Classic Airlines Solution

RUNNING HEAD: Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

University of Phoenix

Alexander Boadi

MKT/571

Gina Owens-Ricks

April 15, 2010.

Abstract

This paper will explore the nine-step problem solving model to address the internal and external factors contributing to the challenges Classic Airlines is facing. The paper will outline the obstacles and objectives of Classic Airlines’ marketing department and recommend solutions respectively.

Classic airlines is facing a challenging situation in the flight industry with environmental issues at work increasing labor and fuel prices and creating a keen competition among other airlines to win and maintain customer base.

As the world’s fifth largest airline with over 32,000 employees, the company desires to increase employee and consumer confidence by cutting down on cost while maintaining employee and consumer satisfaction in the industry (University of Phoenix, 2009).

To do this, classic airlines must first identify and define the current internal and external challenges obstructing the company from reaching its goal. One internal challenge that haunts the company is not putting the customer relationship management system (CRM) to use, and focusing so much on internal issues of the company. Another internal issue is the decline in membership of classic reward programs. Some of the external challenges the company faces is the service similarity amongst the different carriers and not meeting the consumer’s needs.

Classic airlines need a nine-step problem solving model approach to help the company deal with the current challenging situation. The nine-step model approach begins with

Step 1; identify and define the problem – defining the problem first calls for an analysis of how the current process operates...