Running head: CLASSIC AIRLINES AND MARKETING PAPER Classic Airlines Marketing Plan MKT 571/Marketing Classic Airlines is up against not just one challenge but several challenges they need to deal with. Unfortunately travel has decreased as a result of uncertainty with regards to flying; this has forced the stock prices to be reduce decreasing the price of a share of Classic Airlines stock by 10% over the previous year. The negative messages being conveyed by Wall Street and the media is bringing employee morale down to an all time low.
Consumer confidence in the airline has resulted in a 19% decrease in Classic flight reward members which in turn has decreased flights by loyal members by 21%. The rising cost of fuel and labor as a result of economic times is preventing Classic from competing to regain its lost customers. In an attempt to balance out their financial loses and cut down on any further financial crunches, the board of directors is mandating a 15% cost reduction but expects the marketing strategies to be beefed up to bring in more profitable return on investments of the frequent flyer program.
This plan is being put into action to prevent bankruptcies of the airlines. Classic Airlines needs a begin with their business mission then move on to a strategic plan. The strategic plan will layout, based on analysis, what areas of the airline market has the most promising opportunities. The next step is a tactical marketing plan that will help to point out promotions that could be featured and services they could offer to bring lost customers back as well as to draw new customers in.
Classic is in a position where they can’t decrease the price of flights because their flights are set within the standard pricing of the airline industry. However this is an area that is in need of revamping, that is the customer service area. There are many complaints about the treatment of Classic’s customers. There is room for improvement here. The company has the complaints on file and can use them to correct the issues, perhaps give some further customer service training to their employees; this would be at a minimal cost.
The company can offer some sort of value plan to their loyal customers that would perhaps offer them upgrades at a lower amount of frequent flyer miles. The company can target the business travelers and have flights at times that would work best for their work needs. There is also an opportunity to collaborate with other airlines offering the customer shared routes and pricing that can better service their needs. Finally Classic Airlines needs to look at its internal strengths and weaknesses.
They need to set up some support programs for their employees that can help the employee have a better understanding of the customer’s needs and how to assist them. There should be some sort of goals formulated that will drive the employee to move forward. It is also possible to give some sort of reward for a job well done, perhaps a small gift card as a token of appreciation. It is not necessary to spend a fortune to recognize a job well done and this will help with the employee moral issue and should lead to better customer service.
Creating a mission statement along with a marketing plan based on statistical research can open doors for Classic Airlines and can open doors to new and better way to market their business. Further research into the customers wants and needs can help to turn this company around with minimal cost. This will not only help control the company’s budget, it could also prevent further loss of jobs. If the plan is executed correctly it can help to gain back the lost customers. Reference: Kotler, P. , & Keller, K. (2006). Marketing Management, 12e. Upper Saddle River, N. J. : Pearson, Prentice Hall.