Classic Airline Marketing Solution


Classic Airline’s Marketing Solution
Karen Anderson
University of Phoenix

This presentation sets out to explore a 7-step problem solving model used to analyze and resolve an underlying problem within the Classic Airline scenario. The goal of this process is to effectively determine the internal and external pressures contributing to Classic’s current crisis, the objectives and obstacles of the marketing department, and the marketing resources available to resolve this crisis. The following problem solving model used for the Classic Airline scenario is based on a method from “Problem Solving in Engineering” (2010). The first step of the model describes the situation; Step 2, Identifies the problem; Step 3, Sets goals; Step 4, Identifies alternatives and risks; Step 5, Make a decision; Step 6, Develops and implements the solution; and Step 7, will evaluate the results to determine if the set goals were actually achieved.

Classic Airlines’ Marketing Solution
Describe the Situation
    Classic Airlines is presented to be one of the world’s largest airlines with more than 375 jets and over 2,300 daily flights.   It is considered to be a very profitable organization that employs about 32,000 employees. Since the events of September 11, 2001, the travel industry as a whole has sustained great financial losses. Worldwide economic conditions also contributed to organizations being hit with budget challenges and companywide cutbacks, which also explains consumer spending habits. Many vacationers are planning trips on reduced budgets. Most are saving money by staying closer to home.
    Classic’s Customer Loyalty Report shows that membership in the rewards program is down 20 percent from the previous year. This percentage breaks down to a loss of 160,000 loyal customers who are now flying airlines other than Classic.   With the average number of flights per member being down by more than 20...