Classic Airlines Week 1 Review

Classic Airlines

Robert Mathis

University of Phoenix

Marketing

MKT 571

Michael Wilson

July 09, 2012

Classic Airlines

Classic Airlines has exhibited some extreme difficulty in maintaining customer loyalty. Restricted by a number of factors, the team has been asked to improve the company’s financial situation through their approach to marketing. As a service industry, Classic has experienced declining demand (Kotler & Keller, 2006) that the team has attributed to a failure to understand consumer needs by listening to their demands. There have been some proposals regarding an integrated approach both web and phone customers through the CRM system. The idea would be a renewed focus on the consumer as an individual in order to regain loyalty and build-up the frequent-flyer customer base. Additionally, an alliance between Classic and Skyway Airlines could establish a broader niche in the air travel market.

Understanding the consumer market (Kotler & Keller, 2006) will be vital to recovering Classic’s position. Noting that Classic is one of the only major airlines to not have participated in some form of partnership is indicative of the current corporate culture’s belief in branded independence and superiority. A review of the fiscal information for the company, however, indicates that this belief is unfounded and potentially detrimental the company’s future. Although use of the changing technology (Kotler & Keller, 2006) represented by the CRM platform may be helpful in connecting with the consumer base, the competitive factors exhibited by all major airlines and the avoidance of further price cuts will call for greater creativity in revitalizing the business. The core elements that must be addressed can be categorized by the idea of customer empowerment (Kotler & Keller, 2006, p. 14). After numerous interviews with those members of the rewards program, the fact that consumer interests must be observed has been well established.

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