Research, 2007). Although Classic Air lines has increased the passenger load ratio but profitability is affected by high fuel costs. Classic Airlines are not the only airlines with this problem they all are faced with similar issues. However, the Classic airline has an opportunity to identify and cut costs and they can show a positive return to their investors. Classic Airlines has seen a declining confidence with a 19% decrease in rewards to members and a 21% decrease in member flights.   The executive team of Classic Airline is concerned about decreasing numbers than the cause of these decreasing numbers. Marketing the Classic to the customers is the initial step that the executives will have to take. To develop a solid customer base the Classic Airlines needs to pay attention to the customer comments about the air line and make sure that their needs are met. With advanced CRM (CRM) system they can gain data from the phone, from web portals and form other information centers. “The CRM database will also help the company to customize the individual consumer’s experience” (Beal, 2007). Improved customer segmentation analysis could help in improving customer service and meet needs of consumers. The Classic Airlines will...