Classic Airline Marketing Solution
University of Phoenix
September 11, 2011
Problem Solution: Classic Airlines
Classic Airlines commands a fleet of more than 375 jets and serve 240 cities with more than 2300 daily flights and is the world’s fifth largest airline. (University of Phoenix). Today there is an uncertainty about flying. Combined with today’s market sharply rising and declining stock prices, it is becoming more difficult for Classic Airlines to sustain expenses and profitability. It has become increasingly challenging to maintain working capital at an acceptable level because of increasing fuel costs. Labor is increasing rapidly which is limiting their ability to provide a competitive frequent flier program. Classic Airlines with its 25 years of operation has grown to an organization of 32,000 employees and earned$10 million on $8.7 billion in sales. As a result of the September 11 terrorist attacks, the economy declined and Classic Airlines has suffered as well. Over the past few years, their share prices have decreased by 10% and they have declining employee morale because of all the negativity from Wall Street. They have seen customer loyalty decrease 19% in the Classic’s Rewards Program of active members and a decrease of 21% in the number of flights per remaining members.
There is an urgent need to turn around the present situation. One way they would like to do this is by using its’ CRM system more to their advantage. Classic Airlines would like to use CRM to identify the areas inside its current customer’s base that need immediate attention and focus their attention more on customers’ satisfaction. Amanda Miller, CEO is focused more in on reducing overall costs than how satisfied their customers are. The current focus is on the whole operation and how to reduce overall costs, but by doing this they are bypassing the customers’ wants and needs. Classic Airlines desperately needs to re-focus on its’ customer service...